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EXHIBIT 1
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MANAGEMENT’S RESPONSIBILITY FOR CONSOLIDATED FINANCIAL STATEMENTS Management of ATI Technologies Inc. is responsible for the integrity of the accompanying Consolidated Financial Statements and all other information in this Annual Report. The Consolidated Financial Statements have been prepared by Management in accordance with accounting principles generally accepted in Canada. The preparation of the Consolidated Financial Statements necessarily involves the use of estimates and careful judgment, particularly in those circumstances where transactions affecting a current period are dependent upon future events. All financial information presented in this Annual Report is consistent with the Consolidated Financial Statements. To discharge its responsibilities for financial reporting and safeguarding of assets, Management believes that it has established appropriate systems of internal accounting controls that provide reasonable assurance that the financial records are reliable and form a proper basis for the timely and accurate preparation of financial statements. Consistent with the concept of reasonable assurance, Management recognizes that the relative cost of maintaining these controls should not exceed their expected benefits. Management further ensures the quality of the financial records through careful selection and training of personnel and the adoption and communication of financial and other relevant policies. The Board of Directors discharges its responsibilities with respect to the Consolidated Financial Statements primarily through the activities of its Audit Committee, which is composed entirely of directors who are not employees of the Company. This committee meets quarterly with Management and at least twice annually with the Company’s independent auditors to review the Company’s reported financial performance and to discuss audit, internal control, accounting policy and financial reporting matters. The Consolidated Financial Statements were reviewed by the Audit Committee and approved by the Board of Directors. The financial statements have been audited by KPMG LLP, who were appointed by the shareholders at the last Annual General Meeting of Shareholders. Their report is presented herein. | ![]() |
K.Y. Ho (signed) | David E. Orton (signed) President and COO | Terry Nickerson (signed) Senior Vice President and CFO | ![]() |
AUDITORS’ REPORT TO THE SHAREHOLDERS We have audited the consolidated balance sheets of ATI Technologies Inc. as at August 31, 2003 and 2002 and the consolidated statements of operations and retained earnings and cash flows for each of the years in the three-year period ended August 31, 2003. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance 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. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these Consolidated Financial Statements present fairly, in all material respects, the financial position of the Company as at August 31, 2003 and 2002 and the results of its operations and its cash flows for each of the years in the three-year period ended August 31, 2003 in accordance with Canadian generally accepted accounting principles.
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Page 51 of 134
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Years ended August 31 (In thousands of U.S. dollars, except per share amounts) | 2003 | ![]() | 2002 | 2001 | |||||||||
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | (Restated) | (Restated) | |||||||||||
REVENUES | $ | 1,385,293 | ![]() | $ | 1,015,779 | $ | 1,040,365 | ||||||
Cost of goods sold | 952,001 | ![]() | 682,385 | 799,038 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Gross margin | 433,292 | ![]() | 333,394 | 241,327 | |||||||||
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EXPENSES | ![]() | ||||||||||||
![]() | 96,925 | ![]() | 77,920 | 75,594 | |||||||||
![]() | 212,976 | ![]() | 164,609 | 149,465 | |||||||||
![]() | 39,413 | ![]() | 35,662 | 37,261 | |||||||||
![]() | ![]() | ||||||||||||
![]() | 10,767 | ![]() | 97,501 | 114,507 | |||||||||
![]() | 28,724 | ![]() | – | – | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
388,805 | ![]() | 375,692 | 376,827 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Income (loss) from operations | 44,487 | ![]() | (42,298 | ) | (135,500 | ) | |||||||
Interest and other income, net (note 7) | 4,382 | ![]() | 732 | 64,131 | |||||||||
Interest expense (note 10) | (1,899 | ) | ![]() | (659 | ) | (1,180 | ) | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Income (loss) before income taxes | 46,970 | ![]() | (42,225 | ) | (72,549 | ) | |||||||
Income taxes (recovery) (note 12) | 11,741 | ![]() | 6,854 | (18,760 | ) | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
NET INCOME (LOSS) | 35,229 | ![]() | (49,079 | ) | (53,789 | ) | |||||||
RETAINED EARNINGS, beginning of year | 68,797 | ![]() | 117,876 | 199,956 | |||||||||
Adjustment to opening retained earnings: | ![]() | ||||||||||||
![]() | – | ![]() | – | (2,651 | ) | ||||||||
![]() | – | ![]() | – | (25,640 | ) | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
– | ![]() | – | (28,291 | ) | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Retained earnings, end of year | $ | 104,026 | ![]() | $ | 68,797 | $ | 117,876 | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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NET INCOME (LOSS) PER SHARE (note 13): | ![]() | ||||||||||||
![]() | $ | 0.15 | ![]() | $ | (0.21 | ) | $ | (0.23 | ) | ||||
![]() | 0.14 | ![]() | (0.21 | ) | (0.23 | ) | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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WEIGHTED AVERAGE NUMBER OF SHARES (000’s) | ![]() | ||||||||||||
![]() | 238,251 | ![]() | 234,895 | 230,880 | |||||||||
![]() | 244,353 | ![]() | 234,895 | 230,880 | |||||||||
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See accompanying notes to Consolidated Financial Statements. | ![]() |
