EXHIBIT 99.3
GENZYME CORPORATION 401(k) PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
AS OF DECEMBER 31, 2000 AND 1999
AND FOR THE YEAR ENDED DECEMBER 31, 2000
GENZYME CORPORATION 401(K) PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
PAGE(S)
-------------
Report of Independent Accountants........................... F-2
Financial Statements:
Statements of Net Assets Available for Plan Benefits as of
December 31, 2000 and 1999.............................. F-3
Statement of Changes in Net Assets Available for Plan
Benefits for the year ended December 31, 2000........... F-4
Notes to Financial Statements............................. F-5
Supplemental Schedule:
Schedule of Assets Held for Investment Purposes as of
December 31, 2000....................................... F-13
Certain supplemental schedules required by the regulations of the Employee
Retirement Income Security Act of 1974 have been omitted because they are not
applicable.
F-1
REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrator of the
Genzyme Corporation 401(k) Plan:
In our opinion, the accompanying statements of net assets available for plan
benefits and the related statement of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available for
plan benefits of the Genzyme Corporation 401(k) Plan (the "Plan") at
December 31, 2000 and 1999, and the changes in net assets available for plan
benefits for the year ended December 31, 2000 in conformity with accounting
principles generally accepted in the United States of America. These financial
statements are the responsibility of the Plan's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets held
for investment purposes is presented for the purpose of additional analysis and
is not a required part of the basic financial statements but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplemental schedule is the responsibility of the Plan's management.
This supplemental schedule has been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
June 21, 2001
F-2
GENZYME CORPORATION 401(k) PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
AS OF DECEMBER 31, 2000 AND 1999
2000 1999
------------ ------------
ASSETS
Investments:
Participant-directed........................... $ 96,633,712 $ 91,726,720
Non-participant-directed....................... 23,006,100 11,626,977
------------ ------------
Total investments............................ 119,639,812 103,353,697
------------ ------------
Receivables:
Employee contributions......................... 388,897 315,291
Employer contributions......................... 525,322 2,386,957
Accrued interest............................... -- 70
------------ ------------
Total receivables............................ 914,219 2,702,318
------------ ------------
Total assets................................. 120,554,031 106,056,015
------------ ------------
Net assets available for plan benefits........... $120,554,031 $106,056,015
============ ============
The accompanying notes are an integral part of these financial statements.
F-3
GENZYME CORPORATION 401(k) PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEAR ENDED DECEMBER 31, 2000
NON-PARTICIPANT DIRECTED FUNDS*
-----------------------------------------------------
GENZYME
GENZYME GENZYME GENZYME MOLECULAR
GENERAL BIOSURGERY TISSUE REPAIR ONCOLOGY
PARTICIPANT DIVISION DIVISION DIVISION DIVISION
DIRECTED COMMON COMMON COMMON COMMON
FUNDS STOCK FUND STOCK FUND STOCK FUND** STOCK FUND TOTAL
------------ ----------- ---------- ------------- ---------- ------------
Additions:
Employee contributions............ $ 12,002,501 $ 852,754 $ -- $ 13 $ -- $ 12,855,268
Employer contributions............ 4,731,953 542,672 (1,175) 307,973 4,012 5,585,435
Rollovers......................... 1,470,656 57,658 -- -- -- 1,528,314
Interest and dividend income...... 1,451,871 13,768 -- -- -- 1,465,639
Net appreciation (depreciation)... (10,299,612) 11,380,071 (194,235) 93,996 (9,939) 970,281
------------ ----------- --------- --------- ------- ------------
Total additions................. 9,357,369 12,846,923 (195,410) 401,982 (5,927) 22,404,937
------------ ----------- --------- --------- ------- ------------
Deductions:
Benefit payments and
withdrawals..................... (6,732,373) (1,119,598) 127 (24,895) (2,672) (7,879,411)
Participant expenses.............. (18,883) (2,090) -- (6,408) (129) (27,510)
------------ ----------- --------- --------- ------- ------------
Total deductions................ (6,751,256) (1,121,688) 127 (31,303) (2,801) (7,906,921)
------------ ----------- --------- --------- ------- ------------
Net increase (decrease) prior to
interfund transfers............... 2,606,113 11,725,235 (195,283) 370,679 (8,728) 14,498,016
Interfund transfers................. 1,921,814 (1,868,170) 781,622 (834,425) (841) --
------------ ----------- --------- --------- ------- ------------
Net increase (decrease)............. 4,527,927 9,857,065 586,339 (463,746) (9,569) 14,498,016
Net assets beginning of year........ 92,930,866 12,614,971 -- 463,746 46,432 106,056,015
------------ ----------- --------- --------- ------- ------------
Net assets end of year.............. $ 97,458,793 $22,472,036 $ 586,339 $ -- $36,863 $120,554,031
============ =========== ========= ========= ======= ============
- ------------------------------
* Effective June 18, 2000, certain employer investment options were amended as
exclusively participant directed options.
