6/22/2017
`
`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
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`United States - English
`
`Edwards Lifesciences Reports Fourth Quarter Results
`
`IRVINE, Calif., Feb. 1, 2017 -- Edwards Lifesciences Corporation (NYSE: EW), the global leader in patient-focused innovations for
`structural heart disease and critical care monitoring, today reported ᡃnancial results for the quarter ended December 31, 2016. 
`
`Fourth Quarter and Recent Highlights:
`
`•
`Sales grew 14 percent to $768 million; underlying sales were up 15 percent
`1
`Important safety information
`Global Transcatheter Heart Valve Therapy (THVT) sales grew 29 percent to $432 million
`•
`
`http://www.edwards.com/ns20170201
`
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`6/22/2017
`U.S. THVT sales were up 38 percent
`EPS was $0.73, an increase of 14 percent; adjusted EPS grew 17 percent to $0.75
`2
`FDA approved groundbreaking EARLY-TAVR Trial
`
`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`
`• •
`
`•
`
`"We are pleased to report strong fourth quarter results, which contributed to another successful year for Edwards, as we strengthened
`our ᡃnancial performance and product leadership positions," said Michael A. Mussallem, chairman and CEO.  "We ended the quarter
`with underlying sales growth of 15 percent, driven by strong adoption of transcatheter aortic valve replacement (TAVR) therapy, and
`ᡃnished the year with global sales of nearly $3 billion.   And, I'm proud to report we invested aggressively in 2016 to bring innovative
`medical technologies to more patients and drive future growth."
`
`Fourth Quarter 2016 Results          
`
`Sales for the quarter ended December 31, 2016 were $767.7 million, up 14.4 percent.  U.S. and international segment sales for the
`fourth quarter were $421.5 million and $346.2 million, respectively. On an underlying basis, sales grew 15.0 percent over the fourth
`quarter last year. Net income for the quarter ended December 31, 2016 was $158.5 million, or $0.73 per share, or $0.75 per share on
`an adjusted basis. 
`
`For the fourth quarter, the company reported Transcatheter Heart Valve Therapy (THVT) sales of $432.0 million, a 29.2 percent growth
`rate over the fourth quarter last year, or 31.8 percent on an underlying basis. Growth was led by continued strong therapy adoption
`across all geographies, with notable strength in the U.S. and Japan.
`
`In the U.S., THVT sales for the quarter were $267.2 million, a 37.8 percent growth rate over the fourth quarter last year, or 41.1 percent
`on an underlying basis.  "Once again, overall performance was strong, with procedures growing broadly across more than 500
`hospitals, in both large and small TAVR programs," said Mussallem.
`
`Surgical Heart Valve Therapy sales for the quarter were $189.4 million. Reported sales decreased 3.5 percent compared to the fourth
`quarter last year, driven by lower aortic valve sales, primarily due to the impact of SAPIEN 3 and continued constrained mitral supply. 
`The company expects the introduction of its next generation platforms to lift underlying sales growth to 1 to 3 percent in 2017.
`
`Critical Care sales were $146.3 million for the quarter, representing an increase of 4.1 percent versus last year, or 2.5 percent on an
`underlying basis.  Growth was driven by its Enhanced Surgical Recovery Program in the U.S. and developing markets.
`
`For the quarter, the company's gross proᡃt margin was 72.2 percent, compared to 73.8 percent in the same period last year. This
`expected decrease was driven by a reduced year-over-year beneᡃt from foreign exchange hedge contracts and manufacturing
`expenses associated with capacity expansion.  The company expects its gross proᡃt margin, excluding special items, to strengthen in
`2017 to between 74 and 76 percent.
`
`Selling, general and administrative expenses increased to $233.6 million for the quarter, or 30.4 percent of sales. This increase was
`driven by sales and personnel related expenses, primarily in transcatheter heart valves.
`
`Research and development investments for the quarter increased to $114.9 million, compared to $98.2 million in the prior year
`period.  This increase was primarily the result of continued investments in transcatheter aortic and mitral valve programs.