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Page 52 of 134
CONSOLIDATED BALANCE SHEETS | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
August 31 (In thousands of U.S. dollars) | 2003 | ![]() | 2002 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | (Restated) | ||||||||||||
ASSETS | ![]() | ||||||||||||
Current assets: | ![]() | ||||||||||||
![]() | $ | 300,905 | ![]() | $ | 187,126 | ||||||||
![]() | 49,784 | ![]() | 49,801 | ||||||||||
![]() | 234,548 | ![]() | 141,126 | ||||||||||
![]() | 176,494 | ![]() | 192,121 | ||||||||||
![]() | 31,753 | ![]() | 21,806 | ||||||||||
![]() | 3,772 | ![]() | 3,630 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | 797,256 | ![]() | 595,610 | ||||||||||
Capital assets (note 4) | 86,890 | ![]() | 95,838 | ||||||||||
Intangible assets (note 6) | 8,811 | ![]() | 21,858 | ||||||||||
Goodwill (note 6) | 190,095 | ![]() | 187,815 | ||||||||||
Long-term investments (note 7) | 3,960 | ![]() | 7,405 | ||||||||||
Tax credits recoverable | 21,181 | ![]() | – | ||||||||||
Future income taxes (note 12) | 7,865 | ![]() | 844 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Total assets | $ | 1,116,058 | ![]() | $ | 909,370 | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ![]() | ||||||||||||
Current liabilities: | ![]() | ||||||||||||
![]() | $ | – | ![]() | $ | 12,015 | ||||||||
![]() | 191,196 | ![]() | 172,093 | ||||||||||
![]() | 136,709 | ![]() | 49,421 | ||||||||||
![]() | 37,669 | ![]() | 250 | ||||||||||
![]() | 1,394 | ![]() | 568 | ||||||||||
![]() | – | ![]() | 3,459 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | 366,968 | ![]() | 237,806 | ||||||||||
Long-term debt (note 10) | 28,073 | ![]() | 15,798 | ||||||||||
Future income taxes (note 12) | 21,408 | ![]() | 12,588 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Total liabilities | 416,449 | ![]() | 266,192 | ||||||||||
Shareholders’ equity (note 11): | ![]() | ||||||||||||
![]() | ![]() | ||||||||||||
![]() | ![]() | ||||||||||||
![]() | ![]() | ||||||||||||
![]() | ![]() | ||||||||||||
![]() | ![]() | ||||||||||||
![]() | 582,454 | ![]() | 561,477 | ||||||||||
![]() | 4,855 | ![]() | 4,630 | ||||||||||
![]() | 104,026 | ![]() | 68,797 | ||||||||||
![]() | 8,274 | ![]() | 8,274 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | 699,609 | ![]() | 643,178 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Total liabilities and shareholders’ equity | $ | 1,116,058 | ![]() | $ | 909,370 | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
On behalf of the Board:
| ![]() |
K.Y. Ho (signed) | James D. Fleck (signed) Director | ![]() |
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Page 53 of 134
CONSOLIDATED STATEMENTS OF CASH FLOWS | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Years ended August 31 (In thousands of U.S. dollars) | 2003 | ![]() | 2002 | 2001 | |||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | (Restated) | (Restated) | |||||||||||
CASH PROVIDED BY (USED IN): | ![]() | ||||||||||||
Operating activities: | ![]() | ||||||||||||
![]() | $ | 35,229 | ![]() | $ | (49,079 | ) | $ | (53,789 | ) | ||||
![]() | ![]() | ||||||||||||
![]() | (21,181 | ) | ![]() | – | – | ||||||||
![]() | (1,802 | ) | ![]() | 1,223 | (18,430 | ) | |||||||
![]() | 34,705 | ![]() | 120,422 | 135,462 | |||||||||
![]() | 1,400 | ![]() | – | – | |||||||||
![]() | (3,876 | ) | ![]() | 3,355 | (61,216 | ) | |||||||
![]() | 3,637 | ![]() | 620 | 431 | |||||||||
![]() | ![]() | ||||||||||||
![]() | (93,422 | ) | ![]() | (23,109 | ) | 42,854 | |||||||
![]() | 15,627 | ![]() | (80,203 | ) | 145,670 | ||||||||
![]() | (8,678 | ) | ![]() | (678 | ) | 12,487 | |||||||
![]() | 19,103 | ![]() | 91,916 | (104,189 | ) | ||||||||
![]() | 87,288 | ![]() | 1,662 | 686 | |||||||||
![]() | 37,419 | ![]() | (104 | ) | (3,304 | ) | |||||||
![]() | – | ![]() | (9,083 | ) | 5,281 | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
105,449 | ![]() | 56,942 | 101,943 | ||||||||||
Financing activities: | ![]() | ||||||||||||
![]() | (12,015 | ) | ![]() | 3,266 | 8,749 | ||||||||
![]() | 10,709 | ![]() | – | – | |||||||||
![]() | (1,064 | ) | ![]() | (312 | ) | – | |||||||
![]() | (1,365 | ) | ![]() | – | – | ||||||||
![]() | 20,977 | ![]() | 12,495 | 4,687 | |||||||||
![]() | 225 | ![]() | 362 | – | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
17,467 | ![]() | 15,811 | 13,436 | ||||||||||
Investing activities: | ![]() | ||||||||||||
![]() | (49,784 | ) | ![]() | (54,233 | ) | (45,000 | ) | ||||||
![]() | 49,649 | ![]() | 49,584 | 4,403 | |||||||||
![]() | (16,390 | ) | ![]() | (30,111 | ) | (31,091 | ) | ||||||
![]() | (2,460 | ) | ![]() | – | (2,500 | ) | |||||||
![]() | 10,029 | ![]() | – | 65,061 | |||||||||
![]() | – | ![]() | (22,118 | ) | (9,201 | ) | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
(8,956 | ) | ![]() | (56,878 | ) | (18,328 | ) | |||||||
Foreign exchange loss on cash held in foreign currency | (181 | ) | ![]() | (204 | ) | (431 | ) | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
INCREASE IN CASH AND CASH EQUIVALENTS | 113,779 | ![]() | 15,671 | 96,620 | |||||||||
CASH AND CASH EQUIVALENTS, beginning of year | 187,126 | ![]() | 171,455 | 74,835 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
CASH AND CASH EQUIVALENTS, end of year | 300,905 | ![]() | 187,126 | 171,455 | |||||||||
Short-term investments | 49,784 | ![]() | 49,801 | 45,000 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
CASH POSITION, end of year | $ | 350,689 | ![]() | $ | 236,927 | $ | 216,455 | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Supplemental cash flow information (note 19) See accompanying notes to Consolidated Financial Statements. | ![]() |
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Page 54 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The principal business activities of ATI Technologies Inc. (the “Company“) are the design, manufacture and sale of innovative 3D graphics and digital media silicon solutions. The Company markets its products to original equipment manufacturers, system builders, distributors and retailers primarily in North America, Europe and the Asia-Pacific region.
