DEI Document
DEI Document - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | INVACARE CORPORATION | |
Entity Central Index Key | 742,112 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Shares [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 33,229,658 | |
Class B Common Shares [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,357 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net Sales | $ 246,152,000 | $ 233,517,000 | $ 483,212,000 | $ 465,240,000 | |
Cost of products sold | 178,806,000 | 168,495,000 | 349,349,000 | 335,073,000 | |
Gross Profit | 67,346,000 | 65,022,000 | 133,863,000 | 130,167,000 | |
Selling, general and administrative expenses | 73,763,000 | 75,721,000 | 145,027,000 | 148,234,000 | |
Charges related to restructuring activities | 344,000 | 4,987,000 | 745,000 | 8,270,000 | |
Operating Income (Loss) | (6,761,000) | (15,686,000) | (11,909,000) | (26,337,000) | |
Loss (gain) on Convertible Debt Derivatives | (21,000) | 1,051,000 | (124,000) | 150,000 | |
Interest expense | 6,964,000 | 4,645,000 | 13,926,000 | 9,163,000 | |
Interest income | (136,000) | (49,000) | (385,000) | (137,000) | |
Loss Before Income Taxes | (13,568,000) | (21,333,000) | (25,326,000) | (35,513,000) | |
Income tax provision | 2,975,000 | 2,175,000 | 5,325,000 | 4,775,000 | |
Net Loss | $ (16,543,000) | $ (23,508,000) | $ (30,651,000) | $ (40,288,000) | |
Dividends Declared per Common Share | $ 0.0125 | $ 0.0125 | $ 0.0250 | $ 0.0250 | |
Net Earnings (Loss) per Share—Basic | |||||
Net Loss per Share—Basic | $ (0.50) | $ (0.72) | $ (0.93) | $ (1.23) | |
Weighted Average Shares Outstanding—Basic | 33,169 | 32,833 | 33,040 | 32,654 | |
Net Earnings (Loss) per Share—Assuming Dilution | |||||
Net Loss per Share—Assuming Dilution | [1] | $ (0.50) | $ (0.72) | $ (0.93) | $ (1.23) |
Weighted Average Shares Outstanding—Assuming Dilution | 33,996 | 33,193 | 33,867 | 32,947 | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments | $ (23,438,000) | $ 26,311,000 | $ (11,622,000) | $ 27,260,000 | |
Defined Benefit Plans: | |||||
Amortization of prior service costs and unrecognized gains (loss) | 290,000 | (426,000) | 243,000 | (721,000) | |
Deferred tax adjustment resulting from defined benefit plan activity | 33,000 | 15,000 | (49,000) | 12,000 | |
Valuation reserve (reversal) associated with defined benefit plan activity | (33,000) | (15,000) | 49,000 | (12,000) | |
Current period unrealized gain (loss) on cash flow hedges | 1,966,000 | (1,907,000) | 1,719,000 | (1,276,000) | |
Deferred tax benefit (loss) related to unrealized gain (loss) on cash flow hedges | (261,000) | 271,000 | (151,000) | 105,000 | |
Other Comprehensive Income (Loss) | (21,443,000) | 24,249,000 | (9,811,000) | 25,368,000 | |
Comprehensive Income (Loss) | $ (37,986,000) | $ 741,000 | $ (40,462,000) | $ (14,920,000) | |
Net Sales, as a Percent of Net Sales | 100.00% | 100.00% | 100.00% | 100.00% | |
Cost of Products Sold, as a Percent of Net Sales | 72.60% | 72.20% | 72.30% | 72.00% | |
Gross Profit, as a Percent of Net Sales | 27.40% | 27.80% | 27.70% | 28.00% | |
Selling, general and administrative expenses, as a Percent of Net Sales | 30.00% | 32.40% | 30.00% | 31.90% | |
Charges related to restructuring activities, as a Percent of Net Sales | 0.10% | 2.10% | 0.20% | 1.80% | |
Operating Gain (Loss), as a Percent of Net Sales | (2.70%) | (6.70%) | (2.50%) | (5.70%) | |
Net loss (gain) on convertible debt derivatives, as a Percent of Net Sales | 0.00% | 0.50% | 0.00% | 0.00% | |
Interest expense, as a Percent of Net Sales | 2.80% | 2.00% | 2.90% | 2.00% | |
Interest income, as a Percent of Net Sales | (0.10%) | 0.00% | (0.10%) | 0.00% | |
Gain (loss) Before Income Taxes, as a Percent of Net Sales | (5.50%) | (9.10%) | (5.20%) | (7.60%) | |
Income Tax Provision, as a Percent of Net Sales | 1.20% | 0.90% | 1.10% | 1.00% | |
Net Gain (Loss), as a percent of Net Sales | (6.70%) | (10.10%) | (6.30%) | (8.70%) | |
[1] | Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 122,398 | $ 176,528 |
Trade receivables, net | 124,099 | 125,615 |
Installment receivables, net | 1,266 | 1,334 |
Inventories, net | 136,606 | 121,933 |
Other current assets | 32,841 | 31,504 |
Total Current Assets | 417,210 | 456,914 |
Other Assets | 113,139 | 97,576 |
Intangibles | 28,820 | 30,244 |
Property and Equipment, net | 76,690 | 80,016 |
Goodwill | 394,051 | 401,283 |
Total Assets | 1,029,910 | 1,066,033 |
Current Liabilities | ||
Accrued expenses | 92,678 | 90,566 |
Accrued expenses | 101,492 | 118,697 |
Current taxes payable | 2,914 | 6,761 |
Short-term debt and current maturities of long-term obligations | 1,676 | 2,040 |
Total Current Liabilities | 198,760 | 218,064 |
Long-Term Debt | 247,326 | 241,405 |
Other Long-Term Obligations | 198,644 | 183,270 |
Shareholders’ Equity | ||
Preferred Shares (Authorized 300 shares; none outstanding) | 0 | 0 |
Additional paid-in-capital | 295,572 | 290,125 |
Retained earnings | 156,540 | 187,999 |
Accumulated other comprehensive income | 27,059 | 36,870 |
Treasury shares (3,837 and 3,701 shares at June 30, 2018 and December 31, 2017, respectively) | (103,410) | (101,006) |
Total Shareholders’ Equity | 385,180 | 423,294 |
Total Liabilities and Shareholders’ Equity | 1,029,910 | 1,066,033 |
Common Shares [Member] | ||
Shareholders’ Equity | ||
Common Shares | 9,417 | 9,304 |
Class B Common Shares [Member] | ||
Shareholders’ Equity | ||
Common Shares | $ 2 | $ 2 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Common Stock, Par or Stated Value Per Share | $ 0.25 | |
Preferred Stock, Shares Authorized | 300 | 300 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Treasury Stock, Shares | 3,837 | 3,701 |
Common Shares [Member] | ||
Common Stock, Shares Authorized | 100,000 | 100,000 |
Common Stock, Shares, Issued | 37,066 | 36,532 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Class B Common Shares [Member] | ||
Common Stock, Shares Authorized | 12,000 | 12,000 |
Common Stock, Shares, Issued | 6 | 6 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement Of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net loss | $ (30,651,000) | $ (40,288,000) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and amortization | 7,700,000 | 7,312,000 |
Provision for losses on trade and installment receivables | 716,000 | 500,000 |
Benefit for deferred income taxes | (128,000) | (759,000) |
Provision for other deferred liabilities | (7,000) | 400,000 |
Provision for equity compensation | 2,943,000 | 4,646,000 |
Loss (gain) on disposals of property and equipment | 21,000 | (91,000) |
Amortization of convertible debt discount | 5,650,000 | 3,451,000 |
Amortization of debt fees | 1,246,000 | 985,000 |
(Gain) Loss on convertible debt derivatives | 124,000 | (150,000) |
Changes in operating assets and liabilities: | ||
Trade receivables | (1,659,000) | (5,396,000) |
Installment sales contracts, net | 294,000 | (186,000) |
Inventories | (17,079,000) | (13,095,000) |
Other current assets | (1,076,000) | 1,262,000 |
Accounts payable | 3,231,000 | (2,376,000) |
Accrued expenses | (18,289,000) | (5,851,000) |
Other long-term liabilities | 114,000 | (1,132,000) |
Net Cash Used by Operating Activities | (47,098,000) | (50,468,000) |
Investing Activities | ||
Purchases of property and equipment | (4,227,000) | (5,504,000) |
Proceeds from sale of property and equipment | 37,000 | 190,000 |
Change in other long-term assets | (298,000) | (218,000) |
Other | 11,000 | (87,000) |
Net Cash Used by Investing Activities | (4,477,000) | (5,619,000) |
Financing Activities | ||
Proceeds from revolving lines of credit and long-term borrowings | 0 | 95,220,000 |
Payments on revolving lines of credit and long-term borrowings | (602,000) | (14,881,000) |
Proceeds from exercise of stock options | 2,618,000 | 1,429,000 |
Payment of financing costs | 0 | 4,144,000 |
Payment of dividends | (808,000) | (793,000) |
Issuance of warrants | 0 | 14,100,000 |
Purchase of treasury stock | (2,404,000) | (1,221,000) |
Net Cash (Used) Provided by Financing Activities | (1,196,000) | 89,710,000 |
Effect of exchange rate changes on cash | (1,359,000) | 2,225,000 |
Increase (decrease) in cash and cash equivalents | (54,130,000) | 35,848,000 |
Cash and cash equivalents at beginning of year | 176,528,000 | 124,234,000 |
Cash and cash equivalents at end of period | $ 122,398,000 | $ 160,082,000 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts of the company and its wholly owned subsidiaries and include all adjustments, which were of a normal recurring nature, necessary to present fairly the financial position of the company as of June 30, 2018 and the results of its operations and changes in its cash flow for the six months ended June 30, 2018 and 2017 , respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using a May 31 quarter end to meet filing deadlines. No material subsequent events have occurred related to the European segment, which would require disclosure or adjustment to the company's financial statements. All significant intercompany transactions are eliminated. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the full year. Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from these estimates. Accounts Receivable: The company records accounts receivable when control of the product or service transfers to its unaffiliated customers, risk of loss is passed and title is transferred. The estimated allowance for uncollectible amounts is based primarily on management's evaluation of the financial condition of specific customers. The company records accounts receivable reserves for amounts that may become uncollectible in the future. The company writes off accounts receivable when it becomes apparent, based upon customer circumstances, that such amounts will not be collected and when legal remedies are exhausted. Reserves for customer bonus and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly. Recent Accounting Pronouncements (Already Adopted): In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which replaces numerous requirements in U.S. GAAP and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASU 2014-09 requires a company to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance requires five steps to be applied: 1) identify the contract(s) with customers, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligation in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than previous revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. Effective January 1, 2018 , the company adopted the new accounting standard, and all the related amendments, on a modified retrospective basis, with no cumulative effect adjustment to equity needed. Upon adoption, the standard did not have a material impact on the company's results of operations or cash flows nor does the company expect it to have a material impact on future periods. Pursuant to ASU 2014-09, revenues are recognized as control transfers to the customers, which is consistent with the prior revenue recognition model and the prior accounting for the vast majority of the company's contracts. While the company does have a minor amount of service business for which revenue is recognized over time as compared to a point in time, the company’s process to estimate the amount of revenue to be recognized did not change as a result of the implementation of the new standard. Recent Accounting Pronouncements (Not Yet Adopted): In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet while recognizing expense in a manner similar to existing accounting. The new accounting guidance is effective for fiscal periods beginning after December 15, 2018 and early adoption is permitted. The company continues to assess the impact of the adoption of ASU 2016-02 on the company's financial statements. While the company has not finalized its assessment of the impact of ASU 2016-02, the company does expect the standard to have a significant impact on the company's consolidated balance sheets as the company will be required to record assets and liabilities related to its operating leases. The standard is not expected to have a material impact on the Company's results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Statements." ASU 2016-13 requires a new credit loss standard for most financial assets and certain other instruments. For example, entities will be required to use an "expected loss" model that will generally require earlier recognition of allowances for losses for trade receivables. The standard also requires additional disclosures, including disclosures regarding how an entity tracks credit quality. The amendments in the pronouncement are effective for fiscal years beginning after December 15, 2019 , including interim periods within those fiscal years. Entities may early adopt the amendments as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The company is currently reviewing the impact of the adoption of ASU 2016-13 on the company's financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017 . The company is currently reviewing the impact of the adoption of ASU 2017-04 but does not expect the adoption to impact the company's financial statements. |
Operations Held For Sale
Operations Held For Sale | 6 Months Ended |
Jun. 30, 2018 | |
Operations Held For Sale [Abstract] | |
Discontinued Operations Held For Sale Disclosure | Operations Held for Sale Prior to 2018, the company had recorded expenses related to the sale of all operations held for sale totaling $2,892,000 , of which $2,366,000 has been paid out as of June 30, 2018 . |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations From 2012 through 2014, the company sold three businesses which were classified as discontinued operations. Prior to 2018, the company had recorded cumulative expenses related to the sale of discontinued operations totaling $8,801,000 , of which $8,405,000 have been paid as of June 30, 2018 . |
Receivables
Receivables | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consist of the following (in thousands): June 30, 2018 December 31, 2017 Accounts receivable, gross $ 143,696 $ 154,966 Customer rebate reserve (10,527 ) (18,747 ) Allowance for doubtful accounts (4,841 ) (5,113 ) Cash discount reserves (3,173 ) (4,252 ) Other, principally returns and allowances reserves (1,056 ) (1,239 ) Accounts receivable, net $ 124,099 $ 125,615 Reserves for customer bonus and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly. The decrease in customer rebates reserve from December 31, 2017 to June 30, 2018 was the result of rebate payments, the majority of which are paid in the first quarter of each year. Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. Substantially all the company’s receivables are due from health care, medical equipment providers and long-term care facilities located throughout the United States, Australia, Canada, New Zealand, China and Europe. A significant portion of products sold to providers, both foreign and domestic, are ultimately funded through government reimbursement programs such as Medicare and Medicaid in the U.S. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability. The estimated allowance for uncollectible amounts are based primarily on management’s evaluation of the financial condition of specific customers. In addition, as a result of the company's financing arrangement with DLL, a third-party financing company which the company has worked with since 2000, management monitors the collection status of these contracts in accordance with the company’s limited recourse obligations and provides amounts necessary for estimated losses in the allowance for doubtful accounts and establishes reserves for specific customers as needed. The company writes off uncollectible trade accounts receivable after such receivables are moved to collection status and legal remedies are exhausted. See Concentration of Credit Risk in the Notes to the Consolidated Financial Statements for a description of the financing arrangement. Long-term installment receivables are included in “Other Assets” on the consolidated balance sheet. The company’s U.S. customers electing to finance their purchases can do so using DLL. In addition, the company often provides financing directly for its Canadian customers for which DLL is not an option, as DLL typically provides financing to Canadian customers only on a limited basis. The installment receivables recorded on the books of the company represent a single portfolio segment of finance receivables to the independent provider channel and long-term care customers. The portfolio segment is comprised of two classes of receivables distinguished by geography and credit quality. The U.S. installment receivables are the first class and represent installment receivables re-purchased from DLL because the customers were in default. Default with DLL is defined as a customer being delinquent by three payments. The Canadian installment receivables represent the second class of installment receivables which were originally financed by the company because third party financing was not available to the HME providers. The Canadian installment receivables are typically financed for twelve months and historically have had a very low risk of default. The estimated allowance for uncollectible amounts and evaluation for impairment for both classes of installment receivables is based on the company’s quarterly review of the financial condition of each individual customer with the allowance for doubtful accounts adjusted accordingly. Installments are individually and not collectively reviewed for impairment. The company assesses the bad debt reserve levels based upon the status of the customer’s adherence to a legally negotiated payment schedule and the company’s ability to enforce judgments, liens, etc. For purposes of granting or extending credit, the company utilizes a scoring model to generate a composite score that considers each customer’s consumer credit score and or D&B credit rating, payment history, security collateral and time in business. Additional analysis is performed for most customers desiring credit greater than $250,000 , which generally includes a detailed review of the customer’s financial statements as well as consideration of other factors such as exposure to changing reimbursement laws. Interest income is recognized on installment receivables based on the terms of the installment agreements. Installment accounts are