Goodwill And Other Intangible Assets

12 Months Ended

Sep. 30, 2013

Goodwill And Other Intangible Assets [Abstract]

8. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill, by reportable segment, for the years ended September 30, 2013 and 2012 were as follows:



(Dollars in Thousands)	Radiation Measurement		Medical Physics		Medical Products		Total
Goodwill at September 30, 2011	$	20,225	$	19,737	$	-	$	39,962
Increase related to acquisitions		-		2,874		64,069		66,943
Effects of foreign currency		(188)		-		-		(188)
Goodwill at September 30, 2012	$	20,037	$	22,611	$	64,069	$	106,717
Effects of foreign currency		419		-		-		419
Accumulated goodwill impairment charges		-		-		(22,700)		(22,700)
Goodwill at September 30, 2013	$	20,456	$	22,611	$	41,369	$	84,436

During the third quarter of fiscal 2013, in connection with our quarterly forecasting cycle, we updated the forecasted results of operations for our operating segments based on the most recent financial results and our best estimate of future operations. The updated forecast reflected a decline in revenues for the Medical Products segment primarily due to the inability to generate new sales to replace decreasing revenues. As a result, in connection with the preparation of our financial statements for the quarter ended June 30, 2013, the Company performed an impairment analysis with respect to the carrying value of goodwill in our Medical Products segment.

In accordance with FASB ASC 350, the Company aggregated our business components into reporting units to test for goodwill impairment. For our purposes, our reporting units and operating segments are the same as our reporting segments, so the Company tests goodwill at the reporting segment level. Goodwill impairment is determined using two-step process. The first step of the goodwill impairment test is to identify potential impairment by comparing the fair value of a segment with its net book value (or carrying amount), including goodwill. If the fair value of a segment exceeds its carrying amount, goodwill of the segment is considered not to be impaired and the second step of the impairment test is unnecessary. If the carrying amount of the segment exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the segment’s goodwill with the carrying amount of that goodwill. If the carrying amount of the segment’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. That is, the fair value of the segment is allocated to all of the assets and liabilities of that segment (including any unrecognized intangible assets) as if the segment had been acquired in a business combination and the fair value of the segment was the purchase price paid to acquire the segment.

Based on the result of the first step of the goodwill impairment analysis, the Company determined that the fair value of our Medical Products segment was less than its carrying value as of June 30, 2013 and, as such, the Company applied the second step of the goodwill impairment test to this segment. Based on the result of the second step of the goodwill impairment analysis, the Company recorded a $22,700 non-cash pretax charge to reduce the carrying value of goodwill in our Medical Products segment. The impairment charge is non-cash in nature and does not affect the Company’s liquidity. As a result of the impairment charge in our Medical Products segment recognized during the third quarter of fiscal 2013 and the effects of foreign currency in our Radiation Measurement segment, the carrying amount of our goodwill was reduced to $84,436 as of September 30, 2013 from $106,717 as of September 30, 2012.

Intangible assets for the years ended September 30 were as follows:



	2013				2012
(Dollars in Thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer lists	$	43,954	$	11,639	$	40,880	$	8,501
Trademarks and tradenames		2,154		400		2,123		-
Licenses and patents		4,080		1,009		3,518		638
Other intangibles		577		557		577		557
Intangible assets	$	50,765	$	13,605	$	47,098	$	9,696

The Company assumed $2,485 in customer lists and no tradenames during fiscal 2013 relating to business combinations and $29,914 during fiscal 2012. Amortization of intangible assets was $4,095, $3,270 and $1,033 for the years ended September 30, 2013, 2012 and 2011, respectively. Annual aggregate amortization expense related to intangible assets is estimated to be approximately $3,250 for the next five fiscal years.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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