UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~December 31, 2014~~June 30, 2015

Commission File Number 1-9788


	LANDAUER, INC. (Exact Name of ~~registrant~~Registrant as ~~specified~~Specified in ~~its charter)~~Its Charter)

	Delaware	06-1218089
	(State or ~~other jurisdiction~~Other Jurisdiction of Incorporation or ~~organization)~~Organization)	(I.R.S. Employer Identification ~~Number)~~No.)

	2 Science Road, Glenwood, IL 60425 (Address of ~~principal executive offices~~Principal Executive Offices and ~~zip code)~~Zip Code)

	Registrant’s ~~telephone number, including area code:~~ Telephone Number, Including Area Code: (708) 755-7000

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

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

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


Large accelerated filer	[ ]	Accelerated filer	[ X ]
Non-accelerated filer	[ ]	Smaller reporting company	[ ]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [ X ]

As of ~~February 24,~~August 6, 2015, ~~9,560,674~~9,578,523 shares of common stock, par value $0.10 per share, of the registrant were outstanding.

TABLE OF CONTENTS



PART I FINANCIAL INFORMATION

Item 1.	Financial Statements

		Consolidated Balance Sheets (Unaudited)	3

		Consolidated Statements of Operations (Unaudited)	4

		Consolidated Statements of Comprehensive Income (Loss) (Unaudited)	5

		Consolidated Statement of Stockholders’ Equity (Unaudited)	6

		Consolidated Statements of Cash Flows (Unaudited)	7

		Notes to Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		2022

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		2427

Item 4.	Controls and Procedures		2428


PART II OTHER INFORMATION

Item 1.	Legal Proceedings		2731

Item 1A.	Risk Factors		2731

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		2831

Item 3.	Defaults Upon Senior Securities		2831

Item 4.	Mine Safety Disclosures		2831

Item 5.	Other Information		2831

Item 6.	Exhibits		2932


SIGNATURE			3033

Table of Contents

PART I FINANCIAL INFORMATION

Item 1.Financial Statements

LANDAUER, INC. AND SUBSIDIARIES

Consolidated Balance Sheets (Unaudited)


(Dollars in Thousands)	December 31, 2014		September 30, 2014		June 30, 2015		September 30, 2014
ASSETS
Current assets:
Assets
Cash and cash equivalents	$	8,397	$	6,761	$	8,441	$	6,761
Receivables, net of allowances of $1,742 at December 31, 2014 and $1,872 at September 30, 2014		29,565		34,707
Receivables, net of allowances of $1,456 at June 30, 2015 and $1,872 at September 30, 2014						29,392		34,707
Inventories		7,077		6,687		7,456		6,687
Deferred income tax asset - current		2,362		2,369		2,352		2,369
Prepaid income taxes		2,736		1,836		2,346		1,836
Prepaid expenses and other current assets		4,284		1,973		2,742		1,973
Current assets		54,421		54,333
Total current assets						52,729		54,333
Property, plant and equipment, at cost		104,792		104,010		109,430		104,010
Accumulated depreciation and amortization		(59,065)		(57,253)
Less accumulated depreciation and amortization						(62,730)		(57,253)
Net property, plant and equipment		45,727		46,757		46,700		46,757
Equity in joint ventures		22,477		23,835		23,315		23,835
Goodwill		42,226		43,218		40,850		43,218
Intangible assets, net of accumulated amortization of $37,769 at December 31, 2014 and $37,579 at September 30, 2014		13,764		14,077
Dosimetry devices, net of accumulated depreciation of $4,584 at December 31, 2014 and $4,353 at September 30, 2014		3,570		3,958
Intangible assets, net of accumulated amortization of $38,177 at June 30, 2015 and $37,579 at September 30, 2014						13,181		14,077
Dosimetry devices, net of accumulated depreciation of $5,190 at June 30, 2015 and $4,353 at September 30, 2014						3,741		3,958
Deferred income tax assets		18,467		18,374		18,823		18,374
Other assets		10,195		12,034		8,735		12,034
ASSETS	$	210,847	$	216,586
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Total assets					$	208,074	$	216,586

Liabilities
Accounts payable	$	5,681	$	6,248	$	4,625	$	6,248
Dividends payable		5,302		5,329		2,719		5,329
Deferred contract revenue		14,724		14,750		15,419		14,750
Accrued compensation and related costs		6,950		7,132		7,708		7,132
Accrued severance		807		2,731		411		2,731
Other accrued expenses		8,412		8,538		7,088		8,538
Current liabilities		41,876		44,728
Non-current liabilities:
Total current liabilities						37,970		44,728
Long-term debt		133,585		133,585		134,385		133,585
Pension and postretirement obligations		19,366		19,475		19,123		19,475
Deferred income taxes		484		509		426		509
Uncertain income tax liabilities		3,379		3,284		2,145		3,284
Other non-current liabilities		960		1,271		1,290		1,271
Non-current liabilities		157,774		158,124
Stockholders' equity:
Preferred stock, $.10 par value per share, authorized 1,000,000 shares; none issued		-		-
Common stock, $.10 par value per share, authorized 20,000,000 shares; 9,637,186 and 9,577,874 shares issued and outstanding at December 31, 2014 and September 30, 2014, respectively		952		958
Total liabilities						195,339		202,852
Commitments and Contingencies
Stockholders' equity
Preferred stock, $0.10 par value per share, authorized 1,000,000 shares; none issued						-		-
Common stock, $0.10 par value per share, authorized 20,000,000 shares; 9,663,531 and 9,577,874 shares issued and outstanding at June 30, 2015 and September 30, 2014, respectively						966		958
Additional paid in capital		40,729		40,317		41,556		40,317
Accumulated other comprehensive loss		(11,882)		(10,148)		(13,446)		(10,148)
(Accumulated deficit) retained earnings		(19,800)		(18,873)
Accumulated deficit						(17,518)		(18,873)
Landauer, Inc. stockholders' equity		9,999		12,254		11,558		12,254
Noncontrolling interest		1,198		1,480		1,177		1,480
Stockholders' equity		11,197		13,734
LIABILITIES AND STOCKHOLDERS' EQUITY	$	210,847	$	216,586
Total stockholders' equity						12,735		13,734
Total Liabilities and Stockholders' Equity					$	208,074	$	216,586

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


		Three Months Ended December 31,				Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands, Except per Share)	2014		2013 (As Restated)		2015		2014 (As Restated)		2015		2014 (As Restated)
Revenues:
Service revenues	$	32,057	$	31,745	$	31,924	$	31,800	$	96,223	$	96,415
Product revenues		5,490		6,402		3,543		4,068		14,930		16,654
Net revenues		37,547		38,147
Total revenues						35,467		35,868		111,153		113,069
Costs and expenses:
Service costs		15,634		15,010		15,531		16,109		47,323		46,274
Product costs		2,117		3,375		1,290		1,821		5,860		8,373
Total cost of sales		17,751		18,385		16,821		17,930		53,183		54,647
Gross profit		19,796		19,762		18,646		17,938		57,970		58,422
Selling, general and administrative		13,655		14,226		13,535		13,819		41,088		41,795
Goodwill and other intangible assets impairment charge						-		62,188		-		62,188
Acquisition, reorganization and nonrecurring costs		-		111		-		1,558		-		1,778
Operating income		6,141		5,425
Operating income (loss)						5,111		(59,627)		16,882		(47,339)
Equity in income of joint ventures		696		1,281		428		256		1,804		2,072
Interest expense, net		(953)		(937)		(1,080)		(867)		(2,997)		(2,818)
Other (expense) income, net		251		159		158		(21)		(76)		143
Income before taxes		6,135		5,928
Income tax expense		1,610		1,899
Net income		4,525		4,029
Income (loss) before taxes						4,617		(60,259)		15,613		(47,942)
Income tax expense (benefit)						481		(24,225)		3,271		(20,413)
Net income (loss)						4,136		(36,034)		12,342		(27,529)
Less: Net income attributed to noncontrolling interest		148		208		81		301		363		471
Net income attributed to Landauer, Inc.	$	4,377	$	3,821
Net income (loss) attributed to Landauer, Inc.					$	4,055	$	(36,335)	$	11,979	$	(28,000)

Net income per share attributable to Landauer, Inc. shareholders:
Net income (loss) per share attributable to Landauer, Inc. shareholders:
Basic	$	0.46	$	0.40	$	0.42	$	(3.83)	$	1.26	$	(2.96)
Weighted average basic shares outstanding		9,446		9,422		9,509		9,482		9,476		9,466

Diluted	$	0.46	$	0.40	$	0.42	$	(3.83)	$	1.25	$	(2.96)
Weighted average diluted shares outstanding		9,474		9,467		9,534		9,482		9,503		9,466

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


	Three Months Ended December 31, 2014
(Dollars in Thousands)	Landauer, Inc.		Noncontrolling Interest			Total
Net income	$	4,377	$	148		$	4,525
Other comprehensive income:
Defined benefit pension and postretirement plans activity, net of taxes of $0		72		-			72
Unrealized gains (losses) on available-for-sale securities, net of taxes of $0		(35)		-			(35)
Foreign currency translation adjustment, net of taxes of $954		(1,771)		(99)			(1,870)
Comprehensive income	$	2,643	$	49		$	2,692

	Three Months Ended December 31, 2013
	(As Restated)							Three Months Ended June 30, 2015						Nine Months Ended June 30, 2015
(Dollars in Thousands)	Landauer, Inc.		Noncontrolling Interest			Total		Landauer, Inc.		Noncontrolling Interest		Total		Landauer, Inc.		Noncontrolling Interest		Total
Net income	$	3,821	$	208		$	4,029	$	4,055	$	81	$	4,136	$	11,979	$	363	$	12,342
Other comprehensive income:					��
Defined benefit pension and postretirement plans activity, net of taxes of $27 and $80, respectively									46		-		46		137		-		137
Unrealized gains (losses) on available-for-sale securities, net of taxes of $9									41		-		41		43		-		43
Foreign currency translation adjustment, net of taxes of ($184), and $1,873, respectively									220		7		227		(3,478)		(191)		(3,669)
Comprehensive income								$	4,362	$	88	$	4,450	$	8,681	$	172	$	8,853

