SEGMENTED INFORMATION

6 Months Ended

Jun. 30, 2012

SEGMENTED INFORMATION

SEGMENTED INFORMATION

17.SEGMENTED INFORMATION

As at June 30, 2012, the Successor Company had two reportable segments based on the type of revenue generated: (i) Medical Device Products and (2) Licensed Technologies. The Medical Device Products segment includes revenues and gross margins of single use, specialty medical devices including suture needles, biopsy needles / devices, micro surgical ophthalmic knives, drainage catheters, self-anchoring sutures, other specialty devices, biomaterials and other technologies. The Licensed Technologies segment includes royalty revenue generated from out-licensing technology related to the drug-eluting stent and other technologies.

The Successor Company and Predecessor Company reports segmented information on each of these segments to the gross margin level. All other income and expenses are not allocated to segments as they are not considered in evaluating the segment’s operating performance. The following tables represent reportable segment information for the three and six months ended June 30, 2012; the two months ended June 30, 2011; and the one and four month ended April 30, 2011:

	Successor Company						Predecessor Company
	Three months ended June 30,			Two months ended June 30,			One month ended April 30,
	2012			2011			2011
Revenue
Medical Device Products	$	56,523		$	35,902		$	16,365
Licensed Technologies	4,815			1,068			5,309
Total revenue	61,338			36,970			21,674
Cost of products sold — Medical Device Technologies	27,322			26,934			8,291
Licence and royalty fees — Licensed Technologies	63			50			—
Gross margin
Medical Device Technologies	29,201			8,968			8,074
Licensed Technologies	4,752			1,018			5,309
Total gross margin	33,953			9,986			13,383
Research and development	2,423			2,829			1,156
Selling, general and administration	17,784			12,781			6,191
Depreciation and amortization	8,428			5,690			3,088
Write-down of assets held for sale	—			—			570
Write-down of property, plant and equipment	692			—			—
Operating income (loss)	4,626			(11,314		)	2,378
Other expenses	(3,920		)	(2,428		)	(2,573		)
Loss before reorganization items and income taxes	706			(13,742		)	(195		)
Reorganization items	—			—			329,826
Gain on extinguishment of debt and settlement of other liabilities	—			—			67,307
Loss before income taxes	706			(13,742		)	396,938
Income tax expense (recovery)	3,654			506			(581		)
Net income (loss)	$	(2,948	)	$	(14,248	)	$	397,519

	Successor Company						Predecessor Company
	Six months ended June 30,			Two months ended June 30,			Four months ended April 30,
	2012			2011			2011
Revenue
Medical Device Products	$	111,147		$	35,902		$	69,198
Licensed Technologies	10,742			1,068			11,068
Total revenue	121,889			36,970			80,266
Cost of products sold — Medical Device Technologies	52,006			26,934			32,219
Licence and royalty fees — Licensed Technologies	174			50			68
Gross margin
Medical Device Technologies	59,141			8,968			36,979
Licensed Technologies	10,568			1,018			11,000
Total gross margin	69,709			9,986			47,979
Research and development	4,408			2,829			5,686
Selling, general and administration	35,431			12,781			24,846
Depreciation and amortization	17,451			5,690			14,329
Write-down of assets held for sale	—			—			570
Write-down of property, plant and equipment	865			—			215
Operating income (loss)	11,554			(11,314		)	2,333
Other expenses	(8,061		)	(2,428		)	(10,939		)
Loss before reorganization items and income taxes	3,493			(13,742		)	(8,606		)
Reorganization items	—			—			321,084
Gain on extinguishment of debt and settlement of other liabilities	—			—			67,307
Loss before income taxes	3,493			(13,742		)	379,785
Income tax expense (recovery)	6,440			506			267
Net income (loss)	$	(2,947	)	$	(14,248	)	$	379,518

During the three and six months ended June 30, 2012, revenue from BSC represented approximately 6% and 7% of total revenue, respectively. During the two months ended June 30, 2011 and the one and four months ended April 30, 2011, royalty revenue from BSC represented approximately 0%, 24% and 12% of total revenue

The following table represents total assets for each reportable segment at June 30, 2012 and December 31, 2011:

	Successor Company
	June 30,		December 31,
	2012		2011
Total assets
Medical Device Products	$	548,329	$	522,120
Licensed Technologies	77,687		85,986
Total assets	$	626,016	$	608,106

The following tables present capital expenditures for each reportable segment during the three and six months ended June 30, 2012; the two months ended June 30, 2011; and the one and four months ended April 30, 2011:

	Successor Company				Predecessor Company
	Three months ended June 30,		Two months ended June 30,		One month ended April 30,
	2012		2011		2011
Capital expenditures
Medical Device Products	$	480	$	288	$	113
Licensed Technologies	—		97		29
Total capital expenditures	$	480	$	385	$	142

	Successor Company				Predecessor Company
	Six months ended June 30,		Two months ended June 30,		Four months ended April 30,
	2012		2011		2011
Capital expenditures
Medical Device Products	$	892	$	288	$	621
Licensed Technologies	—		97		324
Total capital expenditures	$	892	$	385	$	945