NOTE 1. (b) | ![]() |
![]() | ||||||
![]() | Asset | ![]() | Method | ![]() | Rate | ![]() |
![]() | ||||||
![]() | ||||||
![]() | ||||||
![]() | Building | ![]() | Diminishing balance | ![]() | 5% | ![]() |
![]() | Building under capital lease | ![]() | Straight line | ![]() | 15 years | ![]() |
![]() | Laboratory and computer equipment | ![]() | Diminishing balance/straight line | ![]() | 331/3%/over one to five years | ![]() |
![]() | Computer software | ![]() | Diminishing balance/straight line | ![]() | 50%/over two to three years | ![]() |
![]() | Production equipment | ![]() | Diminishing balance/straight line | ![]() | 20%/over one year | ![]() |
![]() | Office equipment | ![]() | Diminishing balance/straight line | ![]() | 20%/over three years | ![]() |
![]() | Leasehold improvements | ![]() | Straight line | ![]() | Over term of lease | ![]() |
![]() | ||||||
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Page 55 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
In connection with Section 3062’s transitional goodwill impairment evaluation, the Company is required to assess whether goodwill is impaired as of September 1, 2002. The Company has completed the transitional goodwill impairment assessment during the second quarter of 2003 and has determined that no impairment existed as of September 1, 2002. | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | (Restated) | (Restated) | |||||||||||
Net income (loss) | $ | 35,229 | ![]() | $ | (49,079 | ) | $ | (53,789 | ) | ||||
Add back goodwill amortization | – | ![]() | 74,014 | 76,284 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Income before goodwill amortization | $ | 35,229 | ![]() | $ | 24,935 | $ | 22,495 | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Basic net income (loss) per share: | ![]() | ||||||||||||
![]() | $ | 0.15 | ![]() | $ | (0.21 | ) | $ | (0.23 | ) | ||||
![]() | 0.15 | ![]() | 0.11 | 0.10 | |||||||||
Diluted net income (loss) per share: | ![]() | ||||||||||||
![]() | $ | 0.14 | ![]() | $ | (0.21 | ) | $ | (0.23 | ) | ||||
![]() | 0.14 | ![]() | 0.10 | 0.09 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Purchased in-process research and development | 1 year | ||||||||||||
Core technology | 2 – 7 years | ||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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The Company regularly reviews the carrying values of its long-term investments. Should there be a decline in value of the Company’s long-term investments that is other than a temporary decline, the Company measures the amount of the write-down based on the fair value of the shares of the investee and charges such write-down to the consolidated statements of operations and retained earnings. |
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Page 56 of 134
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Page 57 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
Company has applied the pro forma disclosure provisions of the new standard to awards granted on or after September 1, 2002. No restatement of prior periods was required as a result of the adoption of the new standard. Consideration paid by employees on the exercise of stock options is recorded as share capital. See note 11 for the pro forma disclosure, as required by this standard. | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | 2002 | 2001 | |||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | Revenues: | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||
![]() | ![]() | $ | 1,021,722 | $ | 1,037,809 | ||||||||
![]() | ![]() | 1,015,779 | 1,040,365 | ||||||||||
Net loss for the year: | ![]() | ||||||||||||
![]() | ![]() | (47,465 | ) | (54,205 | ) | ||||||||
![]() | ![]() | (49,079 | ) | (53,789 | ) | ||||||||
Net loss per share: | ![]() | ||||||||||||
![]() | ![]() | ||||||||||||
![]() ![]() | ![]() | (0.20 | ) | (0.23 | ) | ||||||||
![]() ![]() | ![]() | (0.21 | ) | (0.23 | ) | ||||||||
![]() | ![]() | ||||||||||||
![]() ![]() | ![]() | (0.20 | ) | (0.23 | ) | ||||||||
![]() ![]() | ![]() | (0.21 | ) | (0.23 | ) | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() |
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Page 58 of 134
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Page 59 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
The carrying amounts of cash equivalents, short-term investments, accounts receivable, sundry receivables, bank indebtedness and accounts payable and accrued liabilities approximate their fair market values because of the short-term nature of these instruments. | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | ||||||||
![]() | ![]() | ![]() | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||||
Raw materials | $ | 153,240 | ![]() | $ | 127,683 | |||||
Work in process | 7,110 | ![]() | 25,603 | |||||||
Finished goods | 16,144 | ![]() | 38,835 | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
$ | 176,494 | ![]() | $ | 192,121 | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | Cost | ![]() | Accumulated depreciation | Net book value | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Land | $ | 1,909 | ![]() | $ | – | $ | 1,909 | ||||||
Building | 13,572 | ![]() | 4,020 | 9,552 | |||||||||
Building under capital lease | 33,268 | ![]() | 3,140 | 30,128 | |||||||||
Laboratory and computer equipment | 66,350 | ![]() | 40,334 | 26,016 | |||||||||
Computer software | 23,736 | ![]() | 18,645 | 5,091 | |||||||||
