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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2011	Mar. 30, 2012	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	Lantheus Medical Imaging, Inc.
Entity Central Index Key	0001500157
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		1,000
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 40,607	$ 33,006
Accounts receivable, net	40,000	50,452
Inventory	14,765	20,117
Deferred tax assets	93	4,266
Other current assets	2,662	3,158
Total current assets	98,127	110,999
Property, plant and equipment, net	112,452	120,684
Capitalized software development costs	3,582	3,896
Intangibles, net	82,749	124,689
Goodwill	15,714	15,714
Deferred tax assets		78,312
Deferred financing costs	13,141	9,425
Due from parent	1,286
Other long-term assets	31,753	32,162
Total assets	358,804	495,881
Current liabilities
Accounts payable	22,010	24,528
Accrued expenses	20,949	18,605
Income tax payable	1,482	128
Deferred revenue	3,918	7,261
Total current liabilities	48,359	50,522
Asset retirement obligations	4,868	4,372
Long-term debt, net	398,629	250,000
Deferred tax liability	931	1,853
Deferred revenue		2,668
Other long-term liabilities	39,220	33,032
Total liabilities	492,007	342,447
Commitments and contingencies (see Notes 14 and 16)
Stockholder's (deficit) equity
Common stock ($0.001 par value, 10,000 shares authorized; 1 share issued and outstanding)
Additional paid-in capital	1,085	150,316
(Accumulated deficit) retained earnings	(134,659)	2,410
Accumulated other comprehensive income	371	708
Total stockholder's (deficit) equity	(133,203)	153,434
Total liabilities and stockholder's (deficit) equity	$ 358,804	$ 495,881

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2011	Dec. 31, 2010
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	10,000	10,000
Common stock, share issued	1	1
Common stock, share outstanding	1	1

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenues
Net product revenues	$ 345,762	$ 345,747	$ 352,303
License and other revenues	10,530	8,209	7,908
Total revenues	356,292	353,956	360,211
Cost of goods sold	255,466	204,006	184,844
Loss on firm purchase commitment	5,610
Total cost of goods sold	261,076	204,006	184,844
Gross profit	95,216	149,950	175,367
Operating expenses
General and administrative expenses	32,057	30,042	35,430
Sales and marketing expenses	38,689	45,384	42,337
Research and development expenses	40,945	45,130	44,631
Total operating expenses	111,691	120,556	122,398
Operating (loss) income	(16,475)	29,394	52,969
Interest expense	(37,658)	(20,395)	(13,458)
Loss on early extinguishment of debt		(3,057)
Interest income	333	179	73
Other income, net	1,429	1,314	2,720
(Loss) income before income taxes	(52,371)	7,435	42,304
Provision for income taxes	84,098	2,465	21,952
Net (loss) income	(136,469)	4,970	20,352
Foreign currency translation	(104)	1,150	1,303
Income tax expense related to items of other comprehensive (loss) income	(233)
Other comprehensive (loss) income	(337)	1,150	1,303
Total comprehensive (loss) income	$ (136,806)	$ 6,120	$ 21,655

Consolidated Statements of Stockholder's (Deficit) Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	(Accumulated Deficit) Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2008	$ 287,809		$ 246,768	$ 42,786	$ (1,745)
Balance (in shares) at Dec. 31, 2008		1
Increase (Decrease) in Stockholder's Equity
Net (loss) income	20,352			20,352
Other comprehensive income	1,303				1,303
Stock-based compensation	1,115		1,115
Balance at Dec. 31, 2009	310,579		247,883	63,138	(442)
Balance (in shares) at Dec. 31, 2009		1
Increase (Decrease) in Stockholder's Equity
Dividend paid to LMI Holdings (see Note 10)	(163,776)		(98,078)	(65,698)
Net (loss) income	4,970			4,970
Other comprehensive income	1,150				1,150
Stock-based compensation	511		511
Balance at Dec. 31, 2010	153,434		150,316	2,410	708
Balance (in shares) at Dec. 31, 2010		1
Increase (Decrease) in Stockholder's Equity
Dividend paid to LMI Holdings (see Note 10)	(150,000)		(149,400)	(600)
Net (loss) income	(136,469)			(136,469)
Other comprehensive income	(337)				(337)
Stock-based compensation	169		169
Balance at Dec. 31, 2011	$ (133,203)		$ 1,085	$ (134,659)	$ 371
Balance (in shares) at Dec. 31, 2011		1

- Definition

This element represents the amount of recognized equity-based compensation during the period, that is, the amount recognized as expense in the income statement (or as asset if compensation is capitalized). Alternate captions include the words "stock-based compensation".

+ References

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

This element represents Other Comprehensive Income or Loss, Net of Tax, for the period attributable to the parent entity. Includes deferred gains or losses on qualifying hedges, unrealized holding gains or losses on available-for-sale securities, minimum pension liability, and cumulative translation adjustment.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flow from operating activities
Net (loss) income	$ (136,469)	$ 4,970	$ 20,352
Adjustments to reconcile net (loss) income to cash flow from operating activities
Depreciation	12,915	11,377	10,865
Amortization	19,847	23,824	30,842
Impairment of intangible asset	23,474
Amortization of debt related costs	1,554	1,812	2,626
Write-off of deferred financing costs		2,278
Provision for bad debt	301
Provision for excess and obsolete inventory	29,432	13,814	4,125
Stock-based compensation	(969)	1,634	1,209
Deferred income taxes	81,330	(1,549)	10,826
Accretion of asset retirement obligations	496	435	378
Loss on disposal of long-lived assets	54	270
Loss on firm purchase commitment	5,610
Long-term income tax receivable	(1,122)	1,519	(942)
Long-term income tax payable and other long-term liabilities	1,533	556	3,325
Increase (decrease) in cash from operating assets and liabilities
Accounts receivable, net	9,466	(7,564)	28,023
Prepaid expenses and other current assets	626	(237)	5,480
Inventory	(22,293)	(27,209)	(10,595)
Due from parent	(614)
Deferred revenue	(5,995)	(151)	6,036
Accounts payable	(1,002)	3,227	(3,171)
Income tax payable	1,353	(1,325)	1,453
Accrued expenses and other liabilities	2,893	(1,364)	(15,049)
Cash provided by operating activities	22,420	26,317	95,783
Cash flows from investing activities
Capital expenditures	(7,694)	(8,335)	(8,856)
Acquisition of intangibles		(215)	(29,495)
Cash used in investing activities	(7,694)	(8,550)	(38,351)
Cash flows from financing activities
Proceeds from issuance of debt	152,250	250,000
Consent solicitation fee	(3,750)
Payment of term loan		(93,649)	(49,102)
Debt issuance costs	(5,491)	(10,125)
Proceeds from line of credit	10,000		28,000
Payments on line of credit	(10,000)		(28,000)
Payment of dividend	(150,000)	(163,776)
Cash used in financing activities	(6,991)	(17,550)	(49,102)
Effect of foreign exchange rate on cash	(134)	1,309	2,114
Increase in cash and cash equivalents	7,601	1,526	10,444
Cash and cash equivalents, beginning of year	33,006	31,480	21,036
Cash and cash equivalents, end of year	40,607	33,006	31,480
Supplemental disclosure of cash flow information
Interest paid	33,958	15,246	10,693
Income taxes paid / (refunded), net	$ (233)	$ 1,854	$ (2,318)

Description of Business

12 Months Ended

Dec. 31, 2011

Description of Business

Description of Business

1. Description of Business

Overview

The Company manufactures, markets, sells and distributes medical imaging products globally with operations in the United States (U.S.), Puerto Rico, Canada and Australia and distribution relationships in Europe, Asia Pacific and Latin America. The Company provides medical imaging products, primarily focused on cardiovascular diagnostic imaging, to nuclear physicians, cardiologists, radiologists, internal medicine physicians, independent delivery networks, group purchasing organizations and technologists/sonographers working in a variety of clinical settings.

The Company's principal products include:

•

DEFINITY—an ultrasound contrast agent;

•

Cardiolite—a myocardial perfusion imaging agent;

•

TechneLite—a generator that provides the radioisotope used to radiolabel Cardiolite and other radiopharmaceuticals.

In the U.S., the Company's nuclear imaging products are primarily distributed through radiopharmacy chains, with a small portion of the sales of these products also made through the Company's direct sales force to hospitals and clinics that maintain their own in-house radiopharmacies. In the U.S., sales of the Company's contrast agents are made through a direct sales force. Outside of the U.S., the Company owns five radiopharmacies in Canada and two radiopharmacies in each of Puerto Rico and Australia. The Company also maintains a direct sales force in each of these countries. In the rest of the world, the Company relies on third-party distributors to sell both nuclear imaging and contrast agent products.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Consolidation and Presentation

The financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business. The Company incurred a net loss of $136.5 million and an operating loss of $16.5 million during the year ended December 31, 2011. The Company currently relies on Ben Venue Laboratories ("BVL") as its sole source manufacturer for DEFINITY and Neurolite and as the primary manufacturer for the Cardiolite product supply. The delay of BVL in resuming full production of the Company's products represents a supply uncertainty to the Company's business. The Company has expedited a number of technology transfer programs to secure and qualify production of its BVL-manufactured products to alternate contract manufacturer sites. Currently, the Company is utilizing an alternate manufacturer for Cardiolite and has entered into a manufacturing and supply agreement with Jubilant HollisterStier ("JHS") for the manufacture of DEFINITY, which will ultimately replace BVL as the primary supplier of DEFINITY. During the first quarter of 2012, the Company implemented a reduction in force and other cost cutting measures in conjunction with business pressures resulting from the continuing BVL outage. As further described in Note 21, "Subsequent Events," the Company received a settlement payment of $30 million of cash from BVL in connection with the Settlement and Mutual Release Agreement the Company entered into with BVL in the first quarter of 2012. In addition, the Company may receive up to an additional $5 million of cash from BVL under the Transition Services Agreement based on the timing of BVL's delivery of LMI product. If BVL is not able to provide the Company adequate product supply for a further prolonged period of time, or the Company is not successful with the technology transfer programs in 2012, the Company will need to continue to implement expense reductions such as a delay of discretionary spending and other operating and strategic initiatives such as entering into potential partnering arrangements.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The more significant estimates reflected in the Company's consolidated financial statements include certain judgments regarding revenue recognition, goodwill and intangible asset valuation, inventory valuation, asset retirement obligations, income tax liabilities, deferred tax assets and liabilities, accrued expenses and stock-based compensation. Actual results could materially differ from those estimates or assumptions.

Revenue Recognition

The Company recognizes revenue when evidence of an arrangement exists, title has passed, the risks and rewards of ownership have transferred to the customer, the selling price is fixed or determinable, and collectability is reasonably assured. For transactions for which revenue recognition criteria have not yet been met, the respective amounts are recorded as deferred revenue until such point in time the criteria are met and revenue can be recognized. Revenue is recognized net of reserves, which consist of allowances for returns and allowances for rebates.

Revenue arrangements with multiple elements are divided into separate units of accounting if certain criteria are met, including whether the delivered element has stand-alone value to the customer. Supply or service transactions may involve the charge of a nonrefundable initial fee with subsequent periodic payments for future products or services. The up-front fees, even if nonrefundable, are earned (and revenue is recognized) as the products and/or services are delivered and performed over the term of the arrangement.

