1.Summary of Significant Accounting Policies

Nature of Operations

Landauer is a leading global provider of technical and analytical services to determine occupational and environmental radiation exposure, the leading domestic provider of outsourced medical physics services, and a provider of radiology related medical products. The Company operates in three primary business segments, Radiation Measurement, Medical Physics and Medical Products.

Basis of Consolidation

The consolidated financial statements include the accounts of the Company, its subsidiaries and variable interest entities in which the Company has controlling financial interest. All inter-company balances and transactions are eliminated in consolidation. Entities in which the Company does not have a controlling financial interest but is considered to have significant influence are accounted for on the equity method.

Restatement and Revision of Prior Period Financial Statements

In connection with the preparation of the consolidated financial statements for the fiscal year ended September 30, 2014, the Company identified errors in its previously issued financial statements as of and for the fiscal years ended September 30, 2013 and the interim periods ended June 30, 2014, March 31, 2014, December 31, 2013, June 30, 2013, March 31, 2013 and December 31, 2012. In accordance with accounting guidance presented in ASC 250-10 and SEC Staff Accounting Bulletin No. 99, Materiality, management assessed the materiality of these errors and concluded that they were material to the Company’s fiscal 2013 financial statements. The Company is restating its fiscal 2013 financial statements to correct for these errors. Certain of these errors also affected the fiscal 2012 financial statements. The Company is revising its fiscal 2012 financial statements to correct for these errors. The Company believes that the errors are not material to the fiscal 2012 financial statements. Following is a description of the corrections:

Income Taxes - The Company did not properly allocate income between taxing jurisdictions for certain items. This resulted in the misstatement of income tax expense (benefit), prepaid taxes, current and deferred tax assets and liabilities, other accrued expenses and accumulated other comprehensive income.

Revenue and accounts receivable - The Company identified the following errors related to revenue recognition and its accounting for receivables:

The Company did not properly defer revenue for the portion of the badge wear period remaining at the end of each month. This resulted in the misstatement of revenue and the deferred revenue liability.

The Company did not recognize revenue for certain customers in accordance with contractually established terms and conditions. This resulted in the misstatement of revenue, cost of sales, inventory and the deferred revenue liability.

Revenue was recognized for certain product sales prior to the transfer of the risk of loss to customers. This resulted in the misstatement of revenue, cost of sales, inventory and the deferred revenue liability.

Credit memos were recorded to customers’ accounts prior to recognition of the related revenue. This resulted in the misstatement of revenue and receivables, net of allowances.

The Company did not properly record an allowance for credit memos to be issued to customers in the same periods as the related revenue. This resulted in the misstatement of revenue and receivables, net of allowances.

The Company utilized a methodology at one of its foreign subsidiaries to record an allowance for doubtful accounts that did not properly estimate future bad debts based on the subsidiary’s historical experience. As a result, the Company did not record an allowance for certain significantly aged receivables and bad debt expense was not recorded in the proper periods. This resulted in the misstatement of selling, general and administrative expenses and receivables, net of allowances.

Dosimetry devices – The Company did not properly account for certain dosimetry devices, based on the expected useful life of the devices as determined by the wear period of the related badges. This resulted in a misstatement of cost of sales and dosimetry devices, net of accumulated depreciation.

Long-term investments – The Company recorded fixed income mutual fund investments held by one of its foreign subsidiaries as cash, instead of properly classifying them as available-for-sale securities. As a result, both realized and unrealized gains were incorrectly recorded as interest income. This resulted in the misstatement of interest expense, net, other income (expense), net, net income attributed to noncontrolling interest, comprehensive income, cash, other assets, accumulated other comprehensive income, and noncontrolling interest.

Sales taxes – The Company did not collect and remit sales taxes to the proper taxing jurisdictions. This resulted in the misstatement of selling, general and administrative expenses and other accrued expenses.

Intangible assets – The Company’s intangible assets include purchased customer lists, licenses, patents, trademarks and tradenames. These assets are recorded at fair value and assigned estimated useful lives at the time of acquisition. The Company did not properly amortize certain customer lists and trademarks based on their assigned useful lives and, therefore, did not record amortization expense in the proper periods. This resulted in a misstatement of selling, general and administrative expenses and intangible assets, net of accumulated amortization.

Equity in joint ventures – The Company identified the following errors related to accounting for its joint ventures:

During fiscal 2012 and 2013, the Company did not properly record its share of equity income from certain joint ventures in the proper periods.

The Company did not properly eliminate intra-entity profit on sales to one of its joint ventures accounted for on the equity method. This resulted in the misstatement of equity in income of joint ventures and equity in joint ventures (investment account).

Revenue was recorded at one of the Company’s joint ventures on equipment sales prior to transfer of the risk of loss to the customer. As a result, the Company did not record its share of equity income from the joint venture in the proper periods.

Employee bonuses – The Company maintains non-equity incentive bonus plans for certain employees. Annual awards are paid based on established targets. At the end of fiscal 2012, the Company did not properly adjust its accrual for bonuses based on performance against established targets for the year and, therefore, did not record compensation expense in the proper period. This resulted in a misstatement of selling, general and administrative expenses and accrued compensation and related costs.

Foreign currency transaction gains and losses – The Company did not properly account for gains and losses on certain transactions denominated in currencies other than the functional currency. This resulted in the misstatement of other income (expense), net and accumulated other comprehensive income.

The following tables summarize the impact of the corrections of the previously mentioned errors on net income (loss) and diluted net income (loss) per share attributed to Landauer, Inc.