Production equipment | 2,745 | ![]() | 1,551 | 1,194 | |||||||||
Office equipment | 8,835 | ![]() | 3,593 | 5,242 | |||||||||
Leasehold improvements | 10,759 | ![]() | 3,001 | 7,758 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
$ | 161,174 | ![]() | $ | 74,284 | $ | 86,890 | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2002 | Cost | ![]() | Accumulated depreciation | Net book value | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Land | $ | 1,909 | ![]() | $ | – | $ | 1,909 | ||||||
Building | 8,353 | ![]() | 2,320 | 6,033 | |||||||||
Building under capital lease | 33,268 | ![]() | 924 | 32,344 | |||||||||
Laboratory and computer equipment | 77,711 | ![]() | 47,758 | 29,953 | |||||||||
Computer software | 34,645 | ![]() | 25,603 | 9,042 | |||||||||
Production equipment | 6,355 | ![]() | 3,977 | 2,378 | |||||||||
Office equipment | 8,983 | ![]() | 3,235 | 5,748 | |||||||||
Leasehold improvements | 9,591 | ![]() | 1,160 | 8,431 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
$ | 180,815 | ![]() | $ | 84,977 | $ | 95,838 | |||||||
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Page 60 of 134
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Net assets: | |||||||||||||
![]() | $ | 538 | |||||||||||
![]() | 899 | ||||||||||||
![]() | 59 | ||||||||||||
![]() | 5,300 | ||||||||||||
![]() | 9,200 | ||||||||||||
![]() | 4,678 | ||||||||||||
![]() | (459 | ) | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Cash consideration | $ | 20,215 | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Purchased in-process R&D | 1 year | ||||||||||||
Core technology | 2 – 5 years | ||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Inventories | $ | 3,528 | |||||||||||
Capital assets | 200 | ||||||||||||
Prepayments | 68 | ||||||||||||
Core technology | 7,473 | ||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Cash consideration | $ | 11,269 | |||||||||||
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Page 61 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
NOTE 6. | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | Cost | ![]() | Accumulated amortization | Net book value | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Purchased in-process R&D | $ | 56,250 | ![]() | $ | 56,250 | $ | – | ||||||
Core technology | 31,144 | ![]() | 22,333 | 8,811 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Total intangible assets | $ | 87,394 | ![]() | $ | 78,583 | $ | 8,811 | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Goodwill | $ | 376,788 | ![]() | $ | 186,693 | $ | 190,095 | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2002 | Cost | ![]() | Accumulated amortization | Net book value | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Purchased in-process R&D | $ | 56,250 | ![]() | $ | 51,833 | $ | 4,417 | ||||||
Workforce | 4,400 | ![]() | 2,120 | 2,280 | |||||||||
Core technology | 31,144 | ![]() | 15,983 | 15,161 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Total intangible assets | $ | 91,794 | ![]() | $ | 69,936 | $ | 21,858 | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Goodwill | $ | 372,388 | ![]() | $ | 184,573 | $ | 187,815 | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Goodwill: | ![]() | ||||||||||||
![]() | $ | – | ![]() | $ | 73,134 | $ | 75,404 | ||||||
![]() | – | ![]() | 10,319 | – | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
– | ![]() | 83,453 | 75,404 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Intangible assets: | ![]() | ||||||||||||
![]() | 10,767 | ![]() | 8,963 | 34,592 | |||||||||
![]() | – | ![]() | 5,085 | 4,511 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
10,767 | ![]() | 14,048 | 39,103 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
$ | 10,767 | ![]() | $ | 97,501 | $ | 114,507 | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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| ![]() |
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2003 | ![]() | 2002 | ||||||||||
![]() | ![]() | ![]() | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Share investments | $ | 3,960 | ![]() | ![]() | ![]() | $ | 7,405 | ![]() | ||||
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Page 62 of 134
NOTE 10. | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||
Interest rate | 2003 | ![]() | 2002 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
Obligation under capital lease (a) | 6.31 | % | $ | 17,785 | ![]() | ![]() | ![]() | $ | 16,366 | ![]() | |||
Mortgage payable (b) | 6.96 | % | 11,682 | ![]() | ![]() | ![]() | – | ![]() | |||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
![]() | ![]() | ![]() | |||||||||||
29,467 | ![]() | ![]() | ![]() | 16,366 | ![]() | ||||||||
Less current portion | 1,394 | ![]() | ![]() | ![]() | 568 | ![]() | |||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
$ | 28,073 | ![]() | ![]() | ![]() | $ | 15,798 | ![]() | ||||||
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Page 63 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
(c) | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
Year ended August 31: | ![]() | ||||||||||
2004 | ![]() | $ | 3,277 | ||||||||
2005 | ![]() | 3,277 | |||||||||
2006 | ![]() | 3,277 | |||||||||
2007 | ![]() | 3,351 | |||||||||
2008 | ![]() | 3,455 | |||||||||
Thereafter through 2017 | ![]() | 27,155 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Total minimum lease payments | ![]() | 43,792 | |||||||||