monitored and if a customer defaults on payments and is moved to collection, interest income is no longer recognized. Subsequent payments received once an account is put on non-accrual status are generally first applied to the principal balance and then to the interest. Accruing of interest on collection accounts would only be restarted if the account became current again. All installment accounts are accounted for using the same methodology regardless of the duration of the installment agreements. When an account is placed in collection status, the company goes through a legal process for pursuing collection of outstanding amounts, the length of which typically approximates eighteen months . Any write-offs are made after the legal process has been completed. The company has not made any changes to either its accounting policies or methodology to estimate allowances for doubtful accounts in the last twelve months. Installment receivables consist of the following (in thousands): June 30, 2018 December 31, 2017 Current Long- Term Total Current Long- Term Total Installment receivables $ 2,369 $ 1,525 $ 3,894 $ 2,415 $ 2,076 $ 4,491 Less: Unearned interest (32 ) — (32 ) (38 ) — (38 ) 2,337 1,525 3,862 2,377 2,076 4,453 Allowance for doubtful accounts (1,071 ) (1,214 ) (2,285 ) (1,043 ) (1,601 ) (2,644 ) Installment receivables, net $ 1,266 $ 311 $ 1,577 $ 1,334 $ 475 $ 1,809 Installment receivables purchased from DLL during the six months ended June 30, 2018 increased the gross installment receivables balance by $47,000 . No sales of installment receivables were made by the company during the quarter. The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands): Six Months Ended June 30, 2018 Year Ended December 31, 2017 Balance as of beginning of period $ 2,644 $ 2,838 Current period provision (benefit) (102 ) 1,001 Direct write-offs charged against the allowance (257 ) (1,195 ) Balance as of end of period $ 2,285 $ 2,644 Installment receivables by class as of June 30, 2018 consist of the following (in thousands): Total Installment Receivables Unpaid Principal Balance Related Allowance for Doubtful Accounts Interest Income Recognized U.S. Impaired installment receivables with a related allowance recorded $ 3,005 $ 3,005 $ 2,285 $ — Canada Non-Impaired installment receivables with no related allowance recorded 889 857 — 68 Impaired installment receivables with a related allowance recorded — — — — Total Canadian installment receivables 889 857 — 68 Total Non-Impaired installment receivables with no related allowance recorded 889 857 — 68 Impaired installment receivables with a related allowance recorded 3,005 3,005 2,285 — Total installment receivables $ 3,894 $ 3,862 $ 2,285 $ 68 Installment receivables by class as of December 31, 2017 consist of the following (in thousands): Total Installment Receivables Unpaid Principal Balance Related Interest Income Recognized U.S. Impaired installment receivables with a related allowance recorded $ 3,566 $ 3,566 $ 2,642 $ — Canada Non-Impaired installment receivables with no related allowance recorded 923 885 — 74 Impaired installment receivables with a related allowance recorded 2 2 2 — Total Canadian installment receivables 925 887 2 74 Total Non-Impaired installment receivables with no related allowance recorded 923 885 — 74 Impaired installment receivables with a related allowance recorded 3,568 3,568 2,644 — Total installment receivables $ 4,491 $ 4,453 $ 2,644 $ 74 Installment receivables with a related allowance recorded as noted in the table above represent those installment receivables on a non-accrual basis in accordance with ASU 2010-20. As of June 30, 2018 , the company had no U.S. installment receivables past due of 90 days or more for which the company is still accruing interest. Individually, all U.S. installment receivables are assigned a specific allowance for doubtful accounts based on management’s review when the company does not expect to receive both the contractual principal and interest payments as specified in the loan agreement. In Canada, the company had an immaterial amount of Canadian installment receivables which were past due of 90 days or more as of December 31, 2017 for which the company was still accruing interest. The aging of the company’s installment receivables was as follows (in thousands): June 30, 2018 December 31, 2017 Total U.S. Canada Total U.S. Canada Current $ 889 $ — $ 889 $ 916 $ — $ 916 0-30 Days Past Due — — — 6 — 6 31-60 Days Past Due — — — — — — 61-90 Days Past Due — — — — — — 90+ Days Past Due 3,005 3,005 — 3,569 3,566 3 $ 3,894 $ 3,005 $ 889 $ 4,491 $ 3,566 $ 925 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): June 30, 2018 December 31, 2017 Finished goods $ 60,481 $ 52,773 Raw materials 65,250 59,497 Work in process 10,875 9,663 Inventories, net $ 136,606 $ 121,933 |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following (in thousands): June 30, 2018 December 31, 2017 Value added tax receivables $ 15,914 $ 16,174 Service contracts 3,021 2,812 Derivatives (foreign currency forward exchange contracts) 2,136 730 Prepaid insurance 1,155 2,647 Prepaid inventory 614 711 Recoverable income taxes 513 341 Prepaid debt fees 394 397 Prepaid and other current assets 9,094 7,692 Other Current Assets $ 32,841 $ 31,504 |
Other Long-Term Assets
Other Long-Term Assets | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | Other Long-Term Assets Other long-term assets consist of the following (in thousands): June 30, 2018 December 31, 2017 Convertible 2022 note hedge asset $ 54,490 $ 46,680 Convertible 2021 note hedge asset 54,858 46,915 Cash surrender value of life insurance policies 1,956 1,991 Deferred financing fees 595 787 Long-term installment receivables 311 475 Long-term deferred taxes 403 518 Investments 90 103 Other 436 107 Other Long-Term Assets $ 113,139 $ 97,576 |
Property And Equipment
Property And Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | Property and Equipment Property and equipment consist of the following (in thousands): June 30, 2018 December 31, 2017 Machinery and equipment $ 301,334 $ 307,244 Land, buildings and improvements 77,760 78,522 Leasehold improvements 8,955 9,947 Furniture and fixtures 9,974 10,264 Property and Equipment, gross 398,023 405,977 Less allowance for depreciation (321,333 ) (325,961 ) Property and Equipment, net $ 76,690 $ 80,016 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The change in goodwill from December 31, 2017 to June 30, 2018 was due to foreign currency translation. |
Intangibles
Intangibles | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangibles | Intangibles The company's intangibles consist of the following (in thousands): June 30, 2018 December 31, 2017 Historical Cost Accumulated Amortization Historical Cost Accumulated Amortization Customer lists $ 53,481 $ 51,677 $ 54,516 $ 51,957 Trademarks 25,822 — 26,372 — Developed technology 7,808 6,635 7,925 6,636 Patents 5,529 5,524 5,566 5,559 License agreements 1,133 1,133 1,187 1,187 Other 1,162 1,146 1,162 1,145 Intangibles $ 94,935 $ 66,115 $ 96,728 $ 66,484 All the company’s intangible assets have been assigned definite lives and continue to be amortized over their useful lives, except for trademarks shown above, which have indefinite lives. The changes in intangible balances reflected on the balance sheet from December 31, 2017 to June 30, 2018 were the result of foreign currency translation and amortization. The company evaluates the carrying value of definite-lived assets whenever events or circumstances indicate possible impairment. Definite-lived assets are determined to be impaired if the future un-discounted cash flows expected to be generated by the asset are less than the carrying value. Actual impairment amounts for definite-lived assets are then calculated using a discounted cash flow calculation. The company reviews indefinite-lived assets for impairment annually in the fourth quarter of each year and whenever events or circumstances indicate possible impairment. Any impairment amounts for indefinite-lived assets are calculated as the difference between the future discounted cash flows expected to be generated by the asset less than the carrying value for the asset. Amortization expense related to intangibles was $837,000 in the first six months of 2018 and is estimated to be $1,672,000 in 2018 , $1,264,000 in 2019 , $194,000 in 2020 , $194,000 in 2021 , $194,000 in 2022 and $194,000 in 2023 . Amortized intangibles are being amortized on a straight-line basis over remaining lives of 1 to 10 years with most of the intangibles being amortized over an average remaining life of approximately 3 years. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of accruals for the following (in thousands): June 30, 2018 December 31, 2017 Salaries and wages $ 28,912 $ 33,390 Taxes other than income taxes, primarily Value Added Taxes 21,137 22,627 Warranty 18,891 22,468 Professional 5,336 5,203 Freight 3,970 4,002 Interest 3,915 3,919 Deferred revenue 3,092 2,770 Product liability, current portion 3,045 2,905 Derivative liabilities (foreign currency forward exchange contracts) 1,302 2,120 Severance 1,235 3,704 Rebates 1,203 5,831 Rent 707 808 Insurance 660 645 Supplemental Executive Retirement Program liability 391 391 Other items, principally trade accruals 7,696 7,914 Accrued Expenses $ 101,492 $ 118,697 Depending on the terms of the contract, the company may defer the recognition of a portion of the revenue at the end of a reporting period to align with the transfer of control of the company’s products to the customer. In addition, to the extent performance obligations are satisfied over time, the company defers revenue recognition until the performance obligations are satisfied. Accrued rebates relate to several volume incentive programs the company offers its customers. The company accounts for these rebates as a reduction of revenue when the products are sold in accordance with the guidance in ASC 605-50, C ustomer Payments and Incentives . Rebates are netted against gross accounts receivables unless in excess of such receivables and then classified as accrued expenses. The reduction in accrued rebates from December 31, 2017 to June 30, 2018 primarily relates to payments principally made in the first quarter each year. Generally, the company's products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sale to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. In addition, the company has sold extended warranties that, while immaterial, require the company to defer the revenue associated with those warranties until earned. The company has established procedures to appropriate defer such revenue. The company continuously assesses the adequacy of its product warranty accruals and makes adjustments as needed. Historical analysis is primarily used to determine the company's warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product field action and recalls, which could require additional warranty reserve provision. The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): Balance as of January 1, 2018 $ 22,468 Warranties provided during the period 3,663 Settlements made during the period (7,503 ) Changes in liability for pre-existing warranties during the period, including expirations 263 Balance as of June 30, 2018 $ 18,891 Warranty reserves are subject to adjustment in future periods as new developments change the company's estimate of the total cost. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures | Debt consists of the following (in thousands): June 30, 2018 December 31, 2017 Convertible senior notes at 5.00%, due in February 2021 $ 126,217 $ 122,355 Convertible senior notes at 4.50%, due in June 2022 92,509 89,675 Other notes and lease obligations 30,276 31,415 249,002 243,445 Less current maturities of long-term debt (1,676 ) (2,040 ) Long-Term Debt $ 247,326 $ 241,405 The company had outstanding letters of credit of $3,126,000 and $2,945,000 as of June 30, 2018 and December 31, 2017 , respectively. There were no borrowings denominated in foreign currencies, excluding a portion of the company's capital leases, as of June 30, 2018 and December 31, 2017 . The weighted average interest rate on all borrowings, excluding capital leases, was 4.78% for the six months ended June 30, 2018 compared to 4.84% for the year ended December 31, 2017 . On September 30, 2015 , the company entered into an Amended and Restated Revolving Credit and Security Agreement, which was subsequently amended (the “Credit Agreement”) and which matures on January 16, 2021. The Credit Agreement was entered into by and among the company, certain of the company’s direct and indirect U.S. and Canadian subsidiaries and certain of the company’s European subsidiaries (together with the company, the “Borrowers”), certain other of the company’s direct and indirect U.S., Canadian and European subsidiaries (the “Guarantors”), and PNC Bank, National Association (“PNC”), JPMorgan Chase Bank, N.A., J.P. Morgan Europe Limited, KeyBank National Association, and Citizens Bank, National Association (the “Lenders”). PNC is the administrative agent (the “Administrative Agent”) and J.P. Morgan Europe Limited is the European agent (the “European Agent”) under the Credit Agreement. In connection with entering into the company's Credit Agreement, the company incurred fees which were capitalized and are being amortized as interest expense. As of June 30, 2018 , debt fees yet to be amortized through January 2021 totaled $989,000 . U.S. and Canadian Borrowers Credit Facility For the company's U.S. and Canadian Borrowers, the Credit Agreement provides for an asset-based-lending senior secured revolving credit facility which is secured by substantially all the company’s U.S. and Canadian assets, other than real estate. The Credit Agreement provides the company and the other Borrowers with a credit facility in an aggregate principal amount of $100,000,000 , subject to availability based on a borrowing base formula, under a senior secured revolving credit, letter of credit and swing line loan facility (the “U.S. and Canadian Credit Facility”). Up to $25,000,000 of the U.S. and Canadian Credit Facility will be available for issuance of letters of credit. The aggregate principal amount of the U.S. and Canadian Credit Facility may be increased by up to $25,000,000 to the extent requested by the company and agreed to by any Lender or new financial institution approved by the Administrative Agent. The aggregate borrowing availability under the U.S. and Canadian Credit Facility is determined based on a borrowing base formula. The aggregate usage under the U.S. and Canadian Credit Facility may not exceed an amount equal to the sum of (a) 85% of eligible U.S. accounts receivable plus (b) the lesser of (i) 70% of eligible U.S. inventory and eligible foreign in-transit inventory and (ii) 85% of the net orderly liquidation value of eligible U.S. inventory and eligible foreign in-transit inventory (not to exceed $4,000,000 ), plus (c) the lesser of (i) 85% of the net orderly liquidation value of U.S. eligible machinery and equipment and (ii) $1,023,000 as of June 30, 2018 (subject to reduction as provided in the Credit Agreement), plus (d) 85% of eligible Canadian accounts receivable, plus (e) the lesser of (i) 70% of eligible Canadian inventory and (ii) 85% of the net orderly liquidation value of eligible Canadian inventory, less (f) swing loans outstanding under the U.S. and Canadian Credit Facility, less (g) letters of credit issued and undrawn under the U.S. and Canadian Credit Facility, less (h) a $5,000,000 minimum availability reserve, less (i) other reserves required by the Administrative Agent, and in each case subject to the definitions and limitations in the Credit Agreement. As of June 30, 2018 , the company was in compliance with all covenant requirements and had borrowing capacity on the U.S. and Canadian Credit Facility under the Credit Agreement of $23,835,000 , considering the minimum availability reserve, then-outstanding letters of credit, other reserves and the $11,250,000 dominion trigger amount described below. Borrowings under the U.S. and Canadian Credit Facility are secured by substantially all of the company’s U.S. and Canadian assets, other than real estate. Interest will accrue on outstanding indebtedness under the Credit Agreement at the LIBOR rate, plus a margin ranging from 2.25% to 2.75% , or at the alternate base rate, plus a margin ranging from 1.25% to 1.75% , as selected by the company. Borrowings under the U.S. and Canadian Credit Facility are subject to commitment fees of 0.25% or 0.375% per year, depending on utilization. The Credit Agreement contains customary representations, warranties and covenants. Exceptions to the operating covenants in the Credit Agreement provide the company with flexibility to, among other things, enter into or undertake certain sale and leaseback transactions, dispositions of assets, additional credit facilities, sales of receivables, additional indebtedness and intercompany indebtedness, all subject to limitations set forth in the Credit Agreement, as amended. The Credit Agreement also contains a covenant requiring the company to maintain minimum availability under the U.S. and Canadian Credit Facility of not less than the greater of (i) 11.25% of the maximum amount that may be drawn under the U.S. and Canadian Credit Facility for five ( 5 ) consecutive business days, or (ii) $5,000,000 on any business day. The company also is subject to dominion triggers under the U.S. and Canadian Credit Facility requiring the company to maintain borrowing capacity of not less than $11,250,000 on any business day or $12,500,000 for five consecutive days in order to avoid triggering full control by an agent for the lenders of the company's cash receipts for application to the company’s obligations under the agreement. The Credit Agreement contains customary default provisions, with certain grace periods and exceptions, which provide that events of default that include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption of any material manufacturing facilities for more than 10 consecutive days. There were no borrowings outstanding under the U.S. and Canadian Credit Facility at June 30, 2018 . European Credit Facility The Credit Agreement also provides for a revolving credit, letter of credit and swing line loan facility which gives the company and the