(Dollars in Thousands, Except per Share Amounts)	Three Months Ended June 30, 2014 (Unaudited)				Three Months Ended March 31, 2014 (Unaudited)				Three Months Ended December 31, 2013 (Unaudited)
	Net Income (Loss)		Diluted Net Income (Loss) Per Share		Net Income (Loss)		Diluted Net Income (Loss) Per Share		Net Income (Loss)		Diluted Net Income (Loss) Per Share
As previously reported	$	(36,626)	$	(3.86)	$	4,997	$	0.52	$	3,051	$	0.32
Revenue and accounts receivable		1,138				(500)				252
Dosimetry devices		13				13				12
Long-term investments		(48)				(25)				79
Sales taxes		(15)				(16)				(16)
Intangible assets		-				-				150
Equity in joint ventures		-				-				708
Total adjustments		1,088		0.11		(528)		(0.05)		1,185		0.12
Income tax expense (benefit)		805		0.08		(41)		-		403		0.04
Less amounts attributed to noncontrolling interest		(8)		-		(4)		-		12		-
Net impact of adjustments		291		0.03		(483)		(0.05)		770		0.08
As restated	$	(36,335)	$	(3.83)	$	4,514	$	0.47	$	3,821	$	0.40



(Dollars in Thousands, Except per Share Amounts)	Year Ended September 30, 2013				Three Months Ended June 30, 2013 (Unaudited)				Three Months Ended March 31, 2013 (Unaudited)
	Net Income (Loss)		Diluted Net Income (Loss) Per Share		Net Income (Loss)		Diluted Net Income (Loss) Per Share		Net Income (Loss)		Diluted Net Income (Loss) Per Share
As previously reported	$	4,836	$	0.49	$	(13,753)	$	(1.46)	$	5,153	$	0.54
Revenue and accounts receivable		(407)				(22)				-
Dosimetry devices		(177)				(44)				(44)
Long-term investments		(35)				(28)				(24)
Sales taxes		(69)				(17)				(17)
Intangible assets		50				(50)				(50)
Equity in joint ventures		(630)				(459)				(413)
Employee bonuses		(136)				-				-
Total adjustments		(1,404)		(0.15)		(620)		(0.06)		(548)		(0.06)
Income tax expense (benefit)		656		0.07		(701)		(0.07)		179		0.02
Less amounts attributed to noncontrolling interest		(6)		-		(9)		-		(4)		-
Net impact of adjustments		(2,054)		(0.22)		90		0.01		(723)		(0.08)
As restated	$	2,782	$	0.27	$	(13,663)	$	(1.45)	$	4,430	$	0.46



(Dollars in Thousands, Except per Share Amounts)	Three Months Ended December 31, 2012 (Unaudited)				Year Ended September 30, 2012
	Net Income (Loss)		Diluted Net Income (Loss) Per Share		Net Income (Loss)		Diluted Net Income (Loss) Per Share		Prior to Fiscal 2012
As previously reported	$	4,877	$	0.52	$	19,270	$	2.03
Revenue and accounts receivable		32				(211)				(1,100)
Dosimetry devices		(44)				(130)				(1,335)
Long-term investments		43				(10)				(111)
Sales taxes		(17)				(67)				(281)
Intangible assets		(50)				(200)				-
Equity in joint ventures		(471)				(78)				-
Employee bonuses		(136)				136				-
Foreign currency transaction gains & losses		-				-				316
Total adjustments		(643)		(0.07)		(560)		(0.06)		(2,511)
Income tax expense (benefit)		(30)		-		166		0.02		(640)
Less amounts attributed to noncontrolling interest		7		-		(2)		-		(49)
Net impact of adjustments		(620)		(0.07)		(724)		(0.08)	$	(1,822)
As restated (revised for fiscal 2012)	$	4,257	$	0.45	$	18,546	$	1.95

The effect of the corrections on the previously issued Consolidated Balance Sheets is as follows:



	June 30, 2014 (Unaudited)				March 31, 2014 (Unaudited)				December 31, 2013 (Unaudited)
(Dollars in Thousands)	Previously Reported		As Restated		Previously Reported		As Restated		Previously Reported		As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	11,154	$	8,638	$	10,991	$	8,922	$	13,272	$	11,466
Receivables, net of allowances		34,750		34,084		35,487		34,821		34,178		33,512
Inventories		7,734		7,770		7,509		7,509		8,301		8,301
Deferred income tax asset - current		2,303		1,617		2,313		1,627		2,312		1,626
Prepaid income taxes		6,383		5,498		2,411		2,243		2,671		2,374
Prepaid expenses and other current assets		3,002		3,164		2,832		2,994		2,908		3,070
Current assets		65,326		60,771		61,543		58,116		63,642		60,349
Total property, plant and equipment, at cost		105,761		105,761		104,822		104,822		104,316		104,316
Accumulated depreciation and amortization		(57,369)		(57,369)		(55,275)		(55,275)		(53,407)		(53,407)
Net property, plant and equipment		48,392		48,392		49,547		49,547		50,909		50,909
Equity in joint ventures		23,744		23,744		23,356		23,356		22,600		22,600
Goodwill		44,645		44,645		86,384		86,384		86,529		86,529
Intangible assets, net of accumulated amortization		14,663		14,663		36,198		36,198		37,022		37,022
Dosimetry devices, net of accumulated depreciation		5,409		3,805		5,734		4,117		5,739		4,109
Other assets		20,539		24,204		7,621		10,839		7,704		10,659
ASSETS	$	222,718	$	220,224	$	270,383	$	268,557	$	274,145	$	272,177
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,611	$	5,611	$	6,830	$	6,830	$	6,036	$	6,036
Dividends payable		5,380		5,380		5,352		5,352		5,433		5,433
Deferred contract revenue		16,772		16,970		13,120		14,420		13,572		14,372
Accrued compensation and related costs		6,849		6,849		7,176		7,176		6,160		6,160
Other accrued expenses		7,776		8,317		6,125		6,651		6,217		6,727
Current liabilities		42,388		43,127		38,603		40,429		37,418		38,728
Non-current liabilities:
Long-term debt		138,285		138,285		138,285		138,285		143,785		143,785
Pension and postretirement obligations		13,588		13,588		13,331		13,331		13,308		13,308
Deferred income taxes		656		(1,382)		10,823		8,785		10,324		8,286
Uncertain income tax liabilities		351		3,193		529		3,283		465		3,131
Other non-current liabilities		1,067		1,067		1,221		1,221		1,425		1,425
Non-current liabilities		153,947		154,751		164,189		164,905		169,307		169,935
Commitments and Contingencies		-		-		-		-		-		-
STOCKHOLDERS’ EQUITY
Preferred stock		-		-		-		-		-		-
Common stock		962		962		963		963		962		962
Additional paid in capital		40,392		40,392		39,755		39,755		39,653		39,653
Accumulated other comprehensive loss		(4,360)		(4,318)		(4,092)		(4,098)		(4,547)		(4,578)
Retained earnings		(12,299)		(16,321)		29,606		25,293		29,582		25,752
Landauer, Inc. stockholders’ equity		24,695		20,715		66,232		61,913		65,650		61,789
Noncontrolling interest		1,688		1,631		1,359		1,310		1,770		1,725
Stockholders’ equity		26,383		22,346		67,591		63,223		67,420		63,514
LIABILITIES AND STOCKHOLDERS’ EQUITY	$	222,718	$	220,224	$	270,383	$	268,557	$	274,145	$	272,177