Less amount representing interest | ![]() | 14,325 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Present value of net minimum payments on long-term debt | ![]() | 29,467 | |||||||||
Less current portion of long-term debt | ![]() | 1,394 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | $ | 28,073 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | Number | Amount | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Outstanding, August 31, 2000 | ![]() | 229,436,267 | $ | 557,044 | |||||||||
Issued for cash | ![]() | 2,767,962 | 4,687 | ||||||||||
Cancellation of shares | ![]() | (85,555 | ) | (10,514 | ) | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Outstanding, August 31, 2001 | ![]() | 232,118,674 | 551,217 | ||||||||||
Issued for cash | ![]() | 4,828,136 | 12,495 | ||||||||||
Cancellation of shares | ![]() | (76,125 | ) | (2,235 | ) | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Outstanding, August 31, 2002 | ![]() | 236,870,685 | 561,477 | ||||||||||
Issued for cash | ![]() | 4,871,428 | 20,977 | ||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Outstanding, August 31, 2003 | ![]() | 241,742,113 | $ | 582,454 | |||||||||
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Page 64 of 134
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||
2003 | ![]() | 2002 | 2001 | |||||||||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
Number of options outstanding | Weighted average price | ![]() | Number of options outstanding | Weighted average price | Number of options outstanding | Weighted average price | ||||||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||
Options outstanding, | ![]() | |||||||||||||||||||||
![]() | 32,813,005 | $ | 7.18 | ![]() | 29,109,372 | $ | 5.37 | 24,823,960 | $ | 5.77 | ||||||||||||
Grant of additional options | 907,550 | 4.89 | ![]() | 9,881,474 | 10.40 | 11,148,703 | 5.32 | |||||||||||||||
Cancellation of options | (1,117,276 | ) | 9.03 | ![]() | (1,349,705 | ) | 7.76 | (4,095,329 | ) | 8.31 | ||||||||||||
Exercise of options | (4,871,428 | ) | 4.10 | ![]() | (4,828,136 | ) | 2.60 | (2,767,962 | ) | 1.68 | ||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||
Options outstanding, end of year | 27,731,851 | 8.31 | ![]() | 32,813,005 | 7.18 | 29,109,372 | 5.37 | |||||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||
Exercisable, end of year | 15,727,485 | $ | 8.35 | ![]() | 12,608,053 | $ | 6.54 | 9,960,010 | $ | 4.77 | ||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |||
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Price range | ![]() | Number of options outstanding | Weighted average life (years) | Weighted average price | Number of options exercisable | Weighted average price | ||||||||||
![]() | ![]() ![]() | ![]() | ||||||||||||||
![]() | ![]() | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
$ 0.09 – $ 0.93 | 2,697,554 | 6.15 | $ | 0.32 | 2,275,191 | $ | 0.32 | |||||||||
$ 3.94 – $ 5.87 | 7,691,866 | 4.72 | 4.99 | 3,477,156 | 5.04 | |||||||||||
$ 6.14 – $ 9.21 | 7,634,869 | 4.23 | 7.91 | 4,359,216 | 8.52 | |||||||||||
$ 9.56 – $13.89 | 4,723,508 | 4.06 | 11.79 | 2,588,895 | 11.45 | |||||||||||
$14.75 – $16.88 | 4,984,054 | 3.90 | 15.11 | 3,057,027 | 15.25 | |||||||||||
![]() | ![]() | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() ![]() | ![]() | ||||||||||||||
![]() | ![]() | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
27,731,851 | 4.47 | $ | 8.31 | 15,727,485 | $ | 8.35 | ||||||||||
![]() | ![]() | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() ![]() | ![]() | ||||||||||||||
![]() | ![]() | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Page 65 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Net income, as reported | ![]() | $ | 35,299 | ||||||||
Pro forma adjustment for stock-based compensation | ![]() | (525 | ) | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Pro forma net income | ![]() | $ | 34,704 | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Pro forma net income per share: | ![]() | ||||||||||
![]() | ![]() | $ | 0.15 | ||||||||
![]() | ![]() | 0.14 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Risk-free interest rate | ![]() | 3.1 | % | ||||||||
Dividend yield | ![]() | 0.0 | % | ||||||||
Volatility factor of the expected market price of the Company’s common shares | ![]() | 71.1 | % | ||||||||
Weighted average expected life of the options | ![]() | 4.2 years | ![]() | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Income (loss) before income taxes: | ![]() | ![]() | |||||||||||
![]() | $ | 2,081 | ![]() | ![]() | $ | 978 | ![]() | $ | (14,393 | ) | |||
![]() | 44,889 | ![]() | ![]() | (43,203 | ) | (58,156 | ) | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Income (loss) before income taxes | $ | 46,970 | ![]() | ![]() | $ | (42,225 | ) | $ | (72,549 | ) | |||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Page 66 of 134
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Current: | ![]() | ![]() | |||||||||||
![]() | $ | 9,572 | ![]() | ![]() | $ | (875 | )![]() | $ | – | ||||
![]() | 3,971 | ![]() | ![]() | 6,506 | (330 | ) | |||||||
Future: | ![]() | ![]() | |||||||||||
![]() | 2,234 | ![]() | ![]() | 4,747 | ![]() | (4,202 | ) | ||||||
![]() | (4,036 | ) | ![]() | ![]() | (3,524 | ) | (14,228 | ) | |||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Income tax expense (recovery) | $ | 11,741 | ![]() | ![]() | $ | 6,854 | $ | (18,760 | ) | ||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||