European Borrowers the ability to borrow up to an aggregate principal amount of $30,000,000 , with a $5,000,000 sublimit for letters of credit and a $2,000,000 sublimit for swing line loans (the “European Credit Facility”). Up to $15,000,000 of the European Credit Facility will be available to each of Invacare Limited (the “UK Borrower”) and Invacare Poirier SAS (the “French Borrower” and, together with the UK Borrower, the “European Borrowers”). The European Credit Facility matures in January 2021, together with the U.S. and Canadian Credit Facility. The aggregate borrowing availability for each European Borrower under the European Credit Facility is determined based on a borrowing base formula. The aggregate borrowings of each of the European Borrowers under the European Credit Facility may not exceed an amount equal to (a) 85% of the European Borrower’s eligible accounts receivable, less (b) the European Borrower’s borrowings and swing line loans outstanding under the European Credit Facility, less (c) the European Borrower’s letters of credit issued and undrawn under the European Credit Facility, less (d) a $3,000,000 minimum availability reserve, less (e) other reserves required by the European Agent, and in each case subject to the definitions and limitations in the Credit Agreement. As of June 30, 2018 , the aggregate borrowing availability to the European Borrowers under the European Credit Facility was approximately $14,822,000 , considering the $3,000,000 minimum availability reserve and the $3,375,000 dominion trigger amount described below. The aggregate principal amount of the European Credit Facility may be increased by up to $10,000,000 to the extent requested by the company and agreed to by any Lender or Lenders that wish to increase their lending participation or, if not agreed to by any Lender, a new financial institution that agrees to join the European Credit Facility and that is approved by the Administrative Agent and the European Agent. Interest will accrue on outstanding indebtedness under the European Credit Facility at the LIBOR rate, plus a margin ranging from 2.50% to 3.00% , or for swing line loans, at the overnight LIBOR rate, plus a margin ranging from 2.50% to 3.00% , as selected by the company. The margin that will be adjusted quarterly based on utilization. Borrowings under the European Credit Facility are subject to commitment fees of 0.25% or 0.375% per year, depending on utilization. The European Credit Facility is secured by substantially all the personal property assets of the UK Borrower and its in-country subsidiaries, and all the receivables of the French Borrower and its in-country subsidiaries. The UK and French facilities (which comprise the European Credit Facility) are cross collateralized, and the US personal property assets previously pledged under the U.S. and Canadian Credit Facility also serve as collateral for the European Credit Facility. The European Credit Facility is subject to customary representations, warranties and covenants generally consistent with those applicable to the U.S. and Canadian Credit Facility. Exceptions to the operating covenants in the Credit Agreement provide the company with flexibility to, among other things, enter into or undertake certain sale/leaseback transactions, dispositions of assets, additional credit facilities, sales of receivables, additional indebtedness and intercompany indebtedness, all subject to limitations set forth in the Credit Agreement. The Credit Agreement also contains a covenant requiring the European Borrowers to maintain undrawn availability under the European Credit Facility of not less than the greater of (i) 11.25% of the maximum amount that may be drawn under the European Credit Facility for five ( 5 ) consecutive business days, or (ii) $3,000,000 on any business day. The European Borrowers also are subject to cash dominion triggers under the European Credit Facility requiring the European Borrower to maintain borrowing capacity of not less than $3,375,000 on any business day or 12.50% of the maximum amount that may be drawn under the European Credit Facility for five ( 5 ) consecutive business days in order to avoid triggering full control by an agent for the Lenders of the European Borrower’s cash receipts for application to its obligations under the European Credit Facility. The European Credit Facility is subject to customary default provisions, with certain grace periods and exceptions, consistent with those applicable to the U.S. and Canadian Credit Facility, which provide that events of default include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, cross-default, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption in the operations of any material manufacturing facility for more than 10 consecutive days. The proceeds of the European Credit Facility will be used to finance the working capital and other business needs of the company. There were no borrowings outstanding under the European Credit Facility at June 30, 2018 . Convertible senior subordinated debentures due 2027 In 2007 , the company issued $135,000,000 principal amount of 4.125% Convertible Senior Subordinated Debentures due 2027 (the "debentures"), of which $0 principal amount remains outstanding as of June 30, 2018 . The holders of the debentures exercised their right to require the company to repurchase all the debentures on February 1, 2017 at a price equal to 100% of the principal amount, which totaled $13,350,000 . As a result of the repurchase, the company wrote-off unamortized debt fees of $207,000 and recognized amortization expense of $311,000 in the first quarter of 2017. Convertible senior notes due 2021 In the first quarter of 2016, the company issued $150,000,000 aggregate principal amount of 5.00% Convertible Senior Notes due 2021 (the “2021 notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2021 notes bear interest at a rate of 5.00% per year payable semi-annually in arrears on February 15 and August 15 of each year, beginning August 15, 2016 . The 2021 notes will mature on February 15, 2021 , unless repurchased or converted in accordance with their terms prior to such date. Prior to August 15, 2020 , the 2021 notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Unless and until the company obtains shareholder approval under applicable New York Stock Exchange rules, the 2021 notes will be convertible, subject to certain conditions, into only cash. If the company obtains such shareholder approval, the 2021 notes may be settled in cash, the company’s common shares or a combination of cash and the company’s common shares, at the company’s election. Holders of the 2021 notes may convert their 2021 notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2020 only under the following circumstances: (1) during any fiscal quarter commencing after March 31, 2016 (and only during such fiscal quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2021 notes on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per one thousand U.S. dollar principal amount of 2021 notes for each trading day of such measurement period was less than 98% of the product of the last reported sale price of the company’s Common Shares and the applicable conversion rate for the 2021 notes on each such trading day; or (3) upon the occurrence of specified corporate events described in the Indenture. Holders of the 2021 notes will have the right to require the company to repurchase all or some of their 2021 notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The initial conversion rate is 60.0492 common shares per $1,000 principal amount of 2021 notes (equivalent to an initial conversion price of approximately $16.65 per common share). The company evaluated the terms of the conversion features under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the features did require separate accounting as a derivative. This derivative was capitalized on the balance sheet as a long-term liability and will be adjusted to reflect fair value each quarter. The fair value of the convertible debt conversion liability at issuance was $34,480,000 . The fair value of the convertible debt conversion liability at June 30, 2018 was $61,136,000 compared to $53,154,000 as of December 31, 2017 . The company recognized loss es of $5,609,000 and $7,982,000 for the three and six months ended June 30, 2018 , respectively, compared to loss es of $8,250,000 and $1,519,000 for the three and six months ended June 30, 2017 , respectively, related to the convertible debt conversion liability. In connection with the offering of the 2021 notes, the company entered into privately negotiated convertible note hedge transactions with two financial institutions (the “option counterparties”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the 2021 notes, and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the 2021 notes. The company evaluated the note hedges under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the note hedges should be accounted for as derivatives. These derivatives were capitalized on the balance sheet as long-term assets and will be adjusted to reflect fair value each quarter. The fair value of the convertible note hedge assets at issuance was $27,975,000 . The fair value of the convertible note hedge assets at June 30, 2018 was $54,858,000 compared to $46,915,000 as of December 31, 2017 . The company recognized gain s of $5,896,000 and $7,943,000 for the three and six months ended June 30, 2018 , respectively, compared gain s of $7,789,000 and $1,959,000 for the three and six months ended June 30, 2017 , respectively, related to the convertible note hedge asset. The company entered into separate, privately negotiated warrant transactions with the option counterparties at a higher strike price relating to the same number of the company’s common shares, subject to customary anti-dilution adjustments, pursuant to which the company sold warrants to the option counterparties. The warrants could have a dilutive effect on the company’s outstanding common shares and the company’s earnings per share to the extent that the price of the company’s common shares exceeds the strike price of those warrants. The initial strike price of the warrants is $22.4175 per share and is subject to certain adjustments under the terms of the warrant transactions. The company evaluated the warrants under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the warrants meet the definition of a derivative, are indexed to the company's own stock and should be classified in shareholder's equity. The amount paid for the warrants and capitalized in shareholder's equity was $12,376,000 . The net proceeds from the offering of the 2021 notes were approximately $144,034,000 , after deducting fees and offering expenses of $5,966,000 , which were paid in 2016. These debt issuance costs were capitalized and are being amortized as interest expense through February 2021. In accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , these debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Approximately $5,000,000 of the net proceeds from the offering were used to repurchase the company’s common shares from purchasers of 2021 notes in the offering in privately negotiated transactions. A portion of the net proceeds from the offering were used to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to the company from the warrant transactions), which net cost was $15,600,000 . The liability components of the 2021 notes consist of the following (in thousands): June 30, 2018 December 31, 2017 Principal amount of liability component $ 150,000 $ 150,000 Unamortized discount (20,637 ) (23,900 ) Debt fees (3,146 ) (3,745 ) Net carrying amount of liability component $ 126,217 $ 122,355 The unamortized discount of $20,637,000 is to be amortized through February 2021. The effective interest rate on the liability component was 11.1% . Non-cash interest expense of $1,661,000 and $3,263,000 was recognized for the three and six months ended June 30, 2018 , respectively, compared to $1,490,000 and $2,928,000 for the three and six months ended June 30, 2017 , respectively. Actual interest expense accrued was $1,875,000 and $3,750,000 for the three and six months ended June 30, 2018 , respectively, compared to $1,875,000 and $3,750,000 for the three and six months ended June 30, 2017 , respectively, based on the stated coupon rate of 5.0% . The 2021 notes were not convertible as of June 30, 2018 nor was the applicable conversion threshold met. Convertible senior notes due 2022 In the second quarter of 2017, the company issued $120,000,000 aggregate principal amount of 4.50% Convertible Senior Notes due 2022 (the “2022 notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2022 notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2017 . The 2022 notes will mature on June 1, 2022 , unless repurchased or converted in accordance with their terms prior to such date. Prior to December 1, 2021 , the 2022 notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Unless and until the company obtains shareholder approval of the issuance of the company's common shares upon conversion of the 2022 notes under applicable New York Stock Exchange rules, the 2022 notes will be convertible, subject to certain conditions, into only cash. If the company obtains such shareholder approval, the 2022 notes may be settled in cash, the company’s common shares or a combination of cash and the company’s common shares, at the company’s election. Holders of the 2022 notes may convert their 2022 notes at their option at any time prior to the close of business on the business day immediately preceding December 1, 2021 only under the following circumstances: (1) during any fiscal quarter commencing after September 30, 2017 (and only during such fiscal quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2022 notes on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per one thousand U.S. dollar principal amount of 2022 notes for each trading day of such measurement period was less than 98% of the product of the last reported sale price of the company’s Common Shares and the applicable conversion rate for the 2022 notes on each such trading day; or (3) upon the occurrence of specified corporate events described in the Indenture. Holders of the 2022 notes will have the right to require the company to repurchase all or some of their 2022 notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The initial conversion rate is 61.6095 common shares per $1,000 principal amount of 2022 notes (equivalent to an initial conversion price of approximately $16.23 per common share). The company evaluated the terms of the conversion features under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the features did require separate accounting as a derivative. This derivative was capitalized on the balance sheet as a long-term liability and will be adjusted to reflect fair value each quarter. The fair value of the convertible debt conversion liability at issuance was $28,859,000 . The fair value of the convertible debt conversion liability at June 30, 2018 was $61,061,000 compared to $53,414,000 at December 31, 2017 . The company recognized loss es of $5,837,000 and $7,647,000 for the three and six months ended June 30, 2018 , respectively, compared to a loss of $4,392,000 for both the three and six months ended June 30, 2017 , respectively, related to the convertible debt conversion liability. In connection with the offering of the 2022 notes, the company entered into privately negotiated convertible note hedge transactions with one financial institution (the “option counterparty”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the 2022 notes, and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the 2022 notes. The company evaluated the note hedges under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the note hedges should be accounted for as derivatives. These derivatives were capitalized on the balance sheet as long-term assets and will be adjusted to reflect fair value each quarter. The fair value of the convertible note hedge assets at issuance was $24,780,000 . The fair value of the convertible note hedge assets at June 30, 2018 was $54,490,000 compared to $46,680,000 at December 31, 2017. The company recognized gain s of $5,571,000 and $7,810,000 for the three and six months ended June 30, 2018 , respectively, compared to a gain of $3,802,000 for both the three and six months ended June 30, 2017 , respectively, related to the convertible note hedge asset. The company entered into separate, privately negotiated warrant transactions with the option counterparty at a higher strike price relating to the same number of the company’s common shares, subject to customary anti-dilution adjustments, pursuant to which the company sold warrants to the option counterparties. The warrants could have a dilutive effect on the company’s outstanding common shares and the company’s earnings per share to the extent that the price of the company’s common shares exceeds the strike price of those warrants. The initial strike price of the warrants is $21.4375 per share and is subject to certain adjustments under the terms of the warrant transactions. The company evaluated the warrants under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the warrants meet the definition of a derivative, are indexed to the company's own stock and should be classified in shareholder's equity. The amount paid for the warrants and capitalized in shareholder's equity was $14,100,000 . The net proceeds from the offering of the 2022 notes were approximately $115,289,000 , after deducting fees and offering expenses of $4,711,000 , which were paid in 2017. These debt issuance costs were capitalized and are being amortized as interest expense through June 2022. As of June 30, 2018 , all of the debt issuance costs were paid. In accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , these debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. A portion of the net proceeds from the offering were used to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to the company from the warrant transactions), which net cost was $10,680,000 . The liability components of the 2022 notes consist of the following (in thousands): June 30, 2018 December 31, 2017 Principal amount of liability component $ 120,000 $ 120,000 Unamortized discount (23,991 ) (26,378 ) Debt fees (3,500 ) (3,947 ) Net carrying amount of liability component $ 92,509 $ 89,675 The unamortized discount of $23,991,000 is to be amortized through June 2022. The effective interest rate on the liability component was 10.9% . Non-cash interest expense of $1,203,000 and $2,387,000 was recognized for the three and six months ended June 30, 2018 , respectively, compared to $212,000 for both the three and six months ended June 30, 2017 , respectively. Actual interest expense accrued was $1,350,000 and $2,700,000 for the three and six months ended June 30, 2018 , respectively, compared to $255,000 for both the three and six months ended June 30, 2017 , respectively, based on the stated coupon rate of 4.5% . The 2022 notes were not convertible as of June 30, 2018 nor was the applicable conversion threshold met. |
