Value Added Tax Receivable

9 Months Ended

Jun. 30, 2011

VALUE ADDED TAX RECEIVABLE [Abstract]

Value Added Tax Receivable [Text Block]

VALUE ADDED TAX RECEIVABLE

The Company's value added tax (VAT) receivable is a receivable from the Mexican taxing authority primarily related to a value added tax levied on product shipments originating outside of Mexico.  At June 30, 2011 and September 30, 2010, the Company’s VAT receivable was $3.1 million and $4.6 million, respectively.  The majority of the VAT receivable relates to shipments that occurred in 2006 and 2007. 

The Company has received rulings from the Mexican taxing authority for 2006 and 2007 indicating that the Mexican taxing authority has challenged the registration of certain of the Company's transactions that have generated a VAT receivable of approximately $430,000, all of which has been fully reserved.  Although the Company has fully reserved this amount, it has formally contested these rulings, and continues to believe it has the necessary evidence for a reasonable defense. However, the final resolution of the contested balances remains uncertain and may adversely affect the carrying value of the receivable and may have an adverse affect on the Company's foreign income tax expense. See Note 14 of the Notes to Consolidated Financial Statements "Commitments and Contingencies."