2003 | ![]() | 2002 | |||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
FUTURE INCOME TAXES | ![]() | ![]() | ![]() | ![]() | |||||||||
Assets: | ![]() | ![]() | ![]() | ![]() | |||||||||
![]() | $ | 981 | ![]() | ![]() | ![]() | $ | 913 | ![]() | |||||
![]() | 5,111 | ![]() | ![]() | ![]() | 6,639 | ![]() | |||||||
![]() | 40,490 | ![]() | ![]() | ![]() | 37,007 | ![]() | |||||||
![]() | 4,650 | ![]() | ![]() | ![]() | 201 | ![]() | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
![]() | 51,232 | ![]() | ![]() | ![]() | 44,760 | ![]() | |||||||
![]() | (39,595 | )![]() | ![]() | ![]() | (40,286 | ) | |||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
![]() | 11,637 | ![]() | ![]() | ![]() | 4,474 | ![]() | |||||||
Liabilities: | ![]() | ![]() | ![]() | ![]() | |||||||||
![]() | 9,323 | ![]() | ![]() | ![]() | 7,370 | ![]() | |||||||
![]() | 11,241 | ![]() | ![]() | ![]() | 6,154 | ![]() | |||||||
![]() | 844 | ![]() | ![]() | ![]() | 2,523 | ![]() | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
![]() | 21,408 | ![]() | ![]() | ![]() | 16,047 | ![]() | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
$ | (9,771 | )![]() | ![]() | ![]() | $ | (11,573 | ) | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Income (loss) before income taxes | $ | 46,970 | ![]() | ![]() | $ | (42,225 | ) | $ | (72,549 | ) | |||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Income taxes (recovery) at Canadian rates | $ | 17,379 | ![]() | ![]() | $ | (16,641 | ) | $ | (30,920 | ) | |||
Reduction of Canadian taxes applicable to | ![]() | ![]() | |||||||||||
![]() | (83 | ) | ![]() | ![]() | (54 | )![]() | 1,067 | ||||||
Tax effect of: | ![]() | ![]() | |||||||||||
![]() | – | ![]() | ![]() | 31,696 | 32,248 | ||||||||
![]() | (2,076 | ) | ![]() | ![]() | (1,733 | )![]() | (1,696 | ) | |||||
![]() | – | ![]() | ![]() | 1,022 | (26,487 | ) | |||||||
![]() | (7,238 | ) | ![]() | ![]() | (4,421 | ) | 100 | ||||||
![]() | ![]() | ![]() | |||||||||||
![]() | (691 | ) | ![]() | ![]() | (4,501 | ) | 13,942 | ||||||
![]() | 4,450 | ![]() | ![]() | 1,486 | (7,014 | ) | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
$ | 11,741 | ![]() | ![]() | $ | 6,854 | $ | (18,760 | ) | |||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Page 67 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.) Years ended August 31, 2003, 2002 and 2001 (Tabular amounts in thousands of U.S. dollars, except per share amounts)
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Net income (loss) | $ | 35,299 | ![]() | ![]() | $ | (49,079 | ) | $ | (53,789 | ) | |||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Weighted average number of common shares outstanding (000’s): | ![]() | ![]() | |||||||||||
![]() | 238,251 | ![]() | ![]() | 234,895 | 230,880 | ||||||||
![]() | 6,102 | ![]() | ![]() | – | ![]() | – | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | 244,353 | ![]() | ![]() | 234,895 | 230,880 | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Net income (loss) per share: | ![]() | ![]() | |||||||||||
![]() | $ | 0.15 | ![]() | ![]() | $ | (0.21 | ) | $ | (0.23 | ) | |||
![]() | 0.14 | ![]() | ![]() | (0.21 | )![]() | (0.23 | ) | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Page 68 of 134
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Settlement of class action lawsuits (a) | ![]() | $ | 4,670 | ||||||||
Regulatory matters (b) | ![]() | 5,828 | |||||||||
Restructuring charge – European operations (c) | ![]() | 6,542 | |||||||||
Lease exit charge (d) | ![]() | 2,684 | |||||||||
Settlement of patent litigation with Cirrus Logic, Inc. (e) | ![]() | 9,000 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | $ | 28,724 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
During the fourth quarter of fiscal 2003, the Company received $3.3 million from its insurer as its contribution towards the settlement. The Company has incurred external charges in connection with the matter totaling $5.8 million during the year ended August 31, 2003. | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Provision | ![]() | $ | 5,142 | ||||||||
Cash payments | ![]() | (896 | ) | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Balance, August 31, 2003 | ![]() | $ | 4,246 | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Page 69 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Exit and other costs | ![]() | $ | 1,365 | ||||||||
Asset impairment (non-cash) | ![]() | 1,400 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | $ | 2,765 | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
| ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Revenues: | ![]() | ![]() | |||||||||||
![]() | $ | 20,065 | ![]() | ![]() | $ | 15,441 | $ | 23,380 | |||||
![]() | 258,545 | ![]() | ![]() | 290,575 | 325,742 | ||||||||
![]() | 113,193 | ![]() | ![]() | 154,712 | ![]() | 253,974 | |||||||
![]() | 993,490 | ![]() | ![]() | 555,051 | 437,269 | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Consolidated revenues | $ | 1,385,293 | ![]() | ![]() | $ | 1,015,779 | $ | 1,040,365 | |||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Page 70 of 134
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Revenues: | ![]() | ![]() | |||||||||||
![]() | $ | 962,735 | ![]() | ![]() | $ | 537,756 | $ | 477,164 | |||||
![]() | 397,533 | ![]() | ![]() | 450,008 | 554,528 | ||||||||
