10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

Commission File Number 1-9788

LANDAUER, INC.
(Exact name of registrant as specified in its charter)
Delaware	06-1218089
(State or other jurisdiction of	(I.R.S. Employer
Incorporation or organization)	Identification Number)
2 Science Road, Glenwood, Illinois; 60425
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (708) 755-7000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes S No £

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes S No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	£	Accelerated filer	S
Non-accelerated filer  (Do not	£	Smaller reporting company	£
check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes £ No S

Number of shares of Common Stock, $.10 par value, outstanding at July 26, 2012: 9,451,563.

1

TABLE OF CONTENTS

PART I    FINANCIAL INFORMATION
Item 1.	Financial Statements
		Consolidated Balance Sheets (Unaudited)	3
		Consolidated Statements of Income (Unaudited)	4
		Consolidated Statements of Stockholders’ Equity and Comprehensive Income (Unaudited)	5
		Consolidated Statements of Cash Flows (Unaudited)	6
		Notes to Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		32
Item 4.	Controls and Procedures		33
PART II    OTHER INFORMATION
Item 1.	Legal Proceedings		34
Item 1A.	Risk Factors		34
Item 6.	Exhibits		34
SIGNATURE			35

2

PART I  FINANCIAL INFORMATION

Item 1.  Financial Statements

LANDAUER, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)

(Dollars in Thousands)	June 30, 2012		September 30, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	19,174	$	7,914
Receivables, net of allowances of $893 and $794,  respectively		31,771		25,516
Inventories		7,159		8,286
Prepaid income taxes		147		4,921
Prepaid expenses and other current assets		4,315		4,005
Current assets		62,566		50,642
Property, plant and equipment, at cost		108,504		96,798
Accumulated depreciation		(52,812)		(49,157)
Net property, plant and equipment		55,692		47,641
Equity in joint ventures		11,460		10,699
Goodwill		105,911		39,962
Intangible assets, net of accumulated amortization of $8,884 and $7,355, respectively		38,677		10,908
Dosimetry devices, net of accumulated depreciation of $10,899 and $9,728, respectively		6,351		5,618
Other assets		5,591		3,186
Assets	$	286,248	$	168,656
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	8,162	$	5,457
Dividends payable		5,354		5,301
Deferred contract revenues		16,651		14,713
Short-term debt		0		19,805
Accrued compensation and related costs		6,449		5,607
Other accrued expenses		5,944		7,066
Current liabilities		42,560		57,949
Non-current liabilities:
Long-term debt		127,587		0
Pension and postretirement obligations		14,613		14,202
Deferred income taxes		14,872		12,805
Other non-current liabilities		1,069		1,292
Non-current liabilities		158,141		28,299
Stockholders’ equity:
Preferred stock, $.10 par value per share, authorized 1,000,000 shares; none issued		0		0
Common stock, $.10 par value per share, authorized 20,000,000 shares;  9,512,973 and 9,462,807 shares issued and outstanding at June 30, 2012 and September 30, 2011, respectively		951		946
Additional paid in capital		35,867		33,791
Accumulated other comprehensive loss		(5,087)		(3,129)
Retained earnings		52,665		49,724
Landauer, Inc. stockholders’ equity		84,396		81,332
Noncontrolling interest		1,151		1,076
Stockholders’ equity		85,547		82,408
Liabilities and Stockholders’ Equity	$	286,248	$	168,656

The accompanying notes are an integral part of these financial statements.

.

3

LANDAUER, INC. AND SUBSIDIARIES

Consolidated Statements of Income (Unaudited)

	Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands, Except per Share)	2012		2011		2012		2011
Net revenues	$	39,205	$	29,158	$	114,968	$	89,923
Costs and expenses:
Cost of sales		17,357		12,077		48,292		34,764
Selling, general and administrative		12,251		9,231		37,216		27,090
Acquisition and reorganization costs		348		18		2,509		230
Costs and expenses		29,956		21,326		88,017		62,084
Operating income		9,249		7,832		26,951		27,839
Equity in income of joint ventures		684		575		2,555		1,701
Interest income (expense), net		(1,113)		14		(2,566)		14
Other income (expense), net		(50)		(65)		0		(48)
Income before taxes		8,770		8,356		26,940		29,506
Income taxes		2,014		2,667		7,860		9,698
Net income		6,756		5,689		19,080		19,808
Less:  Net income attributed to noncontrolling interest		190		153		479		456
Net income attributed to Landauer, Inc.	$	6,566	$	5,536	$	18,601	$	19,352
Net income per share attributable to Landauer, Inc. shareholders:
Basic	$	0.70	$	0.59	$	1.98	$	2.06
Weighted average basic shares outstanding		9,371		9,340		9,357		9,330
Diluted	$	0.69	$	0.59	$	1.97	$	2.05
Weighted average diluted shares outstanding		9,412		9,386		9,397		9,376

The accompanying notes are an integral part of these financial statements.

4

LANDAUER, INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity

and Comprehensive Income (Unaudited)

	Landauer, Inc. Stockholders’ Equity
(Dollars in Thousands)	Common Stock Shares	Common Stock		Addi- tional Paid in Capital		Accumu- lated Other Compre- hensive Income (Loss)		Retained Earnings		Non- Controlling Interest		Total Stock- holders’ Equity		Compre- hensive Income (Loss)
Balance   September 30,   2011	9,462,807	$	946	$	33,791	$	(3,129)	$	49,724	$	1,076	$	82,408
Stock-based   compensation   arrangements	50,166		5		2,076		0		0		0		2,081
Dividends	0		0		0		0		(15,660)		(324)		(15,984)
Net income	0		0		0		0		18,601		479		19,080	$	19,080
Foreign currency   translation   adjustment	0		0		0		(2,194)		0		(80)		(2,274)		(2,274)
Defined benefit   pension and   postretirement   plans activity	0		0		0		236		0		0		236		236
Comprehensive   Income														$	17,042
Balance   June 30,   2012	9,512,973	$	951	$	35,867	$	(5,087)	$	52,665	$	1,151	$	85,547

	Landauer, Inc. Stockholders’ Equity
(Dollars in   Thousands)	Common Stock Shares	Common Stock		Addi- tional Paid in Capital		Accumu- lated Other Compre- hensive Income (Loss)		Retained Earnings		Non- Controlling Interest		Total Stock- holders’ Equity		Compre- hensive Income (Loss)
Balance   September 30,   2010	9,452,765	$	945	$	32,688	$	(783)	$	45,940	$	913	$	79,703
Stock-based   compensation   arrangements	37,442		4		1,502		0		0		0		1,506
Dividends	0		0		0		0		(15,574)		(241)		(15,815)
Net income	0		0		0		0		19,352		456		19,808	$	19,808
Foreign currency   translation   adjustment	0		0		0		1,594		0		37		1,631		1,631
Defined benefit   pension and   postretirement   plans activity	0		0		0		(5)		0		0		(5)		(5)
Comprehensive   Income														$	21,434
Balance   June 30,   2011	9,490,207	$	949	$	34,190	$	806	$	49,718	$	1,165	$	86,828

The accompanying notes are an integral part of these financial statements.

5

LANDAUER, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended
	June 30,
(Dollars in Thousands)	2012		2011
Cash flows from operating activities:
Net income	$	19,080	$	19,808
Adjustments to reconcile net income to net cash provided by   operating activities:
Depreciation and amortization		7,752		5,750
Equity in income of joint ventures, net of dividends		(1,162)		(790)
Stock-based compensation and related net tax benefits		2,361		1,636
Current and long-term deferred taxes, net		2,430		(105)
Increase in accounts receivable, net		(4,480)		(1,505)
Decrease in prepaid taxes		4,774		5,160
Other operating assets, net		(2,265)		(3,459)
Other operating liabilities, net		1,963		1,673
Net cash provided by operating activities		30,453		28,168
Cash flows used by investing activities:
Acquisition of property, plant and equipment		(11,476)		(9,627)
Acquisition of joint ventures and businesses, net of cash acquired		(98,297)		(1,800)
Other investing activities, net		(754)		(1,844)
Net cash used by investing activities		(110,527)		(13,271)
Cash flows provided (used) by financing activities:
Net borrowings on revolving credit facility		(19,805)		378
Long-term borrowings - proceeds		132,887		-
Long-term borrowings - repayment		(5,300)		-
Dividends paid to stockholders		(15,607)		(15,413)
Other financing activities, net		(273)		(110)
Net cash provided (used) by financing activities		91,902		(15,145)
Effects of foreign currency translation		(568)		608
Net increase in cash and cash equivalents		11,260		360
Opening balance - cash and cash equivalents		7,914		7,659
Ending balance - cash and cash equivalents	$	19,174	$	8,019

The accompanying notes are an integral part of these financial statements.

6

LANDAUER, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

June 30, 2012

(Dollars in thousands)

(1)        Basis of Presentation

The accompanying unaudited consolidated financial statements reflect the financial position of Landauer, Inc. and subsidiaries (“Landauer” or “the Company”), including businesses acquired and investments in joint ventures as of the effective date of the transactions.

The results of operations for the three and nine month periods ended June 30, 2012 and 2011 are not necessarily indicative of the results to be expected for the full fiscal year. The September 30, 2011 balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for a fair statement of such financial statements. Certain reclassifications have been made in the financial statements for comparative purposes. These reclassifications have no effect on the results of operations or financial position of the Company.

These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2011 and other financial information filed with the Securities and Exchange Commission (the “SEC”).

The accounting policies followed by the Company are set forth in the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. There have been no changes to the accounting policies for the three and nine month periods ended June 30, 2012.

(2)        Business Combinations

Acquisition of IZI Medical Products, LLC

On November 14, 2011, Landauer acquired all of the outstanding equity interests of IZI Medical Products, LLC (“IZI”), a leading provider of high quality medical consumable accessories used in radiology, radiation therapy, and image guided surgery procedures, for $93,000 plus working capital and the assumption of liabilities. The Company completed the acquisition of IZI as a platform to expand into the radiation oncology, radiology, and image guided surgery end markets. The operating results of IZI are reported in the Medical Products reporting segment.

A portion of the purchase price, in the amount of $26,941, was applied to repay the outstanding indebtedness of IZI and certain unpaid expenses incurred by IZI and other disclosed parties in connection with the transaction. Landauer also deposited $9,300 of the purchase price into an escrow account, which will be held until January 2013 and applied to the settlement of the IZI seller’s indemnification obligations, if any, in connection with the transaction. The Company funded the acquisition through borrowings under the new credit agreement with a syndicate of lenders led by BMO Harris and PNC Bank.

7

The following table summarizes the $94,283 of consideration transferred to acquire IZI and the assets acquired and liabilities assumed based on their fair values as of the date of the acquisition.

Current assets	$	4,587
Property, plant and equipment		763
Intangible assets		27,000
Goodwill		64,069
Non-current deferred taxes, net		212
Other non-current assets		24
Current liabilities		(2,196)
Other long-term liabilities		(176)
Total assets acquired and liabilities assumed	$	94,283

The excess of the consideration transferred over the fair value of the net tangible and intangible assets acquired resulted in goodwill of $64,069, which is attributable primarily to the earnings power of the future products and services expected to be produced by IZI, new customer expansion opportunities in adjacent markets that are expected to result from the business combination with Landauer, and the potential to acquire or merge with other businesses. The goodwill has been assigned to the Medical Products reporting segment. For income tax purposes, the Company will deduct $64,641 of goodwill, which will be amortized over 15 years. The Company acquired trademarks and tradenames in the amount of $2,000 which have indefinite lives, patents in the amount of $2,000 which are being amortized over 7 years, and $23,000 of customer relationships which are being amortized over 15 years. For income tax purposes, the values of the trademarks and tradenames, patents and customer relationships will be amortized over 15 years.

IZI’s revenues of $10,454 and net income of $2,719 were recognized in the Company’s consolidated financial statements for the period from November 14, 2011 to June 30, 2012.

Unaudited Proforma Results

The following unaudited proforma summary presents Landauer’s consolidated information as if IZI had been acquired on October 1, 2010.

	Nine months ended June 30,
	2012		2011
Proforma revenues	$	117,226	$	103,922
Proforma net income attributed to Landauer, Inc.		18,735		18,643

The proforma results include adjustments to IZI’s accounting policies to align with those of Landauer. Certain other adjustments to IZI’s results, together with the consequential tax effects, include: customer freight expense netted against customer freight revenues; increased costs to reflect the impact of the increase, upon acquisition, in finished goods fair value; additional amortization for intangible assets; elimination of management fees charged by IZI’s former majority shareholder; and elimination of IZI’s interest expense related to its pre-existing debt agreements. The proforma adjustments also reflect: additional interest expense incurred in connection with debt financing of the acquisition compared to interest expense under its pre-existing debt agreements; amortization of debt issuance costs; and the income tax impact of these adjustments. The unaudited proforma information is not necessarily indicative of the results of operations that would have been achieved if the acquisition had been effective as of the beginning of the periods presented.

8

Other Acquisitions

During the first nine months of fiscal 2012, the Company completed the acquisition of a medical physics practice in North Carolina, which was not material to the Company’s consolidated financial statements. During the first nine months of fiscal 2011, the Company established an unconsolidated joint venture in Turkey and completed the acquisition of two diagnostics physics practices, none of which were individually, or in the aggregate, material to the Company's consolidated financial statements.

(3)        Acquisition and Reorganization Costs

Acquisition and reorganization costs for the nine months ended June 30, 2012 and 2011 were $2,509 and $230, respectively. Such expenses were primarily for professional fees with accounting, financial, legal and tax advisors to support the due diligence, transaction structure and accounting for acquisitions, as well as costs in the pursuit of acquisitions that may not be consummated. In fiscal 2012, such expenses primarily supported the acquisition of IZI as described under the footnote “Business Combinations.” In fiscal 2011, such expenses were related to the establishment of an unconsolidated joint venture in Turkey and the acquisition of two medical physics practices.

(4)        Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill, by reportable segment, for the nine months ended June 30, 2012 were as follows:

	Radiation Measurement		Medical Physics		Medical Products		Total
Goodwill at September 30, 2011	$	20,225	$	19,737	$	0	$	39,962
Increase related to acquisitions		0		2,874		64,069		66,943
Effects of foreign currency		(994)		0		0		(994)
Goodwill at June 30, 2012	$	19,231	$	22,611	$	64,069	$	105,911

Other intangible assets consisted of the following:

	June 30, 2012				September 30, 2011
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer lists	$	40,615	$	7,704	$	15,645	$	6,467
Trademarks and tradenames		3,024		0		1,024		0
Licenses and patents		3,345		623		1,017		331
Other intangibles		577		557		577		557
Intangible assets	$	47,561	$	8,884	$	18,263	$	7,355

No impairment of goodwill or other intangible assets was recorded as of June 30, 2012.

9

(5)        Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. A fair value hierarchy with three tiers has been established to prioritize the inputs to valuation techniques used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. Level 1 inputs include quoted prices in active markets for identical assets and liabilities. Level 2 inputs consist of observable inputs other than quoted prices in active markets or indirectly observable through corroboration with observable market data. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.

As of June 30, 2012, the Company’s financial assets measured and recorded at fair value on a recurring basis were comprised of investments in trading securities, which are reported in other long-term assets. The investments 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 include a money market fund and mutual funds that are publicly traded. The fair values of the shares or underlying securities of these funds are based on quoted market prices and, therefore, are categorized as Level 1 in the fair value hierarchy.

Financial assets measured at fair value on a recurring basis are summarized below:

	Fair Value Measurements at June 30, 2012 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset Category:
Cash equivalents	$	44	$	0	$	0
Mutual funds		2,281		0		0
Total financial assets at fair value	$	2,325	$	0	$	0

	Fair Value Measurements at September 30, 2011 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset Category:
Cash equivalents	$	27	$	0	$	0
Mutual funds		1,752		0		0
Total financial assets at fair value	$	1,779	$	0	$	0

As of June 30, 2012, the carrying amount of the Company’s long-term debt approximates fair value as the stated interest rates are variable in relation to prevailing market rates.

10

(6)        Income Taxes

The effective tax rate was 29.2% and 32.9% for the first nine months of fiscal 2012 and 2011, respectively. The decline in the effective tax rate was due primarily to cumulative prior year credits in a foreign tax jurisdiction that were approved during the first half of the current fiscal year and additional U.S. foreign tax credits and research and development credits for fiscal 2011 realized during the third quarter of fiscal 2012 as a result of filing the U.S. Federal, state and local income tax returns.

