2.2.0.25falsefalse2101100 - Disclosure - Nature of Operations and Summary of Significant Accounting Policiestruefalsefalse1falsefalseUSDfalsefalse4/1/2010 - 12/31/2010
USD ($)
USD ($) / shares
$D2011Q3YTDhttp://www.sec.gov/CIK0000815065duration2010-04-01T00:00:002010-12-31T00:00:00usdStandardhttp://www.xbrl.org/2003/iso4217USDiso42170usdPerShareDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0ste_NotesToFinancialStatementsAbstractstefalsenadurationNotes to Financial Statements [Abstract]falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNotes to Financial Statements [Abstract]falsefalse3false0us-gaap_SignificantAccountingPoliciesTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Nature of Operations and Summary of Significant Accounting Policies</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Nature of Operations</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">STERIS Corporation, an Ohio corporation, develops, manufactures and markets infection prevention, contamination control, microbial reduction, and surgical and critical care support products and services for healthcare, pharmaceutical, scientific, research, industrial, and governmental Customers throughout the world. As used in this Quarterly Report, STERIS Corporation and its subsidiaries together are called “STERIS,” the “Company,” “we,” “us,” or “our,” unless otherwise noted.</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We operate in three reportable business segments: Healthcare, Life Sciences, and STERIS Isomedix Services (“Isomedix”). We describe our business segments in note 11 to our consolidated financial statements titled, “Business Segment Information.” Our fiscal year ends on March 31. References in this Quarterly Report to a particular “year” or “year-end” mean our fiscal year. The significant accounting policies applied in preparing the accompanying consolidated financial statements of the Company are summarized below:</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Interim Financial Statements</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We prepared the accompanying unaudited consolidated financial statements of the Company according to accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. This means that they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Our unaudited interim consolidated financial statements contain all material adjustments (including normal recurring accruals and adjustments) management believes are necessary to fairly state our financial condition, results of operations, and cash flows for the periods presented.</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">These interim consolidated financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">March 31, 2010</font><font style="font-family:inherit;font-size:10pt;">, filed with the Securities and Exchange Commission (“SEC”) on May 28, 2010. The Consolidated Balance Sheet at </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">March 31, 2010</font><font style="font-family:inherit;font-size:10pt;"> was derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Principles of Consolidation</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We use the consolidation method to report our investment in our subsidiaries. Consolidation means that we combine the accounts of our wholly-owned subsidiaries with our accounts. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. We eliminate inter-company accounts and transactions when we consolidate these accounts.</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">three and nine</font><font style="font-family:inherit;font-size:10pt;"> month periods ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">December 31, 2010</font><font style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2011.</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Fair Value of Financial Instruments</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Except for long-term debt, our financial instruments are highly liquid or have short-term maturities. Therefore, the recorded value is approximately equal to the fair value. We estimate the fair value of our long-term debt using discounted cash flow analyses, based on our current incremental borrowing rates for similar types of borrowing arrangements. We determined that the estimated fair value of our long-term debt is $241,888 at </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">December 31, 2010</font><font style="font-family:inherit;font-size:10pt;">. The financial instruments that we hold could potentially expose us to a concentration of credit risk. We invest our excess cash in highly rated money market funds and other high-quality short-term investments placed with major banks and financial institutions. We have established guidelines related to diversification and maturities to maintain safety and liquidity.</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We provide additional information regarding the fair value of our financial instruments in note 17 titled, “Fair Value Measurements.”</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Recently Adopted Accounting Pronouncements</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In December 2009, the FASB issued an accounting standard update titled “Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities.” The guidance requires entities to determine whether variable interests give it a controlling financial interest in a variable interest entity. It also requires an ongoing assessment of the beneficiary to determine if it is the primary beneficiary of the variable interest entity and eliminates the quantitative approach previously required for determining whether a reporting entity is the primary beneficiary. The guidance also requires enhanced disclosures about an entity’s involvement with a variable interest entity. This guidance was effective for us in the first quarter of fiscal 2011. The adoption did not have a material impact on our consolidated results of operations or financial condition.</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2010, the FASB issued an accounting standard update titled “Fair Value Measurements and Disclosures (Topic 820), Improving Disclosures About Fair Value Measurements.” This new guidance requires additional disclosures to be provided, which follow as: 1) transfers in and out of Levels 1 and 2 and the reasons for the transfers, 2) additional breakout of asset and liability categories and 3) purchases, sales, issuances and settlements to be reported separately in the Level 3 rollforward. This guidance was effective for us for the first quarter of fiscal 2011 reporting with the exception of item 3 which is effective beginning with first quarter of fiscal 2012 reporting. The adoption did not have a material impact on our consolidated results of operations or financial condition.</font></div><div style="line-height:120%;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Significant Accounting Policies</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">A detailed description of our significant and critical accounting policies, estimates, and assumptions is included in our Annual Report on Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">March 31, 2010</font><font style="font-family:inherit;font-size:10pt;">, filed with the SEC on May 28, 2010. Our significant and critical accounting policies, estimates, and assumptions have not changed materially from </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">March 31, 2010</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Accrued SYSTEM 1 Rebate Program (the “Rebate Program”) initially recognized during the first quarter of fiscal 2011 is based upon the quantity of SYSTEM 1 processors eligible for rebates and the estimated value of rebates to be provided upon their return. Rebates of $102,313 are recognized as contra-revenue consistent with other returns and allowances offered to Customers. The estimated cost of $7,691 to facilitate the disposal of the returned SYSTEM 1 processors has been recognized as cost of revenues. Both components are recorded as current liabilities. The key assumptions involved in the estimates associated with the Rebate Program include: the number and age of SYSTEM 1 processors eligible for rebates under the Rebate Program, the number of Customers that will elect to participate in the Rebate Program, the proportion of Customers that will choose each rebate option, and the estimated per unit costs of disposal.</font></div><div style="line-height:120%;text-indent:20px;"><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;text-indent:20px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The number and age of SYSTEM 1 processors has been estimated based on our historical sales and service records and we have assumed that 100% of these Customers will elect to participate in the Rebate Program. In order to estimate the portion of Customers that will choose each available rebate option, we first assessed recent trends in sales of the proprietary consumable products utilized in the SYSTEM 1 processor. We noted a decline of approximately 19% in shipments which indicates that a portion of our Customers have already transitioned away from the SYSTEM 1 technology. The remaining 81%, provides the best available indication of the portion of Customers likely to elect the rebate for the SYSTEM 1E processor. Order and quote data for fiscal 2011 year to date provides indications of the proportion of Customers that are expected to choose each of the other rebate options. The per unit costs associated with disposal were estimated based on the service hours involved and quotes from our vendors which are based on current freight and disposal contracts.</font></div></div>Nature of Operations and Summary of Significant Accounting Policies Nature of Operations STERIS Corporation, an Ohio corporation, develops,falsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis element may be used to describe all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 22
-Paragraph 8
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