Other Long-Term Obligations
Other Long-Term Obligations | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Obligations | Other long-term obligations consist of the following (in thousands): June 30, 2018 December 31, 2017 Convertible 2021 debt conversion liability $ 61,136 $ 53,154 Convertible 2022 debt conversion liability 61,061 53,414 Deferred income taxes 28,398 28,890 Product liability 14,189 13,575 Pension 10,347 10,340 Deferred gain on sale leaseback 6,273 6,419 Deferred compensation 5,610 5,592 Supplemental Executive Retirement Plan liability 5,556 5,636 Uncertain tax obligation including interest 2,905 2,738 Other 3,169 3,512 Other Long-Term Obligations $ 198,644 $ 183,270 The convertible debt conversion liabilities amounts included in the above table represent the fair values of the conversion liabilities as of June 30, 2018 and December 31, 2017. See "Long-Term Debt" in the notes to the Consolidated Financial Statements included elsewhere in this report for more detail. On April 23, 2015 , the company entered into a real estate sale leaseback transaction which resulted in the company recording an initial deferred gain of $7,414,000 , the majority of which is included in Other Long-Term Obligations and will be recognized over the 20-year life of the leases. The gains realized were $71,000 and 141,000 for the three and six months ended June 30, 2018 , respectively, compared to 68,000 and 136,000 for the three and six months ended June 30, 2017, respectively. |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue [Abstract] | |
Revenue Recognition, Deferred Revenue [Policy Text Block] | The company has two revenue streams: product and services. Services include repair, refurbishment, preventive maintenance and rental of product. Services for the NA/HME and IPG segments include repair of product. Services for the Europe segment include repair, refurbishment and preventive maintenance services. Services for the Asia Pacific segment include rental and repair of product. The following tables disaggregate the company’s revenues by major source and by reportable segment for the three and six months ended June 30, 2018 and June 30, 2017 (in thousands): Three Months Ended June 30, 2018 Product Service Total Europe $ 135,408 $ 3,488 $ 138,896 NA/HME 79,667 200 79,867 IPG 13,267 437 13,704 Asia/Pacific 12,494 1,191 13,685 Total $ 240,836 $ 5,316 $ 246,152 % Split 98% 2% 100% Six Months Ended June 30, 2018 Product Service Total Europe $ 263,410 $ 6,800 $ 270,210 NA/HME 159,238 411 159,649 IPG 27,775 816 28,591 Asia/Pacific 22,439 2,323 24,762 Total $ 472,862 $ 10,350 $ 483,212 % Split 98% 2% 100% Three Months Ended June 30, 2017 Product Service Total Europe $ 125,289 $ 3,196 $ 128,485 NA/HME 77,094 595 77,689 IPG 15,119 201 15,320 Asia/Pacific 10,875 1,148 12,023 Total $ 228,377 $ 5,140 $ 233,517 % Split 98% 2% 100% Six Months Ended June 30, 2017 Product Service Total Europe $ 242,079 $ 5,914 $ 247,993 NA/HME 160,730 1,221 161,951 IPG 31,357 336 31,693 Asia/Pacific 21,367 2,236 23,603 Total $ 455,533 $ 9,707 $ 465,240 % Split 98% 2% 100% The company's revenues are principally related to the sale of products, approximately 98% , with the remaining 2% related to services including repair, refurbishment, preventive maintenance and rental of product. While the company has a significant amount of contract types, the sales split by contract type is estimated as follows: general terms and conditions ( 35% ), large national customers ( 25% ), governments, principally pursuant to tender contracts ( 15% ) and other customers including buying groups and independent customers ( 25% ). All product and substantially all service revenues are recognized at a point in time. The remaining service revenue, recognized over time, are reflected in the Europe segment and include multiple performance obligations. For such contracts, the company allocates revenue to each performance obligation based on its relative standalone selling price. The company generally determines the standalone selling price based on the expected cost-plus margin methodology. Revenue is recognized when obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the company’s products and services. Revenue is measured as the amount of consideration expected to be received in exchange for transferring product or providing services. The amount of consideration received and revenue recognized by the company can vary as a result of variable consideration terms included in the contracts related to customer rebates, cash discounts and return policies. Customer rebates and cash discounts are estimated based on the most likely amount principle and these estimates are based on historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience. The company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. The company generally does not expect that there will be significant changes to its estimates of variable consideration (see “Receivables” and "Accrued Expenses" in the Notes to the Consolidated Financial Statements include elsewhere in this report for more detail). Depending on the terms of the contract, the company may defer the recognition of a portion of the revenue at the end of a reporting period to align with transfer of control of the company’s products to the customer. In addition, to the extent performance obligations are satisfied over time, the company defers revenue recognition until the performance obligations are satisfied. As of June 30, 2018 and December 31, 2017 , the company had deferred revenue of $3,092,000 and $2,770,000 , respectively, related to outstanding performance obligations. |
Equity Compensation
Equity Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shareholders' Equity Transactions | Equity Compensation The company’s Common Shares have a $.25 stated value. The Common Shares and the Class B Common Shares generally have identical rights, terms and conditions and vote together as a single class on most issues, except that the Class B Common Shares have ten votes per share, carry a 10% lower cash dividend rate and, in general, can only be transferred to family members or for estate planning purposes. Holders of Class B Common Shares are entitled to convert their shares into Common Shares at any time on a share-for-share basis. When Class B Common Shares are transferred out of a familial relationship, they automatically convert to Class Common Shares. As of June 30, 2018 , 6,357 Class B Common Shares remained outstanding. Conversion of Class B Common Shares have substantially diminished the significance of the company’s dual class voting structure. As of June 30, 2018 , the holders of the Common Shares represented approximately 99.9% of the company’s total outstanding voting power. Equity Compensation Plan On May 17, 2018 , the shareholders of the company approved the Invacare Corporation 2018 Equity Compensation Plan (the “2018 Plan”), which was adopted on March 27, 2018 by the company's Board of Directors (the “Board”). The company’s Board adopted the 2018 Plan in order to authorize additional Common Shares for grant as equity compensation, and to reflect changes to Section 162(m) of the Internal Revenue Code (the “Code”) resulting from the U.S. Tax Cuts and Jobs Act of 2017. Following shareholder approval of the 2018 Plan, all of the Common Shares then-remaining available for issuance under the Invacare Corporation 2013 Equity Compensation Plan (the “2013 Plan”) and all of the Common Shares that were forfeited or remained unpurchased or undistributed upon termination or expiration of awards under the 2013 Plan and under the Invacare Corporation 2003 Performance Plan (the “2003 Plan”), become available for issuance under the 2018 Plan. Awards granted previously under the 2013 Plan and 2003 Plan will remain in effect under their original terms. The 2018 Plan uses a fungible share-counting method, under which each Common Share underlying an award of stock options or stock appreciation rights ("SAR") will count against the number of total shares available under the 2018 Plan as one share; and each Common Share underlying any award other than a stock option or a SAR will count against the number of total shares available under the 2018 Plan as two shares. Shares underlying awards made under the 2003 Plan or 2013 Plan that are forfeited or remain unpurchased or undistributed upon termination or expiration of the awards will become available under the 2018 Plan for use in future awards. Any Common Shares that are added back to the 2018 Plan as the result of forfeiture, termination or expiration of an award granted under the 2018 Plan or the 2013 Plan will be added back in the same manner such shares were originally counted against the total number of shares available under the 2018 Plan or 2013 Plan, as applicable. Each Common Share that is added back to the 2018 Plan due to a forfeiture, termination or expiration of an award granted under the 2003 Plan will be added back as one Common Share. The Compensation and Management Development Committee of the Board (the “Compensation Committee”), in its discretion, may grant an award under the 2018 Plan to any director or employee of the company or an affiliate. As of June 30, 2018 , 4,014,199 Common Shares were available for future issuance under the 2018 Plan in connection with the following types of awards with respect to the company's Common Shares: incentive stock options, nonqualified stock options, SARs, restricted stock, restricted stock units, unrestricted stock and performance shares. The Compensation Committee also may grant performance units that are payable in cash. The Compensation Committee has the authority to determine which participants will receive awards, the amount of the awards and the other terms and conditions of the awards. The 2018 Plan provides that shares granted come from the company's authorized but unissued Common Shares or treasury shares. In addition, the company's stock-based compensation plans allow employee participants to exchange shares for minimum withholding taxes, which results in the company acquiring treasury shares. The amounts of equity-based compensation expense recognized as part of SG&A expenses were as follows (in thousands): For the Six Months Ended June 30, 2018 2017 Restricted stock / units $ 2,940 $ 3,262 Performance shares / units (27 ) 905 Non-qualified and performance stock options 30 479 Total stock-based compensation expense $ 2,943 $ 4,646 As of June 30, 2018 , unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2018 Plan and previous plans, which is related to non-vested options and shares, was as follows (in thousands): June 30, 2018 Restricted stock and restricted stock units $ 9,899 Performance shares and performance share units 10,890 Non-qualified and performance stock options 2,472 Total unrecognized stock-based compensation expense $ 23,261 Total unrecognized compensation cost will be adjusted for future changes in actual and estimated forfeitures and for updated vesting assumptions for the performance share awards (see "Stock Options" and "Performance Shares and Performance Share Units" below). No tax benefits for share-based compensation were realized during the three or six months ended June 30, 2018 and 2017 due to a valuation allowance against deferred tax assets. Stock Options Generally, non-qualified stock option awards have a term of ten years and were granted with an exercise price per share equal to the fair market value of one of the company’s Common Shares on the date of grant. Stock option awards granted in 2017 were performance-based awards which will only become exercisable if the performance goals established by the Compensation Committee are achieved over a 3-year period ending in 2019 and subject to the Compensation Committee's exercise of negative discretion to reduce the number of options vested based on the progress towards the company's transformation. The company expects the compensation expense to be recognized over a weighted-average period of approximately two years . The following table summarizes information about stock option activity for the six months ended June 30, 2018 : June 30, 2018 Weighted Average Exercise Price Options outstanding at January 1, 2018 2,631,569 $ 19.44 Granted — — Exercised (183,349 ) 14.28 Canceled (155,200 ) 23.49 Options outstanding at June 30, 2018 2,293,020 $ 19.58 Options exercise price range at June 30, 2018 $ 12.15 to $ 33.36 Options exercisable at June 30, 2018 1,693,244 Shares available for grant at June 30, 2018* 4,014,199 ________ * Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively. The following table summarizes information about stock options outstanding at June 30, 2018 : Options Outstanding Options Exercisable Exercise Prices Number Outstanding at June 30, 2018 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at June 30, 2018 Weighted Average Exercise Price $ 12.15 – $20.00 887,935 7.6 $ 12.82 288,159 $ 14.23 $ 20.01 – $25.00 726,751 2.0 22.20 726,751 22.20 $ 25.01 – $30.00 673,838 1.2 25.56 673,838 25.56 $ 30.01 – $33.36 4,496 2.9 33.36 4,496 33.36 Total 2,293,020 3.8 $ 19.58 1,693,244 $ 22.21 The 2018 Plan provides for a one-year minimum vesting period for stock options and, generally, options must be exercised within ten years from the date granted. No stock options were issued in 2018 and those issued in 2017 were performance-based and may vest after the conclusion of the three-year performance period ending December 31, 2019 based on achievement of performance goals established by the Compensation Committee and subject to the Compensation Committee's exercise of negative discretion to reduce the number of options vested based on the progress towards the company's transformation. All other outstanding stock options were issued in 2014 or prior years and were not performance-based. For the stock options issued in 2014 and prior, 25% of such options vested one year following the issuance and provided a four -year vesting period whereby options vest in 25% installments in each year. Options granted with graded vesting were accounted for as single options. The fair value of options granted is estimated on the date of grant using a Black-Scholes option-pricing model. The calculated fair value of the 2017 performance option awards was $5.38 per option based on the following assumptions: Expected dividend yield 0.4 % Expected stock price volatility 39.1 % Risk-free interest rate 2.31 % Expected life in years 7.8 Expected dividend yield was based on historical dividends. Expected stock price volatility percentage was calculated at the date of grant based on historical stock prices for a period commensurate with the expected life of the option. The assumed expected life was based on the company's historical analysis of option history. Restricted Stock and Restricted Stock Units The following table summarizes information about restricted shares and restricted share units (primarily for non-U.S. recipients): June 30, 2018 Weighted Average Fair Value Stock / Units unvested at January 1, 2018 776,520 $ 13.75 Granted 367,327 17.51 Vested (366,794 ) 15.00 Canceled (45,820 ) 13.11 Stock / Units unvested at June 30, 2018 731,233 $ 15.06 The restricted stock awards generally vest ratably over the three years after the award date. Unearned restricted stock compensation, determined as the market value of the shares at the date of grant, is being amortized on a straight-line basis over the vesting period. Performance Shares and Performance Share Units The following table summarizes information about performance shares and performance share units (for non-U.S. recipients): June 30, 2018 Weighted Average Fair Value Shares / Units unvested at January 1, 2018 457,879 $ 12.33 Granted 205,164 17.48 Vested — — Canceled (2,088 ) 12.82 Shares / Units unvested at June 30, 2018 660,955 $ 13.93 During the six months ended June 30, 2018 , performance shares and performance share units (for non-U.S. recipients) were granted as performance awards with a three -year performance period with payouts based on achievement of certain performance goals. The awards are classified as equity awards as they will be settled in Common Shares upon vesting. The number of shares earned will be determined at the end of the three-year performance period based on achievement of performance criteria for January 1, 2018 through December 31, 2020 established by the Compensation Committee at the time of grant. Recipients will be entitled to receive a number of Common Shares equal to the number of performance shares that vest based upon the levels of achievement which may range between 0% and 150% of the target number of shares with the target being 100% of the initial grant. The fair value of the performance awards is based on the stock price on the date of grant discounted for the estimated value of dividends foregone as the awards are not eligible for dividends except to the extent vested. The company assesses the probability that the performance targets will be met with expense recognized whenever it is probable that at least the minimum performance criteria will be achieved. Depending upon the company's assessment of the probability of achievement of the goals, the company may not recognize any expense associated with performance awards in a given period, may reverse prior expense recorded or record additional expense to make up for expense not recorded in a prior period. Performance award compensation expense is generally expected to be recognized over three years. Expense is being recognized for the 2016, 2017 and 2018 awards as it is considered probable that the performance goals for those awards will be met. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) by Component | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component | Accumulated Other Comprehensive Income (Loss) by Component Changes in accumulated other comprehensive income ("OCI") for the three and six months ended June 30, 2018 and June 30, 2017 , respectively, were as follows (in thousands): Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total March 31, 2018 $ 59,085 $ (1,505 ) $ (7,699 ) $ (1,379 ) $ 48,502 OCI before reclassifications (25,407 ) 1,969 291 1,128 (22,019 ) Amount reclassified from accumulated OCI — — (1 ) 577 576 Net current-period OCI (25,407 ) 1,969 290 1,705 (21,443 ) June 30, 2018 $ 33,678 $ 464 $ (7,409 ) $ 326 $ 27,059 December 31, 2017 $ 50,376 $ (4,612 ) $ (7,652 ) $ (1,242 ) $ 36,870 OCI before reclassifications (16,698 ) 5,076 373 743 (10,506 ) Amount reclassified from accumulated OCI — — (130 ) 825 695 Net current-period OCI (16,698 ) 5,076 243 1,568 (9,811 ) June 30, 2018 $ 33,678 $ 464 $ (7,409 ) $ 326 $ 27,059 March 31, 2017 $ (28,352 ) $ 20,474 $ (11,543 ) $ 1,205 $ (18,216 ) OCI before reclassifications 37,163 (10,852 ) (480 ) (1,335 ) 24,496 Amount reclassified from accumulated OCI — — 54 (301 ) (247 ) Net current-period OCI 37,163 (10,852 ) (426 ) (1,636 ) 24,249 June 30, 2017 $ 8,811 $ 9,622 $ (11,969 ) $ (431 ) $ 6,033 December 31, 2016 $ (26,199 ) $ 17,372 $ (11,248 ) $ 740 $ (19,335 ) OCI before reclassifications 35,010 (7,750 ) (985 ) (571 ) 25,704 Amount reclassified from accumulated OCI — — 264 (600 ) (336 ) Net current-period OCI 35,010 (7,750 ) (721 ) (1,171 ) 25,368 June 30, 2017 $ 8,811 $ 9,622 $ (11,969 ) $ (431 ) $ 6,033 Reclassifications out of accumulated OCI for the three and six months ended June 30, 2018 and June 30, 2017 were as follows (in thousands): Amount reclassified from OCI Affected line item in the Statement of Comprehensive (Income) Loss For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Defined Benefit Plans Service and interest costs $ (1 ) $ 54 $ (130 ) $ 264 Selling, General and Administrative Tax — — — — Income Taxes Total after tax $ (1 ) $ 54 $ (130 ) $ 264 Derivatives Foreign currency forward contracts hedging sales $ 209 $ 166 $ 234 $ 234 Net Sales Foreign currency forward contracts hedging purchases 429 (481 ) 680 (872 ) Cost of Products Sold Total loss (income) before tax 638 (315 ) 914 (638 ) Tax (61 ) 14 (89 ) 38 Income Taxes Total after tax $ 577 $ (301 ) $ 825 $ (600 ) |
