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Business Segments
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Business Segments
Business Segments
The company operates in four primary business segments: North America/Home Medical Equipment (NA/HME), Institutional Products Group (IPG), Europe and Asia/Pacific. The NA/HME segment sells each of three primary product lines, which includes: lifestyle, mobility and seating and respiratory therapy products. IPG sells long-term care medical equipment, health care furnishings and accessory products. Europe and Asia/Pacific sell product lines similar to NA/HME and IPG. 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.

Segment performance is measured and resources are allocated based on a number of factors, with the primary profit or loss measure being segment operating profit (loss). Segment operating profit (loss) represents net sales less cost of products sold less selling general and administrative expenses. Segment operating profit (loss) excludes unallocated corporate general and administrative expenses not allocated to the segments and intersegment sales and profit eliminations, which are included in All Other. In addition, segment operating profit (loss) further excludes charges related to restructuring activities, asset write-downs and gain on sale of business (as applicable). The previous performance measure was earnings before income taxes. With the issuance of convertible debt during 2016, this performance measure has not been utilized by the Chief Operating Decision Maker (CODM) as the interest expense incurred by the company is related to the company’s financing decision to issue convertible debt as compared to the operating decisions resulting from allocation of resources and segment operating income performance. In addition, in 2016, the company included an operating income line on the consolidated statement of comprehensive income (loss) to emphasize the CODM’s emphasis on operating income (loss).















As noted, this performance measure, segment operating income (loss), is used by the CODM for purposes of making decisions about allocating resources to a segment and assessing its performance. In addition, this metric is reviewed by the company’s Board of Directors regarding segment performance and is a key metric in the performance management assessment of the company's employees.

The information by segment is as follows (in thousands): 
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Revenues from external customers
 
 
 
 
 
 
 
Europe (1)
$
143,281

 
$
141,738

 
$
391,274

 
$
399,504

NA/HME (1)
79,516

 
99,323

 
241,467

 
317,695

IPG
13,975

 
15,343

 
45,668

 
49,702

Asia/Pacific
14,134

 
11,741

 
37,737

 
33,833

Consolidated
$
250,906

 
$
268,145

 
$
716,146

 
$
800,734

Intersegment revenues
 
 
 
 
 
 
 
Europe
$
4,013

 
$
3,240

 
$
11,426

 
$
10,292

NA/HME
19,334

 
24,339

 
62,479

 
77,248

IPG
314

 
998

 
2,057

 
2,201

Asia/Pacific
3,405

 
4,663

 
11,161

 
14,802

Consolidated
$
27,066

 
$
33,240

 
$
87,123

 
$
104,543

Restructuring charges (reversals) before income taxes
 
 
 
 
 
 
 
Europe
$
686

 
$
—

 
$
1,890

 
$
—

NA/HME
(170
)
 
490

 
6,000

 
1,213

Asia/Pacific
187

 
18

 
1,083

 
86

Consolidated
$
703

 
$
508

 
$
8,973

 
$
1,299

Operating income (loss)
 
 
 
 
 
 
 
Europe (1)
$
11,987

 
$
11,638

 
$
24,164

 
$
24,550

NA/HME (1)
(12,446
)
 
(11,007
)
 
(34,267
)
 
(24,065
)
IPG
1,202

 
1,497

 
4,572

 
4,453

Asia/Pacific
387

 
(559
)
 
(161
)
 
(1,599
)
All Other (2)
(6,311
)
 
(5,832
)
 
(17,556
)
 
(17,703
)
Charge expense related to restructuring activities
(703
)
 
(508
)
 
(8,973
)
 
(1,299
)
Gain on sale of business
—

 
7,386

 
—

 
7,386

Consolidated operating income (loss)
(5,884
)
 
2,615

 
(32,221
)
 
(8,277
)
Net gain (loss) on convertible derivatives
(2,550
)
 
1,192

 
(2,700
)
 
2,282

Net Interest expense
(6,707
)
 
(4,402
)
 
(15,733
)
 
(11,021
)
Loss before income taxes
$
(15,141
)
 
$
(595
)
 
$
(50,654
)
 
$
(17,016
)
 
 
 
 
 
 
 
 
________

(1) 
During the first quarter of 2017, a subsidiary, formerly included in the Europe segment, transferred to the NA/HME segment as it became managed by the NA/HME segment manager effective January 1, 2017. The results for 2016 have been changed accordingly and for the three and nine months ended September 30, 2016, the change increased revenues from external customers by $1,300,000 and $3,738,000, respectively, and operating loss by $15,000 and $165,000, respectively, for NA/HME with an offsetting impact for Europe.
(2) 
Consists of un-allocated corporate SG&A costs and intercompany profits, which do not meet the quantitative criteria for determining reportable segments, and gain or loss on convertible debt derivatives.