Surmodics (SRDX) 10-K 2 Dec 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2016	Nov. 25, 2016	Mar. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	SRDX
Entity Registrant Name	SURMODICS INC
Entity Central Index Key	924,717
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		13,207,541
Entity Public Float			$ 182

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Current Assets:
Cash and cash equivalents	$ 24,987	$ 55,588
Available-for-sale securities	21,954
Accounts receivable, net of allowance for doubtful accounts of $19 and $10 as of September 30, 2016 and 2015, respectively	6,869	7,478
Inventories	3,579	2,979
Deferred tax assets		546
Income tax receivable	697
Prepaids and other	472	1,198
Total Current Assets	58,558	67,789
Property and equipment, net	19,601	12,968
Deferred tax assets	5,027	6,704
Intangible assets, net	22,525	2,760
Goodwill	26,555	8,010
Other assets	628	479
Total Assets	132,894	98,710
Current Liabilities:
Accounts payable	1,622	781
Accrued liabilities:
Compensation	5,418	2,772
Due to customers	881	79
Accrued other	1,109	715
Business combination and contingent consideration	925	305
Deferred revenue	180	48
Total Current Liabilities	10,135	4,700
Contingent consideration, less current portion	13,592
Deferred revenue, less current portion	188	217
Other long-term liabilities	2,146	1,920
Total Liabilities	26,061	6,837
Commitments and Contingencies (Note 11)
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; 13,208,443 and 12,945,157 shares issued and outstanding, in 2016 and 2015 respectively	660	647
Additional paid-in capital	6,754	3,060
Accumulated other comprehensive income	1,273	5
Retained earnings	98,146	88,161
Total Stockholders’ Equity	106,833	91,873
Total Liabilities and Stockholders’ Equity	$ 132,894	$ 98,710

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Statement Of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 19	$ 10
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	13,208,443	12,945,157
Common stock, shares outstanding	13,208,443	12,945,157

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Royalties and license fees	$ 33,203	$ 31,763	$ 30,277
Product sales	30,999	24,925	22,798
Research, development and other	7,164	5,210	4,364
Total revenue	71,366	61,898	57,439
Operating costs and expenses:
Product costs	10,908	8,619	8,016
Research and development	18,498	16,165	15,550
Selling, general and administrative	18,000	14,906	14,691
Acquisition transaction, integration and other costs	3,187
Acquired intangible asset amortization	2,422	619	606
Contingent consideration accretion expense	1,492
Claim settlement		2,500
Total operating costs and expenses	54,507	42,809	38,863
Operating income from continuing operations	16,859	19,089	18,576
Other income (loss):
Investment income, net	63	156	238
Foreign exchange loss	(481)
Impairment losses on strategic investments		(1,500)	(1,184)
Gains on strategic investments and other	507	496	842
Other income (loss)	89	(848)	(104)
Income from continuing operations before income taxes	16,948	18,241	18,472
Income tax provision	(6,963)	(6,294)	(6,265)
Income from continuing operations	9,985	11,947	12,207
Discontinued operations:
Loss from discontinued operations, net of income taxes			(176)
Loss from discontinued operations			(176)
Net income	$ 9,985	$ 11,947	$ 12,031
Basic income (loss) per share:
Continuing operations	$ 0.77	$ 0.92	$ 0.90
Discontinued operations			(0.01)
Net income	0.77	0.92	0.88
Diluted income (loss) per share:
Continuing operations	0.76	0.90	0.88
Discontinued operations			(0.01)
Net income	$ 0.76	$ 0.90	$ 0.87
Weighted average number of shares outstanding:
Basic	12,998	13,029	13,632
Diluted	13,219	13,289	13,876

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 9,985	$ 11,947	$ 12,031
Other comprehensive income (loss):
Unrealized holding (losses) gains on available-for-sale securities, net of tax	(68)	(1,208)	1,559
Reclassification adjustment for realized gains included in net income, net of tax		(315)	(89)
Foreign currency translation adjustments	1,336
Other comprehensive income (loss)	1,268	(1,523)	1,470
Comprehensive income	$ 11,253	$ 10,424	$ 13,501

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]
Beginning balance at Sep. 30, 2013	$ 93,817	$ 695	$ 2,028	$ 58	$ 91,036
Beginning balance, shares at Sep. 30, 2013		13,891,000
Net income	12,031				12,031
Other comprehensive income (loss), net of tax	1,470			1,470
Issuance of common stock	269	$ 8	261
Issuance of common stock, shares		163,000
Common stock repurchased	$ (11,541)	$ (25)	(2,330)		(9,186)
Common stock repurchased, shares	(485,777)	(485,000)
Common stock options exercised, net	$ 243	$ 2	241
Common stock options exercised, net, shares	190,434	38,000
Purchase of common stock to pay employee taxes	$ (1,111)		(1,111)
Excess tax benefit from stock-based compensation plans	236		236
Stock-based compensation	3,337		3,337
Ending balance at Sep. 30, 2014	98,751	$ 680	2,662	1,528	93,881
Ending balance, shares at Sep. 30, 2014		13,607,000
Net income	11,947				11,947
Other comprehensive income (loss), net of tax	(1,523)			(1,523)
Issuance of common stock	279	$ 7	272
Issuance of common stock, shares		139,000
Common stock repurchased	(20,000)	$ (42)	(2,485)		(17,473)
Common stock repurchased, shares		(848,000)
Common stock options exercised, net	$ 431	$ 2	429
Common stock options exercised, net, shares	166,422	47,000
Purchase of common stock to pay employee taxes	$ (825)		(631)		(194)
Excess tax benefit from stock-based compensation plans	432		432
Stock-based compensation	2,381		2,381
Ending balance at Sep. 30, 2015	91,873	$ 647	3,060	5	88,161
Ending balance, shares at Sep. 30, 2015		12,945,000
Net income	9,985				9,985
Other comprehensive income (loss), net of tax	1,268			1,268
Issuance of common stock	270	$ 4	266
Issuance of common stock, shares		74,000
Common stock options exercised, net	$ 1,546	$ 10	1,536
Common stock options exercised, net, shares	437,850	196,000
Purchase of common stock to pay employee taxes	$ (1,953)	$ (1)	(1,952)
Purchase of common stock to pay employee taxes, shares		(7,000)
Stock-based compensation	3,844		3,844
Ending balance at Sep. 30, 2016	$ 106,833	$ 660	$ 6,754	$ 1,273	$ 98,146
Ending balance, shares at Sep. 30, 2016		13,208,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Operating Activities:
Net income	$ 9,985	$ 11,947	$ 12,031
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Depreciation and amortization	4,873	2,805	2,715
Gains on sales of available-for-sale securities, net and strategic investments	(514)	(492)	(842)
Impairment losses on strategic investments		1,500	1,184
Stock-based compensation	3,844	2,381	3,337
Contingent consideration accretion and unrealized foreign exchange loss	1,936
Deferred taxes	261	93	(352)
Excess tax benefit from stock-based compensation plans		(432)	(236)
(Gain) loss on disposals of property and equipment	(66)	(39)	2
Loss from discontinued operations			176
Other, net	13
Change in operating assets and liabilities, net of acquisitions and excluding the impact of discontinued operations:
Accounts receivable	911	(2,727)	581
Inventories	(143)	(162)	511
Prepaids and other	409	141	(23)
Accounts payable and accrued liabilities	3,710	373	(738)
Income taxes	76	(309)	116
Deferred revenue	(129)	(13)	75
Net cash provided by operating activities from continuing operations	25,166	15,066	18,537
Investing Activities:
Payments for acquisition, net of cash acquired	(25,859)	(270)
Purchases of property and equipment	(8,192)	(1,877)	(2,278)
Cash proceeds from sale of property and equipment	89	42
Purchases of available-for-sale securities	(24,517)	(3,376)	(138,363)
Sales and maturities of available-for-sale securities	2,498	22,199	162,673
Cash received from strategic investments	513	21	709
Cash transferred to discontinued operations		(45)	(354)
Net cash (used in) provided by investing activities from continuing operations	(55,468)	16,694	22,387
Financing Activities:
Excess tax benefit from stock-based compensation plans		432	236
Issuance of common stock	494	710	512
Repurchase of common stock		(20,000)	(12,545)
Purchases of common stock to pay employee taxes	(388)	(825)	(1,111)
Payment of contingent consideration	(305)
Net cash used in financing activities from continuing operations	(199)	(19,683)	(12,908)
Net cash (used in) provided by continuing operations	(30,501)	12,077	28,016
Discontinued Operations:
Net cash used in operating activities		(45)	(354)
Net cash provided by financing activities		45	354
Effect of exchange rate changes on cash	(100)
Net change in cash and cash equivalents	(30,601)	12,077	28,016
Cash and Cash Equivalents:
Beginning of year	55,588	43,511	15,495
End of year	24,987	55,588	43,511
Supplemental Information:
Cash paid for income taxes	6,710	6,510	6,295
Noncash financing and investing activities:
Acquisition of property and equipment on account	50	22	11
Contingent consideration and debt assumed in acquisitions	12,584		0
Issuance of performance shares, restricted and deferred stock units	$ 1,472	2,250	$ 3,007
Accrual of business combination contingent consideration		$ 305

Schedule of Valuation and Quali

Schedule of Valuation and Qualifying Accounts	12 Months Ended
	Sep. 30, 2016
Valuation And Qualifying Accounts [Abstract]
Schedule of Valuation and Qualifying Accounts	Surmodics, Inc. Valuation and Qualifying Accounts (In thousands) Description(1) Balance at Beginning of Period(2) Additions Charged (Credited) to Expenses Deductions From Reserves Balance at End of Period Year Ended September 30, 2014: Allowance for doubtful accounts $ 26 $ 24 $ 8 (a) $ 42 Restructuring accrual $ 416 $ — $ 416 (b) $ — Year Ended September 30, 2015: Allowance for doubtful accounts $ 42 $ — $ 32 (a) $ 10 Restructuring accrual $ — $ — $ — (b) $ — Year Ended September 30, 2016: Allowance for doubtful accounts $ 10 $ 9 $ — (a) $ 19 Restructuring accrual $ — $ — $ — (b) $ — (1) Includes accounts associated with continuing operations. (a) (b) Adjustments to the accrual account reflect payments or non-cash charges associated with the accrual.

