/FIRST AND FINAL ADD - TO294 - MDS Inc./
07 Juni 2007 - 2:00PM
PR Newswire (US)
(b) Financial Assets and Financial Liabilities Under the new
standards, all financial instruments are classified into one of the
following five categories: held-for-trading, held-to-maturity
investments, loans and receivables, available-for-sale financial
assets or other financial liabilities. All financial instruments,
including derivatives, are included on the consolidated statement
of financial position and are measured at fair value except for
loans and receivables, held-to-maturity investments and other
financial liabilities which are measured at amortized cost. Held
for trading financial investments are recorded at cost as they are
initiated and are subsequently measured at fair value and all gains
and losses are included in net income in the period in which they
arise. Available-for-sale financial instruments are also initially
recorded at cost and are subsequently measured at fair value with
revaluation gains and losses included in other comprehensive income
until the instrument is disposed, derecognized, or impaired. As a
result of the adoption of these standards, the Company has
classified its cash and cash equivalents as held-for-trading.
Short-term investments are classified as available-for-sale
investments. Accounts receivable, and long-term note receivables
are classified as loans and receivables. The financial instrument
pledged as security on long-term debt is classified as a
held-to-maturity investment. Accounts payable, long-term debt and
capital lease obligations have been classified as other financial
liabilities, all of which are measured at amortized cost. (c)
Derivatives and Hedge Accounting Derivatives ----------- All
derivative instruments, including embedded derivatives, are
recorded in the statement of financial position at fair value
unless exempted from derivative treatment as a normal purchase and
sale. All changes in their fair value are recorded in income unless
cash flow hedge accounting is used, in which case changes in fair
value are recorded in other comprehensive income. The Company has
elected to apply this accounting treatment for all embedded
derivatives in host contracts entered into on or after November 1,
2003. The impact of the change in the accounting policy related to
embedded derivatives was not material. Hedge Accounting
---------------- At the inception of a hedging relationship, the
Company documents the relationship between the hedging instrument
and the hedged item, as well as the risk management objectives and
strategy for undertaking various hedge transactions. This process
includes linking all derivatives to specific assets and liabilities
on the consolidated statement of financial position or to specific
firm commitments or forecasted transactions. The Company also
assesses, both at the inception of the hedge and on an ongoing
basis, whether the derivatives that are used are effective in
offsetting changes in fair values or cash flows of hedged items.
Under the previous standards, derivatives that met the requirements
for hedge accounting were generally accounted for on an accrual
basis. Under the new standards, all derivatives are recorded at
fair value. All gains and losses from changes in the fair value of
derivatives not designated as a part of a hedging relationship are
recognized in the statement of income. These gains and losses are
reported in other income (expense). When derivatives are designated
as hedges, the Company classifies them either as: (i) hedges in the
change in fair value of recognized assets or liabilities or firm
commitments (fair value hedges); (ii) hedges of the variability in
highly probable future cash flows attributable to a recognized
asset or liability, or a forecasted transaction (cash flow hedges);
or (iii) hedges of net investments in a foreign operation (net
investment hedges). Cash flow hedge --------------- The Company
operates globally, which gives rise to risks that its earnings and
cash flows may be adversely impacted by fluctuations in foreign
exchange rates. The Company enters into foreign currency forward
contracts and foreign currency option contracts to hedge foreign
exchange exposures on anticipated sales. The effective portion of
changes in the fair value of derivatives that are designated and
qualify as cash flow hedges is recognized in other comprehensive
income. Any gain or loss in fair value relating to the ineffective
portion is recognized immediately in the statement of income in
other income (expense). Amounts accumulated in other comprehensive
income are reclassified to the statement of income in the period in
which the hedged item affects income. When a hedging instrument
expires or is sold, or when a hedge no longer meets the criteria
for hedge accounting, any cumulative gain or loss existing in other
comprehensive income at that time remains in other comprehensive
income as long as the forecasted transaction is still probable of
occurring and would be recognized in the statement of income in the
period the hedged transaction impacts income. When a forecasted
transaction is no longer expected to occur, the cumulative gain or
loss that was reported in other comprehensive income is immediately
transferred to the statement of income. Upon adoption of the new
standards, the Company recorded a net increase in derivatives
assets included in accounts receivables of $1 million designated as
cash flow hedges and an increase of $1 million pre-tax in
accumulated other comprehensive income. Net investment hedges
--------------------- Hedges of net investments in foreign
operations are accounted for similar to cash flow hedges. Any gain
or loss on the hedging instrument relating to the effective portion
of the hedge is recognized in other comprehensive income. The gain
or loss relating to the ineffective portion is recognized
immediately in the statement of income. Gains and losses
accumulated in other comprehensive income are included in the