`
`Cash ᬄow from operating activities for the quarter was $201.1 million.  After capital spending of $63.2 million, free cash ᬄow was
`$137.9 million.
`
`Cash, cash equivalents and short-term investments totaled $1.3 billion at December 31, 2016.  Total debt was $0.8 billion.
`
`During the fourth quarter, the company repurchased approximately 2.7 million shares for $246 million largely to o摠set dilution
`associated with its Valtech Cardio, Ltd. acquisition, which closed on January 23.  Average diluted shares outstanding during the quarter
`were 218 million.
`
`Important safety information
`Twelve-Month Results
`
`http://www.edwards.com/ns20170201
`
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`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`6/22/2017
`For the twelve months ended December 31, 2016, compared to the prior year:
`
`Sales grew 19 percent to $2.96 billion
`U.S. and international segment sales were $1.6 billion and $1.3 billion, respectively
`EPS was $2.61, an increase of 16 percent; adjusted EPS grew 24.6 percent to $2.89
`Repurchased 7.3 million shares of common stock for $662 million
`
`• • • •
`
`EARLY-TAVR Clinical Trial
`
`The U.S. Food and Drug Administration has approved an IDE study of the Edwards SAPIEN 3 valve evaluating patients diagnosed with
`severe aortic stenosis who have not yet developed symptoms.  Approximately 1,000 patients will be enrolled in 65 leading
`cardiovascular centers in the new EARLY-TAVR Trial, a superiority study with a two-year composite endpoint. Patients will be
`randomized to receive either transfemoral TAVR with the SAPIEN 3 valve or clinical surveillance.
`
`Outlook
`
`For the full year 2017, the company continues to expect sales to be between $3.0 and $3.4 billion and adjusted earnings per share to
`be between $3.30 and $3.45.
`
`For the ᡃrst quarter of 2017, the company projects sales to be between $760 and $800 million, and adjusted earnings per share to be
`between $0.79 and $0.89.
`
`"We were very pleased to achieve strong ᡃnancial performance and signiᡃcant progress on transformational new therapies across our
`businesses in 2016, and expect continued growth and progress in 2017," said Mussallem.  "We are enthusiastic about the continued
`expansion of transcatheter-based therapies for the many structural heart patients still in need, which positions us for long-term
`success.  We believe our patient-focused innovation strategy can transform care and bring value to both healthcare systems and
`shareholders."
`
`About Edwards Lifesciences        
`
`Edwards Lifesciences, based in Irvine, Calif., is the global leader in patient-focused medical innovations for structural heart disease, as
`well as critical care and surgical monitoring. Driven by a passion to help patients, the company collaborates with the world's leading
`clinicians and researchers to address unmet healthcare needs, working to improve patient outcomes and enhance lives. For more
`information, visit www.Edwards.com (http://www.edwards.com/) and follow us on Twitter @EdwardsLifesci.
`
`Conference Call and Webcast Information          
`
`Edwards Lifesciences will be hosting a conference call today at 2:00 p.m. PT to discuss its fourth quarter results.  To participate in the
`conference call, dial (877) 407-8037 or (201) 689-8037.  For 72 hours following the call, an audio replay can be accessed by dialing
`(877) 660-6853 or (201) 612-7415 and using conference number 13652092.  The call will also be available via live or archived
`webcast on the "Investor Relations" section of the Edwards web site at ir.edwards.com or www.edwards.com
`(http://www.edwards.com). A live stream and archived replay can also be accessed via mobile devices by downloading Edwards' IR App
`for iPhone and iPad or Android.
`
`This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section
`21E of the Securities Exchange Act of 1934.  These forward-looking statements can sometimes be identiᡃed by the use of words such
`as "may," "will," "should," "anticipate," "believe," "plan," "project," "estimate," "expect," "intend," "guidance," "outlook,"
`"optimistic," "aspire," "conᡃdent"  or other forms of these words or similar expressions and include, but are not limited to,
`statements made by Mr. Mussallem, 2017 and ᡃrst quarter ᡃnancial guidance, and information in the Outlook section.  Forward-
`looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable,
`though they are inherently uncertain and di᠄cult to predict.  Our forward-looking statements speak only as of the date on which they
`are made and we do not undertake any obligation to update any forward-looking statement to reᬄect events or circumstances after
`the date of the statement.  If the company does update or correct one or more of these statements, investors and others should not
`Important safety information
`conclude that the company will make additional updates or corrections.