Description

Description	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Description	1. Description Surmodics, Inc. and subsidiaries (“Surmodics” or the “Company”) is a leading provider of medical device and in vitro Basis of Presentation The consolidated financial statements include all accounts and wholly-owned subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.”) (“GAAP”). All inter-company transactions have been eliminated.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Select Balance Sheet Information	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Select Balance Sheet Information	2. Summary of Significant Accounting Policies and Select Balance Sheet Information Cash and Cash Equivalents Cash and cash equivalents consist of financial instruments with maturities of three months or less at the Company’s acquisition date of the security and are stated at cost which approximates fair value and may include money market instruments, certificates of deposit, repurchase agreements and commercial paper instruments. Investments Investments consisted principally of commercial paper securities and are classified as available-for-sale as of September 30, 2016. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the consolidated statements of income and reported in the consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the 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. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income. Realized gains and losses from the sales of debt securities, which are included in other income, 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 September September 30, 2016 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 22,019 $ — $ (65 ) $ 21,954 Total $ 22,019 $ — $ (65 ) $ 21,954 During the year ended September 30, 2015, the Company liquidated its investment portfolio to support corporate initiatives, as a result the ending balance of available-for-sale investments as of September 30, 2015 was zero. The following table summarizes sales of available-for-sale securities for the years ended September 30, 2016, 2015 and 2014 (in thousands): 2016 2015 2014 Proceeds from sales $ 2,498 $ 22,199 $ 162,673 Gross realized gains $ — $ 548 $ 134 Gross realized losses $ (2 ) $ (73 ) $ (1 ) There were no held-to-maturity debt securities as of September 30, 2016 or 2015. 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 as of September 30 (in thousands): 2016 2015 Raw materials $ 1,766 $ 1,264 Work in-process 492 213 Finished products 1,321 1,502 Total $ 3,579 $ 2,979 Property and Equipment Property and equipment are stated at cost, less any impairment, and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company recorded depreciation expense of $2.3 million, $2.0 million and $2.0 million for the years ended September 30, 2016, 2015 and 2014, respectively. The September 30, 2016 and 2015 balances in construction-in-progress include the cost of enhancing the capabilities of the Company’s Ballinasloe, Ireland and Eden Prairie, Minnesota facilities. As assets are placed in service, construction-in-progress is transferred to the specific property and equipment categories and depreciated over the estimated useful lives of the assets. Property and equipment consisted of the following components as of September 30 (in thousands): Useful Life 2016 2015 (In years) Land N/A $ 4,359 $ 4,359 Laboratory fixtures and equipment 3 to 10 15,243 12,941 Buildings and improvements 3 to 20 19,589 16,444 Office furniture and equipment 3 to 10 3,948 3,473 Construction-in-progress 3,441 1,168 Less accumulated depreciation (26,979 ) (25,417 ) Property and equipment, net $ 19,601 $ 12,968 Other Assets Other assets consist principally of the following as of September 30 (in thousands): 2016 2015 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 149 — Other assets, net $ 628 $ 479 In February 2011, the stent technology of Nexeon MedSystems, Inc. (“Nexeon”) 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. The Company’s investment in CeloNova, which was accounted for under the cost method, represented less than a 2% ownership interest. The Company does not exert significant influence over CeloNova’s operating or financial activities. On November 10, 2015 Boston Scientific Corporation announced its intent to acquire CeloNova’s interventional radiology portfolio for $70 million plus potential milestone payments. The Company recognized an other-than-temporary impairment loss of $1.5 million related to its investment in CeloNova in the fourth quarter fiscal 2015 based on the indicated value of this transaction. The Company has invested a total of $1.2 million in ThermopeutiX, Inc. (“ThermopeutiX”), a California-based early stage company developing novel medical devices for the treatment of vascular and neurovascular diseases. In addition to the investment, Surmodics has licensed its hydrophilic and hemocompatible coating technologies to ThermopeutiX for use with its devices. The Company’s investment in ThermopeutiX, which is accounted for under the cost method, represents an ownership interest of less than 20%. The Company does not exert significant influence over ThermopeutiX’s operating or financial activities. In the fourth quarter of fiscal 2014, the Company recognized an other-than-temporary impairment loss of $1.2 million based on capital funding initiatives and current operating conditions of ThermopeutiX. The Company has invested a total of $5.3 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 financing round and market valuations. The balance of the investment of $0.5 million, which is accounted for under the cost method, represents less than a 1% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities. The Company had invested a total of $2.5 million in Vessix Vascular, Inc. (“Vessix”) and recognized an other-than-temporary impairment loss on this investment totaling $2.4 million in fiscal 2010, based on market valuations and a pending financing round for Vessix. Vessix was purchased by Boston Scientific Corporation in November 2012. The Company recorded a gain of approximately $1.2 million in the consolidated statements of income gains on sale of strategic investments line, on the sale of this investment in the first quarter of fiscal 2013. In fiscal 2014, the Company recorded a $0.7 million gain upon achievement by Vessix of a clinical milestone and a sales milestone for calendar 2013. Total potential maximum additional proceeds of $3.3 million may be received in fiscal 2017, depending on Vessix’s achievement of future sales 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 transferred its original investment of $2,000 in Intersect ENT, Inc. (“Intersect ENT”) out of other assets to short-term available-for-sale investments upon completion of Intersect ENT’s initial public offering (“IPO”) in July 2014. The Company recognized a gain on this investment in other income of $0.5 million during the year ended September 30, 2015 as the investment was sold. The total carrying value of cost method investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment. In the fiscal years ended September 30, 2016, 2015 and 2014, the Company recognized revenue of less than $0.1 million in each period from activity with companies in which it had a strategic investment. Intangible Assets Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $2.4 million, $0.8 million and $0.7 million for the years ended September 30, 2016, 2015 and 2014, respectively. During the year ended September 30, 2016, the Company acquired 100% of the shares of both Creagh Medical Ltd. (“Creagh Medical”) and NorMedix, Inc. (“NorMedix”). These acquisitions (collectively, “Fiscal 2016 Acquisitions”) resulted in an increase in customer lists and relationships, developed technology and in-process research and development (“IPR&D”) of $12.6 million, $8.7 million and $1.0 million, respectively. During the year ended September 30, 2015, the Company acquired certain assets from ImmunO4, LLC resulting in an increase in customer lists, non-compete and other intangible assets of $0.3 million, $0.2 million and $0.1 million, respectively. Intangible assets consisted of the following as of September 30 (in thousands): 2016 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,692 $ (6,123 ) $ 11,569 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,724 (618 ) 8,106 Non-compete 5.0 230 (58 ) 172 Patents and other 16.5 2,321 (1,275 ) 1,046 Subtotal 29,497 (8,604 ) 20,893 Unamortized intangible assets: In-process research and development 987 — 987 Trademarks and trade names 645 — 645 Total $ 31,129 $ (8,604 ) $ 22,525 2015 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists 9.0 $ 5,132 $ (4,363 ) $ 769 Core technology 8.0 530 (530 ) — Non-compete 5.0 230 (12 ) 218 Patents and other 16.8 2,321 (1,128 ) 1,193 Subtotal 8,213 (6,033 ) 2,180 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,793 $ (6,033 ) $ 2,760 Based on the intangible assets in service, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility as of September 30, 2016, estimated amortization expense for each of the next five fiscal years is as follows (in thousands): 2017 $ 2,580 2018 2,534 2019 2,534 2020 2,358 2021 2,219 Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, completion or abandonment of IPR&D intangible assets, changes in amortization periods, or other factors. The Company defines IPR&D as the value of technology acquired for which the related projects have substance and are incomplete. IPR&D acquired in a business acquisition is recognized at fair value and is capitalized as an indefinite-lived intangible asset until completion of the IPR&D project or abandonment. Upon completion of the development project (generally when regulatory approval to market the product is obtained), an impairment assessment is performed prior to amortizing the asset over its estimated useful life. If the IPR&D projects are abandoned, the related IPR&D assets would be written off. The Company assesses indefinite-lived assets for impairment annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Similar to the goodwill impairment test, the indefinite-lived assets impairment test requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. the fair value of certain trade name assets were deemed to be less than their carrying value, resulting in an impairment loss of less than $0.1 million, which was recorded in Selling, general and administrative in the consolidated statements of income for the fiscal year ended September 30, 2016. No other impairment losses were identified during the annual impairment analysis. 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 it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill is evaluated for impairment based on an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount (Step 0). If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test, as described below, becomes unnecessary. If events or circumstances occur that would indicate that the carrying amount may be impaired, or if the Company otherwise determines it necessary, the two-step impairment test will be performed. The two-step impairment test requires Surmodics to compare the fair value of the reporting units to which goodwill was assigned to their respective carrying values (Step 1 of the impairment test). In calculating fair value, the Company would use the income approach as its primary indicator of fair value, with the market approach used as a test of reasonableness. The income approach is a valuation technique under which the Company estimates future cash flows using the reporting units’ financial forecasts. Future estimated cash flows would be discounted to their present value to calculate fair value. The market approach establishes fair value by comparing Surmodics’ reporting units to other publicly traded guideline companies or by analysis of actual transactions of similar businesses or assets sold. The income approach would be tailored to the circumstances of the Company’s business, and the market approach would be completed as a secondary test to ensure that the results of the income approach are reasonable and in line with comparable companies in the industry. The summation of the Company’s reporting units’ fair values would be compared and reconciled to its market capitalization as of the date of its impairment test. In the situation where a reporting unit’s carrying amount exceeds its fair value, the amount of the impairment loss must be measured. The measurement of the impairment (Step 2 of the impairment test) is calculated by determining the implied fair value of a reporting unit’s goodwill. In calculating the implied fair value of goodwill, the fair value of the reporting unit is allocated to all other assets and liabilities of that unit based on their fair values. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. The goodwill impairment is measured as the excess of the carrying amount of goodwill over its implied fair value. The Company’s reporting units are the In Vitro Diagnostics operations known as its In Vitro Diagnostics unit which contains its BioFX branded products and the Surmodics device drug delivery, hydrophilic coatings and medical device manufacturing operations known as the Medical Device unit. Inherent in the determination of fair value of the reporting units are certain estimates and judgments, including the interpretation of current economic indicators and market valuations as well as the Company’s strategic plans with regard to its operations. Goodwill as of September 30, 2016 and September 30, 2015 totaled $26.6 million and $8.0 million, respectively. The $8.0 million of goodwill as of September 30, 2016 and 2015 is related to the In Vitro Diagnostics reporting unit and represents the gross value from the acquisition of BioFX Laboratories, Inc. in 2007. As part of the Creagh Medical and NorMedix acquisitions, the Medical Device reporting segment recorded $17.9 million of goodwill during 2016, $13.4 million of which is denominated in Euros and subject to revaluation due to fluctuations in exchange rates. Due to these acquisitions in the current year, the Company performed the two-step impairment test to determine if impairment exists and to provide for a baseline against which qualitative factors can be compared going forward. The Company performed its annual impairment test of goodwill (Step 1) as of August 31, 2016, and did not record any goodwill impairment charges during fiscal 2016 as it was determined that the reporting units’ fair values were greater than their carrying values. The Company also did not record any goodwill impairment charges related to the In Vitro Diagnostics reporting unit during fiscal 2015 or 2014 based on the Company’s Step 0 analysis. In the first quarter of fiscal 2016, the Company purchased Creagh Medical for up to €30 million, or approximately $32.1 million based on acquisition date exchange rates. The purchase price of Creagh Medical exceeded the net acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $13.4 million. In the second quarter of fiscal 2016, the Company purchased NorMedix. The purchase price of NorMedix exceeded the net acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $4.5 million. The Company finalized its allocation of purchase price to the assets acquired and the liabilities assumed for both of these acquisitions in the quarter ended September 30, 2016. The change in the carrying amount of goodwill by segment for the year ended September 30, 2016 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2015 $ 8,010 $ — $ 8,010 Additions (See Note 3) — 17,892 17,892 Foreign currency translation adjustment — 653 653 Balance as of September 30, 2016 $ 8,010 $ 18,545 $ 26,555 Valuation of Long-Lived Assets Accounting guidance requires the Company to evaluate periodically whether events and circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of long-lived assets, such as property and equipment and intangibles with finite lives. If such events or circumstances were to indicate that the carrying amount of these assets may not be recoverable, the Company would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) were less than the carrying amount of the assets, the Company would recognize an impairment charge to reduce such assets to their fair value. In fiscal 2016, 2015 and 2014, there were no impairment charges relating to the Company’s long-lived assets as there were no events or circumstances that occurred that affected the recoverability of such assets. 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 our proprietary surface modification and device drug delivery technologies to customers; the vast majority (typically in excess of 90%) of revenue in the “royalties and license fees” category is in the form of royalties; (2) product revenues from the sale of reagent chemicals to licensees, the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets as well as the sale of medical devices and related products (such as balloons and catheters) to original equipment manufacturer (OEM) suppliers and distributors; and (3) research and commercial development fees generated on customer projects. Taxes collected from customers and remitted to governmental authorities are excluded from revenue and amounted to $0.1 million for each of the years ended September 30, 2016, 2015 and 2014. 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 consist of direct and distributor sales and are recognized at the time of shipment. 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. Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables requires the Company to: (i) disclose whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; (ii) allocate revenue in an arrangement using estimated selling prices (“ESP”) of deliverables if a vendor does not have vendor-specific objective evidence of selling price (“VSOE”) or third-party evidence of selling price (“TPE”); and (iii) allocate revenue using the relative selling price method. The Company accounts for revenue using a multiple attribution model in which consideration allocated to research and development activities is recognized as performed, and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. Accordingly, in situations where a unit of accounting includes both a license and research and development activities, and when a license does not have stand-alone value, the Company applies a multiple attribution model in which consideration allocated to the license is recognized ratably, consideration allocated to research and development activities is recognized as performed and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. The Company enters into license and development arrangements that may consist of multiple deliverables which could include a license(s) to Surmodics’ technology, research and development activities, manufacturing services, and product sales based on the needs of its customers. For example, a customer may enter into an arrangement to obtain a license to Surmodics’ intellectual property which may also include research and development activities, and supply of products manufactured by Surmodics. For these services provided, Surmodics could receive upfront license fees upon signing of an agreement and granting the license, fees for research and development activities as such activities are performed, milestone payments contingent upon advancement of the product through development and clinical stages to successful commercialization, fees for manufacturing services and supply of product, and royalty payments based on customer sales of product incorporating Surmodics’ technology. The Company’s license and development arrangements generally do not have refund provisions if the customer cancels or terminates the agreement. Typically all payments made are non-refundable. The Company is required to evaluate each deliverable in a multiple element arrangement for separability. The Company is then required to allocate revenue to each separate deliverable using a hierarchy of VSOE, TPE, or ESP. In many instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be a result of the Company infrequently selling each element separately or having a limited history with multiple element arrangements. When VSOE cannot be established, the Company attempts to establish a selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. When the Company is unable to establish a selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for highly customized offerings. The Company determines ESP for undelivered elements by considering multiple factors including, but not limited to, market conditions, competitive landscape and past pricing arrangements with similar features. The determination of ESP is made through consultation with the Company’s management, taking into consideration the marketing strategies for each business unit. Deferred Revenue Amounts received prior to satisfying the above revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets, with deferred revenue to be recognized beyond one year being classified as non-current deferred revenue. The Company had current and non-current deferred revenue of $0.4 million and $0.3 million for September 30, 2016 and 2015, respectively. Customer overpayments are accounted for as a liability until all criteria for revenue recognition have been met. As of September 30, 2016, and 2015 the Company has recorded a liability of $0.9 million and $0.1 million, respectively, for customer royalty overpayments. Customer Concentrations The Company’s licensed technologies provide royalty revenue, which represents the largest revenue stream to the Company. The Company has licenses with a diverse base of customers and certain customers have multiple products using the Company’s technology. Medtronic plc (“Medtronic”) is the Company’s largest customer at approximately 25%, 26% and 19% of total consolidated revenue for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Medtronic has several separately licensed products that generate royalty revenue for Surmodics, none of which represented more than 6% of Surmodics’ total revenue. No other individual customer using licensed technology constitutes more than 10% of the Company’s total revenue. The Company’s licensing agreements with many of its customers, including most of its significant customers, cover many licensed products that each separately generates royalty revenue. This structure reduces the potential risk to the Company’s operations that may result from reduced sales (or the termination of a license) of a single product for any specific customer. Income Taxes The Company accounts for income taxes under the asset and liability method prescribed in accounting guidance. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in this assessment. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change. Research and Development Research and development costs are expensed as incurred. Some research and development costs are related to third-party contracts, and the related revenue is recognized as described in “Revenue Recognition” above. Costs associated with customer-related research and development include specific project direct labor costs and material expenses as well as an allocation of overhead costs based on direct labor dollars. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates. 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”). The loss from discontinued operations net of income taxes in fiscal 2014 related to a litigation settlement completed during that fiscal year. Pharmaceuticals discontinued operations used operating cash of less than $0.1 million in fiscal 2015. Cash generated from financing activities of less than $0.1 million in fiscal 2015 related to transfers of cash from continuing operations of Surmodics and consisted of cash used to make payments on accrual balances. There was no discontinued operations activity in fiscal 2016. Income 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 resul

Business Combinations

Business Combinations	12 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Business Combinations	3. Business Combinations For all business combinations, the Company records all assets and liabilities of the acquired business, including goodwill and other identified intangible assets, their respective fair values as of the acquisition date. Contingent consideration, if any, is recognized at its fair value on the acquisition date and changes in fair value are recognized in earnings until settlement. Acquisition-related transaction costs are expensed as incurred. Creagh Medical Ltd. On November 20, 2015, the Company acquired 100% of the outstanding common shares and voting shares of Creagh Medical located in Ballinasloe, Ireland. The results of Creagh Medical’s operations have been included in the Company’s consolidated financial statements as of the Creagh Medical acquisition date. The acquisition was financed with cash on hand and contingent seller financing. The Company acquired Creagh Medical for up to €30 million (approximately $32 million as of the acquisition date), including an upfront payment of €18 million (approximately $19.3 million as of the acquisition date), and up to €12 million (approximately $12.8 million as of the acquisition date) based on achievement of revenue and value-creating operational milestones through September 30, 2018. The payment of the milestones, if any, will occur in the quarter ending December 31, 2018. As of September 30, 2016, the Company has paid $18.4 million in cash for this acquisition. Total transaction, integration and other costs associated with the Creagh Medical acquisition aggregated $2.7 million for the fiscal year ended September 30, 2016. The operating results for Creagh Medical are included in the Medical Device segment. Creagh Medical designs and manufactures high-quality percutaneous transluminal angioplasty (“PTA”) balloon catheters. Since 2006, Creagh Medical has grown its technical and product capability with PTA products approved throughout the world, including Europe, the United States, and Japan. With these resources, the Company is uniquely positioned to offer a total solutions approach from product design and development through in-house extrusion, balloon forming, top-assembly and packaging and regulatory capabilities to approved products for exclusive distribution. The purchase price of Creagh Medical consisted of the following (in thousands) Cash paid $ 18,449 Debt assumed 761 Contingent consideration 9,064 Total purchase price 28,274 Less cash and cash equivalents acquired (251 ) Total purchase price, net of cash acquired $ 28,023 The purchase accounting allocation of assets acquired and liabilities assumed was finalized during the fourth quarter of fiscal 2016. During the measurement period, which ended September 30, 2016, certain insignificant adjustments were made from amounts previously reported to finalize Creagh’s preliminary fair value estimates related primarily to other current assets, intangible assets, goodwill, certain property value, contingent liabilities and the related deferred tax impacts. The following table summarizes the final allocation of the purchase price to the fair values assigned to the assets acquired and the liabilities assumed at the date of the Creagh Medical acquisition: Fair Value (Dollars in thousands) Estimated Useful Life (In years) Current assets $ 896 N/A Property and equipment 634 1.0-10.0 Trade name 75 N/A Developed technology 1,787 7.0 In-process research and development 942 N/A Customer relationships 11,119 7.0-10.0 Other noncurrent assets 81 N/A Current liabilities (942 ) N/A Deferred tax liabilities (9 ) N/A Net assets acquired 14,583 Goodwill 13,440 N/A Total purchase price, net of cash acquired $ 28,023 The Creagh Medical goodwill is a result of acquiring and retaining the Creagh Medical existing workforce and expected synergies from integrating their business into the Company’s Medical Device segment. The goodwill is not deductible for tax purposes. NorMedix, Inc. On January 8, 2016, the Company acquired 100% of the shares of NorMedix, a privately owned design and development company focused on ultra thin-walled, minimally invasive catheter technologies based in Plymouth, Minnesota. The acquisition was financed with cash on hand and contingent seller financing. The Company acquired NorMedix for up to $14.0 million, including an upfront payment of $7.0 million, and up to $7.0 million based on achievement of revenue and value-creating operational milestones through September 30, 2019. Contingent consideration associated with the NorMedix transaction is payable as earned. This acquisition strengthens the Company’s vascular device expertise and Research and Development (“R&D”) capabilities. This acquisition positions the Company to make significant progress on its strategy to offer whole-product solutions to medical device customers, while continuing its commitment to consistently deliver innovation in coating technologies. Total transaction, integration and other costs associated with the NorMedix acquisition aggregated $0.3 million for the year ended September 30, 2016. The operating results for NorMedix are included in the Medical Device segment. The purchase price of NorMedix consisted of the following (in thousands) Cash paid $ 6,905 Contingent consideration 3,520 Total purchase price 10,425 Less cash and cash equivalents acquired (17 ) Total purchase price, net of cash acquired $ 10,408 The purchase accounting allocation of assets acquired and liabilities assumed was finalized during the fourth quarter of fiscal 2016. During the measurement period, which ended September 30, 2016, certain insignificant adjustments were made from amounts previously reported to finalize NorMedix’s preliminary fair value estimates related primarily to working capital, intangible assets, goodwill, certain property value, contingent liabilities and the related deferred tax impacts. The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and the liabilities assumed at the date of the NorMedix acquisition: Fair Value (Dollars in thousands) Estimated Useful Life (In years) Net current assets $ 113 N/A Property and equipment 60 N/A Developed technology 6,850 10.0-14.0 Customer relationships 900 4.0 Deferred tax asset 690 N/A Other noncurrent asset 13 N/A Accounts payable (187 ) N/A Deferred tax liabilities (2,483 ) N/A Net assets acquired 5,956 Goodwill 4,452 N/A Total purchase price, net of cash acquired $ 10,408 The NorMedix goodwill is a result of acquiring and retaining the NorMedix existing workforce and expected synergies from integrating their business into the Medical Device segment. The goodwill is not deductible for tax purposes. The Company has realized $4.1 million of revenue and a loss of $3.1 million from the Creagh Medical and NorMedix operations since they were acquired, which are reflected in the Company’s consolidated statement of income for the year ended September 30, 2016. Unaudited Pro Forma Results The following unaudited pro forma financial information presents the combined results of operation of the Company as if the acquisitions of Creagh Medical and NorMedix had occurred as of October 1, 2014. The fiscal 2016 unaudited pro forma financial information includes adjustments for additional amortization expense on identifiable intangible assets of $2.8 million and contingent consideration accretion expense of $1.8 million, and to eliminate non-recurring, transactional professional fees of $3.2 million, and the related tax effect impact of $0.2 million. The fiscal 2015 unaudited pro forma financial information includes adjustments for additional amortization expense on identifiable intangible assets of $3.2 million and contingent consideration accretion expense of $2.1 million and tax effect impact of $0.5 million. The tax impact of the adjustments in all periods reflects no tax benefit from either the contingent consideration accretion or a significant portion of the transaction related costs in fiscal 2016 as they are not deductible for tax purposes. Further, Creagh Medical amortization expense does not reflect an Irish tax benefit as the Company acquired a net operating loss carryforward as of the acquisition date that was offset in the aggregate by deferred tax liabilities and valuation allowance. Therefore, the amortization of Creagh Medical intangible assets results in an increase in deferred tax liabilities with a corresponding increase to a deferred tax valuation allowance. NorMedix amortization expense reflects a tax benefit based on the Company’s incremental U.S. tax rate. The unaudited pro forma financial information is not necessarily indicative of what the Company’s consolidated results of operations actually would have been had the acquisition occurred at the beginning of each year. Additionally, the unaudited pro forma financial information does not attempt to project the future results of operations of the combined company. Year Ended September 30, 2016 2015 (In thousands, except per share data) (Unaudited) Revenue $ 72,416 $ 65,432 Net income $ 12,315 $ 6,583 Per share amounts: Basic net income per share $ 0.95 $ 0.51 Diluted net income per share $ 0.93 $ 0.50

