<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of Earliest Event Reported)--December 19, 1997
-----------
GUIDANT CORPORATION
(Exact name of registrant as specified in its charter)
INDIANA 1-13388 35-1931722
---------
(State or other jurisdiction of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
111 Monument Circle, 29th Floor 46204
Indianapolis, Indiana (Zip Code)
(Address of principal executive offices)
(317)971-2000
(Registrant's telephone number, including area code)
-----------
NOT APPLICABLE
(Former name or address, if changed since last report)
================================================================================
<PAGE>
Item 2. Acquisition or Disposition of Assets.
On December 19, 1997, pursuant to an Agreement and Plan of Merger, dated as
of October 5, 1997, amended as of November 14, 1997 (the "Merger Agreement"), by
and among Guidant Corporation, an Indiana corporation (the "Company"), Ski
Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of the
Company ("Merger Sub"), and EndoVascular Technologies, Inc., a Delaware
corporation ("EVT"), the Company acquired all outstanding shares of common stock
of EVT through the merger (the "Merger") of Merger Sub with and into EVT, which
thereby became a wholly-owned subsidiary of the Company.
EVT stockholders approved the Merger at a special meeting of stockholders
held on December 19, 1997. Under the terms of the Merger Agreement, EVT
stockholders received 0.3154 of a share of the Common Stock, without par value,
of the Company for each share of Common Stock, par value $.00001, of EVT held by
them. Based upon the 8,552,845 shares of Common Stock of EVT outstanding on
November 14, 1997, the record date for stockholders entitled to vote on the
Merger at the special meeting of stockholders of EVT, the Company will issue
approximately 2,697,567 shares of its Common Stock to the stockholders of EVT in
the Merger, representing approximately 1.8% of the Company's Common Stock
outstanding following consummation of the Merger. The aggregate consideration
for the outstanding shares of Common Stock of EVT, which was determined based
upon arms'-length negotiation between the Company and EVT, was approximately
$151,738,144, based upon a closing price of $56.25 for the Common Stock of the
Company on December 18, 1997, the date preceding the effective date of the
Merger. The acquisition will be accounted for as a pooling of interests. Prior
to the Merger, no material relationship existed between EVT and the Company, or
any of its affiliates, any director or officer of the Company or any associate
of any such director or officer, except as set forth in the immediately
succeeding paragraph.
In February 1997, EVT and Guidant entered into a credit agreement (the
"Credit Agreement") which is a $30 million credit facility. Borrowings under
the Credit Agreement bear interest at 16.5% to 19%. Interest accruing during
the first thirty months in which loans are outstanding is payable in full thirty
months after the date the first loan is made. Interest accruing thereafter is
due quarterly. Principal payments are due in full on March 31, 2002. Balances
owed under the Credit Agreement may be prepaid subject to a prepayment fee,
which is initially set at 5% of the prepayment amount and is reduced on each
anniversary date of the Credit Agreement by 1%. Further, all principal
outstanding will be due upon the occurrence of certain asset sales and issuances
of equity securities, and will be due at Guidant's discretion upon a change in
control of EVT. Consummation of the Merger constitutes such a change of control.
Among other requirements, the Credit Agreement prohibits EVT from paying
dividends and incurring additional indebtedness. On September 16, 1997, EVT
borrowed $7 million pursuant to the Credit Agreement, which amount is
outstanding as of the date hereof.
EVT designs, develops and manufactures minimally invasive endovascular
repair systems to repair diseased or damaged vascular structures. The Company
intends to continue such business.
2
<PAGE>
Item 5. Other Events.
Attached as Exhibit 99.2 are Guidant Corporation's quarterly
Consolidated Statements of Income restated for the acquisition of EndoVascular
Technologies, Inc. for the three months ended September 30, 1997 and 1996, June
30, 1997 and 1996, March 31, 1997 and 1996, for the nine months ended September
30, 1997 and 1996, for the three months ended December 31, 1996, and for the
year ended December 31, 1996 and Consolidated Balance Sheets as of September 30,
1997 and December 31, 1996.
Item 7. Financial Statements and Exhibits.