`
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`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
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`Forward-looking statements involve risks and uncertainties that could cause actual results or experience to di摠er materially from that
`expressed or implied by the forward-looking statements.  Factors that could cause actual results or experience to di摠er materially from
`that expressed or implied by the forward-looking statements include uncertainties associated with the e摠ectiveness and timing of new
`product launches, competitive dynamics and rate of therapy adoption, particularly for THVT; the timing and scope of regulatory
`approvals and reimbursement levels for our products; the company's success in developing new products and avoiding manufacturing
`and quality issues; the impact of currency exchange rates and related hedge contracts; the timing or results of pending or future
`clinical trials and research and development e摠orts; actions by the U.S. Food and Drug Administration and other regulatory agencies;
`unexpected litigation results or expenses; and other risks detailed in the company's ᡃlings with the Securities and Exchange
`Commission, including its Annual Report on Form 10-K for the year ended December 31, 2015. These ᡃlings, along with important
`safety information about our products, may be found at edwards.com.
`
`Edwards, Edwards Lifesciences, the stylized E logo, Edwards SAPIEN, Edwards SAPIEN 3, Enhanced Surgical Recovery Program, SAPIEN
`and SAPIEN 3 are trademarks of Edwards Lifesciences Corporation. All other trademarks are the property of their respective owners.
`
`[1]
`
`"Underlying" amounts are non-GAAP items and in this press release exclude foreign exchange ᬄuctuations, and sales return
`reserves associated with THVT product upgrades. See the Non-GAAP Financial Information page and reconciliation tables below.
`
`[2]
`
`Adjusted earnings per share is a non-GAAP item computed on a diluted basis and excludes amortization of intellectual property,
`gains and losses from signiᡃcant investments, impairments, litigation, and business development transactions.
`
` 
`
`EDWARDS LIFESCIENCES CORPORATION
`
`Unaudited Consolidated Statements of Operations
`
`(in millions, except per share data)
`
`Three Months Ended Twelve Months Ended
`
`December 31,
`December 31,
`
`2016
`
`2015
`
`2016
`
`2015
`
`$ 767.7
`
`$ 671.1
`
`$2,963.7 $2,493.7
`
`213.2
`
`175.9
`
`797.4
`
`617.2
`
`Net sales
`
`Cost of sales
`
`Gross proᡃt
`
`554.5
`
`495.2
`
`2,166.3
`
`1,876.5
`
`Selling, general, and administrative expenses
`
`233.6
`
`222.3
`
`904.7
`
`850.7
`
`Research and development expenses
`
`114.9
`
`98.2
`
`443.3
`
`383.1
`
`Intellectual property litigation expenses
`
`4.8
`
`3.3
`
`32.6
`
`7.0
`
`Important safety information
`
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`
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`6/22/2017
`Special charges
`
`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`—
`—
`34.5
`—
`
`Interest expense, net
`
`1.5
`
`2.6
`
`Other (income) expense, net
`
`(0.7)
`
`1.8
`
`8.4
`
`4.9
`
`9.3
`
`4.0
`
`Income before provision for income taxes
`
`200.4
`
`167.0
`
`737.9
`
`622.4
`
`Provision for income taxes
`
`41.9
`
`26.3
`
`168.4
`
`127.5
`
`Net income
`
`$ 158.5
`
`$ 140.7
`
`$569.5
`
`$494.9
`
`Earnings per share:
`
`Basic
`
`Diluted
`
`Weighted-average common shares outstanding:
`
`Basic
`
`Diluted
`
`Operating statistics
`
`As a percentage of net sales:
`
`$ 0.74
`
`$ 0.65
`
`$2.67
`
`$2.30
`
`$ 0.73
`
`$ 0.64
`
`$2.61
`
`$2.25
`
`213.7
`
`215.8
`
`213.0
`
`215.5
`
`217.9
`
`220.6
`
`217.8
`
`220.3
`
`Gross proᡃt
`
`72.2
`
`% 73.8
`
`% 73.1
`
`%75.2
`
`Selling, general, and administrative expenses
`
`30.4
`
`% 33.1
`
`% 30.5
`
`%34.1
`
`Research and development expenses
`
`15.0
`
`% 14.6
`
`% 15.0
`
`%15.4
`
`Income before provision for income taxes
`
`26.1
`
`% 24.9 % 24.9
`
`%25.0
`
`Net income
`
`20.6
`
`% 21.0
`
`% 19.2
`
`%19.8
`
`%
`
`%
`
`%
`
`%
`
`%
`
`E摠ective tax rate
`
`20.9
`
`% 15.7
`
`% 22.8
`
`%20.5
`
`%
`
`Important safety information
`
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`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`6/22/2017
`Note: Numbers may not calculate due to rounding.