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
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 U.S. 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 consolidated 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 did not have any Level 1 assets as of September 30, 2016 or 2015. 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 as of September 30, 2016 and September 30, 2015 consisted of money market funds, commercial paper instruments and corporate debt securities. Fair market values for these assets are based on quoted vendor prices and broker pricing where all significant inputs are observable. To ensure the accuracy of quoted vendor prices and broker pricing, the Company performs regular reviews of investment returns to industry benchmarks and sample tests of individual securities to validate quoted vendor prices with other available market data. 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. Included in Level 3 liabilities as of September 30, 2016 is a $14.5 million contingent consideration liability, of which $13.6 million is noncurrent, related to achievement of revenue and value-creating milestones in future periods. There were no Level 3 assets as of September 30, 2016 or 2015. 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. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximates fair value as of September 30, 2016 and 2015 due to the short maturity nature of these instruments. 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 September 30, 2016 (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, 2016 Assets Cash equivalents $ — $ 22,160 $ — $ 22,160 Available-for-sale securities — 21,954 $ 21,954 Total assets $ — $ 44,114 $ — $ 44,114 Liabilities Contingent consideration $ — $ — $ (14,517 ) $ (14,517 ) Total liabilities $ — $ — $ (14,517 ) $ (14,517 ) The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 (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, 2015 Assets: Cash equivalents $ — $ 53,591 $ — $ 53,591 Total assets measured at fair value $ — $ 53,591 $ — $ 53,591 Included in Level 3 fair value measurements as of September 30, 2016 is a $14.5 million contingent consideration liability related to achievement of revenue and value-creating milestones associated with the Creagh Medical and NorMedix acquisitions. The following table summarizes the changes in the contingent consideration liability for the year ended September 30, 2016: (Dollars in thousands) Contingent consideration liability at September 30, 2015 $ — Additions 12,584 Fair value adjustments 70 Settlements — Interest accretion 1,422 Foreign currency translation 441 Contingent consideration liability at September 30, 2016 $ 14,517 There were no transfers of assets or liabilities to or from amounts measured using Level 3 fair value measurements during fiscal 2016 or 2015. 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 securities — These assets are classified as Level 2 and include commercial paper instruments and corporate bonds. These securities are valued based on quoted vendor prices in active markets underlying the securities. Contingent consideration — The contingent consideration liabilities were determined based on discounted cash flow analyses that included revenue estimates, probability of strategic milestone achievement and a discount rate, which are considered significant unobservable inputs as of the acquisition dates and September 30, 2016. For the revenue-based milestones, the Company discounted forecasted revenue by 14.1% to 22.8%, which represents the Company’s weighted average cost of capital for each transaction, adjusted for the short-term nature of the cash flows. The resulting present value of revenue was used as an input into an option pricing approach, which also considered the Company’s risk of non-payment of the revenue-based milestones. Non-revenue milestones were projected to have a 25% to 100% probability of achievement and related payments were discounted using the Company’s estimated cost of debt, or 5.6% to 6.7%. To the extent that actual results differ from these estimates, the fair value of the contingent consideration liabilities could change significantly. Included in the consolidated statement of income for the year ended September 30, 2016 is $1.5 million of expense related to the accretion of the contingent consideration. The €12 million (approximately $12.8 million September 30, 2016) Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company’s investments in non-marketable securities of private companies are accounted for using the cost method as the Company does not exert significant influence over the investees’ operating or financial activities. These investments are measured at fair value on a non-recurring basis when they are deemed to be other-than-temporarily impaired. In determining whether a decline in value of non-marketable equity investments in private companies has occurred and is other-than-temporary, an assessment is made by considering available evidence, including the general market conditions in the investee’s industry, the investee’s product development status and subsequent rounds of financing and the related valuation and/or the Company’s participation in such financings. The Company also assesses the investee’s ability to meet business milestones and the financial condition and near-term prospects of the individual investee, including the rate at which the investee is using its cash and the investee’s need for possible additional funding at a potentially lower valuation. The valuation methodology for determining the decline in value of non-marketable equity securities is based on inputs that require management judgment and are Level 3 inputs. In the fourth quarter of fiscal 2014, the Company recognized an other-than-temporary impairment loss of $1.2 million based on capital funding initiatives and current operating conditions of ThermopeutiX.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stockholders' Equity	5. Stockholders’ Equity Repurchase of Common Stock Shares are repurchased from time to time to support the Company’s stock-based compensation programs and to return capital to stockholders. The Company accounts for repurchases of common stock using the par value method. As of September 30, 2013, $11.5 million remained from Board authorized repurchase authorization. During fiscal 2014, the Company repurchased an aggregate of 485,777 shares of common stock for a total of $11.5 million under this authorization at an average price of $23.77 per share. On November 5, 2014, the Company’s Board of Directors authorized it to repurchase up to $30.0 million of the Company’s outstanding common stock in open-market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, tender offers or by any combination of such methods. The authorization has no fixed expiration date. As part of the accelerated share repurchase (“ASR”) program discussed below, the Company repurchased 758,143 shares of common stock on November 11, 2014 and 89,721 of common stock on July 8, 2015, the date that the ASR program was completed. As adjusted for the final ASR program settlement, $10.0 million remains available for future repurchases under the November 5, 2014 authorization. On November 11, 2014, the Company entered into an ASR program with Wells Fargo Bank, National Association. In connection with this agreement, the Company made a $20.0 million payment to the bank and immediately received an initial delivery of 758,143 shares of its common stock with a fair value of $16.0 million as of the purchase date. Effective as of the date of the initial share purchase, the transaction was accounted for as a share retirement, resulting in a reduction of common stock of less than $0.1 million, additional paid-in capital of $2.5 million and retained earnings of $13.5 million. The remaining $4.0 million of the Company’s payment was also reported as a reduction in retained earnings. The specific number of shares that the Company ultimately purchased under the ASR agreement was based on the volume weighted average price of the Company’s common stock during the purchase period, less an agreed upon discount. In the aggregate the Company purchased 847,864 shares under the ASR program for an average price of $23.59 per share. Based on the facts associated with the agreement, the forward contract was indexed to the Company’s common stock and met the U.S. GAAP requirements to be classified as permanent equity as of July 8, 2015, the date the ASR was completed. On November 6, 2015, the Company’s Board of Directors authorized the repurchase of up to $20.0 million of the Company’s outstanding common stock in open-market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions, tender offers or by any combination of such methods. With this authorization, the Company may currently repurchase up to $30.0 million of its outstanding stock. The authorization has no fixed expiration date.

Stock-Based Compensation Plans

Stock-Based Compensation Plans	12 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation Plans	6. Stock-Based Compensation Plans The Company has stock-based compensation plans under which it grants stock options, restricted stock awards, performance share awards, restricted stock units and deferred stock units. Accounting guidance requires all share-based payments to be recognized as an expense, based on their fair values, over the requisite service period. The Company’s stock-based compensation expenses for the years ended September 30 were allocated to the following expense categories (in thousands): 2016 2015 2014 Product costs $ 22 $ 24 $ 16 Research and development 324 226 175 Selling, general and administrative 3,498 2,131 3,146 Total stock-based compensation expense $ 3,844 $ 2,381 $ 3,337 As of September 30, 2016, approximately $3.8 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of approximately 2.1 years. Such costs include $1.7 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 above the minimum levels for each award period. Under the amended 2009 Equity Incentive Plan (“2009 Plan”), the Company is authorized to issue up to 2,000,000, plus the number of shares that have not yet been awarded under the 2003 Equity Incentive Plan, or were awarded and subsequently returned to the pool of available shares under the 2003 Equity Incentive Plan pursuant to its terms. As of September 30, 2016, there were 1,159,754 shares available for future equity awards, including stock options, restricted stock awards, performance share awards, and restricted stock and deferred stock units, under the 2009 Plan. Stock Option Awards The Company uses the Black-Scholes option pricing model to determine the weighted average grant date fair value of stock options. Weighted average per share fair values of stock options granted during fiscal 2016, 2015 and 2014 were $6.95, $7.26 and $8.72, respectively. The assumptions used as inputs in the model for the years ended September 30 were as follows: 2016 2015 2014 Risk-free interest rates 1.89 % 1.43 % 1.19 % Expected life 4.6 years 4.5 years 4.6 years Expected volatility 37 % 43 % 45 % Dividend yield 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 0.0% 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. With respect to members of the Board, non-qualified stock options generally become exercisable on a pro-rata basis over the one-year period following the date of grant. With respect to employees, non-qualified stock options generally become exercisable with respect to 25% of the shares on each of the first four anniversaries following the grant date. The stock-based compensation table above includes stock option expenses recognized related to these awards, which totaled $1.2 million, $1.2 million and $2.3 million during fiscal 2016, 2015 and 2014, respectively. The Company modified non-qualified stock option awards granted to Board members in February 2014, which resulted in acceleration of the stock option vesting period. The modification changed the vesting period to a pro-rata basis over a one-year period from a four-year period and resulted in an increase to stock option expense of $0.5 million in fiscal 2014. As of September 30, 2016, the aggregate intrinsic value of the option shares outstanding and option shares exercisable was $7.9 million and $4.3 million, respectively. As of September 30, 2016, the average remaining contractual life of options outstanding and options exercisable was 4.1 and 2.9 years, respectively. The total pre-tax intrinsic value of options exercised during fiscal 2016 and 2015 was $5.1 million and $1.7 million, respectively. 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 year end. The following table summarizes all stock options activity and stock options outstanding and exercisable under the stock option plans during fiscal 2016, 2015 and 2014: Number of Shares Weighted Average Exercise Price Outstanding at September 30, 2013 1,368,984 $ 20.13 Granted 138,837 22.71 Exercised (190,434 ) 14.42 Forfeited and expired (106,768 ) 31.26 Outstanding at September 30, 2014 1,210,619 20.35 Granted 164,401 21.24 Exercised (166,422 ) 14.54 Forfeited and expired (90,590 ) 35.35 Outstanding at September 30, 2015 1,118,008 20.10 Granted 241,582 20.63 Exercised (437,850 ) 15.68 Forfeited and expired (94,415 ) 31.52 Outstanding at September 30, 2016 827,325 $ 21.30 Exercisable at September 30, 2016 434,876 $ 21.50 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 $0.3 million, $0.3 million and $0.2 million during fiscal 2016, 2015 and 2014, respectively. The following table summarizes all restricted stock awards activity during fiscal 2016, 2015 and 2014: Number of Shares Weighted Average Grant Price Balance at September 30, 2013 5,234 $ 23.88 Granted 22,155 22.67 Vested (7,991 ) 23.98 Forfeited (774 ) 22.58 Balance at September 30, 2014 18,624 22.45 Granted 18,073 21.84 Vested (7,606 ) 22.28 Forfeited (1,316 ) 22.16 Balance at September 30, 2015 27,775 22.12 Granted 20,108 20.14 Vested (12,311 ) 22.19 Forfeited (2,439 ) 21.17 Balance at September 30, 2016 33,133 $ 20.96 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. The Performance Shares are not issued and outstanding until the performance objectives are met. The Organization and Compensation Committee of the Board of Directors (the “Committee”) approves the performance objectives used for executive compensation programs, which objectives were cumulative earnings per share and cumulative revenue for the three-year performance periods for fiscal 2013 awards (2013 – 2015) , The fair values of the Performance Shares, at target, were $1.3 million, $0.9 million and $0.9 million for grants awarded in fiscal 2016, 2015 and 2014, respectively. The aggregate number of shares that could be awarded to key employees if the minimum, target and maximum performance goals are met, based upon the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 2014 - 2016 7,861 39,303 78,606 Fiscal 2015 – 2017 8,440 42,199 84,398 Fiscal 2016 – 2018 13,268 66,338 132,676 The Fiscal 2014 – 2016 awards are expected to be finalized in December 2016 at an estimated 38,517 shares based on performance objective results. Based on the Company’s performance through September 30, 2016, it is estimated that approximately 37,220 shares may be earned for the Fiscal 2015 – 2017 performance period and that approximately 96,654 shares may be earned for the Fiscal 2016 – 2018 performance period. 1999 Employee Stock Purchase Plan Under the amended 1999 Employee Stock Purchase Plan (“Stock Purchase Plan”), the Company is authorized to issue up to 600,000 shares of common stock. All full-time and part-time U.S. 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 September 30, 2016 and 2015, there were less than $0.1 million of employee contributions in accrued liabilities in the consolidated balance sheets. Stock compensation expense recognized related to the Stock Purchase Plan for the fiscal years ended September 30, 2016, 2015 and 2014 totaled $0.1 million or less for each year. The stock-based compensation table above includes the Stock Purchase Plan expenses. Restricted Stock and Deferred Stock Units The Company awarded 18,877 and 10,678 restricted stock units (“RSU”) in fiscal 2016 and 2015, respectively, under the 2009 Plan to non-employee directors and certain key employees in foreign jurisdictions with forfeitures of 1,609 and 3,068 RSUs in fiscal 2016 and 2015, respectively. The Company modified the RSU awards granted to Board members in February 2014, which resulted in acceleration of the RSU award vesting period. The modification changed the vesting period to a pro-rata basis over a one-year period from a three-year period and resulted in an increase to RSU award expense of $0.2 million in fiscal 2014. 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 expense 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 RSU expenses recognized related to these awards, which totaled $0.2 million, $0.4 million and $0.1 million for fiscal 2016, 2015 and 2014, respectively. Directors can also elect to receive their annual fees for services to the Board in deferred stock units (“DSUs”). Certain directors elected this option beginning on January 1, 2013. As of September 30, 2016 and 2015, outstanding DSUs totaled 21,077 and 17,005, respectively, with an estimated fair value of $0.6 million. These DSUs are fully vested. Stock-based compensation expense related to DSU awards, totaled $0.2 million, $0.1 million and $0.1 million in fiscal 2016, 2015 and 2014, respectively.

Revolving Credit Facility

Revolving Credit Facility	12 Months Ended
	Sep. 30, 2016
Text Block [Abstract]
Revolving Credit Facility	7. Revolving Credit Facility On November 4, 2013, the Company entered into a three-year $20.0 million secured revolving credit facility. The Company’s obligations under the credit facility were secured by substantially all of its and its subsidiaries’ assets, other than intellectual property and real estate. There were no borrowings on the facility during fiscal 2016. On November 2, 2016, the Company amended and restated the revolving credit facility. The new agreement increased the available principle to $30.0 million and extended the maturity of the previous facility by three-years. In connection with the credit facility, the Company is required to maintain certain financial covenants related to a maximum leverage ratio and a minimum EBITDA amount and to comply with nonfinancial covenants. As of September 30, 2016, the Company has no debt outstanding and was in compliance with all financial covenants under the then-existing credit facility.

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes Income taxes from continuing operations in the accompanying consolidated statements of income for the fiscal years ended September 30 are as follows (in thousands): 2016 2015 2014 Current provision: Federal $ 6,550 $ 6,065 $ 6,470 State and foreign 152 136 147 Total current provision 6,702 6,201 6,617 Deferred provision (benefit): Federal 169 58 (347 ) State and foreign 92 35 (5 ) Total deferred provision (benefit) 261 93 (352 ) Total provision $ 6,963 $ 6,294 $ 6,265 The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 35% for the fiscal years ended September 30 and the Company’s effective tax rate from continuing operations is as follows (in thousands): 2016 2015 2014 Amount at statutory U.S. federal income tax rate $ 5,932 $ 6,385 $ 6,465 Change because of the following items: State income taxes, net of federal benefit 142 67 118 Stock-based compensation (607 ) 16 21 Valuation allowance change (2,500 ) 348 120 Tax reserve change 258 34 (121 ) Federal manufacturing deduction (280 ) (268 ) (235 ) Federal research and development credit (571 ) (74 ) (67 ) Gain on strategic investment and corporate subsidiary 2,630 — — Foreign rate differential 622 — — Acquisition-related transaction costs 768 — — Contingent consideration accretion 522 — — Other 47 (214 ) (36 ) Income tax provision $ 6,963 $ 6,294 $ 6,265 The federal research and development tax credit for fiscal 2016, 2015 and 2014 includes the benefit generated for the periods from October 1, 2015 to December 31, 2015, October 1, 2014 to December 31, 2014 and October 1, 2013 to December 31, 2013, respectively, prior to the expiration of the benefit in each period. During fiscal 2016, the Company monetized $7.5 million of capital losses realized in prior years by accelerating built-in gains in the Company’s IVD subsidiary. For tax purposes, this resulted in an increase in the Company’s tax basis in the IVD subsidiary and a $2.6 million reduction in both deferred tax assets and the valuation allowance as of September 30, 2016. The Company recorded an income tax benefit from discontinued operations of $0.1 million in fiscal 2014 associated with the sale of discontinued operations assets completed in fiscal 2012 As discussed in Note 2, the Company adopted new accounting guidance for stock-based compensation during the fourth quarter of fiscal 2016. Amendments related to accounting for excess tax benefits have been adopted prospectively, effective October 1, 2015, resulting in recognition of excess tax benefits against income tax expenses in the consolidated statement of income rather than additional paid-in capital of $0.6 million for the year ended September 30, 2016. During fiscal 2015 and 2014, excess tax benefits totaling $0.4 million and $0.2 million, respectively, were recorded in additional paid-in capital. The components of deferred income taxes consisted of the following as of September 30 and result from differences in the recognition of transactions for income tax and financial reporting purposes (in thousands): 2016 2015 Depreciable assets $ (2,257 ) $ 1,618 Deferred revenue 80 96 Accruals and reserves 1,153 835 Stock-based compensation 3,113 4,194 Impaired strategic investments 2,701 4,186 Capital loss carryforward 63 1,456 NOL carryforward 3,324 — Federal and state R&D credit 110 Other 587 586 Valuation allowance (3,847 ) (5,721 ) Total deferred tax assets 5,027 7,250 Less current deferred tax assets — (546 ) Noncurrent deferred tax assets $ 5,027 $ 6,704 As of September 30, 2016 and 2015, the Company recorded a deferred tax asset valuation allowance of $3.9 million and $5.7 million, respectively. The valuation allowance is primarily related to other-than-temporary impairment losses on strategic investments, state R&D credit carryforwards, and net operating loss carryforwards of Creagh Medical. Unrecognized tax benefits are the differences between a tax position taken, or expected to be taken in a tax return, and the benefit recognized for accounting purposes pursuant to accounting guidance. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): 2016 2015 2014 Beginning of fiscal year $ 1,248 $ 1,216 $ 1,300 Increases in tax positions for prior years 77 50 43 Decreases in tax positions for prior years (21 ) (10 ) (1 ) Increases in tax positions for current year 365 146 149 Lapse of the statute of limitations (161 ) (154 ) (275 ) End of fiscal year $ 1,508 $ 1,248 $ 1,216 The total amount of unrecognized tax benefits excluding interest and penalties that, if recognized, would affect the effective tax rate as of September 30, 2016, 2015 and 2014, respectively, are $1.2 million, $0.9 million and $1.0 million. Currently, the Company does not expect the liability for unrecognized tax benefits to change significantly in the next 12 months and has classified the above balances on the consolidated balance sheets in other long-term liabilities. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. As of September 30, 2016, 2015 and 2014, a gross balance of $0.6 million, $0.6 million and $0.7 million, respectively, has been accrued related to the unrecognized tax benefits balance for interest and penalties. The Company files income tax returns, including returns for its subsidiaries, in the U.S. federal jurisdiction and in various state jurisdictions as well as several non-U.S. jurisdictions. Uncertain tax positions are related to tax years that remain subject to examination. The Internal Revenue Service (“IRS”) completed an examination of the Company’s U.S. income tax return for fiscal 2012 in the fourth quarter of fiscal 2014 with a payment made associated with a timing adjustment. U.S. income tax returns for years prior to fiscal 2013 are no longer subject to examination by federal tax authorities. For tax returns for state and local jurisdictions, the Company is no longer subject to examination for tax years generally before fiscal 2006. For tax returns for non-U.S. jurisdictions, the Company is no longer subject to income tax examination for years prior to 2011. Additionally, the Company has been indemnified of liability for any taxes relating to Creagh Medical and NorMedix for periods prior to the respective acquisition dates, pursuant to the terms of the related share purchase agreements. As of September 30, 2016 and 2015 there were no undistributed earnings in foreign subsidiaries.

