##### 



Exhibit 99.2
 AUDITED CONSOLIDATED FINANCIAL STATEMENTS
 FOR THE YEAR ENDED DECEMBER 31, 2007




---



##### 



THE THOMSON CORPORATION
 INDEX
TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
 PageManagements
responsibility for the consolidated financial statements
    
    2Managements
report on internal control over financial reporting
    
    3Independent
auditors report
    
    4Consolidated
statement of earnings for the years ended December 31, 2007 and 2006
    
    5Consolidated
balance sheets as of December 31, 2007 and 2006
    
    6Consolidated
statement of cash flow for the years ended December 31, 2007 and 2006
    
    7Consolidated
statement of changes in shareholders equity for the years ended December 31, 2007 and 2006
    
    8Notes to the consolidated financial statements
    
    9.1
 1




---



##### 



Managements Responsibility for the Consolidated Financial Statements
   /s/ Richard J. Harrington
    
    /s/ Robert D. DaleoRichard J. Harrington
    
    Robert D. DaleoPresident & Chief Executive Officer
    
    Executive Vice President & Chief Financial Officer
  2




---



##### 



Managements Report on Internal Control over Financial Reporting
    Internal
Control  Integrated Framework
 /s/ Richard J. Harrington
    
    /s/ Robert D. DaleoRichard J. Harrington
    
    Robert D. DaleoPresident & Chief Executive Officer
    
    Executive Vice President & Chief Financial Officer
  3




---



##### 



INDEPENDENT AUDITORS REPORT
 To the shareholders of The Thomson Corporation:
  Consolidated Financial Statements
     Internal Control over Financial Reporting
 Internal Control  Integrated Framework
    Internal
Control  Integrated Framework
 
 Chartered Accountants, Licensed Public Accountants
 4




---



##### 



The Thomson Corporation
 Consolidated Statement of Earnings
 Year endedDecember 312007
    
    2006(millions of U.S. dollars, except per common share amounts)
    
    
    
    
    
    (note 8)Revenues
    
    
    7,296
    
    
    
    6,591Cost of sales, selling, marketing, general and administrative expenses
    
    
    (5,275
    )
    
    
    (4,665
    )Depreciation (note 11 and 12)
    
    
    (468
    )
    
    
    (438
    )Amortization (note 13)
    
    
    (256
    )
    
    
    (240
    )Operating profit
    
    
    1,297
    
    
    
    1,248Net other (expense) income (note 5)
    
    
    (34
    )
    
    
    1Net interest expense and other financing costs (note 6)
    
    
    (12
    )
    
    
    (221
    )Income taxes (note 7)
    
    
    (155
    )
    
    
    (116
    )Earnings from continuing operations
    
    
    1,096
    
    
    
    912Earnings from discontinued operations, net of tax (note 8)
    
    
    2,908
    
    
    
    208Net earnings
    
    
    4,004
    
    
    
    1,120Dividends declared on preference shares (note 16)
    
    
    (6
    )
    
    
    (5
    )Earnings attributable to common shares
    
    
    3,998
    
    
    
    1,115Earnings per common share(note 9):Basic earnings per common share:From continuing operations
    
    $
    1.70
    
    
    $
    1.41From discontinued operations
    
    $
    4.54
    
    
    $
    0.32Basic earnings per common share
    
    $
    6.24
    
    
    $
    1.73Diluted earnings per common share:From continuing operations
    
    $
    1.69
    
    
    $
    1.41From discontinued operations
    
    $
    4.51
    
    
    $
    0.32Diluted earnings per common share
    
    $
    6.20
    
    
    $
    1.73
  5




---



##### 



The Thomson Corporation
 Consolidated Balance Sheet
 December 312007
    
    
    2006(millions of U.S. dollars)
    
    
    
    
    
    (note 8)AssetsCash and cash equivalents
    
    
    7,497
    
    
    
    334Accounts receivable, net of allowances of $81 million
(2006 - $97 million) (note 10)
    
    
    1,565
    
    
    
    1,364Prepaid expenses and other current assets
    
    
    508
    
    
    
    368Deferred income taxes (note 7)
    
    
    104
    
    
    
    153Current assets of discontinued operations (note 8)
    
    
    4
    
    
    
    1,046Current assets
    
    
    9,678
    
    
    
    3,265Computer hardware and other property, net (note 11)
    
    
    731
    
    
    
    624Computer software, net (note 12)
    
    
    721
    
    
    
    647Identifiable intangible assets, net (note 13)
    
    
    3,438
    
    
    
    3,451Goodwill (note 14)
    
    
    6,935
    
    
    
    6,538Other non-current assets
    
    
    1,322
    
    
    
    1,092Non-current assets of discontinued operations (note 8)
    
    
    6
    
    
    
    4,525Total assets
    
    
    22,831
    
    
    
    20,142Liabilities and shareholders equityLiabilitiesShort-term indebtedness (note 15)
    
    
    183
    
    
    
    333Accounts payable and accruals
    
    
    1,532
    
    
    
    1,305Deferred revenue
    
    
    1,108
    
    
    
    954Current portion of long-term debt (note 15)
    
    
    412
    
    
    
    264Current liabilities of discontinued operations (note 8)
    
    
    4
    
    
    
    883Current liabilities
    
    
    3,239
    
    
    
    3,739Long-term debt (note 15)
    
    
    4,264
    
    
    
    3,681Other non-current liabilities
    
    
    783
    
    
    
    785Deferred income taxes (note 7)
    
    
    974
    
    
    
    1,007Non-current liabilities of discontinued operations (note 8)
    
    
    
    
    
    
    449Total liabilities
    
    
    9,260
    
    
    
    9,661Shareholders equityCapital (note 16)
    
    
    2,932
    
    
    
    2,799Retained earnings
    
    
    10,355
    
    
    
    7,169Accumulated other comprehensive income
    
    
    284
    
    
    
    513Total shareholders equity
    
    
    13,571
    
    
    
    10,481Total liabilities and shareholders equity
    
    
    22,831
    
    
    
    20,142
    /s/ David Thomson
    
    /s/ Richard J. HarringtonDavid Thomson
    
    Richard J. HarringtonDirector
    
    Director
 6




---



##### 



The Thomson Corporation
 Consolidated Statement of Cash Flow
 Year endedDecember 312007
    
    
    2006(millions of U.S. dollars)
    
    
    
    
    (note 8)Cash provided by (used in):Operating ActivitiesNet earnings
    
    
    4,004
    
    
    
    1,120Remove earnings from discontinued operations
    
    
    (2,908
    )
    
    
    (208
    )Add back (deduct) items not involving cash:Depreciation (notes 11 and 12)
    
    
    468
    
    
    
    438Amortization (note 13)
    
    
    256
    
    
    
    240Net gains on disposals of businesses and
investments (note 5)
    
    
    (8
    )
    
    
    (47
    )Deferred income taxes (note 7)
    
    
    (124
    )
    
    
    (121
    )Other, net
    
    
    258
    
    
    
    204Pension contributions (note 17)
    
    
    (3
    )
    
    
    (23
    )Changes in working capital and other items (note 21)
    
    
    (133
    )
    
    
    (50
    )Cash provided by operating activities 
discontinued operations (note 8)
    
    
    6
    
    
    
    572Net cash provided by operating activities
    
    
    1,816
    
    
    
    2,125Investing ActivitiesAcquisitions, less cash therein of $19 million (2006
 $11 million) (note 19)
    
    
    (488
    )
    
    
    (744
    )Proceeds from disposals
    
    
    18
    
    
    
    88Capital expenditures, less proceeds from disposals
of $3 million (2006  $3 million)
    
    
    (608
    )
    
    
    (452
    )Other investing activities
    
    
    (37
    )
    
    
    (26
    )Capital expenditures of discontinued operations
(note 8)
    
    
    (97
    )
    
    
    (185
    )Other investing activities of discontinued operations
    
    
    (2
    )
    
    
    (17
    )Net proceeds from disposals of discontinued
operations (note 8)
    
    
    7,151
    
    
    
    81Acquisitions by discontinued operations
    
    
    (54
    )
    
    
    (35
    )Net cash provided by (used in) investing activities
    
    
    5,883
    
    
    
    (1,290
    )Financing ActivitiesProceeds from debt (note 15)
    
    
    794
    
    
    
    Repayments of debt (note 15)
    
    
    (249
    )
    
    
    (88
    )Net (repayments) borrowings under short-term loan
facilities
    
    
    (180
    )
    
    
    108Purchase of sterling call options (note 15)
    
    
    (76
    )
    
    
    Repurchase of common shares (note 16)
    
    
    (168
    )
    
    
    (412
    )Dividends paid on preference shares (note 16)
    
    
    (6
    )
    
    
    (5
    )Dividends paid on common shares (note 16)
    
    
    (612
    )
    
    
    (553
    )Other financing activities, net
    
    
    33
    
    
    
    38Net cash used in financing activities
    
    
    (464
    )
    
    
    (912
    )Translation adjustments
    
    
    (72
    )
    
    
    4Increase (decrease) in cash and cash equivalents
    
    
    7,163
    
    
    
    (73
    )Cash and cash equivalents at beginning of period
    
    
    334
    
    
    
    407Cash and cash equivalents at end of period
    
    
    7,497
    
    
    