								Three Months Ended June 30, 2014						Nine Months Ended June 30, 2014
								(As Restated)						(As Restated)
(Dollars in Thousands)								Landauer, Inc.		Noncontrolling Interest		Total		Landauer, Inc.		Noncontrolling Interest		Total
Net (loss) income								$	(36,335)	$	301	$	(36,034)	$	(28,000)	$	471	$	(27,529)
Other comprehensive income:
Defined benefit pension and postretirement plans activity, net of taxes of $0		45					45		46		-		46		137		-		137
Unrealized gains (losses) on available-for-sale securities, net of taxes of $0		(79)					(79)		48		-		48		(6)		-		(6)
Foreign currency translation adjustment, net of taxes of $0		(256)		(68)			(324)		(314)		20		(294)		(161)		(29)		(190)
Comprehensive income	$	3,531	$	140		$	3,671

Comprehensive (loss) income								$	(36,555)	$	321	$	(36,234)	$	(28,030)	$	442	$	(27,588)

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


	Landauer, Inc. Stockholders' Equity														Landauer, Inc. Stockholders' Equity
(Dollars in Thousands)	Common Stock Shares		Common Stock		Addi- tional Paid in Capital		Accumulated Other Compre-hensive (Loss) Income		(Accumulated Deficit) Retained Earnings		Non- Controlling Interest		Total Stock- holders' Equity		Common Stock Shares		Common Stock		Addi- tional Paid in Capital		Accumulated Other Compre-hensive (Loss) Income		(Accumulated Deficit) Retained Earnings		Non- Controlling Interest		Total Stock- holders' Equity
September 30, 2014		9,577,874	$	958	$	40,317	$	(10,148)	$	(18,873)	$	1,480	$	13,734		9,577,874	$	958	$	40,317	$	(10,148)	$	(18,873)	$	1,480	$	13,734
Stock-based compensation arrangements		59,312		(6)		412		-		-		-		406		85,657		8		1,239		-		-		-		1,247
Dividends		-		-		-		-		(5,304)		(331)		(5,635)		-		-		-		-		(10,624)		(475)		(11,099)
Net income		-		-		-		-		4,377		148		4,525		-		-		-		-		11,979		363		12,342
Foreign currency translation adjustment, net of tax		-		-		-		(1,771)		-		(99)		(1,870)		-		-		-		(3,478)		-		(191)		(3,669)
Unrealized gains (losses) on available-for-sale securities, net of tax		-		-		-		(35)		-		-		(35)		-		-		-		43		-		-		43
Defined benefit pension and postretirement plans activity, net of tax		-		-		-		72		-		-		72		-		-		-		137		-		-		137
December 31, 2014		9,637,186	$	952	$	40,729	$	(11,882)	$	(19,800)	$	1,198	$	11,197
June 30, 2015																9,663,531	$	966	$	41,556	$	(13,446)	$	(17,518)	$	1,177	$	12,735

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



	Three Months Ended December 31,					Nine Months Ended June 30,
(Dollars in Thousands)		2014		2013 (As Restated)		2015		2014 (As Restated)
Cash flows from operating activities:
Net income		$	4,525	$	4,029
Adjustments to reconcile net income to net cash provided by operating activities:
Net income (loss)						$	12,342	$	(27,529)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization			3,078		3,732		9,274		11,419
Goodwill and other intangible assets impairment charge							-		62,188
Equity in income of joint ventures			(696)		(1,281)		(1,804)		(2,072)
Dividends from joint ventures			1,139		1,340		1,144		1,340
Stock-based compensation and related net tax benefits			437		282		1,422		1,066
Current and long-term deferred taxes, net			(1,195)		260		769		(21,829)
Gain on sale, disposal and abandonment of fixed assets			(3)		-
Loss (gain) on sale, disposal and abandonment of fixed assets							142		(35)
Gain on investments			(111)		(268)		(159)		(505)
Changes in operating assets and liabilities:
Decrease in accounts receivable, net			4,985		4,482		4,393		3,901
(Increase) decrease in prepaid taxes			(214)		901
(Increase) decrease in other operating assets, net			(1,437)		102
Decrease in accounts payable and other accrued liabilities			(971)		(3,840)
Increase in prepaid taxes							(606)		(2,224)
Increase in other operating assets, net							(594)		(73)
(Decrease) increase in accounts payable and other accrued liabilities							(3,366)		296
(Decrease) increase in other operating liabilities, net			(53)		200		(1,246)		608
Net cash provided by operating activities			9,484		9,939		21,711		26,551
Cash flows used by investing activities:

Cash flows from investing activities:
Acquisition of property, plant and equipment			(1,384)		(1,245)		(6,224)		(3,056)
Acquisition of joint ventures and businesses, net of cash acquired			-		(1,800)		-		(1,800)
Other investing activities, net			(315)		97		(467)		(855)
Net cash used by investing activities			(1,699)		(2,948)		(6,691)		(5,711)
Cash flows (used) provided by financing activities:

Cash flows from financing activities:
Net borrowings on revolving credit facility			-		(21)		-		(51)
Long-term borrowings - loan			8,800		14,000		26,300		27,500
Long-term borrowings - repayment			(8,800)		(13,000)		(25,500)		(32,000)
Dividends paid to stockholders			(5,347)		(5,274)		(13,237)		(15,771)
Other financing activities, net			(331)		49		(462)		(500)
Net cash used by financing activities			(5,678)		(4,246)		(12,899)		(20,822)

Effects of foreign currency translation			(471)		49		(441)		(52)
Net increase in cash and cash equivalents			1,636		2,794
Net increase (decrease) in cash and cash equivalents							1,680		(34)
Opening balance - cash and cash equivalents			6,761		8,672		6,761		8,672
Ending balance - cash and cash equivalents		$	8,397	$	11,466	$	8,441	$	8,638

Accrued capital spending included in accounts payable and other accrued liabilities		$	205	$	174	$	993	$	308

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

As used herein, the ~~“Company” or “Landauer” refers~~terms “Company,” “Landauer,” “we,” “us,” and “our” refer collectively to Landauer, Inc. and its ~~subsidiaries.~~subsidiaries through which its various businesses are conducted.

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The consolidated financial statements include the accounts of the Company, its subsidiaries and variable interest entities in which the Company has a controlling financial interest. All ~~inter-company~~intercompany balances and transactions ~~are~~have been eliminated in consolidation. Entities in which the Company does not have a controlling financial interest, but is considered to have significant influence, are accounted for on the equity method.

The ~~accompanying~~preparation of the interim 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 and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

We believe that we have included all normal recurring adjustments necessary for a fair presentation of the results for the interim period. Operating results for the quarter and nine months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2015.

These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014 (the “Form 10-K”) and other financial information filed with the Securities and Exchange Commission (the “SEC”). The September 30, 2014 balance sheet data was derived from audited financial statements, but does not include all disclosures required by ~~accounting principles generally accepted in the United States of America (“~~U.S. ~~GAAP”).~~GAAP.

The accounting policies followed by the Company are set forth in the ~~Company’s Annual Report on~~ Form 10-K, ~~for the fiscal year ended September 30, 2014. There~~and there have been no changes to the accounting policies for the ~~three~~nine month period ended ~~December 31, 2014.~~

~~The results of operations for the three month period ended December 31, 2014 are not necessarily indicative of the results to be expected for the full fiscal year.~~June 30, 2015.

In connection with the preparation of the consolidated financial statements for the fiscal year ended September 30, 2014, the Company identified errors in its previously issued financial statements for the interim ~~period~~periods ended ~~December 31, 2013.~~June 30, 2014. In accordance with accounting guidance presented in ASC 250-10 and SEC Staff Accounting ~~Bulletin~~Bulletin: No. 99 – Materiality (“SAB 99”), management assessed the materiality of these errors and concluded that they were material to the Company’s financial statements for the three and nine months ended ~~December 31, 2013.~~June 30, 2014. The Company ~~is restating~~restated its financial statements for the ~~interim period~~three and nine month periods ended ~~December 31, 2013~~June 30, 2014 to correct for these errors. Following is a description of the corrections:

Income taxes – The Company did not properly allocate income between taxing jurisdictions for certain items. This resulted in the misstatement of income tax expense (benefit), prepaid taxes, current and deferred tax assets and liabilities, other accrued expenses and accumulated other comprehensive income.

Revenue and accounts receivable – The Company identified the following errors related to revenue recognition and its accounting for receivables:

Dosimetry devices – The Company did not properly account for certain dosimetry devices, based on the expected useful life of the devices as determined by the wear period of the related badges. This resulted in a misstatement of cost of sales and dosimetry devices, net of accumulated depreciation.

Long-term investments - – The Company recorded fixed income mutual fund investments held by one of its foreign subsidiaries as cash, instead of properly classifying them as available-for-sale securities. As a result, both realized and unrealized gains were incorrectly recorded as interest income. This resulted in the misstatement of interest expense, net, other income (expense), net, net income attributed to noncontrolling interest, comprehensive income, cash, other assets, accumulated other comprehensive income, and noncontrolling interest.

Sales taxes – The Company did not collect and remit sales taxes to the proper taxing jurisdictions. This resulted in the misstatement of selling, general and administrative expenses and other accrued expenses.

Intangible assets – The Company’s intangible assets include purchased customer lists, licenses, patents, trademarks and tradenames. These assets are recorded at fair value and assigned estimated useful lives at the time of acquisition. The Company did not properly amortize certain customer lists and trademarks based on their assigned useful lives and, therefore, did not record amortization expense in the proper periods. This resulted in a misstatement of selling, general and administrative expenses and intangible assets, net of accumulated amortization.

