View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Mar. 31, 2013	May 01, 2013
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	SRDX
Entity Registrant Name	SURMODICS INC
Entity Central Index Key	0000924717
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		14,500,596

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Current Assets:
Cash and cash equivalents	$ 20,537	$ 15,540
Available-for-sale securities	15,147	14,117
Accounts receivable, net of allowance for doubtful accounts of $20 and $40 as of March 31, 2013 and September 30, 2012, respectively	4,911	5,069
Inventories	3,364	3,524
Deferred tax assets	197	219
Prepaids and other	1,495	603
Current assets of discontinued operations	129	883
Total Current Assets	45,780	39,955
Property and equipment, net	13,214	13,610
Available-for-sale securities	27,506	28,433
Deferred tax assets	5,878	5,806
Intangible assets, net	4,060	4,430
Goodwill	8,010	8,010
Other assets, net	3,145	4,075
Total Assets	107,593	104,319
Current Liabilities:
Accounts payable	969	1,657
Accrued liabilities:
Compensation	1,191	2,319
Accrued other	880	1,066
Deferred revenue	45	47
Other current liabilities	112	170
Current liabilities of discontinued operations	271	1,640
Total Current Liabilities	3,468	6,899
Deferred revenue, less current portion	181	185
Other long-term liabilities	1,959	2,247
Total Liabilities	5,608	9,331
Commitments and Contingencies (Note 15)
Stockholders' Equity:
Series A Preferred stock- $.05 par value, 450,000 shares authorized; no shares issued and outstanding
Common stock- $.05 par value, 45,000,000 shares authorized; 14,569,221 and 14,656,806 shares issued and outstanding, respectively	728	733
Additional paid-in capital	16,911	18,346
Accumulated other comprehensive income	127	40
Retained earnings	84,219	75,869
Total Stockholders' Equity	101,985	94,988
Total Liabilities and Stockholders' Equity	$ 107,593	$ 104,319

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Accounts receivable, allowance for doubtful accounts	$ 20	$ 40
Series A Preferred stock, par value	$ 0.05	$ 0.05
Series A Preferred stock, shares authorized	450,000	450,000
Series A Preferred stock, shares issued	0	0
Series A Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares authorized	45,000,000	45,000,000
Common stock, shares issued	14,569,221	14,656,806
Common stock, shares outstanding	14,569,221	14,656,806

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Revenue:
Royalties and license fees	$ 6,951	$ 6,283	$ 14,467	$ 12,893
Product sales	5,758	5,067	11,111	9,701
Research and development	986	860	1,968	1,532
Total revenue	13,695	12,210	27,546	24,126
Operating costs and expenses:
Product costs	1,945	1,615	3,904	3,205
Research and development	3,774	3,512	7,136	7,150
Selling, general and administrative	3,847	3,394	7,500	6,860
Total operating costs and expenses	9,566	8,521	18,540	17,215
Operating income from continuing operations	4,129	3,689	9,006	6,911
Other income (loss):
Investment income, net	56	143	127	281
Impairment loss on investments	(129)	(804)	(129)	(804)
Other income, net	282	162	1,458	170
Other income (loss)	209	(499)	1,456	(353)
Income from continuing operations before income taxes	4,338	3,190	10,462	6,558
Income tax provision	(918)	(1,244)	(2,794)	(2,457)
Income from continuing operations	3,420	1,946	7,668	4,101
Discontinued operations:
Income (loss) from discontinued operations, net of income taxes	682	(344)	682	1,261
Income (loss) on sale of discontinued operations, net of income taxes		121		(933)
Income (loss) from discontinued operations	682	(223)	682	328
Net income	$ 4,102	$ 1,723	$ 8,350	$ 4,429
Basic income (loss) per share:
Continuing operations	$ 0.23	$ 0.11	$ 0.52	$ 0.23
Discontinued operations	0.05	(0.01)	0.05	0.02
Net income	0.28	0.10	0.57	0.25
Diluted income (loss) per share:
Continuing operations	0.23	0.11	0.52	0.23
Discontinued operations	0.05	(0.01)	0.05	0.02
Net income	$ 0.28	$ 0.10	$ 0.56	$ 0.25
Weighted average number of shares outstanding:
Basic	14,622	17,519	14,639	17,498
Diluted	14,914	17,632	14,871	17,575

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Net income	$ 4,102	$ 1,723	$ 8,350	$ 4,429
Other comprehensive income (loss), net of tax:
Unrealized holding gains on available-for-sale securities arising during the period	78	529	316	357
Reclassification adjustment for realized gains included in net income	(228)	(99)	(229)	(107)
Other comprehensive (loss) income	(150)	430	87	250
Comprehensive income	$ 3,952	$ 2,153	$ 8,437	$ 4,679

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 10, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

- Definition

Net of tax amount of the income statement impact of the reclassification adjustment for unrealized gain (loss) realized upon the sale of available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 24
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 18, 19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 10A
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 13
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 17, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 24
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph c(3)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Operating Activities:
Net income	$ 8,350	$ 4,429
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Income from discontinued operations	(682)	(1,261)
Loss on sale of discontinued operations		933
Depreciation and amortization	1,446	1,480
Stock-based compensation	1,238	1,533
Deferred taxes	172	(294)
Gain on sale of available-for-sale securities and strategic investments	(1,458)	(170)
Amortization of premium on held-to-maturity securities		31
Impairment loss on investments	129	804
Reduction of tax benefit from stock-based compensation plans	191
Other		11
Change in operating assets and liabilities:
Accounts receivable	158	(244)
Inventories	160	(484)
Prepaids and other	(191)	(174)
Accounts payable and accrued liabilities	(1,366)	(3,159)
Income taxes	(1,322)	2,739
Net cash provided by operating activities from continuing operations	6,825	6,174
Investing Activities:
Purchases of property and equipment	(1,239)	(269)
Purchases of available-for-sale securities	(26,091)	(34,728)
Sales and maturities of available-for-sale securities	25,980	34,554
Maturities of held-to-maturity securities		3,000
Cash received from sale of strategic investments	2,286
Cash (transferred to) received from discontinued operations	(86)	28,189
Net cash provided by investing activities from continuing operations	850	30,746
Financing Activities:
Reduction of tax benefit from stock-based compensation plans	(191)
Issuance of common stock	233	217
Repurchase of common stock	(2,681)
Purchase of common stock to pay employee taxes	(39)	(170)
Net cash (used in) provided by financing activities from continuing operations	(2,678)	47
Net cash provided by continuing operations	4,997	36,967
Discontinued Operations:
Net cash used in operating activities	(86)	(1,627)
Net cash provided by investing activities		29,816
Net cash provided by (used in) financing activities	86	(28,189)
Net cash provided by discontinued operations
Net change in cash and cash equivalents	4,997	36,967
Cash and Cash Equivalents:
Beginning of period	15,540	23,217
End of period	20,537	60,184
Supplemental Information:
Cash paid for income taxes	3,945	28
Noncash transactions - acquisition of property and equipment on account	$ 7	$ 102

Basis of Presentation

6 Months Ended

Mar. 31, 2013

Basis of Presentation

1. Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”) and, in the opinion of management, reflect all adjustments, consisting solely of normal recurring adjustments, needed to fairly present the financial results of SurModics, Inc. and subsidiaries (“SurModics” or the “Company”) for the periods presented. These financial statements include some amounts that are based on management’s best estimates and judgments. These estimates may be adjusted as more information becomes available, and any adjustment could be significant. The impact of any change in estimates is included in the determination of earnings in the period in which the change in estimate is identified. The results of operations for the three and six months ended March 31, 2013 are not necessarily indicative of the results that may be expected for the entire 2013 fiscal year.

In accordance with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”), the Company has omitted footnote disclosures that would substantially duplicate the disclosures contained in the audited financial statements of the Company. These unaudited condensed consolidated financial statements should be read together with the audited consolidated financial statements for the fiscal year ended September 30, 2012, and footnotes thereto included in the Company’s Form 10-K as filed with the SEC on December 14, 2012.

Certain items in the condensed consolidated statement of cash flows for the six months ended March 31, 2012 have been reclassified to conform to the current period presentation.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2134480

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2209116

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2122150

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-URI http://asc.fasb.org/subtopic&trid=2197480

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=7880789&loc=SL6228881-111685

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 272
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 720
-SubTopic 15
-URI http://asc.fasb.org/subtopic&trid=2122524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7668296&loc=d3e288-107754

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 915
-SubTopic 235
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6472506&loc=d3e38932-110933

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 46R
-Paragraph 4, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS140-4/FIN46(R)-8
-Paragraph 8, C1, C7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Key Accounting Policies

6 Months Ended

Mar. 31, 2013

Key Accounting Policies

2. Key Accounting Policies

Revenue recognition

The Company recognizes revenue when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) shipment has occurred or delivery has occurred if the terms specify destination; (3) the sales price is fixed or determinable; and (4) collectability is reasonably assured. When there are additional performance requirements, revenue is recognized when all such requirements have been satisfied. Under revenue arrangements with multiple deliverables, the Company recognizes each separable deliverable as it is earned.

The Company derives its revenue from three primary sources: (1) royalties and license fees from licensing its proprietary drug delivery and surface modification technologies and in vitro diagnostic formats to customers; (2) the sale of reagent chemicals to licensees and the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets; and (3) research and development fees generated on customer projects.

Royalties and license fees. The Company licenses technology to third parties and collects royalties. Royalty revenue is generated when a customer sells products incorporating the Company’s licensed technologies. Royalty revenue is recognized as licensees report it to the Company, and payment is typically submitted concurrently with the report. For stand-alone license agreements, up-front license fees are recognized over the term of the related licensing agreement. Minimum royalty fees are recognized in the period earned.

Revenue related to a performance milestone is recognized upon the achievement of the milestone, as defined in the respective agreements and provided the following conditions have been met:

•

The milestone payment is non-refundable;

•

The milestone involved a significant degree of risk, and was not reasonably assured at the inception of the arrangement;

•

Accomplishment of the milestone involved substantial effort;

•

The amount of the milestone payment is commensurate with the related effort and risk; and

•

A reasonable amount of time passed between the initial license payment and the first and subsequent milestone payments.