As of June 30, 2012, the Company's U.S. income tax returns for fiscal 2008 and subsequent years remained subject to examination by the Internal Revenue Service (“IRS”). As of June 30, 2012, the Company is not currently under any income tax audit by the IRS or any state, local or foreign jurisdictions. State income tax returns generally have statutes of limitations for periods between three and four years from the date of filing. The Company's foreign operations have statutes of limitations on the examination of income tax returns for periods between two and six years.

The Company's reserves for uncertain tax positions are reviewed periodically and are adjusted as events occur that affect the estimated liability for additional taxes, such as the lapsing of applicable statutes of limitations, the conclusion of tax audits and the measurement of additional tax. During the third quarter of fiscal 2012, the Company recorded a $140 tax benefit due to a lapsing of the fiscal year 2008 U.S. statute of limitations. The amount of unrecognized tax benefits and the related interest and penalties at June 30, 2012 was $679. The amount of unrecognized tax benefits and the related interest and penalties expected to reverse within the next year is estimated to be approximately $225 to $245.

On December 23, 2011, the IRS published regulations (in proposed and temporary format) under IRC Section 263(a) on the deduction and capitalization of expenditures related to tangible property, i.e., the “repair regulations.” These regulations are generally effective for taxable years beginning on or after January 1, 2012, or where applicable, to amounts paid or incurred to produce or acquire property in a taxable year beginning on or after such date. On March 7, 2012, additional Revenue Procedures were released addressing sections of the regulations published in December 2011. The Company is currently researching its existing policies, along with the IRS Regulations and Revenue Procedures issued, to understand the impact to the Company's income tax liability. The Company does not expect these regulations and procedures to materially impact its consolidated financial statements.

(7)        Cash Dividends

On May 25, 2012, the Company declared a regular quarterly cash dividend in the amount of $0.55 per share for the third quarter of fiscal 2012. The dividends were paid on July 3, 2012 to shareholders of record as of June 8, 2012. Regular quarterly cash dividends of $0.55 per share, or $2.20 annually, were declared during fiscal 2011.

Time based restricted stock awards issued to employees and non-employee directors are eligible for dividends at the same rate paid to shareholders. The Company accrues for dividends on performance stock awards, which will be paid upon the vesting, in various future periods, of the related restricted performance stock awards assuming the performance criteria set forth in the agreements relating to such awards are met.

11

(8)        Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in the accompanying unaudited consolidated balance sheets consist of defined benefit pension and postretirement plan adjustments for net gains, losses and prior service costs, net defined benefit plan curtailment loss and cumulative foreign currency translation adjustments. The following table sets forth the balances in accumulated other comprehensive loss for the periods ended:

	June 30, 2012		September 30, 2011
Foreign currency translation adjustments	$	92	$	2,286
Defined benefit pension and postretirement plans activity		(5,179)		(5,415)
Total accumulated other comprehensive loss	$	(5,087)	$	(3,129)

(9)        Income per Common Share

Basic net income per share was computed by dividing net income available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share was computed by dividing net income available to common stockholders for the period by the weighted average number of shares of common stock that would have been outstanding assuming dilution from stock-based compensation awards during the period.

The Company’s time vested restricted stock, which is a participating security, is included in the computation of earnings per share pursuant to the two-class method. Undistributed net income allocated to unvested restricted stock was not material for the three and nine month periods ended June 30, 2012 and 2011. The following table sets forth the computation of net income per share:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
Basic Net Income per Share:
Net income attributed to Landauer, Inc.	$	6,566	$	5,536	$	18,601	$	19,352
Less:  Income allocated to unvested restricted stock		34		32		101		95
Net income available to common stockholders	$	6,532	$	5,504	$	18,500	$	19,257
Basic weighted averages shares outstanding		9,371		9,340		9,357		9,330
Net income per share – Basic	$	0.70	$	0.59	$	1.98	$	2.06
Diluted Net Income per Share:
Net income attributed to Landauer, Inc.	$	6,566	$	5,536	$	18,601	$	19,352
Less:  Income allocated to unvested restricted stock		34		32		101		95
Net income available to common stockholders	$	6,532	$	5,504	$	18,500	$	19,257
Basic weighted averages shares outstanding		9,371		9,340		9,357		9,330
Effect of dilutive securities		41		46		40		46
Diluted weighted averages shares outstanding		9,412		9,386		9,397		9,376
Net income per share – Diluted	$	0.69	$	0.59	$	1.97	$	2.05

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(10)      Credit Facility

In fiscal 2010, the Company borrowed $18,000 under its credit agreement with U.S. Bank (“old credit agreement”), originally dated October 5, 2007. As of September 30, 2011, the debt was classified as a current liability as the old credit agreement contained a subjective acceleration clause as well as a Company elected arrangement which provided for automatic draws or pay downs on the credit facility on a daily basis after taking into account operating cash needs. As of September 30, 2011, the Company had borrowings of $19,805 outstanding under the old credit agreement. In connection with its acquisition of IZI in November 2011, the Company terminated the old credit agreement.

On November 14, 2011, Landauer entered into a five-year syndicated revolving credit agreement with a group of lenders, pursuant to which, the Company has been provided a senior secured reducing revolving credit facility (“new credit agreement”) of up to $175,000 plus the ability to increase the line by an additional $25,000. Landauer borrowed $132,887 under the new credit agreement to finance the IZI acquisition, to refinance existing indebtedness and to fund certain fees and expenses associated with the closing of the new credit facility. The new credit agreement matures on November 14, 2016, and is secured by a first-priority perfected security interest in substantially all of the tangible and intangible assets of Landauer and its existing and future material domestic subsidiaries, including a pledge of 100% of the stock of each domestic subsidiary and a pledge of 66% of the stock of each first-tier foreign subsidiary.

Borrowings under the new credit agreement bear interest, at Landauer’s option, at a rate equal to either (a) the rate per annum for deposits in U.S. Dollars as reflected on the Reuters Screen LIBOR01 as of 11:00 a.m. (London, England time) for the interest period relevant to such borrowing (adjusted for any statutory reserve requirements for Eurocurrency liabilities) plus the applicable margin (the “LIBO Rate”) or (b) the greatest of (i) the federal funds rate for the borrowing day plus 0.5%, (ii) the prime rate in effect on the borrowing day and (iii) the LIBO Rate for deposits in dollars for a one month interest period on the borrowing day plus 1.0%, plus the applicable margin. Loans under the new credit agreement may be prepaid at any time without penalty with same-day written notice, subject to, in the case of loans bearing interest on the LIBO Rate, payment of customary breakage costs for prepayments made prior to the last day of the applicable interest period.

The new credit agreement includes limitations on indebtedness, liens, investments and acquisitions, loans and advances, mergers and consolidations, sales of assets, dividends, stock repurchases and other restricted payments. In addition, the new credit agreement requires that Landauer maintain (i) a minimum net worth at all times of $65,000, (ii) a maximum leverage ratio ranging between 3.00 to 1.00 and 2.50 to 1.00, as applicable for each fiscal quarter, and (iii) a minimum fixed charge coverage ratio ranging between 1.15 to 1.00 and 1.35 to 1.00, as applicable for each fiscal quarter. The new credit agreement also includes customary events of default, including but not limited to failure to pay any principal when due or any interest, fees or other amounts within three business days when due, default under any covenant or any agreement in any loan document, cross-default with other debt agreements, bankruptcy and change of control. As of June 30, 2012, the Company was in compliance with the covenants contained in the new credit agreement.

Borrowings under the new credit agreement are classified as long-term debt. As of June 30, 2012, the Company repaid $5,300 of the borrowings under the new credit facility. As of June 30, 2012, the balance outstanding under the Company’s new credit agreement was $127,587. Interest expense on the borrowings under the new and old credit facilities for the nine months ended June 30, 2012 was $2,759. The weighted average interest rate for the base and LIBOR rate was 3.10% for the first nine months of fiscal 2012. At June 30, 2012 the applicable interest rate for the base and LIBOR rate separately was 5.0% and 2.991% per annum, respectively.

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(11)      Stock-Based Compensation

Stock-based compensation expenses for restricted share awards totaled $2,115 and $1,486 for the nine months ended June 30, 2012 and 2011, respectively. The total income tax benefit recognized in the unaudited consolidated statements of income related to stock-based compensation was $783 and $556 during the first nine months of fiscal 2012 and 2011, respectively.

Restricted Share Awards

Restricted share transactions during the nine months ended June 30, 2012 were as follows:

	Number of Restricted Share Awards (in thousands)	Weighted- Average Fair Value
Outstanding at October 1, 2011	86	$	61.61
Granted	75		51.57
Vested	(12)		60.84
Forfeited	(6)		55.82
Outstanding at June 30, 2012	143	$	56.66

The per share weighted average fair value of restricted shares, including restricted stock and performance shares, granted during the nine months ended June 30, 2012 and 2011 was $51.57 and $63.39, respectively. As of June 30, 2012, unrecognized compensation expense related to restricted share awards totaled $4,962 and is expected to be recognized over a weighted average period of 1.38 years. The total fair value of shares vested during the nine months ended June 30, 2012 and 2011 was $709 and $409, respectively.

Stock Options

A summary of stock option activity during the nine months ended June 30, 2012 is presented below:

	Number of Options (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at October 1, 2011	90	$	45.23
Exercised	(3)		43.35
Outstanding at June 30, 2012	87		45.29	2.5	$	1,048
Exercisable at June 30, 2012	87	$	45.29	2.5	$	1,048

The Company has not granted stock options subsequent to fiscal 2005. As of June 30, 2012, all outstanding stock options were vested and compensation expense related to stock options was recognized in prior fiscal years. The intrinsic value of options exercised totaled $34 and $59 during the first nine months of fiscal 2012 and 2011, respectively. The total income tax benefit recognized in the unaudited consolidated statements of income related to the exercise of stock options was $13 and $22 during the nine months ended June 30, 2012 and 2011, respectively.

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(12)      Employee Benefit Plans

The components of net periodic benefit cost for pension and retiree medical plans were as follows:

	Pension Benefits				Other Benefits
	Three Months Ended June 30,
	2012		2011		2012		2011
Service cost	$	0	$	0	$	15	$	13
Interest Cost		360		363		13		14
Expected return on plan assets		(328)		(345)		0		0
Amortization of prior service credit		0		0		0		(27)
Amortization of net loss		79		26		0		0
Net periodic benefit cost	$	111	$	44	$	28	$	0

	Pension Benefits				Other Benefits
	Nine Months Ended June 30,
	2012		2011		2012		2011
Service cost	$	0	$	0	$	44	$	39
Interest Cost		1,080		1,090		40		42
Expected return on plan assets		(984)		(1,035)		0		0
Amortization of prior service credit		0		0		0		(83)
Amortization of net loss		236		78		0		0
Net periodic benefit cost (credit)	$	332	$	133	$	84	$	(2)

The Company is required for the 2012 plan year, under IRS minimum funding standards, to make a contribution of $356 to its defined benefit pension plan by June 15, 2013.

The Company maintains a 401(k) Retirement Savings Plan for certain employees, which provides for employer matching contributions, and a supplemental defined contribution plan for certain executives, which provides for employer contributions at the discretion of the Company. Amounts expensed for Company contributions under these plans during the first nine months of fiscal 2012 and 2011 were $990 and $875, respectively.

(13)      Segment Information

In connection with the acquisition of IZI during the first quarter of fiscal 2012, the Company began to operate in three reportable segments, Radiation Measurement (formerly Monitoring), Medical Physics and Medical Products. The factors for determining the reportable segments reflect specific markets and the products and services offered combined with the nature of the individual business traits, as well as key financial information reviewed by management. During the third quarter of fiscal 2012, management determined that Radiation Measurement was a more accurate description for Landauer’s expanded portfolio of activities that focus on assessing radiation dose through radiation measurement and monitoring services and the provision of instrumentation for use by medical, research, military and nuclear fuel cycle markets. The Radiation Measurement segment comprises the metrological activities of the business.

The Radiation Measurement segment provides analytical services to determine occupational and environmental radiation exposure. These services are provided primarily to hospitals, medical and dental offices, universities, national laboratories, and nuclear facilities. Radiation Measurement activities also include the manufacture of various types of radiation detection monitors, the distribution and collection of the monitors to and from customers, and the analysis and reporting of exposure findings. In addition to providing analytical services, the Radiation Measurement segment leases or sells dosimetry detectors and reading equipment.

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The Medical Physics segment provides therapeutic and imaging physics services to domestic hospitals, free standing imaging centers and radiation therapy centers. Service offerings include clinical physics support, equipment commissioning, accreditation support and imaging equipment testing. These professional services are provided to customers on-site by skilled physicists.

The Medical Products segment provides medical consumable accessories used in radiology, radiation therapy, and image guided surgery procedures. Medical products range from consumables used with MRI, CT, and mammography technologies to highly engineered passive reflective markers used during image guided surgery procedures. Medical Products sales are provided through the Company’s IZI subsidiary.

The Company primarily evaluates performance of the individual segments based upon, among other metrics, segment operating income or loss. Segment operating income or loss is segment revenues less segment cost of sales and segment selling, general and administrative expenses. Corporate expenses for shared functions, including corporate management, corporate finance and human resources, are recognized in the Radiation Measurement segment where they have been reported historically. In addition, acquisition and reorganization costs are not allocated to the segments. Information about net other income, including interest income and expense, and income taxes is not provided at the segment level. As the Company’s business model evolves in increased complexity, management may determine it necessary to change this reporting practice to reflect any appropriate allocations.

The following tables summarize financial information for each reportable segment:

	Three Months Ended June 30, 2012
	Radiation Measurement		Medical Physics		Medical Products		Consolidated
Revenues	$	26,926	$	8,064	$	4,215	$	39,205
Operating income		6,813		517		1,919		9,249
Depreciation and amortization		1,803		395		524		2,722
Capital expenditures for property, plant & equipment		3,949		137		32		4,118

	Three Months Ended June 30, 2011
	Radiation Measurement		Medical Physics		Medical Products		Consolidated
Revenues	$	23,860	$	5,298	$	0	$	29,158
Operating income		7,790		42		0		7,832
Depreciation and amortization		1,905		241		0		2,146
Capital expenditures for property, plant & equipment		3,786		188		0		3,974

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	Nine Months Ended June 30, 2012
	Radiation Measurement		Medical Physics		Medical Products		Consolidated
Revenues	$	81,328	$	23,186	$	10,454	$	114,968
Operating income		21,132		1,519		4,300		26,951
Depreciation and amortization		5,415		1,029		1,308		7,752
Capital expenditures for property, plant & equipment		10,986		449		41		11,476

	Nine Months Ended June 30, 2011
	Radiation Measurement		Medical Physics		Medical Products		Consolidated
Revenues	$	75,291	$	14,632	$	0	$	89,923
Operating income (loss)		28,449		(610)		0		27,839
Depreciation and amortization		5,077		673		0		5,750
Capital expenditures for property, plant & equipment		9,152		475		0		9,627

	June 30, 2012		September 30, 2011
Segment Assets:
Radiation Measurement	$	153,493	$	136,950
Medical Physics		37,571		31,706
Medical Products		95,184		0
Consolidated Assets	$	286,248	$	168,656

(14)      Recently Issued Accounting Pronouncements

During the first nine months of fiscal 2012, there were no new accounting pronouncements issued that would have a material impact on the Company’s consolidated financial statements.

(15)      Recently Adopted Accounting Pronouncements

In September 2011, the FASB issued amendments to its goodwill impairment guidance. The amendments provide an option for entities to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity would not be required to calculate the fair value of a reporting unit unless it determines, based on the qualitative assessment, that it is more likely than not that the reporting unit’s fair value is less than its carrying amount. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The Company elected to adopt the amendments in connection with the performance of its annual goodwill impairment test as of September 30, 2011.

In May 2011, the FASB issued guidance amending existing guidance for measuring and disclosing fair value. The new guidance enhances the disclosure requirements primarily for Level 3 fair value measurements. The Company's adoption of the amended guidance at the end of the second quarter of fiscal 2012 did not have a significant impact on the fair value measurements included in the Company's financial statements as of June 30, 2012.

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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Landauer is a leading global provider of technical and analytical services to determine occupational and environmental radiation exposure and is the leading domestic provider of outsourced medical physics services. For over 50 years, the Company has provided complete radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities and other industries in which radiation poses a potential threat to employees. Landauer’s services include the manufacture of various types of radiation detection monitors, the distribution and collection of the monitors to and from customers, and the analysis and reporting of exposure findings. These services are provided to approximately 1.7 million individuals globally. In addition to providing analytical services, the Company may lease or sell dosimetry detectors and reading equipment to large customers that want to manage their own dosimetry programs, or into smaller international markets in which it is not economical to establish a direct service.

