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Business Segments
6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Business Segments
Business Segments
The company operates in two primary business segments: North America and Europe with each selling the company's primary product categories, which include: lifestyle, mobility and seating and respiratory therapy products. Sales in Asia Pacific are reported in All Other and include products similar to those sold in North America and Europe. 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 impairments and gain on sale of business (as applicable).

This performance measure, segment operating income (loss), is used by the Chief Operating Decision Maker (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 June 30,For the Six Months Ended June 30,
2020201920202019
Revenues from external customers
Europe$101,894  $133,991  $222,862  $258,835  
North America86,569  89,553  173,540  175,797  
All Other (Asia Pacific)7,837  12,314  18,338  24,645  
Consolidated$196,300  $235,858  $414,740  $459,277  
Intersegment revenues
Europe$4,185  $3,820  $8,411  $7,272  
North America22,249  19,442  42,731  39,979  
All Other (Asia Pacific)—  2,745  2,529  5,872  
Consolidated$26,434  $26,007  $53,671  $53,123  
Restructuring charges before income taxes
Europe$1,575  $320  $2,240  $640  
North America28  655  719  1,208  
All Other82  346  118  165  
Consolidated$1,685  $1,321  $3,077  $2,013  
Operating income (loss)
Europe$2,174  $5,470  $9,024  $11,252  
North America4,812  (1,243) 2,767  (5,622) 
All Other(7,740) (7,416) (11,295) (12,605) 
Charge expense related to restructuring activities(1,685) (1,321) (3,077) (2,013) 
Gain on sale of business200  —  9,790  —  
Consolidated operating income (loss)(2,239) (4,510) 7,209  (8,988) 
Net gain on convertible debt derivatives—  1,470  —  1,197  
Loss on debt extinguishment including debt finance charges and associated fees(6,599) —  (6,599) —  
Net Interest expense(7,031) (7,602) (13,647) (14,787) 
Loss before income taxes$(15,869) $(10,642) $(13,037) $(22,578) 
Net sales by product, are as follows (in thousands):
For the Three Months Ended June 30,For the Six Months Ended June 30,
2020201920202019
Europe
Lifestyle$52,018  $60,866  $110,321  $122,700  
Mobility and Seating39,646  62,802  92,424  116,533  
Respiratory Therapy5,679  5,446  10,610  9,956  
Other(1)4,551  4,877  9,507  9,646  
$101,894  $133,991  $222,862  $258,835  
North America
Lifestyle$40,502  $44,855  $83,043  $87,858  
Mobility and Seating26,339  29,919  55,913  58,386  
Respiratory Therapy19,572  14,298  34,221  28,703  
Other(1)156  481  363  850  
$86,569  $89,553  $173,540  $175,797  
All Other (Asia Pacific)
Mobility and Seating$2,652  $7,454  $8,087  $15,341  
Lifestyle3,669  2,552  6,801  5,260  
Respiratory Therapy315  716  848  888  
Other(1)1,201  1,592  2,602  3,156  
$7,837  $12,314  $18,338  $24,645  
Total Consolidated$196,300  $235,858  $414,740  $459,277  
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(1)Includes various services, including repair services, equipment rentals and external contracting.