LEASE ARRANGEMENTS

12 Months Ended

Sep. 30, 2014

LEASE ARRANGEMENTS [Abstract]

LEASE ARRANGEMENTS

6. LEASE ARRANGEMENTS

The total amount of equipment capitalized under capital lease obligations as of September 30, 2014 and 2013 was $5,892 and $5,778, respectively. Accumulated amortization on capital leases at September 30, 2014 and 2013 was $5,358 and $5,083, respectively. Amortization of assets acquired through capital leases is included in depreciation expense.

In fiscal 2014, we had one new capital lease addition of $114 for laboratory equipment at our Evansville facility. Due to restructuring activities outlined in Note 12, 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, 2014 for the next five years are as follows:

	Principal		Interest		Total
2014	$	279	$	29	$	308
2015		230		12		242
2016		27		4		31
2017		25		2		27
2018		16		-		16
	$	577	$	47	$	624

We lease office space and equipment under non-cancelable 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$87 and $66 in fiscal 2014 and 2013, respectively.

Future minimum lease payments for the following fiscal years under operating leases at September 30, 2014 are as follows:

2015	$	856
2016		16
2017		1
2018		-
2019		-
	$	873