Equity in joint ventures – The Company identified the following errors related to accounting for its joint ventures:

The following table summarizes the impact of the restatement on net income (loss) and diluted net income (loss) per share attributed to Landauer, Inc. for the three and nine months ended ~~December 31, 2013:~~June 30, 2014:

(Dollars in Thousands, Except per Share Amounts)

Three Months Ended
December 31, 2013
(Unaudited)

Net Income (Loss)

Diluted Net Income (Loss) Per Share
As previously reported

$
3,051

$
0.32
Revenue and accounts receivable

252

Dosimetry devices

12

Long-term investments

79

Sales taxes

(16)

Intangible assets

150

Equity in joint ventures

708

Total adjustments

1,185

0.12
Income tax expense (benefit)

403

0.04
Less amounts attributed to noncontrolling interest

12

-
Net impact of adjustments

770

0.08
As restated

$
3,821

$
0.40

~~The effect of the restatement on the previously issued Consolidated Statement of Operations for the three months ended December 31, 2013 is as follows:~~

Three Months Ended
December 31, 2013
(Unaudited)
(Dollars in Thousands, Except per Share)

Previously Reported

As Restated
Service revenues

$
31,894

$
31,745
Product revenues

5,811

6,402
Net revenues

37,705

38,147
Costs and expenses:

Service costs

15,049

15,010
Product costs

3,158

3,375
Total cost of sales

18,207

18,385
Gross profit

19,498

19,762
Selling, general, and administrative

14,362

14,226
Acquisition, reorganization and nonrecurring costs

111

111
Operating income

5,025

5,425
Equity in income of joint ventures

573

1,281
Interest expense, net

(892)

(937)
Other income (expense), net

37

159
Income before taxes

4,743

5,928
Income tax (benefit) expense

1,496

1,899
Net income

3,247

4,029
Less: Net income attributed to noncontrolling interest

196

208
Net income attributed to Landauer, Inc.

$
3,051

$
3,821
Net income per share attributed to Landauer, Inc. shareholders:

Basic

$
0.32

$
0.40
Weighted average basic shares outstanding

9,422

9,422
Diluted

$
0.32

$
0.40
Weighted average diluted shares outstanding

9,467

9,467



	Three Months Ended June 30, 2014 (Unaudited)				Nine Months Ended June 30, 2014 (Unaudited)
(Dollars in Thousands, Except per Share)	Net Income (Loss)		Diluted Net Income (Loss) Per Share		Net Income (Loss)		Diluted Net Income (Loss) Per Share
As previously reported	$	(36,626)	$	(3.86)	$	(28,578)	$	(3.02)
Revenue and accounts receivable		1,138				890
Dosimetry devices		13				38
Long-term investments		(48)				6
Sales taxes		(15)				(47)
Intangible assets		-				150
Equity in joint ventures		-				708
Total adjustments		1,088		0.11		1,745		0.18
Income tax expense (benefit)		805		0.08		1,167		0.12
Less amounts attributed to noncontrolling interest		(8)		-		-		-
Net impact of adjustments		291		0.03		578		0.06
As restated	$	(36,335)	$	(3.83)	$	(28,000)	$	(2.96)

The effect of the restatement on the previously issued Consolidated Statement of ~~Cash Flows~~Operations for the three and nine months ended ~~December 31, 2013~~June 30, 2014 is as follows:

Three Months Ended
December 31, 2013
(Unaudited) (a)
(Dollars in Thousands)

Previously Reported

As Restated
Cash flows provided from operating activities:

Net income

$
3,247

$
4,029
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3,894

3,732
Gain on investments

(146)

(268)
Equity in income of joint ventures

(573)

(1,281)
Dividends from joint ventures

1,340

1,340
Stock-based compensation and related net tax benefits

282

282
Current and long-term deferred taxes, net

292

260
Changes in operating assets and liabilities:

Decrease in accounts receivable, net

4,396

4,482
Decrease in prepaid taxes

466

901
(Increase) decrease in other operating assets, net

(88)

102
Decrease in accounts payable and other accrued liabilities

(3,328)

(3,840)
Increase in other operating liabilities, net

200

200
Net cash provided by operating activities

9,982

9,939
Cash flows used by investing activities:

Acquisition of property, plant & equipment

(1,245)

(1,245)
Acquisition of joint ventures and businesses, net of cash acquired

(1,800)

(1,800)
Other investing activities, net

(573)

97
Net cash used by investing activities

(3,618)

(2,948)
Cash flows (used) provided by financing activities:

Net borrowings on revolving credit facility

(21)

(21)
Long–term borrowings - loan

14,000

14,000
Long–term borrowings - repayment

(13,000)

(13,000)
Dividends paid to stockholders

(5,274)

(5,274)
Other financing activities, net

49

49
Net cash used by financing activities

(4,246)

(4,246)
Effects of foreign currency translation

(30)

49
Net increase in cash and cash equivalents

2,088

2,794
Opening balance – cash and cash equivalents

11,184

8,672
Ending balance – cash and cash equivalents

$
13,272

$
11,466

~~(a)~~

As reported in the Company's 2014 third fiscal quarter Form 10-Q (filed on August 11, 2014), certain errors were identified in the Consolidated Statement of Cash Flows that impacted prior periods. The errors related to the following: treatment of accrued additions for property, plant and equipment, classification of debt financing fees and classification of unrealized gains or losses on investments in the Consolidated Statements of Cash Flows. The prior period consolidated statements of cash flows were revised in the 2014 third fiscal quarter Form 10-Q to correct for these errors and the impacts of the corrections are reflected within the 'Previously Reported' columns above.



	Three Months Ended June 30, 2014 (Unaudited)				Nine Months Ended June 30, 2014 (Unaudited)
(Dollars in Thousands, Except per Share)	Previously Reported		As Restated		Previously Reported		As Restated
Service revenues	$	31,013	$	31,800	$	95,890	$	96,415
Product revenues		3,753		4,068		16,135		16,654
Net revenues		34,766		35,868		112,025		113,069
Costs and expenses:
Service costs		16,149		16,109		46,393		46,274
Product costs		1,830		1,821		8,138		8,373
Total cost of sales		17,979		17,930		54,531		54,647
Gross profit		16,787		17,938		57,494		58,422
Selling, general, and administrative		13,805		13,819		41,902		41,795
Goodwill and other intangible assets impairment charge		62,188		62,188		62,188		62,188
Acquisition, reorganization and nonrecurring costs		1,558		1,558		1,778		1,778
Operating loss		(60,764)		(59,627)		(48,374)		(47,339)
Equity in income of joint ventures		256		256		1,364		2,072
Interest expense, net		(817)		(867)		(2,684)		(2,818)
Other income (expense), net		(22)		(21)		7		143
Loss before taxes		(61,347)		(60,259)		(49,687)		(47,942)
Income tax benefit		(25,030)		(24,225)		(21,580)		(20,413)
Net loss		(36,317)		(36,034)		(28,107)		(27,529)
Less: Net income attributed to noncontrolling interest		309		301		471		471
Net loss attributed to Landauer, Inc.	$	(36,626)	$	(36,335)	$	(28,578)	$	(28,000)
Net loss per share attributed to Landauer, Inc. shareholders:
Basic	$	(3.86)	$	(3.83)	$	(3.02)	$	(2.96)
Weighted average basic shares outstanding		9,482		9,482		9,466		9,466
Diluted	$	(3.86)	$	(3.83)	$	(3.02)	$	(2.96)
Weighted average diluted shares outstanding		9,482		9,482		9,466		9,466

The effect of the restatement on the previously issued Consolidated Statement of Cash Flows for the nine months ended June 30, 2014 is as follows:



	Nine Months Ended June 30, 2014 (Unaudited)
(Dollars in Thousands)	Previously Reported		As Restated
Cash flows from operating activities:
Net loss	$	(28,107)	$	(27,529)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		11,607		11,419
Goodwill and other intangible assets impairment charge		62,188		62,188
Gain on sale, disposal and abandonment of assets		(35)		(35)
Gain on investments		(369)		(505)
Equity in income of joint ventures		(1,364)		(2,072)
Dividends from joint ventures		1,340		1,340
Stock-based compensation and related net tax benefits		1,066		1,066
Current and long-term deferred taxes, net		(21,973)		(21,829)
Changes in operating assets and liabilities:
Decrease in accounts receivable, net		3,815		3,901
Increase in prepaid taxes		(3,247)		(2,224)
Increase in other operating assets, net		(227)		(73)
Increase in accounts payable and other accrued liabilities		1,379		296
Increase in other operating liabilities, net		608		608
Net cash provided by operating activities		26,681		26,551

Cash flows from investing activities:
Acquisition of property, plant & equipment		(3,056)		(3,056)
Acquisition of joint ventures and businesses, net of cash acquired		(1,800)		(1,800)
Other investing activities, net		(1,037)		(855)
Net cash used by investing activities		(5,893)		(5,711)

Cash flows from financing activities:
Net borrowings on revolving credit facility		(51)		(51)
Long-term borrowings – loan		27,500		27,500
Long-term borrowings – repayment		(32,000)		(32,000)
Dividends paid to stockholders		(15,771)		(15,771)
Other financing activities, net		(500)		(500)
Net cash used by financing activities		(20,822)		(20,822)

Effects of foreign currency translation		4		(52)
Net decrease in cash and cash equivalents		(30)		(34)
Opening balance – cash and cash equivalents		11,184		8,672
Ending balance – cash and cash equivalents	$	11,154	$	8,638

In connection with the preparation of the consolidated financial statements for the interim periods ended March 31, 2015, the Company identified errors in its previously issued financial statements for the interim periods ended June 30, 2014. The Company did not properly report sales to related parties in its Related Party Transactions footnote. As a result of these errors, the Company understated sales to Aquila by $1 and $2,361 for the three and nine months ended June 30, 2014, respectively, and understated sales to Nagase by $80 and $179 for the three and nine months ended June 30, 2014, respectively. In accordance with accounting guidance presented in SAB 99, management assessed the materiality of these errors and concluded that they were not material to the Company’s financial statements for the three and nine months ended June 30, 2014. The Company is revising its footnotes to the financial statements for the three and nine month periods ended June 30, 2014 to correct for these errors.