On January 1, 2009, LMI executed an amendment to a license and supply agreement (the "Agreement") with one of its customers, granting non-exclusive U.S. license and supply rights to the customer for the period from January 1, 2009 through December 31, 2012. Under the terms of the Agreement, the customer paid LMI $10.0 million in license fees; $8.0 million of which was received upon execution of the Agreement and $2.0 million of which was received in June 2009 upon delivery of a special license as defined in the Agreement. The Company's product sales under the Agreement are recognized in the same manner as its normal product sales. The Company is recognizing the license fees as revenue on a straight line basis over the term of the four-year Agreement. The Company recognized $2.5 million in fiscal years 2011, 2010, and 2009 in license fee revenue pursuant to the Agreement, and had deferred revenue of $2.5 million and $5.0 million as of December 31, 2011 and December 31, 2010, respectively, related to the Agreement. The $2.5 million of deferred revenue as of December 31, 2011 will be recognized as revenue in 2012.

In addition, the Company had other revenue of $8.0 million, $5.7 million and $5.4 million in fiscal years 2011, 2010 and 2009, respectively. Other revenue primarily represents contract manufacturing services related to one of the Company's products for one customer. The related costs are included in cost of goods sold.

In January 2010, the Company launched a new medical imaging product, Ablavar, which was acquired by the Company in April 2009. Because the Company has not determined that the price is fixed and determinable and due to the inability to reasonably estimate product returns, the Company deferred recognition of $1.0 million and $2.6 million of revenue at December 31, 2011 and 2010, respectively, relating to Ablavar shipments, associated with a distributor arrangement. The corresponding cost has been recorded as inventory as of December 31, 2011 and 2010. The Company is recognizing revenue and the related costs associated with this arrangement on the sell-through method.

Product Returns

The Company provides a reserve for its estimate of sales recorded for which the related products are expected to be returned. The Company does not typically accept product returns unless an over shipment or non-conforming shipment was provided to the customer, or if the product was defective. The Company adjusts its estimate of product returns if it becomes aware of other factors that it believes could significantly impact its expected returns, including product recalls. These factors include its estimate of actual and historical return rates for non-conforming product and open return requests. Historically, the Company's estimates of returns have reasonably estimated actual returns.

Distributor Relationships

Revenue for product sold to distributors is recognized at shipment, unless revenue recognition criteria have not been met. In such instances where collectibility cannot be determined or the selling price cannot be reasonably estimated until the distributor has sold through the goods, the Company defers such revenue until such time as the goods have been sold through to the end-user customer, or the selling price can be reasonably estimated based on history of transactions with such distributor.

Rebates and Allowances

Estimates for rebates and allowances represent the Company's estimated obligations under contractual arrangements with third parties. Rebate accruals and allowances are recorded in the same period the related revenue is recognized, resulting in a reduction to product revenue and the establishment of a liability which is included in accrued expenses in the accompanying consolidated balance sheets. These rebates result from performance-based offers that are primarily based on attaining contractually specified sales volumes and growth, Medicaid rebate programs for certain products, administration fees of group purchasing organizations and certain distributor related commissions. The calculation of the accrual for these rebates and allowances is based on an estimate of the third party's buying patterns and the resulting applicable contractual rebate or commission rate(s) to be earned over a contractual period.

The accrual for rebates and allowances was approximately $1.4 million and $0.9 million at December 31, 2011 and 2010, respectively.

Income Taxes

The Company accounts for income taxes using an asset and liability approach. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases of the Company's assets and liabilities. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax attributes are expected to be recovered or paid, and are adjusted for changes in tax rates and tax laws when changes are enacted.

Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required involves the weighing of both positive and negative evidence concerning both historical and prospective information with greater weight given to evidence that is objectively verifiable. A history of recent losses is negative evidence that is difficult to overcome with positive evidence. In evaluating prospective information there are four sources of taxable income: reversals of taxable temporary differences, items that can be carried back to prior tax years (such as net operating losses), pre-tax income, and tax planning strategies. Any tax planning strategies that are considered must be prudent and feasible, and would only be undertaken in order to avoid losing an operating loss carryforward. Adjustments to the deferred tax valuation allowances are made in the period when such assessments are made.

The Company accounts for uncertain tax positions using a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Differences between tax positions taken in a tax return and amounts recognized in the financial statements are recorded as adjustments to income taxes payable or receivable, or adjustments to deferred taxes, or both. The Company provides disclosure at the end of each annual reporting period on a tabular reconciliation of unrecognized tax benefits. The Company classifies interest and penalties within the provision for income taxes.

Cash and Cash Equivalents

Cash and cash equivalents include savings deposits, certificates of deposit and money market funds that have maturities of three months or less when purchased.

Accounts Receivable

Accounts receivable consist of amounts billed and currently due from customers. The Company maintains an allowance for doubtful accounts for estimated losses. In determining the allowance, consideration includes the probability of recoverability based on past experience and general economic factors. Certain accounts receivable may be fully reserved when specific collection issues are known to exist, such as pending bankruptcy. As of December 31, 2011 and 2010, the Company had allowances for doubtful accounts of approximately $0.5 million and $0.8 million, respectively.

Concentration of Risks and Limited Suppliers

Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of trade accounts receivable. The Company periodically reviews its accounts receivable for collectibility and provides for an allowance for doubtful accounts to the extent that amounts are not expected to be collected. The Company sells primarily to large national distributors, which in turn, may resell the Company's products. There were three customers that represented greater than 10% of the total net accounts receivable balance and net revenue, the majority of which is included in the U.S. segment.

	Accounts Receivable as of December 31,						Revenue for the year ended December 31,

	2011			2010			2011			2010			2009
Company A		16	%		23	%		27	%		27	%		30	%
Company B		9	%		13	%		8	%		15	%		13	%
Company C		10	%		9	%		11	%		12	%		10	%

The Company's cash and cash equivalents are maintained with various financial institutions.

The Company relies on certain materials used in its development and manufacturing processes, some of which are procured from only one or a few sources. The failure of one of these suppliers to deliver on schedule could delay or interrupt the manufacturing or commercialization process and thereby adversely affect the Company's operating results. In addition, a disruption in the commercial supply of, or a significant increase in, the cost of one of the Company's materials from these sources could have a material adverse effect on the Company's business, financial position and results of operations. In May 2009 until August 2010, Nordion, the Company's largest supplier of molybdenum-99 ("moly"), a key raw material in the Company's TechneLite® product, was affected by a nuclear reactor shutdown. The Company was not fully able to replace all of the quantity of supply it previously received from Nordion, which had a negative impact on the Company's results of operations.

The Company relies on BVL as its sole source manufacturer for DEFINITY, and Neurolite, and as its primary manufacturer for the Company's Cardiolite product supply. All the Company's products are manufactured by BVL within the South Complex of its Bedford, Ohio facility. In July 2010, BVL temporarily shut down the South Complex to upgrade the facility to meet certain regulatory requirements. In anticipation of this shutdown, BVL manufactured for the Company additional inventory of these products to meet the Company's expected needs during the shutdown period which was anticipated to end in March 2011. As the shutdown and re-inspection periods have been longer than anticipated by BVL and the Company, the Company could not meet all of the demand for certain products during the second half of 2011. The Company also procures Cardiolite from an alternate manufacturer which will mitigate to an extent the limited product supply from BVL. In February 2012, the Company entered into a five year manufacturing and supply agreement for DEFINITY with JHS and anticipates receiving DEFINITY from this source by the second half of 2012. Based on the Company's current projections, the Company believes that it will have sufficient DEFINITY inventory until early in the second quarter of 2012. The inventory of Neurolite previously supplied to the Company by BVL has now been exhausted. The Company is pursuing new manufacturing relationships to establish and secure additional long-term or alternative suppliers of DEFINITY, Cardiolite, and Neurolite. There can be no assurance that the Company will be successful in these efforts.

Cardiolite, DEFINITY and TechneLite, accounted for approximately 19%, 20% and 38%, respectively, of net product revenue for the year ended December 31, 2011, 22%, 17% and 34%, respectively, of net product revenue for the year ended December 31, 2010 and 34%, 12% and 32%, respectively, for the year ended December 31, 2009.

Inventory

Inventory includes material, direct labor and related manufacturing overhead, and is stated at the lower of cost or market on a first-in, first-out basis. The Company does have consignment arrangements with certain customers where the Company retains title and the risk of ownership of the inventory, which is included in the Company's inventory balance.

The Company assesses the recoverability of inventory to determine whether adjustments for excess and obsolete inventory are required. Inventory that is in excess of future requirements is written down to its estimated net realizable value based upon forecasted demand for its products. If actual demand is less favorable than what has been forecasted by management, additional inventory write-down may be required.

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Replacements of major units of property are capitalized and replaced properties are retired. Replacements of minor components of property and repair and maintenance costs are charged to expense as incurred. Depreciation is generally computed on a straight-line method based on the estimated useful lives of the related assets. The estimated useful lives of the major classes of depreciable assets are as follows:


Buildings		50 years
Land improvements		40 years
Machinery and equipment		3 - 20 years
Furniture and fixtures		15 years
Leasehold improvements		Lesser of lease term or 15 years

Upon retirement or other disposal of property, plant and equipment, the cost and related amount of accumulated depreciation are removed from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds is included in operating (loss) income.

Capitalized Software Development Costs

Certain costs to obtain internal use software for significant systems projects are capitalized and amortized over the estimated useful life of the software, which ranges from 3 to 5 years. Costs to obtain software for projects that are not significant are expensed as incurred. Capitalized software development costs, net of accumulated amortization, was $3.6 million and $3.9 million at December 31, 2011 and 2010, respectively. Approximately $1.1 million of software development costs were capitalized in the year ended December 31, 2011. Amortization expense related to the capitalized software was $1.4 million, $1.3 million and $1.2 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Goodwill, Intangibles and Long-Lived Assets

Goodwill is not amortized but the carrying value is tested annually for impairment at October 31 as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. The Company performs this test by comparing the fair value of the reporting unit containing goodwill to its carrying value, including goodwill. If the fair value exceeds the carrying value, goodwill is not impaired. If the carrying value exceeds the fair value, then the Company would calculate the potential impairment loss by comparing the implied fair value of goodwill with the carrying value of the goodwill. If the implied fair value of goodwill is less than the carrying value, then an impairment charge would be recorded. The Company calculates the fair value of its reporting units using the income approach which utilizes discounted forecasted future cash flows and the market approach which utilizes fair value multiples of comparable publicly traded companies. The discounted cash flows are based on the Company's most recent long-term financial projections and are discounted using a risk adjusted rate of return which is determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflects the risks associated with achieving future cash flows. The market approach is calculated using the guideline company method, where the Company uses market multiples derived from stock prices of companies engaged in the same or similar lines of business. A combination of the two methods is utilized to derive the fair value of the business in order to decrease the inherent risk associated with each model if used independently. If the fair value were to decline, the Company may be required to incur material charges relating to the impairment of goodwill. The Company did not identify any impairment in goodwill in 2011, 2010 or 2009. Goodwill is not deductible for tax purposes.

In addition, as a result of the continued supply challenges with BVL, the Company performed an interim impairment test of goodwill as of December 31, 2011. The analysis utilized the most recently available forecast information, which considered the potential impact of the continued supply challenges. The interim impairment test did not indicate that there was any impairment as of December 31, 2011.