    334
   7




---



##### 



The Thomson Corporation
 Consolidated Statement of Changes In Shareholders Equity
 Stated
    
    
    
    
    
    
    
    
    
    
    
    
    
    Accumulated other
    
    Total retainedshare
    
    Contributed
    
    Total
    
    Retained
    
    comprehensive
    
    earnings(millions of U.S. dollars)
    
    capital(1)
    
    surplus
    
    capital
    
    earnings
    
    income (AOCI)
    
    and AOCI
    
    TotalBalance, December 31, 2006
    
    
    2,642
    
    
    
    157
    
    
    
    2,799
    
    
    
    7,169
    
    
    
    513
    
    
    
    7,682
    
    
    
    10,481Opening balance adjustment for income tax accounting change
(note 2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (33
    )
    
    
    
    
    
    
    (33
    )
    
    
    (33
    )Balance, January 1, 2007
    
    
    2,642
    
    
    
    157
    
    
    
    2,799
    
    
    
    7,136
    
    
    
    513
    
    
    
    7,649
    
    
    
    10,448Comprehensive income:Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,004
    
    
    
    
    
    
    
    4,004
    
    
    
    4,004Unrecognized net loss on cash flow hedges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (63
    )
    
    
    (63
    )
    
    
    (63
    )Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    89
    
    
    
    89
    
    
    
    89Net gain reclassified to income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (255
    )
    
    
    (255
    )
    
    
    (255
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,004
    
    
    
    (229
    )
    
    
    3,775
    
    
    
    3,775Dividends declared on preference shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6
    )
    
    
    
    
    
    
    (6
    )
    
    
    (6
    )Dividends declared on common shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (628
    )
    
    
    
    
    
    
    (628
    )
    
    
    (628
    )Common shares issued under Dividend Reinvestment Plan (DRIP)
    
    
    16
    
    
    
    
    
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16Repurchase of common shares (note 16)
    
    
    (17
    )
    
    
    
    
    
    
    (17
    )
    
    
    (151
    )
    
    
    
    
    
    
    (151
    )
    
    
    (168
    )Effect of stock compensation plans and other plans
    
    
    86
    
    
    
    48
    
    
    
    134
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    134Balance, December 31, 2007
    
    
    2,727
    
    
    
    205
    
    
    
    2,932
    
    
    
    10,355
    
    
    
    284
    
    
    
    10,639
    
    
    
    13,571
 Stated
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total retainedshare
    
    Contributed
    
    Total
    
    Retained
    
    
    
    
    
    earnings and(millions of U.S. dollars)
    
    capital(1)
    
    surplus
    
    capital
    
    earnings
    
    AOCI
    
    AOCI
    
    TotalBalance, December 31, 2005
    
    
    2,599
    
    
    
    127
    
    
    
    2,726
    
    
    
    6,992
    
    
    
    245
    
    
    
    7,237
    
    
    
    9,963Comprehensive income:Opening balance adjustment for net deferred gain on cash flow hedges (note 2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51
    
    
    
    51
    
    
    
    51Balance, January 1, 2006
    
    
    2,599
    
    
    
    127
    
    
    
    2,726
    
    
    
    6,992
    
    
    
    296
    
    
    
    7,288
    
    
    
    10,014Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,120
    
    
    
    
    
    
    
    1,120
    
    
    
    1,120Unrecognized net gain on cash flow hedges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    8
    
    
    
    8Foreign currency translation adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    230
    
    
    
    230
    
    
    
    230Net gain reclassified to income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21
    )
    
    
    (21
    )
    
    
    (21
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,120
    
    
    
    217
    
    
    
    1,337
    
    
    
    1,337Dividends declared on preference shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    (5
    )
    
    
    (5
    )Dividends declared on common shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (567
    )
    
    
    
    
    
    
    (567
    )
    
    
    (567
    )Common shares issued under DRIP
    
    
    14
    
    
    
    
    
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14Repurchase of common shares (note 16)
    
    
    (41
    )
    
    
    
    
    
    
    (41
    )
    
    
    (371
    )
    
    
    
    
    
    
    (371
    )
    
    
    (412
    )Effect of stock compensation plans
    
    
    70
    
    
    
    30
    
    
    
    100
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    100Balance, December 31, 2006
    
    
    2,642
    
    
    
    157
    
    
    
    2,799
    
    
    
    7,169
    
    
    
    513
    
    
    
    7,682
    
    
    
    10,481
 
 (1)
    
    Includes both common and preference share capital (note 16).  8




---



##### 



The Thomson Corporation
 Notes to Consolidated Financial Statements
 (unless otherwise stated, all amounts are in millions of U.S. dollars)
 Note 1: Summary of Significant Accounting Policies
 Principles of Consolidation
  Accounting Estimates
  Foreign Currency
  Revenue Recognition
  
    
    persuasive evidence of an arrangement exists;
    
    delivery has occurred;
    
    the fee is fixed or determinable; and
    
    collectibility is probable.
   9.1




---



##### 



Subscription-Based Products (Excluding Software)
  Multiple Element Arrangements
   Software-Related Products and Services
  Software Revenue
Recognition
   9.2




---



##### 



Other Service Contracts
  Employee Future Benefits
  Cash and Cash Equivalents
  Long-lived Assets
  Computer Hardware and Other Property
  Computer hardware
    
    3-5 yearsBuildings and building improvements
    
    5-40 yearsFurniture, fixtures and equipment
    
    3-10 years
 Computer Software
 Capitalized Software for Internal Use
  9.3




---



##### 



Capitalized Software to be Marketed
  Identifiable Intangible Assets and Goodwill
  Identifiable Intangible Assets
  Trade names
    
    2-30 yearsCustomer relationships
    
    1-40 yearsDatabases and content
    
    2-25 yearsPublishing rights
    
    30 yearsOther
    
    2-29 years
   Goodwill
  
    
    In the first step, the fair value of each reporting unit is determined. If the
fair value of a reporting unit is less than its carrying value, this is an
indicator that the goodwill assigned to that reporting unit might be impaired,
which requires performance of the second step.
 9.4




---



##### 




    
    In the second step, the fair value of the reporting unit is allocated to the
assets and liabilities of the reporting unit as if it had just been acquired in a
business combination, and as if the purchase price was equivalent to the fair value
of the reporting unit. The excess of the fair value of the reporting unit over the
amounts assigned to its assets and liabilities is referred to as the implied fair
value of goodwill. The implied fair value of the reporting units goodwill is then
compared to the actual carrying value of goodwill. If the implied fair value is
less than the carrying value, an impairment loss is recognized for that excess.
  Disposal of Long-lived Assets and Discontinued Operations
  Deferred Income Taxes
  Derivative Financial Instruments
  
    
    cross currency swap agreements to hedge foreign currency exposures on
non-U.S. dollar denominated debt;
    
    foreign currency contracts to hedge forecasted cash flows denominated in
currencies other than the functional currency of a particular Thomson subsidiary;
    
    interest rate swap agreements to manage the fixed versus floating interest rate
mix of debt. Such contracts require periodic exchange of payments without the
exchange of the notional principal amount upon which the payments are based; and
    
    treasury lock agreements to hedge against changes in interest rates for
anticipated debt offerings.
  9.5




---



##### 



Stock-Based Compensation Plans
 Stock Incentive Plan
  Stock Options
  Restricted Share Units
  Performance Restricted Share Units
  Phantom Stock Plan
  Employee Stock Purchase Plan
  9.6




---



##### 



Comparative Amounts
  Note 2: Changes in Accounting Policies
 Income Taxes
   
    
    First, the Company determines whether it is more likely than not that a tax
position will be sustained upon examination, including resolution of any related
appeals or litigation processes, based on the technical merits of the position. In
evaluating whether a tax position has met the more-likely-than-not recognition
threshold, the Company presumes that the position will be examined by the
appropriate taxing authority that has full knowledge of all relevant information.
 
    
    Second, a tax position that meets the more-likely-than-not recognition threshold
is measured to determine the amount of benefit to recognize in the financial
statements. The tax position is measured at the largest amount of benefit that is
greater than 50% likely of being realized upon ultimate settlement. If the tax
position does not meet the more-likely-than-not recognition threshold, no benefit
from the tax position is recorded.
    Financial Instruments and Comprehensive Income
 Capital Disclosures Financial
Instruments  Disclosures
 Comprehensive Income Financial Instruments  Recognition and Measurement Hedges
 9.7




---



##### 




    
    an increase of $53 million to Other non-current assets and Accumulated other
comprehensive income in the consolidated balance sheet relative to derivative
instruments that consisted primarily of interest rate contracts which convert
floating rate debt to fixed rate debt and qualify as cash flow hedges;
 
    
    a reclassification of $5 million from Other current assets and $3 million from
Other current liabilities to Accumulated other comprehensive income in the
consolidated balance sheet related primarily to previously deferred gains and
losses on settled cash flow hedges;
 
    
    an increase of $16 million to Other non-current assets and Long-term debt in
the consolidated balance sheet related to derivative instruments and their related
hedged items. These derivative instruments consist primarily of interest rate
contracts to convert fixed rate debt to floating and qualify as fair value
hedges; and
 
    
    a presentational reclassification of amounts previously recorded in Cumulative
translation adjustment to Accumulated other comprehensive income.
  Discontinued Operations
 Discontinued
Operations
 Stock-Based Compensation
 Stock-Based Compensation for Employees Eligible
to Retire Before the Vesting Date
 9.8