Landauer’s radiation measurement business is a mature business and growth in numbers of customers is modest. In recent years, the Company’s strategy has been to expand into new international markets, primarily by partnering with existing dosimetry service providers with a prominent local presence. In addition, the Company has been developing new platforms and formats for its OSL technology, such as InLight® and RadLight®, to gain access to markets where the Company previously did not have a significant presence, such as smaller in-house and commercial laboratories, nuclear power facilities, tactical military measurement and monitoring, and hospitals to support measurement and monitoring of patient exposure to radiation. Revenue growth in recent years has occurred as a result of entry into new markets through joint ventures and acquisitions, modest unit growth, sales of InLight equipment and badges, and new ancillary services and products. The Company believes pricing in the domestic market has become more competitive and opportunities to obtain regular price increases from its customers will be more limited in the future. The improving, but still challenging economic climate and uncertain impact of healthcare reform has resulted in increased pricing pressure with the Company's healthcare customer base, which is expected to continue into the future.

Through its Global Physics Solutions, Inc. (“GPS”) subsidiary, the Company provides therapeutic and imaging physics services to the medical community. GPS is the leading nationwide provider of medical physics services to hospitals, free standing imaging centers and radiation therapy centers. Medical physics services is a large fragmented market. Since its acquisition of GPS, the Company has continued to acquire smaller regional medical physics practices. Market growth is expected to be driven by: the utilization of radiation in the provision of healthcare; trends towards outsourcing of services in healthcare settings; and a tightening domestic supply of qualified medical physicists. The Company reports these operating results in the Medical Physics reporting segment.

In November 2011, Landauer completed the acquisition of IZI Medical Products, LLC (“IZI”), a leading provider, internationally and domestically, of high quality medical consumable accessories used in radiology, radiation therapy, and image guided surgery procedures. IZI’s customer base includes buyers at several stages along the supply chain including distributors, manufacturers of image guided navigation equipment, and product end users such as hospitals, radiation oncology clinics, mammography clinics, and imaging centers. In alignment with treatment trends which increasingly utilize radiation for the diagnosis and treatment of disease, as well as growing demand for minimally invasive procedures, IZI products provide the ability to increase procedural accuracy while decreasing procedural time. The Company reports these operating results in the Medical Products reporting segment.

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Results of Operations

In connection with the acquisition of IZI during the first quarter of fiscal 2012, the Company began to operate in three reportable segments, Radiation Measurement, Medical Physics and Medical Products. Additional information on the Company’s reportable segments is contained under the footnote “Segment Information” herein.

Comparison of the Three Months Ended June 30, 2012 and June 30, 2011

Revenues for the third fiscal quarter of 2012 were $39.2 million, an increase of $10.0 million, or 34.5%, compared with revenues of $29.2 million for the same quarter in fiscal 2011. The Medical Physics segment contributed an increase of $2.8 million and the new Medical Products segment increased revenues by $4.2 million. The Radiation Measurement segment experienced an increase of $3.1 million. Consolidated revenue in the quarter was negatively affected $1.1 million by currency fluctuation, as compared with the prior year period, principally due to weakness in the Euro against the U.S. dollar.

Cost of sales for the third fiscal quarter of 2012 was $17.4 million, an increase of $5.3 million, or 43.7%, compared with cost of sales of $12.1 million for the same quarter in fiscal 2011. The cost of sales increase was largely due to $2.7 million associated with acquired companies purchased subsequent to the prior year’s comparable quarter, $1.0 million related to increased volume internationally and another $1.0 million due to the mix of lower margin equipment sales, including sales of readers and service badges to the military and first responder markets as well as to Nagase-Landauer for the Japan Defense Force, and in support of increased dosimetry services, including measurement of Fukushima area citizens. Gross margins were 55.7% for the third fiscal quarter of 2012, compared with 58.6% for the third fiscal quarter of 2011. The decrease in the gross margin rate was primarily due to an increase in Medical Physics segment revenues, which has lower margins compared to the Radiation Measurement and Medical Products segments, along with the Radiation Measurement segment increase of lower margin equipment sales, inclusive of sales to the military and emergency response markets, in the third fiscal quarter of 2012, as compared to the prior year period.

Total operating expenses for the third fiscal quarter of 2012 were $12.6 million, an increase of $3.4 million, or 36.2%, compared with operating expenses of $9.2 million for the same quarter in fiscal 2011. The operating expenses increase was due to $1.5 million associated with acquired companies purchased subsequent to the prior year’s comparable quarter, $0.4 million due to timing of the recording of incentive compensation expenses associated with improved operating performance in fiscal 2012 versus fiscal 2011, $0.2 million for investment in research and development in support of military and first responder initiatives, $0.2 million for investment in customer facing organizations, and $0.3 million for expenses related to the company’s IT systems initiative. For the third fiscal quarter of 2012, total operating expenses before $0.3 million of non-recurring acquisition expenses, $0.6 million of IT platform enhancement related expenses, and $0.7 million of non-cash stock based compensation expenses were $11.0 million or 28.1% of total revenues. This compares with the $8.4 million, or 28.9% of total revenues, reported for the third fiscal quarter of 2011, before $0.3 million of IT platform enhancement related expenses and $0.5 million of non-cash stock based compensation expenses.

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Operating income for the third fiscal quarter of 2012 was $9.2 million, an increase of $1.4 million, or 18.1%, compared with operating income of $7.8 million for the same quarter in fiscal 2011. The increase in operating income was primarily driven by an increase of $0.5 million in the Medical Physics segment and the addition of the Medical Products segment which contributed $1.9 million in operating income, partially offset by a decline of $1.0 million in the Radiation Measurement segment due principally to an increased mix of lower margin sales and higher operating expenses. Operating income, adjusted for non-recurring acquisition expenses, IT platform enhancement related expenses, and non-cash stock based compensation expenses, for the third fiscal quarter of 2012 was $10.8 million, a 25.1% increase compared with adjusted operating income on a relative basis of $8.7 million for the third fiscal quarter of 2011.

Net other expense for the third fiscal quarter of 2012 was $0.5 million, a decrease of $1.0 million, compared with net other income of $0.5 million from the prior year quarter. An increase of $0.1 million in the equity in income of joint ventures was offset by a $1.1 million increase in interest expense associated with borrowings to acquire IZI in the first fiscal quarter of 2012.

The effective tax rate was 23.0% and 31.9% for the third fiscal quarters of 2012 and 2011, respectively. The decline in the effective tax rate was due primarily to additional U.S. foreign tax credits and research and development credits for fiscal 2011 realized during the third fiscal quarter of 2012 as a result of filing the U.S. Federal, state and local income tax returns.

Net income for the third fiscal quarter ended June 30, 2012 was $6.6 million, or $0.69 per diluted share. This represents an increase of $1.1 million, or 18.6%, compared with $5.5 million, or $0.59 per diluted share, for the third fiscal quarter of 2011. Excluding the costs associated with the acquisitions, IT platform enhancement, and non-cash stock based compensation, net income was $7.8 million, as compared to $6.1 million in the prior year period. The resulting diluted earnings per share for the third fiscal quarter of 2012 were $0.83, excluding $0.14 per diluted share of acquisition, IT platform enhancement, and non-cash stock based compensation expenses. This compares with $0.65, excluding $0.06 per diluted share of acquisition, IT platform enhancement, and non-cash stock based compensation expenses, for the third fiscal quarter of 2011.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) were $12.3 million, a 19.2% increase compared with $10.3 million in the comparable prior year period. The increase was due primarily to the addition of the Medical Products segment. Adjusted earnings before interest, taxes, depreciation and amortization, acquisition related expenses, IT platform enhancement expenses, and non-cash stock based compensation expenses (“Adjusted EBITDA”) were $13.9 million, a 24.6% increase compared to the prior year period Adjusted EBITDA of $11.2 million. A reconciliation of net income to EBITDA and Adjusted EBITDA is included herein under this Item 2.

The following is a discussion of the Company’s segment operating results.

Radiation Measurement Segment

Radiation Measurement revenues for the third fiscal quarter of 2012 increased 12.9%, or $3.1 million, from the third fiscal quarter of 2011 to $26.9 million. Of the increase, $2.4 million was related to the impact of higher equipment sales, primarily from the Company’s ongoing initiatives with the military and first responder markets. International Radiation Measurement revenues increased $1.6 million, from the comparable prior year period, driven primarily by organic growth in most regions, including both equipment sales and service revenues, partially offset by $1.1 million of foreign currency translation losses.

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Radiation Measurement operating income for the third fiscal quarter of 2012 decreased to $6.8 million, a 12.5% decrease from $7.8 million in the comparable prior year period. The decrease in operating income was primarily impacted by an increase in lower margin equipment sales, both domestically and internationally, including Radwatch System sales to the military, and higher selling, general and administrative expenses. Selling, general and administrative costs for the third fiscal quarter of 2012 increased 21.4%, or $1.7 million, from the comparable prior year period, to $9.7 million. The increase was due primarily to a $0.5 million increase in compensation costs, consistent with operating performance expectations and timing of short-term and long-term incentive plans, a $0.3 million increase due to the Company’s IT systems initiative, $0.3 million of increased spending to support international revenue growth, a $0.3 million increase in acquisition related expenses, $0.2 million of increased professional fees, a $0.2 million increase in research and development activities in connection with military and first responder initiatives, and a $0.2 million increase from investment in the Company’s customer facing organizations. Radiation Measurement operating income for the third fiscal quarter of 2012 was negatively affected $0.3 million, as compared with the prior year period, by currency fluctuation, principally due to weakness in the Euro and the Real against the U.S. dollar.

Radiation Measurement operating income, adjusted for the impact of acquisition related transaction expenses, IT platform enhancement expenses, and non-cash stock based compensation expenses, for the third fiscal quarter of 2012 decreased 2.5%, or $0.2 million, to $8.4 million compared with adjusted operating income of $8.6 million for the third quarter of fiscal 2011.

Corporate expenses for shared functions are recognized in the Radiation Measurement segment where they have been reported historically. Acquisition and reorganization costs are not allocated to the segments. As the Company’s business model evolves in increased complexity, management may determine it necessary to change this reporting practice to reflect any appropriate allocations.

Medical Physics Segment

Medical Physics revenues for the third fiscal quarter of 2012 increased 52.2%, or $2.8 million, from the comparable period in fiscal 2011 to $8.1 million on $0.6 million of organic growth and $2.2 million due to the contribution of acquired companies. The Medical Physics segment operating income was $0.5 million, or 6.4% of revenues, as compared to breakeven operating income in the third fiscal quarter of 2011. The improvement in operating income was primarily due to operating efficiencies in the organic Medical Physics business and higher episodic equipment commissioning sales leveraging a relatively fixed cost structure, as well as higher volume sales inclusive of acquired companies.

Medical Products Segment

With the acquisition of IZI on November 14, 2011, the Company now operates in a third reportable segment. The Medical Products segment provides medical consumable accessories used in radiology, radiation therapy, and image guided surgery procedures. Medical products range from consumables used with MRI, CT, and mammography technologies to highly engineered passive reflective markers used during image guided surgery procedures. Medical Products revenues for the third fiscal quarter of 2012 were $4.2 million. Medical Products operating income was $1.9 million or 45.5% of revenues for the third fiscal quarter of 2012. Given the acquisition of IZI was completed during the first quarter of fiscal 2012, there is no direct comparison to the prior year quarter.

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Comparison of the Nine Months Ended June 30, 2012 and June 30, 2011

Revenues for the first nine months of fiscal 2012 were $115.0 million, an increase of $25.1 million, or 27.9%, compared with revenues of $89.9 million for the same period in fiscal 2011. The Medical Physics segment and the Radiation Measurement segment contributed an increase of $8.6 million and $6.0 million, respectively. The contribution of the new Medical Products segment increased revenues by $10.5 million. Consolidated revenue for the nine month period ended June 30, 2012 was negatively affected $1.4 million by currency fluctuation, as compared with the prior year period, principally due to weakness in the Euro against the U.S. dollar.

Cost of sales for the first nine months of fiscal 2012 was $48.3 million, an increase of $13.5 million, or 38.9%, compared with cost of sales of $34.8 million for the same period in fiscal 2011. The increase in cost of sales was primarily driven by $7.5 million associated with acquired companies purchased subsequent to the prior year’s comparable period, $2.0 million in cost of sales associated with sales from the Company’s ongoing military and first responder initiatives, and the impact of the mix of lower margin equipment sales within Radiation Measurement. Gross margins were 58.0% for the first nine months of fiscal 2012, compared with 61.3% for the first nine months of fiscal 2011. The decrease in the gross margin rate was primarily due to a shift in the mix of cost of sales resulting from the overall growth of the Medical Physics segment, which has lower margins compared to the Radiation Measurement and Medical Products segments, along with lower margin equipment sales, including Radwatch System sales to the military and First Responder markets, in the Radiation Measurement segment.

Total operating expenses for the first nine months of fiscal 2012 were $39.7 million, an increase of $12.4 million, or 45.4%, compared with operating expenses of $27.3 million for the same period in fiscal 2011. The operating expenses increase was due to $4.4 million associated with acquired companies purchased subsequent to the prior year’s comparable period, $2.0 million due to performance against incentive compensation plans as well as timing of the recording of incentive compensation expenses associated with improved operating performance in fiscal 2012 versus fiscal 2011, $1.1 million for investment in research and development in support of military and first responder initiatives, investment in customer facing organizations, $0.8 million for expenses supporting international growth, and $0.5 million in expenses related to the Company’s IT systems initiative. For the first nine months of fiscal 2012, total operating expenses before $2.5 million of non-recurring acquisition expenses, $1.2 million of IT platform enhancement related expenses, and $2.1 million of non-cash stock based compensation expenses were $33.9 million, or 29.5% of total revenues. This compares with the $24.7 million, or 27.5% of total revenues, reported for the first nine months of fiscal 2011, before $0.2 million of non-recurring acquisition expenses, $0.9 million of IT platform enhancement related expenses, and $1.5 million of non-cash stock based compensation expenses.

Operating income for the first nine months of fiscal 2012 was $27.0 million, a decrease of $0.8 million, or 3.2%, compared with operating income of $27.8 million for the same period in fiscal 2011. The decrease in operating income was primarily driven by a $2.3 million increase in acquisition costs incurred in the first fiscal quarter of 2012, which primarily related to the acquisition of IZI. An additional decline of $5.0 million in Radiation Measurement operating income, due primarily to the higher operating expenses, was partially offset by an increase in operating income of $2.1 million in the Medical Physics segment and the addition of the Medical Products segment which contributed $4.3 million in operating income. Operating income, adjusted for non-recurring acquisition expenses, IT platform enhancement related expenses, and non-cash stock based compensation expenses, for the first nine months of fiscal 2012 was $32.7 million, a 7.5% increase compared with operating income, adjusted for these items on a relative basis, of $30.5 million for the first nine months of fiscal 2011.

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Equity in income of joint ventures for the first nine months of fiscal 2012 was $2.6 million, an increase of $0.9 million, or 50.2%, from the comparable prior year period. Other expense, including interest expense, for the first nine months of fiscal 2012 was $2.6 million, an increase of $2.5 million from the comparable prior year period, due to interest expense associated with borrowings to acquire IZI in the first fiscal quarter of 2012.

The effective tax rate was 29.2% and 32.9% for the first nine months of fiscal 2012 and 2011, respectively. The decline in the effective tax rate was due primarily to cumulative prior year credits in a foreign tax jurisdiction that were approved during the first half of the current fiscal year and additional U.S. foreign tax credits and research and development credits for fiscal 2011 realized during the third quarter of fiscal 2012 as a result of filing the U.S. Federal, state and local income tax returns.

Net income for the first nine months of fiscal 2012 was $18.6 million, a decrease of $0.8 million, or 3.9%, compared with $19.4 million for the same period in fiscal 2011. Excluding the costs associated with the acquisitions, IT platform enhancement, and non-cash stock based compensation, net income was $22.7 million, as compared to $21.1 million in the comparable prior year period. The resulting adjusted diluted earnings per share for the nine month period ended June 30, 2012 were $2.42 per share, excluding $0.45 per diluted share of acquisition, IT platform enhancement, and non-cash stock based compensation expenses. This compares with $2.25 per share, excluding $0.20 per diluted share of acquisition, IT platform enhancement, and non-cash stock based compensation expenses, for the nine month period ended June 30, 2011.