The Company tests intangible and long-lived assets for recoverability whenever events or changes in circumstances suggest that the carrying value of an asset or group of assets may not be recoverable. The Company measures the recoverability of assets to be held and used by comparing the carrying amount of the asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment equals the amount by which the carrying amount of the assets exceeds the fair value of the assets. Any impairments are recorded as permanent reductions in the carrying amount of the assets. As a result of the continued supply challenges with BVL, the Company tested intangible and long-lived assets for recoverability as of December 31, 2011, which included the most recently available information as to BVL's return to service date and the technology transfer schedule for a certain product. The analysis indicated that there was no impairment as of December 31, 2011.

Intangible assets, consisting of patents, trademarks and customer relationships related to the Company's products are amortized in a method equivalent to the estimated utilization of the economic benefit of the asset, with weighted average useful lives ranging from 6 to 19 years. Trademarks and patents are amortized on a straight line basis and customer relationships are amortized on an accelerated basis.

Deferred Financing Costs

Debt issuance costs are capitalized and amortized to interest expense using the effective interest method. As of December 31, 2011 and 2010, the unamortized deferred financing costs were $13.1 million and $9.4 million, respectively. The expense associated with the amortization of deferred financing costs was $1.4 million, $1.8 million and $2.6 million for the years ended December 31, 2011, 2010 and 2009, respectively, and was included in interest expense. In connection with the Company's refinancing in the second quarter of 2010, a write-off of existing deferred financing costs of $2.3 million was recorded. These charges were also included in interest expense.

Contingencies

In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, product and environmental liability. The Company records accruals for such loss contingencies when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. The Company does not recognize gain contingencies until realized.

Fair Value of Financial Instruments

The estimated fair values of the Company's financial instruments, including its cash and cash equivalents, receivables, accounts payable and accrued expenses approximate the carrying values of these instruments due to their short term nature. The estimated fair value of the debt, at December 31, 2011, based on recent market activity available to the Company was $320.0 million compared to the face value of $400.0 million. At December 31, 2010, the estimated fair value of the debt based on borrowing rates available to the Company for similar debt was $257.9 million compared to the face value of $250.0 million.

Shipping and Handling Revenues and Costs

The Company typically does not charge customers for shipping and handling costs. Shipping and handling costs are included in cost of goods sold and were $20.3 million, $16.6 million and $16.6 million for the years ended December 31, 2011, December 31, 2010 and December 31, 2009, respectively.

Advertising and Promotion Costs

Advertising and promotion costs are expensed as incurred and totaled $4.1 million, $4.2 million and $4.1 million for the years ended December 31, 2011, December 31, 2010 and December 31, 2009, respectively, and are included in sales and marketing expenses.

Research and Development

Research and development costs are expensed as incurred and relate primarily to the development of new products to add to the Company's portfolio and costs related to its medical affairs and medical information functions. Nonrefundable advance payments for goods or services that will be used or rendered for future research and development activities are deferred and recognized as an expense as the goods are delivered or the related services are performed.

Foreign Currency Translation

The statements of comprehensive (loss) income of the Company's foreign subsidiaries are translated into U.S. Dollars using average exchange rates. The net assets of the Company's foreign subsidiaries are translated into U.S. Dollars using the end of period exchange rates. The impact from translating the net assets of these subsidiaries at changing rates are recorded in the foreign currency translation adjustment account, which is included in accumulated other comprehensive income (loss).

For the years ended December 31, 2011 and December 31, 2010, losses arising from foreign currency transactions totaled approximately $156,000 and $209,000, respectively. For the year ended December 31, 2009, gains arising from foreign currency transactions totaled approximately $794,000. Transaction gains and losses are reported as a component of other income, net.

Accounting for Stock-Based Compensation

The Company's stock-based compensation cost is measured at the grant date of the stock-based award based on the fair value of the award and is recognized as expense over the requisite service period, which generally represents the vesting period, and includes an estimate of the awards that will be forfeited. The Company uses the Black-Scholes valuation model for estimating the fair value of stock options. The fair value of stock option awards is affected by the valuation assumptions, including the expected volatility based on comparable market participants, expected term of the option, risk-free interest rate and expected dividends. When a contingent cash settlement of vested options becomes probable, the Company reclassifies its vested awards to a liability and accounts for any incremental compensation cost in the period in which the settlement becomes probable.

Accumulated Other Comprehensive (Loss) Income

Comprehensive (loss) income is comprised of net (loss) income, plus all changes in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including any foreign currency translation adjustments. These changes in equity are recorded as adjustments to accumulated other comprehensive (loss) income in the Company's consolidated balance sheet. The components of accumulated other comprehensive income (loss) consist of foreign currency translation adjustments.

Asset Retirement Obligations

The Company's compliance with federal, state, local and foreign environmental laws and regulations may require it to remove or mitigate the effects of the disposal or release of chemical substances in jurisdictions where it does business or maintains properties. The Company establishes accruals when such costs are probable and can be reasonably estimated. Accrual amounts are estimated based on currently available information, regulatory requirements, remediation strategies, historical experience, the relative shares of the total remediation costs and a relevant discount rate, when the time periods of estimated costs can be reasonably predicted. Changes in these assumptions could impact the Company's future reported results. The amounts recorded for asset retirement obligations in the accompanying balance sheets at December 31, 2011 and 2010 were $4.9 million and $4.4 million, respectively.

Self Insurance Reserves

The Company's consolidated balance sheet at December 31, 2011 and 2010 includes approximately $0.6 million of accrued liabilities associated with employee medical costs that are retained by the Company. The Company estimates the required liability of such claims on an undiscounted basis based upon various assumptions which include, but are not limited to, the Company's historical loss experience and projected loss development factors. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents (frequency) and change in the ultimate cost per incident (severity). The Company also maintains a separate cash account to fund these medical claims and must maintain a minimum balance as determined by the plan administrator. The balance of this restricted cash account was approximately $0.1 million at both December 31, 2011 and 2010, and is included in other current assets.

Recent Accounting Standards

In September 2011, the FASB issued Accounting Standards Update ("ASU") No. 2011-08, Testing Goodwill for Impairment ("ASU 2011-08"). Under this guidance, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the entity determines that it is more likely than not that the carrying value of a reporting unit is less than its fair value, then performing the two-step impairment test is unnecessary. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The implementation of the amended accounting guidance will have no material impact on the consolidated financial position and results of operations.

In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income (Topic 220). This guidance, effective retrospectively for the interim and annual periods beginning on or after December 15, 2011 (early adoption is permitted), requires presentation of total comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The adoption of this guidance did not have a material impact on the Company's financial position and results of operations.

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value of Financial Instruments

Fair Value of Financial Instruments

3. Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, financial instruments are categorized based on a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

        Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

        Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

        Level 3—Unobservable inputs that reflect a Company's estimates about the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data.

At December 31, 2011 and 2010, the Company's financial assets that are measured at fair value on a recurring basis are comprised of money market securities and are classified as cash equivalents. The Company invests excess cash from its operating cash accounts in overnight investments and reflects these amounts in cash and cash equivalents on the consolidated balance sheet using quoted prices in active markets for identical assets (Level 1).

(in thousands)	Total fair value at December 31, 2011		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)

Money Market	$	6,024	$	6,024		—		—

	$	6,024	$	6,024	$	—	$	—

(in thousands)	Total fair value at December 31, 2010		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)

Money Market	$	22,883	$	22,883	$	—	$	—

	$	22,883	$	22,883	$	—	$	—

In addition, at December 31, 2011 and 2010, the Company had approximately $34.6 million and $10.1 million, respectively, of cash on hand.

The estimated fair values of the Company's financial instruments, including its cash and cash equivalents, receivables, accounts payable and accrued expenses approximate the carrying values of these instruments due to their short term nature. The estimated fair value of the debt, at December 31, 2011, based on recent market activity available to the Company was $320.0 million compared to the face value of $400.0 million. At December 31, 2010, the estimated fair value of the debt based on borrowing rates available to the company for similar debt was $257.9 million compared to the face value of $250.0 million.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes

Income Taxes

4. Income Taxes

The components of (loss) income before income taxes for the years ended December 31 were:

(in thousands)	2011			2010		2009

United States	$	(55,658	)	$	2,316	$	41,125
International		3,287			5,119		1,179

	$	(52,371	)	$	7,435	$	42,304

The provision (benefit) for income taxes as of December 31 was:

(in thousands)	2011			2010			2009

Current
Federal	$	(41	)	$	768		$	5,140
State		2,607			1,649			3,981
International		202			1,602			2,005

	$	2,768		$	4,019		$	11,126

Deferred
Federal	$	75,939		$	(184	)	$	9,396
State		6,326			(1,270	)		4,244
International		(935	)		(100	)		(2,814	)

	$	81,330		$	(1,554	)	$	10,826

	$	84,098		$	2,465		$	21,952

The Company's provision for income taxes in the years ended December 31, 2011, 2010 and 2009 was different from the amount computed by applying the statutory U.S. Federal income tax rate to (loss) income from operations before income taxes, as a result of the following:

(in thousands)	2011					2010					2009

U.S. statutory rate	$	(18,331	)	35.0	%	$	2,602		35.0	%	$	14,806		35.0	%
Permanent differences		(363	)	0.7	%		277		3.7	%		—		—
Losses not benefited		—		—			—		—			155		0.4	%
U.S manufacturing deduction		—		—			—		—			(281	)	(0.7)	%
Uncertain tax positions		1,148		(2.2	)%		2,685		36.1	%		2,505		5.9	%
Research credits		(910	)	1.7	%		(666	)	(9.0	)%		—		—
State and local taxes		(1,815	)	3.5	%		53		0.7	%		631		1.5	%
Impact of rate change on deferred taxes		(393	)	0.7	%		(308	)	(4.1	)%		3,956		9.3	%
Utilization of net operating losses		—		—			(339	)	(4.6	)%		(1,407	)	(3.3)	%
True-up of prior year tax		33		(0.1	)%		(1,311	)	(17.6	)%		1,592		3.8	%
Foreign tax rate differential		(584	)	1.1	%		(528	)	(7.1	)%		—		—
Valuation allowance		102,692		(196.1	)%		—		—			—		—
Tax on repatriation		2,600		5.0	%		—		—			—		—
Other		21		—	%		—		—			(5	)	0.0	%

	$	84,098		(160.7	)%	$	2,465		33.1	%	$	21,952		51.9	%

The components of deferred income tax assets (liabilities) at December 31 were:

(in thousands)	2011			2010

Deferred Tax Assets
Federal benefit of state taxes payable	$	10,311		$	9,670
Reserves, accruals and other		29,019			12,383
Capitalized R&D		9,536			—
Amortization of intangibles other than goodwill		74,744			81,836
Net operating loss carryforwards		1,381			384

Deferred tax assets		124,991			104,273

Deferred Tax Liabilities
Reserves, accruals and other	$	(6,457	)		—
Customer relationships		(12,935	)		(17,361	)
Depreciation		(3,745	)		(6,187	)

Deferred tax liability		(23,137	)		(23,548	)
Less: Valuation allowance		(102,692	)		—

	$	(838	)	$	80,725

	2011			2010

Recorded in the accompanying consolidated balance sheet as:
Current deferred tax assets	$	93		$	4,266
Noncurrent deferred tax assets		—			78,312
Current deferred tax liability		—			—
Noncurrent deferred tax liability		(931	)		(1,853	)

Net deferred tax liabilities	$	(838	)	$	80,725

In 2010, the Company determined that, at the time of the purchase of LMI, a deferred tax benefit related to the asset retirement obligation had not been recorded. Accordingly, in 2010 it recorded such deferred tax asset. The offset for this item has been recorded as a reduction in goodwill.