---



##### 



Note 3: Proposed Acquisition of Reuters Group PLC
 Overview
   Consideration
  Ownership
  Antitrust/Regulatory Review Process
  Shareholder Approvals
  9.9




---



##### 



Note 4: THOMSON plus Program
 plus
 
    
    Realigning its business units into five segments;
    
    Streamlining and consolidating certain functions such as finance, accounting and
business systems;
    
    Leveraging infrastructure and technology for customer contact centers;
    
    Establishing low-cost shared service centers;
    
    Consolidating certain technology infrastructure operations such as voice and
data networks, data centers, storage and desktop support; and
    
    Re-engineering certain product development and production functions and
realigning particular sales forces within its business segments.
 plus
 plus.
  plus
 9.10




---



##### 



Note 5: Net Other (Expense) Income
  Year endedDecember 312007
    
    2006Net gains on disposals of businesses and investments
    
    
    8
    
    
    
    47Equity in earnings of unconsolidated affiliates
    
    
    4
    
    
    
    Other expense, net
    
    
    (46
    )
    
    
    (46
    )Net other (expense) income
    
    
    (34
    )
    
    
    1
 Net Gains on Disposals of Businesses and Investments
  Other Expense, net
  Rodriguez v. West Publishing Corp. and
Kaplan Inc.
 Note 6: Net Interest Expense and Other Financing Costs
  Year endedDecember 312007
    
    2006Interest income
    
    
    230
    
    
    
    24Interest expense on short-term indebtedness
    
    
    (19
    )
    
    
    (26
    )Interest expense on long-term debt
    
    
    (223
    )
    
    
    (219
    )(12
    )
    
    
    (221
    )
  9.11




---



##### 



Note 7: Income Taxes
  Year endedDecember 312007
    
    2006Canada
    
    
    (206
    )
    
    
    (242
    )U.S. and other jurisdictions
    
    
    1,457
    
    
    
    1,270Total earnings before taxes
    
    
    1,251
    
    
    
    1,028
  Year endedDecember 312007
    
    2006Canada:Current
    
    
    1
    
    
    
    1Deferred
    
    
    (46
    )
    
    
    (20
    )Total Canadian
    
    
    (45
    )
    
    
    (19
    )U.S. and other jurisdictions:Current
    
    
    278
    
    
    
    236Deferred
    
    
    (78
    )
    
    
    (101
    )Total U.S. and other jurisdictions
    
    
    200
    
    
    
    135Total worldwide
    
    
    155
    
    
    
    116
 9.12




---



##### 



Year endedDecember 312007
    
    2006Accrued expenses
    
    
    182
    
    
    
    181Deferred and stock-based compensation
    
    
    136
    
    
    
    124Accounts receivable allowances
    
    
    27
    
    
    
    32Tax loss and credit carryforwards
    
    
    1,013
    
    
    
    862Other
    
    
    81
    
    
    
    147Total deferred tax asset
    
    
    1,439
    
    
    
    1,346Valuation allowance
    
    
    (395
    )
    
    
    (441
    )Net deferred tax asset
    
    
    1,044
    
    
    
    905Intangible assets
    
    
    (1,184
    )
    
    
    (1,279
    )Other long-lived assets(1)
    
    
    (36
    )
    
    
    (37
    )Financial instruments
    
    
    (539
    )
    
    
    (273
    )Pension
    
    
    (130
    )
    
    
    (144
    )Other
    
    
    
    
    
    
    (16
    )Total deferred tax liability
    
    
    (1,889
    )
    
    
    (1,749
    )Net deferred tax liability
    
    
    (845
    )
    
    
    (844
    )
 
 (1)
    
    Other long-lived assets include Computer hardware and other property and Computer software.  9.13




---



##### 



Year endedDecember 312007
    
    2006Balance at beginning of year
    
    
    441
    
    
    
    412Additions due to losses with no benefit
    
    
    7
    
    
    
    68Prior year Canadian net operating losses with no benefit(1)
    
    
    107
    
    
    
    Releases of valuation allowances to income
    
    
    (21
    )
    
    
    (26
    )Reduction due to change in deferred tax liability related to debt instruments(2)
    
    
    (244
    )
    
    
    (26
    )Translation
    
    
    113
    
    
    
    5Other items
    
    
    (8
    )
    
    
    8Balance at end of year
    
    
    395
    
    
    
    441
 
 (1)
    
    Recognition results from current year change in tax law.(2)
    
    Canadian tax losses are first offset by deferred tax liabilities not related to indefinite
lived intangible assets before computing the required valuation allowance. The deferred tax
liability increased in 2007 and 2006 from the revaluation of debt and currency swaps. As the
deferred tax liability increased, the requirement for the valuation allowance decreased by the same
amount.  Year endedDecember 312007
    
    2006Earnings before taxes
    
    
    1,251
    
    
    
    1,028Income taxes at the Canadian corporate tax rate of 35.4%
    
    
    443
    
    
    
    364Differences attributable to:Effect of income taxes recorded at rates different from the Canadian tax rate
    
    
    (302
    )
    
    
    (276
    )Additions to valuation allowance due to losses with no benefit
    
    
    7
    
    
    
    68Releases of valuation allowances to income
    
    
    (21
    )
    
    
    (26
    )Tax on debt instruments(1)
    
    
    42
    
    
    
    Impact of tax law changes
    
    
    (14
    )
    
    
    Net change to contingent tax liabilities
    
    
    14
    
    
    
    (5
    )Other, net
    
    
    (14
    )
    
    
    (9
    )Income tax provision on continuing operations
    
    
    155
    
    
    
    116
 
 (1)
    
    Represents tax on settlement of certain debt instruments for which there is no corresponding
pre-tax income statement gain.  9.14




---



##### 



Balance at January 1, 2007
    
    
    205Additions based upon tax provision related to current year
    
    
    14Additions for tax positions of prior years
    
    
    6Reductions for tax positions of prior years
    
    
    (16
    )Settlements
    
    
    (11
    )Reductions due to disposal of businesses and other
    
    
    (48
    )Balance at December 31, 2007
    
    
    150
  9.15




---



##### 



Jurisdiction
    
    Tax YearsCanada  Federal and Ontario provincial
    
    
    1997 to 2007United States  Federal
    
    
    2003 to 2007United Kingdom
    
    
    2005 to 2007
  Note 8: Discontinued Operations
      
    
    In July 2007, the Company sold Thomson Learnings higher education, careers and
library reference businesses to funds advised by Apax Partners and OMERS Capital
Partners. As a result of the sale, the Company received gross proceeds of
approximately $7.6 billion and recognized a post-tax gain of $2.7 billion.
    
    In May 2007, the Company sold NETg, a leading provider of continuing corporate
education and training, to SkillSoft PLC for approximately $270 million and
recorded a post-tax loss of $10 million.
    
    In October 2007, the Company sold Prometric, a provider of assessment services,
to ETS for $310 million in cash and a 6% promissory note for approximately
$79 million due in 2014. The principal amount of the note, which was previously
reported as $125 million, was adjusted to $79 million reflecting adjustments made
based on the continuity of offerings from certain customer contracts. The
promissory note was reflected in the financial statements at its estimated fair
value of approximately $60 million to account for the difference between the market
and stated rates of interest. The Company recognized a post-tax gain of $18 million
related to this transaction. The principal amount of the note is subject to further
adjustment based on certain contingencies.
 9.16




---



##### 



9.17




---



##### 



Balance Sheet
 December 31, 2006Legal
    
    
    Learning
    
    
    Healthcare
    
    
    TotalCurrent assets:Accounts receivable, net of allowances
    
    
    13
    
    
    
    538
    
    
    
    36
    
    
    
    587Other current assets
    
    
    5
    
    
    
    322
    
    
    
    6
    
    
    
    333Deferred income taxes
    
    
    
    
    
    
    124
    
    
    
    2
    
    
    
    126Total current assets
    
    
    18
    
    
    
    984
    
    
    
    44
    
    
    
    1,046Non-current assets:Computer hardware and other property
    
    
    7
    
    
    
    157
    
    
    
    7
    
    
    
    171Computer software
    
    
    6
    
    
    
    145
    
    
    
    1
    
    
    
    152Identifiable intangible assets
    
    
    35
    
    
    
    838
    
    
    
    18
    
    
    
    891Goodwill
    
    
    13
    
    
    
    3,003
    
    
    
    24
    
    
    
    3,040Other non-current assets
    
    
    1
    
    
    
    270
    
    
    
    
    
    
    
    271Total non-current assets
    
    
    62
    
    
    
    4,413
    
    
    
    50
    
    
    
    4,525Current liabilities:Accounts payable and accruals
    
    
    14
    
    
    
    499
    
    
    
    25
    
    
    
    538Deferred revenue
    
    
    48
    
    
    
    260
    
    
    
    20
    
    
    
    328Other current liabilities
    
    
    16
    
    
    
    1
    
    
    
    
    
    
    
    17Total current liabilities
    
    
    78
    
    
    
    760
    
    
    
    45
    
    
    
    883Non-current liabilities:Other non-current liabilities
    
    
    4
    
    
    