In ~~July 2013,~~April 2014, the Financial Accounting Standards Board (“FASB”) issued ~~new~~revised guidance to reduce the diversity in presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. This requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with certain exceptions listed in the guidance. This guidance was adopted by the Company in the first quarter of fiscal 2015. The adoption of this guidance did not have a material impact on the Company’s ~~consolidated~~results of operations, financial ~~statements.~~position and liquidity.

In November 2014, the FASB issued new guidance on accounting for pushdown accounting in the event of a business combination. This update provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. This guidance was adopted by the Company in the first quarter of fiscal 2015. The adoption of this guidance did not have a material impact on the Company’s results of operations, financial position and liquidity.

In May 2014, the FASB issued new guidance for recognizing revenue from contracts with customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In July 2015, the FASB deferred the effective date of the new revenue standard by one year. Public companies would now be required to adopt the new guidance for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The FASB decided to allow earlier adoption of the new revenue standard, but not earlier than the original effective date. This guidance is effective for the Company in the first quarter of fiscal ~~2018. Early adoption is not permitted.~~2019. The Company is currently evaluating the impact that adoption of this guidance will have on its ~~consolidated~~results of operations, financial ~~statements.~~position and liquidity.

In June 2014, the FASB issued new guidance on accounting for share-based payments requiring a specific performance target to be achieved in order for employees to become eligible to vest in the awards when that performance target may be achieved after the requisite service period for the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period for which the requisite service has already been rendered. This guidance is effective for the Company in the first quarter of fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its ~~consolidated~~results of operations, financial ~~statements.~~position and liquidity.

In August 2014, the FASB issued new guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of doubt about the entity’s ability to continue as a going concern. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. This guidance is effective for the Company in the first quarter of fiscal 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its ~~consolidated~~ results of operations, financial ~~statements.~~

In November 2014, the FASB issued new guidance on accounting for pushdown accounting in the event of a business combination. This update provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. This guidance was adopted by the Company in the first quarter of fiscal 2015. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements.position and liquidity.

In January 2015, the FASB issued new guidance on accounting for unusual and infrequently occurring items, which eliminates the concept of extraordinary items. An unusual and infrequently occurring item will no longer be classified as an extraordinary item and segregated from ordinary operations in the income statement, but will be shown as a component of income from continuing operations or separately disclosed in notes to the financial statements. This guidance is effective for the Company in the first quarter of fiscal 2017, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on its ~~consolidated~~results of operations, financial ~~statements.~~position and liquidity.

In February 2015, the FASB issued amended guidance on the model used to evaluate whether certain legal entities should be consolidated. This guidance is effective for the Company in the first quarter of fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its ~~consolidated~~results of operations, financial ~~statements.~~position and liquidity.

The Company estimates the fair value of assets and liabilities in accordance with the framework established by the authoritative guidance for fair value measurements. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows:

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

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



	Fair Value Measurements at December 31, 2014 Using						Fair Value Measurements at June 30, 2015
(Dollars in Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Level 1		Level 2		Level 3
Asset Category
Cash equivalents	$	167	$	-	$	-	$	94	$	-	$	-
Mutual funds		3,845		-		-		3,672		-		-
Available-for-sale securities		-		2,179		-		-		1,899		-
Total financial assets at fair value	$	4,012	$	2,179	$	-	$	3,766	$	1,899	$	-

	Fair Value Measurements at September 30, 2014 Using						Fair Value Measurements at September 30, 2014
(Dollars in Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Level 1		Level 2		Level 3
Asset Category
Cash equivalents	$	105	$	-	$	-	$	105	$	-	$	-
Mutual funds		3,629		-		-		3,629		-		-
Available-for-sale securities		-		2,382		-		-		2,382		-
Total financial assets at fair value	$	3,734	$	2,382	$	-	$	3,734	$	2,382	$	-

Following is a description of each category in the fair value hierarchy and the financial assets and liabilities of the Company that were included in each category at ~~December 31, 2014~~June 30, 2015 and September 30, 2014, measured on a recurring basis.

The Level 1 financial assets were comprised of investments in trading securities, which are reported in other long-term assets. The investments are held in a Rabbi trust for benefits under the Company’s deferred compensation plan. Under the plan, participants designate investment options to serve as the basis for measurement of the notional value of their accounts. The investments include a money market fund and mutual funds that are publicly traded. The fair values of the shares or underlying securities of these funds are based on quoted market prices.

The Level 2 financial assets are long-term investments consisting primarily of fixed income mutual funds, classified as available-for-sale securities. These are reported in other long-term assets. The investments in fixed income mutual funds are valued based on the net asset value of the underlying securities as provided by the investment account manager. The investments are not restricted or subject

to a lockup and may be redeemed on demand. Notice within a certain period of time prior to redemption is not required.

The Company’s ~~long term~~long-term debt is classified as Level 2. The carrying amount of the Company’s long-term debt approximated fair value as the stated interest rates were variable in relation to prevailing market rates.

The Company recorded a liability for contingent consideration during the second quarter of fiscal 2014 related to the acquisition of ilumark GmbH and the launch of its new medical products. The liability was recorded at fair value, which was determined using a discounted cash flow model based on assumptions and projections relevant to revenues. A discount rate of 11% was used and payments are projected to occur in fiscal 2016 and 2017. The fair value of the contingent consideration was ~~$699~~$798 as of ~~December 31, 2014,~~June 30, 2015 and is reported in other accrued expenses and other non-current ~~liabilities.~~liabilities at $137 and $661, respectively. The contingent consideration liability is classified as Level 3.

The Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the nine months ended June 30, 2015 or fiscal year ended September 30, 2014. There were no transfers between fair value hierarchy levels during ~~the period.~~these periods.

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

Three Months Ended
December 31,
(Dollars in Thousands, Except per Share)
2014

2013
(As Restated)
Basic Net Income per Share:

Net income attributed to Landauer, Inc.

$
4,377

$
3,821
Less: Income allocated to unvested restricted stock

29

46
Net income available to common stockholders

$
4,348

$
3,775
Basic weighted average shares outstanding

9,446

9,422
Net income per share - Basic

$
0.46

$
0.40

Diluted Net Income per Share:

Net income attributed to Landauer, Inc.

$
4,377

$
3,821
Less: Income allocated to unvested restricted stock

29

46
Net income available to common stockholders

$
4,348

$
3,775
Basic weighted average shares outstanding

9,446

9,422
Effect of dilutive securities

28

45
Diluted weighted averages shares outstanding

9,474

9,467
Net income per share - Diluted

$
0.46

$
0.40
Dividends paid per share

$
0.55

$
0.55



	Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands, Except per Share)	2015		2014 (As Restated)		2015		2014 (As Restated)
Basic Net Income (Loss) per Share:
Net income (loss) attributed to Landauer, Inc.	$	4,055	$	(36,335)	$	11,979	$	(28,000)
Less: Income allocated to unvested restricted stock		20		-		67		-
Net income (loss) available to common stockholders	$	4,035	$	(36,335)	$	11,912	$	(28,000)
Basic weighted average shares outstanding		9,509		9,482		9,476		9,466
Net income (loss) per share - Basic	$	0.42	$	(3.83)	$	1.26	$	(2.96)

Diluted Net Income (Loss) per Share:
Net income (loss) attributed to Landauer, Inc.	$	4,055	$	(36,335)	$	11,979	$	(28,000)
Less: Income allocated to unvested restricted stock		20		-		67		-
Net income (loss) available to common stockholders	$	4,035	$	(36,335)	$	11,912	$	(28,000)
Basic weighted average shares outstanding		9,509		9,482		9,476		9,466
Effect of dilutive securities		25		-		27		-
Diluted weighted averages shares outstanding		9,534		9,482		9,503		9,466
Net income (loss) per share - Diluted	$	0.42	$	(3.83)	$	1.25	$	(2.96)

Dividends paid per share	$	0.275	$	0.55	$	1.10	$	1.65

~~On March 9, 2015, the Company declared a reduction in dividend to $0.275 per share, compared to $0.55 per share~~In periods where losses are recorded, inclusion of potentially dilutive securities in the ~~previous quarter.~~calculation would decrease the loss per common share and, therefore, these securities are not added to the weighted average number of shares outstanding. The computations of diluted net loss per common share for the three and nine months ended June 30, 2014 did not include the following outstanding shares of restricted stock as well as the effects of options to acquire common stock as the inclusion of these securities would have been antidilutive:

The components of net periodic benefit cost for pension and other benefits were as follows:



Pension Benefits	Three Months Ended December 31,				Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)	2014		2013		2015		2014		2015		2014
Interest cost	$	364	$	375	$	364	$	375	$	1,092	$	1,125
Expected return on plan assets		(396)		(377)		(396)		(377)		(1,188)		(1,131)
Amortization of net loss		84		48		85		48		253		145
Net periodic benefit cost	$	52	$	46	$	53	$	46	$	157	$	139

Other Benefits	Three Months Ended December 31,				Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)	2014		2013		2015		2014		2015		2014
Service cost	$	13	$	15	$	13	$	15	$	38	$	46
Interest cost		8		13		8		13		24		38
Amortization of net gain		(12)		(3)		(12)		(2)		(36)		(8)
Net periodic benefit cost	$	9	$	25	$	9	$	26	$	26	$	76

The Company, under the IRS minimum funding standards, has no required contributions to make to its defined benefit pension plan during fiscal 2015.

The Company maintains 401(k) Retirement Savings Plans for certain employees, which may provide for employer matching contributions, and a supplemental defined contribution plan for certain executives, which provides for employer contributions at the discretion of the Company. Amounts expensed for Company contributions under these plans during the three months ended ~~December 31,~~June 30, 2015 and 2014 were $500 and ~~2013~~$495, respectively. Amounts expensed during the nine months ended June 30, 2015 and 2014 were ~~$407~~$1,349 and ~~$458,~~$1,354, respectively.