The Company files separate federal income tax returns for Lantheus MI Intermediate, Inc. and Lantheus Medical Imaging, Inc. For state tax purposes, the Company files combined tax returns with Lantheus MI Holdings, Inc. For income tax provision purposes, the Company uses the separate return method in calculating its state tax provision. As of December 31, 2011 and December 31, 2010, the Company reflects an amount payable to Lantheus MI Holdings of $85,000 and $69,000, respectively, for the tax benefit of losses incurred by Lantheus MI Holdings.

The Company is currently under audit in the province of Quebec and in the states of Florida and New York for corporate income taxes. The Company has not recorded a financial statement impact associated with these audits. Tax years 2008-2011 remain open in all jurisdictions. Statutes begin to expire in 2012 for the 2008 tax year. Within the next twelve months, unrecognized tax benefits of $1.3 million associated with federal research credits may be recognized due to the closing of the statute of limitations.

As of December 31, 2011 and 2010, total liabilities for tax obligations and associated interest and penalties were $34.6 million and $33.0 million, respectively, consisting of income tax provisions for uncertain tax benefits of $17.0 million and $17.7 million, interest accruals of $14.4 million and $12.2 million and penalty accruals of $3.2 million and $3.2 million, respectively, which were included in other long-term liabilities on the consolidated balance sheet with the offsetting asset in other long-term assets. The total noncurrent asset related to the indemnification was $18.8 million and $17.6 million as of December 31, 2011 and 2010, respectively. Included in the 2011, 2010 and 2009 tax provision is $2.4 million, $2.4 million and $2.5 million, respectively, relating to current year interest expense, with an offsetting amount included in other income due to the indemnification related to these obligations. During 2011, the Company conducted transfer pricing studies relating to its foreign subsidiaries. As a result of these studies, the Company has reversed $968,000 of uncertain tax positions.

A reconciliation of the Company's changes in uncertain tax positions for 2011, 2010 and 2009 is as follows:

(in thousands)

Beginning balance of uncertain tax positions as of January 1, 2009	$	17,939
Additions to tax positions related to current year		877
Reduction to tax positions related to prior year		—

Balance of uncertain tax positions as of December 31, 2009	$	18,816
Additions to tax positions related to current year		1,194
Reduction to tax positions related to prior year		(3,951	)

Balance of uncertain tax positions as of December 31, 2010	$	16,059
Additions to tax positions related to current year		195
Reduction to tax positions related to prior year		(876	)

Balance of uncertain tax positions as of December 31, 2011	$	15,378

As of December 31, 2011 and December 31, 2010, the total amount of unrecognized tax benefits was $15.4 million and $16.1 million, respectively, all of which would affect the effective tax rate, if recognized. These amounts are primarily associated with domestic state tax issues, such as the allocation of income among various state tax jurisdictions, transfer pricing and U.S. federal R&D credits. Included in the 2010 results is a net provision of $1.6 million relating to transfer pricing exposures associated with operating in multiple jurisdictions. Since the Company operates in a number of countries in which it has income tax treaties, it believes that it is more likely than not that the Company should be able to receive competent authority relief for any potential adjustment in those countries. The Company has included $3.2 million within other long-term liabilities and has reflected an offset in other assets for $1.6 million.

In accordance with the Company's acquisition of the medical imaging business from Bristol-Myers Squibb ("BMS") in 2008, the Company obtained a tax indemnification agreement with BMS related to certain tax obligations arising prior to the acquisition of the Company, for which the Company has the primary legal obligation. The tax indemnification receivable is recognized within other noncurrent assets. The changes in the tax indemnification asset are recognized within other income, net in the statement of comprehensive (loss) income. In accordance with the Company's accounting policy, the change in the tax liability and penalties and interest associated with these obligations (net of any offsetting federal or state benefit) is recognized within the tax provision. Accordingly, as these reserves change, adjustments are included in the tax provision while the offsetting adjustment is included in other income. Assuming that the receivable from BMS continues to be considered recoverable by the Company, there is no net effect on earnings related to these liabilities and no net cash outflows.

During the years ended December 31, 2011 and 2010, BMS, on behalf of the Company, made payments totaling $0.3 million and $4.6 million respectively to a number of states in connection with prior year state income tax filings. As a result of these payments, the amount due from BMS, included within other noncurrent assets, and the income tax liability included within other long-term liabilities, decreased by $0.5 million and $5.1 million respectively, which represents the total cash payments of $0.3 million and $4.6 million respectively and a reduction in the reserve of $0.2 million and $0.5 million respectively, representing the difference between amounts paid and amounts originally estimated. There were no resolutions associated with uncertain tax positions during the year ended December 31, 2009.

Undistributed earnings of foreign subsidiaries aggregated to $14.1 million and $9.5 million at December 31, 2011 and 2010, respectively. The Company may not permanently reinvest approximately $13.0 million of accumulated earnings from its Australian, Canadian, and Puerto Rico subsidiaries. For the year ended December 31, 2011, the Company has recorded a deferred tax liability of $5.9 million relating to the additional tax that would be due in the U.S. upon repatriation of these earnings less $3.3 million of foreign tax credits. Due to anticipated tax losses in 2012, the estimated current tax cost is expected to be $0.3 million associated with foreign withholding taxes.

The Company has generated domestic pre-tax losses for the past two years. This loss history coupled with uncertainties surrounding the Company's ability to obtain sustained product supply demonstrates negative evidence concerning the Company's ability to utilize its domestic gross deferred tax assets. In order to overcome the presumption of recording a valuation allowance against the deferred tax assets, the Company must have sufficient positive evidence that it can generate sufficient taxable income to utilize these deferred tax assets within the carryover or forecast period. Although the Company has no history of expiring net operating losses or other tax attributes, based on the Company's pre-tax loss of $52.4 million in 2011, the cumulative loss incurred over the three-year period ended December 31, 2011, and the uncertainty regarding product supply issues, management determined that the net U.S. deferred tax assets are not more likely than not recoverable. As a result of this analysis, the Company has recorded a valuation allowance in the amount of $102.7 million in 2011.

The following is a reconciliation of the Company's valuation allowance for the years ending December 31, 2011, 2010, and 2009.


Balance at January 1, 2009	$	5,535
Charged to provision for income taxes		—
Deductions (use of net operating loss)		(5,196	)

Balance at December 31, 2009		339
Charged to provision for income taxes		—
Deductions (use of net operating loss)		(339	)

Balance at December 31, 2010		—
Charged to provision for income taxes		102,692
Deductions		—

Balance at December 31, 2011	$	102,692

At December 31, 2011, the Company has federal and state net operating loss carryovers of $1.6 million, which begins to expire in 2030. The Company has $1.3 million of federal research credits, which begins to expire in 2029. The Company has foreign tax credits of approximately $4.0 million that will begin to expire in 2020. The Company has state research credits of $1.7 million, which will expire between 2023 and 2026. The Company has Massachusetts investment tax credits of approximately $0.5 million, which have no expiration date.

In 2010, the Company was granted a tax holiday from the Commonwealth of Puerto Rico, which expires on January 1, 2024. This grant provides for a 4% tax rate on activities relating to the operations of the Company's radiopharmacies. This grant is conditioned upon the Company meeting certain employment and investment thresholds. The impact of this tax holiday was to decrease foreign tax by approximately $0.2 million in both 2011 and 2010.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Inventory

12 Months Ended

Dec. 31, 2011

Inventory

Inventory

5. Inventory

The Company includes within current assets the amount of inventory that is estimated to be utilized within twelve months. Inventory that will be utilized after twelve months is classified within other long-term assets.

Inventory, classified in inventory or other long-term assets, consisted of the following:

(in thousands)	December 31, 2011		December 31, 2010

Raw materials	$	7,755	$	7,116
Work in process		2,615		5,605
Finished goods		4,395		7,396

Inventory		14,765		20,117
Other long-term assets		11,249		12,781

Total	$	26,014	$	32,898

At December 31, 2011, inventories reported as other long-term assets included $10.7 million of raw materials and $0.5 million of finished goods. At December 31, 2010 other long-term assets included $7.8 million of raw materials, $1.4 million in work-in-process and $3.6 million of finished goods.

The Company's Ablavar product was commercially launched in January 2010 and the Company is continuing the process of educating radiologists on optimizing the use of the product within their patient populations. The revenues for this product through December 31, 2011 have not been significant. At December 31, 2011 and December 31, 2010, the balances of inventory on-hand reflect approximately $12.2 million and $13.9 million, respectively, of finished products, work-in-process and raw materials related to Ablavar. At December 31, 2011 and December 31, 2010, approximately $11.2 million and $12.8 million, respectively, of Ablavar inventory was included in long-term assets. LMI entered into an agreement with a supplier to provide Active Pharmaceutical Ingredient ("API") and finished products for Ablavar under which LMI is required to purchase future minimum quantities. The supply agreement was amended during October 2011 to extend the term of the agreement from September 30, 2012 until September 30, 2014, reduce the amount of API LMI is obligated to purchase over the term of the agreement, and increase the amount of finished drug product LMI is obligated to purchase over the term of the agreement. At December 31, 2011, the remaining purchase commitment under the amended agreement was approximately $11.1 million. The Company records the inventory when it takes delivery, at which time the Company assumes title and risk of loss.

Prior to the issuance of the June 30, 2011 financial statements and in the fourth quarter of 2010, the Company performed analyses of its expected future sales of its Ablavar product and recorded an inventory write-down to cost of goods sold of $13.5 million and $10.9 million, respectively, which represents the cost of Ablavar finished good product and API that the Company does not believe it will be able to sell prior to its expiration. Prior to the issuance of the Company's June 30, 2011 financial statements, the Company completed an updated sales forecast for Ablavar based on actual sales through June 30, 2011 in consideration of its supply agreement for API. Based on the updated sales forecast, coupled with the aggregate six-year shelf life of API and finished goods, the Company recorded in cost of goods sold a reserve of $1.9 million for the loss associated with the portion of the committed purchases of Ablavar product that the Company did not believe it would be able to sell prior to its expiration. Also, the Company determined that its write-down of Ablavar inventory represented an event that warranted assessment of the intellectual property associated with Ablavar for its recoverability and concluded that the intellectual property was not recoverable and in the second quarter of 2011, recorded in cost of goods sold an impairment of this intangible asset of $23.5 million. See Note 8, "Intangibles, net." Prior to the issuance of the December 31, 2011 financial statements, the Company assessed third and fourth quarter results, as well as results subsequent to December 31, 2011, against the current forecast of projected sales and $11.1 million of remaining purchase commitments. Based upon this analysis, the Company recorded an additional inventory write-down in the fourth quarter to cost of goods sold of $12.3 million of Ablavar inventory, a reserve of $3.7 million for an additional loss associated with the portion of the committed purchases of Ablavar product that the Company did not believe it would sell prior to expiry. In the event that the Company does not meet its sales expectations for Ablavar or cannot sell the product it has committed to purchase prior to its expiration, the Company could incur additional inventory write-downs and/or losses on its purchase commitments.