    38
    
    
    
    2
    
    
    
    44Deferred income taxes
    
    
    12
    
    
    
    385
    
    
    
    8
    
    
    
    405Total non-current liabilities
    
    
    16
    
    
    
    423
    
    
    
    10
    
    
    
    449
 9.18




---



##### 



Statement of Earnings
 Year endedDecember 31, 2007Legal
    
    
    Learning
    
    
    Healthcare
    
    
    Other
    
    
    TotalRevenues from discontinued operations
    
    
    66
    
    
    
    968
    
    
    
    43
    
    
    
    
    
    
    
    1,077Earnings (loss) from discontinued operations
before income taxes
    
    
    (13
    )
    
    
    25
    
    
    
    (3
    )
    
    
    (1
    )
    
    
    8Gain (loss) on sale of discontinued operations
    
    
    (5
    )
    
    
    3,699
    
    
    
    138
    
    
    
    
    
    
    
    3,832Income taxes
    
    
    18
    
    
    
    (949
    )
    
    
    (11
    )
    
    
    10
    
    
    
    (932
    )Earnings from discontinued operations
    
    
    
    
    
    
    2,775
    
    
    
    124
    
    
    
    9
    
    
    
    2,908
 Year ended December 31, 2006Legal
    
    
    Learning
    
    
    Healthcare
    
    
    Other
    
    
    TotalRevenues from discontinued operations
    
    
    131
    
    
    
    2,393
    
    
    
    129
    
    
    
    
    
    
    
    2,653Earnings (loss) from discontinued operations
before income taxes
    
    
    (17
    )
    
    
    237
    
    
    
    27
    
    
    
    
    
    
    
    247Gain on sale of discontinued operations
    
    
    4
    
    
    
    3
    
    
    
    40
    
    
    
    5
    
    
    
    52Income taxes
    
    
    10
    
    
    
    (84
    )
    
    
    (24
    )
    
    
    7
    
    
    
    (91
    )Earnings (loss) from discontinued operations
    
    
    (3
    )
    
    
    156
    
    
    
    43
    
    
    
    12
    
    
    
    208
    Note 9: Earnings per Common Share
   9.19




---



##### 



2007
    
    
    2006Earnings from continuing operations
    
    
    1,096
    
    
    
    912Dividends declared on preference shares
    
    
    (6
    )
    
    
    (5
    )Earnings from continuing operations attributable to common shares
    
    
    1,090
    
    
    
    907
  2007
    
    
    2006Weighted-average number of common shares outstanding
    
    
    640,304,221
    
    
    
    643,454,420Vested deferred share units
    
    
    853,497
    
    
    
    677,104Basic
    
    
    641,157,718
    
    
    
    644,131,524Effect of stock and other incentive plans
    
    
    3,273,078
    
    
    
    1,894,821Diluted
    
    
    644,430,796
    
    
    
    646,026,345
  Note 10: Accounts Receivable Allowances
  2007
    
    
    2006Balance at beginning of year
    
    
    97
    
    
    
    102Charges
    
    
    164
    
    
    
    139Write-offs
    
    
    (180
    )
    
    
    (147
    )Other
    
    
    
    
    
    
    3Balance at end of year
    
    
    81
    
    
    
    97
   9.20




---



##### 



Note 11: Computer Hardware and Other Property
  Net computerhardware andAccumulated
    
    
    otherAs of December 31, 2007
    
    Cost
    
    
    depreciation
    
    
    propertyComputer hardware
    
    
    1,018
    
    
    
    (697
    )
    
    
    321Land, buildings and building improvements
    
    
    523
    
    
    
    (234
    )
    
    
    289Furniture, fixtures and equipment
    
    
    331
    
    
    
    (210
    )
    
    
    1211,872
    
    
    
    (1,141
    )
    
    
    731
 Net computerhardware andAccumulated
    
    
    otherAs of December 31, 2006
    
    Cost
    
    
    depreciation
    
    
    propertyComputer hardware
    
    
    957
    
    
    
    (678
    )
    
    
    279Land, buildings and building improvements
    
    
    463
    
    
    
    (206
    )
    
    
    257Furniture, fixtures and equipment
    
    
    297
    
    
    
    (209
    )
    
    
    881,717
    
    
    
    (1,093
    )
    
    
    624
  Note 12: Computer Software
  NetAccumulated
    
    
    computerAs of December 31, 2007
    
    Cost
    
    
    amortization
    
    
    softwareCapitalized software for internal use
    
    
    2,040
    
    
    
    (1,419
    )
    
    
    621Capitalized software to be marketed
    
    
    266
    
    
    
    (166
    )
    
    
    1002,306
    
    
    
    (1,585
    )
    
    
    721
 9.21




---



##### 



NetAccumulated
    
    
    computerAs of December 31, 2006
    
    Cost
    
    
    amortization
    
    
    softwareCapitalized software for internal use
    
    
    1,791
    
    
    
    (1,228
    )
    
    
    563Capitalized software to be marketed
    
    
    212
    
    
    
    (128
    )
    
    
    842,003
    
    
    
    (1,356
    )
    
    
    647
  Note 13: Identifiable Intangible Assets
  Gross
    
    
    
    
    
    
    Netidentifiable
    
    
    
    
    
    
    identifiableintangible
    
    
    Accumulated
    
    
    intangibleAs of December 31, 2007
    
    assets
    
    
    amortization
    
    
    assetsFinite useful lives:Trade names
    
    
    250
    
    
    
    (121
    )
    
    
    129Customer relationships
    
    
    2,238
    
    
    
    (804
    )
    
    
    1,434Databases and content
    
    
    882
    
    
    
    (465
    )
    
    
    417Publishing rights
    
    
    1,275
    
    
    
    (637
    )
    
    
    638Other
    
    
    106
    
    
    
    (61
    )
    
    
    454,751
    
    
    
    (2,088
    )
    
    
    2,663Indefinite useful lives:Trade names
    
    
    775
    
    
    
    
    
    
    
    7755,526
    
    
    
    (2,088
    )
    
    
    3,438
 9.22




---



##### 



Gross
    
    
    
    
    
    
    Netidentifiable
    
    
    
    
    
    
    identifiableintangible
    
    
    Accumulated
    
    
    intangibleAs of December 31, 2006
    

assets
    
    
    amortization
    
    
    assetsFinite useful lives:Trade names
    
    
    207
    
    
    
    (94
    )
    
    
    113Customer relationships
    
    
    2,070
    
    
    
    (675
    )
    
    
    1,395Databases and content
    
    
    852
    
    
    
    (408
    )
    
    
    444Publishing rights
    
    
    1,240
    
    
    
    (567
    )
    
    
    673Other
    
    
    85
    
    
    
    (52
    )
    
    
    334,454
    
    
    
    (1,796
    )
    
    
    2,658Indefinite useful lives:Trade names
    
    
    793
    
    
    
    
    
    
    
    7935,247
    
    
    
    (1,796
    )
    
    
    3,451
    Note 14: Goodwill
  Tax &Legal
    
    
    Financial
    
    
    Accounting
    
    
    Scientific
    
    
    Healthcare
    
    
    TotalBalance at December 31, 2005
    
    
    2,810
    
    
    
    1,876
    
    
    
    518
    
    
    
    638
    
    
    
    91
    
    
    
    5,933Acquisitions
    
    
    64
    
    
    
    149
    
    
    
    18
    
    
    
    13
    
    
    
    284
    
    
    
    528Adjusted purchase price allocations
    
    
    1
    
    
    
    (1
    )
    
    
    
    
    
    
    (6
    )
    
    
    (7
    )
    
    
    (13
    )Translation and other, net
    
    
    57
    
    
    
    34
    
    
    
    
    
    
    
    10
    
    
    
    (11
    )
    
    
    90Balance at December 31, 2006
    
    
    2,932
    
    
    
    2,058
    
    
    
    536
    
    
    
    655
    
    
    
    357
    
    
    
    6,538Acquisitions
    
    
    24
    
    
    
    14
    
    
    
    193
    
    
    
    37
    
    
    
    
    
    
    
    268Adjusted purchase price allocations
    
    
    8
    
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )
    
    
    23
    
    
    
    27Translation and other, net
    
    
    10
    
    
    
    76
    
    
    
    1
    
    
    
    15
    
    
    
    
    
    
    
    102Balance at December 31, 2007
    
    
    2,974
    
    
    
    2,146
    
    
    
    730
    
    
    
    705
    
    
    
    380
    
    
    
    6,935
 9.23




---



##### 



Note 15: Financial Instruments
  Accounting Change
 Comprehensive Income Financial Instruments  Recognition and Measurement Hedges
 Carrying Amounts
  Fair Values
   9.24




---



##### 



Credit Risk
    Credit Facilities
     9.25




---



##### 



Short-term Indebtedness
  Long-term Debt and Related Derivative Instruments
  Carrying amount
    
    Fair valuePrimary
    
    
    
    
    
    Primarydebt
    
    Derivative
    
    debt
    
    DerivativeAs of December 31, 2007
    
    instruments
    
    instruments
    
    instruments
    
    instrumentsBank and other
    
    
    16
    
    
    
    
    
    
    
    16
    
    
    
    4.35% Notes, due 2009
    
    
    306
    
    
    
    (60
    )
    
    
    302
    
    
    