If these conditions have not been met, the milestone payment is deferred and recognized over the term of the agreement.

Product sales. Product sales to third parties are recognized at the time of shipment, provided that an order has been received, the price is fixed or determinable, collectability of the resulting receivable is reasonably assured and returns can be reasonably estimated. The Company’s sales terms provide no right of return outside of the standard warranty policy. Payment terms are generally set at 30-45 days.

Research and development. The Company performs third party research and development activities, which are typically provided on a time and materials basis. Generally, revenue for research and development is recorded as performance progresses under the applicable contract.

New Accounting Pronouncements

Recently Adopted

In February 2013, the Financial Accounting Standards Board (“FASB”) issued final guidance on reporting amounts reclassified out of accumulated other comprehensive income. The guidance requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income or to other balance sheet accounts as appropriate. The new guidance is effective prospectively for reporting periods beginning after December 15, 2012, with early adoption permitted. SurModics elected to early adopt the guidance in the second quarter of fiscal 2013. Since the new guidance only relates to presentation, its adoption did not impact the Company’s financial position, results of operations, or cash flows. See Note 13 for further information.

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s consolidated financial statements.

Discontinued Operations

6 Months Ended

Mar. 31, 2013

Discontinued Operations

3. Discontinued Operations

Beginning in the first quarter of fiscal 2012, the results of operations, cash flows, assets and liabilities of SurModics Pharmaceuticals, Inc. (“SurModics Pharmaceuticals”), which were previously reported in the Pharmaceuticals segment as a separate operating segment, are classified as discontinued operations.

On November 1, 2011, the Company entered into a definitive agreement (the “Purchase Agreement”) to sell substantially all of the assets of its wholly-owned subsidiary, SurModics Pharmaceuticals, to Evonik Degussa Corporation (“Evonik”). Under the terms of the Purchase Agreement, the entire portfolio of products and services of SurModics Pharmaceuticals, including the Company’s Current Good Manufacturing Practices (“cGMP”) development and manufacturing facility located in Birmingham, Alabama, were sold. The Company retained all accounts receivable and the majority of liabilities associated with SurModics Pharmaceuticals incurred prior to closing. The sale (the “Pharma Sale”) closed on November 17, 2011. The total consideration received from the Pharma Sale was $30.0 million in cash. As part of the Pharma Sale, SurModics agreed not to compete in the restricted business (as defined in the Purchase Agreement) for a period of five years and to indemnify Evonik against specified losses, in connection with SurModics Pharmaceuticals, including certain contingent consideration obligations related to the acquisition by SurModics Pharmaceuticals of the portfolio of intellectual property and drug delivery projects from PR Pharmaceuticals, Inc. (“PR Pharma”). SurModics retained responsibility for repayment obligations related to an agreement with various governmental authorities associated with creation of jobs in Alabama. Substantially all of these obligations were settled in the second quarter of fiscal 2013 and the remainder was settled in April 2013. The foregoing summary of the Purchase Agreement is qualified in its entirety by reference to the full text of the Purchase Agreement, which is attached as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed on November 7, 2011. Refer to the Purchase Agreement for more details on the Pharma Sale.

The following is a summary of the operating results of SurModics Pharmaceuticals discontinued operations for the three and six months ended March 31, 2013 and 2012 (in thousands):


	Three months ended						Six months ended
	March 31,						March 31,
	2013			2012			2013			2012
Total revenue	$	—		$	—		$	—		$	5,311

Income (loss) from discontinued operations	$	1,015		$	(221	)	$	1,015		$	2,309
Income tax provision		(333	)		(123	)		(333	)		(1,048	)

Income (loss) from discontinued operations, net of income taxes	$	682		$	(344	)	$	682		$	1,261

Income (loss) on sale of discontinued operations	$	—		$	26		$	—		$	(1,634	)
Income tax benefit		—			95			—			701

Income (loss) on sale of discontinued operations, net of income taxes	$	—		$	121		$	—		$	(933	)

The major classes of assets and liabilities of discontinued operations as of March 31, 2013 and September 30, 2012 were as follows (in thousands):


	March 31,		September 30,
	2013		2012
Accounts receivable, net	$	—	$	283
Other current assets		129		600

Current assets of discontinued operations		129		883

Total assets of discontinued operations	$	129	$	883

Other current liabilities payable	$	271	$	1,640

Current liabilities of discontinued operations		271		1,640

Total liabilities of discontinued operations	$	271	$	1,640

As part of the Pharma Sale, the Company recorded a loss on the sale in the first six months of fiscal 2012 of $1.6 million ($0.9 million net of income tax benefit), which was principally related to transaction closing costs. The loss is included in “Income (loss) on sale of discontinued operations” in the condensed consolidated statements of income.

On January 29, 2013, the Company entered into a settlement agreement with the City of Birmingham, Alabama to pay $325,000 in settlement of $1.5 million of the $1.7 million retained liability that existed at December 31, 2012, associated with financial incentives SurModics Pharmaceuticals received from various Alabama governmental authorities related to creation of jobs in Alabama. The Company paid the $325,000 and recorded a gain in discontinued operations of $1.2 million before taxes in the second quarter of fiscal 2013 related to this settlement.

The assets and liabilities of discontinued operations as of March 31, 2013 are mainly associated with deferred tax assets and the remaining $0.2 million retained liability with the State of Alabama related to creation of jobs in Alabama. On April 17, 2013, the Company and the State of Alabama entered into a termination agreement which did not require the Company to repay the $0.2 million retained liability. The Company expects to record a gain in discontinued operations of $0.2 million before taxes in the third quarter of fiscal 2013 related to this termination. See Note 15 for further discussion of the Alabama jobs commitment liability.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 45
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2443-110228

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43-48
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements

6 Months Ended

Mar. 31, 2013

Fair Value Measurements

4. Fair Value Measurements

The accounting guidance on fair value measurements defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. The guidance is applicable for all financial assets and financial liabilities and for all nonfinancial assets and nonfinancial liabilities recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the exchange price that would be received from selling an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance.

Fair Value Hierarchy

Accounting guidance on fair value measurements requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:

Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities.

The Company’s Level 1 asset consisted of its investment in OctoPlus N.V. (“OctoPlus”) (see Note 7 for further information). The fair market value of this investment was based on the quoted price of OctoPlus shares as traded on the Euronext Amsterdam Stock Exchange. This investment was sold in the second quarter of fiscal 2013.

Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

The Company’s Level 2 assets consist of money market funds, U.S. Treasury securities, corporate bonds, municipal bonds, U.S. government agency securities, government agency and municipal securities and certain asset-backed and mortgage-backed securities. Fair market values for these assets are based on quoted vendor prices and broker pricing where all significant inputs are observable.

Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.

There were no Level 3 assets at March 31, 2013, December 31, 2012, September 30, 2012, March 31, 2012 or December 31, 2011 and there was no Level 3 activity during the first six months of fiscal 2013 or the second quarter of fiscal 2012.

In valuing assets and liabilities, the Company is required to maximize the use of quoted market prices and minimize the use of unobservable inputs. The Company did not significantly change its valuation techniques from prior periods.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2013 (in thousands):


	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of March 31, 2013
Assets:
Cash equivalents	$	—	$	9,802	$	—	$	9,802
Available-for-sale debt securities:
U.S. government and government agency obligations		—		34,377		—		34,377
Mortgage-backed securities		—		2,601		—		2,601
Municipal bonds		—		3,447		—		3,447
Asset-backed securities		—		532		—		532
Corporate bonds		—		1,696		—		1,696

Total assets measured at fair value	$	—	$	52,455	$	—	$	52,455

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 (in thousands):


	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of September 30, 2012
Assets:
Cash equivalents	$	—	$	5,101	$	—	$	5,101
Available-for-sale debt securities:
U.S. government and government agency obligations		—		28,854		—		28,854
Mortgage-backed securities		—		2,999		—		2,999
Municipal bonds		—		3,213		—		3,213
Asset-backed securities		—		598		—		598
Corporate bonds		—		6,886		—		6,886
Other assets		718		—		—		718

Total assets measured at fair value	$	718	$	47,651	$	—	$	48,369

Valuation Techniques

The valuation techniques used to measure the fair value of assets are as follows:

Cash equivalents — These assets are classified as Level 2 and are carried at historical cost which is a reasonable estimate of fair value because of the relatively short time between origination of the instrument and its expected realization.

Available-for-sale debt securities — These securities are classified as Level 2 and include various types of debt securities. These securities are valued based on quoted vendor prices in active markets underlying the securities.

Other assets — This asset is classified as Level 1 and represented the Company’s investment in OctoPlus. This investment was valued based on the quoted market price of OctoPlus shares.

Changes in Level 3 Instruments Measured at Fair Value on a Recurring Basis

The following tables provide a reconciliation of financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands). Transfers of instruments into and out of Level 3 are based on beginning of period values.


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Six Months Ended March 31, 2012 Available-for-Sale Debt Securities
	Mortgage- Backed Securities			Asset- Backed Securities			Total
Balance at September 30, 2011	$	15		$	9		$	24
Transfers into Level 3		—			—			—
Transfers out of Level 3		(15	)		(9	)		(24	)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		—			—			—
Purchases, issuances, sales and settlements, net		—			—			—

Balance at March 31, 2012	$	—		$	—		$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Investments

6 Months Ended

Mar. 31, 2013

Investments

5. Investments

Investments consist principally of U.S. government and government agency obligations, mortgage-backed securities and corporate and municipal debt securities and are classified as available-for-sale at March 31, 2013 and September 30, 2012. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the condensed consolidated statements of income and reported in the condensed consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the condensed consolidated balance sheets, except for other-than-temporary impairments, which are reported as a charge to current earnings. A loss would be recognized when there is an other-than-temporary impairment in the fair value of any individual security classified as available-for-sale, with the associated net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income (loss). This adjustment results in a new cost basis for the investment. Investments for which management has the intent and ability to hold to maturity are classified as held-to-maturity and reported at amortized cost. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income (loss). Realized gains and losses from the sales of debt securities, which are included in other income (loss), are determined using the specific identification method.