	September 30, 2013				June 30, 2013 (Unaudited)				March 31, 2013 (Unaudited)
(Dollars in Thousands)	Previously Reported		As Restated		Previously Reported		As Restated		Previously Reported		As Restated
ASSETS
Current assets:
Cash and cash equivalents	$	11,184	$	8,672	$	8,997	$	6,620	$	11,054	$	9,204
Receivables, net of allowances		38,419		37,839		34,807		34,328		36,419		35,940
Inventories		9,539		9,729		9,487		9,739		9,718		9,718
Deferred income tax asset - current		2,312		1,626		2,259		1,644		2,339		1,724
Prepaid income taxes		3,132		3,270		3,513		4,403		4,902		4,976
Prepaid expenses and other current assets		1,707		1,869		2,259		2,421		1,928		1,928
Current assets		66,293		63,005		61,322		59,155		66,360		63,490
Total property, plant and equipment cost		107,446		107,446		106,248		106,248		105,883		105,883
Accumulated depreciation and amortization		(55,514)		(55,514)		(53,326)		(53,326)		(51,256)		(51,256)
Net property, plant and equipment		51,932		51,932		52,922		52,922		54,627		54,627
Equity in joint ventures		23,942		23,234		22,735		21,314		22,683		21,721
Goodwill		84,436		84,436		83,833		83,833		106,746		106,746
Intangible assets, net of accumulated amortization		37,161		37,011		37,987		37,637		36,091		35,791
Dosimetry devices, net of accumulated depreciation		5,798		4,156		6,221		4,624		6,436		4,883
Other assets		7,271		10,932		5,837		9,261		6,101		9,058
ASSETS	$	276,833	$	274,706	$	270,857	$	268,746	$	299,044	$	296,316
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,310	$	6,310	$	5,490	$	5,490	$	6,541	$	6,541
Dividends payable		5,419		5,419		5,389		5,389		5,403		5,403
Deferred contract revenue		13,181		14,509		13,572		14,646		14,413		15,213
Accrued compensation and related costs		8,207		8,207		7,146		7,146		6,938		6,938
Other accrued expenses		7,531		8,025		8,863		9,308		7,789		8,217
Current liabilities		40,648		42,470		40,460		41,979		41,084		42,312
Non-current liabilities:
Long-term debt		142,785		142,785		139,560		139,560		143,260		143,260
Pension and postretirement obligations		13,047		13,047		17,655		17,655		17,821		17,821
Deferred income taxes		9,817		7,899		10,118		8,096		16,179		14,159
Uncertain income tax liabilities		625		3,203		621		2,963		840		2,963
Other non-current liabilities		290		290		271		271		266		266
Non-current liabilities		166,564		167,224		168,225		168,545		178,366		178,469
Commitments and Contingencies		-		-		-		-		-		-
STOCKHOLDERS’ EQUITY
Preferred stock		-		-		-		-		-		-
Common stock		958		958		959		959		956		956
Additional paid in capital		39,465		39,465		39,034		39,034		37,063		37,063
Accumulated other comprehensive loss		(4,456)		(4,408)		(7,866)		(7,960)		(7,324)		(7,446)
Retained earnings		32,012		27,412		28,721		24,922		47,685		43,796
Landauer, Inc. stockholders’ equity		67,979		63,427		60,848		56,955		78,380		74,369
Noncontrolling interest		1,642		1,585		1,324		1,267		1,214		1,166
Stockholders’ equity		69,621		65,012		62,172		58,222		79,594		75,535
LIABILITIES AND STOCKHOLDERS’ EQUITY	$	276,833	$	274,706	$	270,857	$	268,746	$	299,044	$	296,316



	December 31, 2012 (Unaudited)				September 30, 2012
(Dollars in Thousands)	Previously Reported		As Restated		Previously Reported		As Revised
ASSETS
Current assets:
Cash and cash equivalents	$	16,497	$	14,927	$	17,633	$	15,675
Receivables, net of allowances		36,391		35,912		35,165		34,686
Inventories		9,199		9,199		8,638		8,725
Deferred income tax asset - current		2,473		1,858		2,414		1,799
Prepaid income taxes		698		836		2,148		2,141
Prepaid expenses and other current assets		2,015		2,015		1,561		1,561
Current assets		67,273		64,747		67,559		64,587
Total property, plant and equipment cost		103,330		103,330		101,375		101,375
Accumulated depreciation and amortization		(49,125)		(49,125)		(46,983)		(46,983)
Net property, plant and equipment		54,205		54,205		54,392		54,392
Equity in joint ventures		22,664		22,115		24,108		24,030
Goodwill		107,001		107,001		106,717		106,717
Intangible assets, net of accumulated amortization		36,793		36,543		37,402		37,202
Dosimetry devices, net of accumulated depreciation		6,537		5,028		6,189		4,724
Other assets		6,366		8,941		5,758		8,619
ASSETS	$	300,839	$	298,580	$	302,125	$	300,271
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,637	$	6,637	$	9,656	$	9,656
Dividends payable		5,342		5,342		5,345		5,345
Deferred contract revenue		15,065		15,865		14,947		15,866
Accrued compensation and related costs		5,520		5,520		8,260		8,124
Other accrued expenses		7,215		7,626		7,096		7,490
Current liabilities		39,779		40,990		45,304		46,481
Non-current liabilities:
Long-term debt		145,847		145,847		141,347		141,347
Pension and postretirement obligations		17,690		17,690		17,586		17,586
Deferred income taxes		15,745		13,727		15,733		13,717
Uncertain income tax liabilities		672		2,576		667		2,352
Other non-current liabilities		326		326		386		386
Non-current liabilities		180,280		180,166		175,719		175,388
Commitments and Contingencies		-		-		-		-
STOCKHOLDERS’ EQUITY
Preferred stock		-		-		-		-
Common stock		955		955		949		949
Additional paid in capital		36,587		36,587		35,898		35,898
Accumulated other comprehensive loss		(5,788)		(5,934)		(5,272)		(5,375)
Retained earnings		47,793		44,627		48,142		45,596
Landauer, Inc. stockholders’ equity		79,547		76,235		79,717		77,068
Noncontrolling interest		1,233		1,189		1,385		1,334
Stockholders’ equity		80,780		77,424		81,102		78,402
LIABILITIES AND STOCKHOLDERS’ EQUITY	$	300,839	$	298,580	$	302,125	$	300,271

