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Goodwill and Other Long-Lived Assets
6 Months Ended
Mar. 31, 2012
Goodwill and Other Long-Lived Assets [Abstract]  
Goodwill and Other Long-Lived Assets

Note H – Goodwill and Other Long-Lived Assets

The Company records as goodwill the excess of purchase price over the fair value of the identifiable net assets acquired. Goodwill and intangibles with indefinite useful lives are not amortized but the Company is required to perform, at a minimum, an annual assessment of the carrying value of goodwill and other intangibles with indefinite useful lives. If the carrying value of goodwill or an intangible asset exceeds its fair value, an impairment loss will be recognized. The Company has $4,262,000 of goodwill carrying value as of March 31, 2012 resulting from its acquisition in the UK of Rochester Medical Limited in 2006 and $5,597,000 of goodwill carrying value resulting from its acquisition in the Netherlands of Laprolan B.V. in 2011. The Company tests annually for goodwill impairment of the asset, which is currently on June 2nd of each fiscal year, or more frequently if events and circumstances indicate that the asset might be impaired. The recoverability of other long-lived assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge would be recognized by the amount that the carrying amount of the asset exceeds the fair value of the asset. The Company performed its most recent annual goodwill impairment testing at June 2, 2011, and concluded that the goodwill was not impaired. The increase in the recorded value of goodwill as of March 31, 2012, as compared to September 30, 2011, is entirely related to the change in foreign currency exchange rates in the United Kingdom and the Netherlands.