statement of income upon the repatriation, reduction or disposal of
the investment in the foreign operation. The adoption of the new
standards resulted in the reclassification of $347 million
previously recorded in the foreign currency translation adjustment
account to opening accumulated comprehensive income. Carrying value
and fair value of financial assets and liabilities as at April 30,
2007 are summarized as follows:
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Classification
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Held-for-trading $ 301 Held-to-maturity 39 Loans and receivables
358 Available-for-sale 21 Other liabilities $ 806
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(d) Measurement Uncertainty To determine the assets held for sale
related to those operations classified as discontinued operations,
we are required to make estimates and assumptions that affect the
reported amounts of these assets and liabilities and, therefore,
these amounts are subject to measurement uncertainty. (e) Future
Changes in Accounting Policies Capital Disclosures The CICA issued
a new accounting standard, Section 1535 - Capital Disclosures,
which requires the disclosure of both qualitative and quantitative
information that enables users of financial statements to evaluate
the entity's objectives, policies and processes for managing
capital. This new standard is effective for the Company beginning
November 1, 2007. Financial Instruments The CICA issued two new
accounting standards, Section 3862 - Financial Instruments -
Disclosures, and Section 3863, Financial Instruments -
Presentation, which apply to interim and annual financial
statements relating to fiscal years beginning on or after October
1, 2007. The Company intends to adopt these new standards effective
November 1, 2007. 4. Accumulated Other Comprehensive Income The
accumulated balances related to each component of other
comprehensive income (loss), net of income taxes are as follows:
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Accumulated other comprehensive income, net of income taxes
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As at April 30, 2007
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Unrealized gains on derivatives designated as cash flow hedges $ 2
Unrealized gains on translation of debt designated as a hedge 119
Foreign currency translation (losses) on self-sustaining foreign
operations (162) Unrealized gain on translation resulting from the
application of US dollar reporting 378
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Accumulated other comprehensive income balance as at April 30, 2007
$ 337
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Income taxes liability (asset) related to the above components of
accumulated other comprehensive income (loss) for unrealized gains
(losses) on derivatives designated as cash flow hedges and
unrealized gains (losses) on translation of debt designated as a
hedge are $1 million and $21 million respectively. 5. Share Capital
and Stock Options The following table summarizes information on
share capital and stock options and related matters as at April 30,
2007: (number of shares in thousands) Number Amount
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Common shares Balance as at October 31, 2006 144,319 $ 572 Issued
during the period 800 13 Repurchased during the period (22,831)
(123)
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Balance as at April 30, 2007 122,288 $ 462
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During the quarter, the Company repurchased and cancelled 22,831
Common shares, under the terms of a substantial issuer bid. Average
Exercise (number of shares in thousands) Number Price
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Stock options Balance as at October 31, 2006 5,850 $ 18.76 Activity
during the period: Granted 340 21.64 Exercised (710) 15.66
Cancelled or forfeited (163) 20.10
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Balance as at April 30, 2007 5,317 $ 19.31
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There were 3,661 stock options exercisable as at April 30, 2007. 6.
Acquisition of Molecular Devices Corporation On March 20, 2007, the
Company completed a tender offer which resulted in MDS acquiring
100% of the shares of Molecular Devices Corporation (MD), a
California-based company with global operations. MD designs,
develops, manufactures, sells and services bioanalytical
measurement systems that accelerate and improve drug discovery and
other life sciences research. The Company acquired MD primarily to
add their leading-edge products to those of MDS Sciex to strengthen
MDS's position as one of the top global providers of analytical
instrumentation and related products marketed to life sciences
customers. The operations for this acquisition are reported within
the results of the Company's newly formed MDS Analytical
Technologies segment (which combines MD with the previous
Instruments segment) in the consolidated financial statements from
the acquisition date. The aggregate purchase consideration (net of
cash acquired of $21 million) was approximately $603 million paid
in cash from existing cash on hand. Included in the consideration
is the cash cost of $27 million to settle all outstanding
in-the-money options of MD at the closing date of the acquisition.
Direct and incremental third party acquisition costs associated
with the acquisition were approximately $8 million. The acquisition
has been accounted for as a purchase in accordance with CICA
Handbook Section 1581 "Business Combinations" and the Company has
accordingly allocated the purchase price of the acquisition based
upon the preliminary fair values of the assets acquired and
liabilities assumed. The purchase price and related allocations
have not been finalized and may be revised as a result of
adjustments made to the purchase price as additional information
regarding liabilities incurred and revisions are made to
preliminary estimates of fair values made at the acquisition date.