The effect of the corrections on the previously issued Consolidated Statements of Operations is as follows:



	Three Months Ended June 30, 2014 (Unaudited)				Three Months Ended March 31, 2014 (Unaudited)				Three Months Ended December 31, 2013 (Unaudited)
(Dollars in Thousands, Except per Share)	Previously Reported		As Restated		Previously Reported		As Restated		Previously Reported		As Restated
Service revenues	$	31,013	$	31,800	$	32,983	$	32,870	$	31,894	$	31,745
Product revenues		3,753		4,068		6,571		6,184		5,811		6,402
Net revenues		34,766		35,868		39,554		39,054		37,705		38,147
Costs and expenses:
Service costs		16,149		16,109		15,195		15,155		15,049		15,010
Product costs		1,830		1,821		3,150		3,177		3,158		3,375
Total cost of sales		17,979		17,930		18,345		18,332		18,207		18,385
Gross profit		16,787		17,938		21,209		20,722		19,498		19,762
Selling, general, and administrative		13,805		13,819		13,735		13,750		14,362		14,226
Goodwill impairment charge		62,188		62,188		-		-		-		-
Acquisition, reorganization and nonrecurring costs		1,558		1,558		109		109		111		111
Operating income		(60,764)		(59,627)		7,365		6,863		5,025		5,425
Equity in income of joint ventures		256		256		535		535		573		1,281
Interest expense, net		(817)		(867)		(975)		(1,014)		(892)		(937)
Other income (expense), net		(22)		(21)		(8)		5		37		159
Income before taxes		(61,347)		(60,259)		6,917		6,389		4,743		5,928
Income tax (benefit) expense		(25,030)		(24,225)		1,954		1,913		1,496		1,899
Net income		(36,317)		(36,034)		4,963		4,476		3,247		4,029
Less: Net income attributed to noncontrolling interest		309		301		(34)		(38)		196		208
Net income attributed to Landauer, Inc.	$	(36,626)	$	(36,335)	$	4,997	$	4,514	$	3,051	$	3,821
Net income per share attributed to Landauer, Inc. shareholders:
Basic	$	(3.86)	$	(3.83)	$	0.52	$	0.47	$	0.32	$	0.40
Weighted average basic shares outstanding		9,482		9,482		9,460		9,460		9,422		9,422
Diluted	$	(3.86)	$	(3.83)	$	0.52	$	0.47	$	0.32	$	0.40
Weighted average diluted shares outstanding		9,482		9,482		9,501		9,501		9,467		9,467



	Year Ended September 30, 2013				Three Months Ended June 30, 2013 (Unaudited)				Three Months Ended March 31, 2013 (Unaudited)
(Dollars in Thousands, Except per Share)	Previously Reported		As Restated		Previously Reported		As Restated		Previously Reported		As Restated
Service revenues	$	126,840	$	126,528	$	31,591	$	31,538	$	32,533	$	32,480
Product revenues		23,360		23,162		4,989		4,768		4,549		4,602
Net revenues		150,200		149,690		36,580		36,306		37,082		37,082
Costs and expenses:
Service costs		59,859		59,931		15,474		15,492		14,863		14,881
Product costs		11,161		11,163		2,490		2,264		2,187		2,213
Total cost of sales		71,020		71,094		17,964		17,756		17,050		17,094
Gross profit		79,180		78,596		18,616		18,550		20,032		19,988
Selling, general, and administrative		50,968		51,115		12,550		12,615		12,578		12,643
Goodwill impairment charge		22,700		22,700		22,700		22,700		-		-
Acquisition, reorganization and nonrecurring costs		1,392		1,392		142		142		300		300
Operating income		4,120		3,389		(16,776)		(16,907)		7,154		7,045
Equity in income of joint ventures		3,881		3,251		471		12		556		143
Interest expense, net		(4,184)		(4,311)		(1,154)		(1,185)		(1,081)		(1,107)
Other income (expense), net		663		747		112		113		224		224
Income before taxes		4,480		3,076		(17,347)		(17,967)		6,853		6,305
Income tax (benefit) expense		(1,216)		(560)		(3,748)		(4,449)		1,620		1,799
Net income		5,696		3,636		(13,599)		(13,518)		5,233		4,506
Less: Net income attributed to noncontrolling interest		860		854		154		145		80		76
Net income attributed to Landauer, Inc.	$	4,836	$	2,782	$	(13,753)	$	(13,663)	$	5,153	$	4,430
Net income per share attributed to Landauer, Inc. shareholders:
Basic	$	0.50	$	0.28	$	(1.46)	$	(1.45)	$	0.54	$	0.46
Weighted average basic shares outstanding		9,434		9,434		9,439		9,439		9,417		9,417
Diluted	$	0.49	$	0.27	$	(1.46)	$	(1.45)	$	0.54	$	0.46
Weighted average diluted shares outstanding		9,482		9,482		9,439		9,439		9,462		9,462