** The balance in the Genzyme Tissue Repair Stock Fund was transferred to the
Genzyme Biosurgery Stock Fund on December 18, 2000. See Note A.
The accompanying notes are an integral part of these financial statements.
F-4
GENZYME CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
A. PLAN DESCRIPTION
GENERAL
The Genzyme Retirement Savings Plan (the "Plan"), a defined contribution
plan pursuant to the authorization of the Genzyme Corporation ("Genzyme")
Board of Directors (the "Genzyme Board" or "our board"), was established
effective January 1, 1988 to provide a long-range program of systematic
savings for eligible employees ("Participants"). Employees of Genzyme's
wholly-owned United States subsidiaries are eligible to participate in the
Plan, with the exception of employees of the former Deknatel Snowden Pencer,
Inc., an entity acquired by Genzyme during 1996, who participate in Genzyme
Surgical Products Corporation Savings and Investment Plan. Pursuant to plan
amendments with effective dates of April 1, 1997 and July 1, 1997, the Plan
merged with the Genetrix, Inc. Salary Savings Plan and the
PharmaGenics, Inc. 401(k) Plan, respectively. Employees who are 21 years of
age or older become eligible to participate on their first day of
employment. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 ("ERISA"). The plan administrator is the
Retirement Savings Plan Committee, which committee was appointed by our
board (the "Committee").
Effective June 18, 2000, the Genzyme Board amended the Plan resulting in
changes to the Plan including the following:
-- the name of the Plan has been changed to the Genzyme Corporation 401(k)
Plan;
-- certain employer stock ownership and profit-sharing features of the Plan
were discontinued effective June 18, 2000;
-- the biweekly employer match has been increased from 25% of the first 5%
of Participants' eligible compensation to 100% of the first 2% of
Participants' eligible compensation and 50% of the next 4% of
Participants' eligible compensations retroactive to January 1, 2000;
-- a four-year vesting schedule has been implemented for the employer match
with an initial 20% vesting at the time of the employee's eligibility
and subsequent 20% vesting each year for the next four years, however,
active employees at June 18, 2000 remain eligible for full vesting in
both employee and employer contributions;
-- employees may now enroll in the Plan and Participants may now modify
their contribution percentages each pay period rather than on a
quarterly basis;
-- Participants in the Plan may now reallocate contributions made under the
stock ownership feature from Genzyme stock to other investment options
prior to age 50; and
-- a new investment option, the CIGNA Charter Core Bond Fund, is now
available to plan participants.
On December 18, 2000, Genzyme acquired Biomatrix, Inc. At the time of the
merger, Genzyme created Genzyme Biosurgery as a new division. Genzyme
reallocated the businesses of two of its then-existing divisions--Genzyme
Surgical Products and Genzyme Tissue Repair--to Genzyme Biosurgery and
allocated the acquired businesses of Biomatrix to Genzyme Biosurgery. As a
result of this transaction, Genzyme amended its charter to create Genzyme
Biosurgery Division common stock, which we refer to as "Biosurgery Stock",
and eliminated Surgical Products Division common stock, which we refer to as
"Surgical Products Stock" and Tissue Repair Division common stock, which we
refer to as "Tissue Repair Stock". Each outstanding share of Surgical
Products Stock was
F-5
GENZYME CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
converted into 0.6060 of a share of Biosurgery Stock and each outstanding
share of Tissue Repair Stock was converted into 0.3352 of a share of
Biosurgery Stock. On December 18, 2000, the outstanding balance in the
Genzyme Tissue Repair Division Common Stock Fund was transferred to the
Genzyme Biosurgery Division Common Stock Fund.
The following description of the Plan provides only general information.
Participants should refer to the Summary Plan Description for a more
complete description of the Plan's provisions.