![]() | 25,025 | ![]() | ![]() | 28,015 | ![]() | 8,673 | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Consolidated revenues | $ | 1,385,293 | ![]() | ![]() | $ | 1,015,779 | $ | 1,040,365 | |||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Capital and intangible assets and goodwill: | ![]() | ![]() | |||||||||||
![]() | $ | 74,332 | ![]() | ![]() | $ | 78,842 | $ | 54,162 | |||||
![]() | 208,764 | ![]() | ![]() | 220,811 | 297,417 | ||||||||
![]() | 2,277 | ![]() | ![]() | 4,644 | ![]() | 5,071 | |||||||
![]() | 423 | ![]() | ![]() | 1,214 | 706 | ||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Consolidated capital and intangible assets and goodwill | $ | 285,796 | ![]() | ![]() | $ | 305,511 | $ | 357,356 | |||||
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Year ending August 31: | Office premises | License and royalty agreements | ![]() | Total | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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2004 | $ | 6,128 | $ | 16,366 | ![]() | $ | 22,494 | ||||
2005 | 6,766 | 13,725 | ![]() | 20,491 | |||||||
2006 | 6,847 | 2,819 | ![]() | 9,666 | |||||||
2007 | 6,207 | – | ![]() | 6,207 | |||||||
2008 | 6,252 | – | ![]() | 6,252 | |||||||
2009 and thereafter | 14,341 | – | ![]() | 14,341 | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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2003 | ![]() | 2002 | ||||||||
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | Condensed balance sheet information: | ![]() | ![]() | ![]() | ![]() | ![]() | ||||
![]() | $ | 1,548 | ![]() | $ | 391 | |||||
![]() | – | ![]() | (12,015 | ) | ||||||
![]() | (941 | ) | ![]() | (474 | ) | |||||
![]() | (10,969 | ) | ![]() | – | ||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Condensed cash flows: | ![]() | |||||||||
![]() | $ | (989 | ) | ![]() | $ | 3,266 | ||||
![]() | – | ![]() | (2,806 | ) | ||||||
![]() | 1,127 | ![]() | 93 | |||||||
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Page 71 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
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2003 | ![]() | 2002 | 2001 | ||||||||||
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Supplemental cash flow information: | ![]() | ![]() | |||||||||||
![]() | $ | 1,739 | ![]() | ![]() | $ | 573 | $ | 1,180 | |||||
![]() | 2,902 | ![]() | ![]() | 4,889 | 3,507 | ||||||||
![]() | 2,127 | ![]() | ![]() | 893 | ![]() | 1,500 | |||||||
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2003 | ![]() | 2002 | 2001 | ||||||||||
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Net income (loss) in accordance with Canadian GAAP | $ | 35,229 | ![]() | ![]() | $ | (49,079 | ) | $ | (53,789 | ) | |||
Write-off of purchased in-process R&D (a)(i) | – | ![]() | ![]() | (5,300 | ) | – | |||||||
Amortization of purchased in-process R&D (a)(i) | 4,417 | ![]() | ![]() | 883 | ![]() | 30,151 | |||||||
Goodwill amortization difference (a)(ii) | – | ![]() | ![]() | 7,941 | ![]() | 7,326 | |||||||
Stock compensation expenses (a)(iii), (a)(iv) | (25,486 | ) | ![]() | ![]() | 997 | ![]() | (1,694 | ) | |||||
Tax effect of stock options exercised (a)(vi) | (2,083 | ) | ![]() | ![]() | (1,868 | )![]() | (346 | ) | |||||
Loss on hedging transaction (a)(v) | 94 | ![]() | ![]() | (1,365 | )![]() | – | |||||||
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Net income (loss) in accordance with U.S. GAAP | $ | 12,171 | ![]() | ![]() | $ | (47,791 | ) | $ | (18,352 | ) | |||
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Net Income (loss) per share in accordance with U.S. GAAP: | ![]() | ![]() | |||||||||||
![]() | $ | 0.05 | ![]() | ![]() | $ | (0.20 | ) | $ | (0.08 | ) | |||
![]() | 0.05 | ![]() | ![]() | (0.20 | ) | (0.08 | ) | ||||||
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Weighted average number of shares (000’s) | ![]() | ![]() | |||||||||||
![]() | 238,251 | ![]() | ![]() | 234,895 | 230,880 | ||||||||
![]() | 244,353 | ![]() | ![]() | 234,895 | 230,880 | ||||||||
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Page 72 of 134
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2003 | ![]() | 2002 | 2001 | ||||||||||
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![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Net income (loss) in accordance with U.S. GAAP, | ![]() | ![]() | |||||||||||
![]() | $ | 12,171 | ![]() | ![]() | $ | (47,791 | ) | $ | (18,352 | ) | |||
Stock compensation (a)(iii) | 25,486 | ![]() | ![]() | (997 | ) | 1,694 | |||||||
Pro forma adjustment for SFAS 123 | (16,700 | ) | ![]() | ![]() | (17,000 | )![]() | (14,100 | ) | |||||
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Pro forma net income (loss) | $ | 20,957 | ![]() | ![]() | $ | (65,788 | ) | $ | (30,758 | ) | |||
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Pro forma net income (loss) per share: | ![]() | ![]() | |||||||||||
![]() | $ | 0.09 | ![]() | ![]() | $ | (0.28 | ) | $ | (0.13 | ) | |||
![]() | 0.09 | ![]() | ![]() | (0.28 | ) | (0.13 | ) | ||||||
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Page 73 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
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2003 | ![]() | 2002 | 2001 | ||||||||||
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Risk-free interest rate | 3.1 | % | ![]() | ![]() | 3.5 | % | 4.0 | % | |||||
Volatility factor | 71.1 | % | ![]() | ![]() | 73.0 | % | 50.0 | % | |||||