	Three Months Ended December 31, 2012 (Unaudited)				Year Ended September 30, 2012
(Dollars in Thousands, Except per Share)	Previously Reported		As Restated		Previously Reported		As Revised
Service revenues	$	31,469	$	31,416	$	124,979	$	124,800
Product revenues		5,212		5,384		27,421		27,302
Net revenues		36,681		36,800		152,400		152,102
Costs and expenses:
Service costs		14,308		14,326		53,489		53,619
Product costs		2,255		2,368		11,903		11,816
Total cost of sales		16,563		16,694		65,392		65,435
Gross profit		20,118		20,106		87,008		86,667
Selling, general, and administrative		13,391		13,592		51,096		51,218
Acquisition, reorganization and nonrecurring costs		-		-		4,299		4,299
Abandonment charges		-		-		3,443		3,443
Operating income		6,727		6,514		28,170		27,707
Equity in income of joint ventures		1,528		1,057		3,181		3,103
Interest expense, net		(1,033)		(1,065)		(3,308)		(3,435)
Other income (expense), net		95		168		97		205
Income before taxes		7,317		6,674		28,140		27,580
Income tax (benefit) expense		2,274		2,244		8,040		8,206
Net income		5,043		4,430		20,100		19,374
Less: Net income attributed to noncontrolling interest		166		173		830		828
Net income attributed to Landauer, Inc.	$	4,877	$	4,257	$	19,270	$	18,546
Net income per share attributed to Landauer, Inc. shareholders:
Basic	$	0.52	$	0.45	$	2.04	$	1.96
Weighted average basic shares outstanding		9,336		9,336		9,389		9,389
Diluted	$	0.52	$	0.45	$	2.03	$	1.95
Weighted average diluted shares outstanding		9,385		9,385		9,437		9,437

The effect of the corrections on the previously issued Consolidated Statements of Cash Flows is as follows:



	Nine Months Ended June 30, 2014 (Unaudited)				Six Months Ended March 31, 2014 (Unaudited) (a)				Three Months Ended December 31, 2013 (Unaudited) (a)
(Dollars in Thousands)	Previously Reported		As Restated		Previously Reported		As Restated		Previously Reported		As Restated
Cash flows provided from operating activities:
Net income (loss)	$	(28,107)	$	(27,529)	$	8,210	$	8,505	$	3,247	$	4,029
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		11,607		11,419		7,662		7,487		3,894		3,732
Goodwill and other intangible assets impairment charge		62,188		62,188		-		-		-		-
Gain on sale, disposal and abandonment of assets		(35)		(35)		-		-		-		-
Gain on investments		(369)		(505)		(203)		(338)		(146)		(268)
Equity in income of joint ventures		(1,364)		(2,072)		(1,108)		(1,816)		(573)		(1,281)
Dividends from joint ventures		1,340		1,340		1,340		1,340		1,340		1,340
Stock-based compensation and related net tax benefits		1,066		1,066		453		453		282		282
Current and long-term deferred taxes, net		(21,973)		(21,829)		791		847		292		260
Changes in operating assets and liabilities:
Decrease in accounts receivable, net		3,815		3,901		3,119		3,205		4,396		4,482
(Increase) decrease in prepaid taxes		(3,247)		(2,224)		721		1,027		466		901
(Increase) decrease in other operating assets, net		(227)		(73)		571		761		(88)		102
(Decrease) increase in accounts payable and other accrued liabilities		1,379		296		(2,025)		(2,021)		(3,328)		(3,840)
Increase in other operating liabilities, net		608		608		430		430		200		200
Net cash provided by operating activities		26,681		26,551		19,961		19,880		9,982		9,939
Cash flows used by investing activities:
Acquisition of property, plant & equipment		(3,056)		(3,056)		(2,415)		(2,415)		(1,245)		(1,245)
Acquisition of joint ventures and businesses, net of cash acquired		(1,800)		(1,800)		(1,800)		(1,800)		(1,800)		(1,800)
Other investing activities, net		(1,037)		(855)		(637)		(114)		(573)		97
Net cash used by investing activities		(5,893)		(5,711)		(4,852)		(4,329)		(3,618)		(2,948)
Cash flows (used) provided by financing activities:
Net borrowings on revolving credit facility		(51)		(51)		(43)		(43)		(21)		(21)
Long–term borrowings - loan		27,500		27,500		20,000		20,000		14,000		14,000
Long–term borrowings - repayment		(32,000)		(32,000)		(24,500)		(24,500)		(13,000)		(13,000)
Dividends paid to stockholders		(15,771)		(15,771)		(10,520)		(10,520)		(5,274)		(5,274)
Other financing activities, net		(500)		(500)		(347)		(347)		49		49
Net cash (used) provided by financing activities		(20,822)		(20,822)		(15,410)		(15,410)		(4,246)		(4,246)
Effects of foreign currency translation		4		(52)		108		109		(30)		49
Net (decrease) increase in cash and cash equivalents		(30)		(34)		(193)		250		2,088		2,794
Opening balance – cash and cash equivalents		11,184		8,672		11,184		8,672		11,184		8,672
Ending balance – cash and cash equivalents	$	11,154	$	8,638	$	10,991	$	8,922	$	13,272	$	11,466



