LEASE ARRANGEMENTS

12 Months Ended

Sep. 30, 2012

LEASE ARRANGEMENTS [Abstract]

LEASE ARRANGEMENTS

7. LEASE ARRANGEMENTS

The total amount of equipment capitalized under capital lease obligations as of September 30, 2012 and 2011 was $5,778 and $6,222, respectively. Accumulated amortization on capital leases at September 30, 2012 and 2011 was $4,775 and $4,086, respectively. Amortization of assets acquired through capital leases is included in depreciation expense.

During fiscal 2012, we added $356 in computer equipment through new capital lease arrangements. In fiscal 2011, we added $1,888 in equipment to our U.S. and U.K. bioanalytical laboratories through new capital lease arrangements. Due to restructuring activities outlined in Note 14, we terminated a capital lease for laboratory equipment in the UK. The activity resulted in a liability reduction of $322. Future minimum lease payments on capital leases at September 30, 2012 for the next five years are as follows:

	Principal		Interest		Total
2013	$	330	$	58	$	388
2014		268		39		307
2015		259		22		281
2016		208		6		214
2017		4		-		4
	$	1,069	$	125	$	1,194

We lease office space and equipment under noncancelable operating leases that terminate at various dates through 2016. The UK building lease expires in 2023 but includes an opt out provision after 7 years, or in fiscal 2015. Certain of these leases contain renewal options. Total rental expense under these leases was $1,284 and $441 in fiscal 2012 and 2011, respectively. The increase in fiscal 2012 is due to the accrual in restructuring for the UK building lease through the opt out date.

Future minimum lease payments for the following fiscal years under operating leases at September 30, 2012 are as follows:

2013	$	371
2014		370
2015		223
2016		13
	$	977