Charges Related To Restructurin
Charges Related To Restructuring Activities | 6 Months Ended |
Jun. 30, 2018 | |
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 the NA/HME and Asia/Pacific segments. In addition, as a result of the company's transformation strategy, additional restructuring actions were implemented in 2017 and continued in 2018. The company expects any near-term cost savings from restructuring will be offset by other costs because of pressures on the business. For the six months ended June 30, 2018 , charges totaled $745,000 which were related to NA/HME ( $86,000 ), Europe ( $401,000 ) and Asia/Pacific ( $258,000 ). In NA/HME, costs were incurred related to severance ( $124,000 ) and contract termination cost reversals ( $135,000 ). The European and Asia/Pacific charges were for severance costs. Payments for the six months ended June 30, 2018 were $3,474,000 and the cash payments were funded with company's cash on hand. Most of the 2018 charges are expected to be paid out within twelve months. For the six months ended June 30, 2017 , charges totaled $8,270,000 which were related to NA/HME ( $6,170,000 ), Europe segment ( $1,204,000 ) and Asia/Pacific ( $896,000 ). In NA/HME, costs were incurred related to severance ( $5,522,000 ) and contract termination costs ( $648,000 ). The NA/HME charges include the impact of the company's closure of its Suzhou, China, manufacturing facility. The European and Asia/Pacific charges were for severance costs. Payments for the six months ended June 30, 2017 were $4,800,000 and the cash payments were funded with company's cash on hand. Most of the 2017 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. However, in general, these savings have been more than offset by the general business decline, higher regulatory and compliance costs related to quality system improvements, and more recently, higher interest expense. To date, the company's liquidity has not been materially impacted. Please refer to Charges Related to Restructuring Activities of company's Annual Report on Form 10-K for the period ending December 31, 2017 for disclosure of restructuring activity prior to 2018. A progression by reporting segment of the accruals recorded as a result of the restructuring for the six months ended June 30, 2018 is as follows (in thousands): Severance Contract Terminations Total December 31, 2017 Balances NA/HME $ 2,439 $ 167 $ 2,606 Europe 249 134 383 Other 1,016 — 1,016 Total 3,704 301 4,005 Charges NA/HME 97 — 97 Europe 293 — 293 Asia/Pacific 11 — 11 Total 401 — 401 Payments NA/HME (1,697 ) (57 ) (1,754 ) Europe (338 ) (97 ) (435 ) Asia/Pacific (11 ) — (11 ) Other (260 ) — (260 ) Total (2,306 ) (154 ) (2,460 ) March 31, 2018 Balances NA/HME 839 110 949 Europe 204 37 241 Other 756 — 756 Total 1,799 147 1,946 Charges (Reversals) NA/HME 124 (135 ) (11 ) Europe 108 — 108 Asia/Pacific 247 — 247 Total 479 (135 ) 344 Payments NA/HME (601 ) 66 (535 ) Europe (195 ) (37 ) (232 ) Asia/Pacific (247 ) — (247 ) Total (1,043 ) 29 (1,014 ) June 30, 2018 Balances NA/HME 362 41 403 Europe 117 — 117 Other 756 — 756 Total $ 1,235 $ 41 $ 1,276 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The company had an effective tax rate of 21.9% and 21.0% on losses before tax from continuing operations for the three and six months ended June 30, 2018 , respectively, compared to an expected benefit of 21% on the continuing operations pre-tax loss for each period. The company had an effective tax rate of 10.2% and 13.4% on losses before tax from continuing operations for the three and six months ended June 30, 2017 , respectively, compared to an expected benefit at the U.S. statutory rate of 35% on the continuing operations pre-tax loss for each period. The company's effective tax rate for each of the three and six months ended June 30, 2018 and June 30, 2017 were unfavorable as compared to the U.S. federal statutory rate expected benefit, principally due to the negative impact of the company not being able to record tax benefits related to the significant losses in countries which had tax valuation allowances. The effective tax rate was increased for the three and six months ended June 30, 2018 and decreased for the three months ended June 30, 2017 by certain taxes outside the United States, excluding countries with tax valuation allowances, that were at an effective rate higher than the U.S. statutory rate for the three and six months ended June 30, 2018 and lower than the U.S. statutory rate for the three months ended June 30, 2017 . The US Tax Cuts and Jobs Act of 2017 ("Tax Act") was enacted on December 22, 2017. The Tax Act subjects a US shareholder to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. In accordance with the SEC issued SAB 118, which provided guidance on accounting for the tax effects of the Tax Act, the company made certain provisional estimates at December 31, 2017 . The company determined that the provisional calculations will be finalized after the underlying timing differences and foreign earnings and profits are finalized with our 2017 federal tax return filing. Furthermore, the company is still analyzing certain aspects of the Tax Act and refining its calculations which could potentially affect the measurement of these balances or potentially give rise to new or additional deferred tax amounts. No adjustments were made to the company's provisional calculations during the quarter or six months ended June 30, 2018 . |
Net Earnings (Loss) Per Common
Net Earnings (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Common Share | Net Loss Per Common Share The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated. (In thousands except per share data) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Basic Average common shares outstanding 33,169 32,833 33,040 32,654 Net loss $ (16,543 ) $ (23,508 ) $ (30,651 ) $ (40,288 ) Net loss per common share $ (0.50 ) $ (0.72 ) $ (0.93 ) $ (1.23 ) Diluted Average common shares outstanding 33,169 32,833 33,040 32,654 Stock options and awards 827 360 827 293 Average common shares assuming dilution 33,996 33,193 33,867 32,947 Net loss $ (16,543 ) $ (23,508 ) $ (30,651 ) $ (40,288 ) Net loss per common share * $ (0.50 ) $ (0.72 ) $ (0.93 ) $ (1.23 ) ________ * Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss. At June 30, 2018 , 329,315 shares associated with stock options were excluded from the average common shares assuming dilution for both the three and six months ended June 30, 2018 as they were anti-dilutive. At June 30, 2018 , the majority of the anti-dilutive shares were granted at an exercise price of $25.79 , which was higher than the average fair market value price of $18.09 and $17.87 for the three and six months ended June 30, 2018 , respectively. At June 30, 2017 , 1,353,144 and 1,629,336 shares associated with stock options were excluded from the average common shares assuming dilution for the three and six months ended June 30, 2017 , respectively, as they were anti-dilutive. At June 30, 2017 , the majority of the anti-dilutive shares were granted at an exercise price of $25.79 , which was higher than the average fair market value price of $13.14 and $12.57 for the three and six months ended June 30, 2017 , respectively. For both the three and months ended June 30, 2018 and June 30, 2017 , respectively, no shares were included in the common shares assuming dilution related to the company's issued warrants as the average market price of the company stock for these periods did not exceed the strike price of the warrants. |
Concentration Of Credit Risk
Concentration Of Credit Risk | 6 Months Ended |
Jun. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Of Credit Risk | Concentration of Credit Risk The company manufactures and distributes durable medical equipment to the home health care, retail and extended care markets. The company performs credit evaluations of its customers’ financial condition. The company utilizes De Lage Landen, Inc. (“DLL”), a third-party financing company, to provide lease financing to Invacare's U.S. customers. The DLL agreement provides for direct leasing between DLL and the Invacare customer. The company retains a recourse obligation of $2,088,000 at June 30, 2018 to DLL for events of default under the contracts, which total $16,281,000 at June 30, 2018 . Guarantees, ASC 460, requires the company to record a guarantee liability as it relates to the limited recourse obligation. The company's recourse is re-evaluated by DLL biannually, considers activity between the biannual dates and excludes any receivables purchased by the company from DLL. The company monitors the collections status of these contracts and has provided amounts for estimated losses in its allowances for doubtful accounts in accordance with Receivables, ASC 310-10-05-4 . Credit losses are provided for in the financial statements. Substantially all the company’s receivables are due from health care, medical equipment providers and long-term care facilities located throughout the United States, Australia, Canada, New Zealand and Europe. A significant portion of products sold to dealers, both foreign and domestic, is ultimately funded through government reimbursement programs such as Medicare and Medicaid. The company has also seen a significant shift in reimbursement to customers from managed care entities. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability. In addition, reimbursement guidelines in the home health care industry have a substantial impact on the nature and type of equipment an end user can obtain as well as the timing of reimbursement and, thus, affect the product mix, pricing and payment patterns of the company’s customers. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives ASC 815 requires companies to recognize all derivative instruments in the consolidated balance sheet as either assets or liabilities at fair value. The accounting for changes in fair value of a derivative is dependent upon whether or not the derivative has been designated and qualifies for hedge accounting treatment and the type of hedging relationship. For derivatives designated and qualifying as hedging instruments, the company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Cash Flow Hedging Strategy The company uses derivative instruments in an attempt to manage its exposure to transactional foreign currency exchange risk. Foreign forward exchange contracts are used to manage the price risk associated with forecasted sales denominated in foreign currencies and the price risk associated with forecasted purchases of inventory over the next twelve months. The company recognizes its derivative instruments as assets or liabilities in the consolidated balance sheet measured at fair value. A majority of the company’s derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the fair value of the hedged item, if any, is recognized in current earnings during the period of change. To protect against increases/decreases in forecasted foreign currency cash flows resulting from inventory purchases/sales over the next year, the company utilizes foreign currency forward contracts to hedge portions of its forecasted purchases/sales denominated in foreign currencies. The gains and losses are included in cost of products sold and selling, general and administrative expenses on the consolidated statement of comprehensive income (loss). If it is later determined that a hedged forecasted transaction is unlikely to occur, any prospective gains or losses on the forward contracts would be recognized in earnings. The company does not expect any material amount of hedge ineffectiveness related to forward contract cash flow hedges during the next twelve months. The company has historically not recognized any material amount of ineffectiveness related to forward contract cash flow hedges because the company generally limits its hedges to between 50% and 90% of total forecasted transactions for a given entity’s exposure to currency rate changes and the transactions hedged are recurring in nature. Furthermore, most of the hedged transactions are related to intercompany sales and purchases for which settlement occurs on a specific day each month. Forward contracts with a total notional amount in USD of $50,475,000 and $43,692,000 matured for the six months ended June 30, 2018 and June 30, 2017 , respectively. Outstanding foreign currency forward exchange contracts qualifying and designated for hedge accounting treatment were as follows (in thousands USD): June 30, 2018 December 31, 2017 Notional Amount Unrealized Net Gain (Loss) Notional Amount Unrealized Net Gain (Loss) USD / AUD $ 2,580 $ 161 $ 3,960 $ 44 USD / CAD 17,428 (80 ) 33,344 115 USD / CNY 2,016 21 4,027 61 USD / EUR 40,266 851 72,259 (558 ) USD / GBP 2,468 (10 ) 4,640 (124 ) USD / NZD 5,910 (105 ) 9,300 11 USD / SEK 1,052 122 — — USD / MXP 3,279 (12 ) 6,461 (158 ) EUR / GBP 16,722 (461 ) 32,248 (682 ) EUR / SEK 3,802 145 7,732 39 EUR / NOK 2,289 (59 ) 4,521 68 EUR / NZD 1,403 (10 ) 2,855 (8 ) DKK / SEK 3,013 (156 ) 6,453 (120 ) $ 102,228 $ 407 $ 187,800 $ (1,312 ) Derivatives Not Qualifying or Designated for Hedge Accounting Treatment The company utilizes foreign currency forward contracts that are not designated as hedges in accordance with ASC 815. These contracts are entered into to eliminate the risk associated with the settlement of short-term intercompany trading receivables and payables between Invacare Corporation and its foreign subsidiaries. The currency forward contracts are entered into at the same time as the intercompany receivables or payables are created so that upon settlement, the gain/loss on the settlement is offset by the gain/loss on the foreign currency forward contract. No material net gain or loss was realized by the company in 2018 or 2017 related to these contracts and the associated short-term intercompany trading receivables and payables. Foreign currency forward exchange contracts not qualifying or designated for hedge accounting treatment, as well as ineffective hedges, entered into in 2018 and 2017 , respectively, and outstanding were as follows (in thousands USD): June 30, 2018 December 31, 2017 Notional Amount Gain (Loss) Notional Amount Gain (Loss) AUD / USD $ 2,818 $ 69 $ 2,750 $ (77 ) EUR / USD 7,695 472 — — NZD / USD — — 3,300 (53 ) EUR / AUD 2,894 (87 ) 4,000 43 AUD / NZD 2,439 (26 ) 3,600 9 EUR / NOK 36 (1 ) — — $ 15,882 $ 427 $ 13,650 $ (78 ) The fair values of the company’s derivative instruments were as follows (in thousands): June 30, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments under ASC 815 Foreign currency forward exchange contracts $ 1,596 $ 1,189 $ 678 $ 1,990 Derivatives not designated as hedging instruments under ASC 815 Foreign currency forward exchange contracts 540 113 52 130 Total derivatives $ 2,136 $ 1,302 $ 730 $ 2,120 The fair values of the company’s foreign currency forward exchange contract assets and liabilities are included in Other Current Assets and Accrued Expenses, respectively in the Consolidated Balance Sheets. The effect of derivative instruments on Accumulated Other Comprehensive Income (OCI) and the Statement of Comprehensive Income (Loss) and was as follows (in thousands): Derivatives in ASC 815 cash flow hedge relationships Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three months ended June 30, 2018 Foreign currency forward exchange contracts $ 1,128 $ (577 ) $ — Six months ended June 30, 2018 Foreign currency forward exchange contracts $ 743 $ (825 ) $ (1 ) Three months ended June 30, 2017 Foreign currency forward exchange contracts $ (1,335 ) $ 301 $ — Six months ended June 30, 2017 Foreign currency forward exchange contracts $ (571 ) $ 600 $ — Derivatives not designated as hedging instruments under ASC 815 Amount of Gain (Loss) Recognized in Income on Derivatives Three months ended June 30, 2018 Foreign currency forward exchange contracts $ 197 Six months ended June 30, 2018 Foreign currency forward exchange contracts $ 427 Three months ended June 30, 2017 Foreign currency forward exchange contracts $ 52 Six months ended June 30, 2017 Foreign currency forward exchange contracts $ 117 The gains or losses recognized as the result of the settlement of cash flow hedge foreign currency forward contracts are recognized in net sales for hedges of inventory sales and in cost of product sold for hedges of inventory purchases. For the three and six months ended June 30, 2018 , net sales were decreased by $209,000 and $234,000 while cost of product sold was increased by $429,000 and $680,000 for net pre-tax realized loss es of $638,000 and $914,000 , respectively. For the three and six months ended June 30, 2017 , net sales were decreased by $166,000 and $234,000 while cost of product sold was decreased by $481,000 and $872,000 for net realized pre-tax gain s of $315,000 and $638,000 , respectively. Gains of $197,000 and $427,000 were recognized in selling, general and administrative (SG&A) expenses for the three and six months ended June 30, 2018 , respectively, compared to gain s of $52,000 and $117,000 for the three and six months ended June 30, 2017 , respectively, related to forward contracts not designated as hedging instruments. The forward contracts were entered into to offset gains/losses that were also recorded in SG&A expenses on intercompany trade receivables or payables. The gains/losses on the non-designated hedging instruments were substantially offset by gains/losses on intercompany trade payables. The company's derivative agreements provide the counterparties with a right of set off in the event of a default. The right of set off would enable the counterparty to offset any net payment due by the counterparty to the company under the applicable agreement by any amount due by the company to the counterparty under any other agreement. For example, the terms of the agreement would permit a counterparty to a derivative contract that is also a lender under the company's Credit Agreement to reduce any derivative settlement amounts owed to the company under the derivative contract by any amounts owed to the counterparty by the company under the Credit Agreement. In addition, the agreements contain cross-default provisions that could trigger a default by the company under the agreement in the event of a default by the company under another agreement with the same counterparty. The company does not present any derivatives on a net basis in its financial statements, other than the conversion and bond hedge derivatives which are presented net on the Condensed Consolidated Statement of Comprehensive Income (Loss), and all derivative balances presented are subject to provisions that are similar to master netting agreements. During the first quarter of 2016, the company entered into privately negotiated convertible 2021 note hedges and 2021 warrants in connection with its sale of $150,000,000 in aggregate principal amount of the company’s 5.00% Convertible Senior Notes due 2021. The 2021 warrants, which increased paid in capital by $12,376,000 , are clearly and closely related to the convertible 2021 notes and thus classified as equity. The 2021 note hedge asset and 2021 convertible debt conversion liability were recorded, based on initial fair values, as an asset of $27,975,000 and a liability of $34,480,000 , respectively, and these fair values are updated quarterly with the offset to the income statement. During the second quarter of 2017, the company entered into privately negotiated convertible 2022 note hedges and warrants in connection with its sale of $120,000,000 in aggregate principal amount of the company’s 4.50% Convertible Senior Notes due 2022. The 2022 warrants, which increased paid in capital by $14,100,000 , are clearly and closely related to the convertible 2022 notes and thus classified as equity. The 2022 note hedge assets and 2022 convertible debt conversion liability were recorded, based on initial fair values, as an asset of $24,780,000 and a liability of $28,859,000 , respectively, and these fair values are updated quarterly with the offset to the income statement. See "Long-Term Debt" in the notes to the Consolidated Financial Statements included elsewhere in this report for more detail. The fair values of the outstanding convertible note derivatives as of June 30, 2018 and their effect on the Statement of Comprehensive Income (Loss) were as follows (in thousands): Gain (Loss) Gain (Loss) Fair Value Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Convertible 2021 debt conversion long-term liability $ (61,136 ) $ (5,609 ) $ (8,250 ) $ (7,982 ) $ (1,519 ) Convertible 2022 debt conversion long-term liability (61,061 ) (5,837 ) (4,392 ) (7,647 ) (4,392 ) Convertible 2021 note hedge long-term asset 54,858 5,896 7,789 7,943 1,959 Convertible 2022 note hedge long-term asset 54,490 5,571 3,802 7,810 3,802 Net fair value and net gain (loss) on convertible debt derivatives $ (12,849 ) $ 21 $ (1,051 ) $ 124 $ (150 ) The 2021 and 2022 convertible debt conversion liability amounts and the 2021 and 2022 note hedge asset amounts are included in Other Long-Term Obligations and Other Long-Term Assets, respectively, in the company's Consolidated Balance Sheets. |
Fair Values
Fair Values | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Values Pursuant to ASC 820, the inputs used to derive the fair value of assets and liabilities are analyzed and assigned a level I, II or III priority, with level I being the highest and level III being the lowest in the hierarchy. Level I inputs are quoted prices in active markets for identical assets or liabilities. Level II inputs are quoted prices for similar assets or liabilities in active markets: quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level III inputs are based on valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands): Basis for Fair Value Measurements at Reporting Date Quoted Prices in Active Markets for Identical Assets / (Liabilities) Significant Other Observable Inputs Significant Other Unobservable Inputs Level I Level II Level III June 30, 2018 Forward exchange contracts—net — $ 834 — Convertible 2021 debt conversion liability — (61,136 ) — Convertible 2021 note hedge asset — 54,858 — Convertible 2022 debt conversion liability — (61,061 ) — Convertible 2022 note hedge asset — 54,490 — December 31, 2017 Forward exchange contracts—net — $ (1,390 ) — Convertible 2021 debt conversion liability — (53,154 ) — Convertible 2021 note hedge asset — 46,915 — Convertible 2022 debt conversion liability — (53,414 ) — Convertible 2022 note hedge asset — 46,680 — The carrying values and fair values of the company’s financial instruments are as follows (in thousands): June 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 122,398 $ 122,398 $ 176,528 $ 176,528 Other investments 90 90 103 103 Installment receivables, net of reserves 1,577 1,577 1,809 1,809 Long-term debt (including current maturities of long-term debt) * (249,002 ) (319,103 ) (243,445 ) (294,173 ) Convertible 2021 debt conversion liability in Other Long-Term Obligations (61,136 ) (61,136 ) (53,154 ) (53,154 ) Convertible 2021 note hedge in Other Long-Term Assets 54,858 54,858 46,915 46,915 Convertible 2022 debt conversion liability in Other Long-Term Obligations (61,061 ) (61,061 ) (53,414 ) (53,414 ) Convertible 2022 note hedge in Other Long-Term Assets 54,490 54,490 46,680 46,680 Forward contracts in Other Current Assets 2,136 2,136 730 730 Forward contracts in Accrued Expenses (1,302 ) (1,302 ) (2,120 ) (2,120 ) ________ * The company's long-term debt is shown net of discount and fees associated with the Convertible Senior Notes due 2021 and 2022 on the company's condensed consolidated balance sheet. Accordingly, the fair values of the Convertible Senior Notes due 2021 and 2022 are included in the long-term debt presented in this table is also shown net of the discount and fees. The company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions: Cash, cash equivalents: The carrying value reported in the balance sheet for cash, cash equivalents equals its fair value. Other investments: The company has made an investment in a limited partnership, which is accounted for using the cost method, adjusted for any estimated declines in value. The investment was acquired in private placement and there is no quoted market price or stated rate of return. The company does not have the ability to easily sell the investment. The company completes an evaluation of the residual value related to such investments in the fourth quarter each year. Installment receivables: The carrying value reported in the balance sheet for installment receivables approximates its fair value. The interest rates associated with these receivables have not varied significantly since inception. Management believes that after consideration of the credit risk, the net book value of the installment receivables approximates market value. Long-term debt: Fair value for the company’s convertible debt is based on quoted market-based estimates as of the end of the period, while the revolving credit facility fair value is based upon an estimate of the market for similar borrowing arrangements. The fair values are deemed to be categorized as Level 2 in the fair value hierarchy. Convertible debt derivatives: The fair values for the convertible debt conversion liability and note hedge derivatives are based on valuation models in which all the significant inputs are observable in active markets. Forward contracts: The company operates internationally, and as a result, is exposed to foreign currency fluctuations. Specifically, the exposure includes intercompany loans and third-party sales or payments. In an attempt to reduce this exposure, foreign currency forward contracts are utilized and accounted for as hedging instruments. The forward contracts are used to hedge the following currencies: AUD, CAD, CHF, CNY, DKK, EUR, GBP, MXP, NOK, NZD, SEK and USD. The company does not use derivative financial instruments for speculative purposes. Fair values for the company’s foreign exchange forward contracts are based on quoted market prices for contracts with similar maturities. The company’s forward contracts are included in Other Current Assets or Accrued Expenses in the Consolidated Balance Sheets. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The company operates in four primary business segments: NA/HME, IPG, Europe and Asia/Pacific. Both the NA/HME and IPG segments operate in the Americas. The NA/HME segment sells each of the three primary product categories, 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 categories similar to those of 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 impairments and gain on sale of business (as applicable). 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. (in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Revenues from external customers Europe $ 138,896 $ 128,485 $ 270,210 $ 247,993 NA/HME 79,867 77,689 159,649 161,951 IPG 13,704 15,320 28,591 31,693 Asia/Pacific 13,685 12,023 24,762 23,603 Consolidated $ 246,152 $ 233,517 $ 483,212 $ 465,240 Intersegment revenues Europe $ 4,877 $ 3,738 $ 8,734 $ 7,413 NA/HME 23,804 21,050 47,307 43,145 IPG 229 975 318 1,743 Asia/Pacific 5,254 3,896 10,914 7,756 Consolidated $ 34,164 $ 29,659 $ 67,273 $ 60,057 Restructuring charges before income taxes Europe $ 108 $ 514 $ 401 $ 1,204 NA/HME (11 ) 3,928 86 6,170 Asia/Pacific 247 545 258 896 Consolidated $ 344 $ 4,987 $ 745 $ 8,270 Operating income (loss) Europe $ 5,171 $ 7,077 $ 11,765 $ 12,177 NA/HME (8,420 ) (12,395 ) (16,558 ) (21,821 ) IPG 1,163 1,472 2,761 3,370 Asia/Pacific 1,570 (118 ) 2,542 (548 ) All Other (5,901 ) (6,735 ) (11,674 ) (11,245 ) Charge expense related to restructuring activities (344 ) (4,987 ) (745 ) (8,270 ) Consolidated operating loss (6,761 ) (15,686 ) (11,909 ) (26,337 ) Net gain (loss) on convertible debt derivatives 21 (1,051 ) 124 (150 ) Net Interest expense (6,828 ) (4,596 ) (13,541 ) (9,026 ) Loss before income taxes $ (13,568 ) $ (21,333 ) $ (25,326 ) $ (35,513 ) Net sales by product, are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Europe Lifestyle $ 69,621 $ 64,128 $ 137,612 $ 125,932 Mobility and Seating 58,411 53,526 110,184 100,458 Respiratory Therapy 6,480 6,634 13,242 13,750 Other(1) 4,384 4,197 9,172 7,853 $ 138,896 $ 128,485 $ 270,210 $ 247,993 NA/HME Lifestyle $ 31,573 $ 31,045 $ 62,207 $ 63,294 Mobility and Seating 31,063 27,170 60,228 54,061 Respiratory Therapy 16,959 18,826 36,691 43,309 Other(1) 272 648 523 1,287 $ 79,867 $ 77,689 $ 159,649 $ 161,951 Institutional Products Group Continuing Care $ 13,704 $ 15,320 $ 28,591 $ 31,693 Asia/Pacific Mobility and Seating $ 8,448 $ 7,108 $ 15,339 $ 13,716 Lifestyle 2,736 2,637 5,001 4,873 Continuing Care 447 671 734 1,846 Respiratory Therapy 522 306 646 649 Other(1) 1,532 1,301 3,042 2,519 $ 13,685 $ 12,023 $ 24,762 $ 23,603 Total Consolidated $ 246,152 $ 233,517 $ 483,212 $ 465,240 ________________________ (1) Includes various services, including repair services, equipment rentals and external contracting. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies General In the ordinary course of its business, the company is a defendant in a number of lawsuits, primarily product liability actions in which various plaintiffs seek damages for injuries allegedly caused by defective products. All of the product liability lawsuits that the company currently faces in the United States have been referred to the company's captive insurance company and/or excess insurance carriers while all non-U.S. lawsuits have been referred to the company's commercial insurance carriers. All such lawsuits are generally contested vigorously. The coverage territory of the company's insurance is worldwide with the exception of those countries with respect to which, at the time the product is sold for use or at the time a claim is made, the U.S. government has suspended or prohibited diplomatic or trade relations. The amount recorded for identified contingent liabilities is based on estimates. Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. Actual costs to be incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures. As a medical device manufacturer, the company is subject to extensive government regulation, including numerous laws directed at preventing fraud and abuse and laws regulating reimbursement under various government programs. The marketing, invoicing, documenting, developing, testing, manufacturing, labeling, promoting, distributing and other practices of health care suppliers and medical device manufacturers are all subject to government scrutiny. Most of the company's facilities are subject to inspection at any time by the FDA or similar medical device regulatory agencies in other jurisdictions. Violations of law or regulations can result in administrative, civil and criminal penalties and sanctions, which could have a material adverse effect on the company's business. Medical Device Regulatory Matters The FDA in the United States and comparable medical device regulatory authorities in other jurisdictions regulate virtually all aspects of the marketing, invoicing, documenting, development, testing, manufacturing, labeling, promotion, distribution and other practices regarding medical devices. The company and its products are subject to the laws and regulations of the FDA and other regulatory bodies in the various jurisdictions where the company's products are manufactured or sold. The company's failure to comply with the regulatory requirements of the FDA and other applicable medical device regulatory requirements can subject the company to administrative or judicially imposed sanctions or enforcement actions. These sanctions include injunctions, consent decrees, warning letters, civil penalties, criminal penalties, product seizure or detention, product recalls and total or partial suspension of production. In December 2012 , the company became subject to a consent decree of injunction filed by FDA with respect to the company's Corporate facility and its Taylor Street manufacturing facility in Elyria, Ohio. The consent decree initially limited the company's (i) manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility, except in verified cases of medical necessity, (ii) design activities related to wheelchairs and power beds that took place at the impacted Elyria facilities and (iii) replacement, service and repair of products which were already in use from the Taylor Street manufacturing facility. Under the terms of the consent decree, in order to resume full operations, the company had to successfully complete independent, third-party expert certification audits at the impacted Elyria facilities, comprised of three distinct certification reports separately submitted to, and accepted by, FDA; submit its own report to the FDA; and successfully complete a reinspection by FDA of the company’s Corporate and Taylor Street facilities. On July 24, 2017 , following its June 2017 reinspection of the Corporate and Taylor Street facilities, FDA notified the company that it is in substantial compliance with the FDA Act, FDA regulations and the terms of the consent decree and that the company was permitted to resume full operations at those facilities including the resumption of unrestricted sales of products made in those facilities. The consent decree will continue in effect for at least five years from July 2017 , during which time the company’s Corporate and Taylor Street facilities must complete two semi-annual audits in the first year and then four annual audits in the next four years performed by a company-retained expert firm. The expert audit firm will determine whether the facilities remain in continuous compliance with the FDA Act, FDA regulations and the terms of the consent decree. The FDA has the authority to inspect these facilities and any other FDA registered facility, at any time. The FDA has continued to actively inspect the company’s facilities, other than through the processes established under the consent decree. The company expects that the FDA will, from time to time, inspect substantially all the company's domestic and foreign FDA-registered facilities. Recent inspections for which follow-up remains ongoing are summarized in the following paragraphs. In June 2017 , FDA inspected