XML 46 R28.htm IDEA: XBRL DOCUMENT v3.22.2.2
Business Segments
 9 Months Ended
Sep. 30, 2022
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 condensed 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 income or loss measure being segment operating income (loss). Segment operating income (loss) represents net sales less cost of products sold less selling general and administrative expenses. Segment operating income (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 income (loss) further excludes charges related to restructuring activities, asset impairment 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 September 30,For the Nine Months Ended September 30,
2022202120222021
Revenues from external customers
Europe$97,487 $127,026 $328,334 $361,097 
North America65,314 88,054 209,351 260,275 
All Other (Asia Pacific)7,607 9,120 22,728 24,894 
Consolidated$170,408 $224,200 $560,413 $646,266 
Intersegment revenues
Europe$2,763 $6,221 $11,327 $17,758 
North America5,738 15,044 24,274 45,903 
Consolidated$8,501 $21,265 $35,601 $63,661 
Restructuring charges before income taxes
Europe$5,034 $255 $9,766 $1,501 
North America2,332 122 5,534 975 
All Other1,074 — 1,083 — 
Consolidated$8,440 $377 $16,383 $2,476 
Operating income (loss)
Europe$(2,588)$9,554 $4,126 $18,378 
North America(15,007)(1,523)(29,607)(2,308)
All Other(6,391)(3,856)(21,981)(19,025)
Charges related to restructuring activities(8,440)(377)(16,383)(2,476)
Impairment of an intangible asset(1,012)— (1,012)— 
Impairment of goodwill— (28,564)— (28,564)
Consolidated operating loss(33,438)(24,766)(64,857)(33,995)
Net gain on convertible debt derivatives950 — 950 — 
Net gain on debt extinguishment6,398 10,131 6,398 9,422 
Net interest expense(7,344)(6,284)(19,825)(18,098)
Loss before income taxes$(33,434)$(20,919)$(77,334)$(42,671)
Net sales by product, are as follows (in thousands):
For the Three Months Ended September 30,For the Nine Months Ended September 30,
2022202120222021
Europe
Lifestyle$46,881 $61,683 $162,942 $181,628 
Mobility and Seating43,778 56,535 139,010 152,660 
Respiratory Therapy2,262 4,225 11,847 13,613 
Other(1)4,566 4,583 14,535 13,196 
$97,487 $127,026 $328,334 $361,097 
North America
Lifestyle$34,379 $38,666 $102,516 $114,951 
Mobility and Seating23,453 28,414 74,876 82,243 
Respiratory Therapy7,236 20,856 31,384 62,429 
Other(1)246 118 575 652 
$65,314 $88,054 $209,351 $260,275 
All Other (Asia Pacific)
Mobility and Seating$3,311 $3,171 $8,989 $9,239 
Lifestyle2,556 3,230 8,239 8,736 
Respiratory Therapy407 1,215 1,538 2,547 
Other(1)1,333 1,504 3,962 4,372 
$7,607 $9,120 $22,728 $24,894 
Total Consolidated$170,408 $224,200 $560,413 $646,266 
   ________________________
(1)Includes various services, including repair services, equipment rentals and external contracting.