`
` 
`
`EDWARDS LIFESCIENCES CORPORATION
`
`Unaudited Balance Sheets
`
`(in millions)
`
`December 31,
`
`2016
`
`2015
`
`ASSETS
`
`Current assets
`
`Cash and cash equivalents
`
`$930.1 $718.4
`
`Short-term investments
`
`341.0
`
`506.3
`
`Accounts and other receivables, net
`
`414.6
`
`371.8
`
`Inventories, net
`
`396.6
`
`339.9
`
`Prepaid expenses
`
`45.9
`
`45.1
`
`Other current assets
`
`111.8
`
`66.4
`
`Total current assets
`
`2,240.0 2,047.9
`
`Long-term investments
`
`532.1
`
`379.9
`
`Property, plant, and equipment, net
`
`580.0
`
`482.5
`
`Goodwill
`
`626.1
`
`628.3
`
`Other intangible assets, net
`
`204.8
`
`205.4
`
`Deferred income taxes
`
`203.8
`
`180.5
`
`Other assets
`Important safety information
`
`123.2
`
`131.8
`
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`6/22/2017
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`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`
`Total assets
`
`$4,510.0 $4,056.3
`
`LIABILITIES AND STOCKHOLDERS' EQUITY
`
`Current liabilities
`
`Accounts payable and accrued liabilities
`
`$532.5 $476.2
`
`Long-term debt
`
`822.3
`
`596.9
`
`Other long-term liabilities
`
`536.2
`
`480.1
`
`Stockholders' equity
`
`Common stock
`
`242.6
`
`239.1
`
`Additional paid-in capital
`
`1,167.8 946.8
`
`Retained earnings
`
`3,906.3 3,336.8
`
`Accumulated other comprehensive loss
`
`(198.4)
`
`(182.6)
`
`Treasury stock, at cost
`
`(2,499.3)(1,837.0)
`
`Total stockholders' equity
`
`2,619.0 2,503.1
`
`Total liabilities and stockholders' equity
`
`$4,510.0 $4,056.3
`
` 
`
`EDWARDS LIFESCIENCES CORPORATION
`Non-GAAP Financial Information
`
`To supplement the consolidated ᡃnancial results prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), the
`Company uses non-GAAP historical ᡃnancial measures.  Management makes adjustments to the GAAP measures for items (both
`charges and gains) that (a) do not reᬄect the core operational activities of the Company, (b) are commonly adjusted within the
`Company's industry, to enhance comparability of the Company's ᡃnancial results with those of its peer group, or (c) are inconsistent in
`amount or frequency between periods (albeit such items are monitored and controlled with equal diligence relative to core
`operations).  The Company uses the term "underlying" when referring to non-GAAP sales information, which excludes foreign
`exchange ᬄuctuations, adjustments for discontinued and acquired products, and sales return reserves associated with transcatheter
`heart valve therapy ("THVT") product upgrades; and "adjusted" to also exclude intellectual property litigation expenses, amortization
`of intellectual property, gains and losses from signiᡃcant investments, impairments, litigation, and business development
`transactions.  Fluctuations in exchange rates impact the comparative results and sales growth rates of the Company's underlying
`Important safety information
`
`http://www.edwards.com/ns20170201
`
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`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
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`business. Management believes that excluding the impact of foreign exchange rate ᬄuctuations from its sales growth provides
`investors a more meaningful comparison to historical ᡃnancial results. The impact of foreign exchange rate ᬄuctuations has been
`detailed in the "Reconciliation of Sales by Product Group and Region."