    (60
    )4.50% Notes, due 2009
    
    
    255
    
    
    
    (70
    )
    
    
    255
    
    
    
    (70
    )5.20% Notes, due 2014
    
    
    616
    
    
    
    (131
    )
    
    
    604
    
    
    
    (131
    )6.85% Medium-term notes, due 2011
    
    
    408
    
    
    
    (161
    )
    
    
    427
    
    
    
    (161
    )5.75% Notes, due 2008
    
    
    400
    
    
    
    
    
    
    
    400
    
    
    
    4.25% Notes, due 2009
    
    
    200
    
    
    
    
    
    
    
    199
    
    
    
    4.75% Notes, due 2010
    
    
    250
    
    
    
    
    
    
    
    251
    
    
    
    6.20% Notes, due 2012
    
    
    700
    
    
    
    
    
    
    
    729
    
    
    
    5.25% Notes, due 2013
    
    
    250
    
    
    
    
    
    
    
    248
    
    
    
    5.70% Notes, due 2014
    
    
    800
    
    
    
    
    
    
    
    808
    
    
    
    5.50% Debentures, due 2035
    
    
    400
    
    
    
    
    
    
    
    3567.74% Private placement, due 2010
    
    
    75
    
    
    
    
    
    
    
    81
    
    
    
    4,676
    
    
    
    (422
    )
    
    
    4,676
    
    
    
    (422
    )Current portion
    
    
    (412
    )
    
    
    4,264
    
    
    
    (422
    )
 9.26




---



##### 



Carrying amount
    
    Fair valuePrimary
    
    
    
    
    
    Primarydebt
    
    Derivative
    
    debt
    
    DerivativeAs of December 31, 2006
    
    instruments
    
    instruments
    
    instruments
    
    instrumentsBank and other
    
    
    111
    
    
    
    
    
    
    
    109
    
    
    
    6.50% Debentures, due 2007
    
    
    217
    
    
    
    (38
    )
    
    
    217
    
    
    
    (38
    )4.35% Notes, due 2009
    
    
    258
    
    
    
    (21
    )
    
    
    258
    
    
    
    (21
    )4.50% Notes, due 2009
    
    
    217
    
    
    
    (33
    )
    
    
    217
    
    
    
    (33
    )5.20% Notes, due 2014
    
    
    522
    
    
    
    (58
    )
    
    
    536
    
    
    
    (58
    )6.85% Medium-term notes, due 2011
    
    
    345
    
    
    
    (108
    )
    
    
    378
    
    
    
    (108
    )5.75% Notes, due 2008
    
    
    400
    
    
    
    
    
    
    
    401
    
    
    
    4.25% Notes, due 2009
    
    
    200
    
    
    
    
    
    
    
    195
    
    
    
    4.75% Notes, due 2010
    
    
    250
    
    
    
    
    
    
    
    245
    
    
    
    6.20% Notes, due 2012
    
    
    700
    
    
    
    
    
    
    
    723
    
    
    
    5.25% Notes, due 2013
    
    
    250
    
    
    
    
    
    
    
    246
    
    
    
    5.50% Debentures, due 2035
    
    
    400
    
    
    
    
    
    
    
    363
    
    
    
    7.74% Private placement, due 2010
    
    
    75
    
    
    
    
    
    
    
    81
    
    
    
    3,945
    
    
    
    (258
    )
    
    
    3,969
    
    
    
    (258
    )Current portion
    
    
    (264
    )
    
    
    383,681
    
    
    
    (220
    )
   Currency Risk Exposures
  Before currency hedging
    
    After currency hedgingarrangements
    
    arrangements(1)2007
    
    2006
    
    2007
    
    2006| | | |Canadian dollar
    
    
    1,584
    
    
    
    1,559
    
    
    
    
    
    
    
    U.S. dollar
    
    
    3,077
    
    
    
    2,348
    
    
    
    4,253
    
    
    
    3,703Other currencies
    
    
    15
    
    
    
    38
    
    
    
    15
    
    
    
    384,676
    
    
    
    3,945
    
    
    
    4,268
    
    
    
    3,741
 
 (1)
    
    Represents net cash outflow upon maturity and, therefore, excludes fair value adjustment of $14
million and $54 million at December 31, 2007 and 2006, respectively. 9.27




---



##### 



2008
    
    2009
    
    2010
    
    2011
    
    2012
    
    Thereafter
    
    TotalBefore currency hedging arrangements
    
    
    412
    
    
    
    764
    
    
    
    326
    
    
    
    408
    
    
    
    700
    
    
    
    2,066
    
    
    
    4,676After currency hedging arrangements(1)
    
    
    412
    
    
    
    634
    
    
    
    326
    
    
    
    254
    
    
    
    700
    
    
    
    1,942
    
    
    
    4,268
 
 (1)
    
    Represents net cash outflow upon maturity and, therefore, excludes fair value adjustment of $14
million and $54 million at December 31, 2007 and 2006, respectively. Interest Rate Risk Exposures
  Average
    
    
    
    
    
    
    
    
    
    Average2007
    
    interest rate
    
    % Share
    
    2006
    
    interest rate
    
    % ShareTotal fixed
    
    
    3,951
    
    
    
    5.5
    %
    
    
    93
    %
    
    
    3,218
    
    
    
    5.40
    %
    
    
    86
    %Total floating
    
    
    317
    
    
    
    5.2
    %
    
    
    7
    %
    
    
    523
    
    
    
    5.60
    %
    
    
    14
    %4,268
    
    
    
    5.5
    %
    
    
    100
    %
    
    
    3,741
    
    
    
    5.40
    %
    
    
    100
    %
   2007 Activity
  9.28




---



##### 



2006 Activity
  Foreign Exchange Contracts
  Hedging Program for Reuters Consideration
    Investments
  Risks arising from Financial Instruments
  9.29




---



##### 



Note 16: Capital
  Series II,cumulativeCommon Share Capital





    
    
    redeemableNumber of
    
    
    
    
    
    preference
    
    Contributedshares
    
    Stated capital
    
    share capital
    
    surplus
    
    Total capitalBalance, December 31, 2005
    
    
    648,948,992
    
    
    
    2,489
    
    
    
    110
    
    
    
    127
    
    
    
    2,726Common shares issued under
the Dividend Reinvestment
Plan (DRIP)
    
    
    347,840
    
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    14Effect of stock
compensation plans
    
    
    1,820,781
    
    
    
    70
    
    
    
    
    
    
    
    30
    
    
    
    100Repurchase of common shares
    
    
    (10,680,600
    )
    
    
    (41
    )
    
    
    
    
    
    
    
    
    
    
    (41
    )Balance, December 31, 2006
    
    
    640,437,013
    
    
    
    2,532
    
    
    
    110
    
    
    
    157
    
    
    
    2,799Common shares issued under
DRIP
    
    
    385,233
    
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    16Effect of stock
compensation plans and
other
    
    
    2,031,207
    
    
    
    86
    
    
    
    
    
    
    
    48
    
    
    
    134Repurchase of common shares
    
    
    (4,170,500
    )
    
    
    (17
    )
    
    
    
    
    
    
    
    
    
    
    (17
    )Balance, December 31, 2007
    
    
    638,682,953
    
    
    
    2,617
    
    
    
    110
    
    
    
    205
    
    
    
    2,932
 Thomson Common Shares
    Dividends
   9.30




---



##### 



Share Repurchase Program
  Average
    
    Number of SharesShares
    
    Price per
    
    Available forThree-month period ended
    
    Repurchased
    
    Share
    
    RepurchaseMarch 31, 2006
    
    
    4,570,000
    
    
    $
    36.83June 30, 2006
    
    
    3,110,000
    
    
    $
    39.58September 30, 2006
    
    
    1,710,600
    
    
    $
    39.27December 31, 2006
    
    
    1,289,400
    
    
    $
    41.41March 31, 2007
    
    
    1,305,000
    
    
    $
    41.74June 30, 2007
    
    
    495,000
    
    
    $
    42.68September 30, 2007
    
    
    
    
    
    
    December 31, 2007
    
    
    2,370,500
    
    
    $
    38.76
    
    
    
    12,629,500
  Series II, Cumulative Redeemable Preference Shares
  Capital Management
   9.31




---



##### 



DBRSStandard &
    
    LimitedMoodys
    
    Poors
    
    (DBRS)Long-term debt
    
    Baa1
    
    
    A-
    
    
    A (low      )Commercial paper
    
    
    
    
    
    
    
    
    
    R-1 (low)Trend/Outlook
    
    Stable
    
    Negative
    
    Stable
     As ofDecember 31,(millions of U.S. dollars)
    
    2007
    
    2006Short-term indebtedness
    
    
    183
    
    
    
    333Current portion of long-term debt
    
    
    412
    
    
    
    264Long-term debt
    
    
    4,264
    
    
    
    3,681Total debt
    
    
    4,859
    
    
    
    4,278Swaps
    
    
    (424
    )
    
    
    (257
    )Total debt after swaps
    
    
    4,435
    
    
    
    4,021Remove fair value adjustment of cash flow hedges(1)
    
    
    14
    
    
    
    54Less: Cash and cash equivalents
    
    
    (7,497
    )
    
    
    (334
    )Net debt
    
    
    (3,048
    )
    
    
    3,741
 
 (1)
    