Changes in the carrying amount of goodwill by reportable segment for the ~~three~~nine months ended ~~December 31, 2014~~June 30, 2015 were as follows:



(Dollars in Thousands)	Radiation Measurement		Medical Physics		Medical Products		Total		Radiation Measurement		Medical Physics		Medical Products		Total
Balance as of September 30, 2014
Goodwill	$	18,961	$	22,611	$	65,714	$	107,286	$	18,961	$	22,611	$	65,714	$	107,286
Accumulated impairment losses		-		-		(64,068)		(64,068)		-		-		(64,068)		(64,068)
Balance as of September 30, 2014	$	18,961	$	22,611	$	1,646	$	43,218	$	18,961	$	22,611	$	1,646	$	43,218
Effects of foreign currency		(923)		-		(69)		(992)		(2,162)		-		(206)		(2,368)
Balance as of December 31, 2014
Balance as of June 30, 2015
Goodwill	$	18,038	$	22,611	$	65,645	$	106,294	$	16,799	$	22,611	$	65,508	$	104,918
Accumulated impairment losses		-		-		(64,068)		(64,068)		-		-		(64,068)		(64,068)
Balance as of December 31, 2014	$	18,038	$	22,611	$	1,577	$	42,226
Balance as of June 30, 2015									$	16,799	$	22,611	$	1,440	$	40,850



	December 31, 2014								June 30, 2015
(Dollars in Thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Intangibles Impairment Charge		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Accumulated Intangibles Impairment Charge
Customer lists	$	43,756	$	33,053	$	10,703	$	18,657	$	43,090	$	33,307	$	9,783	$	18,657
Trademarks and tradenames		2,176		2,051		125		1,498		2,183		2,051		132		1,498
Licenses and patents		5,024		2,108		2,916		665		5,508		2,262		3,246		665
Other intangibles		577		557		20		-		577		557		20		-
Intangible assets	$	51,533	$	37,769	$	13,764	$	20,820	$	51,358	$	38,177	$	13,181	$	20,820



	September 30, 2014								September 30, 2014
(Dollars in Thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Intangibles Impairment Charge		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Accumulated Intangibles Impairment Charge
Customer lists	$	44,138	$	32,934	$	11,204	$	18,657	$	44,138	$	32,934	$	11,204	$	18,657
Trademarks and tradenames		2,176		2,051		125		1,498		2,176		2,051		125		1,498
Licenses and patents		4,765		2,037		2,728		665		4,765		2,037		2,728		665
Other intangibles		577		557		20		-		577		557		20		-
Intangible assets	$	51,656	$	37,579	$	14,077	$	20,820	$	51,656	$	37,579	$	14,077	$	20,820

Identifiable intangible assets with finite lives are amortized over their estimated useful lives. Intangible asset amortization expense was ~~$563~~$560 and ~~$1,056~~$1,681 for the three and nine months ended ~~December 31, 2014~~June 30, 2015 and ~~2013, respectively.~~$897 and $3,119 for the three and nine months ended June 30, 2014.

Accumulated elements of other comprehensive loss, net of tax, are included in the stockholders’ equity section of the condensed consolidated balance sheets. Changes in each component for the ~~three~~nine months ended ~~December 31~~June 30 are as follows:

(Dollars in Thousands)
Foreign Currency Translation Adjustments

Unrealized Gains and Losses on Available-for-Sale Securities

Pension and Postretirement Plans

Comprehensive (Loss) Income
Balance at September 30, 2014
$
(2,493)

$
166

$
(7,821)

$
(10,148)
Other comprehensive income before reclassifications

(1,771)

57

-

(1,714)
Amounts reclassified from accumulated other comprehensive income

-

(92)

72

(20)
Net current period other comprehensive income

(1,771)

(35)

72

(1,734)
Balance at December 31, 2014
$
(4,264)

$
131

$
(7,749)

$
(11,882)



(Dollars in Thousands)	Foreign Currency Translation Adjustments		Unrealized Gains and Losses on Available-for-Sale Securities		Pension and Postretirement Plans		Comprehensive (Loss) Income
Balance at September 30, 2014	$	(2,493)	$	166	$	(7,821)	$	(10,148)
Other comprehensive (loss) income before reclassifications		(3,478)		151		-		(3,327)
Amounts reclassified from accumulated other comprehensive (loss) income		-		(108)		137		29
Net current period other comprehensive (loss) income		(3,478)		43		137		(3,298)
Balance at June 30, 2015	$	(5,971)	$	209	$	(7,684)	$	(13,446)

(Dollars in Thousands)
Foreign Currency Translation Adjustments

Unrealized Gains and Losses on Available-for-Sale Securities

Pension and Postretirement Plans

Comprehensive (Loss) Income
Balance at September 30, 2013 (As Restated)
$
(383)

$
132

$
(4,157)

$
(4,408)
Other comprehensive income before reclassifications

(256)

43

-

(213)
Amounts reclassified from accumulated other comprehensive income

-

(122)

45

(77)
Net current period other comprehensive income

(256)

(79)

45

(290)
Balance at December 31, 2013 (As Restated)
$
(639)

$
53

$
(4,112)

$
(4,698)



(Dollars in Thousands)	Foreign Currency Translation Adjustments		Unrealized Gains and Losses on Available-for-Sale Securities		Pension and Postretirement Plans		Comprehensive (Loss) Income
Balance at September 30, 2013 (As Restated)	$	(383)	$	132	$	(4,157)	$	(4,408)
Other comprehensive (loss) income before reclassifications		(161)		130		-		(31)
Amounts reclassified from accumulated other comprehensive (loss) income		-		(136)		137		1
Net current period other comprehensive (loss) income		(161)		(6)		137		(30)
Balance at June 30, 2014 (As Restated)	$	(544)	$	126	$	(4,020)	$	(4,438)

The tables below present the impact on net income of significant amounts reclassified out of each component of accumulated other comprehensive loss:

(1)These accumulated other comprehensive loss components are included in the computation of net periodic benefit costs (refer to Note 5 of the Notes to Consolidated Financial Statements for additional details regarding employee benefit plans).

(1)This amount is reported in Interest ~~Expense,~~expense, net on the Consolidated Statements of Operations

(2)This amount is reported in Income ~~Tax Expense~~tax expense (benefit) on the Consolidated Statements of Operations

The effective tax rates for the ~~first fiscal quarter of~~three months ended June 30, 2015 and 2014 were ~~26.2%~~10.4% and ~~32.0%~~40.2%, respectively. The decrease in the effective tax rate was primarily due to the mix of earnings between jurisdictions with differing tax rates and the realization of an unrecognized tax benefit. The effective tax rates for the nine months ended June 30, 2015 and 2014 were 21.0% and 42.6%, respectively. The decrease in the effective tax rate was primarily due to the enactment of the research and development credit for calendar year 2014 in the first fiscal quarter of ~~2015.~~

2015, the mix of earnings between jurisdictions with differing tax rates and the realization of an unrecognized tax benefit. The Company believes it is reasonably possible that $592 of unrecognized tax benefits will be realized in fiscal year 2016.

The Company is organized into three reportable business segments: Radiation Measurement, Medical Physics and Medical Products. These segments reflect the manner in which the Company’s businesses are currently managed and represent an aggregation of services and products based on type of customer and how the businesses are marketed. For more information regarding the nature of the Company’s services and products, see Note 17 of the Notes to Consolidated Financial Statements in the Form 10-K.

The following tables summarize financial information for each reportable segment:

Three Months Ended
December 31,
(Dollars in Thousands)

2014

2013
(As Restated)
Revenues by segment:

Radiation Measurement

$
26,491

$
28,183
Medical Physics

8,484

7,739
Medical Products

2,572

2,225
Consolidated revenues

$
37,547

$
38,147

Three Months Ended
December 31,
(Dollars in Thousands)

2014

2013
(As Restated)
Operating income (loss) by segment:

Radiation Measurement

$
9,384

$
8,829
Medical Physics

618

433
Medical Products

334

(288)
Corporate

(4,195)

(3,549)
Consolidated operating income

$
6,141

$
5,425



					Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)	December 31, 2014		September 30, 2014		2015		2014 (As Restated)		2015		2014 (As Restated)
Segment assets:
Revenues by segment:
Radiation Measurement	$	142,577	$	148,151	$	24,143	$	25,320	$	77,880	$	82,187
Medical Physics		39,295		38,851		8,926		8,175		25,971		23,943
Medical Products		48,337		48,164		2,398		2,373		7,302		6,939
Eliminations		(19,362)		(18,580)
Consolidated assets	$	210,847	$	216,586
Consolidated revenues					$	35,467	$	35,868	$	111,153	$	113,069

					Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)					2015		2014 (As Restated)		2015		2014 (As Restated)
Operating income (loss) by segment:
Radiation Measurement					$	7,604	$	7,466	$	26,402	$	26,095
Medical Physics						1,143		435		2,082		1,467
Medical Products						375		(62,429)		953		(62,891)
Corporate						(4,011)		(5,099)		(12,555)		(12,010)
Consolidated operating income (loss)					$	5,111	$	(59,627)	$	16,882	$	(47,339)

The Company has a minority interest in Yamasato, Fujiwara, Higa & Associates, Inc. doing business as Aquila. The Company provides dosimetry parts to Aquila for its military contract. Certain amounts reported in the tables below for the three and nine months ended June 30, 2014 have been corrected for an error discussed in Note 1. The sales to and purchases from Aquila were as follows for the periods ended:

The Company has a 50% equity interest in Nagase-Landauer, Ltd. (“Nagase”), a radiation measurement company in Japan. The sales to and purchases from Nagase were as follows for the periods ended:

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

The following discussion and analysis of the Company’s unaudited consolidated financial condition and results of operations should be read in conjunction with the annual audited consolidated financial statements and related notes thereto. The following discussion includes forward-looking statements that involve certain risks and uncertainties. For additional information regarding forward-looking statements and risk factors, see “Forward-Looking Statements” herein and Item ~~1A.~~1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014.

The preparation of the interim consolidated financial statements in conformity with U.S. GAAP requires ~~that~~ management to make ~~assumptions~~estimates and ~~estimates~~assumptions that affect the ~~results of operations and the~~reported amounts of assets and liabilities ~~reported in~~and disclosure of contingent assets and liabilities at the date of the interim consolidated financial statements ~~as well as related disclosures.~~ and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Critical accounting policies are those that are most important to the portrayal of a company’s financial condition and results of operations, and that require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Company bases its estimates, judgments and assumptions on historical experience and other relevant factors that are believed to be reasonable under the circumstances. In any given reporting period, the Company’s actual results may differ from the estimates, judgments and assumptions used in preparing the consolidated financial statements.