(a) The consolidated, audited balance sheets of EVT as of December 31,
1996 and 1995, and statements of income and cash flows for each of the years
ended December 31, 1996, 1995 and 1994, were filed with EVT's Annual Report on
Form 10-K for the fiscal year ended December 31, 1996, and are hereby
incorporated herein by reference. In addition, an interim balance sheet as of
September 30, 1997 and interim statements of income and cash flows for the nine
months ended September 30, 1997 and 1996, were filed with EVT's Quarterly report
on Form 10-Q for the quarter ended September 30, 1997, and are hereby
incorporated herein by reference.
(b) Exhibits.
2.1 Agreement and Plan of Merger dated as of October 5, 1997,
amended as of November 14, 1997, by and among Guidant
Corporation, Ski Acquisition Corp. and EndoVascular
Technologies, Inc.*
2.2 Support Agreement.*
23.1 Consent of Arthur Andersen LLP
99.1 Press Release of Guidant Corporation, dated December 19, 1997.
99.2 Restated Financial Statements
-----------
* Incorporated by reference to the Company's Registration Statement on
Amendment No. 3 on Form S-4 to Form S-3, Registration No. 333-06363.
3
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
Guidant Corporation has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
GUIDANT CORPORATION
By: /s/ Keith E. Brauer
-------------------------
Keith E. Brauer
Vice President, Finance and
Chief Financial Officer
Date: December 23, 1997
4
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
2.1 Agreement and Plan of Merger dated as of October 5, 1997,
amended as of November 14, 1997, by and among Guidant
Corporation, Ski Acquisition Corp. and EndoVascular
Technologies, Inc.*
2.2 Support Agreement.*
23.1 Consent of Arthur Andersen LLP
99.1 Press Release of Guidant Corporation,
dated December 19, 1997.
99.2 Restated Financial Statements
- ------------
* Incorporated by reference to the Company's Registration Statement on
Amendment No. 3 on Form S-4 to Form S-3, Registration No. 333-06363.
5
<PAGE>
Exhibit 23.1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this Form 8-K dated December 30, 1997, of our report dated March
27, 1997, included in Endovascular Technologies, Inc.'s Form 10-K for the year
ended December 31, 1996, and to all references to our Firm included in this Form
8-K. It should be noted that we have not audited any financial statements of the
company subsequent to December 31, 1996, or performed any audit procedures
subsequent to the date of our report.
ARTHUR ANDERSEN LLP
San Jose, California
December 29, 1997
<PAGE>
EXHIBIT 99.1
GUIDANT
PRESS RELEASE
DATE: December 19,1997
GDT CONTACTS: Todd McKinney, Investor Relations, 317-971-2094
Rob Allen, Media Relations, 317-971-2031
Ronda Prothro, Media Relations, 408-235-3420
EVT CONTACTS: Becky Broussard, Investor Relations Manager, 650-325-1600
GUIDANT ACQUISITION OF ENDOVASCULAR TECHNOLOGIES, INC. COMPLETED
Indianapolis, IN--December 19, 1997 - Guidant Corporation (NYSE and PCX: GDT)
today announced that shareholders of EndoVascular Technologies, Inc. (EVT) have
voted their approval of the acquisition of EVT by Guidant. "We are confident
that the growth opportunity for Guidant represented by the treatment of
abdominal aortic aneurysms (AAA's) using EVT's outstanding technology is quite
substantial", commented Jim Cornelius, Chairman of Guidant's Board of Directors.
"We believe that less invasive approaches to AAA repair will have a significant
impact upon current physician practice and patient outcomes, and may also
represent a substantial future market potential for Guidant. We look forward in
1998 to further development and commercialization of EVT's proprietary
endovascular devices."
In accordance with the terms of the merger agreement, shareholders of EVT will
receive .3154 shares of Guidant Common Stock for each share of EVT Common Stock.
Approximately 2.7 million shares of Guidant common stock were issued in
connection with the EVT acquisition. The transaction will be accounted for as a
pooling of interests. Therefore, the financial statement for prior periods will
be restated to include EVT's prior results. Keith Brauer, Guidant's Chief
Financial Officer, said that there would be a special charge amounting to
approximately $0.05 per share in the fourth quarter related to the EVT
transaction, including the usual investment banking, legal and integration
charges.