    Amounts are removed to reflect net cash outflow upon maturity.  9.32




---



##### 



Note 17: Employee Future Benefits
  Defined Benefit Plans
   Otherpost-retirementPensions
    
    plans2007
    
    2006
    
    2007
    
    2006Assumptions used to determine net periodic pension expense:Expected long-term rate of return on plan assets
    
    
    7.2
    %
    
    
    7.3
    %
    
    
    N/A
    
    
    
    N/ADiscount rate
    
    
    5.5
    %
    
    
    5.4
    %
    
    
    5.9
    %
    
    
    5.7
    %Rate of compensation increase
    
    
    4.5
    %
    
    
    4.3
    %
    
    
    N/A
    (1)
    
    
    N/A
    (1)Assumptions used to determine benefit obligation:Discount rate
    
    
    6.1
    %
    
    
    5.5
    %
    
    
    6.1
    %
    
    
    5.9
    %Rate of compensation increase
    
    
    4.6
    %
    
    
    4.5
    %
    
    
    N/A
    (1)
    
    
    N/A
    (1)
 
 (1)
    
    At the end of 2007 and 2006 these plans consisted almost entirely of retired employees. 9.33




---



##### 



OtherPensions
    
    post-retirementFunded
    
    Unfunded
    
    plans2007
    
    2006
    
    2007
    
    2006
    
    2007
    
    2006Components of net periodic
benefit expense (income):Current service cost
    
    
    56
    
    
    
    57
    
    
    
    6
    
    
    
    6
    
    
    
    3
    
    
    
    3Interest cost
    
    
    135
    
    
    
    126
    
    
    
    12
    
    
    
    12
    
    
    
    10
    
    
    
    9Plan amendments
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    (3
    )
    
    
    (1
    )
    
    
    3Actual return on plan assets
    
    
    (287
    )
    
    
    (208
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Curtailment charge
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Gain on settlement of plan
    
    
    (34
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Special termination benefits
    
    
    6
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    Actuarial losses (gains)
    
    
    (88
    )
    
    
    15
    
    
    
    (8
    )
    
    
    (9
    )
    
    
    (3
    )
    
    
    (6
    )Subtotal
    
    
    (211
    )
    
    
    (7
    )
    
    
    12
    
    
    
    6
    
    
    
    9
    
    
    
    9Adjustments(1):Difference between expected and
actual return on plan assets
    
    
    128
    
    
    
    54
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Difference between actuarial loss
(gain) recognized and actual
actuarial loss (gain) on benefit
obligation
    
    
    125
    
    
    
    37
    
    
    
    9
    
    
    
    11
    
    
    
    6
    
    
    
    10Difference between amortization
of past service costs for year
and actual plan amendments for
year
    
    
    1
    
    
    
    (3
    )
    
    
    1
    
    
    
    4
    
    
    
    1
    
    
    
    (3
    )Amortization of transitional asset
    
    
    (1
    )
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Subtotal adjustments
    
    
    253
    
    
    
    87
    
    
    
    10
    
    
    
    15
    
    
    
    7
    
    
    
    7Net defined benefit plan expense
    
    
    42
    
    
    
    80
    
    
    
    22
    
    
    
    21
    
    
    
    16
    
    
    
    16
 
 (1)
    
    Adjustments reflect the deferral and amortization of experience gains and losses over
applicable periods. 9.34




---



##### 



OtherPensions
    
    post-retirementFunded
    
    Unfunded
    
    plans2007
    
    2006
    
    2007
    
    2006
    
    2007
    
    2006Benefit obligationBeginning benefit obligation
    
    
    2,498
    
    
    
    2,268
    
    
    
    207
    
    
    
    207
    
    
    
    164
    
    
    
    165Current service cost
    
    
    56
    
    
    
    57
    
    
    
    6
    
    
    
    6
    
    
    
    3
    
    
    
    3Interest cost
    
    
    135
    
    
    
    126
    
    
    
    12
    
    
    
    12
    
    
    
    10
    
    
    
    9Plan participants contributions
    
    
    5
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    Plan amendments
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    (3
    )
    
    
    (1
    )
    
    
    3Actuarial losses (gains)
    
    
    (88
    )
    
    
    15
    
    
    
    (8
    )
    
    
    (9
    )
    
    
    (3
    )
    
    
    (6
    )Acquisitions, net
    
    
    
    
    
    
    2
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    Curtailments
    
    
    (26
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Settlements
    
    
    (422
    )
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    Special termination benefits
    
    
    6
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    Benefits paid
    
    
    (114
    )
    
    
    (95
    )
    
    
    (9
    )
    
    
    (7
    )
    
    
    (10
    )
    
    
    (10
    )Translation adjustments
    
    
    40
    
    
    
    118
    
    
    
    3
    
    
    
    
    
    
    
    1
    
    
    
    Ending benefit obligation
    
    
    2,090
    
    
    
    2,498
    
    
    
    213
    
    
    
    207
    
    
    
    165
    
    
    
    164Plan assetsBeginning fair value of plan assets
    
    
    2,457
    
    
    
    2,181
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Actual return on plan assets
    
    
    287
    
    
    
    208
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Employer contributions
    
    
    25
    
    
    
    37
    
    
    
    10
    
    
    
    7
    
    
    
    9
    
    
    
    10Plan participants contributions
    
    
    5
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    Benefits paid
    
    
    (114
    )
    
    
    (95
    )
    
    
    (9
    )
    
    
    (7
    )
    
    
    (10
    )
    
    
    (10
    )Other, net
    
    
    (422
    )
    
    
    1
    
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    Translation adjustments
    
    
    41
    
    
    
    121
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Ending fair value of plan assets
    
    
    2,279
    
    
    
    2,457
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Funded status  (deficit)
    
    
    189
    
    
    
    (41
    )
    
    
    (213
    )
    
    
    (207
    )
    
    
    (165
    )
    
    
    (164
    )Unamortized net actuarial loss
    
    
    200
    
    
    
    437
    
    
    
    20
    
    
    
    29
    
    
    
    35
    
    
    
    40Unamortized past service costs
    
    
    5
    
    
    
    7
    
    
    
    1
    
    
    
    2
    
    
    
    
    
    
    
    2Unamortized net transitional asset
    
    
    (4
    )
    
    
    (4
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Post-measurement date activity(1)
    
    
    12
    
    
    
    
    
    
    
    3
    
    
    
    2
    
    
    
    4
    
    
    
    2Accrued benefit asset (liability)
    
    
    402
    
    
    
    399
    
    
    
    (189
    )
    
    
    (174
    )
    
    
    (126
    )
    
    
    (120
    )
 
 (1)
    
    Consists primarily of contributions. 9.35




---



##### 



Percentage of plansassetsAsset category
    
    2007
    
    2006Equity securities
    
    
    52
    %
    
    
    49
    %Debt securities
    
    
    48
    %
    
    
    51
    %Total
    
    
    100
    %
    
    
    100
    %
   9.36




---



##### 



Benefit Payments
 OtherPensions
    
    post-retirementFunded
    
    Unfunded
    
    plans2006
    
    
    95
    
    
    
    7
    
    
    
    102007
    
    
    114
    
    
    
    9
    
    
    
    10Estimated Future Payments:2008
    
    
    91
    
    
    
    12
    
    
    
    112009
    
    
    93
    
    
    
    12
    
    
    
    122010
    
    
    97
    
    
    
    13
    
    
    
    132011
    
    
    101
    
    
    
    13
    
    
    
    142012
    
    
    106
    
    
    
    14
    
    
    
    142013 to 2017
    
    
    607
    
    
    
    77
    
    
    
    80
 Defined Contribution Plans
  Note 18: Contingencies, Commitments and Guarantees
 Lawsuits and Legal Claims
  9.37




---



##### 



Rodriguez v. West Publishing Corp.
and Kaplan Inc Park v. The Thomson Corporation and Thomson Legal & Regulatory
Inc Arendas v. The Thomson
Corporation, West Publishing Corporation d/b/a BAR/BRI and Doe Corporation
  Taxes
   Leases
   9.38




---



##### 



Business Combinations and Investments
   Note 19: Acquisitions
  Year ended December 312007
    
    
    2006Number of
    
    
    Cash
    
    
    Number of
    
    
    Cashtransactions
    
    
    consideration
    
    
    transactions
    
    
    considerationBusinesses and identifiable intangible
assets acquired
    
    
    33
    
    
    
    438
    
    
    
    23
    
    
    
    692Contingent consideration payment  TradeWeb
    
    
    
    
    
    
    50
    
    
    
    
    
    
    
    50Investments in businesses
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    233
    
    
    
    488
    
    
    
    25
    
    
    
    744
   9.39




---



##### 



2007
    
    2006Cash and cash equivalents
    
    
    19
    
    
    
    11Accounts receivable
    
    
    38
    
    
    
    31Prepaid expenses and other current assets
    
    
    19
    
    
    
    12Computer hardware and other property
    
    
    4
    
    
    
    9Computer software
    
    
    13
    
    
    
    49Identifiable intangible assets
    
    
    206
    
    
    
    160Goodwill
    
    
    268
    
    
    
    528Other non-current assets
    
    
    18
    
    
    
    5Total assets
    
    
    585
    
    
    
    805Accounts payable and accruals
    
    
    (46
    )
    
    
    (29
    )Deferred revenue
    
    
    (39
    )
    
    
    (61
    )Other non-current liabilities
    
    
    (43
    )
    
    
    (12
    )Total liabilities
    
    
    (128
    )
    
    
    (102
    )Net assets
    
    
    457
    
    
    
    703
 Allocations related to certain acquisitions may be subject to adjustment pending final valuation.
  Date
    
    Company
    
    Acquiring segment
    
    DescriptionOctober 2007
    
    Deloitte Tax LLP
Property Tax
Services
    
    Tax & Accounting
    
    A provider of
property tax
outsourcing and
compliance servicesSeptember 2007
    
    Prous Science
    
    Scientific
    
    A provider of life
sciences
information
solutionsMarch 2007
    
    CrossBorder Solutions
    
    Tax & Accounting
    
    A provider of
transfer pricing
and income tax
provision softwareOctober 2006
    
    Solucient, LLC
    
    Healthcare
    
    An advanced
healthcare
analytics and
information companySeptember 2006
    
    LiveNote Technologies
    
    Legal
    
    A provider of
transcript and
evidence management
softwareMay 2006
    
    MercuryMD, Inc.
    