The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of March 31, 2013 and September 30, 2012 were as follows (in thousands):


	March 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	34,318	$	59	$	—		$	34,377
Mortgage-backed securities		2,513		112		(24	)		2,601
Municipal bonds		3,421		27		(1	)		3,447
Asset-backed securities		537		—		(5	)		532
Corporate bonds		1,673		23		—			1,696

Total	$	42,462	$	221	$	(30	)	$	42,653


	September 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	28,641	$	213	$	—		$	28,854
Mortgage-backed securities		2,896		129		(26	)		2,999
Municipal bonds		3,178		35		—			3,213
Asset-backed securities		613		—		(15	)		598
Corporate bonds		6,858		28		—			6,886

Total	$	42,186	$	405	$	(41	)	$	42,550

As of March 31, 2013, the Company concluded that the unrealized losses related to the available-for-sale securities shown above were not other-than-temporary as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of their amortized cost.

The amortized cost and fair value of investments by contractual maturity at March 31, 2013 were as follows (in thousands):


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	15,132	$	15,147
One to five years		23,951		24,040
Five years or more		3,379		3,466

Total	$	42,462	$	42,653

The following table summarizes sales of available-for-sale securities (in thousands):


	Three months ended					Six months ended
	March 31,					March 31,
	2013		2012			2013		2012
Proceeds from sales	$	25,175	$	31,913		$	25,980	$	34,554
Gross realized gains	$	161	$	163		$	165	$	171
Gross realized losses	$	—	$	(1	)	$	—	$	(1	)

During the second quarter of fiscal 2012, all remaining held-to-maturity debt securities matured.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Inventories

6 Months Ended

Mar. 31, 2013

Inventories

6. Inventories

Inventories are principally stated at the lower of cost or market using the specific identification method and include direct labor, materials and overhead. Inventories consisted of the following components (in thousands):


	March 31,		September 30,
	2013		2012
Raw materials	$	1,354	$	1,479
Finished products		2,010		2,045

Total	$	3,364	$	3,524

Other Assets

6 Months Ended

Mar. 31, 2013

Other Assets

7. Other Assets

Other assets consist principally of strategic investments as follows (in thousands):


	March 31,		September 30,
	2013		2012
OctoPlus N.V.	$	—	$	718
Nexeon MedSystems, Inc.		29		29
CeloNova BioSciences, Inc.		1,500		1,500
ThermopeutiX, Inc.		1,185		1,185
ViaCyte, Inc.		429		559
Other		2		84

Other assets, net	$	3,145	$	4,075

The Company accounts for all of its strategic investments under the cost method as of March 31, 2013. The Company accounted for its investment in OctoPlus common stock, whose shares were traded on the Euronext Amsterdam Stock Exchange, as an available-for-sale investment. Available-for-sale investments are reported at fair value with unrealized gains and losses, net of tax, reported in the condensed consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the condensed consolidated balance sheets, except for other-than-temporary impairments, which are reported as a charge to current earnings, recorded in the other income section of the condensed consolidated statements of income, and which result in a new cost basis for the investment. The cost basis in the Company’s investment in OctoPlus was $0.9 million as of September 30, 2012. In October 2012 OctoPlus received a tender offer from Dr. Reddy’s Laboratories Ltd. to purchase all issued and outstanding ordinary shares of OctoPlus at an offer price of €0.52 per share. In the second quarter of fiscal 2013, the Company sold its investment and recorded a pre-tax gain of approximately $0.1 million.

The Company has invested a total of $6.5 million in Nexeon MedSystems, Inc. (“Nexeon”), a privately-held West Virginia-based medical technology company, commencing in July 2007 and has recognized losses under the equity method of accounting and a $4.1 million impairment loss in fiscal 2010. Currently, the Company accounts for its investment in Nexeon under the cost method of accounting as the Company’s ownership is less than 20%, and the Company does not exert significant influence over Nexeon’s operating or financial activities.

In February 2011, Nexeon’s stent technology was acquired by CeloNova BioSciences, Inc. (“CeloNova”). Prior to the acquisition by CeloNova, Nexeon created a wholly-owned subsidiary, Nexeon Stent, to hold the company’s stent-related assets. Nexeon distributed to its stockholders the Nexeon Stent stock which was exchanged for Series B-1 preferred shares of CeloNova. CeloNova is a privately-held Texas-based medical technology company that is marketing a variety of medical products. See further discussion of the CeloNova transaction in Note 16. The Company’s investment in CeloNova, which is accounted for under the cost method, represents less than a 5% ownership interest. The Company does not exert significant influence over CeloNova’s operating or financial activities.

The Company has invested a total of $5.2 million in ViaCyte, Inc. (“ViaCyte”), a privately-held California-based biotechnology firm that is developing a unique treatment for diabetes using coated islet cells, the cells that produce insulin in the human body. In fiscal 2006, the Company determined that its investment in ViaCyte was impaired and that the impairment was other than temporary. Accordingly, the Company recorded an impairment loss of $4.7 million. In the second quarter of fiscal 2013, the Company recorded an additional other-than-temporary impairment loss on this investment totaling $0.1 million based on a current financing round and market valuations. The balance of the investment of $0.4 million, which is accounted for under the cost method, represents less than a 5% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities.

In August 2009, the Company invested $2.0 million in Vessix Vascular, Inc. (“Vessix”), and made a follow-on investment of $0.5 million in March 2010. The Company recognized an impairment loss on this investment totaling $2.4 million in fiscal 2010, based on market valuations and a pending financing round for this company. Vessix was purchased by Boston Scientific Corporation in November 2012. The Company recorded a gain of approximately $1.2 million in other income, net, on the sale of this investment in the first quarter of fiscal 2013. Total potential maximum additional proceeds of $4.2 million may be received in the remainder of fiscal 2013 through fiscal 2017 depending on Vessix’s achievement of future milestones. No amounts have been recorded associated with these future milestones given the level of uncertainty that exists. Any potential additional income will be recognized once the milestones are achieved.

The Company recognized revenue of less than $0.1 million for the three months ended March 31, 2013 and for each of the three and six months ended March 31, 2012, from activity with companies in which it had a strategic investment. The Company recognized revenue of approximately $0.1 million for the six months ended March 31, 2013, from activity with companies in which it had a strategic investment.

Intangible Assets

6 Months Ended

Mar. 31, 2013

Intangible Assets

8. Intangible Assets

Intangible assets consist principally of acquired patents and technology, customer relationships, licenses and trademarks. For the three months ended March 31, 2013 and 2012, the Company recorded amortization expense of $0.2 million for each period. For the six months ended March 31, 2013 and 2012, the Company recorded amortization expense of $0.4 million for each period.

Intangible assets consisted of the following (in thousands):


	March 31, 2013
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(3,004	)	$	1,853
Core technology		8.0		530		(375	)		155
Patents and other		16.8		2,256		(784	)		1,472

Subtotal				7,643		(4,163	)		3,480
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(4,163	)	$	4,060


	September 30, 2012
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,734	)	$	2,123
Core technology		8.0		530		(343	)		187
Patents and other		16.8		2,256		(716	)		1,540

Subtotal				7,643		(3,793	)		3,850
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(3,793	)	$	4,430

Based on the intangible assets in service as of March 31, 2013, estimated amortization expense for each of the next five fiscal years is as follows (in thousands):


Remainder of 2013	$	371
2014		742
2015		731
2016		594
2017		183
2018		137

Future amortization amounts presented above are estimates. Actual future amortization expense may be different, as a result of future acquisitions, impairments, changes in amortization periods, or other factors.

Goodwill

6 Months Ended

Mar. 31, 2013

Goodwill

9. Goodwill

Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to the assets purchased and liabilities assumed in connection with a company’s acquisition. Goodwill is not amortized but is subject, at a minimum, to annual tests for impairment in accordance with accounting guidance for goodwill. The carrying amount of goodwill is evaluated annually, and between annual evaluations if events occur or circumstances change indicating that the carrying amount of goodwill may be impaired.

The $8.0 million of goodwill at March 31, 2013 and September 30, 2012 is related to the In Vitro Diagnostics reporting unit and represents the gross value from the acquisition of BioFX Laboratories, Inc. in 2007. The goodwill was not impaired based on the outcome of the fiscal 2012 annual impairment test, and there have been no events or circumstances that have occurred in fiscal 2013 to indicate that the goodwill may be impaired.

Stock-based Compensation

6 Months Ended

Mar. 31, 2013

Stock-based Compensation

10. Stock-based Compensation

The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, performance share awards and restricted stock units. Accounting guidance requires all share-based payments to be recognized as an operating expense, based on their fair values, over the requisite service period. The Company’s stock-based compensation expenses were allocated to the following expense categories (in thousands):


	Three months ended March 31,				Six months ended March 31,
	2013		2012		2013		2012
Product costs	$	7	$	11	$	10	$	26
Research and development		64		161		87		382
Selling, general and administrative		775		468		1,141		1,125

Total	$	846	$	640	$	1,238	$	1,533

As of March 31, 2013, approximately $4.6 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.7 years. The unrecognized compensation costs above include $1.6 million based on payout levels associated with performance share awards that are currently anticipated to be fully expensed because the performance conditions are expected to be met at or above target levels.

Stock Option Awards

The Company uses the Black-Scholes option pricing model to determine the weighted average grant date fair value of stock options granted. The weighted average per share fair values of stock options granted during the three months ended March 31, 2013 and 2012 were $9.99 and $5.95, respectively. The weighted average per share fair values of stock options granted during the six months ended March 31, 2013 and 2012 were $8.69 and $5.24, respectively. The assumptions used as inputs in the model were as follows:


	Three months ended						Six months ended
	March 31,						March 31,
	2013			2012			2013			2012
Risk-free interest rates		0.7	%		0.7	%		0.6	%		0.8	%
Expected life (years)		4.8			4.8			4.8			4.8
Expected volatility		49.1	%		49.6	%		49.2	%		49.6	%
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%

The risk-free interest rate assumption was based on the U.S. Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award. The expected life of options granted is determined based on the Company’s experience. Expected volatility is based on the Company’s stock price movement over a period approximating the expected term. Based on management’s judgment, dividend rates are expected to be zero for the expected life of the options. The Company also estimates forfeitures of options granted, which are based on historical experience.