Defined Contribution Plan

Defined Contribution Plan	12 Months Ended
	Sep. 30, 2016
Compensation And Retirement Disclosure [Abstract]
Defined Contribution Plan	9. Defined Contribution Plan The Company has a 401(k) retirement and savings plan for the benefit of qualifying U.S. employees. The Company matches 50% of employee contributions on the first 6% of eligible compensation. Company contributions totaling $0.3 million, $0.3 million and $0.2 million have been expensed in the years ended September 30, 2016, 2015 and 2014, respectively.

Amounts Reclassified Out of Acc

Amounts Reclassified Out of Accumulated Other Comprehensive Income	12 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Amounts Reclassified Out of Accumulated Other Comprehensive Income	10. Amounts Reclassified Out of Accumulated Other Comprehensive Income Amounts reclassified out of Accumulated Other Comprehensive Income (“AOCI”) totaled $0.3 and $0.1 million on a pre-tax basis for the fiscal year ended September 30, 2015 and 2014, respectively. There were no amounts reclassified out of AOCI for fiscal 2016. The amounts reclassified out of AOCI for fiscal 2015 were 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 consolidated statements of income.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. 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. In the Company’s Quarterly Reports on Form 10-Q for the periods ended March 31, 2015, and June 30, 2015, it was disclosed a notice was received from a customer alleging an overpayment of approximately $5.7 million in royalties covering the period January 2009 through September 2014 (the “Claim”). On September 29, 2015, the Company entered into a settlement and release agreement resolving the Claim. Under the agreement, among other things, (a) the Company agreed to pay the customer $2.5 million to settle the Claim, (b) the customer agreed to pay the Company approximately $0.5 million for undisputed royalties that were unpaid and were not previously recognized, during fiscal 2015, and (c) the Company and the customer agreed to a mutual release relating to the Claim and certain other claims by the Company for royalties owed by the customer. In connection with the settlement, in the fourth quarter of fiscal 2015, the Company recognized revenue of approximately $0.5 million and recorded a charge of approximately $2.5 million. InnoRx, Inc. In January 2005, the Company entered into a merger agreement whereby the Company acquired all of the assets of InnoRx, Inc. (“InnoRx”), an early stage company developing drug delivery devices and therapies for the ophthalmology market. The Company 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 September 30, 2016 as the milestones have not been achieved and the probability of achievement is remote. InnoCore Technologies BV. In March 2006, the Company entered into a license agreement whereby Surmodics obtained an exclusive license to a drug delivery coating for licensed products within the vascular field which included peripheral, coronary and neurovascular biodurable stent product. The license requires an annual minimum payment of 200,000 euros (equivalent to $224,000 using a euro to US $ exchange rate of 1.1222 as of September 30, 2016) until the last patent expires which is currently estimated to be September 2027. The total minimum future payments associated with this license are approximately $2.7 million. The license is currently utilized with one of Surmodics’ drug delivery customers. PR Pharmaceuticals, Inc. In November 2008, SurModics Pharmaceuticals 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 owed 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. In the fourth quarter of fiscal 2014, Surmodics submitted a bid of less than $0.1 million related to the Company’s indemnification obligations to Evonik related to a contingent consideration matter associated with the PR Pharma intellectual property purchased by Evonik in the Pharma Sale. Surmodics was notified in October 2014 that the bid was accepted with a payment made at that time. The indemnification period expired on November 17, 2016 with no additional claims. Operating Leases. The Company leases certain facilities under noncancelable operating lease agreements. Rent expense for the years ended September 30, 2016, 2015 and 2014 was $0.1 million for each period. Annual commitments pursuant to operating lease agreements are as follows Year Ended September 30, 2017 $ 135 2018 114 2019 72 2020 74 2021 12 Thereafter — Total minimum lease payments $ 407

Reportable Segment Information

Reportable Segment Information	12 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Reportable Segment Information	12. Reportable Segment Information The accounting standards for reporting information about operating segments define operating segments 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. For financial accounting and reporting purposes, the Company reports its results for the two reportable 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; international cardiology and peripheral balloon design, development and manufacturing; 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, 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. During fiscal 2016, the Company acquired Creagh Medical and NorMedix, which are included in the Medical Device segment. The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, for the years ended September 30, as follows (in thousands): 2016 2015 2014 Revenue: Medical Device $ 53,202 $ 45,944 $ 43,068 In Vitro Diagnostics 18,164 15,954 14,371 Total revenue $ 71,366 $ 61,898 $ 57,439 Operating income (loss): Medical Device $ 16,975 $ 21,192 $ 22,636 In Vitro Diagnostics 7,115 4,484 3,459 Total segment operating income 24,090 25,676 26,095 Corporate (7,231 ) (6,587 ) (7,519 ) Total operating income from continuing operations $ 16,859 $ 19,089 $ 18,576 Depreciation and amortization: Medical Device $ 3,261 $ 1,138 $ 1,136 In Vitro Diagnostics 789 873 850 Corporate 823 794 729 Total depreciation and amortization $ 4,873 $ 2,805 $ 2,715 The Corporate category includes expenses that are not fully allocated to Medical Device and In Vitro Diagnostics segments. These Corporate costs are related to functions, such as executive management, corporate accounting, legal, human resources and Board of Directors. Corporate may also include expenses, such as litigation, which are not specific to a segment and thus not allocated to the operating segments. Corporate segment results above for fiscal 2014 include increased stock option expense of $0.9 million related to a modification of equity awards granted to Board members. 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. Major Customers Revenue from customers that equaled or exceeded 10% of total revenue was as follows for the years ended September 30: 2016 2015 2014 Medtronic 25 % 26 % 19 % The revenue from the customer listed is derived from two primary sources: licensing and product sales (primarily in the Medical Device segment). The percentage of revenue increased in fiscal 2015 as a result of Medtronic’s merger with Covidien PLC on January 26, 2015. Geographic Revenue Geographic revenue was as follows for the years ended September 30: 2016 2015 2014 Domestic 79 % 77 % 78 % Foreign 21 % 23 % 22 %

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Sep. 30, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data (Unaudited)	13. Quarterly Financial Data (Unaudited) The following is a summary of the unaudited quarterly results for the years ended September 30, 2016 and 2015 (in thousands, except per share data). First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2016 Total revenue $ 16,541 $ 16,699 $ 19,972 $ 18,154 Operating income 3,939 2,240 6,597 4,083 Net income (1) 2,653 821 3,934 2,577 Basic net income per share (2): 0.20 0.06 0.31 0.20 Diluted net income per share (2): 0.20 0.06 0.30 0.20 Fiscal 2015 Total revenue $ 14,205 $ 14,415 $ 15,914 $ 17,364 Operating income 5,034 3,932 5,857 4,266 Net income 3,614 3,051 3,924 1,358 Basic net income per share (2): 0.27 0.24 0.30 0.10 Diluted net income per share (2): 0.27 0.23 0.30 0.10 (1) Previously reported quarterly net income amounts for the first through third quarters of fiscal 2016 have been adjusted for the effects of the adoption of ASU 2016-09 (see Note 2), as this guidance was adopted in the fourth quarter of fiscal 2016 retroactive to the beginning of the fiscal year. The adjustments to net income were approximately $0.1 million each quarter. Additionally, basic and diluted net income per share for the first quarter were adjusted from $0.19 to $0.20 as a result of the adoption of the ASU. (2) The sum of the quarterly income per share amounts may not equal the annual income per share total because of changes in the weighted average number of shares outstanding that occurred during the year. In the first quarter of fiscal 2016, the Company recorded expense related to acquisition related costs, including due diligence and integration expenses of $2.5 million, related to the acquisitions of Creagh Medical and NorMedix (Note 3). During the second quarter of fiscal 2016, the Company recorded an out-of-period adjustment of $1.1 million to correct a cumulative overstatement of royalty revenue, of which $1.0 million related to years prior to fiscal 2016. The overstatement was evaluated and concluded to not be material to fiscal 2016, or any prior interim or annual periods. In the third quarter of fiscal 2016, the Company recorded a $2.9 million customer royalty catch-up payment related to periods prior to the third quarter fiscal 2016. In the fourth quarter of fiscal 2016, the Company recorded a $0.5 million reduction of the income tax provision related to the adoption of ASU 2016-09 as discussed in Note 2. In the fourth quarter of fiscal 2015, the Company recorded expense related to the settlement of a claim of $2.5 million, a $1.5 million impairment loss on a strategic investment and recognized $0.8 million in previously contingent royalties. In the third quarter of fiscal 2015, the Company recorded a $0.6 million customer royalty catch-up payment related to periods prior to the third quarter fiscal 2015. In the second quarter of fiscal 2015, the Company recorded a $0.5 million gain on a strategic investment in Intersect ENT shares.