Comparison of the ~~first~~third fiscal quarter ended ~~December 31, 2014~~June 30, 2015 and the ~~first~~third fiscal quarter ended ~~December 31, 2013~~June 30, 2014

Revenues for the ~~first~~third fiscal quarter of 2015 were ~~$37.5~~$35.5 million, a decrease of ~~$0.6~~$0.4 million, or ~~1.6%~~1.1%, compared ~~with~~to revenues of ~~$38.1~~$35.9 million for the ~~first~~third fiscal quarter of 2014. ~~The~~Revenues in the Radiation Measurement segment decreased ~~$1.7~~$1.2 million, which was primarily due to an unfavorable foreign currency impact of ~~$0.8~~$1.5 million, ~~and a decrease~~partially offset by an increase in ~~sales~~domestic revenues of ~~military products to its joint venture of $0.7~~$0.3 million. ~~The decrease~~Revenues in ~~sales to its joint venture resulted from discontinued sales of low margin components for military products during~~ the ~~second half of fiscal 2014. The Company continues to sell higher margin Radwatch products to the joint venture. The~~ Medical Physics segment increased $0.7 million, due to increased imaging ~~and radiation therapy~~ services. ~~The~~Revenues in the Medical Products segment ~~increased $0.4 million, due to higher domestic revenues and the full-quarter impact in fiscal 2015 of a modest acquisition in December 2013.~~were flat.

Gross margin was ~~52.8%~~52.6% for the ~~first~~third fiscal quarter of 2015, compared with ~~52.0%~~50.0% for the ~~first~~third fiscal quarter of 2014. ~~Higher gross margins~~Gross margin in the Radiation Measurement segment increased by 4.1% for the third fiscal quarter of 2015 as compared to the third fiscal quarter of 2014 due to ~~favorable~~an improved mix of higher margin service revenues versus lower margin product ~~mix, were partially offset by a 0.6% decline in gross margin~~revenues. Gross margins in the Medical Physics segment ~~driven~~increased by ~~increased staffing expenses~~2.7% for the third fiscal quarter of 2015 as compared to ~~support additional~~the third fiscal quarter of 2014 due to improved utilization of personnel supporting contracts in the imaging and therapy ~~divisions and a 0.5% decline in gross margin in the Medical Products segment driven by Spherz price pressure.~~divisions.

Selling, general and administrative expenses for the ~~first~~third fiscal quarter of 2015 were ~~$13.7~~$13.5 million, a decrease of ~~$0.6~~$0.3 million, or ~~4.2%~~2.2%, compared with ~~$14.3~~$13.8 million for the ~~first~~third fiscal quarter of 2014. ~~The decrease~~Amortization expense in ~~selling, general and administrative expenses resulted primarily from a $0.9~~the Medical Products segment decreased $0.5 million ~~decrease in research and development expenses and a $0.7 million decrease in amortization expense~~ as a result of adjustments recorded during the third fiscal quarter of 2014 to reduce the carrying value of intangible assets, ~~partially offset by higher legal, audit~~ and ~~other professional fees of $0.7 million.~~

~~Operating income~~operating expenses in the Medical Physics segment decreased $0.3 million primarily due to reduced administrative staffing. Selling and marketing expenses increased $0.5 million for the ~~first~~third fiscal quarter of ~~2015 was $6.1 million, an increase of $0.7 million, or 13.0%, compared with operating income of $5.4 million~~2015. The Company added sales and marketing personnel to grow market share in the professional office market and to promote the Company’s solutions for ~~the first fiscal quarter of 2014.~~ The ~~increase in operating income was driven by a $0.9 million decrease in research~~Joint Commission’s new Diagnostic Imaging requirements that became effective for hospitals and ~~development expenses, offset by an increase in other selling, general and administrative expenses of $0.3 million.~~ambulatory care centers on July 1, 2015.

The Company recorded a pretax charge of $41.4 million to reduce the carrying amount of goodwill and a pretax charge of $20.8 million to reduce the carrying amount of intangible assets during the third quarter of 2014. The charges resulted from an impairment analysis the Company performed in the IZI Medical Products reporting unit, which indicated that the carrying amounts of these assets exceeded their fair values. The impairment charges were non-cash in nature.

Operating income for the third fiscal quarter of 2015 was $5.1 million, compared with an operating loss of $59.6 million for the third fiscal quarter of 2014. The increase in operating income was driven by the $62.2 million goodwill and other intangible assets impairment charge and $1.6 million in reorganization expenses recorded during the third fiscal quarter of 2014 that were not present in the third fiscal quarter of 2015.

Equity in income of joint ventures for the third fiscal quarter of 2015 was $0.4 million compared with $0.3 million for the third fiscal quarter of 2014. The increase was primarily due to the timing of military product sales by our joint venture.

The effective tax rates for the three months ended June 30, 2015 and 2014 were 10.4% and 40.2%, respectively. The decrease in the effective tax rate was primarily due to the mix of earnings between jurisdictions with differing tax rates and therealization of an unrecognized tax benefit.

Net income attributed to Landauer for the third fiscal quarter of 2015 was $4.1 million, compared with a net loss of $36.3 million in the third fiscal quarter of 2014. The increase in net income was driven by the impairment charges and reorganization costs, partially offset by a corresponding large tax benefit recorded in the third fiscal quarter of 2014 that were not present in the third fiscal quarter of 2015.

Radiation Measurement revenues for the third fiscal quarter of 2015 were $24.1 million, a decrease of $1.2 million, or 4.7%, compared with $25.3 million for the third fiscal quarter of 2014. The decrease in revenues was primarily due to the unfavorable impact of changes in foreign currency exchange rates of $1.5 million, partially offset by an increase in domestic revenues of $0.3 million.

Operating income for the third fiscal quarter of 2015 was $7.6 million, essentially flat compared with operating income of $7.5 million for the third fiscal quarter of 2014.

Medical Physics revenues for the third fiscal quarter of 2015 were $8.9 million, an increase of $0.7 million, or 8.5%, compared with $8.2 million for the third fiscal quarter of 2014. Imaging services revenue increased by $0.6 million, or 33%, driven by higher demand for the Company’s solutions for The Joint Commission’s new Diagnostic Imaging requirements that became effective for hospitals and ambulatory care centers on July 1, 2015.

Operating income for the third fiscal quarter of 2015 was $1.1 million, compared to $0.4 million for the third fiscal quarter of 2014. The increase in operating income is primarily due to increased gross profit of $0.4 million resulting from higher imaging services revenues as well as a reduction in administrative staffing expenses.

Medical Products revenues were $2.4 million for the third fiscal quarters of 2015 and 2014. Revenue increases driven by volume growth were offset by the impact of continued pressure on Spherz product pricing.

Medical Products had operating income of $0.4 million for the third fiscal quarter of 2015 versus an operating loss of $62.4 million for the third fiscal quarter of 2014. The Company recorded a pretax charge of $41.4 million to reduce the carrying amount of goodwill and a pretax charge of $20.8 million to reduce the carrying amount of intangible assets during the third quarter of 2014.

Corporate selling, general and administrative expenses for the third fiscal quarter of 2015 were $4.0 million, a decrease of $1.1 million, or 21.6%, compared to $5.1 million for the third fiscal quarter of 2014. The decrease was due to lower reorganization expenses of $1.5 million, partially offset by a $0.5 million increase in professional fees incurred to remediate internal controls deficiencies identified during fiscal 2014.

Comparison of the nine months ended June 30, 2015 and the nine months ended June 30, 2014

Revenues for the first nine months of fiscal 2015 were $111.2 million, a decrease of $1.9 million, or 1.7%, compared to revenues of $113.1 million for the first nine months of fiscal 2014. Revenues in the Radiation Measurement segment decreased $4.3 million, which was primarily due to an unfavorable foreign currency impact of $3.7 million and a decrease in product sales in Europe of $1.0 million. Revenues in the Medical Physics segment increased $2.1 million, primarily driven by increased imaging services of $1.6 million. Revenues in the Medical Products segment increased $0.4 million primarily due to the full-period impact of a modest acquisition in December 2013.

Gross margin was 52.2% for the first nine months of fiscal 2015, compared with 51.7% for the first nine months of fiscal 2014. Gross margin in the Radiation Measurement segment increased by 2.4% for the first nine months of fiscal 2015 as compared to the first nine months of fiscal 2014, due to an improved mix of higher margin service revenues versus lower margin product revenues. Gross margin in the Medical Physics segment decreased by 1.0% for the first nine months of fiscal 2015 as compared to the first nine months of fiscal 2014, due to the timing of personnel added to support additional contracts in the imaging and therapy divisions. Gross margin in the Medical Products segment decreased by 2.3% for the first nine months of fiscal 2015 as compared to the first nine months of fiscal 2014, due to continued Spherz pricing pressure.

Selling, general and administrative expenses for the first nine months of fiscal 2015 were $41.1 million, a decrease of $0.7 million, or 1.7%, compared with $41.8 million for the first nine months of fiscal 2014 due to lower amortization expense and lower research and development expenses, partially offset by higher professional fees. Amortization expense decreased $1.6 million as a result of impairments recorded during the third fiscal quarter of 2014 to reduce the carrying value of intangible assets in the Medical Products segment. Research and development expenses decreased $1.2 million due to early-stage design services incurred in the first nine months of fiscal 2014 for the Verifii next generation dosimetry platform that were not present in the first nine months of fiscal 2015. Audit, legal and other professional fees increased $2.0 million as a result of the fiscal 2014 Form 10-K restatement and the fees incurred to remediate the internal controls deficiencies.

Operating income for the first nine months of fiscal 2015 was $16.9 million, compared with an operating loss of $47.3 million for the first nine months of fiscal 2014. The increase in operating income was due to the $62.2 million goodwill and other intangible assets impairment charge and $1.8 million in acquisition and reorganization expenses recorded in the first nine months of 2014 that were not present in the first nine months of fiscal 2015.