`
`Guidance for sales and sales growth rates is provided on an "underlying basis," and projections for diluted earnings per share, net
`income and growth, gross proᡃt margin, taxes, and free cash ᬄow are also provided on a non-GAAP basis as adjusted for the items
`identiᡃed below due to the inherent di᠄culty in forecasting such items.  The Company is not able to provide a reconciliation of the
`non-GAAP guidance to comparable GAAP measures due to the unknown e摠ect, timing, and potential signiᡃcance of special charges or
`gains, and management's inability to forecast charges associated with future transactions and initiatives.
`
`Management considers free cash ᬄow to be a liquidity measure which provides useful information to management and investors about
`the amount of cash generated by business operations, after deducting payments for capital expenditures, which can then be used for
`strategic opportunities or other business purposes including, among others, investing in the Company's business, making strategic
`acquisitions, strengthening the balance sheet, and repurchasing stock.
`
`Management uses non-GAAP ᡃnancial measures internally for strategic decision making, forecasting future results, and evaluating
`current performance.  These non-GAAP ᡃnancial measures are used in addition to and in conjunction with results presented in
`accordance with GAAP and reᬄect an additional way of viewing aspects of the Company's operations by investors that, when viewed
`with its GAAP results, provide a more complete understanding of factors and trends a摠ecting the Company's business and facilitate
`comparability to historical periods.
`
`Non-GAAP ᡃnancial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to
`other companies and should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures
`calculated in accordance with GAAP.  A reconciliation of non-GAAP historical ᡃnancial measures to the most comparable GAAP
`measure is provided in the tables below.
`
`The items described below are adjustments to the GAAP ᡃnancial results in the reconciliations that follow:
`
`THVT Sales Return Reserve and Related Costs - In the ᡃrst quarter of 2016, the Company recorded a $1.7 million reversal of the
`sales return reserve ($1.5 million, net of related costs) upon delivery of the next-generation THVT products in the United States.   In
`addition, in the ᡃrst quarter of 2016, the Company recorded inventory reserves of $1.6 million related to estimated excess THVT
`inventory expected upon introduction of next-generation THVT products in Japan.  In the second quarter of 2015, the Company
`recorded a net sales return reserve and related costs, primarily related to inventory reserves, of $15.9 million related to estimated
`THVT product returns expected upon introduction of next-generation THVT products.  The Company recorded a net reversal of these
`reserves in the third and fourth quarters of 2015 of $2.4 million and $4.4 million, respectively, upon delivery of next-generation THVT
`products.
`
`Intellectual Property Litigation Expenses - The Company incurred intellectual property litigation expenses of $12.2 million and $0.3
`million in the ᡃrst quarter of 2016 and 2015, respectively, $9.1 million and $1.0 million in the second quarter of 2016 and 2015,
`respectively, $6.5 million and $2.4 million in the third quarter of 2016 and 2015, respectively, and $4.8 million and $3.3 million in the
`fourth quarter of 2016 and 2015, respectively.
`
`Amortization of Intellectual Property - The Company recorded amortization expense of $1.7 million and $1.8 million in the ᡃrst
`quarter of 2016 and 2015, respectively, $1.9 million and $1.7 million in the second quarter of 2016 and 2015, respectively, $2.0 million
`and $1.8 million in the third quarter of 2016 and 2015, respectively, and $1.9 million and $1.8 million in the fourth quarter of 2016 and
`2015, respectively, related to intellectual property.
`
`Purchased In-process Research and Development ("IPR&D") - The Company recorded a $34.5 million charge in the second quarter
`of 2016 related to the acquisition of technology for use in its transcatheter heart valve programs.