Non-qualified stock options are granted at fair market value on the grant date. Non-qualified stock options expire in seven to ten years or upon termination of employment or service as a Board member. Non-qualified stock options granted prior to May 2008 generally become exercisable with respect to 20% of the shares on each of the first five anniversaries following the grant date, and non-qualified stock options granted subsequent to April 2008 generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date.

The total pre-tax intrinsic value of options exercised during the three and six months ended March 31, 2013 was $49,000 and $69,000, respectively. The total pre-tax intrinsic value of options exercised during each of the three and six months ended March 31, 2012 was $49,000. The intrinsic value represents the difference between the exercise price and the fair market value of the Company’s common stock on the last day of the respective fiscal period end.

Restricted Stock Awards

The Company has entered into restricted stock agreements with certain key employees, covering the issuance of common stock (“Restricted Stock”). Under accounting guidance these shares are considered to be non-vested shares. The Restricted Stock is released to the key employees if they are employed by the Company at the end of the vesting period. Compensation has been recognized for the estimated fair value of the common shares and is being charged to income over the vesting term. The stock-based compensation table above includes Restricted Stock expenses recognized related to these awards, which totaled less than $0.1 million during the three and six months ended March 31, 2013 and less than $0.1 million and $0.2 million during the three and six months ended March 31, 2012, respectively.

Performance Share Awards

The Company has entered into performance share agreements with certain key employees, covering the issuance of common stock (“Performance Shares”). The Performance Shares vest upon the achievement of all or a portion of certain performance objectives, which must be achieved during the performance period. Performance objectives selected by the Organization and Compensation Committee of the Board of Directors (the “Committee”) were cumulative earnings per share and cumulative revenue for the three-year performance periods for fiscal 2011 beginning on October 1, 2010 and ending on September 30, 2013 (68,533 shares at target), for fiscal 2012 beginning on October 1, 2011 and ending on September 30, 2014 (62,497 shares at target), and for fiscal 2013 beginning on October 1, 2012 and ending on September 30, 2015 (42,753 shares at target). The number of shares that may actually vest will vary based on performance from 20% (minimum) to 200% (maximum). Shares will be issued to participants as soon as practicable following the end of the performance periods subject to Committee approval and verification of results. The compensation cost related to the number of shares to be granted under each performance period is fixed on the grant date, which is the date the performance period begins. Compensation is recognized in each period based on management’s best estimate of the achievement level of the grants’ specified performance objectives. For the three and six months ended March 31, 2013, the Company recognized expenses of $0.4 million and $0.6 million, respectively, related to probable achievement of performance objectives for Performance Shares. The Company recognized expenses of $0.1 million and $0.3 million related to probable achievement of performance objectives for Performance Shares for the three and six months ended March 31, 2012, respectively. The stock-based compensation table above includes the Performance Shares expenses.

1999 Employee Stock Purchase Plan

Under the 1999 Employee Stock Purchase Plan (“Stock Purchase Plan”), the Company is authorized to issue up to 400,000 shares of common stock. All full-time and part-time employees can choose to have up to 10% of their annual compensation withheld, with a limit of $25,000, to purchase the Company’s common stock at purchase prices defined within the provisions of the Stock Purchase Plan. As of March 31, 2013 and 2012, there were less than $0.1 million of employee contributions in each period included in accrued liabilities in the condensed consolidated balance sheets. Stock compensation expense recognized related to the Stock Purchase Plan for the three and six months ended March 31, 2013 and 2012 totaled less than $0.1 million in each period. The stock-based compensation table above includes the Stock Purchase Plan expenses.

Restricted Stock Units

On December 12, 2012, the Company awarded 11,776 restricted stock units (“RSU”) under the 2009 Equity Incentive Plan to directors. The RSU awards vest annually at a rate of 33%. RSU awards are not considered issued or outstanding common stock of the Company until they vest. The estimated fair value of the RSU awards was calculated based on the closing market price of SurModics’ common stock on the date of grant. Compensation has been recognized for the estimated fair value of the common shares and is being charged to income over the vesting term. Directors can also elect to receive their annual fees for services to the Board in RSUs. Certain directors elected this option beginning on January 1, 2013 which resulted in 1,691 units issued with a value of $46,000. These RSUs are fully vested. The stock-based compensation table above includes RSU expenses recognized related to these awards, which totaled less than $0.1 million in each period during the three and six months ended March 31, 2013.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income (Loss) Per Share Data

6 Months Ended

Mar. 31, 2013

Income (Loss) Per Share Data

11. Income (Loss) Per Share Data

Basic income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted income per common share is computed by dividing income by the weighted average number of common and common equivalent shares outstanding during the period. The Company’s only potentially dilutive common shares are those that result from dilutive common stock options, non-vested stock relating to restricted stock awards, restricted stock units and performance shares.

The following table sets forth the components of the basic and diluted income per share computations (in thousands):


	Three months ended				Six months ended
	March 31,				March 31,
	2013		2012		2013		2012
Net income from continuing operations available to common shareholders	$	3,420	$	1,946	$	7,668	$	4,101

Basic weighted average shares outstanding		14,622		17,519		14,639		17,498
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares		292		113		232		77

Diluted weighted average shares outstanding		14,914		17,632		14,871		17,575

The calculation of weighted average diluted shares outstanding excludes outstanding stock options associated with the right to purchase 0.3 million and 0.7 million shares of common stock for the three months ended March 31, 2013 and 2012, respectively, and 0.5 million and 0.7 million for the six months ended March 31, 2013 and 2012, respectively, as their inclusion would have had an antidilutive effect on diluted income per share.

Income Taxes

6 Months Ended

Mar. 31, 2013

Income Taxes

12. Income Taxes

The Company recorded income tax provisions associated with income from continuing operations of $0.9 million and $1.2 million for the three months ended March 31, 2013 and 2012, respectively, representing effective tax rates of 21.2% and 39.0%, respectively. The Company recorded income tax provisions associated with income from continuing operations of $2.8 million and $2.5 million for the six months ended March 31, 2013 and 2012, respectively, representing effective tax rates of 26.7% and 37.5%, respectively. The difference between the U.S. federal statutory tax rate of 35.0% and the Company’s effective tax rate for the three and six months ended March 31, 2013 and 2012 reflects the impact of state income taxes, permanent tax items and discrete tax benefits of $0.4 million and $0.6 million for the three and six months ended March 31, 2013, respectively. Discrete tax items primarily relate to capital loss carrybacks and the January 2013 signing of the American Taxpayer Relief Act of 2012 which retroactively reinstated the U.S. R&D tax credit to the beginning of calendar 2012. The six months ended March 31, 2013 also reflects the impact of gains on the sale of Vessix, OctoPlus and certain debt securities in our available-for-sale investment portfolio for which there is tax expense recognized which has been offset by the reversal of valuation allowances.

The Company recorded an income tax expense from discontinued operations of $0.3 million for the three and six months ended March 31, 2013. The Company recorded an income tax expense from discontinued operations of $0.1 million and $1.0 million for the three and six months ended March 31, 2012, respectively. The Company recorded an income tax benefit of $0.1 million and $0.7 million from the sale of discontinued operations for the three and six months ended March 31, 2012, respectively. The effective tax rate applied to discontinued operations was 32.8% for the three and six months ended March 31, 2013. The effective tax rate applied to discontinued operations was 14.4% and 51.4% for the three and six months ended March 31, 2012, respectively.

The total amount of unrecognized tax benefits including interest and penalties that, if recognized, would affect the effective tax rate as of March 31, 2013 and September 30, 2012, respectively, are $1.4 million for each period. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months with the above balances classified on the condensed consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense.

The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service (“IRS”) commenced an examination of the Company’s U.S. income tax return for fiscal 2010 in the first quarter of fiscal 2012. The IRS completed its examination in the third quarter of fiscal 2012 and a payment was made in the fourth quarter of fiscal 2012 associated with a timing adjustment. U.S. income tax returns for years prior to fiscal 2009 are no longer subject to examination by federal tax authorities. Tax returns for state and local jurisdictions for fiscal years 2004 through 2011 remain subject to examination by state and local tax authorities.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Amounts Reclassified Out of Accumulated Other Comprehensive Income

6 Months Ended

Mar. 31, 2013

Amounts Reclassified Out of Accumulated Other Comprehensive Income

13. Amounts Reclassified Out of Accumulated Other Comprehensive Income

Accounting guidance was updated in February 2013 adding new disclosure for items reclassified out of accumulated other comprehensive income (“AOCI”). The new disclosure requirements are effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2012. Early adoption of the guidance is permitted and the Company elected to early adopt this guidance.

Amounts reclassified out of AOCI totaled $0.3 million on a pre-tax basis for each of the three and six months ended March 31, 2013. The amounts reclassified out of AOCI are associated with unrealized gains on available-for-sale securities that were realized on the sale of the securities and are presented in other income, net in the condensed consolidated statements of income.

Operating Segments

6 Months Ended

Mar. 31, 2013

Operating Segments

14. Operating Segments

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, who is the Company’s Chief Executive Officer, in deciding how to allocate resources and in assessing performance. The Company is organized into two segments as follows: (1) the Medical Device unit, which is comprised of surface modification coating technologies to improve access, deliverability, and predictable deployment of medical devices, as well as drug delivery coating technologies to provide site-specific drug delivery from the surface of a medical device, with end markets that include coronary, peripheral, and neuro-vascular, and urology, among others, and (2) the In Vitro Diagnostics unit, which consists of component products and technologies for diagnostic test kits and biomedical research applications, with products that include protein stabilization reagents, substrates, antigens and surface coatings.

The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, as follows (in thousands):


	Three months ended						Six months ended
	March 31,						March 31,
	2013			2012			2013			2012
Revenue:
Medical Device	$	9,735		$	8,753		$	20,266		$	17,620
In Vitro Diagnostics		3,960			3,457			7,280			6,506

Total revenue	$	13,695		$	12,210		$	27,546		$	24,126

Operating income (loss):
Medical Device	$	4,785		$	4,121		$	10,625		$	8,053
In Vitro Diagnostics		1,267			1,271			2,018			2,177

Total segment operating income		6,052			5,392			12,643			10,230
Corporate		(1,923	)		(1,703	)		(3,637	)		(3,319	)

Total operating income from continuing operations	$	4,129		$	3,689		$	9,006		$	6,911

Depreciation and amortization:
Medical Device	$	311		$	354		$	628		$	718
In Vitro Diagnostics		218			194			433			389
Corporate		195			183			385			373

Total depreciation and amortization	$	724		$	731		$	1,446		$	1,480

The Corporate category includes expenses for administrative corporate functions, such as executive, corporate accounting, legal, human resources and Board related, that have not been fully allocated to the Medical Device and In Vitro Diagnostics segments. Corporate also includes expenses, such as litigation, which are not specific to a segment.

