(20) Supplemental Guarantor Condensed Consolidating Financials

The Company’s Senior Notes issued in August 2012 are fully and unconditionally and jointly and severally guaranteed by Hologic, Inc. (“Parent/Issuer”) and each of its domestic subsidiaries. The following represents the supplemental condensed financial information of Hologic, Inc. and its guarantor and non-guarantor subsidiaries, as of December 29, 2012 and September 29, 2012 and for the three months ended December 29, 2012 and December 24, 2011.

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

December 29, 2012


	Parent/Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	280,938	$	343,192	$	94,341	$	—		$	718,471
Restricted cash		—		—		2,094		—			2,094
Accounts receivable, net		97,922		184,137		123,647		(53	)		405,653
Inventories		75,623		199,736		70,416		(466	)		345,309
Deferred income tax assets		—		6,755		620		(7,375	)		—
Prepaid income taxes		10,352		40,317		638		—			51,307
Prepaid expenses and other current assets		21,389		11,795		12,766		—			45,950
Intercompany receivables		—		2,128,022		56,282		(2,184,304	)		—
Other current assets – assets held-for-sale		—		68,381		23,071		—			91,452

Total current assets		486,224		2,982,335		383,875		(2,192,198	)		1,660,236

Property and equipment, net		26,978		374,634		102,459		—			504,071
Intangible assets, net		22,050		4,062,809		110,679		—			4,195,538
Goodwill		279,957		3,521,565		139,908		—			3,941,430
Other assets		117,548		49,934		1,303		(1,505	)		167,280
Investment in subsidiaries		9,849,931		117,447		2,296		(9,969,674	)		—

Total assets	$	10,782,688	$	11,108,724	$	740,520	$	(12,163,377	)	$	10,468,555


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	26,320	$	39,548	$	10,499	$	—		$	76,367
Accrued expenses		319,073		71,485		46,157		(432	)		436,283
Deferred revenue		89,362		9,260		22,530		—			121,152
Current portion of long-term debt		798,937		—		—		—			798,937
Deferred income tax liabilities		118,986		—		—		(7,375	)		111,611
Intercompany payables		2,112,961		—		79,556		(2,192,517	)		—
Other current liabilities – assets held-for-sale		—		6,299		1,104		—			7,403

Total current liabilities		3,465,639		126,592		159,846		(2,200,324	)		1,551,753

Long-term debt, net of current portion		4,237,085		—		—		—			4,237,085
Deferred income tax liabilities		51,763		1,513,605		10,896		208			1,576,472
Deferred service obligations – long-term		7,763		2,077		9,047		(2,447	)		16,440
Other long-term liabilities		36,062		32,788		34,989		(1,410	)		102,429

Total liabilities		7,798,312		1,675,062		214,778		(2,203,973	)		7,484,179
Total stockholders’ equity		2,984,376		9,433,662		525,742		(9,959,404	)		2,984,376

Total liabilities and stockholders’ equity	$	10,782,688	$	11,108,724	$	740,520	$	(12,163,377	)	$	10,468,555

SUPPLEMENTAL CONDENSED CONSOLIDATING BALANCE SHEET

September 29, 2012


	Parent/Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	210,028	$	269,416	$	80,986	$	—		$	560,430
Restricted cash		—		—		5,696		—			5,696
Accounts receivable, net		101,538		192,349		115,522		(76	)		409,333
Inventories		74,500		223,043		70,180		(532	)		367,191
Deferred income tax assets		13,578		—		617		(2,480	)		11,715
Prepaid income taxes		20,805		48,429		611		—			69,845
Prepaid expenses and other current assets		18,817		12,816		12,668		—			44,301
Intercompany receivables		—		2,094,017		55,761		(2,149,778	)		—
Other current assets – assets held-for-sale		—		67,878		26,625		—			94,503

Total current assets		439,266		2,907,948		368,666		(2,152,866	)		1,563,014

Property and equipment, net		26,928		379,702		101,368		—			507,998
Intangible assets, net		24,034		4,162,930		114,286		—			4,301,250
Goodwill		279,956		3,522,474		140,349		—			3,942,779
Other assets		112,339		49,036		2,406		(1,714	)		162,067
Investments in subsidiaries		9,782,940		101,615		2,296		(9,886,851	)		—

