Note 1 - Formation and Background Note 2 - Summary of Significant Accounting Policies Note 3 - Change in Accounting Principle Note 4 - Acquisitions Note 5 - Fair Value of Financial Instruments Note 6 - Accounts Receivable Note 7 - Inventories Note 8 - Other Current Assets Note 9 - Property, Plant and Equipment Note 10 - Goodwill and Other Intangible Assets Note 11 - Accounts Payable Note 12 - Accrued and Other Current Liabilities Note 13 - Debt Note 14 - Commitments and Contingencies Note 15 - Stockholders' Equity Note 16 - Earnings Per Share Note 17 - Income Taxes Note 18 - Retirement Benefits Note 19 - Stock and Other Plans Note 20 - Restructuring and Other Charges Note 21 - Segment and Geographical Financial Information Note 22 - Related Parties Note 23 - Subsequent Events Note 24 - Accounting Pronouncements Note 25 - Unaudited Quarterly Financial Information NOTE 4 ACQUISITIONS In November 2002, the Company acquired Maybridge Chemical Holdings Limited (“Maybridge”) and Mimotopes Pty. Limited (“Mimotopes”). Maybridge is a United Kingdom-based provider of organic compounds and combinatorial libraries for use in drug discovery. Mimotopes is an Australia-based manufacturer of custom peptides and peptide libraries used in conducting scientific research. These acquisitions had an aggregate purchase price of $53.2 million and were funded with cash on hand. The results of Maybridge and Mimotopes have been included in our domestic distribution segment from their respective dates of acquisition. In July 2002, the Company acquired a Netherlands-based distributor operating under the names Retsch and Emergo, further enhancing the Company’s position in northern Europe. Retsch and Emergo are distributors of instruments, equipment and supplies to the scientific research and industrial markets. The net purchase price of $7.9 million was funded using cash on hand. The results of Retsch and Emergo have been included in the international distribution segment from the date of acquisition. In April 2002, the Company acquired an additional interest in Medical Analysis Systems, Inc. (“MAS”), increasing the Company’s existing ownership interest in MAS, acquired in June 2001, to 91 percent. On September 18, 2002, the Company caused MAS to merge with and into a wholly-owned merger subsidiary of the Company. In July 2001, the Company acquired Safety Equipment Company (“SEC”), a distributor of safety supplies and personal protection equipment. These acquisitions had an aggregate purchase price of approximately $30 million. The results of MAS and SEC have been included in the domestic distribution segment from their respective dates of acquisition. In November 2001, the Company acquired Cole-Parmer Instrument Company and its affiliated companies (“Cole-Parmer”). Cole-Parmer is a manufacturer and distributor of specialty technical instruments, appliances, equipment and supplies. The purchase price was $208.5 million in cash. In September 2002, the Company finalized its third-party valuation of Cole-Parmer. As a result, the Company adjusted the purchase price allocation to reflect revisions to the fair values of certain assets acquired and liabilities assumed at the date of acquisition, resulting in a net increase to goodwill in the amount of $6.9 million. The results of Cole-Parmer have been included in the domestic distribution segment from the date of acquisition. In February 2001, the Company acquired the pharmaceutical packaging services business of Covance, which the Company renamed Fisher Clinical Services Inc. (“FCS”). FCS enables pharmaceutical and biotechnology customers to outsource the packaging, labeling and distribution of new medicines undergoing Phase III and Phase IV clinical trials. The Company paid in cash an adjusted purchase price of approximately $133 million. The results of FCS have been included in the domestic distribution segment from the date of acquisition. The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of the acquisitions for the acquisitions completed in 2001. The acquisitions completed during 2002 were not material to the financial position or results of operations of the Company, and accordingly, are not presented. The allocation of purchase price has been made based upon management estimates and third-party valuations (in millions). The following unaudited pro forma financial information presents the consolidated results of operations as if the 2001 acquisitions described above had occurred at the beginning of 2001. No pro forma information is required for 2002 as the results of operations already reflect the activity of the acquisitions. The unaudited pro forma amounts include a finance charge to reflect estimated borrowing costs that would have been incurred had the acquisitions occurred at the beginning of 2001. The unaudited pro forma financial information is provided for information purposes only and does not purport to be indicative of the Company’s results of operations that would actually have been achieved had the acquisitions been completed for the periods presented, or that may be achieved in the future (in millions, except per share amounts).