Asset information by segment is not presented because the Company does not provide its chief operating decision maker assets by segment, as the data is not readily available.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments and Contingencies

6 Months Ended

Mar. 31, 2013

Commitments and Contingencies

15. Commitments and Contingencies

Litigation. From time to time, the Company has been, and may become, involved in various legal actions involving its operations, products and technologies, including intellectual property and employment disputes. The outcomes of these legal actions are not within the Company’s complete control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, including injunctions barring the sale of products that are the subject of the lawsuit, which, if granted, could require significant expenditures or result in lost revenue. The Company records a liability in the consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded.

Southern Research Institute (“SRI”) Litigation. On July 31, 2009, the Company’s SurModics Pharmaceuticals subsidiary was named as a defendant in litigation pending in the circuit court of Jefferson County, Alabama, between SRI and two of SRI’s former employees (the “Plaintiffs”). In the litigation, the Plaintiffs allege that they contributed to or invented certain intellectual property while they were employed at SRI, and pursuant to SRI’s policies then in effect, they are entitled to, among other things, a portion of the purchase price consideration paid by the Company to SRI as part of the Company’s acquisition of SurModics Pharmaceuticals pursuant to a stock purchase agreement made effective on July 31, 2007 (the “Stock Purchase Agreement”). The Plaintiffs have also alleged that they are entitled to a portion of the intellectual property income derived from license agreements with certain customers of SurModics Pharmaceuticals that make use of patents to which the Plaintiffs invented or contributed. A trial has not yet been scheduled. Based on the facts known to date, the Company has recorded a $100,000 expense in discontinued operations in the second quarter of fiscal 2013. The Company has not recorded additional accruals as the probability of the outcome is currently not determinable and any potential loss is not estimable. The Company believes that it has meritorious defenses to the Plaintiff’s claims and will vigorously defend and prosecute this matter. Following the Pharma Sale, the Company remains responsible for this litigation and has agreed to indemnify Evonik against certain losses, including those that may be incurred in connection with this litigation.

Pursuant to the Stock Purchase Agreement, the Company has certain rights of indemnification against losses (including without limitation, damages, expenses and costs) incurred as a result of the litigation. The Company has recorded unreimbursed legal expenses totaling $1.0 million as of March 31, 2013, related to this litigation, within selling, general and administrative expenses from continuing operations in the condensed consolidated statements of income. In June of 2011, the Company sued SRI in United States District Court for the District of Minnesota seeking a judicial declaration regarding the scope of the Company’s indemnification rights under the Stock Purchase Agreement. On April 17, 2013, the District Court entered a judgment in the Company’s favor requiring SRI to indemnify the Company for prior and future legal expenditures related to this matter. The District Court’s decision is subject to appeal by SRI, and any cash received associated with the judgment will result in income from the recovery of expenses the Company has previously recognized.

InnoRx, Inc. In January 2005, the Company entered into a merger agreement whereby SurModics acquired all of the assets of InnoRx, Inc. (“InnoRx”), an early stage company developing drug delivery devices and therapies for the ophthalmology market. SurModics will be required to issue up to approximately 480,059 additional shares of its common stock to the stockholders of InnoRx upon the successful completion of the remaining development and commercial milestones involving InnoRx technology acquired in the transaction. The Company has not recorded any accrual for this contingency as of March 31, 2013 as the milestones have not been achieved and the probability of achievement is low.

PR Pharmaceuticals, Inc. In November 2008, the Company’s SurModics Pharmaceuticals subsidiary acquired certain contracts and assets of PR Pharma to enhance its portfolio of drug delivery technologies for the pharmaceutical and biotechnology industries. The Company agreed to indemnify Evonik, for a period of five years, for up to $2.5 million of contingent consideration obligations to the sellers of PR Pharma related to a future patent issuance milestone when it sold substantially all of the SurModics Pharmaceuticals assets to Evonik on November 17, 2011. The Company has not recorded any accrual for this contingency as of March 31, 2013 as the milestone has not been achieved and the probability of achievement is low.

Alabama Jobs Commitment. In April 2008, the Company purchased a 286,000 square foot office and warehouse facility to support cGMP needs of customers and the anticipated growth of SurModics Pharmaceuticals. At the same time, SurModics Pharmaceuticals entered into an agreement with various governmental authorities to obtain financial incentives associated with creation of jobs in Alabama. Some of the governmental agencies have recapture rights in connection with the financial incentives if a specific number of full-time employees were not hired by June 2012, with an extension to June 2013 if circumstances or events occurred that were beyond the control of SurModics Pharmaceuticals or could not have been reasonably anticipated by SurModics Pharmaceuticals. This liability was retained by the Company and did not transfer to Evonik as part of the Pharma Sale in November 2011. As of December 31, 2012, SurModics Pharmaceuticals had received $1.7 million in connection with the agreement.

On January 29, 2013, the Company entered into a settlement agreement with the City of Birmingham, Alabama to pay $325,000 in settlement of $1.5 million of the $1.7 million retained liability. The Company paid the $325,000 and recorded a gain in discontinued operations of $1.2 million before taxes in the second quarter of fiscal 2013 related to this settlement.

On April 17, 2013, the Company and the State of Alabama entered into a termination agreement which did not require the Company to repay the $0.2 million retained liability. The Company expects to record a gain in discontinued operations of $0.2 million before taxes in the third quarter of fiscal 2013 related to this termination. The termination agreement with the State of Alabama satisfies the remaining recapture rights that existed with the Alabama jobs commitment program.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Immaterial Restatement

6 Months Ended

Mar. 31, 2013

Immaterial Restatement

16. Immaterial Restatement

The accompanying unaudited interim condensed consolidated financial statements reflect a $1.2 million adjustment to increase the carrying value of the Company’s strategic investments, included in other assets, net and stockholders’ equity in the prior period condensed consolidated balance sheet. This adjustment corrects and reduces an other-than-temporary impairment charge recognized in the fiscal year ended September 30, 2010, which was previously recorded during the fiscal fourth quarter ended September 30, 2010. The original other-than-temporary impairment charge did not sufficiently consider information available to the Company prior to the issuance of the Company’s financial statements for the fiscal year ended September 30, 2010. Specifically, the impact of consideration to be received from the proposed sale of a subsidiary of a strategic investment to an unrelated third party had not been considered in evaluating the value of the strategic investment. Management has evaluated the amount and nature of the adjustment and concluded that it is not material to either the previously reported annual or quarterly financial statement results of operations, total assets or stockholders’ equity. Nonetheless, the Company has corrected the error associated with the historical balance sheet amounts included in this filing as follows (in thousands):

Condensed Consolidated Balance Sheet


	As Reported				As Restated
	September 30, 2012		Adjustment		September 30, 2012
Other assets, net	$	2,831	$	1,244	$	4,075
Total assets		103,075		1,244		104,319
Retained earnings		74,625		1,244		75,869
Total stockholders’ equity		93,744		1,244		94,988
Total liabilities and stockholders’ equity	$	103,075	$	1,244	$	104,319

There was no impact on the condensed consolidated statements of income for any of the prior periods presented in this filing. The Company also expects to correct previously presented historical financial statements in future filings, including the annual financial statements to be included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2013.

The condensed consolidated balance sheet above details the effect of the other-than-temporary impairment charge adjustment on previously presented historical financial statement amounts (in thousands) appearing in the Company’s 2012 Annual Report on Form 10-K.

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

+ References + Details

Key Accounting Policies (Policies)

6 Months Ended

Mar. 31, 2013

Revenue recognition

Revenue recognition

Royalties and license fees

Revenue related to a performance milestone is recognized upon the achievement of the milestone, as defined in the respective agreements and provided the following conditions have been met:

•

The milestone payment is non-refundable;

•

The milestone involved a significant degree of risk, and was not reasonably assured at the inception of the arrangement;

•

Accomplishment of the milestone involved substantial effort;

•

The amount of the milestone payment is commensurate with the related effort and risk; and

•

A reasonable amount of time passed between the initial license payment and the first and subsequent milestone payments.

If these conditions have not been met, the milestone payment is deferred and recognized over the term of the agreement.

Product sales

Research and development

New Accounting Pronouncements

New Accounting Pronouncements

Recently Adopted

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company’s consolidated financial statements.