In connection with determining the fair value of the assets
acquired and liabilities assumed, management, assisted by valuation
consultants, performed assessments of intangible assets using
customary valuation procedures and techniques. The components of
the preliminary purchase price allocation for the acquisition cost
of MD are as follows:
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Consideration and acquisition costs: Cash and payments, net of cash
acquired $ 595 Transaction costs 8
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Net consideration and acquisition costs $ 603
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Allocation of purchase price Net tangible assets acquired $ 50
Intangible assets acquired: Developed technology 111 In process
research and development 11 Brands 60 Goodwill (non-tax deductible)
371
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Total purchase price $ 603
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The following table summarizes the components of the tangible
assets acquired at fair value:
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Inventories $ 60 Property, plant and equipment 12 Other assets and
liabilities, net (22)
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Net tangible assets acquired $ 50
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Other assets and liabilities includes $23 million of net future tax
liabilities. Net tangible assets acquired include a charge of $4
million to eliminate redundant positions at MD over the course of
the next year. The developed technology and in-process research and
development will be amortized over their estimated lives, which are
between five and seven years while the brands have an indefinite
life and are not amortized. 7. Sale of Canadian Diagnostics
Business and Discontinued Operations In 2005, The Board of
Directors of the Company approved a strategic plan to focus the
Company on its life sciences businesses and to close or divest of
businesses that were not strategic to this plan. As a result, the
Company had reclassified its Canadian diagnostics business as
discontinued operations. On February 26, 2007, the Company
completed the sale of its Canadian diagnostic services business to
Borealis Infrastructure Management Inc. for gross proceeds of
C$1.325 billion. The sale was structured as an asset purchase
transaction and after provision for taxes, expenses and amounts
attributable to minority interests, resulted in net proceeds of
US$988 million comprising $929 million in cash and $65 million in
an unconditional non-interest bearing note payable in March 2009.
This note was recorded at an effective interest rate of 4.4% and
had a book value of $59 million. Included in income from
discontinued operations, the Company recorded a net gain of US$792
million on the transaction in the quarter. As a result of the sale,
MDS sold $82 million in net assets consisting of:
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Accounts receivable $ 31 Property, plant and equipment 27 Long-term
investments and other 18 Goodwill 57 Accounts payable and accrued
liabilities (27) Long-term debt and other long-term obligations
(24)
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Net assets $ 82
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The results of discontinued operations in the quarter and the
six-months ended April 30 were as follows: Three months Six months
to April 30 to April 30
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2007 2006 2007 2006
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Net revenues $ 20 $ 98 $ 95 $ 198 Cost of revenues (12) (63) (58)
(131) Selling, general and administration (5) (12) (14) (27)
Depreciation and amortization - (2) - (5) Restructuring charges - -
- (1) Equity earnings - - 1 1
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Operating income 3 21 24 35 Gain on sale of discontinued operations
905 - 905 24 Dividend and interest income - 1 1 1 Income taxes
(114) (3) (117) (6) Minority interest - net of tax (1) (3) (4) (5)
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Income from discontinued operations - net of tax $ 793 $ 16 $ 809 $
49
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Basic earnings per share $ 5.77 $ 0.11 $ 5.74 $ 0.34
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Diluted earnings per share $ 5.75 $ 0.11 $ 5.73 $ 0.34
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The results from discontinued operations for 2007 reflect only the
Canadian diagnostic services business. The results from
discontinued operations for 2006 include results from the Canadian
diagnostic services business and certain small MDS Pharma Services
businesses discontinued in 2005. In accordance with Section 3475 of
the CICA Handbook, long-lived assets classified as held for sale
are measured at the lower of carrying value and fair value less
costs to sell. Assets held for sale and liabilities related to
assets held for sale comprised: As at As at April 30 October 31
2007 2006
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Assets held for sale Accounts receivable $ - $ 31 Inventories - 3
Prepaid expenses and other - 3 Property, plant and equipment - 28
Future tax asset - 63 Long-term investments and other 1 13 Goodwill
- 54 Intangibles - 1
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Total assets held for sale 1 196 Less: Current assets held for
sale(1) (1) (196)
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Long-term assets held for sale $ - $ -
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Liabilities related to assets held for sale Accounts payable and
accrued liabilities $ - $ 33 Income taxes payable - - Long-term
debt - 4 Other long-term obligations - 6 Future tax liabilities -
55 Minority interest - 16
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Total liabilities related to assets held for sale - 114 Less:
Current liabilities related to assets held for sale(1) - (114)
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Long-term liabilities related to assets held for sale $ - $ -
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(1) Assets held for sale and liabilities related to assets held for
sale have been classified as current if the Company has signed
agreements where such assets are expected to be disposed of within
one year. 8. Research and Development Three months Six months to
April 30 to April 30
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2007 2006 2007 2006
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Gross expenditures $ 16 $ 12 $ 29 $ 25 Investment tax credits (1)
(4) (2) (5) Recoveries from partners (6) (6) (11) (12) Development
costs deferred (2) (1) (4) (2)
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Research and development expense $ 7 $ 1 $ 12 $ 6
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For the three months ended April 30, 2007 depreciation and
amortization includes $1 million (2006 - $2 million) related to
equipment used for research and development, and $3 million from
amortization of deferred development costs (2006 - $3 million). 9.