Over the last 18 months, Guidant has redirected its Minimally Invasive Systems
organization toward applications in cardiac and vascular surgery, resulting in a
number of new product initiatives, including the successful VasoView/TM/ system
for endoscopic vessel harvesting. "To more accurately reflect our stategic
direction and product development activities in this area, we have renamed our
Minimally Invasive Systems (MIS) Group the Cardiac & Vascular Surgery (CVS)
Group," said Ron Dollens, Guidant's President and Chief Executive Officer. "Jim
Fitzsimmons, EVT's current CEO, has been named a Senior Vice President and the
General Manager of the new CVS Group. Jim's responsibilities will include both
the EVT and Origin operations and he will report to Jay Watkins, President of
the CVS Group."
A global leader in the medical device industry, Guidant provides innovative,
minimally invasive and cost-effective products and services for the treatment of
cardiovascular and vascular disease. For more information about Guidant's
products and services, visit the company's Web site at http://www.guidant. com.
GUIDANT CORPORATION
P.O. BOX 44906 INDIANAPOLIS, IN 46244 TEL: 317 971 2000 FAX: 317 971 2040
<PAGE>
EXHIBIT 99.2
GUIDANT CORPORATION
QUARTERLY INCOME STATEMENTS RETROACTIVELY RESTATED FOR ENDOVASCULAR
TECHNOLOGIES, INC. (EVT) ACQUISITION
1997
<TABLE>
<CAPTION>
REPORTED RESULTS
---------------------------------------------------------------
Guidant Corporation - 1997
---------------------------------------------------------------
Nine Months Ended
September 30, 1997 Third Second First
--------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Cardiac Rhythm Management $ 486.3 $ 172.9 $ 164.4 $ 149.0
Vascular Intervention 297.7 95.8 101.1 100.8
Minimally Invasive Systems 45.8 14.6 15.5 15.7
------- ------- ------- -------
Total net sales 829.8 283.3 281.0 265.5
Cost of sales 207.7 69.5 72.2 66.0
------- ------- ------- -------
Gross profit 622.1 213.8 208.8 199.5
Purchased research & development 57.4 - 57.4 -
Research & development 129.9 45.2 42.4 42.3
Sales, marketing & administrative 265.4 92.0 89.2 84.2
------- ------- ------- -------
Income from operations 169.4 76.6 19.8 73.0
Other income (expenses), net (17.0) (6.4) (5.6) (5.0)
------- ------- ------- -------
Income before income taxes 152.4 70.2 14.2 68.0
Income taxes 53.8 23.8 5.2 24.8
------- ------- ------- -------
Net income $ 98.6 $ 46.4 $ 9.0 $ 43.2
=============================================================
Earnings per share $ 0.68 $ 0.32 $ 0.06 $ 0.30
Wtd. Ave. Shares 144.52 144.63 144.59 144.34
Cash Dividend Declared $0.0375 $0.0125 $0.0125 $0.0125
<CAPTION>
EVT - 1997
---------------------------------------------------------
Nine Months Ended
September 30, 1997 Third Second First
------------------ ----------- ----------- -----------
<S> <C> <C> <C> <C>
Cardiac Rhythm Management - - - -
Vascular Intervention - - - -
Minimally Invasive Systems $ 2.6 $ 0.9 $ 0.8 $ 0.9
------- ------- ------- -------
Total net sales 2.6 0.9 0.8 0.9
Cost of sales 2.4 0.8 0.8 0.8
------- ------- ------- -------
Gross profit 0.2 0.1 - 0.1
Research & development 12.3 5.0 3.6 3.7
Sales, marketing & administrative 3.7 1.3 1.2 1.2
------- ------- ------- -------
Income from operations (15.8) (6.2) (4.8) (4.8)
Other income, net 0.4 0.1 0.1 0.2
------- ------- ------- -------
Net loss $ (15.4) $ (6.1) $ (4.7) $ (4.6)
=============================================================