`
`EDWARDS LIFESCIENCES CORPORATION
`
`Unaudited Reconciliation of GAAP to Non-GAAP Financial Information
`Important safety information
`
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`
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`6/22/2017
`(in millions, except per share data)
`
`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`
`RECONCILIATION OF GAAP TO ADJUSTED NET INCOME
`
`Three Months Ended Twelve Months Ended
`
`December 31,
`December 31,
`
`2016
`
`2015
`
`2016
`
`2015
`
`$ 158.5
`
`$ 140.7 $ 569.5
`
`$ 494.9
`
`12.7
`
`%
`
`15.1
`
`%
`
`—
`
`4.8
`
`1.9
`
`—
`
`(4.4)
`
`0.1
`
`3.3
`
`1.8
`
`—
`
`32.6
`
`7.5
`
`34.5
`
`9.1
`
`7.0
`
`7.1
`
`—
`
`GAAP Net Income
`
`Growth Rate %
`
`Non-GAAP adjustments:
`
`(A)
`
`THVT sales return reserve and related costs
`
`Intellectual property litigation expenses
`
`Amortization of intellectual property
`
`Purchased IPR&D
`
`Provision for income taxes
`
`Tax e摠ect on reconciling items
`(B)
`
`(3.6)
`
`(0.7)
`
`(17.9)
`
`(8.0)
`
`On-going tax impact of second quarter 2016 purchased IPR&D2.0
`
`—
`
`3.7
`
`—
`
`Adjusted Net Income
`
`$ 163.6
`
`$ 140.7 $ 630.0
`
`$ 510.1
`
`Growth Rate %
`
`16.3
`
`%
`
`23.5
`
`%
`
`RECONCILIATION OF GAAP TO ADJUSTED DILUTED EARNINGS PER SHARE
`
`GAAP Diluted Earnings Per Share
`
`$ 0.73
`
`$ 0.64
`
`$ 2.61
`
`$ 2.25
`
`Growth Rate %
`
`14.1
`
`%
`
`16.0
`
`%
`
`Non-GAAP adjustments:
`(A), (C)
`
`Important safety information
`
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`

`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`6/22/2017
`THVT sales return reserve and related costs
`—
`(0.02) —
`0.03
`
`Intellectual property litigation expenses
`
`0.01
`
`0.01
`
`0.10
`
`0.02
`
`Amortization of intellectual property
`
`Purchased IPR&D
`
`—
`
`—
`
`0.01
`
`0.02
`
`0.02
`
`—
`
`0.14
`
`—
`
`Provision for income taxes
`
`On-going tax impact of second quarter 2016 purchased IPR&D0.01
`
`—
`
`0.02
`
`—
`
`Adjusted Diluted Earnings Per Share
`
`$ 0.75
`
`$ 0.64
`
`$ 2.89
`
`$ 2.32
`
`Growth Rate %
`
`17.2
`
`%
`
`24.6
`
`%
`
`Note: Numbers may not calculate due to rounding.
`
`(A)
`
`See description of non-GAAP adjustments on the "Non-GAAP Financial Information" page.
`
`(B)
`
`The tax e摠ect on non-GAAP adjustments is calculated based upon the impact of the relevant tax jurisdictions' statutory tax rates on
`the Company's estimated annual e摠ective tax rate, or discrete rate in the quarter, as applicable.
`
`(C)
`
`All amounts are tax e摠ected, calculated based upon the impact of the relevant tax jurisdictions' statutory tax rates on the
`Company's estimated annual e摠ective tax rate, or discrete rate in the quarter, as applicable.