Property, Plant and Equipment, net

12 Months Ended

Dec. 31, 2011

Property, Plant and Equipment, net

Property, Plant and Equipment, net

6. Property, Plant and Equipment, net

Property, plant and equipment consisted of the following at December 31:

(in thousands)	2011			2010

Land	$	22,450		$	22,450
Buildings		64,029			62,014
Machinery, equipment and fixtures		65,648			60,713
Construction in progress		4,383			7,631
Accumulated depreciation		(44,058	)		(32,124	)

Property, plant and equipment, net	$	112,452		$	120,684

Depreciation expense related to property, plant and equipment was $12.9 million, $11.4 million and $10.9 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Included within property, plant and equipment are spare parts of approximately $2.8 million and $4.0 million as of December 31, 2011 and 2010, respectively. Spare parts include replacement parts relating to plant and equipment and are either recognized as an expense when consumed or re-classified and capitalized as part of the related plant and equipment and depreciated over a time period not exceeding the useful life of the related asset. In addition, the Company included $1.6 million, $3.2 million and $1.5 million of additions to its property, plant and equipment in accounts payable at December 31, 2011, 2010 and 2009.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Asset Retirement Obligations

12 Months Ended

Dec. 31, 2011

Asset Retirement Obligations

Asset Retirement Obligations

7. Asset Retirement Obligations

The Company considers the legal obligation to remediate its facilities upon a decommissioning of its radioactive related operations as an asset retirement obligation. The operations of the Company have radioactive production facilities at its North Billerica, Massachusetts and San Juan, Puerto Rico sites.

The fair value of a liability for asset retirement obligations is recognized in the period in which the liability is incurred. The liability is measured at the present value of the obligation when incurred and is adjusted in subsequent periods as accretion expense is recorded. The corresponding asset retirement costs are capitalized as part of the carrying value of the related long-lived assets and depreciated over the asset's useful life.

The following is a reconciliation of the Company's asset retirement obligations for the years ended December 31, 2011, 2010 and 2009:

(in thousands)

Balance at January 1, 2009	$	3,283
Capitalization		85
Accretion expense		378

Balance at December 31, 2009		3,746
Capitalization		191
Accretion expense		435

Balance at December 31, 2010		4,372
Capitalization		—
Accretion expense		496

Balance at December 31, 2011	$	4,868

Intangibles, net

12 Months Ended

Dec. 31, 2011

Intangibles, net

Intangibles, net

8. Intangibles, net

Intangibles, net consisted of the following:

	December 31, 2011

(in thousands)	Cost		Accumulated amortization		Net		Weighted Average Useful Life	Amortization Method
Trademarks	$	53,390	$	13,779	$	39,611	16 years	Straight-line
Customer relationships		113,480		74,575		38,905	19 years	Accelerated
Other patents		42,780		38,547		4,233	2 years	Straight-line

	$	209,650	$	126,901	$	82,749

	December 31, 2010

(in thousands)	Cost		Accumulated amortization		Net		Weighted Average Useful Life	Amortization Method
Trademarks	$	53,390	$	10,317	$	43,073	16 years	Straight-line
Customer relationships		113,480		61,909		51,571	19 years	Accelerated
Ablavar patent rights, know-how		29,710		4,842		24,868	11 years	Straight-line
Other patents		42,780		37,603		5,177	2 years	Straight-line

	$	239,360	$	114,671	$	124,689

On April 6, 2009, the Company acquired the U.S., Canadian and Australian territory rights to a Gadolinium-based blood pool contrast agent, Ablavar (formerly known as Vasovist), from EPIX Pharmaceuticals for an aggregate purchase price of $32.6 million, including drug product and active pharmaceutical ingredient inventory. Ablavar was approved by the U.S. Food and Drug Administration ("FDA") in December 2008 and commercially launched by the Company in early January 2010 after final FDA approval of its product label. In June 2010, the Company acquired the remaining world rights to Ablavar. The Company determined that the write-down of Ablavar inventory in the fourth quarter of 2010 represented an event that warranted assessment of the $24.6 million Ablavar patent portfolio for its recoverability. See Note 5, "Inventory." Based on the Company's estimate of future undiscounted cash flows associated with the Ablavar product as of December 31, 2010, the Company concluded the patent portfolio was recoverable by a narrow margin. During the interim periods subsequent to December 31, 2010, the Company monitored the recoverability of the Ablavar patent portfolio. Prior to the issuance of the Company's June 30, 2011 financial statements, the Company completed an update of its sales forecast based on actual sales results through June 30, 2011 and its forecasted Ablavar sales activity. The Company, using its revised sales forecast, conducted an impairment analysis as of June 30, 2011 and concluded that the estimate of future undiscounted cash flows associated with the Ablavar product did not exceed the carrying amount of the asset and therefore, the asset would need to be written down to its fair value. In order to calculate the fair value of the Ablavar patent portfolio asset, the Company estimated the future discounted cash flows associated with the Ablavar product and as a result of this analysis, recorded an impairment charge of $23.5 million to adjust the carrying value to its fair value of zero. This expense was recorded within cost of goods sold in the accompanying statement of comprehensive (loss) income.

The Company recorded amortization expense for its intangible assets of $18.5 million, $22.5 million and $29.6 million for the years ended December 31, 2011, 2010 and 2009, respectively.

In the first quarter of 2012, the Company reviewed the estimated useful life of certain of its trademarks. As a result of utilizing the most recent forecasted data, the Company revised its estimate of the remaining useful life of one of its trademarks to five years. The revised expected future amortization expense related to the intangible assets is as follows (in thousands):

Years ended December 31,

2012	$	16,109
2013		14,437
2014		13,156
2015		11,484
2016		10,732
2017 and thereafter		16,831

	$	82,749

Accrued Expenses

12 Months Ended

Dec. 31, 2011

Accrued Expenses

Accrued Expenses

9. Accrued Expenses

Accrued expenses are comprised of the following at December 31:

(in thousands)	2011		2010

Compensation and benefits	$	5,501	$	5,839
Accrued interest		4,886		3,137
Accrued professional fees		1,927		2,342
Research and development services		2,100		1,327
Freight and distribution		3,416		3,368
Marketing expense		1,104		989
Accrued rebates, discounts and chargebacks		1,356		910
Other		659		693

	$	20,949	$	18,605

On June 30, 2011, the Company took action to reduce its work force in an effort to reduce costs and increase operating efficiency, which resulted in approximately $1.6 million charge to the statement of comprehensive (loss) income in the second quarter of 2011. The remaining balance in accrued expenses at December 31, 2011 associated with this action is approximately $37,000.

Financing Arrangements

12 Months Ended

Dec. 31, 2011

Financing Arrangements

Financing Arrangements

10. Financing Arrangements

On March 21, 2011, LMI issued $150.0 million of New Restricted Notes. The New Restricted Notes were issued at a price of 101.50% and were issued as additional debt securities under the Indenture pursuant to which LMI previously issued $250.0 million in aggregate principal amount of 9.750% Senior Notes due 2017. The New Restricted Notes were issued with the same terms and conditions as the Existing Notes, except that the New Restricted Notes were subject to a separate registration rights agreement. The New Notes and the Existing Notes vote as one class under the Indenture. As a result of the issuance of the New Notes, LMI has $400.0 million in aggregate principal amount of Notes outstanding. The Notes bear interest at a rate of 9.750% per year, payable on May 15 and November 15 of each year, beginning May 15, 2011 with respect to the New Notes. Interest on the New Notes accrues from November 15, 2010. The Notes mature on May 15, 2017. The net proceeds of the Existing Notes were used to repay $77.9 million due under LMI's then outstanding credit agreement and to pay a $163.8 million dividend to Holdings to repay a $75.0 million demand note it issued and for Holdings to repurchase $90.0 million of its Series A Preferred Stock at the accreted value. The net proceeds of the New Restricted Notes were used to pay a $150 million dividend to Holdings, which it used to fully redeem the balance of its Series A Preferred Stock at the accreted value of $44.0 million and to pay a $106.0 million dividend to the holders of its common securities and stock options. In conjunction with the issuance of the New Restricted Notes, LMI also made a cash payment of $3.75 million to the Holders of the Existing Notes in exchange for the Holders of the Existing Notes consent to amend the Indenture to modify the restricted payments covenant to provide for additional restricted payment capacity in order to accommodate the dividend payment. The premium of $2.25 million and the consent fee of $3.75 million were capitalized and are being amortized over the term of the Notes as an adjustment to interest expense. All of the Notes have been registered with the Securites and Exchange Commission.

Redemption

LMI can redeem the Notes at 100% of the principal amount on May 15, 2016 or thereafter. LMI may also redeem the Notes prior to May 15, 2016 depending on the timing of the redemption during the twelve month period beginning May 15 of each of the years indicated below:

Year

2014	104.875	%
2015	102.438	%
2016	100.000	%

In addition, at any time prior to May 15, 2013, LMI may, at its option, redeem up to 35% of the aggregate principal amount of Notes issued at 109.750% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but not including, the redemption date, subject to the right of holders of record on such date to receive any interest due, using proceeds of an equity offering, provided that at least 65% of the aggregate principal amount of the Notes remains outstanding immediately after such redemption and that such redemption occurs within 90 days of each equity offering (as defined in the Indenture).

At any time prior to May 15, 2014, LMI may also redeem all or a part of the Notes, with notice, at a redemption price equal to 100% of the principal amount thereof of the Notes redeemed plus the applicable premium (as defined in the Indenture) as of, and accrued and unpaid interest and additional interest (as defined in the Indenture), if any, to, but not including, the redemption date, subject to the rights of holders of record on the relevant record date to receive interest due on the relevant interest payment date.

Upon a change of control (as defined in the Indenture), LMI will be required to make an offer to purchase each holder's Note at a price of 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase.

If LMI or its subsidiaries engage in asset sales (as defined in the Indenture), they generally must either invest the net cash proceeds from such sales in such business within a specified period of time, prepay certain indebtedness or make an offer to purchase a principal amount of the Notes equal to the excess net cash proceeds (as defined in the Indenture), subject to certain exceptions.

The Notes are unsecured and are equal in right of payment to all of the existing and future senior debt, including borrowings under its secured credit facilities, subject to the security interest thereof. LMI's obligations under the Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured senior basis by Lantheus Intermediate and by certain of LMI's subsidiaries, and the obligations of such guarantors under their guarantees are equal in right of payment to all of their existing and future senior debt.

Revolving Line of Credit

In connection with the issuance of the New Restricted Notes, certain covenants and interest rates under LMI's existing $42.5 million revolving facility (the "Facility") were modified as disclosed below. The other terms of the Facility were unchanged, including LMI's ability to request the lenders to increase the Facility by an additional amount of up to $15.0 million at the discretion of the Lenders. Interest on the Facility will be at either LIBOR plus 3.75% or the Reference Rate (as defined in the Facility) plus 2.75%. The Facility expires on May 10, 2014, at which time all outstanding borrowings are due and payable.

At December 31, 2011 and 2010, there was no outstanding balance under the Facility and the aggregate borrowing capacity was $42.5 million. Subsequent to December 31, 2011, we executed an amendment to the Facility to change the financial covenants. Also, on February 3, 2012, the Company entered into a Standby Letter of Credit for up to $4.4 million which expires February 2, 2013. The letter of credit decreases the borrowing availability under the Facility by $4.4 million.