Restructuring Charges An analysis of the activity in the provision
through April 30, 2007 is as follows: Cumulative drawdowns
Provision ------------------------ Balance at Restructuring April
30, Charge Cash Non-cash 2007
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2005: Workforce reductions $ 34 $ (32) $ (1) $ 1 Equipment and
other asset write-downs - adjustment 7 - (7) - Contract
cancellation charges 10 (2) (8) -
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$ 51 $ (34) $ (16) $ 1
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2006: Workforce reductions $ 1 $ (1) $ - $ - Contract cancellation
charges (8) (1) 9 -
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$ (7) $ (2) $ 9 $ -
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2007: Workforce reductions $ 19 $ (3) $ - $ 16 Equipment and other
asset write-downs 5 - (3) 2 Contract cancellation charges 5 (5) - -
Other 12 (5) (2) 5
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$ 41 $ (13) $ (5) $ 23
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$ 24
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During the quarter ended April 30, 2007, management of the Company
approved a restructuring plan designed principally to improve the
profitability of MDS Pharma Services. The Company recorded a
restructuring provision of $28 million in the quarter including $17
million for severance, $5 million to reduce the carrying value of
certain assets and $6 million for other costs. 10. Earnings Per
Share a) Dilution Three months to Six months to April 30 April 30
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(number of shares in millions) 2007 2006 2007 2006
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Weighted average number of Common shares outstanding - basic 137
143 141 143 Impact of stock options assumed exercised 1 1 - 1
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Weighted average number of Common shares outstanding - diluted 138
144 141 144
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b) Pro-Forma Impact of Stock-Based Compensation Compensation
expense related to the fair value of stock options granted prior to
November 1, 2003 is excluded from the determination of net income
and is, instead, calculated and disclosed on a pro-forma basis in
the notes to the consolidated financial statements. Compensation
expense for purposes of these pro-forma disclosures is determined
in accordance with a methodology prescribed in CICA Handbook
Section 3870 "Stock-Based Compensation and Other Stock-Based
Payments". The Company used the Black-Scholes option valuation
model to estimate the fair value of options granted. For purposes
of these pro-forma disclosures, the Company's net income and basic
and diluted earnings per share would have been: Three months to Six
months to April 30 April 30
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2007 2006 2007 2006
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Net income $ 736 $ 14 $ 750 $ 61 Compensation expense for options
granted prior to November 1, 2003 (1) - (1) (1)
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Net income - pro-forma $ 735 $ 14 $ 749 $ 60
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Pro-forma basic earnings per share $ 5.35 $ 0.10 $ 5.32 $ 0.43
Pro-forma diluted earnings per share $ 5.34 $ 0.10 $ 5.30 $ 0.43
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c) Stock Options During the quarter, the Company granted 280,500
options (2006 - 49,700) at an average exercise price of C$21.84
(2006 - C$19.72). These options have a fair value determined using
the Black-Scholes model of C$4.62 per share (2006 - C$4.39) based
on the following assumptions: 2007 2006
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Risk-free interest rate 3.9 % 3.9 % Expected dividend yield 0.0 %
0.7 % Expected volatility 0.22 0.23 Expected time to exercise
(years) 3.25 3.25
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11. Other Income (Expense) - Net Three months to Six months to
April 30 April 30
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2007 2006 2007 2006
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Write-down of other long-term assets $ - $ - $ - $ (1) Write-down
of investments (6) - (6) - Gain on sale of investment - - 2 - Loss
on sale of Hamburg clinic (4) - (4) - Gain on sale of business 1 -
1 - Acquisition integration costs (1) - (1) - FDA Provision (61) -
(61) - Unrealized gain (loss) on interest rate swaps 1 (2) - (2)
MAPLE settlement 3 (9) 3 (9)
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Other income (expense) - net $ (67) $ (11) $ (66) $ (12)
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12. Post-Employment Obligations The Company sponsors various
post-employment benefit plans including defined benefit and
contribution pension plans, retirement compensation arrangements,
and plans that provide extended health care coverage to retired
employees. All defined benefit pension plans sponsored by the