`
` 
`
`EDWARDS LIFESCIENCES CORPORATION
`
`Unaudited Reconciliation of GAAP to Non-GAAP Financial Information
`
`($ in millions)
`
`THVT UNITED STATES UNDERLYING SALES GROWTH
`
`Three Months Ended
`December 31,
`
`Important safety information
`
`http://www.edwards.com/ns20170201
`
`10/15
`
`Page 10 of 15
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`6/22/2017
`
`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`2016
`2015
`
`THVT United States GAAP Sales
`
`$ 267.2
`
`$ 193.9
`
`Adjustment for THVT sales return reserve
`
`—
`
`(4.5)
`
`THVT United States Underlying Sales
`
`$ 267.2
`
`$ 189.4
`
`Underlying Growth Rate %
`
`41.1
`
`%
`
`THVT OUTSIDE THE UNITED STATES UNDERLYING SALES GROWTH
`
`Three Months Ended
`December 31,
`
`(in millions)
`
`2016
`
`2015
`
`GAAP THVT Outside the United States Sales
`
`$ 164.8
`
`$ 140.4
`
`Foreign exchange impact
`
`—
`
`(2.0)
`
`THVT Outside the United States Underlying Sales$ 164.8
`
`$ 138.4
`
`Underlying Growth Rate %
`
`19.1
`
`%
`
` 
`
`EDWARDS LIFESCIENCES CORPORATION
`
`Unaudited Reconciliation of GAAP to Non-GAAP Financial Information
`
`($ in millions)
`
`RECONCILIATION OF SALES BY PRODUCT GROUP AND REGION
`
`2016 Adjusted
`
`2015 Adjusted
`
`Sales by Product Group (QTD)4Q 2016 4Q 2015 Change
`
`GAAP
`Growth
` Rate*
`
`4Q 2016
`Sales Return
`Sales Return
`Underlying
`Reserve
`Reserve
`Sales
`
`FX Impact
`
`4Q 2015
`Underlying
`
`Underlying Growth
`Sales
`Rate *
`
`Transcatheter Heart Valve
`$432.0 $334.3 $97.7 29.2 % $ —
`Therapy
`Important safety information
`
`$ 432.0
`
`$ (4.5)
`
`$ (2.0)
`
`$ 327.8
`
`31.8 %
`
`http://www.edwards.com/ns20170201
`
`11/15
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`Page 11 of 15
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`

`6/22/2017
`Surgical Heart Valve Therapy 189.4
`
`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`196.2
`(6.8)
`(3.5) % —
`189.4
`—
`
`0.6
`
`196.8
`
`(3.8) %
`
`Critical Care
`
`146.3
`
`140.6
`
`5.7
`
`4.1 % —
`
`146.3
`
`—
`
`2.2
`
`142.8
`
`2.5
`
`%
`
`Total
`
`$767.7 $671.1 $96.6 14.4 % $ —
`
`$ 767.7
`
`$ (4.5)
`
`$ 0.8
`
`$ 667.4
`
`15.0 %
`
`2016 Adjusted
`
`2015 Adjusted
`
`Sales by Product Group (YTD)
`
`YTD 
`4Q 2016
`
`YTD 
`4Q 2015
`
`Change
`
`GAAP
`Growth
` Rate*
`
`YTD 4Q
`
`Sales Return 2016
`Sales Return
`Reserve
`
`Underlying Reserve
`Sales
`
`FX Impact
`
`YTD 4Q
`Underlying
`2015
`Growth
`Underlying
` Rate *
`Sales
`
`Transcatheter Heart Valve
`Therapy
`
`$1,628.5 $1,180.3 $448.2 38.0 % $ (1.7)
`
`$ 1,626.8
`
`$ 1.7
`
`$ (2.5)
`
`$ 1,179.5
`
`37.9 %
`
`Surgical Heart Valve Therapy 774.9
`
`785.0
`
`(10.1)
`
`(1.3) % —
`
`774.9
`
`Critical Care
`
`560.3
`
`528.4
`
`31.9
`
`6.0 % —
`
`560.3
`
`—
`
`—
`
`2.2
`
`5.0
`
`787.2
`
`(1.6) %
`
`533.4
`
`5.0
`
`%
`
`Total
`
`$2,963.7$2,493.7$470.0 18.8 % $ (1.7)
`
`$ 2,962.0 $ 1.7
`
`$ 4.7
`
`$ 2,500.1
`
`18.5 %
`
`Sales by Region (QTD)
`
`4Q 2016 4Q 2015 Change
`
`2016 Adjusted
`
`2015 Adjusted
`
`4Q 2016
`GAAP
`Sales Return
`Sales Return
`Growth 