the company's Corporate and Taylor Street facilities in connection with the consent decree, as described above, and issued an inspectional observation on Form 483. The company submitted its response to the agency in a timely manner. On July 24, 2017 , the FDA notified the company that it was in substantial compliance with the FDA Act, FDA Regulations and the terms of the consent decree and that it was permitted to resume full operations at those facilities. In March 2018 , the company completed its first semi-annual independent expert audit of the Corporate and Taylor Street facilities, as required under the consent decree, with no adverse audit report observations. The audit report was submitted to, and accepted by FDA. In September 2017 , Alber GmbH, a wholly owned subsidiary of the company, received a warning letter from the FDA. The warning letter required completion of corrective actions to address Form 483 observations issued following FDA's inspection of Alber’s facility in Albstadt, Germany in May 2017. As a consequence of the warning letter, all Alber devices could not be imported into the United States until all findings were corrected to FDA’s satisfaction. On January 3, 2018, FDA notified the company that Alber’s responses to the warning letter were adequate, and that FDA had as of that date, removed the import suspension. FDA conducted its subsequent reinspection of Alber in April 2018 , the result of which included no noted observations. The company expects the warning letter to be closed as a result of this inspection; however, the company cannot be assured of the timing or certainty of this outcome. In November 2017 , FDA inspected the company’s facility in Pinellas Park, Florida and issued its observations on Form 483, one of which was annotated as corrected and verified at the conclusion of the inspection. The company has submitted its response to FDA in a timely manner. In June 2018 , the FDA notified the company that its responses to the Form 483 observations were adequate. In November 2017 , the FDA inspected the company’s facility in Sanford, Florida and issued its observations on Form 483, and the company submitted its response to FDA in a timely manner. In July 2018 , the FDA notified the company that its responses to the Form 483 observations were adequate. The Sanford facility is the subject of a warning letter from the FDA issued in December 2010 related to quality systems processes and procedures, and the company continues to work on addressing the FDA’s citations. The results of regulatory claims, proceedings, investigations, or litigation are difficult to predict. An unfavorable resolution or outcome of any FDA warning letters or inspectional observations, or other FDA enforcement related to company facilities, could materially and adversely affect the company's business, financial condition, and results of operations. The limitations previously imposed by the FDA consent decree negatively affected net sales in the NA/HME segment and, to a certain extent, the Asia/Pacific segment beginning in 2012. The limitations led to delays in new product introductions. Further, uncertainty regarding how long the limitations would be in effect limited the company’s ability to renegotiate and bid on certain customer contracts and otherwise led to a decline in customer orders. Although the company has been permitted to resume full operations at the Corporate and Taylor Street facilities, the negative effect of the consent decree on customer orders and net sales in the NA/HME and Asia/Pacific segments has been considerable, and it is uncertain as to whether, or how quickly, the company will be able to rebuild net sales to more typical historical levels, irrespective of market conditions. Accordingly, when compared to the company's 2010 results, the previous limitations in the consent decree had, and likely may continue to have, a material adverse effect on the company's business, financial condition and results of operations. Separately, net sales in the NA/HME segment have likely been impacted by uncertainty on the part of the company's customers as they coped with prepayment reviews and post-payment audits by the Centers for Medicare and Medicaid Services ("CMS") and the impact of the National Competitive Bidding ("NCB") process. In addition, net sales in the NA/HME segment have declined and may continue to decline as a result of the company's strategic focus away from lower margin, less differentiated products, as the company becomes more focused on its clinically complex products. Warranty Matters The company's warranty reserves are subject to adjustment in future periods based on historical analysis of warranty claims and as new developments occur that may change the company's estimates related to specific product recalls. See Current Liabilities in the Notes to the Consolidated Financial Statements for the total provision amounts and a reconciliation of the changes in the warranty accrual. Any of the above contingencies could have an adverse impact on the company's financial condition or results of operations. For additional information regarding the consent decree, other regulatory matters, and risks and trends that may impact the company’s financial condition or results of operations, please see the following sections of the company's Annual Report on Form 10-K for the year ended December 31, 2017 : Item 1. Business - Government Regulation and Item 1A. Risk Factors; Item 3. Legal Proceedings; and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook and - Liquidity and Capital Resources. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the company and its wholly owned subsidiaries and include all adjustments, which were of a normal recurring nature, necessary to present fairly the financial position of the company as of June 30, 2018 and the results of its operations and changes in its cash flow for the six months ended June 30, 2018 and 2017 , respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using a May 31 quarter end to meet filing deadlines. No material subsequent events have occurred related to the European segment, which would require disclosure or adjustment to the company's financial statements. All significant intercompany transactions are eliminated. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the full year |
Use of Estimates | Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from these estimates. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable: The company records accounts receivable when control of the product or service transfers to its unaffiliated customers, risk of loss is passed and title is transferred. The estimated allowance for uncollectible amounts is based primarily on management's evaluation of the financial condition of specific customers. The company records accounts receivable reserves for amounts that may become uncollectible in the future. The company writes off accounts receivable when it becomes apparent, based upon customer circumstances, that such amounts will not be collected and when legal remedies are exhausted. Reserves for customer bonus and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements (Already Adopted): In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which replaces numerous requirements in U.S. GAAP and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. ASU 2014-09 requires a company to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance requires five steps to be applied: 1) identify the contract(s) with customers, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligation in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than previous revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. Effective January 1, 2018 , the company adopted the new accounting standard, and all the related amendments, on a modified retrospective basis, with no cumulative effect adjustment to equity needed. Upon adoption, the standard did not have a material impact on the company's results of operations or cash flows nor does the company expect it to have a material impact on future periods. Pursuant to ASU 2014-09, revenues are recognized as control transfers to the customers, which is consistent with the prior revenue recognition model and the prior accounting for the vast majority of the company's contracts. While the company does have a minor amount of service business for which revenue is recognized over time as compared to a point in time, the company’s process to estimate the amount of revenue to be recognized did not change as a result of the implementation of the new standard. Recent Accounting Pronouncements (Not Yet Adopted): In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet while recognizing expense in a manner similar to existing accounting. The new accounting guidance is effective for fiscal periods beginning after December 15, 2018 and early adoption is permitted. The company continues to assess the impact of the adoption of ASU 2016-02 on the company's financial statements. While the company has not finalized its assessment of the impact of ASU 2016-02, the company does expect the standard to have a significant impact on the company's consolidated balance sheets as the company will be required to record assets and liabilities related to its operating leases. The standard is not expected to have a material impact on the Company's results of operations or cash flows. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Statements." ASU 2016-13 requires a new credit loss standard for most financial assets and certain other instruments. For example, entities will be required to use an "expected loss" model that will generally require earlier recognition of allowances for losses for trade receivables. The standard also requires additional disclosures, including disclosures regarding how an entity tracks credit quality. The amendments in the pronouncement are effective for fiscal years beginning after December 15, 2019 , including interim periods within those fiscal years. Entities may early adopt the amendments as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The company is currently reviewing the impact of the adoption of ASU 2016-13 on the company's financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017 . The company is currently reviewing the impact of the adoption of ASU 2017-04 but does not expect the adoption to impact the company's financial statements. |
Receivables (Tables)
Receivables (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables consist of the following (in thousands): June 30, 2018 December 31, 2017 Accounts receivable, gross $ 143,696 $ 154,966 Customer rebate reserve (10,527 ) (18,747 ) Allowance for doubtful accounts (4,841 ) (5,113 ) Cash discount reserves (3,173 ) (4,252 ) Other, principally returns and allowances reserves (1,056 ) (1,239 ) Accounts receivable, net $ 124,099 $ 125,615 |
Schedule of Installment Receivables | Installment receivables consist of the following (in thousands): June 30, 2018 December 31, 2017 Current Long- Term Total Current Long- Term Total Installment receivables $ 2,369 $ 1,525 $ 3,894 $ 2,415 $ 2,076 $ 4,491 Less: Unearned interest (32 ) — (32 ) (38 ) — (38 ) 2,337 1,525 3,862 2,377 2,076 4,453 Allowance for doubtful accounts (1,071 ) (1,214 ) (2,285 ) (1,043 ) (1,601 ) (2,644 ) Installment receivables, net $ 1,266 $ 311 $ 1,577 $ 1,334 $ 475 $ 1,809 |
Schedule of Installment Receivables Allowance for Doubtful Accounts | The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands): Six Months Ended June 30, 2018 Year Ended December 31, 2017 Balance as of beginning of period $ 2,644 $ 2,838 Current period provision (benefit) (102 ) 1,001 Direct write-offs charged against the allowance (257 ) (1,195 ) Balance as of end of period $ 2,285 $ 2,644 |
Schedule of Installment Receivables by Class | Installment receivables by class as of June 30, 2018 consist of the following (in thousands): Total Installment Receivables Unpaid Principal Balance Related Allowance for Doubtful Accounts Interest Income Recognized U.S. Impaired installment receivables with a related allowance recorded $ 3,005 $ 3,005 $ 2,285 $ — Canada Non-Impaired installment receivables with no related allowance recorded 889 857 — 68 Impaired installment receivables with a related allowance recorded — — — — Total Canadian installment receivables 889 857 — 68 Total Non-Impaired installment receivables with no related allowance recorded 889 857 — 68 Impaired installment receivables with a related allowance recorded 3,005 3,005 2,285 — Total installment receivables $ 3,894 $ 3,862 $ 2,285 $ 68 Installment receivables by class as of December 31, 2017 consist of the following (in thousands): Total Installment Receivables Unpaid Principal Balance Related Interest Income Recognized U.S. Impaired installment receivables with a related allowance recorded $ 3,566 $ 3,566 $ 2,642 $ — Canada Non-Impaired installment receivables with no related allowance recorded 923 885 — 74 Impaired installment receivables with a related allowance recorded 2 2 2 — Total Canadian installment receivables 925 887 2 74 Total Non-Impaired installment receivables with no related allowance recorded 923 885 — 74 Impaired installment receivables with a related allowance recorded 3,568 3,568 2,644 — Total installment receivables $ 4,491 $ 4,453 $ 2,644 $ 74 |
Schedule of Financing Receivables | Installment receivables by class as of June 30, 2018 consist of the following (in thousands): Total Installment Receivables Unpaid Principal Balance Related Allowance for Doubtful Accounts Interest Income Recognized U.S. Impaired installment receivables with a related allowance recorded $ 3,005 $ 3,005 $ 2,285 $ — Canada Non-Impaired installment receivables with no related allowance recorded 889 857 — 68 Impaired installment receivables with a related allowance recorded — — — — Total Canadian installment receivables 889 857 — 68 Total Non-Impaired installment receivables with no related allowance recorded 889 857 — 68 Impaired installment receivables with a related allowance recorded 3,005 3,005 2,285 — Total installment receivables $ 3,894 $ 3,862 $ 2,285 $ 68 Installment receivables by class as of December 31, 2017 consist of the following (in thousands): Total Installment Receivables Unpaid Principal Balance Related Interest Income Recognized U.S. Impaired installment receivables with a related allowance recorded $ 3,566 $ 3,566 $ 2,642 $ — Canada Non-Impaired installment receivables with no related allowance recorded 923 885 — 74 Impaired installment receivables with a related allowance recorded 2 2 2 — Total Canadian installment receivables 925 887 2 74 Total Non-Impaired installment receivables with no related allowance recorded 923 885 — 74 Impaired installment receivables with a related allowance recorded 3,568 3,568 2,644 — Total installment receivables $ 4,491 $ 4,453 $ 2,644 $ 74 |
Schedule of Aging of Installment Receivables | The aging of the company’s installment receivables was as follows (in thousands): June 30, 2018 December 31, 2017 Total U.S. Canada Total U.S. Canada Current $ 889 $ — $ 889 $ 916 $ — $ 916 0-30 Days Past Due — — — 6 — 6 31-60 Days Past Due — — — — — — 61-90 Days Past Due — — — — — — 90+ Days Past Due 3,005 3,005 — 3,569 3,566 3 $ 3,894 $ 3,005 $ 889 $ 4,491 $ 3,566 $ 925 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following (in thousands): June 30, 2018 December 31, 2017 Finished goods $ 60,481 $ 52,773 Raw materials 65,250 59,497 Work in process 10,875 9,663 Inventories, net $ 136,606 $ 121,933 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following (in thousands): June 30, 2018 December 31, 2017 Value added tax receivables $ 15,914 $ 16,174 Service contracts 3,021 2,812 Derivatives (foreign currency forward exchange contracts) 2,136 730 Prepaid insurance 1,155 2,647 Prepaid inventory 614 711 Recoverable income taxes 513 341 Prepaid debt fees 394 397 Prepaid and other current assets 9,094 7,692 Other Current Assets $ 32,841 $ 31,504 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Noncurrent | Other long-term assets consist of the following (in thousands): June 30, 2018 December 31, 2017 Convertible 2022 note hedge asset $ 54,490 $ 46,680 Convertible 2021 note hedge asset 54,858 46,915 Cash surrender value of life insurance policies 1,956 1,991 Deferred financing fees 595 787 Long-term installment receivables 311 475 Long-term deferred taxes 403 518 Investments 90 103 Other 436 107 Other Long-Term Assets $ 113,139 $ 97,576 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consist of the following (in thousands): June 30, 2018 December 31, 2017 Machinery and equipment $ 301,334 $ 307,244 Land, buildings and improvements 77,760 78,522 Leasehold improvements 8,955 9,947 Furniture and fixtures 9,974 10,264 Property and Equipment, gross 398,023 405,977 Less allowance for depreciation (321,333 ) (325,961 ) Property and Equipment, net $ 76,690 $ 80,016 |
Intangibles (Tables)
Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The company's intangibles consist of the following (in thousands): June 30, 2018 December 31, 2017 Historical Cost Accumulated Amortization Historical Cost Accumulated Amortization Customer lists $ 53,481 $ 51,677 $ 54,516 $ 51,957 Trademarks 25,822 — 26,372 — Developed technology 7,808 6,635 7,925 6,636 Patents 5,529 5,524 5,566 5,559 License agreements 1,133 1,133 1,187 1,187 Other 1,162 1,146 1,162 1,145 Intangibles $ 94,935 $ 66,115 $ 96,728 $ 66,484 |
Schedule of Finite-Lived Intangible Assets | The company's intangibles consist of the following (in thousands): June 30, 2018 December 31, 2017 Historical Cost Accumulated Amortization Historical Cost Accumulated Amortization Customer lists $ 53,481 $ 51,677 $ 54,516 $ 51,957 Trademarks 25,822 — 26,372 — Developed technology 7,808 6,635 7,925 6,636 Patents 5,529 5,524 5,566 5,559 License agreements 1,133 1,133 1,187 1,187 Other 1,162 1,146 1,162 1,145 Intangibles $ 94,935 $ 66,115 $ 96,728 $ 66,484 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of accruals for the following (in thousands): June 30, 2018 December 31, 2017 Salaries and wages $ 28,912 $ 33,390 Taxes other than income taxes, primarily Value Added Taxes 21,137 22,627 Warranty 18,891 22,468 Professional 5,336 5,203 Freight 3,970 4,002 Interest 3,915 3,919 Deferred revenue 3,092 2,770 Product liability, current portion 3,045 2,905 Derivative liabilities (foreign currency forward exchange contracts) 1,302 2,120 Severance 1,235 3,704 Rebates 1,203 5,831 Rent 707 808 Insurance 660 645 Supplemental Executive Retirement Program liability 391 391 Other items, principally trade accruals 7,696 7,914 Accrued Expenses $ 101,492 $ 118,697 |