Summary of Significant Accoun22

Summary of Significant Accounting Policies and Select Balance Sheet Information (Policies)	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of financial instruments with maturities of three months or less at the Company’s acquisition date of the security and are stated at cost which approximates fair value and may include money market instruments, certificates of deposit, repurchase agreements and commercial paper instruments.
Investments	Investments Investments consisted principally of commercial paper securities and are classified as available-for-sale as of September 30, 2016. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the consolidated statements of income and reported in the consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the 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. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income. Realized gains and losses from the sales of debt securities, which are included in other income, 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 September September 30, 2016 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 22,019 $ — $ (65 ) $ 21,954 Total $ 22,019 $ — $ (65 ) $ 21,954 During the year ended September 30, 2015, the Company liquidated its investment portfolio to support corporate initiatives, as a result the ending balance of available-for-sale investments as of September 30, 2015 was zero. The following table summarizes sales of available-for-sale securities for the years ended September 30, 2016, 2015 and 2014 (in thousands): 2016 2015 2014 Proceeds from sales $ 2,498 $ 22,199 $ 162,673 Gross realized gains $ — $ 548 $ 134 Gross realized losses $ (2 ) $ (73 ) $ (1 ) There were no held-to-maturity debt securities as of September 30, 2016 or 2015.
Inventories	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 as of September 30 (in thousands): 2016 2015 Raw materials $ 1,766 $ 1,264 Work in-process 492 213 Finished products 1,321 1,502 Total $ 3,579 $ 2,979
Property and Equipment	Property and Equipment Property and equipment are stated at cost, less any impairment, and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company recorded depreciation expense of $2.3 million, $2.0 million and $2.0 million for the years ended September 30, 2016, 2015 and 2014, respectively. The September 30, 2016 and 2015 balances in construction-in-progress include the cost of enhancing the capabilities of the Company’s Ballinasloe, Ireland and Eden Prairie, Minnesota facilities. As assets are placed in service, construction-in-progress is transferred to the specific property and equipment categories and depreciated over the estimated useful lives of the assets. Property and equipment consisted of the following components as of September 30 (in thousands): Useful Life 2016 2015 (In years) Land N/A $ 4,359 $ 4,359 Laboratory fixtures and equipment 3 to 10 15,243 12,941 Buildings and improvements 3 to 20 19,589 16,444 Office furniture and equipment 3 to 10 3,948 3,473 Construction-in-progress 3,441 1,168 Less accumulated depreciation (26,979 ) (25,417 ) Property and equipment, net $ 19,601 $ 12,968
Other Assets	Other Assets Other assets consist principally of the following as of September 30 (in thousands): 2016 2015 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 149 — Other assets, net $ 628 $ 479 In February 2011, the stent technology of Nexeon MedSystems, Inc. (“Nexeon”) 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. The Company’s investment in CeloNova, which was accounted for under the cost method, represented less than a 2% ownership interest. The Company does not exert significant influence over CeloNova’s operating or financial activities. On November 10, 2015 Boston Scientific Corporation announced its intent to acquire CeloNova’s interventional radiology portfolio for $70 million plus potential milestone payments. The Company recognized an other-than-temporary impairment loss of $1.5 million related to its investment in CeloNova in the fourth quarter fiscal 2015 based on the indicated value of this transaction. The Company has invested a total of $1.2 million in ThermopeutiX, Inc. (“ThermopeutiX”), a California-based early stage company developing novel medical devices for the treatment of vascular and neurovascular diseases. In addition to the investment, Surmodics has licensed its hydrophilic and hemocompatible coating technologies to ThermopeutiX for use with its devices. The Company’s investment in ThermopeutiX, which is accounted for under the cost method, represents an ownership interest of less than 20%. The Company does not exert significant influence over ThermopeutiX’s operating or financial activities. In the fourth quarter of fiscal 2014, the Company recognized an other-than-temporary impairment loss of $1.2 million based on capital funding initiatives and current operating conditions of ThermopeutiX. The Company has invested a total of $5.3 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 financing round and market valuations. The balance of the investment of $0.5 million, which is accounted for under the cost method, represents less than a 1% ownership interest. The Company does not exert significant influence over ViaCyte’s operating or financial activities. The Company had invested a total of $2.5 million in Vessix Vascular, Inc. (“Vessix”) and recognized an other-than-temporary impairment loss on this investment totaling $2.4 million in fiscal 2010, based on market valuations and a pending financing round for Vessix. Vessix was purchased by Boston Scientific Corporation in November 2012. The Company recorded a gain of approximately $1.2 million in the consolidated statements of income gains on sale of strategic investments line, on the sale of this investment in the first quarter of fiscal 2013. In fiscal 2014, the Company recorded a $0.7 million gain upon achievement by Vessix of a clinical milestone and a sales milestone for calendar 2013. Total potential maximum additional proceeds of $3.3 million may be received in fiscal 2017, depending on Vessix’s achievement of future sales 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 transferred its original investment of $2,000 in Intersect ENT, Inc. (“Intersect ENT”) out of other assets to short-term available-for-sale investments upon completion of Intersect ENT’s initial public offering (“IPO”) in July 2014. The Company recognized a gain on this investment in other income of $0.5 million during the year ended September 30, 2015 as the investment was sold. The total carrying value of cost method investments is reviewed quarterly for changes in circumstances or the occurrence of events that suggest the Company’s investment may not be recoverable. The fair value of cost method investments is not adjusted if there are no identified events or changes in circumstances that may have a material adverse effect on the fair value of the investment. In the fiscal years ended September 30, 2016, 2015 and 2014, the Company recognized revenue of less than $0.1 million in each period from activity with companies in which it had a strategic investment.
Intangible Assets	Intangible Assets Intangible assets consist principally of acquired patents and technology, customer lists and relationships, licenses and trademarks. The Company recorded amortization expense of $2.4 million, $0.8 million and $0.7 million for the years ended September 30, 2016, 2015 and 2014, respectively. During the year ended September 30, 2016, the Company acquired 100% of the shares of both Creagh Medical Ltd. (“Creagh Medical”) and NorMedix, Inc. (“NorMedix”). These acquisitions (collectively, “Fiscal 2016 Acquisitions”) resulted in an increase in customer lists and relationships, developed technology and in-process research and development (“IPR&D”) of $12.6 million, $8.7 million and $1.0 million, respectively. During the year ended September 30, 2015, the Company acquired certain assets from ImmunO4, LLC resulting in an increase in customer lists, non-compete and other intangible assets of $0.3 million, $0.2 million and $0.1 million, respectively. Intangible assets consisted of the following as of September 30 (in thousands): 2016 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,692 $ (6,123 ) $ 11,569 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,724 (618 ) 8,106 Non-compete 5.0 230 (58 ) 172 Patents and other 16.5 2,321 (1,275 ) 1,046 Subtotal 29,497 (8,604 ) 20,893 Unamortized intangible assets: In-process research and development 987 — 987 Trademarks and trade names 645 — 645 Total $ 31,129 $ (8,604 ) $ 22,525 2015 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists 9.0 $ 5,132 $ (4,363 ) $ 769 Core technology 8.0 530 (530 ) — Non-compete 5.0 230 (12 ) 218 Patents and other 16.8 2,321 (1,128 ) 1,193 Subtotal 8,213 (6,033 ) 2,180 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,793 $ (6,033 ) $ 2,760 Based on the intangible assets in service, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility as of September 30, 2016, estimated amortization expense for each of the next five fiscal years is as follows (in thousands): 2017 $ 2,580 2018 2,534 2019 2,534 2020 2,358 2021 2,219 Future amortization amounts presented above are estimates. Actual future amortization expense may be different as a result of future acquisitions, impairments, completion or abandonment of IPR&D intangible assets, changes in amortization periods, or other factors. The Company defines IPR&D as the value of technology acquired for which the related projects have substance and are incomplete. IPR&D acquired in a business acquisition is recognized at fair value and is capitalized as an indefinite-lived intangible asset until completion of the IPR&D project or abandonment. Upon completion of the development project (generally when regulatory approval to market the product is obtained), an impairment assessment is performed prior to amortizing the asset over its estimated useful life. If the IPR&D projects are abandoned, the related IPR&D assets would be written off. The Company assesses indefinite-lived assets for impairment annually in the fourth quarter and whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Similar to the goodwill impairment test, the indefinite-lived assets impairment test requires the Company to make several estimates about fair value, most of which are based on projected future cash flows. the fair value of certain trade name assets were deemed to be less than their carrying value, resulting in an impairment loss of less than $0.1 million, which was recorded in Selling, general and administrative in the consolidated statements of income for the fiscal year ended September 30, 2016. No other impairment losses were identified during the annual impairment analysis.
Goodwill	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 it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill is evaluated for impairment based on an assessment of qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount (Step 0). If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test, as described below, becomes unnecessary. If events or circumstances occur that would indicate that the carrying amount may be impaired, or if the Company otherwise determines it necessary, the two-step impairment test will be performed. The two-step impairment test requires Surmodics to compare the fair value of the reporting units to which goodwill was assigned to their respective carrying values (Step 1 of the impairment test). In calculating fair value, the Company would use the income approach as its primary indicator of fair value, with the market approach used as a test of reasonableness. The income approach is a valuation technique under which the Company estimates future cash flows using the reporting units’ financial forecasts. Future estimated cash flows would be discounted to their present value to calculate fair value. The market approach establishes fair value by comparing Surmodics’ reporting units to other publicly traded guideline companies or by analysis of actual transactions of similar businesses or assets sold. The income approach would be tailored to the circumstances of the Company’s business, and the market approach would be completed as a secondary test to ensure that the results of the income approach are reasonable and in line with comparable companies in the industry. The summation of the Company’s reporting units’ fair values would be compared and reconciled to its market capitalization as of the date of its impairment test. In the situation where a reporting unit’s carrying amount exceeds its fair value, the amount of the impairment loss must be measured. The measurement of the impairment (Step 2 of the impairment test) is calculated by determining the implied fair value of a reporting unit’s goodwill. In calculating the implied fair value of goodwill, the fair value of the reporting unit is allocated to all other assets and liabilities of that unit based on their fair values. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. The goodwill impairment is measured as the excess of the carrying amount of goodwill over its implied fair value. The Company’s reporting units are the In Vitro Diagnostics operations known as its In Vitro Diagnostics unit which contains its BioFX branded products and the Surmodics device drug delivery, hydrophilic coatings and medical device manufacturing operations known as the Medical Device unit. Inherent in the determination of fair value of the reporting units are certain estimates and judgments, including the interpretation of current economic indicators and market valuations as well as the Company’s strategic plans with regard to its operations. Goodwill as of September 30, 2016 and September 30, 2015 totaled $26.6 million and $8.0 million, respectively. The $8.0 million of goodwill as of September 30, 2016 and 2015 is related to the In Vitro Diagnostics reporting unit and represents the gross value from the acquisition of BioFX Laboratories, Inc. in 2007. As part of the Creagh Medical and NorMedix acquisitions, the Medical Device reporting segment recorded $17.9 million of goodwill during 2016, $13.4 million of which is denominated in Euros and subject to revaluation due to fluctuations in exchange rates. Due to these acquisitions in the current year, the Company performed the two-step impairment test to determine if impairment exists and to provide for a baseline against which qualitative factors can be compared going forward. The Company performed its annual impairment test of goodwill (Step 1) as of August 31, 2016, and did not record any goodwill impairment charges during fiscal 2016 as it was determined that the reporting units’ fair values were greater than their carrying values. The Company also did not record any goodwill impairment charges related to the In Vitro Diagnostics reporting unit during fiscal 2015 or 2014 based on the Company’s Step 0 analysis. In the first quarter of fiscal 2016, the Company purchased Creagh Medical for up to €30 million, or approximately $32.1 million based on acquisition date exchange rates. The purchase price of Creagh Medical exceeded the net acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $13.4 million. In the second quarter of fiscal 2016, the Company purchased NorMedix. The purchase price of NorMedix exceeded the net acquisition-date amounts of the identifiable assets acquired and the liabilities assumed by $4.5 million. The Company finalized its allocation of purchase price to the assets acquired and the liabilities assumed for both of these acquisitions in the quarter ended September 30, 2016. The change in the carrying amount of goodwill by segment for the year ended September 30, 2016 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2015 $ 8,010 $ — $ 8,010 Additions (See Note 3) — 17,892 17,892 Foreign currency translation adjustment — 653 653 Balance as of September 30, 2016 $ 8,010 $ 18,545 $ 26,555
Valuation of Long-Lived Assets	Valuation of Long-Lived Assets Accounting guidance requires the Company to evaluate periodically whether events and circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of long-lived assets, such as property and equipment and intangibles with finite lives. If such events or circumstances were to indicate that the carrying amount of these assets may not be recoverable, the Company would estimate the future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) were less than the carrying amount of the assets, the Company would recognize an impairment charge to reduce such assets to their fair value. In fiscal 2016, 2015 and 2014, there were no impairment charges relating to the Company’s long-lived assets as there were no events or circumstances that occurred that affected the recoverability of such assets.
Revenue Recognition	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 our proprietary surface modification and device drug delivery technologies to customers; the vast majority (typically in excess of 90%) of revenue in the “royalties and license fees” category is in the form of royalties; (2) product revenues from the sale of reagent chemicals to licensees, the sale of stabilization products, antigens, substrates and surface coatings to the diagnostic and biomedical research markets as well as the sale of medical devices and related products (such as balloons and catheters) to original equipment manufacturer (OEM) suppliers and distributors; and (3) research and commercial development fees generated on customer projects. Taxes collected from customers and remitted to governmental authorities are excluded from revenue and amounted to $0.1 million for each of the years ended September 30, 2016, 2015 and 2014.
Royalties and license fees	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. Product sales to third parties consist of direct and distributor sales and are recognized at the time of shipment. 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	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.
Arrangements with multiple deliverables	Arrangements with multiple deliverables. Revenue arrangements with multiple deliverables requires the Company to: (i) disclose whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; (ii) allocate revenue in an arrangement using estimated selling prices (“ESP”) of deliverables if a vendor does not have vendor-specific objective evidence of selling price (“VSOE”) or third-party evidence of selling price (“TPE”); and (iii) allocate revenue using the relative selling price method. The Company accounts for revenue using a multiple attribution model in which consideration allocated to research and development activities is recognized as performed, and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. Accordingly, in situations where a unit of accounting includes both a license and research and development activities, and when a license does not have stand-alone value, the Company applies a multiple attribution model in which consideration allocated to the license is recognized ratably, consideration allocated to research and development activities is recognized as performed and milestone payments are recognized when the milestone events are achieved, when such activities and milestones are deemed substantive. The Company enters into license and development arrangements that may consist of multiple deliverables which could include a license(s) to Surmodics’ technology, research and development activities, manufacturing services, and product sales based on the needs of its customers. For example, a customer may enter into an arrangement to obtain a license to Surmodics’ intellectual property which may also include research and development activities, and supply of products manufactured by Surmodics. For these services provided, Surmodics could receive upfront license fees upon signing of an agreement and granting the license, fees for research and development activities as such activities are performed, milestone payments contingent upon advancement of the product through development and clinical stages to successful commercialization, fees for manufacturing services and supply of product, and royalty payments based on customer sales of product incorporating Surmodics’ technology. The Company’s license and development arrangements generally do not have refund provisions if the customer cancels or terminates the agreement. Typically all payments made are non-refundable. The Company is required to evaluate each deliverable in a multiple element arrangement for separability. The Company is then required to allocate revenue to each separate deliverable using a hierarchy of VSOE, TPE, or ESP. In many instances, the Company is not able to establish VSOE for all deliverables in an arrangement with multiple elements. This may be a result of the Company infrequently selling each element separately or having a limited history with multiple element arrangements. When VSOE cannot be established, the Company attempts to establish a selling price of each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. When the Company is unable to establish a selling price using VSOE or TPE, the Company uses ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. ESP is generally used for highly customized offerings. The Company determines ESP for undelivered elements by considering multiple factors including, but not limited to, market conditions, competitive landscape and past pricing arrangements with similar features. The determination of ESP is made through consultation with the Company’s management, taking into consideration the marketing strategies for each business unit.
Deferred Revenue	Deferred Revenue Amounts received prior to satisfying the above revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets, with deferred revenue to be recognized beyond one year being classified as non-current deferred revenue. The Company had current and non-current deferred revenue of $0.4 million and $0.3 million for September 30, 2016 and 2015, respectively. Customer overpayments are accounted for as a liability until all criteria for revenue recognition have been met. As of September 30, 2016, and 2015 the Company has recorded a liability of $0.9 million and $0.1 million, respectively, for customer royalty overpayments.
Customer Concentrations	Customer Concentrations The Company’s licensed technologies provide royalty revenue, which represents the largest revenue stream to the Company. The Company has licenses with a diverse base of customers and certain customers have multiple products using the Company’s technology. Medtronic plc (“Medtronic”) is the Company’s largest customer at approximately 25%, 26% and 19% of total consolidated revenue for the fiscal years ended September 30, 2016, 2015 and 2014, respectively. Medtronic has several separately licensed products that generate royalty revenue for Surmodics, none of which represented more than 6% of Surmodics’ total revenue. No other individual customer using licensed technology constitutes more than 10% of the Company’s total revenue. The Company’s licensing agreements with many of its customers, including most of its significant customers, cover many licensed products that each separately generates royalty revenue. This structure reduces the potential risk to the Company’s operations that may result from reduced sales (or the termination of a license) of a single product for any specific customer.
Income Taxes	Income Taxes The Company accounts for income taxes under the asset and liability method prescribed in accounting guidance. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the period in which related temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in this assessment. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of such change.
Research and Development	Research and Development Research and development costs are expensed as incurred. Some research and development costs are related to third-party contracts, and the related revenue is recognized as described in “Revenue Recognition” above. Costs associated with customer-related research and development include specific project direct labor costs and material expenses as well as an allocation of overhead costs based on direct labor dollars.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Ultimate results could differ from those estimates.
Discontinued Operations	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”). The loss from discontinued operations net of income taxes in fiscal 2014 related to a litigation settlement completed during that fiscal year. Pharmaceuticals discontinued operations used operating cash of less than $0.1 million in fiscal 2015. Cash generated from financing activities of less than $0.1 million in fiscal 2015 related to transfers of cash from continuing operations of Surmodics and consisted of cash used to make payments on accrual balances. There was no discontinued operations activity in fiscal 2016.
Income Per Share Data	Income 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 and non-vested stock relating to restricted stock awards, restricted stock units and performance shares. The following table sets forth the denominator for the computation of basic and diluted income per share (in thousands): 2016 2015 2014 Net income from continuing operations available to common shareholders $ 9,985 $ 11,947 $ 12,207 Basic weighted average shares outstanding 12,998 13,029 13,632 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares 221 260 244 Diluted weighted average shares outstanding 13,219 13,289 13,876 The calculation of weighted average diluted shares outstanding excludes outstanding common stock options associated with the right to purchase 0.7 million, 0.5 million and 0.5 million shares for fiscal 2016, 2015 and 2014, respectively, as their inclusion would have had an antidilutive effect on diluted income per share.
Currency Translation	Currency Translation Assets and liabilities of non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars at the period-end exchange rates, and revenues and expenses are translated at the average exchange rate for the period. The net effect of these translation adjustments in the consolidated financial statements are recorded as a foreign currency translation adjustment, as a component of accumulated other comprehensive income other, income (loss) net
Reclassifications	Reclassifications Certain prior-year amounts on the consolidated balance sheets and statements of income have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. The reclassified amounts on the consolidated balance sheets relate to the current portion of contingent consideration previously included in accrued other. The reclassified amounts on the consolidated statements of income relate to amortization on acquired intangible assets, which are shown separately due to their significance with regard to the Fiscal 2016 Acquisitions, as well as gains on strategic investments, which are combined with other income (loss).
New Accounting Pronouncements	New Accounting Pronouncements Accounting Standards to be Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606) The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s business model and consolidated results of operations, cash flows and financial position. The Company currently estimates the impact may be material due to the potential acceleration of minimum license fees and a one quarter acceleration of royalty revenue pursuant to our hydrophilic license agreements In February 2016, the FASB issued Accounting Standards Update ASU 2016-02, Leases (ASC Topic 842) In June 2016, the FASB issued ASU No 2016-13, Financial Instruments – Credit Losses (ASC Topic 326), Measurement of Credit Losses on Financial Statements In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments The accounting standard will be effective for the Company beginning in the first quarter of fiscal 2018 . The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s consolidated statements of cash flows. Accounting Standards Implemented In September 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (ASC Topic 718): Improvements to Employee Share-Based Payment Accounting As a result of the adoption, the Company will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital. Instead, all excess tax benefits and tax deficiencies will be recognized as income tax expense or benefit in the consolidated statements of income, and additional paid-in capital pools will be eliminated. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity Prior to the adoption of ASU No. 2016-09, cash flows resulting from the tax benefits generated by tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) are classified as financing cash flows. During the fiscal years ended September 30, 2015 and 2014, the Company realized tax benefits from stock options generated in previous and current periods resulting in approximately $0.4 million and $0.2 million of gross excess tax benefits, which are included as a component of cash flows from financing activities in the accompanying fiscal 2015 and 2014 consolidated statements of cash flows, respectively. 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.

Summary of Significant Accoun23

Summary of Significant Accounting Policies and Select Balance Sheet Information (Tables)	12 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
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 September September 30, 2016 (Dollars in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Commercial paper and corporate bonds $ 22,019 $ — $ (65 ) $ 21,954 Total $ 22,019 $ — $ (65 ) $ 21,954
Sales of Available-for-Sale Securities	The following table summarizes sales of available-for-sale securities for the years ended September 30, 2016, 2015 and 2014 (in thousands): 2016 2015 2014 Proceeds from sales $ 2,498 $ 22,199 $ 162,673 Gross realized gains $ — $ 548 $ 134 Gross realized losses $ (2 ) $ (73 ) $ (1 )
Components of Inventories	Inventories consisted of the following components as of September 30 (in thousands): 2016 2015 Raw materials $ 1,766 $ 1,264 Work in-process 492 213 Finished products 1,321 1,502 Total $ 3,579 $ 2,979
Schedule of Property, Plant and Equipment	Property and equipment consisted of the following components as of September 30 (in thousands): Useful Life 2016 2015 (In years) Land N/A $ 4,359 $ 4,359 Laboratory fixtures and equipment 3 to 10 15,243 12,941 Buildings and improvements 3 to 20 19,589 16,444 Office furniture and equipment 3 to 10 3,948 3,473 Construction-in-progress 3,441 1,168 Less accumulated depreciation (26,979 ) (25,417 ) Property and equipment, net $ 19,601 $ 12,968
Summary of Other Assets	Other assets consist principally of the following as of September 30 (in thousands): 2016 2015 ViaCyte, Inc. $ 479 $ 479 Other noncurrent assets 149 — Other assets, net $ 628 $ 479
Schedule of Intangible Assets	Intangible assets consisted of the following as of September 30 (in thousands): 2016 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists and relationships 8.9 $ 17,692 $ (6,123 ) $ 11,569 Core technology 8.0 530 (530 ) — Developed technology 11.8 8,724 (618 ) 8,106 Non-compete 5.0 230 (58 ) 172 Patents and other 16.5 2,321 (1,275 ) 1,046 Subtotal 29,497 (8,604 ) 20,893 Unamortized intangible assets: In-process research and development 987 — 987 Trademarks and trade names 645 — 645 Total $ 31,129 $ (8,604 ) $ 22,525 2015 Weighted Average Original Life (Years) Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Customer lists 9.0 $ 5,132 $ (4,363 ) $ 769 Core technology 8.0 530 (530 ) — Non-compete 5.0 230 (12 ) 218 Patents and other 16.8 2,321 (1,128 ) 1,193 Subtotal 8,213 (6,033 ) 2,180 Unamortized intangible assets: Trademarks 580 — 580 Total $ 8,793 $ (6,033 ) $ 2,760
Estimated Amortization Expense	Based on the intangible assets in service, excluding any possible future amortization associated with acquired IPR&D, which has not met technological feasibility as of September 30, 2016, estimated amortization expense for each of the next five fiscal years is as follows (in thousands): 2017 $ 2,580 2018 2,534 2019 2,534 2020 2,358 2021 2,219
Schedule Of Carrying Amount Of Goodwill By Segment	The change in the carrying amount of goodwill by segment for the year ended September 30, 2016 was as follows: (Dollars in thousands) In Vitro Diagnostics Medical Device Total Balance as of September 30, 2015 $ 8,010 $ — $ 8,010 Additions (See Note 3) — 17,892 17,892 Foreign currency translation adjustment — 653 653 Balance as of September 30, 2016 $ 8,010 $ 18,545 $ 26,555
Denominator for Computation of Basic and Diluted Income Per Share	The following table sets forth the denominator for the computation of basic and diluted income per share (in thousands): 2016 2015 2014 Net income from continuing operations available to common shareholders $ 9,985 $ 11,947 $ 12,207 Basic weighted average shares outstanding 12,998 13,029 13,632 Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares 221 260 244 Diluted weighted average shares outstanding 13,219 13,289 13,876

