Business Segments

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company operates in four primary business segments: North America/Home Medical Equipment (North America/HME), Institutional Products Group (IPG), Europe and Asia/Pacific.

The North America/HME segment sells each of three primary product lines, which includes: lifestyle, mobility and seating and respiratory therapy products. IPG sells or rents long-term care medical equipment, health care furnishings and accessory products. Europe and Asia/Pacific sell product lines similar to North America/HME and IPG. Each business segment sells to the home health care, retail and extended care markets.

The Company evaluates performance and allocates resources based on profit or loss from operations before income taxes for each reportable segment. The accounting policies of each segment are the same as those described in the summary of significant accounting policies for the Company’s consolidated financial statements. Intersegment sales and transfers are based on the costs to manufacture plus a reasonable profit element. Therefore, intercompany profit or loss on intersegment sales and transfers is not considered in evaluating segment performance except for Asia/Pacific due to its significant intercompany sales volume relative to the segment.

The information by segment is as follows (in thousands):

	2013			2012			2011
Revenues from external customers
North America/HME	$	607,094		$	692,657		$	746,782
Institutional Products Group	112,290			126,508			104,911
Europe	583,143			546,543			544,537
Asia/Pacific	49,832			66,985			86,199
Consolidated	$	1,352,359		$	1,432,693		$	1,482,429
Intersegment revenues
North America/HME	$	77,901		$	104,291		$	88,112
Institutional Products Group	5,304			6,415			6,567
Europe	8,272			11,043			9,308
Asia/Pacific	24,941			32,587			32,876
Consolidated	$	116,418		$	154,336		$	136,863
Depreciation and amortization
North America/HME	$	12,896		$	12,190		$	12,814
Institutional Products Group	8,366			8,017			4,600
Europe	12,123			12,738			15,799
Asia/Pacific	3,073			4,505			4,645
All Other (1)	275			273			212
Discontinued Operations	$	56		870			813
Consolidated	$	36,789		$	38,593		$	38,883
Net interest expense (income)
North America/HME	$	(1,439	)	$	1,254		$	5,040
Institutional Products Group	3,656			4,288			2,662
Europe	(53		)	(1,292		)	(1,754		)
Asia/Pacific	960			3,304			2,945
Consolidated	$	3,124		$	7,554		$	8,893
Earnings (loss) before income taxes from continuing operations
North America/HME	$	(45,387	)	$	4,315		$	36,297
Institutional Products Group	1,418			6,003			8,216
Europe	40,468			31,488			33,579
Asia/Pacific	(13,258		)	(11,795		)	(35,141		)
All Other (1)	(21,581		)	(24,311		)	(55,431		)
Consolidated	$	(38,340	)	$	5,700		$	(12,480	)
Assets
North America/HME (2)	$	250,239		$	280,383		$	295,457
Institutional Products Group (2)	84,229			118,190			117,626
Europe	693,790			683,751			689,596
Asia/Pacific (2)	31,034			39,605			50,604
All Other (1)	37,142			37,208			35,713
Assets held for sale	—			103,157			92,058
Consolidated	$	1,096,434		$	1,262,294		$	1,281,054

	2013		2012		2011
Long-lived assets
North America/HME (2)	$	60,309	$	62,853	$	68,190
Institutional Products Group (2)	68,189		93,184		95,010
Europe	506,329		493,446		518,382
Asia/Pacific (2)	5,238		8,034		10,896
All Other (1)	36,830		36,828		35,361
Assets held for sale	—		—		24,445
Consolidated	$	676,895	$	694,345	$	752,284
Expenditures for assets
North America/HME	$	4,906	$	6,959	$	9,189
Institutional Products Group	3,435		5,376		3,555
Europe	4,809		4,604		4,876
Asia/Pacific	830		2,439		3,480
All Other (1)	50		—		214
Discontinued Operations	128		713		846
Consolidated	$	14,158	$	20,091	$	22,160

  ________________________

(1) Consists of un-allocated corporate SG&A costs and intercompany profits, which do not meet the quantitative criteria for determining reportable segments. In addition, the “All Other” earnings (loss) before income taxes includes loss on debt extinguishment including debt finance charges, interest and fees.

(2) IPG and North America/HME assets and long-lived assets include decreases of $1,356,000 and $167,000, respectively, due to intangible asset impairment write-offs in 2013. The 2012 IPG and North America/HME assets and long-lived assets decrease include a decrease of $677,000 and $96,000 related to intangible asset impairment write-offs in 2012. The 2011 Asia/Pacific assets and long-lived assets decrease include decreases of $39,729,000 and $201,000 due to goodwill and intangible asset write-offs, respectively. North America/HME assets and long-lived assets include decreases of $7,990,000 and $508,000 due to the goodwill and intangible asset impairment write-offs, respectively, in 2011. IPG long-lived assets decreased by $625,000 related to an intangible impairment write-off in 2011. Europe long-lived assets decreased by $427,000 related to an indefinite-lived trademark impairment in 2011.

Net sales by product, are as follows (in thousands):

	2013		2012		2011
North America/HME
Lifestyle Products	$	268,041	$	288,443	$	295,342
Mobility and Seating	152,650		257,886		284,633
Respiratory Therapy	178,157		134,892		153,468
Other(1)	8,246		11,436		13,339
	$	607,094	$	692,657	$	746,782
Institutional Products Group
Continuing Care	$	112,290	$	126,508	$	104,911
Europe
Lifestyle Products	$	303,225	$	285,707	$	293,425
Mobility and Seating	216,152		204,613		209,732
Respiratory Therapy	40,885		42,700		27,866
Other(1)	22,881		13,523		13,514
	$	583,143	$	546,543	$	544,537
Asia/Pacific
Mobility and Seating	$	26,737	$	31,410	$	36,483
Lifestyle Products	12,023		15,448		20,151
Continuing Care	2,785		2,795		2,825
Respiratory Therapy	1,290		700		682
Other(1)	6,997		16,632		26,058
	$	49,832	$	66,985	$	86,199
Total Consolidated	$	1,352,359	$	1,432,693	$	1,482,429

  ________________________

(1) Includes various services, including repair services, equipment rentals and external contracting.

No single customer accounted for more than 3.5% of the Company’s sales.