INVESTMENT OPTIONS
The following participant-directed investment options have been made
available to Participants during 2000:
- CIGNA Separate Accounts
-- the Fidelity Puritan Account;
-- the CIGNA Charter Large Company Stock Index Fund;
-- the PBHG Growth Account;
-- the Templeton Foreign Account;
-- the Janus Account;
-- the Fidelity Advisor Growth Opportunities Account;
-- the INVESCO Dynamics Account;
-- the CIGNA Charter Small Company Stock--Value I Fund;
-- the CIGNA Charter Small Company Stock--Growth Fund;
-- the INVESCO Small Company Growth Account;
-- the Lazard International Equity Account; and
-- the CIGNA Charter Core Bond Fund
- The Putnam Voyager Fund
- CIGNA Guaranteed Investment Contracts
The CIGNA Charter Guaranteed Income Fund--This fund offers Participants a
fixed income fund to provide yield returns relative to comparable
guaranteed fixed income investment funds. CIGNA maintains the
contributions in a pooled account. The contract is included in the
financial statements at contract value, which approximates market value
and represents contributions made under the contract, plus credited
interest, less withdrawals and administrative expenses because it is
fully benefit responsive. The average yield and crediting interest rate
is based on an agreed-upon formula with the issuer but cannot be less
than zero. The average yield and crediting interest rates were
approximately 5.95% during 2000.
The CIGNA Charter Guaranteed Securities Separate Account--This fund also
offers Participants a fixed income fund, which is composed primarily of
publicly traded investment-grade, intermediate-term securities. Principal
and interest are guaranteed by CIGNA's Connecticut General Life Insurance
Company. CIGNA maintains the contributions in a pooled account. The
contract is included in the financial statements at contract value, which
F-6
GENZYME CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
approximates market value and represents contributions made under the
contract, plus credited interest, less withdrawals and administrative
expenses because it is fully benefit responsive. Assets previously held
in the CIGNA Guaranteed Securities Separate Account were transferred into
this fund upon dissolution of that fund in September 1999. The average
yield and crediting interest rates were approximately 5.00% during 2000.
The crediting interest rate is based on an agreed-upon formula with the
issuer but cannot be less than zero.
The CIGNA Guaranteed Securities Separate Account--This fund offered
Participants a fixed income fund composed primarily of publicly traded
investment-grade, intermediate-term securities. Principal and interest
were guaranteed by CIGNA's Connecticut General Life Insurance Company.
CIGNA maintained the contributions in a pooled account. The contract is
included in the financial statements at contract value, which
approximates market value and represents contributions made under the
contract, plus credited interest, less withdrawals and administrative
expenses because it is fully benefit responsive. This account was
dissolved in September 1999.
Reallocation of account balances among participant directed investment
options can be requested and processed on a daily basis.
The following nonparticipant-directed investment options have also been made
available to Participants during 2000:
The Genzyme General Division Common Stock Fund--This fund is currently
invested solely in shares of Genzyme General Division common stock, which we
refer to as "Genzyme General Stock". Amounts contributed to the Genzyme
General Division Common Stock Fund may be invested in other short-term
investments pending the purchase of Genzyme General Stock. During 2000,
contributions to this fund were participant-directed.
Non-participant-directed contributions relating to certain employer stock
ownership features were subsequently discontinued from the Plan effective
June 18, 2000.
The Genzyme Biosurgery Division Common Stock Fund--As described in
Note A.-"Plan Description," on December 18, 2000, in connection with the
creation of Biosurgery Stock, the outstanding balance in the Genzyme Tissue
Repair Division Common Stock Fund was transferred to the Genzyme Biosurgery
Division Common Stock Fund. This fund is currently invested solely in shares
of Biosurgery Stock. Amounts contributed to the Genzyme Biosurgery Division
Common Stock Fund may be invested in other short-term investments pending
the purchase of Biosurgery Stock. This fund is made available to
Participants only as an employer match option. Non-participant-directed
contributions relating to certain employer stock ownership features were
subsequently discontinued from the Plan effective June 18, 2000.
The Genzyme Tissue Repair Division Common Stock Fund--Prior to December 18,
2000, this fund was invested solely in shares of Tissue Repair Stock.