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Discontinued Operations (Tables)

6 Months Ended

Mar. 31, 2013

Operating Results from Discontinued Operations

The following is a summary of the operating results of SurModics Pharmaceuticals discontinued operations for the three and six months ended March 31, 2013 and 2012 (in thousands):


	Three months ended						Six months ended
	March 31,						March 31,
	2013			2012			2013			2012
Total revenue	$	—		$	—		$	—		$	5,311

Income (loss) from discontinued operations	$	1,015		$	(221	)	$	1,015		$	2,309
Income tax provision		(333	)		(123	)		(333	)		(1,048	)

Income (loss) from discontinued operations, net of income taxes	$	682		$	(344	)	$	682		$	1,261

Income (loss) on sale of discontinued operations	$	—		$	26		$	—		$	(1,634	)
Income tax benefit		—			95			—			701

Income (loss) on sale of discontinued operations, net of income taxes	$	—		$	121		$	—		$	(933	)

Assets and Liabilities of Discontinued Operations

The major classes of assets and liabilities of discontinued operations as of March 31, 2013 and September 30, 2012 were as follows (in thousands):


	March 31,		September 30,
	2013		2012
Accounts receivable, net	$	—	$	283
Other current assets		129		600

Current assets of discontinued operations		129		883

Total assets of discontinued operations	$	129	$	883

Other current liabilities payable	$	271	$	1,640

Current liabilities of discontinued operations		271		1,640

Total liabilities of discontinued operations	$	271	$	1,640

Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2013

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2013 (in thousands):


	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of March 31, 2013
Assets:
Cash equivalents	$	—	$	9,802	$	—	$	9,802
Available-for-sale debt securities:
U.S. government and government agency obligations		—		34,377		—		34,377
Mortgage-backed securities		—		2,601		—		2,601
Municipal bonds		—		3,447		—		3,447
Asset-backed securities		—		532		—		532
Corporate bonds		—		1,696		—		1,696

Total assets measured at fair value	$	—	$	52,455	$	—	$	52,455

The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2012 (in thousands):


	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value as of September 30, 2012
Assets:
Cash equivalents	$	—	$	5,101	$	—	$	5,101
Available-for-sale debt securities:
U.S. government and government agency obligations		—		28,854		—		28,854
Mortgage-backed securities		—		2,999		—		2,999
Municipal bonds		—		3,213		—		3,213
Asset-backed securities		—		598		—		598
Corporate bonds		—		6,886		—		6,886
Other assets		718		—		—		718

Total assets measured at fair value	$	718	$	47,651	$	—	$	48,369

Reconciliation of Financial Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Six Months Ended March 31, 2012 Available-for-Sale Debt Securities
	Mortgage- Backed Securities			Asset- Backed Securities			Total
Balance at September 30, 2011	$	15		$	9		$	24
Transfers into Level 3		—			—			—
Transfers out of Level 3		(15	)		(9	)		(24	)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income		—			—			—
Purchases, issuances, sales and settlements, net		—			—			—

Balance at March 31, 2012	$	—		$	—		$	—

Investments (Tables)

6 Months Ended

Mar. 31, 2013

Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available-for-Sale Securities

The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of March 31, 2013 and September 30, 2012 were as follows (in thousands):


	March 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	34,318	$	59	$	—		$	34,377
Mortgage-backed securities		2,513		112		(24	)		2,601
Municipal bonds		3,421		27		(1	)		3,447
Asset-backed securities		537		—		(5	)		532
Corporate bonds		1,673		23		—			1,696

Total	$	42,462	$	221	$	(30	)	$	42,653


	September 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	28,641	$	213	$	—		$	28,854
Mortgage-backed securities		2,896		129		(26	)		2,999
Municipal bonds		3,178		35		—			3,213
Asset-backed securities		613		—		(15	)		598
Corporate bonds		6,858		28		—			6,886

Total	$	42,186	$	405	$	(41	)	$	42,550

Amortized Cost and Fair Value of Investments by Contractual Maturity

The amortized cost and fair value of investments by contractual maturity at March 31, 2013 were as follows (in thousands):


	Amortized Cost		Fair Value
Debt securities due within:
One year	$	15,132	$	15,147
One to five years		23,951		24,040
Five years or more		3,379		3,466

Total	$	42,462	$	42,653

Sales of Available-for-Sale Securities

The following table summarizes sales of available-for-sale securities (in thousands):


	Three months ended					Six months ended
	March 31,					March 31,
	2013		2012			2013		2012
Proceeds from sales	$	25,175	$	31,913		$	25,980	$	34,554
Gross realized gains	$	161	$	163		$	165	$	171
Gross realized losses	$	—	$	(1	)	$	—	$	(1	)

Inventories (Tables)

6 Months Ended

Mar. 31, 2013

Components of Inventory

Inventories consisted of the following components (in thousands):


	March 31,		September 30,
	2013		2012
Raw materials	$	1,354	$	1,479
Finished products		2,010		2,045

Total	$	3,364	$	3,524

Other Assets (Tables)

6 Months Ended

Mar. 31, 2013

Other Assets Consist Principally of Strategic Investment

Other assets consist principally of strategic investments as follows (in thousands):


	March 31,		September 30,
	2013		2012
OctoPlus N.V.	$	—	$	718
Nexeon MedSystems, Inc.		29		29
CeloNova BioSciences, Inc.		1,500		1,500
ThermopeutiX, Inc.		1,185		1,185
ViaCyte, Inc.		429		559
Other		2		84

Other assets, net	$	3,145	$	4,075

Intangible Assets (Tables)

6 Months Ended

Mar. 31, 2013

Intangible Assets

Intangible assets consisted of the following (in thousands):


	March 31, 2013
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(3,004	)	$	1,853
Core technology		8.0		530		(375	)		155
Patents and other		16.8		2,256		(784	)		1,472

Subtotal				7,643		(4,163	)		3,480
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(4,163	)	$	4,060


	September 30, 2012
	Weighted Average Original Life (Years)		Gross Carrying Amount		Accumulated Amortization			Net
Definite-lived intangible assets:
Customer lists		9.0	$	4,857	$	(2,734	)	$	2,123
Core technology		8.0		530		(343	)		187
Patents and other		16.8		2,256		(716	)		1,540

Subtotal				7,643		(3,793	)		3,850
Unamortized intangible assets:
Trademarks				580		—			580

Total			$	8,223	$	(3,793	)	$	4,430

Estimated Amortization Expenses

Based on the intangible assets in service as of March 31, 2013, estimated amortization expense for each of the next five fiscal years is as follows (in thousands):


Remainder of 2013	$	371
2014		742
2015		731
2016		594
2017		183
2018		137

Stock-based Compensation (Tables)

6 Months Ended

Mar. 31, 2013

Stock Based Compensation Expenses

The Company’s stock-based compensation expenses were allocated to the following expense categories (in thousands):


	Three months ended				Six months ended
	March 31,				March 31,
	2013		2012		2013		2012
Product costs	$	7	$	11	$	10	$	26
Research and development		64		161		87		382
Selling, general and administrative		775		468		1,141		1,125

Total	$	846	$	640	$	1,238	$	1,533

Assumptions Used in Stock Option Plans

The assumptions used as inputs in the model were as follows:


	Three months ended						Six months ended
	March 31,						March 31,
	2013			2012			2013			2012
Risk-free interest rates		0.7	%		0.7	%		0.6	%		0.8	%
Expected life (years)		4.8			4.8			4.8			4.8
Expected volatility		49.1	%		49.6	%		49.2	%		49.6	%
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Income (Loss) Per Share Data (Tables)

6 Months Ended

Mar. 31, 2013

Components of Basic and Diluted Income Per Share Computation

The following table sets forth the components of the basic and diluted income per share computations (in thousands):


	Three months ended				Six months ended
	March 31,				March 31,
	2013		2012		2013		2012
Net income from continuing operations available to common shareholders	$	3,420	$	1,946	$	7,668	$	4,101

Basic weighted average shares outstanding		14,622		17,519		14,639		17,498
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares		292		113		232		77

Diluted weighted average shares outstanding		14,914		17,632		14,871		17,575

Operating Segments (Tables)

6 Months Ended

Mar. 31, 2013

Segment Revenue, Operating Income from Continuing Operations and Depreciation and Amortization

The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, as follows (in thousands):


	Three months ended						Six months ended
	March 31,						March 31,
	2013			2012			2013			2012
Revenue:
Medical Device	$	9,735		$	8,753		$	20,266		$	17,620
In Vitro Diagnostics		3,960			3,457			7,280			6,506

Total revenue	$	13,695		$	12,210		$	27,546		$	24,126

Operating income (loss):
Medical Device	$	4,785		$	4,121		$	10,625		$	8,053
In Vitro Diagnostics		1,267			1,271			2,018			2,177

Total segment operating income		6,052			5,392			12,643			10,230
Corporate		(1,923	)		(1,703	)		(3,637	)		(3,319	)

Total operating income from continuing operations	$	4,129		$	3,689		$	9,006		$	6,911

Depreciation and amortization:
Medical Device	$	311		$	354		$	628		$	718
In Vitro Diagnostics		218			194			433			389
Corporate		195			183			385			373

Total depreciation and amortization	$	724		$	731		$	1,446		$	1,480

Immaterial Restatement (Tables)

6 Months Ended

Mar. 31, 2013

Effect of Impairment Charge Adjustment

Company has corrected the error associated with the historical balance sheet amounts included in this filing as follows (in thousands):

Condensed Consolidated Balance Sheet


	As Reported				As Restated
	September 30, 2012		Adjustment		September 30, 2012
Other assets, net	$	2,831	$	1,244	$	4,075
Total assets		103,075		1,244		104,319
Retained earnings		74,625		1,244		75,869
Total stockholders’ equity		93,744		1,244		94,988
Total liabilities and stockholders’ equity	$	103,075	$	1,244	$	104,319

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References + Details

Key Accounting Policies - Additional Information (Detail)	Mar. 31, 2013
Accounting Policies [Line Items]
Maximum payment terms on product sales	45 days
Minimum payment terms on product sales	30 days

Discontinued Operations - Additional Information (Detail) - USD ($)		1 Months Ended		3 Months Ended		6 Months Ended
	Apr. 17, 2013	Jan. 29, 2013	Nov. 17, 2011	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Sep. 30, 2012
Discontinued Operations [Line Items]
Total consideration received from the Pharma Sale			$ 30,000,000
Restricted time period for competition			5 years
Loss on sale of discontinued operations, before income taxes					$ 26,000		$ (1,634,000)
Loss on sale of discontinued operations, net of income taxes					$ 121,000		$ (933,000)
Payment in settlement of retained liability		$ 325,000
Retained liability settled amount		1,500,000
Current liabilities of discontinued operations				271,000		271,000			$ 1,640,000
Gain in discontinued operations				1,200,000
Termination Agreement [Member]
Discontinued Operations [Line Items]
Retained liability settled amount	$ 200,000
Gain in discontinued operations	$ 200,000
Alabama Jobs Commitment
Discontinued Operations [Line Items]
Current liabilities of discontinued operations		$ 1,700,000		$ 200,000		$ 200,000		$ 1,700,000

Operating Results from Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Discontinued Operations [Line Items]
Total revenue				$ 5,311
Income (loss) from discontinued operations	1,015	(221)	1,015	2,309
Income tax provision	(333)	(123)	(333)	(1,048)
Income (loss) from discontinued operations, net of income taxes	682	(344)	682	1,261
Income (loss) on sale of discontinued operations		26		(1,634)
Income tax benefit		95		701
Income (loss) on sale of discontinued operations, net of income taxes		$ 121		$ (933)

- Definition

Overall income (loss) from a disposal group that is classified as a component of the entity, before income tax, reported as a separate component of income before extraordinary items. Includes the following (before income tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References + Details

- Definition

Tax effect allocated to a disposal group that is classified as a component of the entity reported as a separate component of income before extraordinary items. Includes the tax effects of the following: income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b),(c)
-URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32672-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=18498875&loc=d3e38679-109324

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 47
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 144
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Amount of tax expense or benefit on gain (loss), not previously recognized, resulting from the sale of a business component.