EBITDA for the first nine months of fiscal 2012 was $36.5 million, a 5.0% increase compared with $34.8 million in the comparable prior year period. The increase was due primarily to the addition of the Medical Products segment. Adjusted EBITDA for the first nine months of fiscal 2012 was $42.3 million, a 13.1% increase compared with $37.4 million in the comparable prior year period. Adjusted Free Cash Flow (Adjusted EBITDA, plus or minus changes in working capital, less capital expenditures) for the first nine months of fiscal 2012 was $34.8 million, a 12.4% increase over the comparable prior year period of $31.0 million, due principally to improved working capital partially offset by increased capital expenditures. A reconciliation of net income to EBITDA, Adjusted EBITDA, and Adjusted Free Cash Flow is included herein under this Item 2.

The following is a discussion of the Company’s segment operating results.

Radiation Measurement Segment

Radiation Measurement revenues for the first nine months of fiscal 2012 increased 8.0%, or $6.0 million, from the first nine months of fiscal 2011 to $81.3 million. Of the increase, $4.0 million was related to the impact of higher equipment sales from the Company’s ongoing initiatives with the military market. International Radiation Measurement revenues increased $2.8 million, or 12.4%, from the comparable prior year period, driven primarily by organic growth in most regions, including both equipment sales and service revenues, partially offset by $1.4 million of foreign exchange losses.

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Radiation Measurement operating income for the first nine months of fiscal 2012 decreased to $21.1 million, a 25.7% decrease from $28.4 million in the comparable prior year period, impacted by the increase and mix in lower margin equipment sales both domestically and internationally, including Radwatch System sales to the military, and higher selling, general and administrative expenses. Selling, general and administrative costs for the first nine months of fiscal 2012 increased 33.3%, or $7.8 million, to $31.1 million. The increase was due primarily to a $2.3 million increase in acquisition related expenses, primarily related to IZI, a $2.0 million increase in compensation costs, consistent with operating performance expectations and timing of short-term and long-term incentive plans, a $1.1 million increase in research and development activities in connection with the military and first responder initiatives, $0.8 million of increased spending to support international revenue growth, a $0.5 million investment in customer facing organizations, a $0.3 million increase in employee benefit plans and medical expenses, $0.5 million of increased professional fees, and a $0.3 million increase due to the Company’s IT systems initiative. Radiation Measurement operating income for the first nine months of fiscal 2012 was negatively affected $0.4 million, as compared with the prior year period, by currency fluctuation, principally due to weakness in the Euro and the Real against the U.S. dollar.

Radiation Measurement operating income, adjusted for the impact of acquisition related transaction expenses, IT platform enhancement expenses, and non-cash stock based compensation expenses, for the first nine months of fiscal 2012 decreased 13.4%, or $4.2 million, to $26.9 million compared with adjusted operating income of $31.1 million for the comparable period in fiscal 2011.

Corporate expenses for shared functions are recognized in the Radiation Measurement segment where they have been reported historically. Acquisition and reorganization costs are not allocated to the segments. As the Company’s business model evolves in increased complexity, management may determine it necessary to change this reporting practice to reflect any appropriate allocations.

Medical Physics Segment

Medical Physics revenues for the first nine months of fiscal 2012 increased 58.5%, or $8.6 million, from the comparable period in fiscal 2011 to $23.2 million on $2.1 million of organic growth and $6.5 million due to the impact of acquired companies. The Medical Physics segment operating income of $1.5 million, or 6.6% of revenues, increased $2.1 million as compared to a loss of $0.6 million, or 4.2% of revenues, in the first nine months of fiscal 2011. The improvement in operating income was primarily due to operating efficiencies in the core Medical Physics business and higher episodic equipment commissioning sales leveraging a relatively fixed cost structure, as well as higher volume sales inclusive of acquired companies.

Medical Products Segment

With the acquisition of IZI on November 14, 2011, the Company now operates in a third reportable segment, Medical Products. Revenues for the period from the date of acquisition through June 30, 2012 were $10.5 million. Medical Products operating income was $4.3 million or 41.1% of revenues for the same period. Given the acquisition of IZI was completed during the first quarter of fiscal 2012, there is no direct comparison to the prior year nine month period.

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Liquidity and Capital Resources

Cash and cash equivalents increased $11.3 million to $19.2 million during the first nine months of fiscal 2012. The increase in cash on hand was consistent with a change in working capital management associated with the Company’s existing credit agreement which does not have a daily cash sweep feature against borrowings, resulting in an increase in cash on hand to meet operational needs. The Company’s primary sources of liquidity are cash flows from operations and funds available under its syndicated credit facility. The Company’s prior facility (“old credit agreement”) was terminated in November 2011, when it was replaced by the new syndicated facility. No early termination penalties were incurred by Landauer in connection with the termination of the old credit agreement.

Cash provided by operating activities for the nine months ended June 30, 2012 was $30.5 million, an 8.1% increase compared to $28.2 million for the first nine months of fiscal 2011. The increase in operating cash flow was driven by a reduction in inventory and prepaid expenses and an increase in deferred income in fiscal 2012.

Adjusted Free Cash Flow provided by operating activities for the nine months ended June 30, 2012 was $34.8 million, an increase of $3.8 million from the fiscal first half of 2011. The increase benefited from a tax refund during the first half of fiscal 2012, which was partially offset by an increase in capital expenditures.

Cash used by investing activities for the first nine months of fiscal 2012 included $98.3 million used for the Company’s acquisitions of joint ventures and businesses, primarily IZI, as described under the footnote “Business Combinations” herein, compared to $1.8 million used in the first nine months of fiscal 2011 for the establishment of an unconsolidated joint venture in Turkey and the acquisition of two diagnostics physics practices. Investing activities included the Company’s acquisitions of property, plant and equipment of $11.5 million and $9.6 million during the first nine months of fiscal 2012 and 2011, respectively.

Included in the acquisitions of property, plant and equipment were costs of $8.3 million and $7.2 million for the nine months ended June 30, 2012 and 2011, respectively, for the Company’s IT platform enhancement initiative. The project consists of three phases, of which two phases were implemented in fiscal 2011. The total project cost, including non-capitalized costs, is estimated currently to be approximately $55 million to $57 million, of which $43.0 million was incurred as of the end of fiscal 2011. Once fully operational, the new IT platform will require ongoing maintenance expenditures at levels higher than the Company has traditionally experienced. Total capital expenditures for fiscal 2012 are expected to be approximately $12 million to $13 million, including approximately $8 million to $9 million for the Company’s IT platform initiative.

Financing activities for the nine months ended June 30, 2012 were comprised primarily of long-term borrowings on the new credit agreement, net borrowings on the Company’s old credit agreement and payments of cash dividends to shareholders. During the first nine months of fiscal 2012, the Company funded cash dividends of $15.6 million, or $0.55 per share, for the first and second quarters of fiscal 2012 and the fourth quarter of fiscal 2011. During the first nine months of fiscal 2011, the Company funded cash dividends of $15.4 million, or $0.55 per share, for the first and second quarters of fiscal 2011 and $0.5375 per share for the fourth quarter of fiscal 2010.

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In fiscal 2010, the Company borrowed $18.0 million under its old credit agreement, originally dated October 5, 2007. As of September 30, 2011, all borrowings were classified as a current liability as the old credit agreement contained a subjective acceleration clause as well as a Company elected arrangement which provided for automatic draws or pay downs on the credit agreement on a daily basis after taking into account operating cash needs. As of September 30, 2011, the Company had borrowings of $19.8 million outstanding under the old credit agreement. In connection with its acquisition of IZI in November 2011, the Company terminated the old credit agreement.

On November 14, 2011, Landauer entered into a five-year syndicated revolving credit agreement with a group of lenders, pursuant to which, the Company was provided a senior secured reducing revolving credit facility (“new credit agreement”). The Company borrowed $132.9 million under the new credit agreement to finance the IZI acquisition, to refinance existing indebtedness under the old credit agreement and to fund certain fees and expenses associated with the closing of the new credit facility. The new credit agreement matures on November 14, 2016, and is be secured by a first-priority perfected security interest in substantially all of the tangible and intangible assets of Landauer and its existing and future material domestic subsidiaries, including a pledge of 100% of the stock of each domestic subsidiary and a pledge of 66% of the stock of each first-tier foreign subsidiary.

Borrowings under the new credit agreement bear interest, at Landauer’s option, at a rate equal to either (a) the rate per annum for deposits in U.S. Dollars as reflected on the Reuters Screen LIBOR01 as of 11:00 a.m. (London, England time) for the interest period relevant to such borrowing (adjusted for any statutory reserve requirements for Eurocurrency liabilities) plus the applicable margin (the “LIBO Rate”) or (b) the greatest of (i) the federal funds rate for the borrowing day plus 0.5%, (ii) the prime rate in effect on the borrowing day and (iii) the LIBO Rate for deposits in dollars for a one month interest period on the borrowing day plus 1.0%, plus the applicable margin. Loans under the credit facility may be prepaid at any time without penalty, subject to, in the case of loans bearing interest on the LIBO Rate, payment of customary breakage costs for prepayments made prior to the last day of the applicable interest period. At June 30, 2012 the applicable interest rate for the base and LIBOR rate separately was 5.0% and 2.991% per annum, respectively.

Borrowings under the new credit agreement are classified as long-term debt. As of June 30, 2012, the Company repaid $5.3 million of the borrowings under the new credit facility. Based on current business plans and projected operating cash flows, the Company anticipates repayments of borrowings under the new credit agreement within the next twelve months and continued usage of the revolving facility beyond the next twelve months.

The new credit agreement includes limitations on indebtedness, liens, investments and acquisitions, loans and advances, mergers and consolidations, sales of assets, and dividends, stock repurchases and other restricted payments. In addition, the new credit agreement requires that Landauer maintain a minimum net worth at all times of $65 million, maintain a maximum leverage ratio ranging between 3.00 to 1.00 and 2.50 to 1.00 as applicable for each fiscal quarter and maintain a minimum fixed charge coverage ratio ranging between 1.15 to 1.00 and 1.35 to 1.00 as applicable for each fiscal quarter. The new credit agreement also includes customary events of default, including but not limited to failure to pay any principal when due or any interest, fees or other amounts within three business days when due, default under any covenant or any agreement in any loan document, cross-default with other debt agreements, bankruptcy and change of control. As of June 30, 2012, the Company was in compliance with the covenants contained in the credit agreement.

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Landauer requires limited working capital for its operations as many of its Radiation Measurement customers pay for services in advance. Such advance payments, reflected on the balance sheet as “Deferred Contract Revenues,” amounted to $16.7 million and $14.7 million, respectively, as of June 30, 2012 and September 30, 2011. While these amounts represent approximately 39.1% and 25.4% of current liabilities as of June 30, 2012 and September 30, 2011, respectively, such amounts do not represent a cash obligation.

Landauer offers radiation measurement services in Australia, Brazil, Canada, China, France, Japan, Mexico, Sweden, Turkey and the United Kingdom. The Company’s operations in these markets generally do not depend on significant capital resources. The Company has sufficient cash and cash equivalents available for use in the United States to fund current operations without drawing on the permanently reinvested funds held by its foreign operations.

The Company is exposed to market risk, including changes in foreign currency exchange rates. The financial statements of the Company’s non-U.S. subsidiaries are translated into U.S. dollars using the U.S. dollar as the reporting currency. The market risk associated with foreign currency exchange rates has historically been immaterial in relation to the Company’s financial position, results of operations, and cash flows.

In the opinion of management, cash flows from operations and the Company’s borrowing capacity under its new credit agreement are adequate for projected operations and capital spending programs, as well as the continuation of the regular cash dividend program. From time to time, the Company may have the opportunity to make investments for acquisitions or other purposes, and borrowings are permitted under the new credit agreement to fund such investments.

Fiscal 2012 Outlook

Landauer’s business plan for fiscal 2012 currently anticipates aggregate revenues for the year to be in the range of $150 to $157 million, which includes 10 months of contributions from the recent IZI acquisition. The business plan also anticipates:

▪ $3.8 million ($2.5 million net of tax) of non-recurring expense spending to support the successful completion of the Company’s IT Platform systems initiative and the related post implementation support.

▪ Incremental depreciation and amortization over fiscal 2011 of $1.0 million ($0.7 million net of tax) related to the deployment of the final phase of the Company’s IT systems initiative in the fourth quarter of fiscal 2012.

▪ The accretive impact of the November 2011 acquisition of IZI is anticipated to produce $1.1 million to $1.5 million of net income for the 10 months included in fiscal 2012.

▪ The blended effective tax rate for the full fiscal year is anticipated to be within a range of 31 percent to 33 percent.

Based upon the above assumptions, the Company anticipates reported net income for fiscal 2012 in the range of $21 to $23 million and Adjusted EBITDA expected for fiscal 2012 in the range of $53 to $57 million. In addition, the Company will begin to receive an annual cash tax benefit of approximately $2 million as a result of the structure of the acquisition of IZI.

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In July 2012, the enhanced IT platform became operational. Although the Company has been encouraged by its experience with the enhanced platform during the first few weeks of the platform’s start-up phase, there can be no assurance that, during the remainder of this start-up phase, the new platform will continue to maintain its functionality at the levels anticipated or otherwise meet the Company’s business and operational objectives. If unforeseen problems arise, the Company’s operations could be adversely impacted, including the ability of the Company to perform one or more of the following in a timely manner: customer quotes, customer orders, product shipment, customer services and support, order billing and tracking, contractual obligations fulfillment and related operations.

As previously disclosed, the Company expects to incur ongoing maintenance expenditures for the new IT platform at levels higher than the Company traditionally experienced under its prior platform. Unforeseen problems with the new platform could further increase such expenditures.

Use of Non-Generally Accepted Accounting Principles (“GAAP”) Financial Measures

In evaluating the Company’s financial performance and outlook, management uses EBITDA, Adjusted EBITDA and Adjusted Free Cash Flow. These are non-GAAP measures. Management believes that such measures supplement evaluations using operating income, net income, and diluted earnings per share and other GAAP measures, and are a useful indicator for investors. These indicators can help readers gain a meaningful understanding of the Company’s core operating results and future prospects without the effect of non-recurring and non-cash items and the Company’s ability to generate cash flows from operations that are available for taxes, capital expenditures, and debt repayment. Investors should recognize that these non-GAAP measures might not be comparable to similarly titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance, cash flows or liquidity prepared in accordance with accounting principles generally accepted in the United States. The following tables reconcile non-GAAP measures to those measures prepared in accordance with accounting principles generally accepted in the United States.