Covenants

The Notes and the Facility contain affirmative and negative covenants, as well as restrictions on the ability of Lantheus Intermediate, LMI and LMI's subsidiaries, to: (i) incur additional indebtedness or issue preferred stock; (ii) repay subordinated indebtedness prior to its stated maturity; (iii) pay dividends on, repurchase or make distributions in respect of its capital stock or make other restricted payments; (iv) make certain investments; (v) sell certain assets; (vi) create liens; (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of the Company's assets; and (viii) enter into certain transactions with the Company's affiliates. The Notes contain customary events of default provisions, including payment default and cross-acceleration for non-payment of any outstanding indebtedness, where such indebtedness exceeds $10.0 million. The Facility also contains customary default provisions and the Company is required to comply with financial covenants in the Facility including a total leverage ratio and interest coverage ratio, beginning with the quarter ended September 30, 2010, as well as limitations on the amount of capital expenditures. The financial ratios are driven by the Company's earnings before interest, taxes, depreciation and amortization ("EBITDA") as defined in the Facility ("Facility EBITDA"). The total leverage ratio is considered by the Company to be the financial covenant that is currently the most restrictive. The financial covenants, prior to the amendment are displayed in the table below:

Revolving Credit Facility Financial Covenants (Prior to Amendment)

Period

Q1 2011	5.50 to 1.00	1.75 to 1.00
Q2 2011	5.50 to 1.00	1.75 to 1.00
Q3 2011	5.25 to 1.00	1.75 to 1.00
Q4 2011	5.00 to 1.00	2.00 to 1.00
Q1 2012	4.75 to 1.00	2.00 to 1.00
Q2 2012	4.50 to 1.00	2.15 to 1.00
Q3 2012	4.50 to 1.00	2.15 to 1.00
Q4 2012	4.25 to 1.00	2.25 to 1.00
Q1 2013	4.25 to 1.00	2.25 to 1.00
Q2 2013	4.25 to 1.00	2.25 to 1.00
Q3 2013	4.25 to 1.00	2.25 to 1.00
Thereafter	3.75 to 1.00	2.25 to 1.00

On January 26, 2012 the Company executed an amendment to the credit facility which revised the financial covenants. The revised financial covenants are displayed in the table below.

Revolving Credit Facility Financial Covenants Per Amendment

Period

Q4 2011	5.00 to 1.00	2.00 to 1.00
Q1 2012	6.80 to 1.00	1.40 to 1.00
Q2 2012	7.55 to 1.00	1.30 to 1.00
Q3 2012	6.70 to 1.00	1.40 to 1.00
Q4 2012	5.50 to 1.00	1.80 to 1.00
Q1 2013	4.60 to 1.00	2.00 to 1.00
Q2 2013	4.60 to 1.00	2.10 to 1.00
Q3 2013	4.25 to 1.00	2.15 to 1.00
Q4 2013	4.25 to 1.00	2.15 to 1.00
Q1 2014	3.75 to 1.00	2.25 to 1.00
Thereafter	3.75 to 1.00	2.25 to 1.00

Financing Costs

LMI incurred and capitalized approximately $15.6 million in direct financing fees including $5.2 million associated with the New Restricted Notes issued in March 2011, consisting primarily of underwriting fees and expenses, consent solicitation fee, legal fees, accounting fees and printing costs in connection with the issuance of the New Restricted Notes, the Existing Notes and the Facility. Deferred financing costs are being amortized over the life of the Notes and the Facility, as appropriate, using the effective interest method and are included in interest expense in the accompanying consolidated statements of comprehensive (loss) income.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Stockholder's Equity

12 Months Ended

Dec. 31, 2011

Stockholder's Equity

Stockholder's Equity

11. Stockholder's Equity

As of December 31, 2011 and 2010, the authorized capital stock of the Company consisted of 10,000 shares of voting common stock with a par value of $0.001 per share and 1 share outstanding.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

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-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
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-Paragraph 7, 11A
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-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

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-Number Topic 4
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+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation

Stock-Based Compensation

12. Stock-Based Compensation

The Company's employees are eligible to receive awards from Holdings' 2008 Equity Incentive Plan (the "2008 Plan"). The 2008 Plan is administered by the Holdings Board of Directors. The 2008 Plan permits the granting of nonqualified stock options, stock appreciation rights, or SARs, restricted stock and restricted stock units to its employees, officers, directors and consultants of Holdings or any subsidiary of Holdings (including Intermediate and LMI). The maximum number of shares that may be issued pursuant to awards under the 2008 Plan at December 31, 2011 is 4,995,450. Option awards are granted with an exercise price equal to the fair value of Holdings' stock at the date of grant, as determined by the Board of Directors of Holdings. Time based option awards vest based on time, either four or five years, and performance based option awards vest based on the performance criteria specified in the grant. All option awards have a ten year contractual term. The Company recognizes compensation costs for its time based awards on a straight-line basis equal to the vesting period. The compensation cost for performance based awards is recognized on a graded vesting basis, based on the probability of achieving the performance targets over the requisite service period for the entire award. The fair value of each option award is estimated on the date of grant using a Black-Scholes valuation model that uses the assumptions noted in the following table. Expected volatilities are based on the historic volatility of a selected peer group. Expected dividends represents the dividends expected to be issued at the date of grant. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free interest rate assumption is the seven-year U.S. Treasury rate at the date of the grant which most closely resembles the expected life of the options.

	Years Ended December 31,

	2011			2010			2009
Expected volatility		33 - 40	%		36 - 39	%		41 - 39	%
Expected dividends		—			—			—
Expected life (in years)		6.5			6.5			6.5
Risk-free interest rate		1.9 - 2.9	%		2.2% - 3.3	%		2.4% - 3.4	%

A summary of option activity for 2011 is presented below:

							Weighted Average Exercise Price			Aggregate Intrinsic Value

Outstanding at January 1, 2011	2,368,350		1,797,569		4,165,919		$	2.70	7.0	$	32,618,000
Options granted	148,500		148,500		297,000			10.21
Options cancelled	(94,850	)	(74,861	)	(169,711	)		2.93
Options exercised	(10,000	)	(4,650	)	(14,650	)		6.84
Options forfeited and expired	(124,400	)	(559,020	)	(683,420	)		5.14

Outstanding at December 31, 2011	2,287,600		1,307,538		3,595,138			2.9	6.4	$	22,787,000

Vested and expected to vest at December 31, 2011	2,267,794		872,174		3,139,968			2.90	6.4	$	19,893,000

Exercisable at December 31, 2011	1,333,780		763,218		2,096,998			2.18	6.2	$	14,613,000

The weighted average grant-date fair value of options granted during the years ended December 31, 2011, 2010 and 2009 was $4.05, $4.48 and $3.16, respectively. During the years ended December 31, 2011, 2010 and 2009, 362,300, 465,370 and 1,084,547 options vested, respectively, with an aggregate fair value of approximately $422,000, $468,000 and $987,000, respectively. There were 14,650 options exercised during the year ended December 31, 2011 with an intrinsic value of approximately $46,000. In the year ended December 30, 2010, 15,000 options were exercised with an intrinsic value of approximately $124,000. During the year ended December 31, 2009, the Company received notices for exercise, for which the Company immediately called the options and settled the obligation in cash. As such, no common stock was issued for these transactions during 2009. Stock-based compensation expense (income) for both time based and performance based awards was recognized in the consolidated statements of comprehensive (loss) income as follows:

	Years Ended December 31,

(in thousands)	2011			2010		2009
Cost of goods sold	$	2		$	37	$	101
General and administrative		58			253		828
Sales and marketing		(1,064	)		1,114		97
Research and development		35			230		183

Total stock-based compensation (income) expense	$	(969	)	$	1,634	$	1,209

Stock-based compensation (income) expense recognized in the consolidated statement of comprehensive (loss) income for the years ended December 31, 2011, 2010, and 2009 are based on awards ultimately expected to vest as well as any changes in the probability of achieving certain performance features as required.

As part of the 2008 Plan, the Company has the right to call options upon notice of exercise and to settle the exercise in cash in lieu of issuing shares. As a result of this right, upon termination of service, stock-based awards are reclassified to liability based awards until the period of probable exercise has lapsed. As of December 31, 2010, the Company had recorded a liability $1.1 million, representing 138,515 options relating to stock-based liabilities that it could settle in part or in whole, in cash in the following period. There were no stock-based liabilities as of December 31, 2011.

The total of all stock-based liability awards paid out during 2010 was approximately $84,000. There were no stock-based liability awards paid out in 2011 or 2009.

The Company did not recognize an income tax benefit for the year ended December 31, 2011. For the years ended December 31, 2010 and 2009, the Company recognized an income tax benefit of $46,000 and $7,000, respectively. As of December 31, 2011, there was approximately $1.3 million of total unrecognized compensation costs related to non-vested stock options granted under the 2008 Plan. These costs are expected to be recognized over a weighted-average remaining period of 1.3 years. In addition, performance based awards contain certain contingent features, such as change in control provisions, which allow for the vesting of previously forfeited and unvested awards. As of December 31, 2011, there is approximately $1.3 million of unrecognized compensation expense relating to these features.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Other Income, net

12 Months Ended

Dec. 31, 2011

Other Income, net

Other Income, net

13. Other Income, net

Other income, net consisted of the following:

	Years Ended December 31,

(in thousands)	2011			2010			2009
Foreign currency (losses) gains	$	(156	)	$	(209	)	$	794
Tax indemnification income		1,380			1,250			1,560
Other income		205			273			366

Total other income, net	$	1,429		$	1,314		$	2,720

Commitments

12 Months Ended

Dec. 31, 2011

Commitments

Commitments

14. Commitments

The Company leases certain buildings, hardware and office space under operating leases. In addition, the Company has entered into purchasing arrangements in which minimum quantities of goods or services have been committed to be purchased on an annual basis. Minimum lease and purchase commitments under noncancelable arrangements are as follows (in thousands):

Years ended December 31,	Operating Leases		Other		Total

2012	$	956	$	98,176	$	99,132
2013		904		105,646		106,550
2014		864		39,000		39,864
2015		484		39,000		39,484
2016		331		39,000		39,331
2017 and thereafter		772		458,932		459,704

	$	4,311	$	779,754	$	784,065

Lease expense was $951,000, $941,000 and $810,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

401(k) Plan

12 Months Ended

Dec. 31, 2011

401(k) Plan

401(k) Plan

15. 401(k) Plan

The Company maintains a qualified 401(k) plan (the "401(k) Plan") for its U.S. employees. The 401(k) Plan covers U.S. employees who meet certain eligibility requirements. Under the terms of the 401(k) Plan, the employees may elect to make tax-deferred contributions through payroll deductions within statutory and plan limits, and the Company may elect to make non-elective discretionary contributions. During the years ended December 31, 2011, 2010 and 2009, the Company matched employee contributions up to 4.5% of eligible compensation and did not contribute an additional non-elective discretionary match. The Company may also make optional contributions to the 401(k) Plan for any plan year at its discretion. Expense recognized by the Company for matching contributions related to the 401(k) Plan was $1.9 million, $1.8 million and $1.8 million for the years ended December 31, 2011, 2010 and 2009, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2235017

+ Details

Legal Proceedings

12 Months Ended

Dec. 31, 2011

Legal Proceedings

Legal Proceedings

16. Legal Proceedings

From time to time, the Company is a party to various legal proceedings arising in the ordinary course of business. In addition, the Company has in the past been, and may in the future be, subject to investigations by regulatory authorities which expose it to greater risks associated with litigation, regulatory or other proceedings, as a result of which the Company could be required to pay significant fines or penalties. The outcome of litigation, regulatory or other proceedings cannot be predicted with certainty and some lawsuits, claims, actions or proceedings may be disposed of unfavorably to the Company. In addition, intellectual property disputes often have a risk of injunctive relief which, if imposed against the Company, could materially and adversely affect its financial condition or results of operations.