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Sep. 30, 2016
Creagh Medical Ltd [Member]
Business Acquisition [Line Items]
Summary of Purchase Price	The purchase price of Creagh Medical consisted of the following (in thousands) Cash paid $ 18,449 Debt assumed 761 Contingent consideration 9,064 Total purchase price 28,274 Less cash and cash equivalents acquired (251 ) Total purchase price, net of cash acquired $ 28,023
Schedule of Purchase Price to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed	The following table summarizes the final allocation of the purchase price to the fair values assigned to the assets acquired and the liabilities assumed at the date of the Creagh Medical acquisition: Fair Value (Dollars in thousands) Estimated Useful Life (In years) Current assets $ 896 N/A Property and equipment 634 1.0-10.0 Trade name 75 N/A Developed technology 1,787 7.0 In-process research and development 942 N/A Customer relationships 11,119 7.0-10.0 Other noncurrent assets 81 N/A Current liabilities (942 ) N/A Deferred tax liabilities (9 ) N/A Net assets acquired 14,583 Goodwill 13,440 N/A Total purchase price, net of cash acquired $ 28,023
NorMedix, Inc. [Member]
Business Acquisition [Line Items]
Summary of Purchase Price	The purchase price of NorMedix consisted of the following (in thousands) Cash paid $ 6,905 Contingent consideration 3,520 Total purchase price 10,425 Less cash and cash equivalents acquired (17 ) Total purchase price, net of cash acquired $ 10,408
Schedule of Purchase Price to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed	The following table summarizes the allocation of the purchase price to the fair values assigned to the assets acquired and the liabilities assumed at the date of the NorMedix acquisition: Fair Value (Dollars in thousands) Estimated Useful Life (In years) Net current assets $ 113 N/A Property and equipment 60 N/A Developed technology 6,850 10.0-14.0 Customer relationships 900 4.0 Deferred tax asset 690 N/A Other noncurrent asset 13 N/A Accounts payable (187 ) N/A Deferred tax liabilities (2,483 ) N/A Net assets acquired 5,956 Goodwill 4,452 N/A Total purchase price, net of cash acquired $ 10,408
Creagh Medical and NorMedix [Member]
Business Acquisition [Line Items]
Schedule of Pro Forma Financial Information	Year Ended September 30, 2016 2015 (In thousands, except per share data) (Unaudited) Revenue $ 72,416 $ 65,432 Net income $ 12,315 $ 6,583 Per share amounts: Basic net income per share $ 0.95 $ 0.51 Diluted net income per share $ 0.93 $ 0.50

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
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 September 30, 2016 (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, 2016 Assets Cash equivalents $ — $ 22,160 $ — $ 22,160 Available-for-sale securities — 21,954 $ 21,954 Total assets $ — $ 44,114 $ — $ 44,114 Liabilities Contingent consideration $ — $ — $ (14,517 ) $ (14,517 ) Total liabilities $ — $ — $ (14,517 ) $ (14,517 ) The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 (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, 2015 Assets: Cash equivalents $ — $ 53,591 $ — $ 53,591 Total assets measured at fair value $ — $ 53,591 $ — $ 53,591
Schedule of Contingent Consideration Liability	The following table summarizes the changes in the contingent consideration liability for the year ended September 30, 2016: (Dollars in thousands) Contingent consideration liability at September 30, 2015 $ — Additions 12,584 Fair value adjustments 70 Settlements — Interest accretion 1,422 Foreign currency translation 441 Contingent consideration liability at September 30, 2016 $ 14,517

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	12 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation Expenses	The Company’s stock-based compensation expenses for the years ended September 30 were allocated to the following expense categories 2016 2015 2014 Product costs $ 22 $ 24 $ 16 Research and development 324 226 175 Selling, general and administrative 3,498 2,131 3,146 Total stock-based compensation expense $ 3,844 $ 2,381 $ 3,337
Assumptions Used in Stock Option Plans	The assumptions used as inputs in the model for the years ended September 30 were as follows: 2016 2015 2014 Risk-free interest rates 1.89 % 1.43 % 1.19 % Expected life 4.6 years 4.5 years 4.6 years Expected volatility 37 % 43 % 45 % Dividend yield 0 % 0 % 0 %
Schedule of Stock Option Activity	The following table summarizes all stock options activity and stock options outstanding and exercisable under the stock option plans during fiscal 2016, 2015 and 2014: Number of Shares Weighted Average Exercise Price Outstanding at September 30, 2013 1,368,984 $ 20.13 Granted 138,837 22.71 Exercised (190,434 ) 14.42 Forfeited and expired (106,768 ) 31.26 Outstanding at September 30, 2014 1,210,619 20.35 Granted 164,401 21.24 Exercised (166,422 ) 14.54 Forfeited and expired (90,590 ) 35.35 Outstanding at September 30, 2015 1,118,008 20.10 Granted 241,582 20.63 Exercised (437,850 ) 15.68 Forfeited and expired (94,415 ) 31.52 Outstanding at September 30, 2016 827,325 $ 21.30 Exercisable at September 30, 2016 434,876 $ 21.50
Schedule of Restricted Stock Awards Activity	The following table summarizes all restricted stock awards activity during fiscal 2016, 2015 and 2014: Number of Shares Weighted Average Grant Price Balance at September 30, 2013 5,234 $ 23.88 Granted 22,155 22.67 Vested (7,991 ) 23.98 Forfeited (774 ) 22.58 Balance at September 30, 2014 18,624 22.45 Granted 18,073 21.84 Vested (7,606 ) 22.28 Forfeited (1,316 ) 22.16 Balance at September 30, 2015 27,775 22.12 Granted 20,108 20.14 Vested (12,311 ) 22.19 Forfeited (2,439 ) 21.17 Balance at September 30, 2016 33,133 $ 20.96
Schedule of Fair Value at the Date of Grant	The aggregate number of shares that could be awarded to key employees if the minimum, target and maximum performance goals are met, based upon the fair value at the date of grant is as follows: Performance Period Minimum Shares Target Shares Maximum Shares Fiscal 2014 - 2016 7,861 39,303 78,606 Fiscal 2015 – 2017 8,440 42,199 84,398 Fiscal 2016 – 2018 13,268 66,338 132,676

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of Income Taxes from Continuing Operations	Income taxes from continuing operations in the accompanying consolidated statements of income for the fiscal years ended September 30 are as follows (in thousands): 2016 2015 2014 Current provision: Federal $ 6,550 $ 6,065 $ 6,470 State and foreign 152 136 147 Total current provision 6,702 6,201 6,617 Deferred provision (benefit): Federal 169 58 (347 ) State and foreign 92 35 (5 ) Total deferred provision (benefit) 261 93 (352 ) Total provision $ 6,963 $ 6,294 $ 6,265
Schedule of Reconciliation Difference of Income Taxes	The reconciliation of the difference between amounts calculated at the statutory U.S. federal tax rate of 35% for the fiscal years ended September 30 and the Company’s effective tax rate from continuing operations is as follows (in thousands): 2016 2015 2014 Amount at statutory U.S. federal income tax rate $ 5,932 $ 6,385 $ 6,465 Change because of the following items: State income taxes, net of federal benefit 142 67 118 Stock-based compensation (607 ) 16 21 Valuation allowance change (2,500 ) 348 120 Tax reserve change 258 34 (121 ) Federal manufacturing deduction (280 ) (268 ) (235 ) Federal research and development credit (571 ) (74 ) (67 ) Gain on strategic investment and corporate subsidiary 2,630 — — Foreign rate differential 622 — — Acquisition-related transaction costs 768 — — Contingent consideration accretion 522 — — Other 47 (214 ) (36 ) Income tax provision $ 6,963 $ 6,294 $ 6,265
Schedule of Deferred Income Taxes	The components of deferred income taxes consisted of the following as of September 30 and result from differences in the recognition of transactions for income tax and financial reporting purposes (in thousands): 2016 2015 Depreciable assets $ (2,257 ) $ 1,618 Deferred revenue 80 96 Accruals and reserves 1,153 835 Stock-based compensation 3,113 4,194 Impaired strategic investments 2,701 4,186 Capital loss carryforward 63 1,456 NOL carryforward 3,324 — Federal and state R&D credit 110 Other 587 586 Valuation allowance (3,847 ) (5,721 ) Total deferred tax assets 5,027 7,250 Less current deferred tax assets — (546 ) Noncurrent deferred tax assets $ 5,027 $ 6,704
Summary of Reconciliation of Unrecognized Tax Benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in thousands): 2016 2015 2014 Beginning of fiscal year $ 1,248 $ 1,216 $ 1,300 Increases in tax positions for prior years 77 50 43 Decreases in tax positions for prior years (21 ) (10 ) (1 ) Increases in tax positions for current year 365 146 149 Lapse of the statute of limitations (161 ) (154 ) (275 ) End of fiscal year $ 1,508 $ 1,248 $ 1,216

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Summary of Annual Commitments Pursuant to Operating Lease Agreements	Annual commitments pursuant to operating lease agreements are as follows (in thousands): Year Ended September 30, 2017 $ 135 2018 114 2019 72 2020 74 2021 12 Thereafter — Total minimum lease payments $ 407

Reportable Segment Information

Reportable Segment Information (Tables)	12 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Revenue, Operating Income and Depreciation and Amortization	The tables below present segment revenue, operating income from continuing operations and depreciation and amortization, for the years ended September 30, as follows (in thousands): 2016 2015 2014 Revenue: Medical Device $ 53,202 $ 45,944 $ 43,068 In Vitro Diagnostics 18,164 15,954 14,371 Total revenue $ 71,366 $ 61,898 $ 57,439 Operating income (loss): Medical Device $ 16,975 $ 21,192 $ 22,636 In Vitro Diagnostics 7,115 4,484 3,459 Total segment operating income 24,090 25,676 26,095 Corporate (7,231 ) (6,587 ) (7,519 ) Total operating income from continuing operations $ 16,859 $ 19,089 $ 18,576 Depreciation and amortization: Medical Device $ 3,261 $ 1,138 $ 1,136 In Vitro Diagnostics 789 873 850 Corporate 823 794 729 Total depreciation and amortization $ 4,873 $ 2,805 $ 2,715
Revenue from Major Customers	Revenue from customers that equaled or exceeded 10% of total revenue was as follows for the years ended September 30: 2016 2015 2014 Medtronic 25 % 26 % 19 %
Geographic Revenue	Geographic revenue was as follows for the years ended September 30: 2016 2015 2014 Domestic 79 % 77 % 78 % Foreign 21 % 23 % 22 %

Quarterly Financial Data (Una30

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Sep. 30, 2016
Quarterly Financial Information Disclosure [Abstract]
Summary of Unaudited Quarterly Results	The following is a summary of the unaudited quarterly results for the years ended September 30, 2016 and 2015 (in thousands, except per share data). First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2016 Total revenue $ 16,541 $ 16,699 $ 19,972 $ 18,154 Operating income 3,939 2,240 6,597 4,083 Net income (1) 2,653 821 3,934 2,577 Basic net income per share (2): 0.20 0.06 0.31 0.20 Diluted net income per share (2): 0.20 0.06 0.30 0.20 Fiscal 2015 Total revenue $ 14,205 $ 14,415 $ 15,914 $ 17,364 Operating income 5,034 3,932 5,857 4,266 Net income 3,614 3,051 3,924 1,358 Basic net income per share (2): 0.27 0.24 0.30 0.10 Diluted net income per share (2): 0.27 0.23 0.30 0.10 (1) Previously reported quarterly net income amounts for the first through third quarters of fiscal 2016 have been adjusted for the effects of the adoption of ASU 2016-09 (see Note 2), as this guidance was adopted in the fourth quarter of fiscal 2016 retroactive to the beginning of the fiscal year. The adjustments to net income were approximately $0.1 million each quarter. Additionally, basic and diluted net income per share for the first quarter were adjusted from $0.19 to $0.20 as a result of the adoption of the ASU. (2) The sum of the quarterly income per share amounts may not equal the annual income per share total because of changes in the weighted average number of shares outstanding that occurred during the year.

Schedule of Valuation and Qua31

Schedule of Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Allowance for doubtful accounts [Member]
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 10	$ 42	$ 26
Additions Charged (Credited) to Expenses	9		24
Deductions From Reserves		32	8
Balance at End of Period	$ 19	$ 10	42
Restructuring accrual [Member]
Valuation And Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period			416
Deductions From Reserves			$ 416

Description - Additional Inform

Description - Additional Information (Detail)	12 Months Ended
	Sep. 30, 2016
Royalties [Member] | Minimum [Member] | Revenue from Rights Concentration Risk [Member] | Revenue, Rights Granted [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue	90.00%

Summary of Significant Accoun33

Summary of Significant Accounting Policies and Select Balance Sheet Information - Amortized Cost, Unrealized Holding Gains (Losses) and Fair Value of Available for Sale Securities (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 22,019,000
Unrealized Losses	(65,000)
Fair Value	21,954,000	$ 0
Commercial paper and corporate bonds [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	22,019,000
Unrealized Losses	(65,000)
Fair Value	$ 21,954,000

Summary of Significant Accoun34

Summary of Significant Accounting Policies and Select Balance Sheet Information - Additional Information (Detail) € in Millions, shares in Millions	Jan. 08, 2016USD ($)	Nov. 20, 2015USD ($)	Nov. 20, 2015EUR (€)	Dec. 31, 2015USD ($)	Dec. 31, 2015EUR (€)	Sep. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Sep. 30, 2014USD ($)	Mar. 31, 2013USD ($)	Dec. 31, 2012USD ($)	Sep. 30, 2016USD ($)shares	Sep. 30, 2015USD ($)shares	Sep. 30, 2014USD ($)shares	Sep. 30, 2010USD ($)	Sep. 30, 2006USD ($)	Mar. 31, 2016USD ($)	Nov. 10, 2015USD ($)
Summary Of Significant Accounting Policies [Line Items]
Available for sale investments						$ 0					$ 21,954,000	$ 0
Held-to-maturity debt securities						0					0	0
Depreciation expense											2,300,000	2,000,000	$ 2,000,000
Impairment loss on investment											0
Gain on sale of investment							$ 500,000				514,000	492,000	842,000
Transfer to Investments											2,000
Amortization expense											2,400,000	800,000	700,000
Other impairment losses											0
Goodwill						8,010,000					26,555,000	8,010,000
Goodwill impairment charges											0
Goodwill subject to revaluation due to fluctuations in exchange rates											13,400,000
Impairment charges relating to long-lived assets											0	0	0
Taxes collected from customers and remitted to governmental authorities											100,000	100,000	100,000
Current and non-current deferred revenue						300,000					400,000	300,000
Liability recorded for customer royalty overpayments						79,000					$ 881,000	79,000
Discontinued operations used operating cash												45,000	354,000
Cash generated from financing activities												$ 45,000	$ 354,000
Weighted average diluted shares outstanding excluded outstanding stock options | shares											0.7	0.5	0.5
Excess tax benefit from stock-based compensation plans												$ 432,000	$ 236,000
ASU 2016-09 [Member]
Summary Of Significant Accounting Policies [Line Items]
Excess tax benefit from stock-based compensation plans												$ 400,000	$ 200,000
SurModics Pharmaceuticals [Member]
Summary Of Significant Accounting Policies [Line Items]
Discontinued operations activity											$ 0
Customer Concentration Risk [Member] | Revenue [Member] | Medtronic [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue											25.00%	26.00%	19.00%
In Vitro Diagnostics [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill						8,010,000					$ 8,010,000	$ 8,010,000
Goodwill impairment charges												0	$ 0
Medical Device [Member]
Summary Of Significant Accounting Policies [Line Items]
Goodwill											18,545,000
Customer Lists [Member]
Summary Of Significant Accounting Policies [Line Items]
Intangible assets, acquired											12,600,000	300,000
Non-compete [Member]
Summary Of Significant Accounting Policies [Line Items]
Intangible assets, acquired												200,000
Other Intangible Assets [Member]
Summary Of Significant Accounting Policies [Line Items]
Intangible assets, acquired												100,000
Relationships, Developed Technology [Member]
Summary Of Significant Accounting Policies [Line Items]
Intangible assets, acquired											8,700,000
In-Process Research and Development [Member]
Summary Of Significant Accounting Policies [Line Items]
Intangible assets, acquired											$ 1,000,000
Creagh Medical Ltd [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of shares acquired		100.00%	100.00%								100.00%
Goodwill				$ 13,400,000							$ 13,440,000
Payments to acquire business				$ 32,100,000							$ 28,274,000
NorMedix, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of shares acquired	100.00%										100.00%
Goodwill											$ 4,452,000					$ 4,500,000
Payments to acquire business											10,425,000
Other Income, Net [Member]
Summary Of Significant Accounting Policies [Line Items]
Gain on sale of investment												500,000
Selling, General and Administrative Expenses [Member] | Trade Names [Member]
Summary Of Significant Accounting Policies [Line Items]
Impairment loss											100,000
ViaCyte, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Impairment loss on investment									$ 100,000						$ 4,700,000
Equity method investment											5,300,000
Cost method of investment											500,000
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Revenue recognized from activity with companies in which it had strategic investment											$ 100,000	100,000	100,000
Product sales payment terms											45 days
Maximum [Member] | SurModics Pharmaceuticals [Member]
Summary Of Significant Accounting Policies [Line Items]
Discontinued operations used operating cash												100,000
Cash generated from financing activities												$ 100,000
Maximum [Member] | Customer Concentration Risk [Member] | Revenue [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue											10.00%
Maximum [Member] | Product Concentration Risk [Member] | Revenue [Member] | Medtronic [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue											6.00%
Maximum [Member] | Creagh Medical Ltd [Member]
Summary Of Significant Accounting Policies [Line Items]
Payments to acquire business		$ 32,000,000	€ 30		€ 30
Maximum [Member] | NorMedix, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Payments to acquire business	$ 14,000,000
Maximum [Member] | ViaCyte, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Company's ownership percentage											1.00%
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Product sales payment terms											30 days
Minimum [Member] | Royalties [Member] | Revenue from Rights Concentration Risk [Member] | Revenue, Rights Granted [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of revenue											90.00%
CeloNova BioSciences, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Gross value of business acquired																	$ 70,000,000
Impairment loss on investment						$ 1,500,000
CeloNova BioSciences, Inc. [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Company's ownership percentage											2.00%
ThermopeutiX, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Impairment loss on investment								$ 1,200,000			$ 1,200,000
ThermopeutiX, Inc. [Member] | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Company's ownership percentage						20.00%						20.00%
Vessix Vascular Inc
Summary Of Significant Accounting Policies [Line Items]
Impairment loss on investment														$ 2,400,000
Equity method investment											2,500,000
Gain on sale of investment										$ 1,200,000
Vessix Vascular Inc | Clinical milestone [Member]
Summary Of Significant Accounting Policies [Line Items]
Milestone payment to be received													$ 700,000
Vessix Vascular Inc | Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Potential proceeds on achievement of future milestones											$ 3,300,000