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Reconciliation of Net Income to Adjusted Earnings before Interest, Taxes, Depreciation and Amortization

	Three Months Ended June 30,
	2012		2011
Net income attributed to Landauer, Inc.	$	6,566	$	5,536
Add back:
Interest expense, net		1,020		(10)
Income taxes		2,014		2,667
Depreciation and amortization		2,722		2,146
Earnings before interest, taxes, depreciation and amortization (EBITDA)	$	12,322	$	10,339
Adjustments:
Non-cash stock-based compensation expense		661		541
IT platform enhancements expenses		585		274
Acquisition and reorganization costs		348		18
Sub-total adjustments		1,594		833
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	13,916	$	11,172

	Nine Months Ended June 30,
	2012		2011
Net income attributed to Landauer, Inc.	$	18,601	$	19,352
Add back:
Interest expense, net		2,319		(14)
Income taxes		7,860		9,698
Depreciation and amortization		7,752		5,750
Earnings before interest, taxes, depreciation and amortization (EBITDA)	$	36,532	$	34,786
Adjustments:
Non-cash stock-based compensation expense		2,115		1,486
IT platform enhancements expenses		1,173		920
Acquisition and reorganization costs		2,509		230
Sub-total adjustments		5,797		2,636
Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	42,329	$	37,422

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Reconciliation of EPS to Adjusted EPS

	Three Months Ended June 30,
	2012		2011
Net income attributed to Landauer, Inc.	$	6,566	$	5,536
Sub-total adjustments		1,594		833
Income taxes on adjustments		(367)		(266)
Adjustments, net		1,227		567
Adjusted net income	$	7,793	$	6,103
Adjusted net income per diluted share	$	0.83	$	0.65
Weighted average diluted shares outstanding		9,412		9,386

	Nine Months Ended June 30,
	2012		2011
Net income attributed to Landauer, Inc.	$	18,601	$	19,352
Sub-total adjustments		5,797		2,636
Income taxes on adjustments		(1,693)		(867)
Adjustments, net		4,104		1,769
Adjusted net income	$	22,705	$	21,121
Adjusted net income per diluted share	$	2.42	$	2.25
Weighted average diluted shares outstanding		9,397		9,376

Adjusted Free Cash Flow

	Nine Months Ended June 30,
	2012		2011
Adjusted EBITDA	$	42,329	$	37,422
Change in working capital		3,990		3,203
Capital expenditures		(11,476)		(9,627)
Adjusted Free Cash Flow	$	34,843	$	30,998

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Forward-Looking Statements

Certain matters contained in this report, including the information contained under the heading “Fiscal 2012 Outlook” in Item 2 of this Quarterly Report on Form 10-Q, constitute forward-looking statements that are based on certain assumptions and involve certain risks and uncertainties. These include the following, without limitation: assumptions, risks and uncertainties associated with the Company’s future performance, the Company’s development and introduction of new technologies in general; the ability to protect and utilize the Company’s intellectual property; continued customer acceptance of the InLight technology; the adaptability of optically stimulated luminescence (OSL) technology to new platforms and formats; military and other government funding for the purchase of certain of the Company’s equipment and services; the impact on sales and pricing of certain customer group purchasing arrangements; changes in spending or reimbursement for medical products or services; the costs associated with the Company’s research and business development efforts; the usefulness of older technologies and related licenses and intellectual property; the effectiveness of and costs associated with the Company’s IT platform enhancements; the anticipated results of operations of the Company and its subsidiaries or ventures; valuation of the Company’s long-lived assets or business units relative to future cash flows; changes in pricing of products and services; changes in postal and delivery practices; the Company’s business plans; anticipated revenue and cost growth; the ability to integrate the operations of acquired businesses and to realize the expected benefits of acquisitions; the risks associated with conducting business internationally; costs incurred for potential acquisitions or similar transactions; other anticipated financial events; the effects of changing economic and competitive conditions, including instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; foreign exchange rates; government regulations; accreditation requirements; changes in the trading market that affect the costs of obligations under the Company’s benefit plans; and pending accounting pronouncements. These assumptions may not materialize to the extent assumed, and risks and uncertainties may cause actual results to be different from what is anticipated today. These risks and uncertainties also may result in changes to the Company’s business plans and prospects, and could create the need from time to time to write down the value of assets or otherwise cause the Company to incur unanticipated expenses. Additional information may be obtained by reviewing the information set forth in Item 1A “Risk Factors” and Item 7A “Quantitative and Qualitative Disclosures about Market Risk” and information contained in the Company's Annual Report on Form 10-K for the year ended September 30, 2011 and other reports filed by the Company, from time to time, with the SEC. The Company does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events or changes in the Company’s expectations, except as required by law.

During the past several years, the Company has been engaged in an initiative to re-engineer many of its business processes and replace significant components of its information technology systems. A principal component of this initiative is the implementation of new enterprise resource planning software and other applications to manage certain business operations. This enhancement of the Company’s IT platform has been a complex project and has involved extensive customization of the Company’s software and IT systems. In July 2012, the enhanced IT platform became operational. Although the Company has been encouraged by its experience with the enhanced platform during the first few weeks of the platform’s start-up phase, there can be no assurance that, during the remainder of this start-up phase, the new platform will continue to maintain its functionality at the levels anticipated or otherwise meet the Company’s business and operational objectives. If unforeseen problems arise, the Company’s operations could be adversely impacted, including the ability of the Company to perform one or more of the following in a timely manner: customer quotes, customer orders, product shipment, customer services and support, order billing and tracking, contractual obligations fulfillment and related operations. As previously disclosed, the Company expects to incur ongoing maintenance expenditures for the new IT platform at levels higher than the Company traditionally experienced under its prior platform. Unforeseen problems with the new platform could increase further such expenditures.

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Recently Issued Accounting Pronouncements

During the first nine months of fiscal 2012, there were no new accounting pronouncements issued that would have a material impact on the Company’s consolidated financial statements.

Recently Adopted Accounting Pronouncements

In September 2011, the FASB issued amendments to its goodwill impairment guidance. The amendments provide an option for entities to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity would not be required to calculate the fair value of a reporting unit unless it determines, based on the qualitative assessment, that it is more likely than not that the reporting unit’s fair value is less than its carrying amount. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The Company elected to adopt the amendments in connection with the performance of its annual goodwill impairment test as of September 30, 2011.

In May 2011, the FASB issued guidance amending existing guidance for measuring and disclosing fair value.  The new guidance enhances the disclosure requirements primarily for Level 3 fair value measurements.  The Company's adoption of the amended guidance at the end of the second quarter of fiscal 2012 did not have a significant impact on the fair value measurements included in the Company's financial statements as of June 30, 2012.

Critical Accounting Policies

The critical accounting policies followed by the Company are set forth in Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in “Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. The Company believes that at June 30, 2012, there have been no material changes to this information.

Item 3.  quantitative and Qualitative Disclosures about Market Risk

The Company is exposed to market risk, including changes in foreign currency exchange rates. These risks are set forth in Item 7A “Quantitative and Qualitative Disclosures about Market Risk” of the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. The Company believes there have been no material changes in the information provided from the end of the preceding fiscal year through June 30, 2012.

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Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”) (the Company’s principal executive officer and principal financial officer, respectively), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as defined in Rule 13(a)-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended. Management’s assessment excluded IZI, which was acquired by Landauer, Inc. during the first quarter of fiscal 2012.

IZI’s total assets and total revenues represented approximately 33% and 9%, respectively, of consolidated total assets and consolidated total revenues of the Company as of and for the nine month period ended June 30, 2012.  The exclusion of the acquired business is in accordance with the SEC’s general guidance that an assessment of a recently acquired business may be omitted from management’s scope in the year of acquisition.  Based upon that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures as of June 30, 2012 were effective.

Changes in Internal Control Over Financial Reporting

Management is in the process of integrating IZI operations and internal controls and procedures.  The Company intends to extend its Section 404 compliance program under the Sarbanes-Oxley Act of 2002 and the applicable rules and regulations under such Act to include IZI by September 30, 2012. There were no other changes in the Company’s internal control over financial reporting that occurred during the quarterly period ended June 30, 2012 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Subsequent to the quarterly period ended June 30, 2012, the Company implemented the final phase of its IT systems initiative which supports the order to cash cycle. Although management believes that the new system will maintain or enhance the Company's internal controls over financial reporting, management has yet to document and test the effectiveness of the new system's impact on the internal control environment for the fourth fiscal quarter of 2012. As such, there is the risk that the new system and/or new internal controls have yet unidentified deficiencies that could constitute significant deficiencies, material weaknesses or aggregate to material weaknesses in the Company's internal control over financial reporting. Management anticipates testing the new system and the new internal controls during the fourth fiscal quarter of 2012 as part of its ongoing testing of the Company's internal controls.

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PART II  OTHER INFORMATION

Item 1.  Legal Proceedings

The Company is a party, from time to time, to various legal proceedings, lawsuits and other claims arising in the ordinary course of its business. The Company does not believe that any such litigation pending as of June 30, 2012, if adversely determined, would have a material effect on its business, financial position, results of operations, or cash flows.

Item 1A.  Risk Factors

Information regarding risk factors are set forth in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. The Company believes there have been no material changes in the information provided from the end of the preceding fiscal year through June 30, 2012.

Item 6.  Exhibits

10.1	Offer Letter dated June 19, 2012 between Peter Cempellin and Landauer, Inc.
31.1	Certification of William E. Saxelby, President and Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Michael K. Burke, Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of William E. Saxelby, President and Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Michael K. Burke, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	LANDAUER, INC.
Date: August 7, 2012	/s/ Michael K. Burke
	Michael K. Burke
	Senior Vice President and Chief Financial Officer (Principal Financial Officer)

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EX-10.1

Exhibit 10.1

LANDAUER

June 19, 2012

Peter Cempellin

## ####### ##

#####, ## #####

Dear Pete:

I am privileged and happy to extend this offer of employment to join the management team at Landauer, Inc. as the President Radiation Measurement reporting to me. Your start date is projected to be July 23, 2012 predicated on the successful completion of the background check. The following is a summary of the terms and conditions of this offer:

▪ Annual Cash Compensation. Your annual base salary equivalent will be $300,000, effective as of your start date. You will have the opportunity to earn annual bonuses under the Company’s Incentive Compensation Plan for Executive Officers, with a target incentive bonus opportunity of not less than 40% of base salary. Beginning on your start date, we will prorate the annual bonus target amount of $120,000 through the end of the Fiscal 2012 year (9/30/2012) and pay you that amount with annual bonus checks in December of 2012.

▪ Restricted Stock Signing Bonus. The following signing restricted stock grant of the Company’s common stock will be made to you upon your commencement of employment: $175,000 of restricted stock value that will vest 50% at the end of year two of employment and 50% at the end of year three of employment.

▪ Cash Signing Bonus. A bonus of $100,000 will be paid to you on the first payroll following your commencement of employment. 100% of the signing bonus must be repaid to the Company if you resign within the first year of employment.

▪ Long-Term Incentive Opportunity. You will be granted an annual long-term incentive opportunity with target of not less than $150,000 over a three-year performance period, based on the attainment of performance goals and or continued service, as determined by the Company’s Board of Directors. Your first grant will be for the FY 2013 year and is generally granted at the December Compensation Committee Meeting.

▪ Benefits. You will be eligible to participate in the Company’s employee benefit programs, as offered to new employees currently and subject to any future modifications, including the 401(k) program with a 50% match on the first six percent of your contributions and an annual discretionary profit sharing component targeted at two percent of salary when the company achieves its financial goals.

▪ Vacation. Accrual at a rate of 4 weeks annually.

Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586 Telephone: (708) 755-7000 Facsimile: (708) 755-7011

Peter Cempellin

June 19, 2012

Page two

▪	Non-Qualified Executive Excess Plan. Participation in the Non-Qualified Excess Plan at a rate of 7.5% annually. Contributions are prorated for employment during the first fiscal year and will be made upon Board of Directors approval after the end of the fiscal year for active employee participants.
▪	Relocation. The following are all components of your relocation package.
	○	Physical move- you may select your own moving company and we will establish a direct bill relationship to cover the physical packing and moving of your personal belongings from ##### to the Chicago area.
	○	Costs related to the sale of home – these costs include items such as brokerage commissions, title transfer, deed, legal fees, and transfer taxes or stamps.  These costs will be grossed up for income tax purposes (federal, state, social security, and Medicare) at a mutually agreed upon rate. To be covered, the sale of the home must be completed prior to December 31, 2013.
	○	Costs related to purchase of new home – these include items such as appraisal fees, credit reports, processing fees, settlement closing fees, title fees, title insurance, survey fees and recording fees.  These costs will be grossed up for income tax purposes at a mutually agreed rate. To be covered, the purchase of the home must be completed prior to December 31, 2013.
	○	Landauer will cover your temporary living/transition housing expenses for a period of up to six months not to exceed $25,000 (until you are able to find a more permanent residence and move the required possessions to the Chicago area.) Such expenses would include hotel / living quarters, airfare, meals and rental car.  Wherever possible such arrangements will be handled on a direct bill basis.
▪	General Severance. You will be eligible for 12 months of salary continuation in the event your employment is terminated by the company without Cause.

Pete, this offer is contingent on:

▪ Satisfactorily completing a Company provided pre-employment physical, drug test and background check;

▪ Agreeing to and returning a signed copy of the Non-Competition and Confidentiality Agreement;

▪ Reading and understanding the enclosed Code of Business Conduct and Ethics, Harassment Policy, and Insider Trading Policy and returning the signed acknowledgement forms also included.  Signed forms may be returned via PDF file (email), faxed to ###-###-####, or mailed to ##### ##### (######@############.com) or my attention.

I have enclosed the Pre-Employment background check form that you need to complete and return to me. The Human Resource office will also coordinate the drug test and physical exam with you, so they will need to discuss schedules with you.

Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586 Telephone: (708) 755-7000 Facsimile: (708) 755-7011

Peter Cempellin

June 19, 2012

Page three

The management team and I are very excited about you joining the Company and helping us realize our ambitious goals for the future. If you accept this offer, please return a signed copy of the letter to me as soon as possible but no later than June 29, 2012. If there are questions, please do not hesitate to call me at ###-###-#### during the day.

Sincerely,

/s/ William E. Saxelby

William E. Saxelby

President

Enclosures

Accepted:	/s/ Peter Cempellin	Date:	June 20, 2012
	Peter Cempellin

Landauer, Inc. 2 Science Road Glenwood, Illinois 60425-1586 Telephone: (708) 755-7000 Facsimile: (708) 755-7011

EX-31.1

Exhibit 31.1

CERTIFICATION

I, William E. Saxelby, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Landauer, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
5.	The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: August 7, 2012	/s/ William E. Saxelby
	William E. Saxelby
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Michael K. Burke, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Landauer, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.	The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
	(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
5.	The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
	(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
	(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: August 7, 2012	/s/ Michael K. Burke
	Michael K. Burke
	Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Landauer, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William E. Saxelby, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

i.	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
ii.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Landauer, Inc. and will be retained by Landauer, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Date: August 7, 2012	/s/ William E. Saxelby
	William E. Saxelby
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Landauer, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael K. Burke, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

i.	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
ii.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Landauer, Inc. and will be retained by Landauer, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Date: August 7, 2012	/s/ Michael K. Burke
	Michael K. Burke
	Chief Financial Officer

XML

Accumulated Other Comprehensive Loss (Accumulated Other Comprehensive Loss) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Accumulated Other Comprehensive Loss [Abstract]
Foreign currency translation adjustments	$ 92	$ 2,286
Defined benefit pension and postretirement plans activity	(5,179)	(5,415)
Total accumulated other comprehensive loss	$ (5,087)	$ (3,129)

XML

Segment Information (Reconciliation Of Assets From Segment To Consolidated) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Consolidated Assets	$ 286,248	$ 168,656
Radiation Measurement [Member]
Consolidated Assets	153,493	136,950
Medical Physics [Member]
Consolidated Assets	37,571	31,706
Medical Products [Member]
Consolidated Assets	$ 95,184	$ 0

XML

Employee Benefit Plans (Net Periodic Benefit Cost For Pension And Retiree Medical Plans) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Pension Benefits [Member]
Service Cost	$ 0	$ 0	$ 0	$ 0
Interest Cost	360	363	1,080	1,090
Expected return on plan assets	(328)	(345)	(984)	(1,035)
Amortization of prior service credit	0	0	0	0
Amortization of net loss	79	26	236	78
Net periodic benefit cost (credit)	111	44	332	133
Other Benefits [Member]
Service Cost	15	13	44	39
Interest Cost	13	14	40	42
Expected return on plan assets	0	0	0	0
Amortization of prior service credit	0	(27)	0	(83)
Amortization of net loss	0	0	0	0
Net periodic benefit cost (credit)	$ 28	$ 0	$ 84	$ (2)

XML

Acquisition And Reorganization Costs (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Acquisition And Reorganization Costs [Abstract]
Acquisition and reorganization costs	$ 348	$ 18	$ 2,509	$ 230
Number of acquisitions				2

XML

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Jun. 30, 2012

Accumulated Other Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss

	June 30, 2012		September 30, 2011
Foreign currency translation adjustments	$	92	$	2,286
Defined benefit pension and postretirement plans activity		(5,179)		(5,415)
Total accumulated other comprehensive loss	$	(5,087)	$	(3,129)

XML

Stock-Based Compensation (Narrative) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense for restricted share awards	$ 2,115	$ 1,486
Income tax benefit recognized related to stock-based compensation	783	556
Total intrinsic value of options exercised	34	59
Income tax benefit from exercise of stock options	13	22
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average granted fair value per share	$ 51.57	$ 63.39
Unrecognized compensation expense related to restricted share awards	4,962
Unrecognized compensation expense expected to be recognize, years	1 year 4 months 17 days
Total fair value of shares vested	$ 709	$ 409

XML

Income Taxes (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Income Taxes [Line Items]
Effective tax rate	29.20%	32.90%
Recognized tax benefit due to settlement of audit	$ 140
Unrecognized tax benefits, related interest and penalties	679
Unrecognized tax benefits and related interest and penalties expected to reverse within the next 12 months, lower limit	225
Unrecognized tax benefits and related interest and penalties expected to reverse within the next 12 months, upper limit	$ 245
Minimum [Member]
Income Taxes [Line Items]
Statute of limitations on state income tax returns	3 years
Statute of limitations on the examination of tax returns	2 years
Maximum [Member]
Income Taxes [Line Items]
Statute of limitations on state income tax returns	4 years
Statute of limitations on the examination of tax returns	6 years

XML

Segment Information (Financial Information For Each Reportable Segment) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Revenues	$ 39,205	$ 29,158	$ 114,968	$ 89,923
Operating income (loss)	9,249	7,832	26,951	27,839
Depreciation and amortization	2,722	2,146	7,752	5,750
Capital expenditures for property, plant & equipment	4,118	3,974	11,476	9,627
Radiation Measurement [Member]
Revenues	26,926	23,860	81,328	75,291
Operating income (loss)	6,813	7,790	21,132	28,449
Depreciation and amortization	1,803	1,905	5,415	5,077
Capital expenditures for property, plant & equipment	3,949	3,786	10,986	9,152
Medical Physics [Member]
Revenues	8,064	5,298	23,186	14,632
Operating income (loss)	517	42	1,519	(610)
Depreciation and amortization	395	241	1,029	673
Capital expenditures for property, plant & equipment	137	188	449	475
Medical Products [Member]
Revenues	4,215	0	10,454	0
Operating income (loss)	1,919	0	4,300	0
Depreciation and amortization	524	0	1,308	0
Capital expenditures for property, plant & equipment	$ 32	$ 0	$ 41	$ 0

XML

Acquisition And Reorganization Costs

9 Months Ended

Jun. 30, 2012

Acquisition And Reorganization Costs [Abstract]

Acquisition And Reorganization Costs

(3)Acquisition and Reorganization Costs

Acquisition and reorganization costs for the nine months ended June 30, 2012 and 2011 were $2,509 and $230, respectively.Such expenses were primarily for professional fees with accounting, financial, legal and tax advisors to support the due diligence, transaction structure and accounting for acquisitions, as well as costs in the pursuit of acquisitions that may not be consummated.In fiscal 2012, such expenses primarily supported the acquisition of IZI as described under the footnote “Business Combinations.”In fiscal 2011, such expenses were related to the establishment of an unconsolidated joint venture in Turkey and the acquisition of two medical physics practices.

