Financial Instruments and Fair Value Measurements

12 Months Ended

Sep. 30, 2011

Financial Instruments and Fair Value Measurements [Abstract]

Financial Instruments and Fair Value Measurements

Note 13 — Financial Instruments and Fair Value Measurements

Recurring Fair Value Measurements

The fair values of financial instruments, including those not recognized on the statement of financial position at fair value, carried at September 30, 2011 and 2010 are classified in accordance with the fair value hierarchy in the tables below:

			Basis of Fair Value Measurement
	September 30,		Quoted Prices in		Significant
	2011		Active Markets		Other		Significant
	Carrying		for Identical		Observable		Unobservable
	Value		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
Assets
Institutional money market investments	$	189,198	$	189,198	$	—	$	—
Forward exchange contracts		37,198		—		37,198		—
Interest rate swaps		5,959		—		5,959		—
Total Assets	$	232,355	$	189,198	$	43,157	$	—
Liabilities
Forward exchange contracts	$	39,589	$	—	$	39,589	$	—
Long-term debt		2,484,665		—		2,839,697		—
Total Liabilities	$	2,524,254	$	—	$	2,879,286	$	—

			Basis of Fair Value Measurement
	September 30,		Quoted Prices in		Significant
	2010		Active Markets		Other		Significant
	Carrying		for Identical		Observable		Unobservable
	Value		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
Assets
Institutional money market investments	$	277,424	$	277,424	$	—	$	—
Forward exchange contracts		32,392		—		32,392		—
Interest rate swaps		8,609		—		8,609		—
Total Assets	$	318,425	$	277,424	$	41,001	$	—
Liabilities
Forward exchange contracts	$	21,265	$	—	$	21,265	$	—
Long-term debt		1,495,357		—		1,790,137		—
Total Liabilities	$	1,516,622	$	—	$	1,811,402	$	—

The Company’s institutional money market accounts permit daily redemption and the fair values of these investments are based upon the quoted prices in active markets provided by the holding financial institutions. The Company’s remaining cash equivalents totaling $986,084 and $938,565 at September 30, 2011 and 2010, respectively. Short-term investments are held to their maturities and are carried at cost, which approximates fair value. The cash equivalents consist of liquid investments with a maturity of three months or less and the short-term investments consist of instruments with maturities greater than three months and less than one year. The Company measures the fair value of forward exchange contracts and currency options using an income approach with significant observable inputs, specifically spot currency rates, market designated forward currency prices and a discount rate. The fair value of interest rate swaps are provided by the financial institutions that are counterparties to these arrangements. The fair value of long-term debt is based upon quoted prices in active markets for similar instruments.

The Company’s policy is to recognize any transfers into fair value measurement hierarchy levels and transfers out of levels at the beginning of each reporting period. There were no transfers in and out of Level 1, Level 2 or Level 3 measurements for the years ending September 30, 2011 and 2010.

Nonrecurring Fair Value Measurements

In the fourth quarter of fiscal year 2011, the Company recorded an impairment charge of $9,270, which was recorded to Research and development expense, resulting from its discontinuance of a research program within the Diagnostic Systems unit. Based upon an assessment using significant unobservable inputs and the lack of alternative uses for these assets, the assets were determined to have no fair value.

Concentration of Credit Risk

The Company maintains cash deposits in excess of government-provided insurance limits. Such cash deposits are exposed to loss in the event of nonperformance by financial institutions. Substantially all of the Company’s trade receivables are due from public and private entities involved in the healthcare industry. Due to the large size and diversity of the Company’s customer base, concentrations of credit risk with respect to trade receivables are limited. The Company does not normally require collateral. The Company is exposed to credit loss in the event of nonperformance by financial institutions with which it conducts business. However, this loss is limited to the amounts, if any, by which the obligations of the counterparty to the financial instrument contract exceed the obligations of the Company. The Company also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.

Accounts receivable balances include sales to government-owned or government-supported healthcare facilities. Because these customers are government-owned or supported, the Company could be impacted by declines in sovereign credit ratings or by defaults in these countries.

The Company continually evaluates all government receivables, particularly in Spain, Italy, and other parts of Western Europe, for potential collection risks associated with the availability of government funding and reimbursement practices. The Company believes the current reserves related to government receivables are adequate and this concentration of credit risk is not expected to have a material adverse impact on its financial position or liquidity.