Summary of Significant Accoun35

Summary of Significant Accounting Policies and Select Balance Sheet Information - Sales of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Investments Debt And Equity Securities [Abstract]
Proceeds from sales	$ 2,498	$ 22,199	$ 162,673
Gross realized gains		548	134
Gross realized losses	$ (2)	$ (73)	$ (1)

Summary of Significant Accoun36

Summary of Significant Accounting Policies and Select Balance Sheet Information - Components of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,766	$ 1,264
Work in-process	492	213
Finished products	1,321	1,502
Total	$ 3,579	$ 2,979

Summary of Significant Accoun37

Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Less accumulated depreciation	$ (26,979)	$ (25,417)
Property and equipment, net	19,601	12,968
Land [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	4,359	4,359
Laboratory Fixtures and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 15,243	12,941
Laboratory Fixtures and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	3 years
Laboratory Fixtures and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	10 years
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 19,589	16,444
Building and Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	3 years
Building and Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	20 years
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 3,948	3,473
Office Furniture and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	3 years
Office Furniture and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Useful Life	10 years
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, Gross	$ 3,441	$ 1,168

Summary of Significant Accoun38

Summary of Significant Accounting Policies and Select Balance Sheet Information - Summary of Other Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Schedule of Investments [Line Items]
Other assets, net	$ 628	$ 479
ViaCyte, Inc. [Member]
Schedule of Investments [Line Items]
Other assets, net	479	$ 479
Other Noncurrent Assets [Member]
Schedule of Investments [Line Items]
Other assets, net	$ 149

Summary of Significant Accoun39

Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Intangible Assets [Line Items]
Definite-lived intangible assets, Accumulated Amortization	$ (8,604)	$ (6,033)
Intangible assets, Gross Carrying Amount	31,129	8,793
Intangible assets, Net	$ 22,525	$ 2,760
Customer Lists and Relationships [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)	8 years 10 months 24 days
Definite-lived intangible assets, Gross Carrying Amount	$ 17,692
Definite-lived intangible assets, Accumulated Amortization	(6,123)
Definite-lived intangible assets, Net	$ 11,569
Customer Lists [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)		9 years
Definite-lived intangible assets, Gross Carrying Amount		$ 5,132
Definite-lived intangible assets, Accumulated Amortization		(4,363)
Definite-lived intangible assets, Net		$ 769
Core Technology [Member]
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	$ (530)	$ (530)
Developed Technology [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)	11 years 9 months 18 days
Definite-lived intangible assets, Gross Carrying Amount	$ 8,724
Definite-lived intangible assets, Accumulated Amortization	(618)
Definite-lived intangible assets, Net	$ 8,106
Non-compete [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)	5 years	5 years
Definite-lived intangible assets, Gross Carrying Amount	$ 230	$ 230
Definite-lived intangible assets, Accumulated Amortization	(58)	(12)
Definite-lived intangible assets, Net	$ 172	$ 218
Patents and Other [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Weighted Average Original Life (Years)	16 years 6 months	16 years 9 months 18 days
Definite-lived intangible assets, Gross Carrying Amount	$ 2,321	$ 2,321
Definite-lived intangible assets, Accumulated Amortization	(1,275)	(1,128)
Definite-lived intangible assets, Net	1,046	1,193
Definite-Lived Intangible Assets [Member]
Intangible Assets [Line Items]
Definite-lived intangible assets, Gross Carrying Amount	29,497	8,213
Definite-lived intangible assets, Accumulated Amortization	(8,604)	(6,033)
Definite-lived intangible assets, Net	20,893	2,180
In-Process Research and Development [Member]
Intangible Assets [Line Items]
Indefinite-lived intangible assets, Net	987
Trademarks and Trade Names [Member]
Intangible Assets [Line Items]
Indefinite-lived intangible assets, Net	$ 645
Trademarks [Member]
Intangible Assets [Line Items]
Indefinite-lived intangible assets, Net		$ 580

Summary of Significant Accoun40

Summary of Significant Accounting Policies and Select Balance Sheet Information - Estimated Amortization Expense (Detail) $ in Thousands	Sep. 30, 2016USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2,017	$ 2,580
2,018	2,534
2,019	2,534
2,020	2,358
2,021	$ 2,219

Summary of Significant Accoun41

Summary of Significant Accounting Policies and Select Balance Sheet Information - Schedule Of Carrying Amount of Goodwill by Segment (Detail) $ in Thousands	12 Months Ended
	Sep. 30, 2016USD ($)
Goodwill [Line Items]
Balance as of September 30, 2015	$ 8,010
Additions (See Note 3)	17,892
Foreign currency translation adjustment	653
Balance as of September 30, 2016	26,555
In Vitro Diagnostics [Member]
Goodwill [Line Items]
Balance as of September 30, 2015	8,010
Balance as of September 30, 2016	8,010
Medical Device [Member]
Goodwill [Line Items]
Additions (See Note 3)	17,892
Foreign currency translation adjustment	653
Balance as of September 30, 2016	$ 18,545

Summary of Significant Accoun42

Summary of Significant Accounting Policies and Select Balance Sheet Information - Denominator for Computation of Basic and Diluted Income Per Share (Detail) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income from continuing operations available to common shareholders	$ 9,985	$ 11,947	$ 12,207
Basic weighted average shares outstanding	12,998	13,029	13,632
Dilutive effect of outstanding stock options, non-vested restricted stock, restricted stock units and performance shares	221	260	244
Diluted weighted average shares outstanding	13,219	13,289	13,876

Business Combinations - Additio

Business Combinations - Additional Information (Detail) $ in Thousands, € in Millions	Jan. 08, 2016USD ($)	Nov. 20, 2015USD ($)	Nov. 20, 2015EUR (€)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2015EUR (€)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Nov. 20, 2015EUR (€)
Business Acquisition [Line Items]
Acquisition transaction, integration and other costs													$ 3,187
Business acquisition, revenue recognized				$ 18,154	$ 19,972	$ 16,699	$ 16,541		$ 17,364	$ 15,914	$ 14,415	$ 14,205	71,366	$ 61,898	$ 57,439
Business acquisition, loss recognized				$ 2,577	$ 3,934	$ 821	2,653		$ 1,358	$ 3,924	$ 3,051	$ 3,614	$ 9,985	11,947	$ 12,031
Creagh Medical Ltd [Member]
Business Acquisition [Line Items]
Outstanding common shares and voting shares percentage		100.00%		100.00%									100.00%			100.00%
Payments to acquire business							32,100						$ 28,274
Upfront payments		$ 19,300	€ 18										18,449
Contingent milestone payments		12,800														€ 12
Acquisition transaction, integration and other costs													$ 2,700
Creagh Medical Ltd [Member] | Maximum [Member]
Business Acquisition [Line Items]
Payments to acquire business		$ 32,000	€ 30					€ 30
NorMedix, Inc. [Member]
Business Acquisition [Line Items]
Outstanding common shares and voting shares percentage	100.00%			100.00%									100.00%
Payments to acquire business													$ 10,425
Upfront payments	$ 7,000												6,905
Contingent milestone payments	7,000
Acquisition transaction, integration and other costs													300
NorMedix, Inc. [Member] | Maximum [Member]
Business Acquisition [Line Items]
Payments to acquire business	$ 14,000
Creagh Medical and NorMedix [Member]
Business Acquisition [Line Items]
Acquisition transaction, integration and other costs							$ 2,500
Business acquisition, revenue recognized													4,100
Business acquisition, loss recognized													(3,100)
Creagh Medical and NorMedix [Member] | Unaudited Pro Forma [Member]
Business Acquisition [Line Items]
Amortization expense on intangible assets													2,800	3,200
Contingent consideration accretion expense													1,800	2,100
Non-recurring professional fees													3,200
Tax effect impact													$ 200	$ 500

Business Combinations - Summary

Business Combinations - Summary of Purchase Price (Detail) $ in Thousands, € in Millions	Jan. 08, 2016USD ($)	Nov. 20, 2015USD ($)	Nov. 20, 2015EUR (€)	Dec. 31, 2015USD ($)	Sep. 30, 2016USD ($)
Business Acquisition [Line Items]
Contingent consideration					$ 14,500
Creagh Medical Ltd [Member]
Business Acquisition [Line Items]
Cash Paid		$ 19,300	€ 18		18,449
Debt assumed					761
Contingent consideration					9,064
Payments to acquire business				$ 32,100	28,274
Less cash and cash equivalents acquired					(251)
Total purchase price, net of cash acquired					28,023
NorMedix, Inc. [Member]
Business Acquisition [Line Items]
Cash Paid	$ 7,000				6,905
Contingent consideration					3,520
Payments to acquire business					10,425
Less cash and cash equivalents acquired					(17)
Total purchase price, net of cash acquired					$ 10,408

Business Combinations - Summa45

Business Combinations - Summary of Purchase Price Allocation to the Fair Values Assigned to the Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015
Business Acquisition [Line Items]
Goodwill	$ 26,555			$ 8,010
Developed Technology [Member]
Business Acquisition [Line Items]
Estimated Useful Life (In years)	11 years 9 months 18 days
Creagh Medical Ltd [Member]
Business Acquisition [Line Items]
Current assets	$ 896
Property and equipment	634
Other noncurrent assets	81
Current liabilities	(942)
Deferred tax liabilities	(9)
Net assets acquired	14,583
Goodwill	13,440		$ 13,400
Total purchase price, net of cash acquired	$ 28,023
Creagh Medical Ltd [Member] | Minimum [Member]
Business Acquisition [Line Items]
Estimated Useful Life (In years)	1 year
Creagh Medical Ltd [Member] | Maximum [Member]
Business Acquisition [Line Items]
Estimated Useful Life (In years)	10 years
Creagh Medical Ltd [Member] | Developed Technology [Member]
Business Acquisition [Line Items]
Intangible assets	$ 1,787
Estimated Useful Life (In years)	7 years
Creagh Medical Ltd [Member] | In-Process Research and Development [Member]
Business Acquisition [Line Items]
Intangible assets	$ 942
Creagh Medical Ltd [Member] | Customer Relationship [Member]
Business Acquisition [Line Items]
Intangible assets	$ 11,119
Creagh Medical Ltd [Member] | Customer Relationship [Member] | Minimum [Member]
Business Acquisition [Line Items]
Estimated Useful Life (In years)	7 years
Creagh Medical Ltd [Member] | Customer Relationship [Member] | Maximum [Member]
Business Acquisition [Line Items]
Estimated Useful Life (In years)	10 years
Creagh Medical Ltd [Member] | Trade Name [Member]
Business Acquisition [Line Items]
Intangible assets	$ 75
NorMedix, Inc. [Member]
Business Acquisition [Line Items]
Current assets	113
Property and equipment	60
Deferred tax asset	690
Other noncurrent assets	13
Accounts payable	(187)
Deferred tax liabilities	(2,483)
Net assets acquired	5,956
Goodwill	4,452	$ 4,500
Total purchase price, net of cash acquired	10,408
NorMedix, Inc. [Member] | Developed Technology [Member]
Business Acquisition [Line Items]
Intangible assets	$ 6,850
NorMedix, Inc. [Member] | Developed Technology [Member] | Minimum [Member]
Business Acquisition [Line Items]
Estimated Useful Life (In years)	10 years
NorMedix, Inc. [Member] | Developed Technology [Member] | Maximum [Member]
Business Acquisition [Line Items]
Estimated Useful Life (In years)	14 years
NorMedix, Inc. [Member] | Customer Relationship [Member]
Business Acquisition [Line Items]
Intangible assets	$ 900
Estimated Useful Life (In years)	4 years

Business Combinations - Pro For

Business Combinations - Pro Forma Financial Information (Detail) - Creagh Medical and NorMedix [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Revenue	$ 72,416	$ 65,432
Net income	$ 12,315	$ 6,583
Per share amounts:
Basic net income per share	$ 0.95	$ 0.51
Diluted net income per share	$ 0.93	$ 0.50

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) € in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016EUR (€)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration liability			$ 14,500,000
Contingent consideration liability, noncurrent			13,592,000
Level 3 assets	$ 0		0	$ 0
Transfers in or out Level 3, Assets			0	0
Transfers in or out Level 3, Liabilities			0	$ 0
Impairment loss on investment			0
ThermopeutiX, Inc. [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impairment loss on investment		$ 1,200,000	$ 1,200,000
CeloNova BioSciences, Inc. [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impairment loss on investment	$ 1,500,000
Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Percentage of Probability Achievement of Contingent Consideration payment.			25.00%
Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Percentage of Probability Achievement of Contingent Consideration payment.			100.00%
Contingent Consideration [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Interest accretion			$ 1,500,000
Foreign currency loss			$ 400,000
Contingent Consideration [Member] | Minimum [Member] | Revenue Based Milestones [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate			14.10%
Contingent Consideration [Member] | Minimum [Member] | Non Revenue Based Milestones [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate			5.60%
Contingent Consideration [Member] | Maximum [Member] | Revenue Based Milestones [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate			22.80%
Contingent Consideration [Member] | Maximum [Member] | Non Revenue Based Milestones [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate			6.70%
Creagh Medical and NorMedix [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration liability			$ 14,500,000
Creagh Medical Ltd [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration liability			9,064,000
Contingent consideration related to acquisition			$ 12,800,000		€ 12

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Assets and Liabilities Measured at Fair Value on a Recurring Basis [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	$ 44,114	$ 53,591
Liabilities measured at fair value	(14,517)
Available-for-sale securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	21,954
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	44,114	53,591
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	21,954
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liabilities measured at fair value	(14,517)
Cash equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	22,160	53,591
Cash equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets measured at fair value	22,160	$ 53,591
Contingent consideration [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liabilities measured at fair value	(14,517)
Contingent consideration [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Liabilities measured at fair value	$ (14,517)

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurement of Contingent Consideration Liability (Detail) - Contingent Consideration [Member] $ in Thousands	12 Months Ended
	Sep. 30, 2016USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Additions	$ 12,584
Fair value adjustments	70
Interest accretion	1,422
Foreign currency translation	441
Contingent consideration liability	$ 14,517

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	Jul. 08, 2015	Nov. 11, 2014	Sep. 30, 2015	Sep. 30, 2014	Nov. 06, 2015	Nov. 05, 2014	Sep. 30, 2013
Stockholders Equity [Line Items]
Remaining amount available for repurchases of shares							$ 11,500,000
Common stock repurchased, Shares				485,777
Stock repurchased average price per share				$ 23.77
Common stock repurchased			$ 20,000,000	$ 11,541,000
Accelerated Share Repurchase Program [Member]
Stockholders Equity [Line Items]
Remaining amount available for repurchases of shares					$ 30,000,000	$ 10,000,000
Common stock repurchased, Shares		847,864
Maximum payments for repurchase of common stock					$ 20,000,000	$ 30,000,000
Fair value of common stock		$ 16,000,000
Reduction in common stock		100,000
Reduction in additional paid-in capital		2,500,000
Reduction in retained earnings		13,500,000
Initial payment to bank reported as reduction in retained earnings		$ 4,000,000
Accelerate share repurchase program, price per share		$ 23.59
Accelerated Share Repurchase Program [Member] | Investment Bank [Member]
Stockholders Equity [Line Items]
Common stock repurchased, Shares		758,143
Fair value of common stock		$ 20,000,000
Transaction One [Member] | Accelerated Share Repurchase Program [Member]
Stockholders Equity [Line Items]
Common stock repurchased, Shares		758,143
Transaction Two [Member] | Accelerated Share Repurchase Program [Member]
Stockholders Equity [Line Items]
Common stock repurchased, Shares	89,721

Stock-Based Compensation Plan51

Stock-Based Compensation Plans - Stock-based Compensation Expenses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 3,844	$ 2,381	$ 3,337
Product costs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	22	24	16
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	324	226	175
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 3,498	$ 2,131	$ 3,146