Amounts contributed to the Genzyme Tissue Repair Division Common Stock Fund
were invested in other short-term investments pending the purchase of Tissue
Repair Stock. This fund was made available to Participants through
December 18, 2000 only as an employer match, a profit-sharing allocation
option or through the stock ownership program, the latter two features of
which were eliminated from the Plan effective June 18, 2000. On
December 18, 2000, in connection with the creation of Biosurgery Stock,
Genzyme Tissue Repair Stock was converted into Biosurgery Stock. The balance
in the Genzyme Tissue Repair Common Stock Fund on that date was transferred
to the Genzyme Biosurgery Division Common Stock Fund as described above.
F-7
GENZYME CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
The Genzyme Molecular Oncology Division Common Stock Fund--This fund is
currently invested solely in shares of Genzyme Molecular Oncology Division
common stock, which we refer to as "Molecular Oncology Stock". Amounts
contributed to the Genzyme Molecular Oncology Division Common Stock Fund may
be invested in other short-term investments pending the purchase of
Molecular Oncology Stock. This fund was made available to Participants only
through the stock ownership program which was discontinued in June 2000.
EMPLOYEE CONTRIBUTIONS
The Plan is a defined contribution plan. Eligible employees may elect,
through salary reduction agreements, to have up to 18% or a maximum of
$10,500 of their eligible compensation, as defined by the Plan, contributed
on a pre-tax basis to the Plan each year on their behalf. Changes in
withholding percentages are permitted as of the last day of each quarter of
the plan year. New employees with funds held under a previous employer's
qualified plan are permitted to invest such funds into the Plan. These
investments are classified as "rollovers" on the accompanying statement of
changes in net assets available for plan benefits. A Participant's salary
reduction contribution for a plan year may be further limited by the
administration rules of the Internal Revenue Code of 1986, as amended (the
"Code"), if the Participant is considered to be a highly compensated
employee within the meaning of the Code.
EMPLOYER CONTRIBUTIONS
Effective June 18, 2000, the Plan was amended to increase the biweekly
employer match from 25% of the first 5% of Participants' eligible
compensation to 100% of the first 2% of Participants' eligible compensation
and 50% of the next 4% of Participants' eligible compensation, retroactive
to January 1, 2000. Genzyme's contributions were $5,585,435 for the year
ended December 31, 2000.
Participants may invest their contributions in increments determined at
their own discretion. Employer contributions are invested as directed by the
Participants, with the exception of non-participant-directed contributions
made through the employer stock ownership features prior to June 18, 2000.
If a Participant does not provide direction with respect to the investment
of the Participant's contribution, all contributions will automatically be
invested in the CIGNA Charter Guaranteed Securities Separate Account.
Pursuant to a plan amendment effective January 1, 1997, Genzyme made
contributions to the Plan under a profit-sharing program and a stock
ownership program. For the profit-sharing plan, Genzyme contributed up to
0.75% of all employees' eligible compensation in either cash or stock. For
contributions made into the stock ownership plan, which are non-participant
directed, Genzyme contributed Genzyme General Stock, Tissue Repair Stock and
Molecular Oncology Stock equivalent to 1% of all employees' eligible
compensation into the respective Division's Common Stock Fund. Genzyme made
no contributions to the Plan under the profit-sharing and stock ownership
programs for the period from January 1, 2000 through June 18, 2000. These
aspects of the profit-sharing program and stock ownership program were
discontinued pursuant to a plan amendment effective June 18, 2000.
F-8
GENZYME CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
VESTING
Prior to June 18, 2000, Participants had a 100% nonforfeitable interest in
both employee and employer contributions at all times. Effective June 18,
2000, the Plan was amended to implement a four-year vesting schedule for the
employer match with an initial 20% vesting at the time of the employee's
eligibility and a subsequent 20% vesting each year for the next four years.
However, active employees at June 18, 2000 remain eligible for full vesting
in both employee and employer contributions. Upon termination of employment
or total and permanent disability, a Participant, or a Participant's
beneficiary in the case of a Participant's death, is entitled to receive the
fully vested amount in the Participant's account.
BENEFITS AND WITHDRAWALS
Distributions upon retirement at age 59 1/2 or later, death, or termination
are made in a lump-sum payment. Contributions may be withdrawn from the Plan
only upon a demonstration of hardship, as defined in the Summary Plan
Description, unless the Participant (or survivor) requesting such withdrawal
has attained the age of 59 1/2, died or terminated employment.