On December 16, 2010, LMI filed suit against one of its insurance carriers seeking to recover business interruption losses associated with the NRU reactor shutdown and the ensuing global Moly supply challenge. The claim is the result of the shutdown of the NRU reactor in Chalk River, Ontario. The NRU reactor was off-line from May 2009 until August 2010 due to a "heavy water" leak in the reactor vessel. The defendant answered the complaint on January 21, 2011, denying substantially all of the allegations, presenting certain defenses and requesting dismissal of the case with costs and disbursements. On April 4, 2011, the parties had their first pre-trial conference in United States District Court for the Southern District of New York, and discovery has commenced and is continuing. Non-binding mediation of the case is currently scheduled to take place in the summer of 2012. The Company cannot be certain what amount, if any, or when, if ever, it will be able to recover for business interruption losses related to this matter.

Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions

Related Party Transactions

17. Related Party Transactions

Avista, the majority shareholder of LMI Holdings, provides certain advisory services to the Company pursuant to an advisory services and monitoring agreement. The Company is required to pay an annual fee of $1.0 million and other reasonable and customary advisory fees, as applicable, paid on a quarterly basis. The initial term of the agreement is seven years. Upon termination, all remaining amounts owed under the agreement shall become due immediately. There are no outstanding amounts owed at December 31, 2011 or 2010.

Effective June 30, 2009, the Company entered into a Master Services Agreement with Quintiles Commercial US, Inc. ("Quintiles") (formerly known as Innovex Inc.) to provide a contract sales force in connection with the launch and promotion of Ablavar. The Company incurred costs associated with this contract of approximately $3.3 million and $1.0 million for the years ended December 31, 2010 and 2009, respectively. The Master Services Agreement was extended on June 11, 2010 and was terminated as of December 31, 2010. A son of the Company's Chairman of the Board was a Director of Business Development for Quintiles during part of the term of the agreement. He left Quintiles in June 2010 prior to the contract extension and renegotiation.

In March 2010, the Company engaged a tax and financial services consulting firm, to assist the Company to prepare for compliance under the Sarbanes-Oxley Act. As of December 31, 2011 and 2010, the Company has incurred costs associated with this engagement of approximately $117,000 and $176,000, respectively. A son of the Company's former Chief Financial Officer is a partner of the consulting firm.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 3A
-Section 04
-Paragraph b

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
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-Subparagraph (SX 210.4-08.(k))
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+ Details

Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information

Segment Information

18. Segment Information

The Company reports two operating segments, U.S. and International, based on geographic customer base. The results of these operating segments are regularly reviewed by the chief operating decision maker, the President and Chief Executive Officer. The Company's segments derive revenues through the manufacturing, marketing, selling and distribution of medical imaging products, focused primarily on cardiovascular diagnostic imaging. The U.S. segment comprises 75.3%, 74.8% and 76.8% of consolidated revenues in 2011, 2010 and 2009, respectively, and 85.5% and 89.7% of consolidated assets at December 31, 2011 and 2010, respectively. All goodwill has been allocated to the U.S. operating segment.

Selected information for each business segment are as follows (in thousands):

(in thousands)	2011			2010			2009

*Revenues*
U.S.	$	291,344		$	295,352		$	295,818
International		87,927			89,210			83,433

Total revenue, including inter-segment		379,271			384,562			379,251
Inter-segment revenue		(22,979	)		(30,606	)		(19,040	)

	$	356,292		$	353,956		$	360,211

*Revenues from external customers*
U.S.	$	268,365		$	264,746		$	276,778
International		87,927			89,210			83,433

	$	356,292		$	353,956		$	360,211

*Revenues by product*
Cardiolite	$	65,316		$	77,422		$	119,304
TechneLite		131,241			122,044			112,910
DEFINITY		68,503			59,968			42,942
Other		91,232			94,522			85,055

	$	356,292		$	353,956		$	360,211

*Geographical revenue*
U.S.	$	268,365		$	264,746		$	276,778
Canada		42,366			42,225			37,511
All other		45,561			46,985			45,922

	$	356,292		$	353,956		$	360,211

*Operating income/(loss)*
U.S.	$	(25,881	)	$	16,953		$	35,708
International		12,767			12,952			8,166

Total operating income, including inter-segment		(13,114	)		29,905			43,874
Inter-segment operating income (loss)		(3,361	)		(511	)		9,095

	$	(16,475	)	$	29,394		$	52,969

*Depreciation and amortization*
U.S.	$	28,912		$	30,767		$	36,438
International		3,850			4,434			5,269

	$	32,762		$	35,201		$	41,707

*Capital expenditures*
U.S.	$	7,100		$	7,005		$	6,906
International		594			1,330			1,950

	$	7,694		$	8,335		$	8,856

	2011		2010

*Assets*
U.S.	$	306,615	$	444,767
International		52,189		51,114

	$	358,804	$	495,881

	2011		2010

*Long-lived assets*
U.S.	$	197,565	$	244,784
International		16,932		20,199

	$	214,497	$	264,983

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
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+ Details

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2011

Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

19. Valuation and Qualifying Accounts

(in thousands)	Balance at Beginning of Fiscal Year		Charge to Costs and Expenses		Deductions From Reserves			Balance at End of Fiscal Year

Year ended December 31, 2011:
Allowance for doubtful accounts	$	796	$	301	$	(635	)	$	462
Year ended December 31, 2010:
Allowance for doubtful accounts	$	738	$	394	$	(336	)	$	796
Year ended December 31, 2009:
Allowance for doubtful accounts	$	752	$	63	$	(77	)	$	738

Amounts charged to deductions from reserves represent the write-off of uncollectible balances.

Guarantor Financial Information

12 Months Ended

Dec. 31, 2011

Guarantor Financial Information

Guarantor Financial Information

20. Guarantor Financial Information

The Notes are guaranteed by Lantheus Intermediate and Lantheus MI Real Estate, LLC, one of Lantheus Intermediate's consolidated subsidiaries (the "Guarantor Subsidiary"). The guarantees are full and unconditional and joint and several. The following supplemental financial information sets forth, on a condensed consolidating basis, balance sheet information as of December 31, 2011 and 2010, and comprehensive (loss) income and cash flow information for the years ended December 31, 2011, 2010 and 2009 for Lantheus Intermediate, LMI, the Guarantor Subsidiary and Lantheus Intermediate's other subsidiaries (the "Non-Guarantor Subsidiaries"). The supplemental financial information reflects the investments of Lantheus Intermediate in LMI and Lantheus Intermediate's investment in the Guarantor Subsidiary and Non-Guarantor Subsidiaries using the equity method of accounting.

Consolidating Balance Sheet Information
December 31, 2011

(in thousands)	Lantheus Intermediate			LMI			Guarantor Subsidiary		Non- Guarantor Subsidiaries			Eliminations			Total

Assets:
Current assets
Cash and cash equivalents	$	—		$	20,474		$	—	$	20,133		$	—		$	40,607
Accounts receivable, net		—			27,872			—		12,128			—			40,000
Intercompany accounts receivable		—			1,414			—		—			(1,414	)		—
Inventory		—			12,269			—		2,496			—			14,765
Deferred tax assets		—			—			—		93			—			93
Other current assets		—			2,349			—		313			—			2,662

Total current assets		—			64,378			—		35,163			(1,414	)		98,127
Property, plant and equipment, net		—			80,225			23,275		8,952			—			112,452
Capitalized software development costs		—			3,575			—		7			—			3,582
Intangibles, net		—			74,775			—		7,974			—			82,749
Goodwill		—			15,714			—		—			—			15,714
Deferred tax assets		—			—			—		—			—			—
Deferred financing costs		—			13,141			—		—			—			13,141
Investment in subsidiaries		(133,203	)		66,983			—		—			66,220			—
Due from parent		—			1,286			—		—			—			1,286
Other long-term assets		—			31,659			—		94			—			31,753

Total assets	$	(133,203	)	$	351,736		$	23,275	$	52,190		$	64,806		$	358,804

Liabilities and (deficit) equity:
Current liabilities
Accounts payable	$	—		$	19,738		$	—	$	2,272		$	—		$	22,010
Intercompany accounts payable		—			—			—		1,414			(1,414	)		—
Accrued expenses		—			17,780			—		3,169			—			20,949
Income tax payable		—			1,595			—		(113	)		—			1,482
Deferred tax liability		—			—			—		—			—			—
Deferred revenue		—			3,712			—		206			—			3,918

Total current liabilities		—			42,825			—		6,948			(1,414	)		48,359
Asset retirement obligations		—			4,737			—		131			—			4,868
Long-term debt, net		—			398,629			—		—			—			398,629
Deferred tax liability		—			—			—		931			—			931
Other long-term liabilities		—			38,748			—		472			—			39,220

Total liabilities		—			484,939			—		8,482			(1,414	)		492,007
(Deficit) equity		(133,203	)		(133,203	)		23,275		43,708			66,220			(133,203	)

Total liabilities and (deficit) equity	$	(133,203	)	$	351,736		$	23,275	$	52,190		$	64,806		$	358,804

Consolidating Balance Sheet Information
December 31, 2010

(in thousands except share data)	Lantheus Intermediate		LMI			Guarantor Subsidiary		Non- Guarantor Subsidiaries		Eliminations			Total

Assets
Current assets
Cash and cash equivalents	$	—	$	19,079		$	—	$	13,927	$	—		$	33,006
Accounts receivable, net		—		36,925			—		13,527		—			50,452
Intercompany accounts receivable		—		4,462			—		—		(4,462	)		—
Inventory		—		12,611			—		7,506		—			20,117
Deferred tax assets		—		4,187			—		79		—			4,266
Other current assets		—		2,845			—		313		—			3,158

Total current assets		—		80,109			—		35,352		(4,462	)		110,999
Property, plant and equipment, net		—		87,258			23,355		10,071		—			120,684
Capitalized software development costs		—		3,887			—		9		—			3,896
Intangibles, net		—		114,570			—		10,119		—			124,689
Goodwill		—		15,714			—		—		—			15,714
Deferred tax assets		—		78,312			—		—		—			78,312
Deferred financing costs		—		9,425			—		—		—			9,425
Investment in subsidiaries		153,434		63,827			—		—		(217,261	)		—
Other long-term assets		—		31,966			—		196		—			32,162

Total assets	$	153,434	$	485,068		$	23,355	$	55,747	$	(221,723	)	$	495,881

Liabilities and equity
Current liabilities
Accounts payable	$	—	$	22,334		$	—	$	2,194	$	—		$	24,528
Intercompany accounts payable		—		—			—		4,462		(4,462	)		—
Accrued expenses		—		15,879			—		2,726		—			18,605
Income tax payable		—		(741	)		—		869		—			128
Deferred revenue		—		5,383			—		1,878		—			7,261

Total current liabilities		—		42,855			—		12,129		(4,462	)		50,522
Asset retirement obligations		—		4,260			—		112		—			4,372
Long-term debt, net		—		250,000			—		—		—			250,000
Deferred tax liability		—		—			—		1,853		—			1,853
Deferred revenue		—		2,668			—		—		—			2,668
Other long-term liabilities		—		31,851			—		1,181		—			33,032