Weighted average expected life | 4.2 years | ![]() | ![]() | 4.0 years | 2.5 years | ||||||||
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For the purposes of reporting under U.S. GAAP, the tax benefit associated with deductible stock option compensation is treated as an increase in share capital. For reporting under Canadian GAAP, if compensation costs are not recorded, the income tax benefit is treated as a reduction to the income tax provision. | ![]() |
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2003 | ![]() | ![]() | ![]() | 2002 | ||||||||||||||||
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![]() | U.S. GAAP | ![]() | ![]() | Canadian GAAP | ![]() | Difference | ![]() | U.S. GAAP | Canadian GAAP | Difference | ||||||||||
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![]() | ![]() | ![]() | ||||||||||||||||||
![]() | (Restated) | (Restated) | ||||||||||||||||||
Assets: | ||||||||||||||||||||
![]() | ||||||||||||||||||||
![]() ![]() | $ | 30,482 | $ | 31,753 | $ | (1,271 | ) | $ | 21,806 | $ | 21,806 | $ | – | |||||||
![]() | 8,811 | 8,811 | – | 17,441 | 21,858 | (4,417 | ) | |||||||||||||
![]() | 170,367 | 190,095 | (19,728 | ) | 168,087 | 187,815 | (19,728 | ) | ||||||||||||
Liabilities and | ||||||||||||||||||||
![]() | ||||||||||||||||||||
![]() | 136,709 | 136,709 | – | 50,786 | 49,421 | 1,365 | ||||||||||||||
![]() | 563,461 | 582,454 | (18,993 | ) | 540,401 | 561,477 | (21,076 | ) | ||||||||||||
![]() | 31,038 | 4,855 | 26,183 | 5,327 | 4,630 | 697 | ||||||||||||||
![]() | 103,320 | 104,026 | (706 | ) | 91,149 | 68,797 | 22,352 | |||||||||||||
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![]() ![]() | (19,209 | ) | 8,274 | (27,483 | ) | (19,209 | ) | 8,274 | (27,483 | ) | ||||||||||
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Although the adoption of proportionate consolidation has no impact on net income or shareholders’ equity, it does increase assets, liabilities, revenues, expenses and cash flow from operations from those amounts otherwise reported under U.S. GAAP. This is not reflected in the table of certain balance sheet items disclosed above. |
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Page 74 of 134
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(1) | As at August 31, 2003, the consolidated accounts receivable provision for returns and doubtful accounts was approximately $12.3 million (2002 – $7.9 million). | ![]() | |
(2) | As at August 31, 2003, sales rebate payable represents 17% of total consolidated current liabilities (2002 – 7%). | ||
(3) | For the year ended August 31, 2003, the net foreign exchange gain was approximately $0.8 million (2002 – loss of $0.4 million; 2001 – loss of $1.9 million). |
FASB Statement of Financial Accounting Standards No. 130, “Reporting Comprehensive Income” (“SFAS 130”), requires disclosure of comprehensive income, which includes reported net income adjusted for other comprehensive income. Other comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. The following table presents comprehensive income (loss) and its components: | ![]() |
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
2003 | ![]() | 2002 | 2001 | ||||||||||
![]() | ![]() | ![]() | |||||||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
![]() | ![]() | (Restated) | (Restated) | ||||||||||
Net income (loss) in accordance with U.S. GAAP | $ | 12,171 | ![]() | ![]() | $ | (47,791 | ) | $ | (18,352 | ) | |||
Other comprehensive income (loss), net of tax: | ![]() | ![]() | |||||||||||
![]() | – | ![]() | ![]() | – | (4,159 | ) | |||||||
![]() | – | ![]() | ![]() | 510 | ![]() | (510 | ) | ||||||
![]() | – | ![]() | ![]() | 439 | ![]() | – | |||||||
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
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Comprehensive income (loss) | $ | 12,171 | ![]() | ![]() | $ | (46,842 | ) | $ | (23,021 | ) | |||
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(1) | U.S. GAAP requires investments in marketable securities available for sale to be recorded at market value and all unrealized holding gains and losses reflected in shareholders’ equity. Under Canadian GAAP, long-term investments are carried at historical cost with losses in value being recognized in income only when the loss in value is other than temporary and increases in value being recognized only when realized. | ![]() | |
(2) | During fiscal 2001, CVRH, the joint venture in which the Company has 50% ownership, entered into an interest rate swap contract (note 18), which was designated as a cash flow hedge for the interest rate risk applicable to its expected future mortgage requirement. Under Canadian GAAP, the hedging instrument is treated as an off-balance sheet item until it closes. Under U.S. GAAP, hedging instruments must be measured at fair value. The unrealized gain or loss arising from changes in fair value of the interest rate swap contract is recognized in other comprehensive income to the extent it is effective; the ineffective portion, if any, is reported in income currently. In the third quarter of fiscal 2002, the interest rate swap was deemed ineffective and reported in income since the actual closing date of the financing differed from the period covered by the interest rate swap. |
(c) ![]() (i) ![]() |
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Page 76 of 134
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONT.)
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