Stock-Based Compensation Plan52

Stock-Based Compensation Plans - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Stock-Based Compensation Activity [Line Items]
Unrecognized compensation costs related to non-vested awards		$ 3,800,000
Weighted average period for recognition of compensation costs related to non-vested awards		2 years 1 month 6 days
Performance share awards fully expensed		$ 1,700,000
Weighted average per share fair value of stock options		$ 6.95	$ 7.26	$ 8.72
Dividend rates		0.00%	0.00%	0.00%
Vesting period		3 years	3 years	3 years
Stock option exercisable on a pro-rata basis		2 years 10 months 24 days
Aggregate intrinsic value of the option shares outstanding		$ 7,900,000
Aggregate intrinsic value of the option shares exercisable		$ 4,300,000
Remaining contractual life of options outstanding		4 years 1 month 6 days
Total pre-tax intrinsic value of options exercised		$ 5,100,000	$ 1,700,000
Stock compensation expenses recognized		3,844,000	2,381,000	$ 3,337,000
Restricted stock expense		$ 300,000	300,000	200,000
Fiscal 2013 (2013 - 2015) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year		2,013
Performance period end year		2,015
Fiscal 2014 (2014 - 2016) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year		2,014
Performance period end year		2,016
Fiscal 2014 (2014 - 2016) [Member] | Scenario Forecast [Member]
Stock-Based Compensation Activity [Line Items]
Maximum estimated shares earned	38,517
Fiscal 2015 (2015 - 2017) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year		2,015
Performance period end year		2,017
Maximum estimated shares earned		37,220
Fiscal 2016 (2016 - 2018) [Member]
Stock-Based Compensation Activity [Line Items]
Performance period start year		2,016
Performance period end year		2,018
Maximum estimated shares earned		96,654
Nonqualified Stock Options [Member]
Stock-Based Compensation Activity [Line Items]
Stock option related expense				500,000
Stock compensation expenses recognized		$ 1,200,000	1,200,000	$ 2,300,000
Nonqualified Stock Options [Member] | Board of Director [Member]
Stock-Based Compensation Activity [Line Items]
Vesting terms		The Company modified non-qualified stock option awards granted to Board members in February 2014, which resulted in acceleration of the stock option vesting period. The modification changed the vesting period to a pro-rata basis over a one-year period from a four-year period and resulted in an increase to stock option expense of $0.5 million in fiscal 2014.
Stock option exercisable on a pro-rata basis		1 year		4 years
Nonqualified Stock Options [Member] | Employee [Member]
Stock-Based Compensation Activity [Line Items]
Vesting period		4 years
Nonqualified Stock Options [Member] | Minimum [Member] | Board of Director [Member]
Stock-Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service		7 years
Nonqualified Stock Options [Member] | Maximum [Member] | Board of Director [Member]
Stock-Based Compensation Activity [Line Items]
Stock option expiration term upon expiration of employment or service		10 years
Performance Shares [Member]
Stock-Based Compensation Activity [Line Items]
Stock compensation expenses recognized		$ 1,900,000	500,000	$ 600,000
Performance Shares [Member] | Fiscal 2014 (2014 - 2016) [Member]
Stock-Based Compensation Activity [Line Items]
Fair value of performance shares for grants awarded				900,000
Performance Shares [Member] | Fiscal 2015 (2015 - 2017) [Member]
Stock-Based Compensation Activity [Line Items]
Fair value of performance shares for grants awarded			900,000
Performance Shares [Member] | Fiscal 2016 (2016 - 2018) [Member]
Stock-Based Compensation Activity [Line Items]
Fair value of performance shares for grants awarded		1,300,000
1999 Employee Stock Purchase Plan [Member]
Stock-Based Compensation Activity [Line Items]
Annual compensation withheld, maximum limit		$ 25,000
1999 Employee Stock Purchase Plan [Member] | Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Common stock authorized, shares		600,000
Stock compensation expenses recognized		$ 100,000	100,000	100,000
Annual compensation withheld		10.00%
Employee contributions		$ 100,000	100,000
Vesting Anniversary [Member] | Nonqualified Stock Options [Member] | Employee [Member]
Stock-Based Compensation Activity [Line Items]
Vesting percentage		25.00%
Performance Level [Member] | Minimum [Member]
Stock-Based Compensation Activity [Line Items]
Vesting percentage		20.00%
Performance Level [Member] | Maximum [Member]
Stock-Based Compensation Activity [Line Items]
Performance share awards, estimated vesting percentage		200.00%
2009 Equity Incentive Plan [Member]
Stock-Based Compensation Activity [Line Items]
Common stock authorized, shares		2,000,000
Number of shares available for future awards		1,159,754
2009 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation Activity [Line Items]
Stock compensation expenses recognized		$ 200,000	$ 400,000	100,000
Number of stock units awarded		18,877	10,678
Number of stock units forfeited		1,609	3,068
Restricted stock expense				200,000
2009 Equity Incentive Plan [Member] | Deferred Stock Units [Member] | Director [Member]
Stock-Based Compensation Activity [Line Items]
Stock compensation expenses recognized		$ 200,000	$ 100,000	$ 100,000
Number of stock units outstanding		21,077	17,005
Number of deferred stock units outstanding estimated fair value		$ 600,000

Stock-Based Compensation Plan53

Stock-Based Compensation Plans - Assumptions Used in Stock Option Plans (Detail)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-free interest rates	1.89%	1.43%	1.19%
Expected life	4 years 7 months 6 days	4 years 6 months	4 years 7 months 6 days
Expected volatility	37.00%	43.00%	45.00%
Dividend yield	0.00%	0.00%	0.00%

Stock-Based Compensation Plan54

Stock-Based Compensation Plans - Schedule of Stock Option Activity (Detail) - $ / shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares Outstanding, Beginning balance	1,118,008	1,210,619	1,368,984
Number of Shares, Granted	241,582	164,401	138,837
Number of Shares, Exercised	(437,850)	(166,422)	(190,434)
Number of Shares, Forfeited and expired	(94,415)	(90,590)	(106,768)
Number of Shares Outstanding, Ending balance	827,325	1,118,008	1,210,619
Number of Shares, Exercisable	434,876
Weighted Average Exercise Price, Beginning Balance	$ 20.10	$ 20.35	$ 20.13
Weighted Average Exercise Price, Granted	20.63	21.24	22.71
Weighted Average Exercise Price, Exercised	15.68	14.54	14.42
Weighted Average Exercise Price, Forfeited and expired	31.52	35.35	31.26
Weighted Average Exercise Price, Ending balance	21.30	$ 20.10	$ 20.35
Weighted Average Exercise Price, Exercisable	$ 21.50

Stock-Based Compensation Plan55

Stock-Based Compensation Plans - Schedule of Restricted Stock Awards Activity (Detail) - Restricted Stock [Member] - $ / shares	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Beginning balance	27,775	18,624	5,234
Number of Shares, Granted	20,108	18,073	22,155
Number of Shares, Vested	(12,311)	(7,606)	(7,991)
Number of Shares, Forfeited	(2,439)	(1,316)	(774)
Number of Shares, Ending balance	33,133	27,775	18,624
Weighted Average Grant Price, Beginning balance	$ 22.12	$ 22.45	$ 23.88
Weighted Average Grant Price, Granted	20.14	21.84	22.67
Weighted Average Grant Price, Vested	22.19	22.28	23.98
Weighted Average Grant Price, Forfeited	21.17	22.16	22.58
Weighted Average Grant Price, Ending balance	$ 20.96	$ 22.12	$ 22.45

Stock-Based Compensation Plan56

Stock-Based Compensation Plans - Schedule of Fair Value at the Date of Grant (Detail)	12 Months Ended
	Sep. 30, 2016shares
Fiscal 2014 (2014 - 2016) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Minimum Shares	7,861
Target Shares	39,303
Maximum Shares	78,606
Fiscal 2015 (2015 - 2017) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Minimum Shares	8,440
Target Shares	42,199
Maximum Shares	84,398
Fiscal 2016 (2016 - 2018) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Minimum Shares	13,268
Target Shares	66,338
Maximum Shares	132,676

Revolving Credit Facility - Add

Revolving Credit Facility - Additional Information (Detail) - Revolving Credit Facility [Member] - USD ($)	Nov. 02, 2016	Nov. 04, 2013	Sep. 30, 2016
Line Of Credit Facility [Line Items]
Credit facility initiation date		Nov. 4, 2013
Revolving credit facility amount		$ 20,000,000
Borrowings under credit facility			$ 0
Line of credit facility, expiration period		3 years
Debt outstanding			$ 0
Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Revolving credit facility amount	$ 30,000,000
Line of credit facility, expiration period	3 years
Credit facility fee percentage	0.15%
Minimum [Member] | Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Credit facility interest rate	1.00%
Maximum [Member] | Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Credit facility interest rate	1.75%
Multi-currency Overdraft Facility [Member] | Ireland | Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Line of credit facility additional borrowing capacity	$ 5,000,000
Credit facility incremental of additional borrowings	5,000,000
Multi-currency Overdraft Facility [Member] | Maximum [Member] | Ireland | Subsequent Event [Member]
Line Of Credit Facility [Line Items]
Line of credit facility additional borrowing capacity	$ 20,000,000

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Taxes from Continuing Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Current provision:
Federal	$ 6,550	$ 6,065	$ 6,470
State and foreign	152	136	147
Total current provision	6,702	6,201	6,617
Deferred provision (benefit):
Federal	169	58	(347)
State and foreign	92	35	(5)
Total deferred provision (benefit)	261	93	(352)
Income tax provision	$ 6,963	$ 6,294	$ 6,265

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Line Items]
U.S. federal statutory tax rate		35.00%	35.00%	35.00%
Reduction in deferred tax assets and valuation allowances		$ (2,500,000)	$ 348,000	$ 120,000
Income tax benefit from discontinued operations				100,000
Income tax expense		6,963,000	6,294,000	6,265,000
Excess tax benefit from stock-based compensation plans			432,000	236,000
Deferred tax asset valuation allowance	$ 3,847,000	3,847,000	5,721,000
Unrecognized tax benefits excluding interest and penalties that would impact effective tax rate	1,200,000	1,200,000	900,000	1,000,000
Liability for unrecognized tax benefits to change significantly in the next 12 months	600,000	600,000	600,000	$ 700,000
Undistributed earnings in foreign subsidiaries	0	0	$ 0
Accounting Standards Update 2016 09 [Member]
Income Tax Disclosure [Line Items]
Income tax expense	$ 500,000
Accounting Standards Update 2016 09 [Member] | Restatement Adjustment [Member]
Income Tax Disclosure [Line Items]
Income tax expense		600,000
In Vitro Diagnostics [Member]
Income Tax Disclosure [Line Items]
Capital losses realized		7,500,000
Reduction in deferred tax assets and valuation allowances		$ 2,600,000

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation Difference of Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Amount at statutory U.S. federal income tax rate	$ 5,932	$ 6,385	$ 6,465
Change because of the following items:
State income taxes, net of federal benefit	142	67	118
Stock-based compensation	(607)	16	21
Valuation allowance change	(2,500)	348	120
Tax reserve change	258	34	(121)
Federal manufacturing deduction	(280)	(268)	(235)
Federal research and development credit	(571)	(74)	(67)
Gain on strategic investment and corporate subsidiary	2,630
Foreign rate differential	622
Acquisition-related transaction costs	768
Contingent consideration accretion	522
Other	47	(214)	(36)
Income tax provision	$ 6,963	$ 6,294	$ 6,265

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Income Taxes (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Depreciable assets	$ (2,257)	$ 1,618
Deferred revenue	80	96
Accruals and reserves	1,153	835
Stock-based compensation	3,113	4,194
Impaired strategic investments	2,701	4,186
Capital loss carryforward	63	1,456
NOL carryforward	3,324
Federal and state R&D credit	110
Other	587	586
Valuation allowance	(3,847)	(5,721)
Total deferred tax assets	5,027	7,250
Less current deferred tax assets		(546)
Noncurrent deferred tax assets	$ 5,027	$ 6,704

Income Taxes - Summary of Recon

Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Income Tax Disclosure [Abstract]
Beginning of fiscal year	$ 1,248	$ 1,216	$ 1,300
Increases in tax positions for prior years	77	50	43
Decreases in tax positions for prior years	(21)	(10)	(1)
Increases in tax positions for current year	365	146	149
Lapse of the statute of limitations	(161)	(154)	(275)
End of fiscal year	$ 1,508	$ 1,248	$ 1,216

Defined Contribution Plan - Add

Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Compensation And Retirement Disclosure [Abstract]
Percentage of employee contributions	50.00%
Percentage of employee eligible compensation	6.00%
Contribution expense	$ 0.3	$ 0.3	$ 0.2

Amounts Reclassified Out of A64

Amounts Reclassified Out of Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income Loss [Line Items]
Amounts reclassified out of AOCI	$ 0
Maximum [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Amounts reclassified out of AOCI pre-tax basis		$ 300,000	$ 100,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Mar. 31, 2015USD ($)	Jun. 30, 2015USD ($)	Sep. 30, 2016USD ($)€ / $shares	Sep. 30, 2016EUR (€)shares	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 29, 2015USD ($)
Commitments And Contingencies [Line Items]
Agreed to pay the customer and settlement of claim									$ 2,500,000
Undisputed royalties earned									$ 500,000
Revenue recognized by company	$ 500,000
Pre tax compensation expense	$ 2,500,000
Additional shares of common stock to stockholders | shares					480,059	480,059
License agreement commencement date					2006-03	2006-03
Annual minimum payments for licenses					$ 224,000	€ 200,000
Exchange rate relating to license payment | € / $					1.1222
Future minimum payments associated with license					$ 2,700,000
Additional maximum amount payable on successful achievement of specified milestones to sellers of PR Pharma					$ 2,500,000
Indemnification period					5 years	5 years
Indemnification period expired date					Nov. 17, 2016	Nov. 17, 2016
Additional indemnification claims					$ 0
Rent expense related to operating leases					$ 100,000		$ 100,000	$ 100,000
Maximum [Member]
Commitments And Contingencies [Line Items]
Rights to receive contingent consideration		$ 100,000
Patents [Member]
Commitments And Contingencies [Line Items]
Patent expiry date					2027-09	2027-09
January 2009 through September 2014 [Member]
Commitments And Contingencies [Line Items]
Royalties overpaid			$ 5,700,000	$ 5,700,000

Commitments and Contingencies66

Commitments and Contingencies - Summary of Annual Commitments Pursuant to Operating Lease Agreements (Detail) $ in Thousands	Sep. 30, 2016USD ($)
Commitments And Contingencies Disclosure [Abstract]
2,017	$ 135
2,018	114
2,019	72
2,020	74
2,021	12
Total minimum lease payments	$ 407

Reportable Segment Informatio67

Reportable Segment Information - Additional Information (Detail) $ in Thousands	12 Months Ended
	Sep. 30, 2016USD ($)SegmentSource	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Number of operating segments | Segment	2
Allocated share-based compensation expense	$ 3,844	$ 2,381	$ 3,337
Number of primary sources of revenue | Source	2
Corporate [Member] | Director [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Allocated share-based compensation expense			$ 900

Reportable Segment Informatio68

Reportable Segment Information - Segment Revenue, Operating Income and Depreciation and Amortization (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Total revenue	$ 18,154	$ 19,972	$ 16,699	$ 16,541	$ 17,364	$ 15,914	$ 14,415	$ 14,205	$ 71,366	$ 61,898	$ 57,439
Operating income (loss)	$ 4,083	$ 6,597	$ 2,240	$ 3,939	$ 4,266	$ 5,857	$ 3,932	$ 5,034	16,859	19,089	18,576
Depreciation and amortization									4,873	2,805	2,715
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating income (loss)									24,090	25,676	26,095
Operating Segments [Member] | Medical Device [Member]
Segment Reporting Information [Line Items]
Total revenue									53,202	45,944	43,068
Operating income (loss)									16,975	21,192	22,636
Depreciation and amortization									3,261	1,138	1,136
Operating Segments [Member] | In Vitro Diagnostics [Member]
Segment Reporting Information [Line Items]
Total revenue									18,164	15,954	14,371
Operating income (loss)									7,115	4,484	3,459
Depreciation and amortization									789	873	850
Corporate [Member]
Segment Reporting Information [Line Items]
Operating income (loss)									(7,231)	(6,587)	(7,519)
Depreciation and amortization									$ 823	$ 794	$ 729

Reportable Segment Informatio69

Reportable Segment Information - Revenue from Major Customers (Detail)	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Revenue [Member] | Customer Concentration Risk [Member] | Medtronic [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue	25.00%	26.00%	19.00%

Reportable Segment Informatio70

Reportable Segment Information - Geographic Revenue (Detail) - Revenue [Member] - Geographic Concentration Risk [Member]	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue	79.00%	77.00%	78.00%
Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of revenue	21.00%	23.00%	22.00%

Quarterly Financial Data (Una71

Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 18,154	$ 19,972	$ 16,699	$ 16,541	$ 17,364	$ 15,914	$ 14,415	$ 14,205	$ 71,366	$ 61,898	$ 57,439
Operating income	4,083	6,597	2,240	3,939	4,266	5,857	3,932	5,034	16,859	19,089	18,576
Net income	$ 2,577	$ 3,934	$ 821	$ 2,653	$ 1,358	$ 3,924	$ 3,051	$ 3,614	$ 9,985	$ 11,947	$ 12,031
Basic net income per share	$ 0.20	$ 0.31	$ 0.06	$ 0.20	$ 0.10	$ 0.30	$ 0.24	$ 0.27	$ 0.77	$ 0.92	$ 0.88
Diluted net income per share	$ 0.20	$ 0.30	$ 0.06	$ 0.20	$ 0.10	$ 0.30	$ 0.23	$ 0.27	$ 0.76	$ 0.90	$ 0.87

Quarterly Financial Data (Una72

Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Results (Parenthetical) (Detail) - ASU 2016-09 [Member] - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Quarterly Financial Data [Line Items]
Adjustments to net income	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Adjusted basic net income per share				$ 0.20
Adjusted diluted net income per share				0.20
Previously Reported [Member]
Quarterly Financial Data [Line Items]
Adjusted basic net income per share				0.19
Adjusted diluted net income per share				$ 0.19

Quarterly Financial Data (Una73

Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended							12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Quarterly Financial Data [Line Items]
Acquisition related costs including due diligence and integration expenses								$ 3,187
Royalty and license fee								33,203	$ 31,763	$ 30,277
Royalty catch-up payment		$ 2,900				$ 600
Income tax provision								6,963	6,294	6,265
Claim settlement					$ 2,500				2,500
Impairment losses on strategic investments					1,500				1,500	1,184
Contingent royalties					$ 800
Gain on sale of strategic investment							$ 500	$ 514	$ 492	$ 842
ASU 2016-09 [Member]
Quarterly Financial Data [Line Items]
Income tax provision	$ 500
Out of Period Royalty Adjustment [Member]
Quarterly Financial Data [Line Items]
Royalty and license fee			$ 1,100
Previously Reported [Member]
Quarterly Financial Data [Line Items]
Royalty and license fee			$ 1,000
Creagh Medical and NorMedix [Member]
Quarterly Financial Data [Line Items]
Acquisition related costs including due diligence and integration expenses				$ 2,500