Total liabilities		—		331,634			—		15,275		(4,462	)		342,447
Equity		153,434		153,434			23,355		40,472		(217,261	)		153,434

Total liabilities and equity	$	153,434	$	485,068		$	23,355	$	55,747	$	(221,723	)	$	495,881

Consolidating Comprehensive (Loss) Income Information
Year Ended December 31, 2011

(in thousands)	Lantheus Intermediate			LMI			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Total

Revenues
Net product revenues	$	—		$	293,775		$	—		$	74,966		$	(22,979	)	$	345,762
License and other revenues		—			10,530			—			—			—			10,530

Total revenues		—			304,305			—			74,966			(22,979	)		356,292
Cost of goods sold		—			213,121			—			65,324			(22,979	)		255,466
Loss on firm purchase commitment		—			5,610			—			—			—			5,610

Total cost of goods sold		—			218,731			—			65,324			(22,979	)		261,076

Gross profit		—			85,574			—			9,642			—			95,216
Operating expenses
General and administrative expenses		—			29,335			80			2,642			—			32,057
Sales and marketing expenses		—			34,665			—			4,024			—			38,689
Research and development expenses		—			40,387			—			558			—			40,945

Operating income (loss)		—			(18,813	)		(80	)		2,418			—			(16,475	)
Interest expense		—			(37,658	)		—			—			—			(37,658	)
Interest income		—			1			—			332			—			333
Other income (expense)		—			1,573			—			(144	)		—			1,429
Equity in earnings (losses) of affiliates		(136,469	)		3,288			—			—			133,181			—

(Loss) income before income taxes		(136,469	)		(51,609	)		(80	)		2,606			133,181			(52,371	)
Provision (benefit) for income taxes		—			84,860			(28	)		(734	)		—			84,098

Net (loss) income		(136,469	)		(136,469	)		(52	)		3,340			133,181			(136,469	)

Foreign currency translation		—			—			—			(104	)		—			(104	)
Income tax expense related to items of other comprehensive (loss) income		—			(233	)		—			—			—			(233	)

Total other comprehensive (loss) income	$	(136,469	)	$	(136,702	)	$	(52	)	$	3,236		$	133,181		$	(136,806	)

Consolidating Comprehensive (Loss) Income Information
Year Ended December 31, 2010

(in thousands)	Lantheus Intermediate		LMI			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Total

Revenues
Net product revenues	$	—	$	300,084		$	—		$	76,269		$	(30,606	)	$	345,747
License and other revenues		—		8,209			—			—			—			8,209

Total revenues		—		308,293			—			76,269			(30,606	)		353,956
Cost of goods sold		—		171,061			—			63,551			(30,606	)		204,006

Gross profit		—		137,232			—			12,718			—			149,950
Operating expenses
General and administrative expenses		—		27,113			80			2,849			—			30,042
Sales and marketing expenses		—		41,234			—			4,150			—			45,384
Research and development expenses		—		44,638			—			492			—			45,130

Operating income (loss)		—		24,247			(80	)		5,227			—			29,394
Interest expense		—		(20,395	)		—			—			—			(20,395	)
Loss on early extinguishment of debt		—		(3,057	)		—			—			—			(3,057	)
Interest income		—		2			—			177			—			179
Other income (expense)		—		1,599			—			(285	)		—			1,314
Equity in losses (earnings) of affiliates		4,970		3,565			—			—			(8,535	)		—

Income (loss) before income taxes		4,970		5,961			(80	)		5,119			(8,535	)		7,435
Provision (benefit) for income taxes		—		991			(28	)		1,502			—			2,465

Net income (loss)		4,970		4,970			(52	)		3,617			(8,535	)		4,970

Foreign currency translation		—		—			—			1,150			—			1,150
Income tax expense related to items of other comprehensive (loss) income		—		—			—			—			—			—

Total other comprehensive (loss) income	$	4,970	$	4,970		$	(52	)	$	4,767		$	(8,535	)	$	6,120

Consolidating Comprehensive (Loss) Income Information
December 31, 2009

(in thousands)	Lantheus Intermediate		LMI			Guarantor Subsidiary			Non-Guarantor Subsidiaries			Eliminations			Total

Revenues
Net product revenues	$	—	$	301,099		$	—		$	70,244		$	(19,040	)	$	352,303
License and other revenues		—		7,908			—			—			—			7,908

Total revenues		—		309,007			—			70,244			(19,040	)		360,211
Cost of goods sold		—		141,154			—			62,730			(19,040	)		184,844

Gross profit		—		167,853			—			7,514			—			175,367
Operating expenses
General and administrative expenses		—		33,164			80			2,186			—			35,430
Sales and marketing expenses		—		38,111			—			4,226			—			42,337
Research and development expenses		—		43,535			—			1,096			—			44,631

Operating income (loss)		—		53,043			(80	)		6			—			52,969
Interest expense		—		(13,458	)		—			—			—			(13,458	)
Interest income		—		14			—			59			—			73
Other income		—		1,693			—			1,027			—			2,720
Equity in losses (earnings) of affiliates		20,352		1,849			—			—			(22,201	)		—

Income (loss) before income taxes		20,352		43,141			(80	)		1,092			(22,201	)		42,304
Provision (benefit) for income taxes		—		22,789			(28	)		(809	)		—			21,952

Net income (loss)		20,352		20,352			(52	)		1,901			(22,201	)		20,352

Foreign currency translation		—		—			—			1,303			—			1,303
Income tax expense related to items of other comprehensive (loss) income		—		—			—			—			—			—

Total other comprehensive (loss) income	$	20,352	$	20,352		$	(52	)	$	3,204		$	(22,201	)	$	21,655

Condensed Consolidating Cash Flow Information
Year Ended December 31, 2011

	Lantheus Intermediate			LMI			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Eliminations			Total

Cash provided by operating activities	$	600		$	15,409		$	—	$	7,011		$	(600	)	$	22,420

Cash flows from investing activities
Capital expenditures		—			(7,023	)		—		(671	)		—			(7,694	)
Proceeds from dividend		149,400			—			—		—			(149,400	)		—

Cash provided by (used in) investing activities		149,400			(7,023	)		—		(671	)		(149,400	)		(7,694	)

Cash flows from financing activities
Proceeds from issuance of debt		—			152,250			—		—			—			152,250
Consent solicitation fee		—			(3,750	)		—		—			—			(3,750	)
Debt issuance costs		—			(5,491	)		—		—			—			(5,491	)
Proceeds from line of credit		—			10,000			—		—			—			10,000
Payments on line of credit		—			(10,000	)		—		—			—			(10,000	)
Payment of dividend		(150,000	)		(150,000	)		—		—			150,000			(150,000	)

Cash used in financing activities		(150,000	)		(6,991	)		—		—			150,000			(6,991	)

Effect of foreign exchange rate on cash		—			—			—		(134	)		—			(134	)

Increase in cash and cash equivalents		—			1,395			—		6,206			—			7,601
Cash and cash equivalents, beginning of year		—			19,079			—		13,927			—			33,006

Cash and cash equivalents, end of year	$	—		$	20,474		$	—	$	20,133		$	—		$	40,607

Condensed Consolidating Cash Flow Information
Year Ended December 31, 2010

	Lantheus Intermediate			LMI			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Eliminations			Total

Cash provided by operating activities	$	65,698		$	22,344		$	—	$	6,055		$	(67,780	)	$	26,317

Cash flows from investing activities
Capital expenditures		—			(7,005	)		—		(1,330	)		—			(8,335	)
Proceeds from dividend		98,078			—			—		—			(98,078	)		—
Acquisition of intangibles		—			(215	)		—		—			—			(215	)

Cash provided by (used in) investing activities		98,078			(7,220	)		—		(1,330	)		(98,078	)		(8,550	)

Cash flows from financing activities
Proceeds from issuance of debt		—			250,000			—		—			—			250,000
Payment of term loan		—			(93,649	)		—		—			—			(93,649	)
Debt issuance costs		—			(10,125	)		—		—			—			(10,125	)
Payment of dividend		(163,776	)		(163,776	)		—		(2,082	)		165,858			(163,776	)

Cash used in financing activities		(163,776	)		(17,550	)		—		(2,082	)		165,858			(17,550	)

Effect of foreign exchange rate on cash		—			—			—		1,309			—			1,309

(Decrease)Increase in cash and cash equivalents	$	—		$	(2,426	)	$	—	$	3,952		$	—		$	1,526
Cash and cash equivalents, beginning of year		—			21,505			—		9,975			—			31,480

Cash and cash equivalents, end of year	$	—		$	19,079		$	—	$	13,927		$	—		$	33,006

Condensed Consolidating Cash Flow Information
December 31, 2009

	Lantheus Intermediate		LMI			Guarantor Subsidiary		Non-Guarantor Subsidiaries			Eliminations		Total

Cash provided by operating activities	$	—	$	90,890		$	—	$	4,893		$	—	$	95,783

Cash flows from investing activities
Capital expenditures		—		(6,906	)		—		(1,950	)		—		(8,856	)
Acquisition of intangibles		—		(29,495	)		—		—			—		(29,495	)

Cash used in investing activities		—		(36,401	)		—		(1,950	)		—		(38,351	)

Cash flows from financing activities
Payment on term loan		—		(49,102	)		—		—			—		(49,102	)
Proceeds from line of credit		—		28,000			—		—			—		28,000
Payment on line of credit		—		(28,000	)		—		—			—		(28,000	)

Cash used in financing activities		—		(49,102	)		—		—			—		(49,102	)

Effect of foreign exchange rate on cash		—		—			—		2,114			—		2,114

Increase in cash and cash equivalents	$	—	$	5,387		$	—	$	5,057		$	—	$	10,444
Cash and cash equivalents, beginning of year		—		16,118			—		4,918			—		21,036

Cash and cash equivalents, end of year	$	—	$	21,505		$	—	$	9,975		$	—	$	31,480

Subsequent Events

12 Months Ended

Dec. 31, 2011

Subsequent Events

Subsequent Events

21. Subsequent Events

On March 20, 2012, BVL and LMI: (i) terminated their original manufacturing agreement and entered into (i) a Settlement and Mutual Release Agreement (the "Settlement Agreement"); (ii) a Transition Services Agreement (the "Transition Services Agreement"), under which BVL will manufacture for LMI an initial supply of Definity, Cardiolite, Neurolite, and certain TechneLite accessories; and (iii) a Manufacturing and Service Contract (the "Manufacturing and Service Contract") under which BVL will manufacture for LMI supplies of Definity, Cardiolite, Neurolite, and certain TechneLite accessories following the initial supply provided under the Transition Services Agreement through 2013.

•

In the Settlement Agreement, LMI and BVL agreed to a broad mutual waiver and release for all matters that occurred prior to the date of the Settlement Agreement, a covenant not to sue and a settlement payment to LMI in the amount of $30.0 million.

•

Under the Transition Services Agreement, BVL will manufacture for LMI an initial supply of Definity, Cardiolite, Neurolite and certain TechneLite accessories, and will make weekly payments to LMI, up to an aggregate of $5.0 million, based on the timing of BVL's delivery of the initial supply of LMI's products.

•

Under the Manufacturing and Service Contract, BVL will manufacture for LMI supplies of Definity, Cardiolite, Neurolite and certain TechneLite accessories following the initial supply provided under the Transition Services Agreement. The agreement expires on December 31, 2013.