	Year Ended September 30, 2013 (a)				Nine Months Ended June 30, 2013 (Unaudited) (a)				Six Months Ended March 31, 2013 (Unaudited)
(Dollars in Thousands)	Previously Reported		As Restated		Previously Reported		As Restated		Previously Reported		As Restated
Cash flows provided from operating activities:
Net income	$	5,696	$	3,636	$	(3,323)	$	(4,582)	$	10,276	$	8,936
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		14,924		15,051		10,860		11,142		6,976		7,164
Goodwill impairment charge		22,700		22,700		22,700		22,700		-		-
Gain on sale, disposal and abandonment of assets		(32)		(32)		-		-		-		-
Gain on investments		(282)		(366)		(118)		(192)		-		(73)
Equity in income of joint ventures		(3,881)		(3,251)		(2,555)		(1,212)		(2,084)		(1,200)
Dividends from joint ventures		1,891		1,891		1,891		1,891		1,891		1,891
Stock-based compensation and related net tax benefits		2,541		2,541		2,293		2,293		1,504		1,504
Current and long-term deferred taxes, net		(5,858)		(4,680)		(5,531)		(4,880)		284		718
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable, net		(3,113)		(3,012)		305		305		(1,244)		(1,244)
Increase in prepaid taxes		(985)		(1,130)		(1,349)		(2,246)		(2,755)		(2,836)
Increase in other operating assets, net		(4,036)		(4,547)		(3,479)		(3,950)		(2,839)		(2,956)
(Decrease) increase in accounts payable and other accrued liabilities		(596)		49		(1,157)		(815)		(2,959)		(2,908)
Decrease in other operating liabilities, net		(3,501)		(3,501)		(1,073)		(1,073)		(26)		(26)
Net cash provided by operating activities		25,468		25,349		19,464		19,381		9,024		8,970
Cash flows used by investing activities:
Acquisition of property, plant & equipment		(9,145)		(9,145)		(8,135)		(8,135)		(5,962)		(5,962)
Acquisition of joint ventures and businesses, net of cash acquired		-		-		-		-		-		-
Other investing activities, net		(1,869)		(2,534)		(1,855)		(2,355)		(678)		(513)
Net cash used by investing activities		(11,014)		(11,679)		(9,990)		(10,490)		(6,640)		(6,475)
Cash flows (used) provided by financing activities:
Net borrowings on revolving credit facility		(19)		(19)		-		-		-		-
Long–term borrowings - loan		27,691		27,691		19,600		19,600		10,300		10,300
Long–term borrowings - repayment		(27,187)		(27,187)		(21,387)		(21,387)		(8,587)		(8,587)
Dividends paid to stockholders		(20,897)		(20,897)		(15,658)		(15,658)		(10,429)		(10,429)
Other financing activities, net		(261)		(261)		(460)		(460)		(260)		(260)
Net cash (used) provided by financing activities		(20,673)		(20,673)		(17,905)		(17,905)		(8,976)		(8,976)
Effects of foreign currency translation		(230)		-		(205)		(41)		13		10
Net (decrease) increase in cash and cash equivalents		(6,449)		(7,003)		(8,636)		(9,055)		(6,579)		(6,471)
Opening balance – cash and cash equivalents		17,633		15,675		17,633		15,675		17,633		15,675
Ending balance – cash and cash equivalents	$	11,184	$	8,672	$	8,997	$	6,620	$	11,054	$	9,204



	Three Months Ended December 31, 2012 (Unaudited)				Year Ended September 30, 2012 (a)
(Dollars in Thousands)	Previously Reported		As Restated		Previously Reported		As Revised
Cash flows provided from operating activities:
Net income	$	5,043	$	4,430	$	20,100	$	19,374
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,450		3,544		11,631		11,961
Goodwill impairment charge		-		-		-		-
Loss on sale, disposal and abandonment of assets		-		-		3,455		3,455
Gain on investments		-		(73)		(317)		(425)
Equity in income of joint ventures		(1,528)		(1,057)		(3,181)		(3,103)
Dividends from joint ventures		1,892		1,892		1,393		1,393
Stock-based compensation and related net tax benefits		625		625		2,413		2,413
Current and long-term deferred taxes, net		7		224		2,833		3,309
Changes in operating assets and liabilities:
Increase in accounts receivable, net		(1,114)		(1,114)		(7,636)		(7,457)
Decrease in prepaid taxes		1,449		1,304		2,774		2,800
Increase in other operating assets, net		(1,953)		(1,968)		(1,925)		(2,373)
(Decrease) increase in accounts payable and other accrued liabilities		(3,963)		(3,929)		3,305		3,380
Decrease in other operating liabilities, net		244		244		1,678		1,678
Net cash provided by operating activities		4,152		4,122		36,523		36,405
Cash flows used by investing activities:
Acquisition of property, plant & equipment		(3,714)		(3,714)		(14,519)		(14,519)
Acquisition of joint ventures and businesses, net of cash acquired		-		-		(110,057)		(110,057)
Other investing activities, net		(453)		(57)		(563)		(849)
Net cash used by investing activities		(4,167)		(3,771)		(125,139)		(125,425)
Cash flows (used) provided by financing activities:
Net borrowings on revolving credit facility		-		-		(19,803)		(19,803)
Long–term borrowings - loan		4,300		4,300		144,797		144,797
Long–term borrowings - repayment		-		-		(5,300)		(5,300)
Dividends paid to stockholders		(5,229)		(5,229)		(20,808)		(20,808)
Other financing activities, net		(248)		(248)		(210)		(210)
Net cash (used) provided by financing activities		(1,177)		(1,177)		98,676		98,676
Effects of foreign currency translation		56		78		(341)		(143)
Net (decrease) increase in cash and cash equivalents		(1,136)		(748)		9,719		9,513
Opening balance – cash and cash equivalents		17,633		15,675		7,914		6,162
Ending balance – cash and cash equivalents	$	16,497	$	14,927	$	17,633	$	15,675

(a)

As reported in the Company's 2014 third fiscal quarter Form 10-Q (filed on August 11, 2014), certain errors were identified in the Consolidated Statement of Cash Flows that impacted prior periods. The errors related to the following: treatment of accrued additions for property, plant and equipment, classification of debt financing fees and classification of unrealized gains or losses on investments in the Consolidated Statements of Cash Flows. The prior period consolidated statements of cash flows were revised in the 2014 third fiscal quarter Form 10-Q to correct for these errors and the impacts of the corrections are reflected within the 'Previously Reported' columns above.

Cash and Cash Equivalents

Cash and cash equivalents include cash and investments with an original maturity of three months or less - primarily short-term money market instruments.

Restricted Cash

Restricted cash in the balance sheets as of fiscal 2014 and 2013 in the “Other current assets” line was $162 for each of the years. Restricted cash in the balance sheets as of fiscal 2014 and 2013 in the “Other long-term assets” line was $0 and $162, respectively. Restricted cash includes deposits from an international customer that are released to the Company upon the achievement of specified conditions.

Inventories

Inventories, principally the components associated with dosimetry devices, are valued at lower of cost or market utilizing a first-in, first-out method.

Long-term Investments

The Company had long-term investments of $3,734 and $2,977 at September 30, 2014 and 2013, respectively that are held in a Rabbi trust for benefits under the Company’s deferred compensation plan. Under the plan, participants designate investment options to serve as the basis for measurement of the notional value of their accounts. The investments, classified as trading securities, include a money market fund and mutual funds that are publicly traded. Trading securities are carried at fair value with unrealized gains and losses included in earnings. The fair value of the shares or underlying securities of the funds is based on quoted market prices.