Wtd. Ave. Shares 2.68 2.69 2.68 2.66
<CAPTION>
1997 Combined
---------------------------------------------------------------
Nine Months Ended
September 30, 1997 Third Second First
------------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Cardiac Rhythm Management $ 486.3 $ 172.9 $ 164.4 $ 149.0
Vascular Intervention 297.7 95.8 101.1 100.8
Minimally Invasive Systems 48.4 15.5 16.3 16.6
------- ------- ------- -------
Total net sales 832.4 284.2 281.8 266.4
Cost of sales 210.1 70.3 73.0 66.8
------- ------- ------- -------
Gross profit 622.3 213.9 208.8 199.6
Purchased research & development 57.4 - 57.4 -
Research & development 142.2 50.2 46.0 46.0
Sales, marketing & administrative 269.1 93.3 90.4 85.4
------- ------- ------- -------
Income from operations 153.6 70.4 15.0 68.2
Other income (expenses), net (16.6) (6.3) (5.5) (4.8)
------- ------- ------- -------
Income before income taxes 137.0 64.1 9.5 63.4
Income taxes 53.8 23.8 5.2 24.8
------- ------- ------- -------
Net income $ 83.2 $ 40.3 $ 4.3 $ 38.6
==================================================================
Earnings per share $ 0.57 $ 0.27 $ 0.03 $ 0.26
Wtd. Ave. Shares 147.20 147.32 147.27 147.01
Cash Dividend Declared $0.0375 $0.0125 $0.0125 $0.0125
<CAPTION>
Special Charges*
--------------------------------------------------------------
Nine Months Ended
September 30, 1997 Third Second First
------------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
Cardiac Rhythm Management - - - -
Vascular Intervention - - - -
Minimally Invasive Systems - - - -
----- ---------- ----- ----------
Total net sales - - - -
Cost of sales - - - -
----- ---------- ----- ----------
Gross profit - - - -
Purchased research & development (57.4) - (57.4) -
Research & development - - - -
Sales, marketing & administrative - - - -
----- ---------- ----- ----------
Income from operations 57.4 - 57.4 -
Other income (expenses), net - - - -
----- ---------- ----- ----------
Income before income taxes 57.4 - 57.4 -
Income taxes 20.3 (0.7) 21.0 -
----- ---------- ----- ----------
Net income $ 37.1 $ 0.7 $ 36.4 $ -
===============================================================
<CAPTION>
1997 COMBINED AS ADJUSTED FOR SPECIAL CHARGES
----------------------------------------------------------------
Nine Months Ended
September 30, 1997 Third Second First
------------------ ------------ -------------- ------------
<S> <C> <C> <C> <C>
Cardiac Rhythm Management $ 486.3 $ 172.9 $ 164.4 $ 149.0
Vascular Intervention 297.7 95.8 101.1 100.8
Minimally Invasive Systems 48.4 15.5 16.3 16.6
------- ------- ------- -------
Total net sales 832.4 284.2 281.8 266.4
Cost of sales 210.1 70.3 73.0 66.8
------- ------- ------- -------
Gross profit 622.3 213.9 208.8 199.6
Research & development 142.2 50.2 46.0 46.0
Sales, marketing & administrative 269.1 93.3 90.4 85.4
------- ------- ------- -------
Income from operations 211.0 70.4 72.4 68.2
Other income (expenses), net (16.6) (6.3) (5.5) (4.8)
------- ------- ------- -------
Income before income taxes 194.4 64.1 66.9 63.4
Income taxes 74.1 23.1 26.2 24.8
------- ------- ------- -------
Net income $ 120.3 $ 41.0 $ 40.7 $ 38.6
==================================================================
Earnings per share $ 0.82 $ 0.28 $ 0.28 $ 0.26
Wtd. Ave. Shares 147.20 147.32 147.27 147.01
Cash Dividend Declared $0.0375 $0.0125 $0.0125 $0.0125
</TABLE>
* Special charges represent the impact of purchased research and development.