    Healthcare
    
    A provider of
mobile information
systems serving the
healthcare marketMarch 2006
    
    Quantitative
Analytics, Inc.
    
    Financial
    
    A provider of
financial database
integration and
analysis solutions
 9.40




---



##### 



Weighted-averageamortization period (years)2007
    
    
    2006
    
    
    2007
    
    
    2006Finite useful lives:Tradenames
    
    
    17
    
    
    
    16
    
    
    
    8
    
    
    
    10Customer relationships
    
    
    149
    
    
    
    116
    
    
    
    10
    
    
    
    10Databases and content
    
    
    20
    
    
    
    8
    
    
    
    8
    
    
    
    8Other
    
    
    20
    
    
    
    20
    
    
    
    7
    
    
    
    7206
    
    
    
    160
 TradeWeb
  Note 20: Stock-based Compensation
 Phantom Stock Plan
  9.41




---



##### 



2007
    
    
    2006Canadian $
    
    
    
    
    
    
    Canadian $weighted-average
    
    
    
    
    
    
    weighted-averageSARs
    
    
    exercise price
    
    
    SARs
    
    
    exercise priceOutstanding at beginning of year
    
    
    1,531,558
    
    
    
    40.84
    
    
    
    2,209,503
    
    
    
    38.66Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    (541,307
    )
    
    
    37.33
    
    
    
    (527,000
    )
    
    
    33.01Forfeited
    
    
    (190,588
    )
    
    
    42.89
    
    
    
    (150,945
    )
    
    
    36.26Outstanding at end of year
    
    
    799,663
    
    
    
    42.72
    
    
    
    1,531,558
    
    
    
    40.84Exercisable at end of year
    
    
    669,938
    
    
    
    43.05
    
    
    
    1,197,941
    
    
    
    40.65
  SARs outstanding
    
    
    
    
    
    
    SARs exercisableCanadian $
    
    Number
    
    
    Weighted-average
    
    
    Canadian $
    
    
    Number
    
    
    Canadian $range of
    
    outstanding at
    
    
    remaining
    
    
    weighted-average
    
    
    exercisable at
    
    
    weighted-averageexercise prices
    
    12/31/07
    
    
    contractual life
    
    
    exercise price
    
    
    12/31/07
    
    
    exercise price36.00 - 41.00
    
    
    384,333
    
    
    
    5.57
    
    
    
    39.70
    
    
    
    291,267
    
    
    
    39.3641.74 - 48.40
    
    
    365,010
    
    
    
    6.07
    
    
    
    43.87
    
    
    
    328,351
    
    
    
    44.1157.40 - 57.45
    
    
    50,320
    
    
    
    2.97
    
    
    
    57.40
    
    
    
    50,320
    
    
    
    57.40
  Stock Incentive Plan
  Stock Options
  9.42




---



##### 



2007
    
    
    2006Canadian $
    
    
    
    
    
    
    Canadian $weighted-average
    
    
    
    
    
    
    weighted-averageOptions
    
    
    exercise price
    
    
    Options
    
    
    exercise priceOutstanding at beginning of year
    
    
    5,099,392
    
    
    
    49.79
    
    
    
    5,451,664
    
    
    
    49.67Granted
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exercised
    
    
    (117,900
    )
    
    
    44.23
    
    
    
    (157,800
    )
    
    
    42.69Forfeited
    
    
    (278,340
    )
    
    
    52.05
    
    
    
    (194,472
    )
    
    
    52.16Outstanding at end of year
    
    
    4,703,152
    
    
    
    49.80
    
    
    
    5,099,392
    
    
    
    49.79Exercisable at end of year
    
    
    4,699,984
    
    
    
    49.81
    
    
    
    5,067,267
    
    
    
    49.85
  Options outstanding
    
    
    
    
    
    
    Options exercisableCanadian $
    
    Number
    
    
    Weighted-average
    
    
    Canadian $
    
    
    Number
    
    
    Canadian $range of
    
    outstanding at
    
    
    remaining
    
    
    weighted-average
    
    
    exercisable at
    
    
    weighted-averageexercise prices
    
    12/31/07
    
    
    contractual life
    
    
    exercise price
    
    
    12/31/07
    
    
    exercise price40.69 - 44.40
    
    
    1,040,500
    
    
    
    2.44
    
    
    
    41.06
    
    
    
    1,037,332
    
    
    
    41.0645.90 - 48.70
    
    
    1,965,972
    
    
    
    3.95
    
    
    
    48.36
    
    
    
    1,965,972
    
    
    
    48.3650.25 - 57.45
    
    
    1,696,680
    
    
    
    2.95
    
    
    
    56.84
    
    
    
    1,696,680
    
    
    
    56.84
  2007
    
    
    2006U.S. $
    
    
    
    
    
    
    U.S. $weighted-average
    
    
    
    
    
    
    weighted-averageOptions
    
    
    exercise price
    
    
    Options
    
    
    exercise priceOutstanding at beginning of year
    
    
    9,627,964
    
    
    
    32.98
    
    
    
    10,469,989
    
    
    
    32.62Granted
    
    
    1,827,510
    
    
    
    42.95
    
    
    
    380,000
    
    
    
    38.27Exercised
    
    
    (1,664,029
    )
    
    
    32.28
    
    
    
    (742,400
    )
    
    
    30.83Forfeited
    
    
    (506,837
    )
    
    
    35.04
    
    
    
    (479,625
    )
    
    
    32.66Outstanding at end of year
    
    
    9,284,608
    
    
    
    34.78
    
    
    
    9,627,964
    
    
    
    32.98Exercisable at end of year
    
    
    7,433,244
    
    
    
    31.75
    
    
    
    5,094,436
    
    
    
    31.39
 9.43




---



##### 



Options outstanding
    
    
    
    
    
    
    Options exercisableU.S. $
    
    Number
    
    
    Weighted-average
    
    
    U.S. $
    
    
    Number
    
    
    U.S. $range of
    
    outstanding at
    
    
    remaining
    
    
    weighted-average
    
    
    exercisable at
    
    
    Weighted-averageexercise prices
    
    12/31/07
    
    
    contractual life
    
    
    exercise price
    
    
    12/31/07
    
    
    exercise price26.06 - 29.70
    
    
    1,053,559
    
    
    
    4.95
    
    
    
    26.08
    
    
    
    1,053,559
    
    
    
    26.0830.79 - 33.76
    
    
    3,823,136
    
    
    
    6.48
    
    
    
    33.53
    
    
    
    3,670,869
    
    
    
    33.5333.87 - 42.96
    
    
    4,407,913
    
    
    
    8.44
    
    
    
    38.53
    
    
    
    2,708,816
    
    
    
    37.46
   2007
    
    
    2006Risk-free interest rate
    
    
    4.6
    %
    
    
    4.6
    %Dividend yield
    
    
    2.3
    %
    
    
    2.3
    %Volatility factor
    
    
    17.1
    %
    
    
    18.5
    %Expected life (in years)
    
    
    6
    
    
    
    6
 Restricted Share Units
  9.44




---



##### 



2007
    
    2006U.S. $
    
    
    
    
    
    U.S. $weighted-average
    
    
    
    
    
    weighted-averageRSUs
    
    value
    
    RSUs
    
    valueOutstanding at beginning of year
    
    
    407,925
    
    
    
    35.89
    
    
    
    223,715
    
    
    
    33.86Granted
    
    
    148,761
    
    
    
    42.75
    
    
    
    192,098
    
    
    
    38.20Cancellations
    
    
    (36,723
    )
    
    
    35.15
    
    
    
    
    
    
    
    Vested
    
    
    (26,220
    )
    
    
    34.10
    
    
    
    (7,888
    )
    
    
    34.79Outstanding at end of year
    
    
    493,743
    
    
    
    38.10
    
    
    
    407,925
    
    
    
    35.89
 Performance Restricted Share Units
      2007
    
    2006U.S. $
    
    
    
    
    
    U.S. $weighted-average
    
    
    
    
    
    weighted-averagePRSUs
    
    value
    
    PRSUs
    
    valueOutstanding at beginning of year
    
    
    705,109
    
    
    