The Company had long-term investments of $2,382 and $2,188 at September 30, 2014 and 2013, respectively, consisting of debt mutual funds classified as available-for-sale securities. Available-for-sale securities are carried at fair value with unrealized gains and losses, net of tax, reported in other comprehensive income. The cost of securities sold is based on the specific identification method. The investments are valued based on the net asset value (“NAV”) of the underlying securities as provided by the investment account manager. The investments are not restricted or subject to a lockup and may be redeemed on demand. Notice within a certain period of time prior to redemption is not required.

Long-term investments are included in other assets.

Revenue Recognition and Deferred Contract Revenue

The majority of the Radiation Measurement revenues are realized from radiation measurement services and other services incidental to radiation dose measurement. The measuring and monitoring services provided by the Company to its customers are of a subscription nature and are continuous. The Company views its business in the Radiation Measurement segment as services provided to customers over a period of time and the wear period is the period over which those services are provided. Badge production, wearing of badges, badge analysis, and report preparation are integral to the benefit that the Company provides to its customers. These services are provided to customers on an agreed-upon recurring basis (monthly, bi-monthly, quarterly, semi-annually or annually) that the customer chooses for the wear period. Revenue is recognized on a straight-line basis, adjusted for changes in pricing and volume, over the wear period. Revenues are recognized over the periods in which the customers wear the badges irrespective of whether invoiced in advance or in arrears.

Many customers pay for these services in advance. The amounts recorded as deferred contract revenue in the consolidated balance sheets represent customer deposits invoiced in advance during the preceding twelve months for services to be rendered over the succeeding twelve months, and are net of services rendered through the respective consolidated balance sheet date. Management believes that the amount of deferred contract revenue fairly represents the remaining business activity with customers invoiced in advance.

Other services incidental to measuring and monitoring augment the basic radiation measurement services that the Company offers, providing administrative and informational tools to customers for the management of their radiation detection programs. Other service revenues are recognized upon delivery of the reports to customers or as other such services are provided.

The Company sells radiation measurement products to its customers, principally InLight products, for their use in conducting radiation measurements or managing radiation detection programs. The Company recognizes Radiation Measurement segment product revenues upon shipment or delivery of goods when title and risk of loss pass to customers.

The Company, through its Medical Physics segment, offers full scope medical physics services to hospitals and radiation therapy centers. Services offered include, but are not limited to, clinical physics support in radiation oncology, commissioning services, special projects support and imaging physics services. Delivery of the medical physics services can be of a contracted, recurring nature or as a discrete project with a defined service outcome. Recurring services often are provided on the customer's premises by a full-time employee or fraction of a full-time employee. Revenue is recognized for recurring services on a straight-line basis over the life of the contract unless there is another discernable pattern as the services are rendered. Revenue is recognized for fee for service projects when the service is delivered.

Contracted services are billed on an agreed-upon recurring basis, either in advance or arrears of the service being delivered. Customers may be billed monthly, quarterly, or at some other regular interval over the contracted period. The amounts recorded as deferred revenue represent amounts invoiced in advance of delivery of the service. Management believes that the amount of deferred contract revenue fairly represents remaining business activity with customers invoiced in advance.

Fee for service revenue is typically associated with much shorter contract periods, or with discrete individual projects, and revenue is recognized upon completion of the project and customer acceptance thereof.

Additional medical physics services under the full scope offering of the medical physics practice groups comprising the Medical Physics segment include radiation center design and consulting, accreditation work and quality assurance reviews.

The Company, through its Medical Products segment, offers high quality medical consumable accessories used in radiology, radiation therapy, and image guided surgery procedures. The Medical Products segment recognizes revenues upon shipment or delivery of goods when title and risk of loss pass to customers.

The amounts recorded as deferred contract revenue in the consolidated balance sheets represent invoiced amounts in advance of delivery of the service, and are net of services rendered through the respective consolidated balance sheet date. Deferred contract revenue was $14,750 and $14,509, respectively, as of September 30, 2014 and 2013.

Concentrations of credit risk with respect to accounts receivable are limited due to the high credit quality of the Company’s major customers, as well as the large number and geographic dispersion of smaller customers. The large diversified customer base results in no single customer representing greater than 5% of revenue. The Company routinely reviews outstanding customer balances and records allowances for bad debts as necessary.

Research and Development

The cost of research and development programs is charged to selling, general and administrative expense as incurred and amounted to $5,813, $4,121 and $3,957 in fiscal 2014, 2013 and 2012, respectively. Research and development costs include salaries and allocated employee benefits, third-party research contracts and supplies.

Equity in Joint Ventures

Entities in which the Company does not have a controlling financial interest but is considered to have significant influence are accounted for on the equity method. Under the equity method, a company records its share of net income or loss of an investment based on its percentage ownership.

Long-lived Assets

Property, plant and equipment are recorded at cost. Plant, equipment and internal software are depreciated on a straight-line basis over their estimated useful lives, which are primarily 30 years for buildings, three to eight years for equipment and five to ten years for internal software. Dosimetry devices, principally badges, and software are amortized on a straight-line basis over their estimated useful lives, which are thirty months to eight years. Maintenance and repairs are charged to expense, and renewals and betterments are capitalized.

Long-lived assets, including definite-lived intangible assets, are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying value of the assets may not be fully recoverable. The Company performs undiscounted operating cash flow analyses to determine if an impairment exists. For purposes of recognition and measurement of an impairment for assets held for use, the Company groups assets and liabilities at the lowest level for which cash flows are separately identifiable. If an impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. The Company also reviews the estimated remaining useful lives of long-lived assets whenever events or changes in business circumstances indicate the lives may have changed.

Advertising

The Company expenses the costs of advertising as incurred. Advertising expense, primarily related to product shows and exhibits, amounted to $1,191, $1,339 and $920 in fiscal 2014, 2013 and 2012, respectively.