<PAGE>
GUIDANT CORPORATION
QUARTERLY INCOME STATEMENTS RETROACTIVELY RESTATED FOR ENDOVASCULAR
TECHNOLOGIES, INC. (EVT) ACQUISITION
1996
<TABLE>
<CAPTION>
REPORTED RESULTS
--------------------------------------------------------------------------------
GUIDANT CORPORATION - 1996
--------------------------------------------------------------------------------
Total 1996 Fourth Third Second First
-------------- --------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Cardiac Rhythm Management $574.6 $151.9 $144.7 $144.2 $133.8
Vascular Intervention 425.6 104.9 104.7 109.1 106.9
Minimally Invasive Systems 48.3 14.0 10.7 12.2 11.4
-------- ------- ------- ------- -------
Total net sales 1,048.5 270.8 260.1 265.5 252.1
Cost of sales 314.5 68.4 69.1 100.0 77.0
-------- ------- ------- ------- -------
Gross profit 734.0 202.4 191.0 165.5 175.1
Research & development 152.5 41.9 37.6 37.0 36.0
Sales, marketing & administrative 326.0 87.6 78.7 82.4 77.3
-------- ------- ------- ------- -------
Income from operations 255.5 72.9 74.7 46.1 61.8
Other income (expenses), net (39.1) (5.0) (6.8) (12.6) (14.7)
Impaired asset charge (66.9) - - (66.9) -
-------- ------- ------- ------- -------
Income (loss) before income taxes 149.5 67.9 67.9 (33.4) 47.1
Income taxes 83.7 25.6 26.7 12.8 18.6
-------- ------- ------- ------- -------
Net income (loss) $65.8 $42.3 $41.2 $(46.2) $28.5
==============================================================================
Earnings per share $0.46 $ 0.29 $ 0.29 -$0.32 $ 0.20
Wtd. Ave. Shares 144.17 144.33 144.26 144.10 143.98
Cash Dividend Declared $0.0500 $0.0125 $0.0125 $0.0125 $0.0125
<CAPTION>
EVT - 1996
--------------------------------------------------------------------------------
Total 1996 Fourth Third Second First
-------------- --------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Cardiac Rhythm Management - - - - -
Vascular Intervention - - - - -
Minimally Invasive Systems $1.2 $0.6 $0.3 $0.2 $0.1
------ ---- ---- ---- ----
Total net sales 1.2 0.6 0.3 0.2 0.1
Cost of sales 1.4 0.6 0.4 0.3 0.1
------ ---- ---- ---- ----
Gross profit (0.2) (0.0) (0.1) (0.1) -
Research & development 12.1 3.6 3.2 2.8 2.5
Sales, marketing & administrative 2.4 0.8 0.5 0.7 0.4
------ ---- ---- ---- ----
Loss from operations (14.7) (4.4) (3.8) (3.6) (2.9)
Other income, net 1.2 0.3 0.3 0.4 0.2
Net loss $(13.5) $(4.1) $(3.5) $(3.2) $(2.7)
===============================================================================
Wtd. Ave. Shares 2.58 2.60 2.64 2.67 2.42
<CAPTION>
1996 - COMBINED
---------------------------------------------------------------------------------
Total 1996 Fourth Third Second First
---------------- -------------- -------------- --------------- --------------
<S> <S> <C> <C> <C> <C>
Cardiac Rhythm Management $574.6 $151.9 $144.7 $144.2 $133.8
Vascular Intervention 425.6 104.9 104.7 109.1 106.9
Minimally Invasive Systems 49.5 14.6 11.0 12.4 11.5
-------- ------- ------- ------- -------
Total net sales 1,049.7 271.4 260.4 265.7 252.2
Cost of sales 315.9 69.0 69.5 100.3 77.1
-------- ------- ------- ------- -------
Gross profit 733.8 202.4 190.9 165.4 175.1
Research & development 164.6 45.5 40.8 39.8 38.5
Sales, marketing & administrative 328.4 88.4 79.2 83.1 77.7
-------- ------- ------- ------- -------
Income from operations 240.8 68.5 70.9 42.5 58.9
Other income (expenses), net (37.9) (4.7) (6.5) (12.2) (14.5)
Impaired asset charge (66.9) - - (66.9) -
-------- ------- ------- ------- -------
Income (loss) before income taxes 136.0 63.8 64.4 (36.6) 44.4
Income taxes 83.7 25.6 26.7 12.8 18.6
-------- ------- ------- ------- -------
Net income (loss) $52.3 $38.2 $37.7 $(49.4) $25.8
==================================================================================
Earnings per share $0.36 $ 0.26 $ 0.26 -$0.34 $ 0.18
Wtd. Ave. Shares 146.75 146.93 146.90 146.77 146.40
Cash Dividend Declared $0.0500 $0.0125 $0.0125 $0.0125 $0.0125
</TABLE>
<TABLE>
<CAPTION>
SPECIAL CHARGES*
------------------------------------------------------------------------------------