Company are funded plans. Other post-employment benefits are
unfunded. During 2005, the Company amended the terms of certain
post-employment plans such that effective January 1, 2008, and
subject to certain transitional conditions, newly retired employees
will no longer be entitled to extended health care benefits. The
post-employment obligation expense for the quarter was $1 million
(2006 - $1 million). 13. Supplementary Cash Flow Information
Non-cash items affecting net income comprise: Three months to Six
months to April 30 April 30
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2007 2006 2007 2006
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Depreciation and amor- tization $ 20 $ 16 $ 37 $ 29 Stock option
compensation - 1 1 3 Deferred revenue - (2) (2) (5) Future income
taxes 48 (7) 46 (9) Equity earnings - net of distribution - 7 - 7
Write-down of MAPLE assets - 9 - 9 Write-down of investments 6 - 6
- Loss on sale of Hamburg clinic 4 - 4 - Equipment and other asset
write-downs 5 - 5 - Gain on dilution of investment - - (2) - Other
(1) (4) - (2)
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$ 82 $ 20 $ 95 $ 32
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Changes in non-cash working capital balances relating to operations
include: Three months to Six months to April 30 April 30
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2007 2006 2007 2006
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Accounts receivable $ (1) $ (40) $ 15 $ (4) Unbilled revenue 27
(37) 11 (29) Inventories (2) 40 (6) 38 Prepaid expenses and other
37 8 10 (5) Accounts payable and deferred revenue 59 23 49 (54)
Income taxes (22) (4) (9) 1
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$ 98 $ (10) $ 70 $ (53)
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14. Segmented Information Three months to April 30, 2007
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MDS MDS Pharma MDS Analytical Corporate Services Nordion
Technologies and Other Total
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Net revenues $ 115 $ 70 $ 88 $ - $ 273 Cost of revenues (78) (37)
(49) - (164) Selling, general and administration (34) (12) (14) (7)
(67) Research and development - - (7) - (7) Depreciation and
amortization (9) (3) (7) (1) (20) Restructuring charges - net (26)
- - (2) (28) Other income (expense) - net (65) 4 (1) (5) (67)
Equity earnings (loss) - - - - -
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Operating income (loss) $ (97) $ 22 $ 10 $ (15) $ (80)
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Total assets $ 827 $ 659 $ 851 $ 435 $ 2,772
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Capital expenditures $ 5 $ 1 $ 2 $ 1 $ 9
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Three months to April 30, 2006
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MDS MDS Pharma MDS Analytical Corporate Services Nordion
Technologies and Other Total
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Net revenues $ 113 $ 72 $ 57 $ - $ 242 Cost of revenues (80) (37)
(33) - (150) Selling, general and administration (29) (13) (4) (10)
(56) Research and development - - (1) - (1) Depreciation and
amortization (7) (4) (5) - (16) Restructuring charges - net (1) - -
- (1) Other income (expense) - net - (9) - (2) (11) Equity earnings
(loss) (1) - - (4) (5)
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Operating income (loss) $ (5) $ 9 $ 14 $ (16) $ 2
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Total assets $ 790 $ 661 $ 168 $ 499 $ 2,118
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Capital expenditures $ 7 $ (10) $ 2 $ 1 $ -
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Six months to April 30, 2007
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MDS MDS Pharma MDS Analytical Corporate Services Nordion
Technologies and Other Total
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Net revenues $ 236 $ 137 $ 150 $ - $ 523 Cost of revenues (166)
(71) (87) - (324) Selling, general and administration (66) (23)
(19) (12) (120) Research and development - (1) (11) - (12)
Depreciation and amortization (18) (6) (12) (1) (37) Restructuring
charges - net (34) - - (7) (41) Other income (expense) - net (65) 4
(1) (4) (66) Equity earnings (loss) - - - - -
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Operating income (loss) $ (113) $ 40 $ 20 $ (24) $ (77)
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Capital expenditures $ 7 $ 2 $ 5 $ 3 $ 17
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Six months to April 30, 2006
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MDS MDS Pharma MDS Analytical Corporate Services Nordion
Technologies and Other Total
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Net revenues $ 224 $ 142 $ 118 $ - $ 484 Cost of revenues (159)
(71) (71) - (301) Selling, general and administration (58) (24) (7)
(16) (105) Research and development - (1) (5) - (6) Depreciation
and amortization (14) (7) (8) - (29) Restructuring charges - net -