LOANS
Participants may obtain a loan from the Plan collateralized by the
Participant's vested interest in the Plan. No loan may exceed the lesser of
one half of the vested interest of a Participant or $50,000, and must be at
least $1,000. A Participant may not obtain a loan unless the plan
administrator approves the transaction. All loans bear interest as
determined by the plan administrator at the time of the loan. At
December 31, 2000, all loans bear interest rates between 2% and 10% and
mature through 2019. A written repayment schedule specifies the date and
payment amount necessary to amortize the loan.
The Plan had Participant loans outstanding of $1,703,842 at December 31,
2000 and $1,746,404 at December 31, 1999. These outstanding loans are
classified as participant-directed investments on the accompanying
statements of net assets available for plan benefits.
FORFEITED ACCOUNTS
At December 31, 2000, forfeited accounts totaled $146,892. These accounts
are used to reduce future employer contributions. There were no reductions
to employer contributions from forfeited, non-vested accounts during the
year ended December 31, 2000.
B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual method
of accounting.
CASH EQUIVALENTS
The Plan considers cash equivalents to be short-term, highly liquid
investments, with initial maturities of less than three months.
F-9
GENZYME CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
INVESTMENT VALUATION AND INCOME RECOGNITION
Units of participation in the CIGNA separate accounts are valued at net
asset value as reported to the Plan by CIGNA, which approximates fair value.
The Putnam Voyager Fund, Genzyme General Division Common Stock Fund, Genzyme
Biosurgery Division Common Stock Fund, Genzyme Tissue Repair Division Common
Stock Fund and Genzyme Molecular Oncology Division Common Stock Fund are
stated at fair value, based upon quoted market prices in an active market on
the last business day of the plan year. The CIGNA Guaranteed Investment
Contracts are valued at contract value which approximates fair value.
Participant loans are valued at cost plus accrued interest which
approximates fair value.
The Plan presents in the statement of changes in net assets available for
plan benefits the net appreciation (depreciation) in the fair value of its
investments, which consists of the realized gains or losses and the
unrealized appreciation (depreciation) on those investments. Security
transactions are accounted for on the trade date. Gain or loss on sales of
investments is based on average cost.
Dividend and interest income is recorded as earned using the accrual basis.
CONTRIBUTIONS AND BENEFIT PAYMENTS
Employee contributions and matching employer contributions are recorded in
the period the payroll deductions are made. Benefits are recorded when paid.
USE OF ESTIMATES
The preparation of the Plan's financial statements in conformity with
generally accepted accounting principles requires the Committee to make
significant estimates and assumptions that affect the reported amounts of
net assets available for benefits at the date of the financial statements
and the changes in net assets available for plan benefits during the
reporting period and, when applicable, disclosures of contingent assets and
liabilities at the date of the financial statements. Actual results could
differ from those estimates.
RISKS AND UNCERTAINTIES
The Plan provides for various investment options in any combination of
stocks, bonds, fixed income securities, mutual funds, and other investment
securities. Investment securities are exposed to various risks, such as
interest rate, market, and credit risks. Due to the level of risk associated
with certain investment securities, it is at least reasonably possible that
changes in the values of investment securities will occur in the near term
and that such changes could materially affect participant account balances
and the amounts reported in the statements of net assets available for plan
benefits.
F-10
GENZYME CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
C. INVESTMENTS
The fair value of individual investments that represent 5% or more of the
Plan's net assets are as follows:
DECEMBER 31,
-------------------------
2000 1999
----------- -----------
Fidelity Puritan Account........................... $16,900,849 $16,846,904
Charter Large Company Stock Index Fund............. 27,757,338 30,605,108
Putnam Voyager Fund................................ 7,023,313 6,726,767
PBHG Growth Account................................ 15,571,989 18,411,271
Charter Guaranteed Securities Separate Account..... 8,263,075 7,398,657
Genzyme General Division Common Stock Fund......... 22,382,117 11,192,596
During 2000, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) increased in
value by $2,435,920 as follows:
Net appreciation (depreciation) in fair value of registered
investment companies...................................... $ 970,281
Interest and dividends...................................... 1,465,639
-----------
Total investment income..................................... $ 2,435,920
===========
D. QUALIFICATION UNDER THE INTERNAL REVENUE CODE
The Internal Revenue Service ("IRS") determined and informed the Committee
by a letter dated December 8, 1999, that the Plan and related trust were
designed in accordance with applicable sections of the Code. The Plan, since
being amended, has not yet requested a determination letter from the IRS.