Total 1996 Fourth Third Second First
------------- ------ ----- ------- -----
<S> <C> <C> <C> <C>
Cardiac Rhythm Management - - - -
Vascular Intervention - - - -
Minimally Invasive Systems - - - -
------ ------ ----- -----
Total net sales - - - -
Cost of sales (28.8) - - (28.8)
------ ------ ----- -----
Gross profit 28.8 - - 28.8
Research & development - - - -
Sales, marketing & administrative - - - -
------ ------ ----- -----
Income from operations 28.8 - - 28.8
Other income (expenses), net - - - -
Impaired asset charge (66.9) - - (66.9)
------ ------ ----- -----
Income before income taxes 95.7 - - 95.7
Income taxes 11.6 - - 11.6
------ ------ ----- -----
Net income $84.1 - - $84.1
==============================================================================
Earnings per share
Wtd. Ave. Shares
Cash Dividend Declared
</TABLE>
<TABLE>
<CAPTION>
1996 COMBINED AS ADJUSTED FOR SPECIAL CHARGES
---------------------------------------------------------------------------------
Total 1996 Fourth Third Second First
---------------- ------- ------- ------- -------
<S> <C> <C> <C> <C>
Cardiac Rhythm Management $574.6 $151.9 $144.7 $144.2 $133.8
Vascular Intervention 425.6 104.9 104.7 109.1 106.9
Minimally Invasive Systems 49.5 14.6 11.0 12.4 11.5
-------- ------- ------- ------- -------
Total net sales 1,049.7 271.4 260.4 265.7 252.2
Cost of sales 287.1 69.0 69.5 71.5 77.1
-------- ------- ------- ------- -------
Gross profit 762.6 202.4 190.9 194.2 175.1
Research & development 164.6 45.5 40.8 39.8 38.5
Sales, marketing & administrative 328.4 88.4 79.2 83.1 77.7
-------- ------- ------- ------- -------
Income from operations 269.6 68.5 70.9 71.3 58.9
Other income (expenses), net (37.9) (4.7) (6.5) (12.2) (14.5)
-------- ------- ------- ------- -------
Income before income taxes 231.7 63.8 64.4 59.1 44.4
Income taxes 95.3 25.6 26.7 24.4 18.6
-------- ------- ------- ------- -------
Net income $136.4 $38.2 $37.7 $34.7 $25.8
====================================================================================
Earnings per share $ 0.93 $ 0.26 $ 0.26 $ 0.24 $ 0.18
Wtd. Ave. Shares 146.75 146.93 146.90 146.77 146.40
Cash Dividend Declared $ 0.0500 $0.0125 $0.0125 $0.0125 $0.0125
</TABLE>
* Represent the impact of impairment and special obsolescence charges.
<PAGE>
GUIDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1997
(Dollars in millions)
<TABLE>
<CAPTION>
As Previously Reported
Guidant EVT COMBINED
---------------------- ---- --------
<S> <C> <C> <C>
Assets
Current Assets
Cash and cash equivalent.................... $5.8 $9.6 $15.4
Accounts receivable, net of allowances
of $7.5 (GDT) and $0.2 (EVT)............. 258.6 1.2 259.8
Other receivables........................... 10.4 0.6 11.0
Inventories................................. 116.6 0.3 116.9
Deferred income taxes....................... 59.3 -- 59.3
Prepaid expenses........................... 23.4 0.5 23.9
-------- ----- --------
Total Current Assets................... 474.1 12.2 486.3
Other Assets
Goodwill, net of allowances
of $91.7 (GDT) .......................... 184.3 -- 184.3
Other intangible assets, net of allowances
of $10.9 (GDT) .......................... 7.1 -- 7.1
Investments................................. 56.8 -- 56.8
Sundry...................................... 26.4 0.1 19.5
Deferred income taxes....................... 10.8 -- 10.8
-------- ----- -------
285.4 0.1 278.5
Property and equipment, net................. 332.0 2.8 334.8
-------- ----- --------
$1,091.5 $15.1 $1,099.6
======== ===== ========
</TABLE>
See notes to consolidated financial statements
<PAGE>
GUIDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1997
(Dollars in millions)
<TABLE>
<CAPTION>
As Previously Reported
Guidant EVT COMBINED
----------------------- ------ ---------
<S> <C> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable................................ $41.9 $0.9 $42.8
Employee compensation........................... 56.9 -- 56.9
Restructuring liabilities....................... 6.1 -- 6.1
