Revenue Recognition  Adoption of New Standard On October 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers , using the modified retrospective transition method applied to those contracts that were not completed as of that date. Results for reporting periods beginning on or after October 1, 2018 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previously applicable guidance. Upon adoption, we recorded a reduction of $116 to the opening balance of retained earnings as of October 1, 2018. This adjustment is related to writing off the book value of clinical diagnostic testing instruments located at customers for which there is no contractual arrangement for the instrument to be returned to the Company. Instruments placed with customers under an agreement to return the instrument to the Company were reclassified to machinery and equipment. Prior to adoption of the new guidance, all instruments placed with customers were capitalized and amortized over an estimated three-year utilization period, with the net balance reflected as deferred instrument costs. The following table summarizes the impact of the new revenue standard on our opening balance sheet: Balance at September 30, 2018 New Revenue Standard Adjustment Balance at October 1, 2018 PROPERTY, PLAN AND EQUIPMENT Machinery, equipment and furniture $ 50,606 $ 8,696 $ 59,302 Accumulated depreciation and amortization (55,846 ) (7,611 ) (63,457 ) OTHER ASSETS Deferred instrument costs, net 1,239 (1,239 )  NON-CURRENT LIABILITIES Deferred income taxes (3,769 ) 38 (3,731 ) SHAREHOLDERS EQUITY Retained earnings (49,602 ) 116 (49,486 ) The adoption of this new standard had an immaterial impact on our reported total revenues and operating income, as compared to what would have been reported under the prior standard. Our accounting policies under the new standard were applied prospectively and are noted below following the discussion of Revenue Disaggregation. Revenue Disaggregation The following tables present our revenues disaggregated by major geographic region, major product platform and disease state (Diagnostics only): Revenue by Reportable Segment &amp; Geographic Region Three Months Ended March 31, Six Months Ended March 31, 2019 2018 Inc (Dec) 2019 2018 Inc (Dec) Diagnostics- Americas $ 27,278 $ 33,351 (18 )% $ 58,425 $ 64,926 (10 )% EMEA 5,535 5,912 (6 )% 10,620 11,327 (6 )% ROW 687 519 32 % 1,120 1,019 10 % Total Diagnostics 33,500 39,782 (16 )% 70,165 77,272 (9 )% Life Science- Americas 5,453 5,121 6 % 9,975 10,373 (4 )% EMEA 7,901 7,478 6 % 15,376 12,659 21 % ROW 3,394 4,070 (17 )% 6,212 8,430 (26 )% Total Life Science 16,748 16,669  % 31,563 31,462  % Consolidated $ 50,248 $ 56,451 (11 )% $ 101,728 $ 108,734 (6 )% Revenue by Product Platform/Type Three Months Ended March 31, Six Months Ended March 31, 2019 2018 Inc (Dec) 2019 2018 Inc (Dec) Diagnostics- Molecular assays $ 7,132 $ 9,976 (29 )% $ 14,434 $ 18,692 (23 )% Immunoassays &amp; blood chemistry assays 26,368 29,806 (12 )% 55,731 58,580 (5 )% Total Diagnostics $ 33,500 $ 39,782 (16 )% $ 70,165 $ 77,272 (9 )% Life Science- Molecular reagents $ 5,390 $ 6,143 (12 )% $ 11,998 $ 11,832 1 % Immunological reagents 11,358 10,526 8 % 19,565 19,630  % Total Life Science $ 16,748 $ 16,669  % $ 31,563 $ 31,462  % Revenue by Disease State (Diagnostics only) Three Months Ended March 31, Six Months Ended March 31, 2019 2018 Inc (Dec) 2019 2018 Inc (Dec) Diagnostics- Gastrointestinal assays $ 16,177 $ 19,149 (16 )% $ 34,792 $ 39,419 (12 )% Respiratory illness assays 7,553 9,543 (21 )% 15,534 17,029 (9 )% Blood chemistry assays 4,330 4,257 2 % 8,760 8,523 3 % Other 5,440 6,833 (20 )% 11,079 12,301 (10 )% Total Diagnostics $ 33,500 $ 39,782 (16 )% $ 70,165 $ 77,272 (9 )% Revenue Policies Product Sales Revenue from contracts with customers is recognized in an amount that reflects the consideration we expect to receive in exchange for products when obligations under such contracts are satisfied. Revenue is generally recognized at a point-in-time when products are shipped and title has passed to the customer. Such contracts can include various combinations of products that are generally accounted for as distinct performance obligations. Revenue is reduced in the period of sale for fees paid to distributors, which are inseparable from the distributors purchase of our product and for which we receive no goods or services in return. Revenue for the Diagnostics segment is reduced at the date of sale for product price adjustments due to certain distributors under local contracts. Management estimates accruals for distributor price adjustments based on local contract terms, sales data provided by distributors, historical statistics, current trends, and other factors. Changes to the accruals are recorded in the period that they become known. Such accruals are netted against accounts receivable. Shipping and handling costs incurred after control of the product is transferred to our customers are treated as fulfillment costs and not a separate performance obligation. Our payment terms differ by jurisdiction and customer but payment is generally required in a term ranging from 30 to 90 days from the date of shipment or satisfaction of the performance obligation. Trade accounts receivable are recorded in the accompanying Consolidated Balance Sheets at invoiced amounts less provisions for distributor price adjustments under local contracts and doubtful accounts. The allowance for doubtful accounts represents our estimate of probable credit losses and is based on historical write-off experience and known conditions that would likely lead to non-payment. Customer invoices are charged off against the allowance when we believe it is probable that the invoices will not be paid. Practical Expedients and Exemptions Revenue is recognized net of any taxes collected from customers (sales tax, value added tax, etc.), which are subsequently remitted to government authorities. Our products are generally not subject to a customer right of return except for product recall events under the rules and regulations of the Food and Drug Administration or equivalent agencies outside the United States. In this circumstance, the costs to replace affected products would be accrued at the time a loss was probable and estimable. We expense as incurred the costs to obtain contracts, as the amortization period would have been one year or less. These costs, recorded within selling and marketing expense, include our internal sales force compensation programs and certain partner sales incentive programs, as we have determined that annual compensation is commensurate with annual selling activities. Reagent Rental Arrangements Our Alethia and LeadCare product platforms require the use of instruments for the tests to be processed. In many cases, a customer is given use of the instrument provided they continue purchasing the associated tests, also referred to as consumables or reagents. If a customer stops purchasing the consumables, the instrument must be returned to Meridian. Such arrangements are common practice in the diagnostics industry and are referred to as Reagent Rental agreements. These agreements may also include instrument related services such as a limited replacement warranty, training and installation. We concluded that the use of the instrument and related services (collectively known as lease elements) are not within the scope of ASU No. 2014-09 but rather ASU 2016-02, Leases . Accordingly, we first allocate the transaction price between the lease elements and the non-lease elements based on estimates of relative standalone selling prices. Lease revenue is derived solely from the sale of consumables and is therefore recognized monthly as earned, which coincides with the transfer of control of the non-lease elements. For the portion of the transaction price allocated to the non-lease elements, which are principally the test kits, the related revenue will be recognized at a point-in-time when control transfers. Revenue allocated to the lease elements of these Reagent Rental arrangements represent less than 1% of total revenue and are included as part of net revenues in our Condensed Consolidated Statements of Income.