+ References + Details

Assets and Liabilities of Discontinued Operations (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Components Of Discontinued Operations [Line Items]
Accounts receivable, net		$ 283
Other current assets	$ 129	600
Current assets of discontinued operations	129	883
Total assets of discontinued operations	129	883
Other current liabilities payable	271	1,640
Current liabilities of discontinued operations	271	1,640
Total liabilities of discontinued operations	$ 271	$ 1,640

Reconciliation of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Detail) $ in Thousands	6 Months Ended
	Mar. 31, 2012 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 24
Transfers into Level 3
Transfers out of Level 3	(24)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income
Purchases, issuances, sales and settlements, net
Mortgage-backed Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	15
Transfers into Level 3
Transfers out of Level 3	(15)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income
Purchases, issuances, sales and settlements, net
Asset-backed Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	9
Transfers into Level 3
Transfers out of Level 3	(9)
Total realized and unrealized gains (losses):
Included in other comprehensive (loss) income
Purchases, issuances, sales and settlements, net

Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 42,462	$ 42,186
Unrealized Gains	221	405
Unrealized Losses	(30)	(41)
Fair Value	42,653	42,550
U.S. government and government agency obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	34,318	28,641
Unrealized Gains	59	213
Unrealized Losses
Fair Value	34,377	28,854
Mortgage-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,513	2,896
Unrealized Gains	112	129
Unrealized Losses	(24)	(26)
Fair Value	2,601	2,999
Municipal Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,421	3,178
Unrealized Gains	27	35
Unrealized Losses	(1)
Fair Value	3,447	3,213
Asset-backed Securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	537	613
Unrealized Gains
Unrealized Losses	(5)	(15)
Fair Value	532	598
Corporate Bonds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,673	6,858
Unrealized Gains	23	28
Unrealized Losses
Fair Value	$ 1,696	$ 6,886

Amortized Cost and Fair Value of Investments by Contractual Maturity (Detail) $ in Thousands	Mar. 31, 2013 USD ($)
Amortized cost
Debt securities due within one year	$ 15,132
Debt securities due within one to five years	23,951
Debt securities due within five years or more	3,379
Total	42,462
Fair value
Debt securities due within one year	15,147
Debt securities due within one to five years	24,040
Debt securities due within five years or more	3,466
Total	$ 42,653

Sales of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Proceeds from sales	$ 25,175	$ 31,913	$ 25,980	$ 34,554
Gross realized gains	$ 161	163	$ 165	171
Gross realized losses		$ (1)		$ (1)

- Definition

The cash inflow associated with the sale of debt and equity securities classified as available-for-sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Investing Activities
-URI http://asc.fasb.org/extlink&oid=6516133

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26853-111562

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 12
-Subparagraph (a),(b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3179-108585

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 18
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 16
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 16
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Investments - Additional Information (Detail) $ in Thousands	6 Months Ended
	Mar. 31, 2012 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Maturities of held-to-maturity securities	$ 3,000

Components of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Components Of Inventory [Line Items]
Raw materials	$ 1,354	$ 1,479
Finished products	2,010	2,045
Total	$ 3,364	$ 3,524

Other Assets Consist Principally of Strategic Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Schedule of Investments [Line Items]
Other assets, net	$ 3,145	$ 4,075
OctoPlus N.V.
Schedule of Investments [Line Items]
Other assets, net		718
Nexeon MedSystems, Inc.
Schedule of Investments [Line Items]
Other assets, net	29	29
CeloNova BioSciences, Inc.
Schedule of Investments [Line Items]
Other assets, net	1,500	1,500
ThermopeutiX, Inc.
Schedule of Investments [Line Items]
Other assets, net	1,185	1,185
ViaCyte, Inc.
Schedule of Investments [Line Items]
Other assets, net	429	559
Other
Schedule of Investments [Line Items]
Other assets, net	$ 2	$ 84

Other Assets - Additional Information (Detail) $ in Thousands	3 Months Ended					6 Months Ended		12 Months Ended
	Mar. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2012 USD ($) € / shares	Mar. 31, 2012 USD ($)	Mar. 31, 2010 USD ($)	Mar. 31, 2013 USD ($)	Mar. 31, 2012 USD ($)	Dec. 31, 2010 USD ($)	Sep. 30, 2010 USD ($)	Sep. 30, 2012 USD ($)	Aug. 31, 2009 USD ($)
Other Assets [Line Items]
Gain on sale of investments	$ 100
Gain on sale of investment						$ 1,458	$ 170
OctoPlus N.V.
Other Assets [Line Items]
Offer price to purchase all issued and outstanding ordinary shares \| € / shares			€ 0.52
Investment In Vessix Vascular, Inc.
Other Assets [Line Items]
Investment in Vessix											$ 2,000
Follow-on investment					$ 500
Impairment loss on investment									$ 2,400
Gain on sale of investment		$ 1,200
OctoPlus N.V.
Other Assets [Line Items]
Investment cost, cost method										$ 900
Nexeon MedSystems, Inc.
Other Assets [Line Items]
Investment cost, cost method	6,500					6,500
Impairment loss on other assets								$ 4,100
ViaCyte, Inc.
Other Assets [Line Items]
Investment cost, cost method	5,200					5,200
Impairment loss on other assets	4,700
Additional impairment loss other than temporary	100
Cost method of investment	400					400
Maximum
Other Assets [Line Items]
Revenue recognized from activity with companies in which it had strategic investment	$ 100			$ 100		$ 100	$ 100
Maximum \| Investment In Vessix Vascular, Inc.
Other Assets [Line Items]
Potential proceeds on achievement of future milestones		$ 4,200	€ 4,200
Maximum \| Nexeon MedSystems, Inc.
Other Assets [Line Items]
Company's ownership percentage	20.00%					20.00%
Maximum \| CeloNova BioSciences, Inc.
Other Assets [Line Items]
Company's ownership percentage	5.00%					5.00%
Maximum \| ViaCyte, Inc.
Other Assets [Line Items]
Company's ownership percentage	5.00%					5.00%

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Amortization Expense [Line Items]
Amortization expense	$ 0.2	$ 0.2	$ 0.4	$ 0.4

Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Intangible Assets [Line Items]
Intangible assets, Gross carrying amount	$ 8,223	$ 8,223
Intangible assets, Accumulated amortization	(4,163)	(3,793)
Intangible assets, Net	$ 4,060	$ 4,430
Customer Lists
Intangible Assets [Line Items]
Definite lived intangible assets, Weighted Average Original Life (Years)	9 years	9 years
Definite lived intangible assets, Gross Carrying Amount	$ 4,857	$ 4,857
Definite lived intangible assets, Accumulated Amortization	(3,004)	(2,734)
Definite lived intangible assets, Net	$ 1,853	$ 2,123
Core Technology
Intangible Assets [Line Items]
Definite lived intangible assets, Weighted Average Original Life (Years)	8 years	8 years
Definite lived intangible assets, Gross Carrying Amount	$ 530	$ 530
Definite lived intangible assets, Accumulated Amortization	(375)	(343)
Definite lived intangible assets, Net	$ 155	$ 187
Patents And Other
Intangible Assets [Line Items]
Definite lived intangible assets, Weighted Average Original Life (Years)	16 years 9 months 18 days	16 years 9 months 18 days
Definite lived intangible assets, Gross Carrying Amount	$ 2,256	$ 2,256
Definite lived intangible assets, Accumulated Amortization	(784)	(716)
Definite lived intangible assets, Net	1,472	1,540
Subtotal
Intangible Assets [Line Items]
Definite lived intangible assets, Gross Carrying Amount	7,643	7,643
Definite lived intangible assets, Accumulated Amortization	(4,163)	(3,793)
Definite lived intangible assets, Net	3,480	3,850
Trademarks
Intangible Assets [Line Items]
Unamortized intangible assets, Gross	580	580
Unamortized intangible assets, Net	$ 580	$ 580

Estimated Amortization Expenses (Detail) $ in Thousands	Mar. 31, 2013 USD ($)
Amortization Expense [Line Items]
Remainder of 2013	$ 371
2014	742
2015	731
2016	594
2017	183
2018	$ 137

Goodwill - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Goodwill [Line Items]
Goodwill	$ 8,010	$ 8,010

- Definition

Carrying amount as of the balance sheet date, which is the cumulative amount paid and (if applicable) the fair value of any noncontrolling interest in the acquiree, adjusted for any amortization recognized prior to the adoption of any changes in generally accepted accounting principles (as applicable) and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6388280&loc=d3e13770-109266

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 43
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 72
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 142
-Paragraph 45
-Subparagraph e
-Clause 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-Subparagraph l
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stock Based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	$ 846	$ 640	$ 1,238	$ 1,533
Product costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	7	11	10	26
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	64	161	87	382
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expenses	$ 775	$ 468	$ 1,141	$ 1,125

