Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Edwards Lifesciences Corp., balance sheet: goodwill and intangible assets

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Goodwill	1,167,900)	1,173,200)	1,167,700)	1,112,200)	1,126,500)
Patents	185,700)	186,100)	185,700)	185,800)	186,100)
Developed technology	153,900)	155,200)	153,500)	119,800)	190,800)
Other	12,400)	12,600)	12,300)	—)	3,700)
Finite-lived intangible assets, cost	352,000)	353,900)	351,500)	305,600)	380,600)
Accumulated amortization	(246,500)	(240,600)	(233,100)	(225,400)	(227,900)
Finite-lived intangible assets, net carrying value	105,500)	113,300)	118,400)	80,200)	152,700)
In-process research and development	218,100)	218,100)	218,100)	263,000)	315,300)
Indefinite-lived intangible assets	218,100)	218,100)	218,100)	263,000)	315,300)
Other intangible assets	323,600)	331,400)	336,500)	343,200)	468,000)
Goodwill and other intangible assets	1,491,500)	1,504,600)	1,504,200)	1,455,400)	1,594,500)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Download chart

Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Edwards Lifesciences Corp. goodwill increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Other intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Edwards Lifesciences Corp. other intangible assets decreased from 2019 to 2020 and from 2020 to 2021.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Edwards Lifesciences Corp. goodwill and other intangible assets increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Edwards Lifesciences Corp., adjustments to financial statements

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported)	8,502,600)	7,237,100)	6,488,100)	5,323,700)	5,695,800)
Less: Goodwill	1,167,900)	1,173,200)	1,167,700)	1,112,200)	1,126,500)
Total assets (adjusted)	7,334,700)	6,063,900)	5,320,400)	4,211,500)	4,569,300)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	5,835,900)	4,574,300)	4,148,300)	3,140,400)	2,956,200)
Less: Goodwill	1,167,900)	1,173,200)	1,167,700)	1,112,200)	1,126,500)
Stockholders’ equity (adjusted)	4,668,000)	3,401,100)	2,980,600)	2,028,200)	1,829,700)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Edwards Lifesciences Corp., Financial Data: Reported vs. Adjusted

Download chart

Edwards Lifesciences Corp., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Total Asset Turnover
Reported total asset turnover	0.62	0.61	0.67	0.70	0.60
Adjusted total asset turnover	0.71	0.72	0.82	0.88	0.75
Financial Leverage
Reported financial leverage	1.46	1.58	1.56	1.70	1.93
Adjusted financial leverage	1.57	1.78	1.79	2.08	2.50
Return on Equity (ROE)
Reported ROE	25.76%	18.00%	25.24%	23.00%	19.74%
Adjusted ROE	32.20%	24.21%	35.12%	35.61%	31.90%
Return on Assets (ROA)
Reported ROA	17.68%	11.38%	16.14%	13.57%	10.25%
Adjusted ROA	20.49%	13.58%	19.68%	17.15%	12.77%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Edwards Lifesciences Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Edwards Lifesciences Corp. adjusted financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Edwards Lifesciences Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Edwards Lifesciences Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Edwards Lifesciences Corp., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales	5,232,500)	4,386,300)	4,348,000)	3,722,800)	3,435,300)
Total assets	8,502,600)	7,237,100)	6,488,100)	5,323,700)	5,695,800)
Activity Ratio
Total asset turnover¹	0.62	0.61	0.67	0.70	0.60
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales	5,232,500)	4,386,300)	4,348,000)	3,722,800)	3,435,300)
Adjusted total assets	7,334,700)	6,063,900)	5,320,400)	4,211,500)	4,569,300)
Activity Ratio
Adjusted total asset turnover²	0.71	0.72	0.82	0.88	0.75

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 5,232,500 ÷ 8,502,600 = 0.62

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 5,232,500 ÷ 7,334,700 = 0.71

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Edwards Lifesciences Corp. adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	8,502,600)	7,237,100)	6,488,100)	5,323,700)	5,695,800)
Stockholders’ equity	5,835,900)	4,574,300)	4,148,300)	3,140,400)	2,956,200)
Solvency Ratio
Financial leverage¹	1.46	1.58	1.56	1.70	1.93
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	7,334,700)	6,063,900)	5,320,400)	4,211,500)	4,569,300)
Adjusted stockholders’ equity	4,668,000)	3,401,100)	2,980,600)	2,028,200)	1,829,700)
Solvency Ratio
Adjusted financial leverage²	1.57	1.78	1.79	2.08	2.50

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 8,502,600 ÷ 5,835,900 = 1.46

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 7,334,700 ÷ 4,668,000 = 1.57

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Edwards Lifesciences Corp. adjusted financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,503,100)	823,400)	1,046,900)	722,200)	583,600)
Stockholders’ equity	5,835,900)	4,574,300)	4,148,300)	3,140,400)	2,956,200)
Profitability Ratio
ROE¹	25.76%	18.00%	25.24%	23.00%	19.74%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	1,503,100)	823,400)	1,046,900)	722,200)	583,600)
Adjusted stockholders’ equity	4,668,000)	3,401,100)	2,980,600)	2,028,200)	1,829,700)
Profitability Ratio
Adjusted ROE²	32.20%	24.21%	35.12%	35.61%	31.90%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,503,100 ÷ 5,835,900 = 25.76%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 1,503,100 ÷ 4,668,000 = 32.20%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Edwards Lifesciences Corp. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,503,100)	823,400)	1,046,900)	722,200)	583,600)
Total assets	8,502,600)	7,237,100)	6,488,100)	5,323,700)	5,695,800)
Profitability Ratio
ROA¹	17.68%	11.38%	16.14%	13.57%	10.25%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	1,503,100)	823,400)	1,046,900)	722,200)	583,600)
Adjusted total assets	7,334,700)	6,063,900)	5,320,400)	4,211,500)	4,569,300)
Profitability Ratio
Adjusted ROA²	20.49%	13.58%	19.68%	17.15%	12.77%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,503,100 ÷ 8,502,600 = 17.68%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,503,100 ÷ 7,334,700 = 20.49%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Edwards Lifesciences Corp. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Edwards Lifesciences Corp. (NYSE:EW)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Edwards Lifesciences Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Edwards Lifesciences Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)