Description of Business and Basis of Presentation

12 Months Ended

Sep. 30, 2012

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

1. Description of Business and Basis of Presentation

        Rochester Medical Corporation develops, manufactures and markets a broad line of innovative, technologically enhanced urinary continence and urine drainage care products for the home care and acute/extended care markets. The Company currently manufactures and markets standard continence care products, including male external catheters and intermittent catheters, and innovative and technologically advanced products such as its FemSoft Insert and antibacterial and hydrophilic intermittent catheters. Through fiscal 2012, the Company also manufactured and marketed a line of standard and advanced Foley catheters. The Company markets its products under its Rochester Medical brand, and supplies its products to several large medical product companies for sale under brands owned by these companies, which are referred to as private label sales. The Company also sells certain ostomy and wound and scar care products and other brands of urological products into the European marketplace.

        The Company's fiscal year end is September 30. The accompanying financial statements include the accounts of Rochester Medical Corporation, Rochester Medical Limited, its wholly owned subsidiary in the United Kingdom, and Laprolan B.V., its wholly owned subsidiary in the Netherlands, together which are herein referred to as "the Company".

        The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant items subject to estimates and assumptions include the valuation allowances for inventories and accounts receivable, fair value assumptions related to investments, valuations used in the purchase of Laprolan and related to annual impairment testing, deferred income taxes and stock-based compensation. Actual results could differ from those estimates.