Equity in income of joint ventures for the first nine months of fiscal ~~quarter of~~ 2015 was ~~$0.7~~$1.8 million ~~a decrease of $0.6 million, or 46.2%,~~ compared with ~~$1.3~~$2.1 million for the first nine months of fiscal ~~quarter of~~ 2014. The decrease was primarily due ~~primarily~~ to the ~~timing of military orders.~~foreign currency impact on equity earnings from our joint venture in Japan.

The effective tax rates for the ~~first~~nine months of fiscal ~~quarter of~~ 2015 and 2014 were ~~26.2%~~21.0% and ~~32.0%~~42.6%, respectively. The decrease in the effective tax rate was primarily due ~~primarily~~ to the enactment of the research and development credit for calendar year 2014 in the first fiscal quarter of ~~2015.~~fiscal 2015, the mix of earnings between jurisdictions with differing tax rates and the realization of an unrecognized tax benefit.

Net income attributed to Landauer for the first nine months of fiscal ~~quarter of~~ 2015 was ~~$4.4~~$12.0 million, ~~an increase of $0.6 million, or 15.8%,~~ compared with a net ~~income~~loss of ~~$3.8~~$28.0 million in the first nine months of fiscal ~~quarter of~~ 2014. The increase in net income was driven by the ~~result of a decrease in operating expenses of $0.7 million~~impairment charges and ~~a decrease in income tax provision of $0.3 million,~~reorganization costs, partially offset by a ~~decrease~~corresponding large tax benefit recorded in ~~equity~~the first nine months of fiscal 2014 that were not present in ~~income~~the first nine months of ~~joint ventures of $0.6 million.~~fiscal 2015.

Radiation Measurement revenues for the first nine months of fiscal ~~quarter of~~ 2015 were ~~$26.5~~$77.9 million, a decrease of ~~$1.7~~$4.3 million, or ~~6.0%~~5.2%, compared with ~~$28.2~~$82.2 million for the first nine months of fiscal ~~quarter of~~ 2014. The decrease in revenues was primarily due ~~primarily~~ to the unfavorable impact of changes in foreign currency exchange rates of ~~$0.8~~$3.7 million and ~~lower~~a decrease in product sales in Europe of $1.0 million, partially offset by an increase in military product sales ~~to our joint venture~~ of ~~$0.7~~$0.3 million. ~~The joint venture began sourcing these components directly from the supplier during the second half of fiscal 2014.~~

Operating income for the first nine months of fiscal ~~quarter of~~ 2015 was ~~$9.4~~$26.4 million, an increase of ~~$0.6~~$0.3 million, or ~~6.8%~~1.1%, compared with operating income of ~~$8.8~~$26.1 million for the first nine months of fiscal ~~quarter of~~ 2014. The increase in operating income was due to ~~a $1.0 million decrease in~~lower research and development expenses ~~to support the Verifii next generation dosimetry platform,~~of $1.3 million, partially offset by ~~a $0.3 million increase in selling, general~~the net impact of unfavorable foreign currency exchange rates on revenues and ~~administrative~~operating expenses ~~due to higher bad debt expense and additional headcount to support sales and customer service activities.~~of $0.8 million.

Medical Physics revenues for the first nine months of fiscal ~~quarter of~~ 2015 were ~~$8.4~~$26.0 million, an increase of ~~$0.7~~$2.1 million, or ~~9.1%~~8.8%, compared with ~~$7.7~~$23.9 million for the first nine months of fiscal ~~quarter of~~ 2014. Imaging services revenue increased by ~~$0.4~~$1.6 million, driven by ~~new customer contracts for outsourced enterprise radiation safety solutions. Radiation therapy service revenue increased by $0.2 million, due to~~ higher demand for ~~services by our existing customers.~~the Company’s solutions for The Joint Commission’s new Diagnostic Imaging requirements that became effective for hospitals and ambulatory care centers on July 1, 2015.

Operating income for the first nine months of fiscal ~~quarter of~~ 2015 was ~~$0.6~~$2.1 million, compared to ~~$0.4~~$1.5 million for the first nine months of fiscal ~~quarter of~~ 2014. The increase in operating income is primarily due ~~primarily~~ to ~~headcount reductions in administrative functions during fiscal 2014.~~increased imaging services revenue.

Medical Products revenues ~~for the first fiscal quarter of 2015~~ were ~~$2.6 million, an increase of $0.4 million, or 18.2%, compared to $2.2~~$7.3 million for the first nine months of fiscal ~~quarter~~2015, compared to $6.9 million for the first nine months of fiscal 2014. ~~The increase in revenues is~~Revenue increased $0.4 million due to ~~volume growth~~the full-period impact of ~~$0.3 million and additional revenues of $0.3 million resulting from an~~a modest acquisition ~~completed~~ in December ~~2013, offset by the impact of continued pressure on Spherz product pricing.~~2013.

Medical Products had operating income of ~~$0.3~~$0.9 million for the first nine months of fiscal ~~quarter of~~ 2015 versus an operating loss of ~~$0.3~~$62.9 million for the first nine months of fiscal ~~quarter of~~ 2014. The ~~change~~increase in operating income was ~~primarily~~ due to ~~a $0.7~~the $62.2 million ~~decrease in amortization expense as a result of adjustments~~goodwill and other intangible assets impairment charge recorded during the ~~third~~first nine months of fiscal ~~quarter~~2014 that was not present in the first nine months of ~~2014 to reduce the carrying value of intangible assets.~~fiscal 2015.

Corporate selling, general and administrative expenses for the first nine months of fiscal ~~quarter of~~ 2015 were ~~$4.2~~$12.6 million, an increase of ~~$0.7~~$0.6 million, or ~~20%~~5.0%, compared to ~~$3.5~~$12.0 million for the first nine months of fiscal ~~quarter of~~ 2014. The increase was primarily due ~~primarily~~ to higher legal, audit and other professional fees of ~~$0.7 million.~~$2.0 million, partially offset by the acquisition and reorganization expenses recorded during the first nine months of fiscal 2014 that were not present in the first nine months of fiscal 2015.

The Company’s principal source of liquidity is operating cash flows supplemented by borrowings ~~for major acquisitions and other significant transactions.~~under its credit facility. The Company’s cash-generating capability is one of its fundamental strengths and provides it with substantial financial flexibility in meeting operating and investing needs.

Cash provided by operating activities for the first ~~three~~nine months of fiscal 2015 was ~~$9.5~~$21.7 million, a decrease of ~~$0.5~~$4.8 million over the same fiscal period in 2014. The decrease was primarily due to an$2.3 million of severance payments and a $1.2 million increase in ~~cash paid for~~ income ~~taxes of $0.3 million.~~tax payments.

Cash used by investing activities for the first ~~three~~nine months of fiscal 2015 was ~~$1.7~~$6.7 million, ~~a decrease~~an increase of ~~$1.2~~$1.0 million over the same fiscal period of 2014. The difference was primarily due to a $3.2 million increase in the acquisition of property, plant and equipment in the current year, primarily due to IT spending for the Verifii next-generation dosimetry platform, partially offset by the acquisition of a small German distributor for $1.8 million in the first fiscal quarter of 2014.

Cash used by financing activities for the first ~~three~~nine months of fiscal 2015 was ~~$5.7~~$12.9 million, ~~an increase of $1.4~~as compared to $20.8 million over the same fiscal period of 2014. The ~~increase~~decrease was primarily due to ~~a reduction~~lower repayments of debt primarily due to the $4.8 million decrease in ~~net long-term borrowings.~~the operating cash flows. As of ~~December 31, 2014,~~June 30, 2015, the Company had ~~$41.4~~$40.6 million of unused availability under its current $175.0 million credit facility, which the Company believes provides adequate liquidity to meet its current and anticipated obligations. During the first ~~three~~nine months of ~~both~~ fiscal 2015 and 2014, the Company paid cash dividends of ~~$5.3 million.~~$13.2 million and $15.8 million, respectively. The Company reduced its dividend payment from $0.55 per share in the previous quarters to $0.275 per share during the third fiscal quarter of 2015.

The Company expects to meet short-term liquidity requirements (including capital expenditures) through net cash from operating activities and cash on hand. As of ~~December 31, 2014,~~June 30, 2015, long-term liquidity requirements consist primarily of obligations under the long-term debt obligations. The Company does not have any required debt repayments until August 2, 2018, when the debt facility expires. The Company was in compliance with all covenants as of ~~December 31, 2014.~~June 30, 2015.

See Note 2 to the Consolidated Financial Statements in Item 1 of Part I of this Form 10-Q.

There have been no material changes, outside of the ordinary course of business, in the Company’s outstanding contractual obligations since the end of fiscal year 2014 through ~~December 31, 2014.~~June 30, 2015.

Certain matters contained in this report constitute forward-looking statements that are based on certain assumptions and involve certain risks and uncertainties. These include the following, without limitation: assumptions, risks and uncertainties associated with the Company’s future performance, the Company’s development and introduction of new technologies in general; the ability to protect and utilize the Company’s intellectual property; events or circumstances which result in an impairment of assets, including but not limited to, goodwill and identifiable intangible assets; continued customer acceptance of the InLight technology; the adaptability of optically stimulated luminescence (“OSL”) technology to new platforms and formats; military and other government funding for the purchase of certain of the Company’s equipment and services; the impact on sales and pricing of certain customer group purchasing arrangements; changes in spending or reimbursement for medical products or services; the costs associated with the Company’s research and business development efforts; the usefulness of older technologies and related licenses and intellectual property; the effectiveness of and costs associated with the Company’s IT platform enhancements; the anticipated results of operations of the Company and its subsidiaries or joint ventures; valuation of the Company’s long-lived assets or business units relative to future cash flows; changes in pricing of services and products; changes in postal and delivery practices; the Company’s business plans; anticipated revenue and cost growth; the ability to integrate the operations of acquired businesses and to realize the expected benefits of acquisitions; the risks associated with conducting business internationally; costs incurred for potential acquisitions or similar transactions; other anticipated financial events; the effects of changing economic and competitive conditions, including instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; foreign exchange rates; government regulations; accreditation requirements; changes in the trading market that affect the costs of obligations under the Company’s benefit plans; and pending accounting pronouncements. These assumptions may not materialize to the extent assumed, and risks and uncertainties may cause actual results to be different from what is anticipated today. These risks and uncertainties also may result in changes to the Company’s business plans and prospects, and could create the need from time to time to write down the value of assets or otherwise cause the Company to incur unanticipated expenses. Additional information may be obtained by reviewing the information set forth in Item 1A “Risk Factors” and Item 7A “Quantitative and Qualitative Disclosures about Market Risk” of the ~~Company's~~Company’s Annual Report on Form 10-K for the year ended September 30, 2014 and information contained in other reports filed by the Company, from time to time, with the SEC. The Company does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events or changes in the Company’s expectations, except as required by law.

