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Charges Related To Restructuring Activities
3 Months Ended
Mar. 31, 2020
Restructuring and Related Activities [Abstract]  
Charges Related To Restructuring Activities
Charges Related to Restructuring Activities


The company's restructuring charges were originally necessitated primarily by continued declines in Medicare and Medicaid reimbursement by the U.S. government, as well as similar healthcare reimbursement pressures abroad, which negatively affect the company's customers (e.g. home health care providers) and continued pricing pressures faced by the company due to the outsourcing by competitors to lower cost locations. Restructuring decisions were also the result of reduced profitability in North America and Asia Pacific. In addition, as a result of the company's transformation strategy, additional restructuring actions were implemented in 2017 and have continued into 2020.

For the three months ended March 31, 2020, charges totaled $1,392,000 which were related to North America ($691,000), Europe ($665,000) and All Other ($36,000). In North America and All Other, costs were incurred related to severance. The European charges were for severance costs $592,000 and contract terminations $73,000. Payments for the three months ended March 31, 2020 were $1,870,000 and the cash payments were funded with company's cash on hand. The 2020 charges are expected to be paid out within twelve months.
For the three months ended March 31, 2019, charges totaled $692,000 which were related to North America ($553,000), Europe ($320,000) and All Other a reversal of ($181,000). In North America, costs were incurred related to severance ($531,000) and contract terminations ($22,000). The European and All Other charges were for severance costs. Payments for the three months ended March 31, 2019 were $1,225,000 and the cash payments were funded with company's cash on hand. Most of the 2019 charges have been paid out.
There have been no material changes in accrued balances related to the charges, either as a result of revisions to the plans or changes in estimates. In addition, the savings anticipated as a result of the company's restructuring plans have been or are expected to be achieved, primarily resulting in reduced salary and benefit costs principally impacting Selling, General and Administrative expenses, and to a lesser extent, Costs of Products Sold. To date, the company's liquidity has not been materially impacted by the restructuring plans. Please refer to Charges Related to Restructuring Activities of company's Annual Report on Form 10-K for the period ending December 31, 2019 for disclosure of restructuring activity prior to 2020.
A progression by reporting segment of the accruals recorded as a result of the restructuring for the three months ended March 31, 2020 is as follows (in thousands):
 
Severance
 
Contract Terminations
 
Total
December 31, 2019 Balances
 
 
 
 
 
North America
$
211

 
$

 
$
211

Europe
6,406

 
4

 
6,410

All Other
406

 

 
406

Total
7,023

 
4

 
7,027

Charges
 
 
 
 
 
North America
691

 

 
691

Europe
592

 
73

 
665

All Other
36

 

 
36

Total
1,319

 
73

 
1,392

Payments
 
 
 
 
 
North America
(562
)
 

 
(562
)
Europe
(959
)
 
(73
)
 
(1,032
)
All Other
(276
)
 

 
(276
)
Total
(1,797
)
 
(73
)
 
(1,870
)
March 31, 2020 Balances
 
 
 
 
 
North America
340

 

 
340

Europe
6,039

 
4

 
6,043

All Other
166

 

 
166

Total
$
6,545

 
$
4

 
$
6,549