XML

Stock-Based Compensation (Restricted Share Awards) (Details) (Restricted Stock [Member], USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted Share Awards Outstanding at October 1, 2011	86
Number of Restricted Share Awards Granted	75
Number of Restricted Share Awards Vested	(12)
Number of Restricted Share Awards Forfeited	(6)
Number of Restricted Share Awards Outstanding at June 30, 2012	143
Weighted-Average Fair Value Outstanding at October 1, 2011	$ 61.61
Weighted-average fair value granted	$ 51.57	$ 63.39
Weighted-Average Fair Value Vested	$ 60.84
Weighted-Average Fair Value Forfeited	$ 55.82
Weighted-Average Fair Value Outstanding at June 30, 2012	$ 56.66

XML

Segment Information (Tables)

9 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Financial Information For Each Reportable Segment

			Three Months Ended June 30, 2012
	Radiation Measurement			Medical Physics		Medical Products		Consolidated
Revenues	$	26,926		$	8,064	$	4,215	$	39,205
Operating income		6,813			517		1,919		9,249
Depreciation and amortization		1,803			395		524		2,722
Capital expenditures for property, plant & equipment		3,949			137		32		4,118

			Three Months Ended June 30, 2011
	Radiation Measurement			Medical Physics		Medical Products		Consolidated
Revenues	$	23,860		$	5,298	$	0	$	29,158
Operating income		7,790			42		0		7,832
Depreciation and amortization		1,905			241		0		2,146
Capital expenditures for property, plant & equipment		3,786			188		0		3,974

			Nine Months Ended June 30, 2012
	Radiation Measurement			Medical Physics		Medical Products		Consolidated
Revenues	$	81,328		$	23,186	$	10,454	$	114,968
Operating income		21,132			1,519		4,300		26,951
Depreciation and amortization		5,415			1,029		1,308		7,752
Capital expenditures for property, plant & equipment		10,986			449		41		11,476

			Nine Months Ended June 30, 2011
	Radiation Measurement			Medical Physics		Medical Products		Consolidated
Revenues	$	75,291		$	14,632	$	0	$	89,923
Operating income (loss)		28,449			(610)		0		27,839
Depreciation and amortization		5,077			673		0		5,750
Capital expenditures for property, plant & equipment		9,152			475		0		9,627

Reconciliation Of Assets From Segment To Consolidated

	June 30, 2012		September 30, 2011
Segment Assets:
Radiation Measurement	$	153,493	$	136,950
Medical Physics		37,571		31,706
Medical Products		95,184		0
Consolidated Assets	$	286,248	$	168,656

XML

Employee Benefit Plans (Tables)

9 Months Ended

Jun. 30, 2012

Employee Benefit Plans [Abstract]

Net Periodic Benefit Cost For Pension And Retiree Medical Plans

	Pension Benefits				Other Benefits
	Three Months Ended June 30,
	2012		2011		2012		2011
Service cost	$	0	$	0	$	15	$	13
Interest cost		360		363		13		14
Expected return on plan assets		(328)		(345)		0		0
Amortization of prior service credit		0		0		0		(27)
Amortization of net loss		79		26		0		0
Net periodic benefit cost	$	111	$	44	$	28	$	0

	Pension Benefits				Other Benefits
	Nine Months Ended June 30,
	2012		2011		2012		2011
Service cost	$	0	$	0	$	44	$	39
Interest cost		1,080		1,090		40		42
Expected return on plan assets		(984)		(1,035)		0		0
Amortization of prior service credit		0		0		0		(83)
Amortization of net loss		236		78		0		0
Net periodic benefit cost (credit)	$	332	$	133	$	84	$	(2)

XML

Stock-Based Compensation (Stock Options) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	9 Months Ended
	Jun. 30, 2012
Stock-Based Compensation [Abstract]
Number of Options Outstanding at October 1, 2011	90
Number of Options Exercised	(3)
Number of Options Outstanding at October 1, 2011	87
Number of Options Exercisable	87
Weighted-Average Exercise Price Outstanding at October 1, 2011	$ 45.23
Weighted-Average Exercise Price Exercised	$ 43.35
Weighted-Average Exercise Price Outstanding at June 30, 2012	$ 45.29
Weighted-Average Exercise Price Exercisable	$ 45.29
Weighted-Average Remaining Contractual Term Outstanding at June 30, 2012	2 years 6 months
Weighted-Average Remaining Contractual Term Exercisable	2 years 6 months
Aggregate Intrinsic Value Outstanding	$ 1,048
Aggregate Intrinsic Value Exercisable	$ 1,048

XML

Business Combinations (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	0 Months Ended	9 Months Ended		0 Months Ended				9 Months Ended
	Nov. 14, 2011	Jun. 30, 2011	Jun. 30, 2012	Nov. 14, 2011 Customer Relationships [Member]	Nov. 14, 2011 Licenses And Patents [Member]	Nov. 14, 2011 Tax Deductible Goodwill [Member]	Nov. 14, 2011 Trademarks And Tradenames [Member]	Jun. 30, 2012 IZI [Member]
Business Acquisition [Line Items]
Business acquisition, cash paid	$ 93,000
Purchase price cash applied to repay outstanding indebtedness	26,941
Deposited purchase price into an escrow account	9,300
Consideration transferred to acquire IZI	94,283
Excess consideration transferred over fair value of net tangible and intangible assets acquired resulted in goodwill	64,069		64,069
Deduction for income tax purposes	64,641
Term of amortization, years	15 years			15 years	7 years	15 years
Business acquisition, intangible assets with indefinite lives							2,000
Business acquisition, intangible assets				23,000	2,000
Revenues								10,454
Net income attributed to Landauer, Inc.								$ 2,719
Business Combination Number Of Acquisitions		2

XML

Business Combinations (Consideration Transferred To Acquire IZI And The Assets And Liabilities Assumed) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Nov. 14, 2011
Business Combinations [Abstract]
Current assets	$ 4,587
Property, plant and equipment	763
Intangible assets	27,000
Goodwill	64,069	64,069
Non-current deferred taxes, net	212
Other non-current assets	24
Current liabilities	(2,196)
Other long-term liabilities	(176)
Total assets acquired and liabilities assumed	$ 94,283

XML

Business Combinations

9 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Combinations

(2)Business Combinations

Acquisition of IZI Medical Products, LLC

On November 14, 2011, Landauer acquired all of the outstanding equity interests of IZI Medical Products, LLC (“IZI”), a leading provider of high quality medical consumable accessories used in radiology, radiation therapy, and image guided surgery procedures, for $93,000 plus working capital and the assumption of liabilities.The Company completed the acquisition of IZI as a platform to expand into the radiation oncology, radiology, and image guided surgery end markets.The operating results of IZI are reported in the Medical Products reporting segment.

A portion of the purchase price, in the amount of $26,941, was applied to repay the outstanding indebtedness of IZI and certain unpaid expenses incurred by IZI and other disclosed parties in connection with the transaction.Landauer also deposited $9,300 of the purchase price into an escrow account, which will be held until January 2013 and applied to the settlement of the IZI seller’s indemnification obligations, if any, in connection with the transaction.The Company funded the acquisition through borrowings under the new credit agreement with a syndicate of lenders led by BMO Harris and PNC Bank.

The following table summarizes the $94,283 of consideration transferred to acquire IZI and the assets acquired and liabilities assumed based on their fair values as of the date of the acquisition.

Current assets	$	4,587
Property, plant and equipment		763
Intangible assets		27,000
Goodwill		64,069
Non-current deferred taxes, net		212
Other non-current assets		24
Current liabilities		(2,196)
Other long-term liabilities		(176)
Total assets acquired and liabilities assumed	$	94,283

The excess of the consideration transferred over the fair value of the net tangible and intangible assets acquired resulted in goodwill of $64,069, which is attributable primarily to the earnings power of the future products and services expected to be produced by IZI, new customer expansion opportunities in adjacent markets that are expected to result from the business combination with Landauer, and the potential to acquire or merge with other businesses. The goodwill has been assigned to the Medical Products reporting segment.For income tax purposes, the Company will deduct $64,641 of goodwill, which will be amortized over 15 years.The Company acquired trademarks and tradenames in the amount of $2,000 which have indefinite lives, patents in the amount of $2,000 which are being amortized over 7 years, and $23,000 of customer relationships which are being amortized over 15 years.For income tax purposes, the values of the trademarks and tradenames, patents and customer relationships will be amortized over 15 years.

IZI’s revenues of $10,454 and net income of $2,719 were recognized in the Company’s consolidated financial statements for the period from November 14, 2011 to June 30, 2012.

Unaudited Proforma Results

The following unaudited proforma summary presents Landauer’s consolidated information as if IZI had been acquired on October 1, 2010.

	Nine months ended June 30,
	2012		2011
Proforma revenues	$	117,226	$	103,922
Proforma net income attributed to Landauer, Inc.		18,735		18,643

The proforma results include adjustments to IZI’s accounting policies to align with those of Landauer.Certain other adjustments to IZI’s results, together with the consequential tax effects, include: customer freight expense netted against customer freight revenues; increased costs to reflect the impact of the increase, upon acquisition, in finished goods fair value; additional amortization for intangible assets; elimination of management fees charged by IZI’s former majority shareholder; and elimination of IZI’s interest expense related to its pre-existing debt agreements.The proforma adjustments also reflect: additional interest expense incurred in connection with debt financing of the acquisition compared to interest expense under its pre-existing debt agreements; amortization of debt issuance costs; and the income tax impact of these adjustments.The unaudited proforma information is not necessarily indicative of the results of operations that would have been achieved if the acquisition had been effective as of the beginning of the periods presented.

Other Acquisitions

During the first nine months of fiscal 2012, the Company completed the acquisition of a medical physics practice in North Carolina, which was not material to the Company’s consolidated financial statements.During the first nine months of fiscal 2011, the Company established an unconsolidated joint venture in Turkey and completed the acquisition of two diagnostics physics practices, none of which were individually, or in the aggregate, material to the Company's consolidated financial statements.

XML

Business Combinations (Proforma Summary Of Landauer's Consolidated Information) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Business Combinations [Abstract]
Proforma revenues	$ 117,226	$ 103,922
Proforma net income attributed to Landauer, Inc.	$ 18,735	$ 18,643

XML

Income Per Common Share (Computation Of Net Income Per Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Per Common Share [Abstract]
Net income attributed to Landauer, Inc.	$ 6,566	$ 5,536	$ 18,601	$ 19,352
Less: Income allocated to unvested restricted stock	34	32	101	95
Net income available to common stockholders	$ 6,532	$ 5,504	$ 18,500	$ 19,257
Basic weighted averages shares outstanding	9,371	9,340	9,357	9,330
Net income per share - Basic	$ 0.70	$ 0.59	$ 1.98	$ 2.06
Effect of dilutive securities	41	46	40	46
Diluted weighted averages shares outstanding	9,412	9,386	9,397	9,376
Net income per share - Diluted	$ 0.69	$ 0.59	$ 1.97	$ 2.05

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
ASSETS
Cash and cash equivalents	$ 19,174	$ 7,914
Receivables, net of allowances of $893 and $794, respectively	31,771	25,516
Inventories	7,159	8,286
Prepaid income taxes	147	4,921
Prepaid expenses and other current assets	4,315	4,005
Current assets	62,566	50,642
Property, plant and equipment, at cost	108,504	96,798
Accumulated depreciation	(52,812)	(49,157)
Net property, plant and equipment	55,692	47,641
Equity in joint ventures	11,460	10,699
Goodwill	105,911	39,962
Intangible assets, net of accumulated amortization of $8,884 and $7,355, respectively	38,677	10,908
Dosimetry devices, net of accumulated depreciation of $10,899 and $9,728, respectively	6,351	5,618
Other assets	5,591	3,186
Assets	286,248	168,656
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	8,162	5,457
Dividends payable	5,354	5,301
Deferred contract revenue	16,651	14,713
Short-term debt	0	19,805
Accrued compensation and related costs	6,449	5,607
Other accrued expenses	5,944	7,066
Current liabilities	42,560	57,949
Non-current liabilities:
Long-term debt	127,587	0
Pension and postretirement obligations	14,613	14,202
Deferred income taxes	14,872	12,805
Other non-current liabilities	1,069	1,292
Non-current liabilities	158,141	28,299
Stockholders' equity:
Preferred stock, $.10 par value per share, authorized 1,000,000 shares; none issued	0	0
Common stock, $.10 par value per share, authorized 20,000,000 shares; 9,512,973 and 9,462,807 shares issued and outstanding at June 30, 2012 and September 30, 2011, respectively	951	946
Additional paid in capital	35,867	33,791
Accumulated other comprehensive loss	(5,087)	(3,129)
Retained earnings	52,665	49,724
Landauer, Inc. stockholders' equity	84,396	81,332
Noncontrolling interest	1,151	1,076
Stockholders' equity	85,547	82,408
Liabilities and Stockholders' Equity	$ 286,248	$ 168,656

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Employee Benefit Plans (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Defined Benefit Plan Disclosure [Line Items]
Employer contribution for retirement savings plan	$ 990	$ 875
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer contribution for pension plan	$ 356

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net income	$ 19,080	$ 19,808
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,752	5,750
Equity in net income of joint ventures, net of dividends	(1,162)	(790)
Stock-based compensation and related net tax benefits	2,361	1,636
Current and long-term deferred taxes, net	2,430	(105)
Increase in accounts receivable, net	(4,480)	(1,505)
Decrease in prepaid taxes	4,774	5,160
Other operating assets, net	(2,265)	(3,459)
Other operating liabilities, net	1,963	1,673
Net cash provided by operating activities	30,453	28,168
Cash flows used by investing activities:
Acquisition of property, plant and equipment	(11,476)	(9,627)
Acquisition of joint ventures and businesses, net of cash acquired	(98,297)	(1,800)
Other investing activities, net	(754)	(1,844)
Net cash used by investing activities	(110,527)	(13,271)
Cash flows provided (used) by financing activities:
Net borrowings on revolving credit facility	(19,805)	378
Long-term borrowings - proceeds	132,887
Long-term borrowings - repayment	(5,300)
Dividends paid to stockholders	(15,607)	(15,413)
Other financing activities, net	(273)	(110)
Net cash provided (used) by financing activities	91,902	(15,145)
Effects of foreign currency translation	(568)	608
Net increase in cash and cash equivalents	11,260	360
Opening balance - cash and cash equivalents	7,914	7,659
Ending balance - cash and cash equivalents	$ 19,174	$ 8,019

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Goodwill And Other Intangible Assets (Other Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 47,561	$ 18,263
Accumulated Amortization	8,884	7,355
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	40,615	15,645
Accumulated Amortization	7,704	6,467
Trademarks And Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,024	1,024
Accumulated Amortization	0	0
Licenses And Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,345	1,017
Accumulated Amortization	623	331
Other Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	577	577
Accumulated Amortization	$ 557	$ 557

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Business Combinations (Tables)

9 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Consideration Transferred To Acquire IZI And The Assets And Liabilities Assumed

Current assets	$	4,587
Property, plant and equipment		763
Intangible assets		27,000
Goodwill		64,069
Non-current deferred taxes, net		212
Other non-current assets		24
Current liabilities		(2,196)
Other long-term liabilities		(176)
Total assets acquired and liabilities assumed	$	94,283

Proforma Summary Of Landauer's Consolidated Information

	Nine months ended June 30,
	2012		2011
Proforma revenues	$	117,226	$	103,922
Proforma net income attributed to Landauer, Inc.		18,735		18,643

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Fair Value Measurements (Financial Assets Measured At Fair Value On A Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Cash equivalents	$ 44	$ 27
Mutual Funds	2,281	1,752
Total financial assets at fair value	2,325	1,779
Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Cash equivalents	0	0
Mutual Funds	0	0
Total financial assets at fair value	0	0
Significant Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Cash equivalents	0	0
Mutual Funds	0	0
Total financial assets at fair value	$ 0	$ 0

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Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Financial Assets Measured At Fair Value On A Recurring Basis

	Fair Value Measurements at June 30, 2012 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset Category:
Cash equivalents	$	44	$	0	$	0
Mutual funds		2,281		0		0
Total financial assets at fair value	$	2,325	$	0	$	0

	Fair Value Measurements at September 30, 2011 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset Category:
Cash equivalents	$	27	$	0	$	0
Mutual funds		1,752		0		0
Total financial assets at fair value	$	1,779	$	0	$	0

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Basis Of Presentation

9 Months Ended

Jun. 30, 2012

Basis Of Presentation [Abstract]

Basis Of Presentation

(1)Basis of Presentation

The accompanying unaudited consolidated financial statements reflect the financial position of Landauer, Inc. and subsidiaries (“Landauer” or “the Company”), including businesses acquired and investments in joint ventures as of the effective date of the transactions.