However, the Plan was designed based upon a prototype plan that has been
previously granted tax-qualified status by the IRS. The Committee believes
that the Plan is designed and is currently being operated in compliance with
all applicable requirements of the Internal Revenue Code and ERISA.
Therefore, no provision for income taxes has been included in the Plan's
financial statements.
E. AMENDMENT OR TERMINATION OF THE PLAN
Genzyme intends to continue the Plan indefinitely but reserves the right to
terminate it at any time or amend it in any manner advisable. No amendment
may adversely affect the nonforfeitable interests of Participants in their
accounts or permit the use or diversion of any part of the Plan other than
for the exclusive benefit of the Participants or their beneficiaries
(subject to plan provisions permitting payment of fees and expenses). No
merger, consolidation, or transfers of assets or liabilities of the Plan may
reduce the Participant's interest accrued to the date of the merger,
consolidation, or transfer. If Genzyme discontinues its contributions or if
the Plan is fully or partially terminated, the affected Participant's rights
to benefits will remain fully vested if vested prior to such action.
F-11
GENZYME CORPORATION 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
F. RELATED PARTY
Certain plan investments are separate accounts managed by CIGNA. CIGNA is
the trustee as defined by the Plan and, therefore, these transactions
qualify as party-in-interest. Fees incurred by the Plan for investment
management and administrative services amounted to $27,510 for the year
ended December 31, 2000.
G. SERVICES PROVIDED BY GENZYME
Genzyme provides certain administrative and recordkeeping services for the
Plan at no cost to the plan participants. In addition, Genzyme has paid the
trustee fees and other related costs on behalf of the Plan.
H. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500:
DECEMBER 31,
---------------------------
2000 1999
------------ ------------
Net assets available for benefits per the
financial statements........................... $120,554,031 $106,056,015
Amounts payable to withdrawing participants...... -- (119,688)
------------ ------------
Net assets available for benefits per Form
5500........................................... $120,554,031 $105,936,327
============ ============
The following is a reconciliation of benefits paid to Participants per the
financial statements to the Form 5500:
YEAR ENDED
DECEMBER 31, 2000
-----------------
Benefits paid to participants per the financial
statements................................................ $7,879,411
Add: amounts payable to withdrawing participants
at December 31, 2000...................................... 69,316
Less: amounts payable to withdrawing participants
at December 31, 1999...................................... (119,688)
----------
Net assets available for benefits per Form 5500............. $7,829,039
==========
Amounts allocated to withdrawing Participants are recorded on Form 5500 for
benefit claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
I. SUBSEQUENT EVENTS
Effective January 1, 2001, participants in the Genzyme Surgical Products
Corporation Investment and Savings Plan are eligible to participate in the
Genzyme 401(k) Plan.
F-12
GENZYME CORPORATION 401(k) PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 2000
FAIR OR
HISTORICAL CONTRACT
IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT COST VALUE
----------------- ------------------------- ---------- ------------
*CIGNA Charter Guaranteed Income Fund $ ** $ 4,762,416
*CIGNA Fidelity Puritan Account ** 16,900,849
*CIGNA Charter Large Company Stock Index
Fund ** 27,757,338
Putnam Voyager Fund ** 7,023,313
*CIGNA PBHG Growth Account ** 15,571,989
*CIGNA Templeton Foreign Account ** 2,913,064
*CIGNA Janus Account ** 3,990,846
*CIGNA Fidelity Advisor Growth Opportunities
Account ** 489,695
*CIGNA INVESCO Dynamics Account ** 2,619,125
*CIGNA Charter Small Company Stock--Value I
Fund ** 945,881
*CIGNA Charter Small Company Stock--Growth
Fund ** 1,112,776
*CIGNA INVESCO Small Company Growth Account ** 1,791,617
*CIGNA Lazard International Equity Account ** 715,363
*CIGNA Charter Guaranteed Securities
Separate Account ** 8,263,075
*CIGNA Charter Core Bond Fund ** 72,523
*Participant Loan Fund Loans with interest rates between 2%
and 10% maturing through 2019 ** 1,703,842
*Genzyme General Division Common Stock ** 22,382,117
*Genzyme Biosurgery Division Common Stock ** 587,388
*Genzyme Molecular Oncology Division Common Stock ** 36,595
------------
$119,639,812
============
* Denotes party-in-interest.
** Participant-directed amounts are not required to be disclosed.
F-13