Income Taxes

The Company files income tax returns in the jurisdictions in which it has sufficient presence. The Company estimates the income tax provision for income taxes that are currently payable, and records deferred tax assets and liabilities for the temporary differences in tax consequences between the financial statements and tax returns. The Company records a valuation allowance in situations where the realization of deferred tax assets is not more likely than not. The Company recognizes the financial statement effects of its tax positions in its current and deferred tax assets and liabilities when it is more likely than not that the position will be sustained upon examination by a taxing authority. Further information regarding the Company’s income taxes is contained under the footnote “Income Taxes” of this Annual Report on Form 10-K.

Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, investments held in a Rabbi trust for benefits under the Company’s deferred compensation plan, long-term investments consisting primarily of debt mutual funds, pension assets, accounts payable, and debt. The carrying value of the Company’s financial instruments approximates their fair value.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Stock-Based Compensation

The Company measures and recognizes compensation cost at fair value for all share-based payments, including stock options.

The Company has not granted stock options subsequent to fiscal 2005. Awards of stock options in prior fiscal years were granted with an exercise price equal to the market value of the stock on the date of grant. The fair value of stock options was estimated using the Black-Scholes option-pricing model. Expected volatility and the expected life of stock options were based on historical experience. The risk free interest rate was derived from the implied yield available on U.S. Treasury zero-coupon issues with a remaining term, as of the date of grant, equal to the expected term of the option. The dividend yield was based on annual dividends and the fair market value of the Company’s stock on the date of grant. Compensation expense was recognized ratably over the vesting period of the stock option.

Subsequent to fiscal 2005, key employees and/or non-employee directors have been granted restricted share awards that consist of performance shares and time vested restricted stock. Performance shares represent a right to receive shares of common stock upon satisfaction of performance goals or other specified metrics. Restricted stock represents a right to receive shares of common stock upon the passage of a specified period of time. Upon the adoption of the Company’s Incentive Compensation Plan in February 2008, the fair value of performance shares and restricted stock granted under the new plan is based on the Company’s closing stock price on the date of grant. Compensation expense for performance shares is recorded ratably over the vesting period, assuming that achievement of performance goals is deemed probable. Compensation expense for restricted stock is cliff vested and recognized ratably over the vesting period. The Company also retains the discretion to make additional awards to executives at other times for recruiting or retention purposes. Stock-based compensation for these awards can be either cliff or graded vested depending on the agreement, and recognized ratably over the vesting period

Forfeitures of awards are estimated at the time of grant and stock-based compensation cost is recognized only for those awards expected to vest. The Company uses historical experience to estimate projected forfeitures. The Company recognizes the cumulative effect on current and prior periods of a change in the forfeiture rate, or actual forfeitures, as compensation cost or as a reduction of cost in the period of the revision.

Employee Benefit Plans

The Company sponsors postretirement benefit plans to provide pension, supplemental retirement funds, and medical expense reimbursement to eligible retired employees, as well as a directors' retirement plan that provides for certain retirement benefits payable to non-employee directors. Further information on these benefit plans is contained under the footnote “Employee Benefit Plans” of this Annual Report on Form 10-K.

Goodwill and Other Intangible Assets

Goodwill and other indefinite-lived intangible assets must be assessed for impairment annually or more frequently if events or changes in circumstances indicate that such assets might be impaired. Triggering events include, but are not limited to a current period operating or cash flow loss; a product, technology or service introduced by a competitor; or a loss of key personnel.

Goodwill impairment testing first requires a comparison between the carrying value and fair value of a reporting unit with associated goodwill. Carrying value is based on the assets and liabilities associated with the operations of that reporting unit. The Company estimates the fair value of the reporting units using the income approach and the market approach. If the Company believes that the fair value of a reporting unit exceeds its carrying value by a substantial margin, the Company may perform a qualitative analysis instead.

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 unit (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.

The impairment test for an indefinite-lived intangible asset other than goodwill may consist of first assessing qualitative factors, such as company, industry and economic trends. If determined to be necessary, the next step compares the fair value of the intangible asset to its carrying amount. If the carrying amount exceeds the fair value, an impairment loss is recognized for the difference.

Recent Accounting Pronouncements

In February 2013, the FASB issued new guidance on the presentation of comprehensive income. This guidance requires reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. The standard would not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the guidance would require an entity to provide enhanced disclosures to present separately by component reclassifications out of accumulated other comprehensive income. This guidance was adopted by the Company in the first quarter of fiscal 2014. The adoption did not have a material impact on its consolidated financial statements.

In March 2013, the FASB issued an accounting update that clarifies the applicable guidance for the release of the cumulative translation adjustment when an entity ceases to have a controlling financial interest in a subsidiary or a group of assets that is a business within a foreign entity. The guidance outlines the events when cumulative translation adjustments should be released into net income and is intended by FASB to eliminate some disparity in current accounting practice. This guidance was adopted by the Company in the first quarter of fiscal 2014. The adoption did not have a material impact on its consolidated financial statements.

In July 2013, the FASB issued new guidance to reduce the diversity in presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. This requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions listed in the guidance. This guidance is effective for the Company in the first quarter of fiscal 2015. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In April 2014, the FASB issued new guidance related to the definition of a discontinued operation and requires new disclosure of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This new guidance is effective for annual periods beginning on or after December 15, 2014 and interim periods within those years. Beginning in the first quarter of fiscal 2016 the Company will apply the new guidance, as applicable, to future discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In May 2014, the FASB issued new guidance for recognizing revenue from contracts with customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. This guidance is effective for the Company in the first quarter of fiscal 2017. Early adoption is not permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In June 2014, the FASB issued new guidance on accounting for share-based payments requiring a specific performance target to be achieved in order for employees to become eligible to vest in the awards when that performance target may be achieved after the requisite service period for the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period for which the requisite service has already been rendered. This guidance is effective for the Company in the first quarter of fiscal 2016. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its consolidated financial statements.

In August 2014, the FASB issued new guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of doubt about the entity’s ability to continue as a going concern. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This guidance will be effective for the Company in the first quarter of fiscal 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In November 2014, the FASB issued new guidance on accounting for pushdown accounting in the event of a business combination. This update provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. This guidance is effective for the Company in the first quarter of fiscal 2015. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.