The results of operations for the three and nine month periods ended June 30, 2012 and 2011 are not necessarily indicative of the results to be expected for the full fiscal year.The September 30, 2011 balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments necessary for a fair statement of such financial statements.Certain reclassifications have been made in the financial statements for comparative purposes.These reclassifications have no effect on the results of operations or financial position of the Company.

These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2011 and other financial information filed with the Securities and Exchange Commission (the “SEC”).

The accounting policies followed by the Company are set forth in the Company’s Annual Report on Form 10-K for the year ended September 30, 2011.There have been no changes to the accounting policies for the three and nine month periods ended June 30, 2012.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Sep. 30, 2011
Consolidated Balance Sheets [Abstract]
Receivables, allowances	$ 893	$ 794
Intangible assets, accumulated amortization	8,884	7,355
Dosimetry devices, accumulated depreciation	$ 10,899	$ 9,728
Preferred stock, par value	$ 0.10	$ 0.10
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	9,512,973	9,462,807
Common stock, shares outstanding	9,512,973	9,462,807

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Stock-Based Compensation

9 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

(11)Stock-Based Compensation

Stock-based compensation expenses for restricted share awards totaled $2,115and $1,486 for the nine months ended June 30, 2012 and 2011, respectively.The total income tax benefit recognized in the unaudited consolidated statements of income related to stock-based compensation was $783 and $556 during the first nine months of fiscal 2012 and 2011, respectively.

Restricted Share Awards

Restricted share transactions during the nine months ended June 30, 2012 were as follows:

	Number of Restricted Share Awards (in thousands)	Weighted- Average Fair Value
Outstanding at October 1, 2011	86	$	61.61
Granted	75		51.57
Vested	(12)		60.84
Forfeited	(6)		55.82
Outstanding at June 30, 2012	143	$	56.66

The per share weighted average fair value of restricted shares, including restricted stock and performance shares, granted during the nine months ended June 30, 2012 and 2011 was $51.57 and $63.39, respectively.As of June 30, 2012, unrecognized compensation expense related to restricted share awards totaled $4,962 and is expected to be recognized over a weighted average period of 1.38 years.The total fair value of shares vested during the nine months ended June 30, 2012 and 2011 was $709 and $409, respectively.

Stock Options

A summary of stock option activity during the nine months ended June 30, 2012 is presented below:

	Number of Options (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at October 1, 2011	90	$	45.23
Exercised	(3)		43.35
Outstanding at June 30, 2012	87		45.29	2.5	$	1,048
Exercisable at June 30, 2012	87	$	45.29	2.5	$	1,048

The Company has not granted stock options subsequent to fiscal 2005.As of June 30, 2012, all outstanding stock options were vested and compensation expense related to stock options was recognized in prior fiscal years.The intrinsic value of options exercised totaled $34 and $59 during the first nine months of fiscal 2012 and 2011, respectively.The total income tax benefit recognized in the unaudited consolidated statements of income related to the exercise of stock options was $13 and $22 during the nine months ended June 30, 2012 and 2011, respectively.

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Document And Entity Information	9 Months Ended
	Jun. 30, 2012	Jul. 26, 2012
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2012
Entity Registrant Name	LANDAUER INC
Trading Symbol	ldr
Entity Central Index Key	0000825410
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		9,451,563

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Employee Benefit Plans

9 Months Ended

Jun. 30, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

(12)Employee Benefit Plans

The components of net periodic benefit cost for pension and retiree medical plans were as follows:

	Pension Benefits				Other Benefits
	Three Months Ended June 30,
	2012		2011		2012		2011
Service cost	$	0	$	0	$	15	$	13
Interest cost		360		363		13		14
Expected return on plan assets		(328)		(345)		0		0
Amortization of prior service credit		0		0		0		(27)
Amortization of net loss		79		26		0		0
Net periodic benefit cost	$	111	$	44	$	28	$	0

	Pension Benefits				Other Benefits
	Nine Months Ended June 30,
	2012		2011		2012		2011
Service cost	$	0	$	0	$	44	$	39
Interest cost		1,080		1,090		40		42
Expected return on plan assets		(984)		(1,035)		0		0
Amortization of prior service credit		0		0		0		(83)
Amortization of net loss		236		78		0		0
Net periodic benefit cost (credit)	$	332	$	133	$	84	$	(2)

The Company is required for the 2012 plan year, under IRS minimum funding standards, to make a contribution of $356 to its defined benefit pension plan by June 15, 2013.

The Company maintains a 401(k) Retirement Savings Plan for certain employees, which provides for employer matching contributions, and a supplemental defined contribution plan for certain executives, which provides for employer contributions at the discretion of the Company.Amounts expensed for Company contributions under these plans during the first nine months of fiscal 2012 and 2011 were $990 and $875, respectively.

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Consolidated Statements Of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statements Of Income [Abstract]
Net revenues	$ 39,205	$ 29,158	$ 114,968	$ 89,923
Costs and expenses:
Cost of sales	17,357	12,077	48,292	34,764
Selling, general and administrative	12,251	9,231	37,216	27,090
Acquisition and reorganization costs	348	18	2,509	230
Costs and expenses	29,956	21,326	88,017	62,084
Operating income	9,249	7,832	26,951	27,839
Equity in income of joint ventures	684	575	2,555	1,701
Interest income (expense), net	(1,113)	14	(2,566)	14
Other income (expense), net	(50)	(65)	0	(48)
Income before taxes	8,770	8,356	26,940	29,506
Income taxes	2,014	2,667	7,860	9,698
Net income	6,756	5,689	19,080	19,808
Less: Net income attributed to noncontrolling interest	190	153	479	456
Net income attributed to Landauer, Inc.	$ 6,566	$ 5,536	$ 18,601	$ 19,352
Net income per share attributable to Landauer, Inc. shareholders:
Basic	$ 0.70	$ 0.59	$ 1.98	$ 2.06
Weighted average basic shares outstanding	9,371	9,340	9,357	9,330
Diluted	$ 0.69	$ 0.59	$ 1.97	$ 2.05
Weighted average diluted shares outstanding	9,412	9,386	9,397	9,376

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Income Taxes

9 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

(6)Income Taxes

The effective tax rate was 29.2% and 32.9% for the first nine months of fiscal 2012 and 2011, respectively.The decline in the effective tax rate was due primarily to cumulative prior year credits in a foreign tax jurisdiction that were approved during the first half of the current fiscal year and additional U.S. foreign tax credits and research and development credits for fiscal 2011 realized during the third quarter of fiscal 2012 as a result of filing the U.S. Federal, state and local income tax returns.

As of June 30, 2012, the Company's U.S. income tax returns for fiscal 2008 and subsequent years remained subject to examination by the Internal Revenue Service (“IRS”).As of June 30, 2012, the Company is not currently under any income tax audit by the IRS or any state, local or foreign jurisdictions.State income tax returns generally have statutes of limitations for periods between three and four years from the date of filing.The Company's foreign operations have statutes of limitations on the examination of income tax returns for periods between two and six years.

The Company's reserves for uncertain tax positions are reviewed periodically and are adjusted as events occur that affect the estimated liability for additional taxes, such as the lapsing of applicable statutes of limitations, the conclusion of tax audits and the measurement of additional tax.During the third quarter of fiscal 2012, the Company recorded a $140 tax benefit due to a lapsing of the fiscal year 2008 U.S. statute of limitations.The amount of unrecognized tax benefits and the related interest and penalties at June 30, 2012 was $679. The amount of unrecognized tax benefits and the related interest and penalties expected to reverse within the next year is estimated to be approximately $225 to $245.

On December 23, 2011, the IRS published regulations (in proposed and temporary format) under IRC Section 263(a) on the deduction and capitalization of expenditures related to tangible property, i.e., the “repair regulations.”These regulations are generally effective for taxable years beginning on or after January 1, 2012, or where applicable, to amounts paid or incurred to produce or acquire property in a taxable year beginning on or after such date.On March 7, 2012, additional Revenue Procedures were released addressing sections of the regulations published in December 2011.The Company is currently researching its existing policies, along with the IRS Regulations and Revenue Procedures issued, to understand the impact to the Company's income tax liability.The Company does not expect these regulations and procedures to materially impact its consolidated financial statements.

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Fair Value Measurements

9 Months Ended

Jun. 30, 2012

Fair Value Measurements [Abstract]

Fair Value Measurements

(5)Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market.Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities.A fair value hierarchy with three tiers has been established to prioritize the inputs to valuation techniques used to measure fair value.The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.Level 1 inputs include quoted prices in active markets for identical assets and liabilities.Level 2 inputs consist of observable inputs other than quoted prices in active markets or indirectly observable through corroboration with observable market data.Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances.

As of June 30, 2012, the Company’s financial assets measured and recorded at fair value on a recurring basis were comprised of investments in trading securities, which are reported in other long-term assets.The investments 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 include a money market fund and mutual funds that are publicly traded.The fair values of the shares or underlying securities of these funds are based on quoted market prices and, therefore, are categorized as Level 1 in the fair value hierarchy.

Financial assets measured at fair value on a recurring basis are summarized below:

	Fair Value Measurements at June 30, 2012 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset Category:
Cash equivalents	$	44	$	0	$	0
Mutual funds		2,281		0		0
Total financial assets at fair value	$	2,325	$	0	$	0

	Fair Value Measurements at September 30, 2011 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset Category:
Cash equivalents	$	27	$	0	$	0
Mutual funds		1,752		0		0
Total financial assets at fair value	$	1,779	$	0	$	0

As of June 30, 2012, the carrying amount of the Company’s long-term debt approximates fair value as the stated interest rates are variable in relation to prevailing market rates.

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Goodwill And Other Intangible Assets (Tables)

9 Months Ended

Jun. 30, 2012

Goodwill And Other Intangible Assets [Abstract]

Changes In The Carrying Amount Of Goodwill, By Reportable Segment

	Radiation Measurement		Medical Physics		Medical Products		Total
Goodwill at September 30, 2011	$	20,225	$	19,737	$	0	$	39,962
Increase related to acquisitions		0		2,874		64,069		66,943
Effects of foreign currency		(994)		0		0		(994)
Goodwill at June 30, 2012	$	19,231	$	22,611	$	64,069	$	105,911

Other Intangible Assets

	June 30, 2012				September 30, 2011
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer lists	$	40,615	$	7,704	$	15,645	$	6,467
Trademarks and tradenames		3,024		0		1,024		0
Licenses and patents		3,345		623		1,017		331
Other intangibles		577		557		577		557
Intangible assets	$	47,561	$	8,884	$	18,263	$	7,355

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Segment Information

9 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Segment Information

(13)Segment Information

In connection with the acquisition of IZI during the first quarter of fiscal 2012, the Company began to operate in three reportable segments, Radiation Measurement (formerly Monitoring), Medical Physics and Medical Products.The factors for determining the reportable segments reflect specific markets and the products and services offered combined with the nature of the individual business traits, as well as key financial information reviewed by management.During the third quarter of fiscal 2012, management determined that Radiation Measurement was a more accurate description for Landauer’s expanded portfolio of activities that focus on assessing radiation dose through radiation measurement and monitoring services and the provision of instrumentation for use by medical, research, military and nuclear fuel cycle markets.The Radiation Measurement segment comprises the metrological activities of the business.

The Radiation Measurement segment provides analytical services to determine occupational and environmental radiation exposure.These services are provided primarily to hospitals, medical and dental offices, universities, national laboratories, and nuclear facilities.Radiation Measurement activities also include the manufacture of various types of radiation detection monitors, the distribution and collection of the monitors to and from customers, and the analysis and reporting of exposure findings.In addition to providing analytical services, the Radiation Measurement segment leases or sells dosimetry detectors and reading equipment.

The Medical Physics segment provides therapeutic and imaging physics services to domestic hospitals, free standing imaging centers and radiation therapy centers.Service offerings include clinical physics support, equipment commissioning, accreditation support and imaging equipment testing.These professional services are provided to customers on-site by skilled physicists.

The Medical Products segment provides medical consumable accessories used in radiology, radiation therapy, and image guided surgery procedures. Medical products range from consumables used with MRI, CT, and mammography technologies to highly engineered passive reflective markers used during image guided surgery procedures.Medical Products sales are provided through the Company’s IZI subsidiary.

The Company primarily evaluates performance of the individual segments based upon, among other metrics, segment operating income or loss.Segment operating income or loss is segment revenues less segment cost of sales and segment selling, general and administrative expenses.Corporate expenses for shared functions, including corporate management, corporate finance and human resources, are recognized in the Radiation Measurement segment where they have been reported historically.In addition, acquisition and reorganization costs are not allocated to the segments.Information about net other income, including interest income and expense, and income taxes is not provided at the segment level. As the Company’s business model evolves in increased complexity, management may determine it necessary to change this reporting practice to reflect any appropriate allocations.

The following tables summarize financial information for each reportable segment:

			Three Months Ended June 30, 2012
	Radiation Measurement			Medical Physics		Medical Products		Consolidated
Revenues	$	26,926		$	8,064	$	4,215	$	39,205
Operating income		6,813			517		1,919		9,249
Depreciation and amortization		1,803			395		524		2,722
Capital expenditures for property, plant & equipment		3,949			137		32		4,118

			Three Months Ended June 30, 2011
	Radiation Measurement			Medical Physics		Medical Products		Consolidated
Revenues	$	23,860		$	5,298	$	0	$	29,158
Operating income		7,790			42		0		7,832
Depreciation and amortization		1,905			241		0		2,146
Capital expenditures for property, plant & equipment		3,786			188		0		3,974

			Nine Months Ended June 30, 2012
	Radiation Measurement			Medical Physics		Medical Products		Consolidated
Revenues	$	81,328		$	23,186	$	10,454	$	114,968
Operating income		21,132			1,519		4,300		26,951
Depreciation and amortization		5,415			1,029		1,308		7,752
Capital expenditures for property, plant & equipment		10,986			449		41		11,476

			Nine Months Ended June 30, 2011
	Radiation Measurement			Medical Physics		Medical Products		Consolidated
Revenues	$	75,291		$	14,632	$	0	$	89,923
Operating income (loss)		28,449			(610)		0		27,839
Depreciation and amortization		5,077			673		0		5,750
Capital expenditures for property, plant & equipment		9,152			475		0		9,627

	June 30, 2012		September 30, 2011
Segment Assets:
Radiation Measurement	$	153,493	$	136,950
Medical Physics		37,571		31,706
Medical Products		95,184		0
Consolidated Assets	$	286,248	$	168,656

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Income Per Common Share

9 Months Ended

Jun. 30, 2012

Income Per Common Share [Abstract]

Income Per Common Share

(9)Income per Common Share

Basic net income per share was computed by dividing net income available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period.Diluted net income per share was computed by dividing net income available to common stockholders for the period by the weighted average number of shares of common stock that would have been outstanding assuming dilution from stock-based compensation awards during the period.