Total assets	$	10,665,463	$	11,123,705	$	729,371	$	(12,041,431	)	$	10,477,108


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	29,847	$	43,339	$	14,037	$	—		$	87,223
Accrued expenses		238,387		86,566		50,052		(2,624	)		372,381
Deferred revenue		92,234		10,307		27,147		—			129,688
Current portion of long-term debt		64,435		—		—		—			64,435
Intercompany payables		2,085,339		6,655		66,335		(2,158,329	)		—
Other current liabilities – assets held-for-sale		—		5,520		2,102		—			7,622

Total current liabilities		2,510,242		152,387		159,673		(2,160,953	)		661,349

Long-term debt, net of current portion		4,971,179		—		—		—			4,971,179
Deferred income tax liabilities		180,916		1,581,833		8,836		—			1,771,585
Deferred service obligations – long-term		7,536		1,160		7,601		(2,583	)		13,714
Other long-term liabilities		34,559		30,587		34,504		(1,400	)		98,250

Total liabilities		7,704,432		1,765,967		210,614		(2,164,936	)		7,516,077
Total stockholders’ equity		2,961,031		9,357,738		518,757		(9,876,495	)		2,961,031

Total liabilities and stockholders’ equity	$	10,665,463	$	11,123,705	$	729,371	$	(12,041,431	)	$	10,477,108

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Three Months Ended December 29, 2012


	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Product sales	$	98,043		$	379,771		$	133,075		$	(75,687	)	$	535,202
Service and other revenues		77,960			21,141			9,872			(12,813	)		96,160

		176,003			400,912			142,947			(88,500	)		631,362

Costs and expenses:
Cost of product sales		53,520			163,895			81,765			(75,687	)		223,493
Cost of product sales – amortization of intangible assets		1,306			72,917			1,064			—			75,287
Cost of service and other revenues		38,378			15,591			9,753			(12,813	)		50,909
Research and development		7,418			41,753			2,338			—			51,509
Selling and marketing		20,773			47,365			26,305			—			94,443
General and administrative		15,320			31,016			8,055			—			54,391
Amortization of intangible assets		678			26,649			1,199			—			28,526
Contingent consideration – compensation expense		29,486			—			—			—			29,486
Contingent consideration – fair value adjustments		10,040			—			—			—			10,040
Gain on sale of intellectual property, net		—			(53,884	)		—			—			(53,884	)
Restructuring charges		221			3,286			426			—			3,933

		177,140			348,588			130,905			(88,500	)		568,133

Income from operations		(1,137	)		52,324			12,042			—			63,229
Investment and interest income		131			42			87			—			260
Interest expense		(71,254	)		(314	)		(513	)		—			(72,081	)
Other income (expense), net		119			(4,046	)		5,180			(14	)		1,239

(Loss) income before income taxes		(72,141	)		48,006			16,796			(14	)		(7,353	)
(Benefit) provision for income taxes		(11,747	)		(3,114	)		4,390			—			(10,471	)
Equity in earnings (losses) of subsidiaries		63,512			10,934			—			(74,446	)		—

Net income (loss)	$	3,118		$	62,054		$	12,406		$	(74,460	)	$	3,118

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three Months Ended December 24, 2011


	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues:
Product sales	$	105,761		$	250,448		$	102,534		$	(66,647	)	$	392,096
Service and other revenues		73,428			14,526			7,262			(14,601	)		80,615

		179,189			264,974			109,796			(81,248	)		472,711

Costs and expenses:
Cost of product sales		53,690			80,721			64,180			(66,647	)		131,944
Cost of product sales – amortization of intangible assets		1,305			42,910			1,956			—			46,171
Cost of service and other revenues		39,235			13,730			6,862			(14,601	)		45,226
Research and development		7,244			18,130			2,968			—			28,342
Selling and marketing		16,497			42,246			18,717			—			77,460
General and administrative		13,020			24,190			9,285			—			46,495
Amortization of intangible assets		677			13,859			306			—			14,842
Contingent consideration – compensation expense		10,441			—			—			—			10,441
Contingent consideration – fair value adjustments		5,122			—			—			—			5,122
Restructuring charges		—			—			(91	)		—			(91	)

		147,231			235,786			104,183			(81,248	)		405,952

Income from operations		31,958			29,188			5,613			—			66,759
Investment and interest income		578			46			38			—			662
Interest expense		(28,709	)		(327	)		(473	)		—			(29,509	)
Other income, net		1,464			21			507			—			1,992

Income before income taxes		5,291			28,928			5,685			—			39,904
Provision for income taxes		6,209			8,571			4,312			—			19,092
Equity in earnings (losses) of subsidiaries		21,730			3,390			557			(25,677	)		—

