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Business Segments
 3 Months Ended
Mar. 31, 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.

As of the third quarter of 2016, the company redefined the measure by which it evaluates segment profit or loss. 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 or loss on sales of businesses (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 March 31,
 
2017
 
2016
Revenues from external customers
 
 
 
Europe (1)
$
119,508

 
$
122,031

NA/HME (1)
84,262

 
107,672

IPG
16,373

 
18,244

Asia/Pacific
11,580

 
9,605

Consolidated
$
231,723

 
$
257,552

Intersegment revenues
 
 
 
Europe
$
3,675

 
$
2,592

NA/HME
22,095

 
27,615

IPG
768

 
416

Asia/Pacific
3,860

 
5,221

Consolidated
$
30,398

 
$
35,844

Restructuring charges before income taxes
 
 
 
Europe
$
690

 
$
—

NA/HME
2,242

 
61

Asia/Pacific
351

 
41

Consolidated
$
3,283

 
$
102

Operating profit (loss)
 
 
 
Europe (1)
$
5,100

 
$
5,963

NA/HME (1)
(9,426
)
 
(6,409
)
IPG
1,898

 
1,424

Asia/Pacific
(430
)
 
(703
)
All Other (2)
(4,510
)
 
(5,249
)
Charge expense related to restructuring activities
(3,283
)
 
(102
)
Consolidated operating loss
(10,651
)
 
(5,076
)
Net gain on convertible derivatives
901

 
604

Net Interest expense
(4,430
)
 
(2,319
)
Loss before income taxes
$
(14,180
)
 
$
(6,791
)
 
 
 
 
________

(1) 
During the first quarter of 2017, a subsidiary, formerly included in the Europe segment transferred to the NA/HME segment as it is managed by the NA/HME segment manager effective January 1, 2017. This restatement increased revenues from external customers by $1,301,000 and operating loss by $107,000 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.