`Underlying
`FX Impact
`Reserve
`Reserve
`Rate*
`Sales
`
`4Q 2015
`Underlying
`
`Underlying Growth
`Sales
` Rate *
`
`United States
`
`$421.5 $353.6 $67.9 19.2 % $ —
`
`$ 421.5
`
`$ (4.5)
`
`$ —
`
`$ 349.1
`
`20.7 %
`
`Europe
`
`Japan
`
`184.6
`
`183.7
`
`0.9
`
`0.5 % —
`
`184.6
`
`83.0
`
`65.5
`
`17.5
`
`26.6 % —
`
`Rest of World
`
`78.6
`
`68.3
`
`10.3
`
`15.0 % —
`
`International
`
`346.2
`
`317.5
`
`28.7
`
`9.0 % —
`
`346.2
`
`83.0
`
`78.6
`
`—
`
`—
`
`—
`
`—
`
`(8.5)
`
`175.2
`
`5.4
`
`%
`
`6.8
`
`2.5
`
`0.8
`
`72.3
`
`14.8 %
`
`70.8
`
`11.0
`
`%
`
`318.3
`
`8.8
`
`%
`
`Total
`
`$767.7 $671.1 $96.6 14.4 % $ —
`
`$ 767.7
`
`$ (4.5)
`
`$ 0.8
`
`$ 667.4
`
`15.0 %
`
`2016 Adjusted
`
`2015 Adjusted
`
`Sales by Region (YTD)
`
`YTD 
`4Q 2016
`
`YTD 
`4Q 2015
`
`Change
`
`Important safety information
`
`YTD 4Q
`GAAP
`
`Sales Return 2016
`Sales Return
`Growth 
`FX Impact
`Reserve
`
`Underlying Reserve
`Rate*
`Sales
`
`YTD 4Q
`Underlying
`2015
`Growth
`Underlying
` Rate *
`Sales
`
`http://www.edwards.com/ns20170201
`
`12/15
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`Page 12 of 15
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`

`6/22/2017
`United States
`
`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
`$1,615.7 $1,262.9$352.8 27.9 % $ (1.7)
`$ 1,614.0
`$ 1.7
`
`$ —
`
`$ 1,264.6 27.6 %
`
`Europe
`
`Japan
`
`749.0
`
`717.3
`
`31.7
`
`4.4 % —
`
`749.0
`
`309.3
`
`246.2
`
`63.1
`
`25.6 % —
`
`309.3
`
`Rest of World
`
`289.7
`
`267.3
`
`22.4
`
`8.4 % —
`
`289.7
`
`—
`
`—
`
`—
`
`(16.3)
`
`701.0
`
`6.8
`
`%
`
`27.6
`
`273.8
`
`13.0 %
`
`(6.6)
`
`260.7
`
`11.1
`
`%
`
`%
`
`International
`
`1,348.0 1,230.8 117.2 9.5 % —
`
`1,348.0 —
`
`4.7
`
`1,235.5
`
`9.1
`
`Total
`
`$2,963.7$2,493.7$470.0 18.8 % $ (1.7)
`
`$ 2,962.0 $ 1.7
`
`$ 4.7
`
`$ 2,500.1
`
`18.5 %
`
`* Numbers may not calculate due to rounding.
`
` 
`
`  #
`
` # #
`
`Contact Information :
`Media, Sarah Huoh, +1-949-250-5070, or
`Investors, David K. Erickson, +1-949-250-6826, both of Edwards Lifesciences Corporation
`
`Important safety information
`
`Caution: Federal (United States) law restricts this device to sale by or on the order of a physician. See instructions for use for
`full prescribing information, including indications, contraindications, warnings, precautions and adverse events.
`
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`All rights reserved.
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`Important safety information
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`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
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`http://www.edwards.com/ns20170201
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`6/22/2017
`
`Edwards Lifesciences Reports Fourth Quarter Results | Edwards Lifesciences
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`http://www.edwards.com/ns20170201
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`15/15
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