- - (2) (2) Other income (expense) - net - (9) - (3) (12) Equity
earnings (loss) (1) - - (3) (4)
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Operating income (loss) $ (8) $ 30 $ 27 $ (24) $ 25
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Capital expenditures $ 14 $ - $ 3 $ 5 $ 22
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15. Financial Instruments The carrying amounts and fair values for
all derivative financial instruments are as follows: As at April 30
As at April 30
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2007 2006
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Carrying Fair Carrying Fair Amount Value Amount Value
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Asset (liability) position: Currency forward and option - asset $ 4
$ 4 $ 2 $ 8 Currency forward and option - liabilities $ - $ - $ - $
(1) Interest rate swap and option contracts $ (2) $ (2) $ (4) $ (4)
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As of April 30, 2007, the Company had outstanding foreign exchange
contracts in place to sell US$90 million at a weighted average
exchange rate of C$1.1541 maturing over the next ten months. The
Company also had interest rate swap contracts that convert a
notional amount of US$80 million of debt from a fixed to a floating
interest rate. Foreign exchange options and interest rate swaps not
eligible for hedge accounting are included in accounts payable and
are marked to market each period. 16. Income Taxes A reconciliation
of expected income taxes to the reported income tax recovery is
provided below. The Company's tax recovery for the quarter was
lower than expected as portions of the restructuring charge related
to foreign jurisdictions where full valuation allowances have been
recorded against existing tax assets. In addition, the Company was
unable to recognize any tax benefit on the Hamburg clinic loss or
valuation provision recorded this quarter. Three months to April 30
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2007 2006
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Expected income tax expense (recovery) at MDS's 35% (2006 - 35%)
statutory rate $ (27) $ - Increase (decrease) to taxes expense as a
result of: Foreign tax losses not recognized 4 - Valuation
provision on MDS Capital Corp. 2 - Loss on sale of Hamburg clinic 1
- Other (1) 1
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Reported income tax expense (recovery) $ (21) $ 1
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17. Differences Between Canadian and United States Generally
Accepted Accounting Principles The consolidated financial
statements have been prepared in accordance with Canadian GAAP. The
principles adopted in these financial statements conform in all
material respects to those of US GAAP except as summarized below.
Significant differences between Canadian and US GAAP would have the
following effect on net income of the Company: Three months to Six
months to April 30 April 30
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2007 2006 2007 2006
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Net income (loss) from continuing operations in accordance with
Canadian GAAP $ (57) $ (2) $ (59) $ 12 US GAAP adjustments: -
Deferred development costs (1) (1) (2) (1) Deferred development
costs written off 3 - 3 - In-process research and development (11)
- (11) - Reduction in income tax expense arising from GAAP
adjustments 5 - 5
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Net income (loss) from continuing operations in accordance with US
GAAP (61) (3) (64) 11 Income from discontinued operations in
accordance with Canadian and US GAAP - net of tax 793 16 809 49
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Net income in accordance with US GAAP $ 732 $ 13 $ 745 $ 60
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Basic earnings (loss) per share in accordance with US GAAP - from
continuing operations $ (0.45) $ (0.02) $ (0.45) $ 0.08 - from
discontinued operations 5.77 0.11 5.74 0.34
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Basic earnings per share $ 5.32 $ 0.09 $ 5.29 $ 0.42
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Diluted earnings (loss) per share in accordance with US GAAP - from
continuing operations $ (0.44) $ (0.02) $ (0.45) $ 0.08 - from
discontinued operations 5.75 0.11 5.73 0.34
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Diluted earnings per share $ 5.31 $ 0.09 $ 5.28 $ 0.42
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18. Comparative Figures All comparative financial information has
been restated to reflect the Company's results as if they had been
historically reported in US dollars. Certain figures for the
previous year have been reclassified to conform to the current
year's financial statement presentation. In addition, segmented
information for 2006 has been revised to reflect the discontinued
operations reported. DATASOURCE: MDS Inc. CONTACT: PRNewswire - -
06/07/2007
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