The Company is exposed to market risk, including changes in foreign currency exchange rates and is subject to interest rate risk related to borrowings under its existing credit facility. These risks are set forth in Item 7A “Quantitative and Qualitative Disclosures about Market Risk” of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014. The Company believes there have been no material changes in the information provided from the end of the preceding fiscal year through ~~December 31, 2014.~~June 30, 2015.

As of ~~December 31, 2014,~~June 30, 2015, an evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) (the Company’s principal executive officer and principal financial officer, respectively), of the effectiveness of the design and operation of the Company’s “disclosure controls and procedures” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended.

Based upon that evaluation, our CEO and CFO concluded that the Company’s disclosure controls and procedures were not effective as a result of the material weaknesses that existed in our internal control over financial reporting described below.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

We previously identified and reported the following material weaknesses in the Company’s internal ~~controls in~~control over financial ~~reporting:~~reporting, which still exist as of June 30, 2015:

Control Environment - We did not maintain an effective control environment as we did not maintain a sufficient complement of personnel with an appropriate level of knowledge of accounting, experience and training commensurate with our financial reporting requirements. Additionally, we did not consistently establish appropriate authorities and responsibilities in pursuit of our financial reporting objectives. These material weaknesses contributed to the following control deficiencies, each of which is considered to be a material weakness:

We have improved our process over the preparation and review of our Consolidated Statement of Cash Flows to ensure completeness and accuracy over the transactions reported. We created new templates and supporting schedules that facilitate the preparation of our Consolidated Statement of Cash Flows. We also enhanced our cash flow checklist to identify the most common elements of operating, investing and financing activities, including nonrecurring transactions and adjustments.

We have improved our IT general controls and segregation of duties. We have adopted a new global IT general controls framework, and we have begun to implement this new framework in our domestic and European entities. We have removed access to financial application programs and data beyond that needed for certain personnel to perform their individual job responsibilities.

Risk Assessment - We did not design and implement effective risk assessment with regard to our processes and procedures commensurate with our financial reporting requirements. Specifically, we did not design and implement controls in response to risks of misstatement of the financial statements. This material weakness contributed to the following control deficiencies, each of which is considered to be a material weakness:

We have improved our controls to ensure the accurate and timely reporting of revenue and the related receivables, including the following:

We have commenced a formal risk assessment to assess risks and identify, design, implement, and re-evaluate our control activities. We have completed the quantitative phase of the risk assessment and expect to complete the qualitative phase of the risk assessment by September 30, 2015.

The risk assessment and revenue material weaknesses also resulted in revisions to second and third quarter fiscal 2014, annual fiscal 2014 and first quarter fiscal 2015 financial statement disclosures related to sales to its equity investees. Management has determined that these revisions, first disclosed in the second quarter of fiscal 2015, are additional effects of the material weaknesses related to risk assessment and revenue described above.

We have implemented controls to evaluate the classification of cash and investments held by foreign affiliates. We also designed processes to monitor the establishment of new cash and investment accounts.

Notwithstanding the identified material weaknesses, management believes the consolidated financial statements included in this Quarterly Report on Form 10-Q fairly state in all material respects our financial condition, results of operations and cash flows at and for the periods presented in accordance with U.S. GAAP.

In response to the identified material weaknesses, our management, with oversight from our audit committee, has dedicated significant resources and efforts to improve our control environment and risk assessment and to remedy the identified material weaknesses. We ~~are currently evaluating the impact of the material weaknesses and are in the process of taking the following actions:~~

We believe that the ~~foregoing~~ actions identified above will support the improvement of our internal control over financial ~~reporting, and through our efforts to identify, design and implement the necessary control activities.~~reporting. We will continue to devote significant time and attention to these remediation efforts. As we continue to evaluate and work to improve our internal control over financial reporting, management may determine to take additional measures to address the material weaknesses or determine to modify the ~~remediation plan~~actions described above. Until the ~~remediation steps~~actions set forth above, including the efforts to implement and test the necessary control activities we identify, are fully completed, the material weaknesses described above will continue to exist.

~~We have improved our process~~There has been no change in the Company’s internal control over financial reporting that occurred during the ~~preparation and review~~third quarter of ~~our Consolidated Statement of Cash Flows~~2015 that has materially affected, or is reasonably likely to ~~ensure completeness and accuracy~~materially affect, the Company’s internal control over the transactions reported. We created new templates and supporting schedules that facilitate the preparation of the Consolidated Statement of Cash Flows. We also enhanced our cash flow checklist to identify the most common elements of operating, investing and financing activities, including nonrecurring transactions and adjustments.

The Company is a party, from time to time, to various legal proceedings, lawsuits and other claims arising in the ordinary course of its business. The Company does not believe that any such litigation pending as of ~~December 31, 2014,~~June 30, 2015, if adversely determined, would have a material effect on its business, financial position, results of operations, or cash flows.

Information regarding risk factors is set forth in Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014. The Company believes there have been no material changes in the information provided from the end of the preceding fiscal year through ~~December 31, 2014.~~June 30, 2015.

The Company’s purchases of its equity securities from the end of the preceding fiscal year through ~~December 31, 2014~~June 30, 2015 includes the deemed surrender of existing shares of Landauer common stock to the Company by stock-based compensation plan participants to satisfy the exercise price or tax liability of employee stock awards at the time of exercise or vesting. These surrendered shares are not part of any publicly announced share repurchase program.



Period	Total Number of Shares Purchased		Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs
October 1 - October 31, 2014	490	$	32.74	-	-	490	$	32.74	-	-
November 1 - November 30, 2014	-		-	-	-	-		-	-	-
December 1 - December 31, 2014	-		-	-	-	-		-	-	-
Quarter ended December 31, 2014	490	$	32.74	-	-	490	$	32.74	-	-
January 1 - January 31, 2015						-	$	-	-	-
February 1 - February 28, 2015						-		-	-	-
March 1 - March 31, 2015						-		-	-	-
Quarter ended March 31, 2015						-	$	-	-	-
April 1 - April 30, 2015						750	$	35.75	-	-
May 1 - May 31, 2015						-		-	-	-
June 1 - June 30, 2015						341		35.60	-	-
Quarter ended June 30, 2015						1,091	$	35.70	-	-

		Cer
~~3.1~~10.1		~~Certificate of Incorporation of~~Promotion Letter with Daniel J. Fujii dated April 15, 2015 is incorporated by reference to Exhibit 10.1 to the ~~Registrant, as amended through March 6, 2015~~Current Report on Form 8-K dated April 21, 2015.

~~10.1~~10.2		~~Offer~~Promotion Letter with Kara B. Venegas dated ~~December~~April 15, ~~2014, between the Company and Michael T. Leatherman (incorporated~~2015 is incorporated by reference to Exhibit ~~10(g)~~10.2 to the ~~Company’s Annual~~Current Report on Form ~~10-K for the fiscal year ended September 30, 2014)~~8-K dated April 21, 2015.

31.1*		Certification of Michael T. Leatherman, President and Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification of ~~Mark A. Zorko, Interim~~Daniel J. Fujii, Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*		Certification of Michael T. Leatherman, President and Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification of ~~Mark A. Zorko, Interim~~Daniel J. Fujii, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS**		XBRL INSTANCE FILE

101.SCH**		XBRL SCHEMA FILE

101.CAL**		XBRL CALCULATION FILE

101.DEF**		XBRL DEFINITION FILE

101.LAB**		XBRL LABEL FILE

101.PRE**		XBRL PRESENTATION FILE

		Exhibits 10.1 and 10.2 listed above are management contracts and compensatory plans or arrangements.

	*	Filed herewith

	**	Furnished with the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended ~~December 31, 2014~~June 30, 2015.

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

8
11

		LANDAUER, INC.

~~Date: March 9, 2015~~		~~/s/ Mark A. Zorko~~(Registrant)
		~~Mark A. Zorko~~
Date: August 10, 2015		/s/ Daniel J. Fujii
		~~Interim~~ Daniel J. Fujii
		Chief Financial Officer ~~(Principal Financial Officer)~~



Pension and Postretirement Plans (1)	Three Months Ended December 31,				Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)	2014		2013 (As Restated)		2015		2014 (As Restated)		2015		2014 (As Restated)
Amortization of net loss	$	72	$	45	$	73	$	46	$	217	$	137
Total before tax		72		45		73		46		217		137
Provision for income taxes		-		-		27		-		80		-
Total net of tax	$	72	$	45	$	46	$	46	$	137	$	137



	Three Months Ended December 31,				Nine Months Ended June 30,
(Dollars in Thousands)	2014		2013 (As Restated)		2015		2014 (As Restated)
Net cash provided by (used by):
Operating activities	$	9,484	$	9,939	$	21,711	$	26,551
Investing activities		(1,699)		(2,948)		(6,691)		(5,711)
Financing activities		(5,678)		(4,246)		(12,899)		(20,822)
Effect of foreign currency translation		(471)		49		(441)		(52)
Net increase in cash and cash equivalents	$	1,636	$	2,794
Net increase (decrease) in cash and cash equivalents					$	1,680	$	(34)