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Stock-Based Compensation - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Dec. 12, 2012	Sep. 30, 2000	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Stock Based Compensation Activity [Line Items]
Unrecognized compensation costs related to non-vested awards			$ 4,600,000		$ 4,600,000
Weighted average period for recognition of compensation costs related to non-vested awards			2 years 8 months 12 days
Performance Share Awards Fully Expensed			$ 1,600,000		$ 1,600,000
Weighted average per share fair value of stock options			$ 9.99	$ 5.95	$ 8.69	$ 5.24
Dividend yield			0.00%	0.00%	0.00%	0.00%
Total pre-tax intrinsic value of options exercised			$ 49,000	$ 49,000	$ 69,000	$ 49,000
Expenses recognized related to Performance Shares			$ 400,000	100,000	$ 600,000	300,000
Performance Shares, time period					3 years
Non-qualified stock options granted prior to May 2008
Stock Based Compensation Activity [Line Items]
Percentage of non-qualified stock options on each of first five anniversaries					20.00%
Non-qualified stock options granted subsequent to April 2008
Stock Based Compensation Activity [Line Items]
Percentage of non-qualified stock options on each of first four anniversaries					25.00%
Fiscal 2011 beginning on October 1, 2010 and ending on September 30, 2013
Stock Based Compensation Activity [Line Items]
Performance period start date					Oct. 01, 2010
Performance period end date					Sep. 30, 2013
Targeted number of shares to be vested upon achievement of all or portion of performance objectives during the performance period					68,533
Fiscal 2012 beginning on October 1, 2011 and ending on September 30, 2014
Stock Based Compensation Activity [Line Items]
Performance period start date					Oct. 01, 2011
Performance period end date					Sep. 30, 2014
Targeted number of shares to be vested upon achievement of all or portion of performance objectives during the performance period					62,497
Fiscal 2013 beginning on October 1, 2012 and ending on September 30, 2015
Stock Based Compensation Activity [Line Items]
Performance period start date					Oct. 01, 2012
Performance period end date					Sep. 30, 2015
Targeted number of shares to be vested upon achievement of all or portion of performance objectives during the performance period					42,753
Minimum
Stock Based Compensation Activity [Line Items]
Performance share awards, estimated vesting percentage			20.00%
Maximum
Stock Based Compensation Activity [Line Items]
Restricted stock expenses			$ 100,000	100,000	$ 100,000	200,000
Performance share awards, estimated vesting percentage			200.00%
Common stock authorized, shares		400,000
Annual compensation withheld		10.00%
Annual compensation withheld, maximum limit		$ 25,000
Employee contributions			$ 100,000	100,000	100,000	100,000
Stock compensation expenses recognized			100,000	$ 100,000	100,000	$ 100,000
RSU expenses			$ 100,000		$ 100,000
Nonqualified Stock Options \| Minimum
Stock Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service					7 years
Nonqualified Stock Options \| Maximum
Stock Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service					10 years
Restricted Stock Units (RSUs)
Stock Based Compensation Activity [Line Items]
Number of restricted stock units awarded	11,776		1,691
Number of restricted stock issued value			$ 46,000
RSU award vest each year	33.00%

Assumptions Used in Stock Option Plans (Detail)	3 Months Ended		6 Months Ended
Assumptions Used in Stock Option Plans (Detail)	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Share Based Payment Award Stock Options Valuation Assumptions [Line Items]
Risk-free interest rates	0.70%	0.70%	0.60%	0.80%
Expected life (years)	4 years 9 months 18 days	4 years 9 months 18 days	4 years 9 months 18 days	4 years 9 months 18 days
Expected volatility	49.10%	49.60%	49.20%	49.60%
Dividend yield	0.00%	0.00%	0.00%	0.00%

Components of Basic and Diluted Income Per Share Computation (Detail) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Components Of Basic And Diluted Earning Per Share [Line Items]
Net income from continuing operations available to common shareholders	$ 3,420	$ 1,946	$ 7,668	$ 4,101
Basic weighted average shares outstanding	14,622	17,519	14,639	17,498
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares	292	113	232	77
Diluted weighted average shares outstanding	14,914	17,632	14,871	17,575

- Definition

Amount of income (loss) from continuing operations attributable to the parent. Also defined as revenue less expenses and taxes from ongoing operations before extraordinary items but after deduction of those portions of income or loss from continuing operations that are allocable to noncontrolling interests.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.13)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=7656940&loc=SL4613673-111683

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph b(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 29
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income (Loss) Per Share Data - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Earnings Loss Per Share [Line Items]
Weighted average diluted shares outstanding excluded outstanding stock options	0.3	0.7	0.5	0.7

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012	Sep. 30, 2012
Income Tax Disclosure [Line Items]
Income tax provisions associated with income from continuing operations	$ 0.9	$ 1.2	$ 2.8	$ 2.5
Effective tax rates	21.20%	39.00%	26.70%	37.50%
Permanent tax and discrete tax benefits	$ 0.4		$ 0.6
U.S. federal statutory tax rate	35.00%	35.00%	35.00%	35.00%
Income tax expense from discontinued operations	$ 0.3	$ 0.1	$ 0.3	$ 1.0
Income tax benefit from the sale of discontinued operations		$ 0.1		$ 0.7
Effective tax rate applied to discontinued operations	32.80%	14.40%	32.80%	51.40%
Unrecognized tax benefits including interest and penalties	$ 1.4		$ 1.4		$ 1.4
Liability for unrecognized tax benefits to change significantly in the next 12 months	$ 0.0		$ 0.0

Amounts Reclassified Out of Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2013	Mar. 31, 2013
Accumulated Other Comprehensive Income Pre Tax [Member]
Other Comprehensive Income (Loss) [Line Items]
Amounts reclassified out of AOCI pre tax basis	$ 0.3	$ 0.3

Segment Revenue, Operating Income from Continuing Operations and Depreciation and Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2013	Mar. 31, 2012
Segment Reporting Information [Line Items]
Total revenue	$ 13,695	$ 12,210	$ 27,546	$ 24,126
Operating income from continuing operations	4,129	3,689	9,006	6,911
Depreciation and amortization	724	731	1,446	1,480
Medical Device
Segment Reporting Information [Line Items]
Total revenue	9,735	8,753	20,266	17,620
Operating income from continuing operations	4,785	4,121	10,625	8,053
Depreciation and amortization	311	354	628	718
In Vitro Diagnostics
Segment Reporting Information [Line Items]
Total revenue	3,960	3,457	7,280	6,506
Operating income from continuing operations	1,267	1,271	2,018	2,177
Depreciation and amortization	218	194	433	389
Segment operating income
Segment Reporting Information [Line Items]
Operating income from continuing operations	6,052	5,392	12,643	10,230
Corporate
Segment Reporting Information [Line Items]
Operating income from continuing operations	(1,923)	(1,703)	(3,637)	(3,319)
Depreciation and amortization	$ 195	$ 183	$ 385	$ 373

Commitments and Contingencies - Additional Information (Detail)		1 Months Ended	3 Months Ended	6 Months Ended
	Apr. 17, 2013 USD ($)	Jan. 29, 2013 USD ($)	Mar. 31, 2013 USD ($)	Mar. 31, 2013 USD ($) shares	Dec. 31, 2012 USD ($)	Sep. 30, 2012 USD ($)	Apr. 30, 2008 ft²
Commitments and Contingencies [Line Items]
Accrual in discontinued operations			$ 100,000	$ 100,000
Unreimbursed legal expenses				$ 1,000,000
Additional shares of common stock to stockholders \| shares				480,059
Additional maximum amount payable on successful achievement of specified milestones to sellers of PR Pharma			2,500,000	$ 2,500,000
Indemnification period				5 years
Office and warehouse facility \| ft²							286,000
Current liabilities of discontinued operations			271,000	$ 271,000		$ 1,640,000
Payment in settlement of retained liability		$ 325,000
Retained liability settled amount		1,500,000
Gain in discontinued operations			1,200,000
Termination Agreement [Member]
Commitments and Contingencies [Line Items]
Retained liability settled amount	$ 200,000
Gain in discontinued operations	$ 200,000
Alabama Jobs Commitment
Commitments and Contingencies [Line Items]
Current liabilities of discontinued operations		$ 1,700,000	$ 200,000	$ 200,000	$ 1,700,000

Immaterial Restatement - Additional Information (Detail) $ in Millions	6 Months Ended
	Mar. 31, 2013 USD ($)
Increase in the carrying value of strategic investments	$ 1.2

Effect of Impairment Charge Adjustment (Detail) - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Other assets, net	$ 3,145	$ 4,075
Total assets	107,593	104,319
Retained earnings	84,219	75,869
Total stockholders' equity	101,985	94,988
Total liabilities and stockholders' equity	$ 107,593	104,319
As Reported
Other assets, net		2,831
Total assets		103,075
Retained earnings		74,625
Total stockholders' equity		93,744
Total liabilities and stockholders' equity		103,075
Adjustment
Other assets, net		1,244
Total assets		1,244
Retained earnings		1,244
Total stockholders' equity		1,244
Total liabilities and stockholders' equity		1,244
As Restated
Other assets, net		4,075
Total assets		104,319
Retained earnings		75,869
Total stockholders' equity		94,988
Total liabilities and stockholders' equity		$ 104,319

Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis - USD ($) $ in Thousands	Mar. 31, 2013	Sep. 30, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	$ 52,455	$ 48,369
Quoted Prices in Active Markets for Identical Instruments (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value		718
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	52,455	47,651
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	9,802	5,101
Cash Equivalents \| Quoted Prices in Active Markets for Identical Instruments (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Cash Equivalents \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	9,802	5,101
Cash Equivalents \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| U.S. government and government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	34,377	28,854
Available-for-sale debt securities \| Mortgage-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	2,601	2,999
Available-for-sale debt securities \| Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	3,447	3,213
Available-for-sale debt securities \| Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	532	598
Available-for-sale debt securities \| Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	1,696	6,886
Available-for-sale debt securities \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| U.S. government and government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Mortgage-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Quoted Prices in Active Markets for Identical Instruments (Level 1) \| Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Significant Other Observable Inputs (Level 2) \| U.S. government and government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	34,377	28,854
Available-for-sale debt securities \| Significant Other Observable Inputs (Level 2) \| Mortgage-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	2,601	2,999
Available-for-sale debt securities \| Significant Other Observable Inputs (Level 2) \| Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	3,447	3,213
Available-for-sale debt securities \| Significant Other Observable Inputs (Level 2) \| Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	532	598
Available-for-sale debt securities \| Significant Other Observable Inputs (Level 2) \| Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	1,696	6,886
Available-for-sale debt securities \| Significant Unobservable Inputs (Level 3) \| U.S. government and government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Significant Unobservable Inputs (Level 3) \| Mortgage-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Significant Unobservable Inputs (Level 3) \| Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Significant Unobservable Inputs (Level 3) \| Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Available-for-sale debt securities \| Significant Unobservable Inputs (Level 3) \| Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value
Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value		718
Other \| Quoted Prices in Active Markets for Identical Instruments (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value		718
Other \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value