    38.88
    
    
    
    
    
    
    
    Granted
    
    
    761,673
    
    
    
    42.87
    
    
    
    705,109
    
    
    
    38.88Cancellations
    
    
    (167,025
    )
    
    
    39.17
    
    
    
    
    
    
    
    Vested
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Outstanding at end of year
    
    
    1,299,757
    
    
    
    41.12
    
    
    
    705,109
    
    
    
    38.88
 9.45




---



##### 



Employee Stock Purchase Plan
  Note 21: Supplemental Cash Flow Information
  2007
    
    2006Accounts receivable
    
    
    (135
    )
    
    
    (141
    )Prepaid expenses and other current assets
    
    
    (93
    )
    
    
    2Accounts payable and accruals
    
    
    99
    
    
    
    67Deferred revenue
    
    
    100
    
    
    
    78Income taxes
    
    
    (27
    )
    
    
    (35
    )Other
    
    
    (77
    )
    
    
    (21
    )(133
    )
    
    
    (50
    )
   Note 22: Related Party Transactions
     9.46




---



##### 



Note 23: Segment Information
  Legal
  Financial
  9.47




---



##### 



Tax & Accounting
  Scientific
  Healthcare
  Reportable Segments  2007
 Additions toSegment
    
    capitaloperating
    

assets(1) and
    
    Total(millions of U.S. dollars)
    
    Revenues
    
    Depreciation
    
    profit
    
    goodwill
    
    assetsLegal
    
    
    3,318
    
    
    
    205
    
    
    
    1,044
    
    
    
    335
    
    
    
    6,562Financial
    
    
    2,186
    
    
    
    172
    
    
    
    454
    
    
    
    230
    
    
    
    3,618Tax & Accounting
    
    
    705
    
    
    
    21
    
    
    
    184
    
    
    
    316
    
    
    
    1,440Scientific
    
    
    651
    
    
    
    32
    
    
    
    175
    
    
    
    110
    
    
    
    1,419Healthcare
    
    
    452
    
    
    
    24
    
    
    
    85
    
    
    
    38
    
    
    
    772Segment totals
    
    
    7,312
    
    
    
    454
    
    
    
    1,942
    
    
    
    1,029
    
    
    
    13,811Corporate
and
other(2)
    
    
    
    
    
    
    14
    
    
    
    (389
    )
    
    
    122
    
    
    
    9,010Eliminations
    
    
    (16
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Continuing operations
    
    
    7,296
    
    
    
    468
    
    
    
    1,553
    
    
    
    1,151
    
    
    
    22,821Discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    22,831
 9.48




---



##### 



Segment
    
    Additions to capitaloperating
    

assets(1) and
    
    Total(millions of U.S. dollars)
    
    Revenues
    
    Depreciation
    
    profit
    
    goodwill
    
    assetsLegal
    
    
    3,008
    
    
    
    187
    
    
    
    943
    
    
    
    329
    
    
    
    6,445Financial
    
    
    2,025
    
    
    
    180
    
    
    
    380
    
    
    
    395
    
    
    
    3,489Tax & Accounting
    
    
    598
    
    
    
    22
    
    
    
    168
    
    
    
    66
    
    
    
    1,086Scientific
    
    
    602
    
    
    
    23
    
    
    
    151
    
    
    
    57
    
    
    
    1,344Healthcare
    
    
    374
    
    
    
    16
    
    
    
    81
    
    
    
    351
    
    
    
    755Segment totals
    
    
    6,607
    
    
    
    428
    
    
    
    1,723
    
    
    
    1,198
    
    
    
    13,119Corporate
and
other(2)
    
    
    
    
    
    
    10
    
    
    
    (235
    )
    
    
    28
    
    
    
    1,452Eliminations
    
    
    (16
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Continuing operations
    
    
    6,591
    
    
    
    438
    
    
    
    1,488
    
    
    
    1,226
    
    
    
    14,571Discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,571Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,142
 Geographic Information  2007
 Capital
assets(1)
    
    Total(by country of origin) (millions of
U.S. dollars)
    
    Revenues
    
    and goodwill
    
    assetsUnited States
    
    
    5,859
    
    
    
    9,519
    
    
    
    14,830Europe
    
    
    1,011
    
    
    
    1,758
    
    
    
    6,866Asia Pacific
    
    
    230
    
    
    
    192
    
    
    
    304Canada
    
    
    170
    
    
    
    237
    
    
    
    788Other countries
    
    
    26
    
    
    
    19
    
    
    
    43Total
    
    
    7,296
    
    
    
    11,725
    
    
    
    22,831
 9.49




---



##### 



Capital assets(1)
    
    
    Total(by
country of origin) (millions of U.S. dollars)
    
    Revenues
    
    
    and goodwill
    
    
    assetsUnited States
    
    
    5,350
    
    
    
    8,962
    
    
    
    15,531Europe
    
    
    871
    
    
    
    1,857
    
    
    
    3,113Asia Pacific
    
    
    193
    
    
    
    158
    
    
    
    387Canada
    
    
    155
    
    
    
    164
    
    
    
    948Other countries
    
    
    22
    
    
    
    36
    
    
    
    163Total
    
    
    6,591
    
    
    
    11,177
    
    
    
    20,142
 
 (1)
    
    Capital assets include computer hardware and other property, capitalized software for internal
use and identifiable intangible assets.(2)
    
    Corporate and other includes corporate costs, costs associated with the Companys stock-based
compensation expense, THOMSONplus and Reuters transaction costs. Segment Disclosures,
  For the year endedDecember 312007
    
    2006Segment operating profit
    
    
    1,553
    
    
    
    1,488Less: Amortization
    
    
    (256
    )
    
    
    (240
    )Operating profit
    
    
    1,297
    
    
    
    1,248
 9.50




---



##### 



Note 24: Reconciliation of Canadian to U.S. Generally Accepted Accounting Principles
  For the year ended December 312007
    
    
    2006Net earnings under Canadian GAAP
    
    
    4,004
    
    
    
    1,120Differences in GAAP increasing (decreasing) reported earnings:Business combinations
    
    
    92
    
    
    
    17Derivative instruments and hedging activities
    
    
    (8
    )
    
    
    12Income taxes
    
    
    (26
    )
    
    
    (6
    )Net earnings under U.S. GAAP
    
    
    4,062
    
    
    
    1,143Earnings under U.S. GAAP from continuing operations
    
    
    1,096
    
    
    
    932Earnings under U.S. GAAP from discontinued operations
    
    
    2,966
    
    
    
    211Net earnings under U.S. GAAP
    
    
    4,062
    
    
    
    1,143Basic earnings per common share, under U.S. GAAP, from:Continuing operations
    
    $
    1.70
    
    
    $
    1.44Discontinued operations, net of tax
    
    $
    4.63
    
    
    $
    0.33Basic earnings per common share
    
    $
    6.33
    
    
    $
    1.77Diluted earnings per common share, under U.S. GAAP, from:Continuing operations
    
    $
    1.69
    
    
    $
    1.43Discontinued operations, net of tax
    
    $
    4.60
    
    
    $
    0.33Diluted earnings per common share
    
    $
    6.29
    
    
    $
    1.76
 For the year ended December 312007
    
    
    2006Comprehensive income under Canadian GAAP
    
    
    3,775
    
    
    
    1,337Differences in GAAP increasing (decreasing) reported comprehensive income:Differences in net earnings as per above
    
    
    58
    
    
    
    23Foreign currency translation
    
    
    
    
    
    
    (2
    )Pension adjustment (including tax charge of $118 million in 2007, $7 million in 2006)
    
    
    137
    
    
    
    16Comprehensive income under U.S. GAAP
    
    
    3,970
    
    
    
    1,374
 9.51




---



##### 



As of December 312007
    
    
    2006Shareholders equity under Canadian GAAP
    
    
    13,571
    
    
    
    10,481Differences in GAAP increasing (decreasing) reported Shareholders equity:Business combinations
    
    
    (498
    )
    
    
    (590
    )Employee future benefits
    
    
    (257
    )
    
    
    (512
    )Derivative instruments and hedging activities
    
    
    1
    
    
    
    9Income taxes
    
    
    195
    
    
    
    339Shareholders equity under U.S. GAAP
    
    
    13,012
    
    
    
    9,727
  Business Combinations
   Derivative Instruments and Hedging Activities
 Accounting for Derivative
Instruments and Hedging Activities Accounting for Certain Derivative
Instruments and Certain Hedging Activities,
  9.52




---



##### 



Income Taxes
   Employee Future Benefits
 Employers Accounting for Defined Benefit
Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 132(R)
   FAS 158adjustmentsOther non-current assets
    
    
    (380
    )Accounts payable and accruals
    
    
    19Other non-current liabilities
    
    
    103Long-term deferred income tax liability
    
    
    (195
    )Accumulated other comprehensive loss
    
    
    (307
    )
 Recently Issued Accounting Standards
 Fair Value Measurements
 9.53




---



##### 



The Fair Value Option for Financial Assets and Financial
Liabilities
 Business Combinations Noncontrolling Interests in Consolidated Financial Statements
 Note 25: Subsequent Events
 TaxStream Acquisition
  Dividends
  TradeWeb Partnership
  Reuters Acquisition
     9.54




---



##### 



Litigation
  9.55