The Company’s time vested restricted stock, which is a participating security, is included in the computation of earnings per share pursuant to the two-class method.Undistributed net income allocated to unvested restricted stock was not material for the three and nine month periods ended June 30, 2012 and 2011.The following table sets forth the computation of net income per share:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
Basic Net Income per Share:
Net income attributed to Landauer, Inc.	$	6,566	$	5,536	$	18,601	$	19,352
Less:Income allocated to unvested restricted stock		34		32		101		95
Net income available to common stockholders	$	6,532	$	5,504	$	18,500	$	19,257
Basic weighted averages shares outstanding		9,371		9,340		9,357		9,330
Net income per share – Basic	$	0.70	$	0.59	$	1.98	$	2.06
Diluted Net Income per Share:
Net income attributed to Landauer, Inc.	$	6,566	$	5,536	$	18,601	$	19,352
Less:Income allocated to unvested restricted stock		34		32		101		95
Net income available to common stockholders	$	6,532	$	5,504	$	18,500	$	19,257
Basic weighted averages shares outstanding		9,371		9,340		9,357		9,330
Effect of dilutive securities		41		46		40		46
Diluted weighted averages shares outstanding		9,412		9,386		9,397		9,376
Net income per share – Diluted	$	0.69	$	0.59	$	1.97	$	2.05

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Cash Dividends

9 Months Ended

Jun. 30, 2012

Cash Dividends [Abstract]

Cash Dividends

(7)Cash Dividends

On May 25, 2012, the Company declared a regular quarterly cash dividend in the amount of $0.55 per share for the third quarter of fiscal 2012.The dividends were paid on July 3, 2012 to shareholders of record as of June 8, 2012.Regular quarterly cash dividends of $0.55 per share, or $2.20 annually, were declared during fiscal 2011.

Time based restricted stock awards issued to employees and non-employee directors are eligible for dividends at the same rate paid to shareholders.The Company accrues for dividends on performance stock awards, which will be paid upon the vesting, in various future periods, of the related restricted performance stock awards assuming the performance criteria set forth in the agreements relating to such awards are met.

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Accumulated Other Comprehensive Loss

9 Months Ended

Jun. 30, 2012

Accumulated Other Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss

(8)Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in the accompanying unaudited consolidated balance sheets consist of defined benefit pension and postretirement plan adjustments for net gains, losses and prior service costs, net defined benefit plan curtailment loss and cumulative foreign currency translation adjustments.The following table sets forth the balances in accumulated other comprehensive loss for the periods ended:

	June 30, 2012		September 30, 2011
Foreign currency translation adjustments	$	92	$	2,286
Defined benefit pension and postretirement plans activity		(5,179)		(5,415)
Total accumulated other comprehensive loss	$	(5,087)	$	(3,129)

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Credit Facility

9 Months Ended

Jun. 30, 2012

Credit Facility [Abstract]

Credit Facility

(10)Credit Facility

In fiscal 2010, the Company borrowed $18,000 under its credit agreement with U.S. Bank (“old credit agreement”), originally dated October 5, 2007.As of September 30, 2011, the debt was classified as a current liability as the old credit agreement contained a subjective acceleration clause as well as a Company elected arrangement which provided for automatic draws or pay downs on the credit facility on a daily basis after taking into account operating cash needs.As of September 30, 2011, the Company had borrowings of $19,805 outstanding under the old credit agreement.In connection with its acquisition of IZI in November 2011, the Company terminated the old credit agreement.

On November 14, 2011, Landauer entered into a five-year syndicated revolving credit agreement with a group of lenders, pursuant to which, the Company has been provided a senior secured reducing revolving credit facility (“new credit agreement”) of up to $175,000 plus the ability to increase the line by an additional $25,000.Landauer borrowed $132,887 under the new credit agreement to finance the IZI acquisition, to refinance existing indebtedness and to fund certain fees and expenses associated with the closing of the new credit facility.The new credit agreement matures on November 14, 2016, and is secured by a first-priority perfected security interest in substantially all of the tangible and intangible assets of Landauer and its existing and future material domestic subsidiaries, including a pledge of 100% of the stock of each domestic subsidiary and a pledge of 66% of the stock of each first-tier foreign subsidiary.

Borrowings under the new credit agreement bear interest, at Landauer’s option, at a rate equal to either (a) the rate per annum for deposits in U.S. Dollars as reflected on the Reuters Screen LIBOR01 as of 11:00 a.m. (London, England time) for the interest period relevant to such borrowing (adjusted for any statutory reserve requirements for Eurocurrency liabilities) plus the applicable margin (the “LIBO Rate”) or (b) the greatest of (i) the federal funds rate for the borrowing day plus 0.5%, (ii) the prime rate in effect on the borrowing day and (iii) the LIBO Rate for deposits in dollars for a one month interest period on the borrowing day plus 1.0%, plus the applicable margin.Loans under the new credit agreement may be prepaid at any time without penalty with same-day written notice, subject to, in the case of loans bearing interest on the LIBO Rate, payment of customary breakage costs for prepayments made prior to the last day of the applicable interest period.

The new credit agreement includes limitations on indebtedness, liens, investments and acquisitions, loans and advances, mergers and consolidations, sales of assets, dividends, stock repurchases and other restricted payments.In addition, the new credit agreement requires that Landauer maintain (i) a minimum net worth at all times of $65,000, (ii) a maximum leverage ratio ranging between 3.00 to 1.00 and 2.50 to 1.00, as applicable for each fiscal quarter, and (iii) a minimum fixed charge coverage ratio ranging between 1.15 to 1.00 and 1.35 to 1.00, as applicable for each fiscal quarter.The new credit agreement also includes customary events of default, including but not limited to failure to pay any principal when due or any interest, fees or other amounts within three business days when due, default under any covenant or any agreement in any loan document, cross-default with other debt agreements, bankruptcy and change of control.As of June 30, 2012, the Company was in compliance with the covenants contained in the new credit agreement.

Borrowings under the new credit agreement are classified as long-term debt.As of June 30, 2012, the Company repaid $5,300 of the borrowings under the new credit facility.As of June 30, 2012, the balance outstanding under the Company’s new credit agreement was $127,587.Interest expense on the borrowings under the new and old credit facilities for the nine months ended June 30, 2012 was $2,759.The weighted average interest rate for the base and LIBOR rate was 3.10% for the first nine months of fiscal 2012.At June 30, 2012 the applicable interest rate for the base and LIBOR rate separately was 5.0% and 2.991% per annum, respectively.

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Goodwill And Other Intangible Assets (Changes In The Carrying Amount Of Goodwill, By Reportable Segment) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 30, 2012
Goodwill at September 30, 2011	$ 39,962
Increase related to acquisitions	66,943
Effects of foreign currency	(994)
Goodwill at June 30, 2012	105,911
Radiation Measurement [Member]
Goodwill at September 30, 2011	20,225
Increase related to acquisitions	0
Effects of foreign currency	(994)
Goodwill at June 30, 2012	19,231
Medical Physics [Member]
Goodwill at September 30, 2011	19,737
Increase related to acquisitions	2,874
Effects of foreign currency	0
Goodwill at June 30, 2012	22,611
Medical Products [Member]
Goodwill at September 30, 2011	0
Increase related to acquisitions	64,069
Effects of foreign currency	0
Goodwill at June 30, 2012	$ 64,069

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Recently Adopted Accounting Pronouncements

9 Months Ended

Jun. 30, 2012

Recently Adopted Accounting Pronouncements [Abstract]

Recently Adopted Accounting Pronouncements

(15)Recently Adopted Accounting Pronouncements

In September 2011, the FASB issued amendments to its goodwill impairment guidance. The amendments provide an option for entities to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity would not be required to calculate the fair value of a reporting unit unless it determines, based on the qualitative assessment, that it is more likely than not that the reporting unit’s fair value is less than its carrying amount. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted. The Company elected to adopt the amendments in connection with the performance of its annual goodwill impairment test as of September 30, 2011.

In May 2011, the FASB issued guidance amending existing guidance for measuring and disclosing fair value.  The new guidance enhances the disclosure requirements primarily for Level 3 fair value measurements.  The Company's adoption of the amended guidance at the end of the second quarter of fiscal 2012 did not have a significant impact on the fair value measurements included in the Company's financial statements as of June 30, 2012.

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Income Per Common Share (Tables)

9 Months Ended

Jun. 30, 2012

Income Per Common Share [Abstract]

Computation Of Net Income Per Share

	Three Months Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
Basic Net Income per Share:
Net income attributed to Landauer, Inc.	$	6,566	$	5,536	$	18,601	$	19,352
Less:Income allocated to unvested restricted stock		34		32		101		95
Net income available to common stockholders	$	6,532	$	5,504	$	18,500	$	19,257
Basic weighted averages shares outstanding		9,371		9,340		9,357		9,330
Net income per share – Basic	$	0.70	$	0.59	$	1.98	$	2.06
Diluted Net Income per Share:
Net income attributed to Landauer, Inc.	$	6,566	$	5,536	$	18,601	$	19,352
Less:Income allocated to unvested restricted stock		34		32		101		95
Net income available to common stockholders	$	6,532	$	5,504	$	18,500	$	19,257
Basic weighted averages shares outstanding		9,371		9,340		9,357		9,330
Effect of dilutive securities		41		46		40		46
Diluted weighted averages shares outstanding		9,412		9,386		9,397		9,376
Net income per share – Diluted	$	0.69	$	0.59	$	1.97	$	2.05

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Credit Facility (Narrative) (Details) (USD $)	0 Months Ended	9 Months Ended			0 Months Ended	9 Months Ended
	Nov. 14, 2011	Jun. 30, 2012	Sep. 30, 2011 Old Credit Agreement [Member]	Sep. 30, 2010 Old Credit Agreement [Member]	Nov. 14, 2011 New Credit Agreement [Member]	Jun. 30, 2012 New Credit Agreement [Member]	Nov. 14, 2011 Federal Funds Purchased [Member]	Nov. 14, 2011 LIBO Rate for Deposits [Member]	Jun. 30, 2012 Base Rate [Member]	Jun. 30, 2012 LIBOR Rate [Member]
Debt Instrument [Line Items]
Borrowings outstanding under credit agreement		$ 132,887,000			$ 132,887,000
Borrowings outstanding under credit agreement			19,805,000	18,000,000		127,587,000
Senior secured reducing revolving credit facility					175,000,000
Revolving credit agreement, term length	5 years
Revolving credit facility, ability to increase line by additional					25,000,000
Percentage of domestic subsidiary stock pledged					100.00%
Percentage of first-tier foreign subsidiary pledged					66.00%
Additional borrowing rate							0.50%	1.00%
Credit facility, interest period on the borrowing day	1 month
Credit facility, minimum net worth					65,000,000
Maximum leverage ratio range, upper limit					3.00
Maximum leverage ratio range, lower limit					1.00
Minimum leverage ratio range, upper limit					2.50
Minimum leverage ratio range, lower limit					1.00
Minimum fixed charge coverage ratio range, upper limit					1.15
Minimum fixed charge coverage ratio range, lower limit					1.00
Maximum fixed charge coverage ratio range, upper limit					1.35
Maximum fixed charge coverage ratio range, lower limit					1.00
Grace period to pay any principal when due or any interest, business days					3 days
Repayment of borrowings		5,300,000				5,300,000
Interest expense on borrowings under new and old credit facilities		$ 2,759,000
Weighted average interest rate		3.10%
Weighted average interest rate									5.00%	2.991%

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Consolidated Statements Of Stockholders' Equity And Comprehensive Income (USD $) In Thousands, except Share data	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]	Non-Controlling Interest [Member]	Comprehensive Income (Loss) [Member]	Total
Balance at Sep. 30, 2010	$ 945	$ 32,688	$ (783)	$ 45,940	$ 913		$ 79,703
Balance, shares at Sep. 30, 2010	9,452,765
Stock-based compensation arrangements	4	1,502	0	0	0		1,506
Stock-based compensation arrangements, shares	37,442
Dividends	0	0	0	(15,574)	(241)		(15,815)
Net income	0	0	0	19,352	456	19,808	19,808
Foreign currency translation adjustment	0	0	1,594	0	37	1,631	1,631
Defined benefit pension and postretirement plans activity	0	0	(5)	0	0	(5)	(5)
Comprehensive Income						21,434
Balance at Jun. 30, 2011	949	34,190	806	49,718	1,165		86,828
Balance, shares at Jun. 30, 2011	9,490,207
Balance at Sep. 30, 2011	946	33,791	(3,129)	49,724	1,076		82,408
Balance, shares at Sep. 30, 2011	9,462,807						9,462,807
Stock-based compensation arrangements	5	2,076	0	0	0		2,081
Stock-based compensation arrangements, shares	50,166
Dividends	0	0	0	(15,660)	(324)		(15,984)
Net income	0	0	0	18,601	479	19,080	19,080
Foreign currency translation adjustment	0	0	(2,194)	0	(80)	(2,274)	(2,274)
Defined benefit pension and postretirement plans activity	0	0	236	0	0	236	236
Comprehensive Income						17,042
Balance at Jun. 30, 2012	$ 951	$ 35,867	$ (5,087)	$ 52,665	$ 1,151		$ 85,547
Balance, shares at Jun. 30, 2012	9,512,973						9,512,973

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Goodwill And Other Intangible Assets

9 Months Ended

Jun. 30, 2012

Goodwill And Other Intangible Assets [Abstract]

Goodwill And Other Intangible Assets

(4)Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill, by reportable segment, for the nine months ended June 30, 2012 were as follows:

	Radiation Measurement		Medical Physics		Medical Products		Total
Goodwill at September 30, 2011	$	20,225	$	19,737	$	0	$	39,962
Increase related to acquisitions		0		2,874		64,069		66,943
Effects of foreign currency		(994)		0		0		(994)
Goodwill at June 30, 2012	$	19,231	$	22,611	$	64,069	$	105,911

Other intangible assets consisted of the following:

	June 30, 2012				September 30, 2011
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer lists	$	40,615	$	7,704	$	15,645	$	6,467
Trademarks and tradenames		3,024		0		1,024		0
Licenses and patents		3,345		623		1,017		331
Other intangibles		577		557		577		557
Intangible assets	$	47,561	$	8,884	$	18,263	$	7,355

No impairment of goodwill or other intangible assets was recorded as of June 30, 2012.

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Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2012

Stock-Based Compensation [Abstract]

Restricted Share Awards

	Number of Restricted Share Awards (in thousands)	Weighted- Average Fair Value
Outstanding at October 1, 2011	86	$	61.61
Granted	75		51.57
Vested	(12)		60.84
Forfeited	(6)		55.82
Outstanding at June 30, 2012	143	$	56.66

Stock Options

	Number of Options (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in thousands)
Outstanding at October 1, 2011	90	$	45.23
Exercised	(3)		43.35
Outstanding at June 30, 2012	87		45.29	2.5	$	1,048
Exercisable at June 30, 2012	87	$	45.29	2.5	$	1,048

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Cash Dividends (Narrative) (Details) (USD $)	0 Months Ended	9 Months Ended	12 Months Ended
	May 25, 2012	Jun. 30, 2012	Sep. 30, 2011 Quarterly [Member]	Sep. 30, 2011 Annually [Member]
Dividends Payable [Line Items]
Cash dividends, declaration date		May 25, 2012
Cash dividends declared, per share	$ 0.55
Cash dividends, payment date		Jul. 03, 2012
Cash dividend paid, per share			$ 0.55	$ 2.20
Cash dividends, record date		Jun. 08, 2012

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Recently Issued Accounting Pronouncements

9 Months Ended

Jun. 30, 2012

Recently Issued Accounting Pronouncements [Abstract]

Recently Issued Accounting Pronouncements

(14)Recently Issued Accounting Pronouncements

During the first nine months of fiscal 2012, there were no new accounting pronouncements issued that would have a material impact on the Company’s consolidated financial statements.