Net income (loss)	$	20,812		$	23,747		$	1,930		$	(25,677	)	$	20,812

SUPPLEMENTAL CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

For the Three Months Ended December 29, 2012


	Parent/Issuer		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	3,118	$	62,054		$	12,406	$	(74,460	)	$	3,118
Change in cumulative translation adjustment		—		577			1,392		—			1,969
Unrealized loss on available-for-sale security		—		(557	)		—		—			(557	)

Comprehensive income (loss)	$	3,118	$	62,074		$	13,798	$	(74,460	)	$	4,530

For the Three Months Ended December 24, 2011


	Parent/Issuer		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	20,812	$	23,747		$	1,930		$	(25,677	)	$	20,812
Change in cumulative translation adjustment		36		(188	)		(206	)		—			(358	)

Comprehensive income (loss)	$	20,848	$	23,559		$	1,724		$	(25,677	)	$	20,454

CONSOLIDATING STATEMENT OF CASH FLOWS

For the Three Months Ended December 29, 2012


	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
OPERATING ACTIVITIES
Net cash provided by operating activities	$	112,839		$	30,075		$	12,111		$	—	$	155,025

INVESTING ACTIVITIES
Payment of additional acquisition consideration		(16,808	)		—			—			—		(16,808	)
Proceeds from sale of business, net		—						1,488			—		1,488
Proceeds from sale of intellectual property		—			60,000			—			—		60,000
Purchase of property and equipment		(2,887	)		(6,037	)		(2,309	)		—		(11,233	)
Increase in equipment under customer usage agreements		(286	)		(7,172	)		(3,756	)		—		(11,214	)
Purchase of insurance contracts		(4,000	)		—			—			—		(4,000	)
Purchase of cost-method investments		(3,400	)		(225	)		—			—		(3,625	)
(Increase) decrease in other assets		(1,967	)		(478	)		3,589			—		1,144

Net cash provided by (used in) investing activities		(29,348	)		46,088			(988	)		—		15,752

FINANCING ACTIVITIES
Repayment of long-term debt		(16,250	)		—			—			—		(16,250	)
Payment of contingent consideration		(3,408	)		—			—			—		(3,408	)
Net proceeds from issuance of common stock pursuant to employee stock plans		12,777			—			—			—		12,777
Excess tax benefit related to equity awards		2,185			—			—			—		2,185
Payment of employee restricted stock minimum tax withholdings		(7,885	)		—			—			—		(7,885	)

Net cash used in financing activities		(12,581	)		—			—			—		(12,581	)
Effect of exchange rate changes on cash and cash equivalents		—			(2,387	)		2,232			—		(155	)

Net increase in cash and cash equivalents		70,910			73,776			13,355			—		158,041
Cash and cash equivalents, beginning of period		210,028			269,416			80,986			—		560,430

Cash and cash equivalents, end of period	$	280,938		$	343,192		$	94,341		$	—	$	718,471

CONSOLIDATING STATEMENT OF CASH FLOWS

For the Three Months Ended December 24, 2011


	Parent/Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
OPERATING ACTIVITIES
Net cash provided by (used in) operating activities	$	108,796		$	7,101		$	(4,166	)	$	—	$	111,731

INVESTING ACTIVITIES
Payment of additional acquisition consideration		(9,784	)		—			—			—		(9,784	)
Purchase of property and equipment		(3,799	)		(1,500	)		(1,491	)		—		(6,790	)
Increase in equipment under customer usage agreements		—			(5,558	)		(2,328	)		—		(7,886	)
Purchase of cost-method investment		—			(150	)		—			—		(150	)
Decrease in restricted cash		—			—			9			—		9

Net cash used in investing activities		(13,583	)		(7,208	)		(3,810	)		—		(24,601	)

FINANCING ACTIVITIES
Payment of contingent consideration		(4,105	)		—			—			—		(4,105	)
Net proceeds from issuance of common stock pursuant to employee stock plans		1,627			—			—			—		1,627
Excess tax benefit related to equity awards		1,725			—			—			—		1,725
Payment of employee restricted stock minimum tax withholdings		(5,561	)		—			—			—		(5,561	)

Net cash used in financing activities		(6,314	)		—			—			—		(6,314	)
Effect of exchange rate changes on cash and cash equivalents		—			107			(173	)		—		(66	)

Net increase (decrease) in cash and cash equivalents		88,899			—			(8,149	)		—		80,750
Cash and cash equivalents, beginning of period		644,697			—			67,635			—		712,332

Cash and cash equivalents, end of period	$	733,596		$	—		$	59,486		$	—	$	793,082