Income taxes payable............................ 3.0 -- 3.0
Other liabilities............................... 91.2 2.8 94.0
Short-term borrowings........................... 159.6 -- 159.6
------- ----- -------
Total Current Liabilities.................. 358.7 3.7 362.4
Noncurrent Liabilities
Long-term debt.................................. 187.5 7.0 187.5
Other........................................... 11.6 -- 11.6
Commitments and contingencies................... -- -- --
Shareholders' Equity
Common stock-no par value:
Authorized shares: 250,000,000
Issued and outstanding shares: 147,304,000.. 192.5 -- 192.5
Additional paid-in capital...................... 157.9 57.3 215.2
Retained earnings............................... 255.1 (52.9) 202.2
Cumulative currency translation adjustments..... (29.1) -- (29.1)
Deferred cost, ESOP............................. (46.3) -- (46.3)
Unrealized gain on investments, net............. 10.7 -- 10.7
Treasury stock, at cost:
Shares: 106,542 (1997).................... (7.1) -- (7.1)
-------- ----- --------
533.7 4.4 538.1
-------- ----- --------
$1,091.5 $15.1 $1,099.6
======== ===== ========
</TABLE>
<PAGE>
GUIDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1996
(Dollars in millions)
<TABLE>
<CAPTION>
As Previously Reported
Guidant EVT COMBINED
---------------------- ---- --------
<S> <C> <C> <C>
Assets
Current Assets
Cash and cash equivalent.................... $1.5 $17.9 $19.4
Accounts receivable, net of allowances
of $7.3 (GDT) and $0.1 (EVT)............. 212.4 0.5 212.9
Other receivables........................... 17.5 0.3 17.8
Inventories................................. 102.8 -- 102.8
Deferred income taxes....................... 62.1 -- 62.1
Prepaid expenses............................ 22.6 0.3 22.9
-------- ----- --------
Total Current Assets................... 418.9 19.0 437.9
Other Assets
Goodwill, net of allowances
of $82.1 (GDT) .......................... 197.3 -- 197.3
Other intangible assets, net of allowances
of $8.8 (GDT) ........................... 9.1 -- 9.1
Investments................................. 41.3 -- 41.3
Sundry...................................... 16.3 0.1 16.4
Deferred income taxes....................... -- -- --
-------- ----- --------
264.0 0.1 264.1
Property and equipment, net................. 321.0 1.9 322.9
-------- ----- --------
$1,003.9 $21.0 $1,024.9
======== ===== ========
</TABLE>
See notes to consolidated financial statements
<PAGE>
GUIDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1996
(Dollars in millions)
<TABLE>
<CAPTION>
As Previously Reported
Guidant EVT COMBINED
----------------------- ------ ---------
<S> <C> <C> <C>
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable................................ $21.9 $0.7 $22.6
Employee compensation........................... 77.5 -- 77.5
Restructuring liabilities....................... 8.8 -- 8.8
Income taxes payable............................ 2.6 -- 2.6
Other liabilities............................... 67.2 1.6 68.8
Short-term borrowings........................... 130.0 -- 130.0
-------- ------ --------
Total Current Liabilities.................. 308.0 2.3 310.3
NONCURRENT LIABILITIES
Long-term debt.................................. 233.5 -- 233.5
Other........................................... 14.2 -- 14.2
Commitments and contingencies................... -- -- --
Shareholders' Equity
Common stock-no par value:
Authorized shares: 250,000,000
Issued and outstanding shares: 146,958,000.. 192.5 -- 192.5
Additional paid-in capital...................... 150.5 56.3 206.8
Retained earnings............................... 162.0 (37.5) 124.5
Cumulative currency translation adjustments..... (11.7) -- (11.7)
Deferred cost, ESOP............................. (51.2) (0.1) (51.3)
Unrealized gain on investments, net............. 9.4 -- 9.4
Treasury stock, at cost:
Shares: 66,763 (1996)..................... (3.3) -- (3.3)
-------- ----- --------
448.2 18.7 466.9
-------- ----- --------
$1,003.9 $21.0 $1,024.9
======== ===== ========
</TABLE>