Schedule of Product Warranty Liability | The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): Balance as of January 1, 2018 $ 22,468 Warranties provided during the period 3,663 Settlements made during the period (7,503 ) Changes in liability for pre-existing warranties during the period, including expirations 263 Balance as of June 30, 2018 $ 18,891 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt consists of the following (in thousands): June 30, 2018 December 31, 2017 Convertible senior notes at 5.00%, due in February 2021 $ 126,217 $ 122,355 Convertible senior notes at 4.50%, due in June 2022 92,509 89,675 Other notes and lease obligations 30,276 31,415 249,002 243,445 Less current maturities of long-term debt (1,676 ) (2,040 ) Long-Term Debt $ 247,326 $ 241,405 |
Liability Components of Convertible 2021 Note | The liability components of the 2021 notes consist of the following (in thousands): June 30, 2018 December 31, 2017 Principal amount of liability component $ 150,000 $ 150,000 Unamortized discount (20,637 ) (23,900 ) Debt fees (3,146 ) (3,745 ) Net carrying amount of liability component $ 126,217 $ 122,355 |
Liability Components of Convertible 2022 Note | The liability components of the 2022 notes consist of the following (in thousands): June 30, 2018 December 31, 2017 Principal amount of liability component $ 120,000 $ 120,000 Unamortized discount (23,991 ) (26,378 ) Debt fees (3,500 ) (3,947 ) Net carrying amount of liability component $ 92,509 $ 89,675 |
Other Long-Term Obligations (Ta
Other Long-Term Obligations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other long-term obligations consist of the following (in thousands): June 30, 2018 December 31, 2017 Convertible 2021 debt conversion liability $ 61,136 $ 53,154 Convertible 2022 debt conversion liability 61,061 53,414 Deferred income taxes 28,398 28,890 Product liability 14,189 13,575 Pension 10,347 10,340 Deferred gain on sale leaseback 6,273 6,419 Deferred compensation 5,610 5,592 Supplemental Executive Retirement Plan liability 5,556 5,636 Uncertain tax obligation including interest 2,905 2,738 Other 3,169 3,512 Other Long-Term Obligations $ 198,644 $ 183,270 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Revenue Recognition, Multiple-deliverable Arrangements | The following tables disaggregate the company’s revenues by major source and by reportable segment for the three and six months ended June 30, 2018 and June 30, 2017 (in thousands): Three Months Ended June 30, 2018 Product Service Total Europe $ 135,408 $ 3,488 $ 138,896 NA/HME 79,667 200 79,867 IPG 13,267 437 13,704 Asia/Pacific 12,494 1,191 13,685 Total $ 240,836 $ 5,316 $ 246,152 % Split 98% 2% 100% Six Months Ended June 30, 2018 Product Service Total Europe $ 263,410 $ 6,800 $ 270,210 NA/HME 159,238 411 159,649 IPG 27,775 816 28,591 Asia/Pacific 22,439 2,323 24,762 Total $ 472,862 $ 10,350 $ 483,212 % Split 98% 2% 100% Three Months Ended June 30, 2017 Product Service Total Europe $ 125,289 $ 3,196 $ 128,485 NA/HME 77,094 595 77,689 IPG 15,119 201 15,320 Asia/Pacific 10,875 1,148 12,023 Total $ 228,377 $ 5,140 $ 233,517 % Split 98% 2% 100% Six Months Ended June 30, 2017 Product Service Total Europe $ 242,079 $ 5,914 $ 247,993 NA/HME 160,730 1,221 161,951 IPG 31,357 336 31,693 Asia/Pacific 21,367 2,236 23,603 Total $ 455,533 $ 9,707 $ 465,240 % Split 98% 2% 100% |
Equity Compensation (Tables)
Equity Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The amounts of equity-based compensation expense recognized as part of SG&A expenses were as follows (in thousands): For the Six Months Ended June 30, 2018 2017 Restricted stock / units $ 2,940 $ 3,262 Performance shares / units (27 ) 905 Non-qualified and performance stock options 30 479 Total stock-based compensation expense $ 2,943 $ 4,646 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | As of June 30, 2018 , unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2018 Plan and previous plans, which is related to non-vested options and shares, was as follows (in thousands): June 30, 2018 Restricted stock and restricted stock units $ 9,899 Performance shares and performance share units 10,890 Non-qualified and performance stock options 2,472 Total unrecognized stock-based compensation expense $ 23,261 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes information about stock option activity for the six months ended June 30, 2018 : June 30, 2018 Weighted Average Exercise Price Options outstanding at January 1, 2018 2,631,569 $ 19.44 Granted — — Exercised (183,349 ) 14.28 Canceled (155,200 ) 23.49 Options outstanding at June 30, 2018 2,293,020 $ 19.58 Options exercise price range at June 30, 2018 $ 12.15 to $ 33.36 Options exercisable at June 30, 2018 1,693,244 Shares available for grant at June 30, 2018* 4,014,199 ________ * Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively |
Schedule of Share-based Compensation, Stock Options Outstanding | The following table summarizes information about stock options outstanding at June 30, 2018 : Options Outstanding Options Exercisable Exercise Prices Number Outstanding at June 30, 2018 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable at June 30, 2018 Weighted Average Exercise Price $ 12.15 – $20.00 887,935 7.6 $ 12.82 288,159 $ 14.23 $ 20.01 – $25.00 726,751 2.0 22.20 726,751 22.20 $ 25.01 – $30.00 673,838 1.2 25.56 673,838 25.56 $ 30.01 – $33.36 4,496 2.9 33.36 4,496 33.36 Total 2,293,020 3.8 $ 19.58 1,693,244 $ 22.21 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of options granted is estimated on the date of grant using a Black-Scholes option-pricing model. The calculated fair value of the 2017 performance option awards was $5.38 per option based on the following assumptions: Expected dividend yield 0.4 % Expected stock price volatility 39.1 % Risk-free interest rate 2.31 % Expected life in years 7.8 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes information about restricted shares and restricted share units (primarily for non-U.S. recipients): June 30, 2018 Weighted Average Fair Value Stock / Units unvested at January 1, 2018 776,520 $ 13.75 Granted 367,327 17.51 Vested (366,794 ) 15.00 Canceled (45,820 ) 13.11 Stock / Units unvested at June 30, 2018 731,233 $ 15.06 |
Share-based Compensation, Performance Shares Award Unvested Activity | The following table summarizes information about performance shares and performance share units (for non-U.S. recipients): June 30, 2018 Weighted Average Fair Value Shares / Units unvested at January 1, 2018 457,879 $ 12.33 Granted 205,164 17.48 Vested — — Canceled (2,088 ) 12.82 Shares / Units unvested at June 30, 2018 660,955 $ 13.93 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income ("OCI") for the three and six months ended June 30, 2018 and June 30, 2017 , respectively, were as follows (in thousands): Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total March 31, 2018 $ 59,085 $ (1,505 ) $ (7,699 ) $ (1,379 ) $ 48,502 OCI before reclassifications (25,407 ) 1,969 291 1,128 (22,019 ) Amount reclassified from accumulated OCI — — (1 ) 577 576 Net current-period OCI (25,407 ) 1,969 290 1,705 (21,443 ) June 30, 2018 $ 33,678 $ 464 $ (7,409 ) $ 326 $ 27,059 December 31, 2017 $ 50,376 $ (4,612 ) $ (7,652 ) $ (1,242 ) $ 36,870 OCI before reclassifications (16,698 ) 5,076 373 743 (10,506 ) Amount reclassified from accumulated OCI — — (130 ) 825 695 Net current-period OCI (16,698 ) 5,076 243 1,568 (9,811 ) June 30, 2018 $ 33,678 $ 464 $ (7,409 ) $ 326 $ 27,059 March 31, 2017 $ (28,352 ) $ 20,474 $ (11,543 ) $ 1,205 $ (18,216 ) OCI before reclassifications 37,163 (10,852 ) (480 ) (1,335 ) 24,496 Amount reclassified from accumulated OCI — — 54 (301 ) (247 ) Net current-period OCI 37,163 (10,852 ) (426 ) (1,636 ) 24,249 June 30, 2017 $ 8,811 $ 9,622 $ (11,969 ) $ (431 ) $ 6,033 December 31, 2016 $ (26,199 ) $ 17,372 $ (11,248 ) $ 740 $ (19,335 ) OCI before reclassifications 35,010 (7,750 ) (985 ) (571 ) 25,704 Amount reclassified from accumulated OCI — — 264 (600 ) (336 ) Net current-period OCI 35,010 (7,750 ) (721 ) (1,171 ) 25,368 June 30, 2017 $ 8,811 $ 9,622 $ (11,969 ) $ (431 ) $ 6,033 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Reclassifications out of accumulated OCI for the three and six months ended June 30, 2018 and June 30, 2017 were as follows (in thousands): Amount reclassified from OCI Affected line item in the Statement of Comprehensive (Income) Loss For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Defined Benefit Plans Service and interest costs $ (1 ) $ 54 $ (130 ) $ 264 Selling, General and Administrative Tax — — — — Income Taxes Total after tax $ (1 ) $ 54 $ (130 ) $ 264 Derivatives Foreign currency forward contracts hedging sales $ 209 $ 166 $ 234 $ 234 Net Sales Foreign currency forward contracts hedging purchases 429 (481 ) 680 (872 ) Cost of Products Sold Total loss (income) before tax 638 (315 ) 914 (638 ) Tax (61 ) 14 (89 ) 38 Income Taxes Total after tax $ 577 $ (301 ) $ 825 $ (600 ) |
Charges Related To Restructur43
Charges Related To Restructuring Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | A progression by reporting segment of the accruals recorded as a result of the restructuring for the six months ended June 30, 2018 is as follows (in thousands): Severance Contract Terminations Total December 31, 2017 Balances NA/HME $ 2,439 $ 167 $ 2,606 Europe 249 134 383 Other 1,016 — 1,016 Total 3,704 301 4,005 Charges NA/HME 97 — 97 Europe 293 — 293 Asia/Pacific 11 — 11 Total 401 — 401 Payments NA/HME (1,697 ) (57 ) (1,754 ) Europe (338 ) (97 ) (435 ) Asia/Pacific (11 ) — (11 ) Other (260 ) — (260 ) Total (2,306 ) (154 ) (2,460 ) March 31, 2018 Balances NA/HME 839 110 949 Europe 204 37 241 Other 756 — 756 Total 1,799 147 1,946 Charges (Reversals) NA/HME 124 (135 ) (11 ) Europe 108 — 108 Asia/Pacific 247 — 247 Total 479 (135 ) 344 Payments NA/HME (601 ) 66 (535 ) Europe (195 ) (37 ) (232 ) Asia/Pacific (247 ) — (247 ) Total (1,043 ) 29 (1,014 ) June 30, 2018 Balances NA/HME 362 41 403 Europe 117 — 117 Other 756 — 756 Total $ 1,235 $ 41 $ 1,276 |
Net Earnings (Loss) Per Commo44
Net Earnings (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated. (In thousands except per share data) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Basic Average common shares outstanding 33,169 32,833 33,040 32,654 Net loss $ (16,543 ) $ (23,508 ) $ (30,651 ) $ (40,288 ) Net loss per common share $ (0.50 ) $ (0.72 ) $ (0.93 ) $ (1.23 ) Diluted Average common shares outstanding 33,169 32,833 33,040 32,654 Stock options and awards 827 360 827 293 Average common shares assuming dilution 33,996 33,193 33,867 32,947 Net loss $ (16,543 ) $ (23,508 ) $ (30,651 ) $ (40,288 ) Net loss per common share * $ (0.50 ) $ (0.72 ) $ (0.93 ) $ (1.23 ) ________ * Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Outstanding foreign currency forward exchange contracts qualifying and designated for hedge accounting treatment were as follows (in thousands USD): June 30, 2018 December 31, 2017 Notional Amount Unrealized Net Gain (Loss) Notional Amount Unrealized Net Gain (Loss) USD / AUD $ 2,580 $ 161 $ 3,960 $ 44 USD / CAD 17,428 (80 ) 33,344 115 USD / CNY 2,016 21 4,027 61 USD / EUR 40,266 851 72,259 (558 ) USD / GBP 2,468 (10 ) 4,640 (124 ) USD / NZD 5,910 (105 ) 9,300 11 USD / SEK 1,052 122 — — USD / MXP 3,279 (12 ) 6,461 (158 ) EUR / GBP 16,722 (461 ) 32,248 (682 ) EUR / SEK 3,802 145 7,732 39 EUR / NOK 2,289 (59 ) 4,521 68 EUR / NZD 1,403 (10 ) 2,855 (8 ) DKK / SEK 3,013 (156 ) 6,453 (120 ) $ 102,228 $ 407 $ 187,800 $ (1,312 ) |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Foreign currency forward exchange contracts not qualifying or designated for hedge accounting treatment, as well as ineffective hedges, entered into in 2018 and 2017 , respectively, and outstanding were as follows (in thousands USD): June 30, 2018 December 31, 2017 Notional Amount Gain (Loss) Notional Amount Gain (Loss) AUD / USD $ 2,818 $ 69 $ 2,750 $ (77 ) EUR / USD 7,695 472 — — NZD / USD — — 3,300 (53 ) EUR / AUD 2,894 (87 ) 4,000 43 AUD / NZD 2,439 (26 ) 3,600 9 EUR / NOK 36 (1 ) — — $ 15,882 $ 427 $ 13,650 $ (78 ) |
Schedule of Derivatives Instruments Statements of Financial Position, Fair Value | The fair values of the company’s derivative instruments were as follows (in thousands): June 30, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments under ASC 815 Foreign currency forward exchange contracts $ 1,596 $ 1,189 $ 678 $ 1,990 Derivatives not designated as hedging instruments under ASC 815 Foreign currency forward exchange contracts 540 113 52 130 Total derivatives $ 2,136 $ 1,302 $ 730 $ 2,120 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The effect of derivative instruments on Accumulated Other Comprehensive Income (OCI) and the Statement of Comprehensive Income (Loss) and was as follows (in thousands): Derivatives in ASC 815 cash flow hedge relationships Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Three months ended June 30, 2018 Foreign currency forward exchange contracts $ 1,128 $ (577 ) $ — Six months ended June 30, 2018 Foreign currency forward exchange contracts $ 743 $ (825 ) $ (1 ) Three months ended June 30, 2017 Foreign currency forward exchange contracts $ (1,335 ) $ 301 $ — Six months ended June 30, 2017 Foreign currency forward exchange contracts $ (571 ) $ 600 $ — Derivatives not designated as hedging instruments under ASC 815 Amount of Gain (Loss) Recognized in Income on Derivatives Three months ended June 30, 2018 Foreign currency forward exchange contracts $ 197 Six months ended June 30, 2018 Foreign currency forward exchange contracts $ 427 Three months ended June 30, 2017 Foreign currency forward exchange contracts $ 52 Six months ended June 30, 2017 Foreign currency forward exchange contracts $ 117 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The fair values of the outstanding convertible note derivatives as of June 30, 2018 and their effect on the Statement of Comprehensive Income (Loss) were as follows (in thousands): Gain (Loss) Gain (Loss) Fair Value Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Convertible 2021 debt conversion long-term liability $ (61,136 ) $ (5,609 ) $ (8,250 ) $ (7,982 ) $ (1,519 ) Convertible 2022 debt conversion long-term liability (61,061 ) (5,837 ) (4,392 ) (7,647 ) (4,392 ) Convertible 2021 note hedge long-term asset 54,858 5,896 7,789 7,943 1,959 Convertible 2022 note hedge long-term asset 54,490 5,571 3,802 7,810 3,802 Net fair value and net gain (loss) on convertible debt derivatives $ (12,849 ) $ 21 $ (1,051 ) $ 124 $ (150 ) |
Fair Values (Tables)
Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands): Basis for Fair Value Measurements at Reporting Date Quoted Prices in Active Markets for Identical Assets / (Liabilities) Significant Other Observable Inputs Significant Other Unobservable Inputs Level I Level II Level III June 30, 2018 Forward exchange contracts—net — $ 834 — Convertible 2021 debt conversion liability — (61,136 ) — Convertible 2021 note hedge asset — 54,858 — Convertible 2022 debt conversion liability — (61,061 ) — Convertible 2022 note hedge asset — 54,490 — December 31, 2017 Forward exchange contracts—net — $ (1,390 ) — Convertible 2021 debt conversion liability — (53,154 ) — Convertible 2021 note hedge asset — 46,915 — Convertible 2022 debt conversion liability — (53,414 ) — Convertible 2022 note hedge asset — 46,680 — |
Fair Value, by Balance Sheet Grouping | The carrying values and fair values of the company’s financial instruments are as follows (in thousands): June 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 122,398 $ 122,398 $ 176,528 $ 176,528 Other investments 90 90 103 103 Installment receivables, net of reserves 1,577 1,577 1,809 1,809 Long-term debt (including current maturities of long-term debt) * (249,002 ) (319,103 ) (243,445 ) (294,173 ) Convertible 2021 debt conversion liability in Other Long-Term Obligations (61,136 ) (61,136 ) (53,154 ) (53,154 ) Convertible 2021 note hedge in Other Long-Term Assets 54,858 54,858 46,915 46,915 Convertible 2022 debt conversion liability in Other Long-Term Obligations (61,061 ) (61,061 ) (53,414 ) (53,414 ) Convertible 2022 note hedge in Other Long-Term Assets 54,490 54,490 46,680 46,680 Forward contracts in Other Current Assets 2,136 2,136 730 730 Forward contracts in Accrued Expenses (1,302 ) (1,302 ) (2,120 ) (2,120 ) ________ * The company's long-term debt is shown net of discount and fees associated with the Convertible Senior Notes due 2021 and 2022 on the company's condensed consolidated balance sheet. Accordingly, the fair values of the Convertible Senior Notes due 2021 and 2022 are included in the long-term debt presented in this table is also shown net of the discount and fees. |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | (in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Revenues from external customers Europe $ 138,896 $ 128,485 $ 270,210 $ 247,993 NA/HME 79,867 77,689 159,649 161,951 IPG 13,704 15,320 28,591 31,693 Asia/Pacific 13,685 12,023 24,762 23,603 Consolidated $ 246,152 $ 233,517 $ 483,212 $ 465,240 Intersegment revenues Europe $ 4,877 $ 3,738 $ 8,734 $ 7,413 NA/HME 23,804 21,050 47,307 43,145 IPG 229 975 318 1,743 Asia/Pacific 5,254 3,896 10,914 7,756 Consolidated $ 34,164 $ 29,659 $ 67,273 $ 60,057 Restructuring charges before income taxes Europe $ 108 $ 514 $ 401 $ 1,204 NA/HME (11 ) 3,928 86 6,170 Asia/Pacific 247 545 258 896 Consolidated $ 344 $ 4,987 $ 745 $ 8,270 Operating income (loss) Europe $ 5,171 $ 7,077 $ 11,765 $ 12,177 NA/HME (8,420 ) (12,395 ) (16,558 ) (21,821 ) IPG 1,163 1,472 2,761 3,370 Asia/Pacific 1,570 (118 ) 2,542 (548 ) All Other (5,901 ) (6,735 ) (11,674 ) (11,245 ) Charge expense related to restructuring activities (344 ) (4,987 ) (745 ) (8,270 ) Consolidated operating loss (6,761 ) (15,686 ) (11,909 ) (26,337 ) Net gain (loss) on convertible debt derivatives 21 (1,051 ) 124 (150 ) Net Interest expense (6,828 ) (4,596 ) (13,541 ) (9,026 ) Loss before income taxes $ (13,568 ) $ (21,333 ) $ (25,326 ) $ (35,513 ) |
Revenue from External Customer [Line Items] | |
Revenue from External Customers by Products and Services [Table Text Block] | Net sales by product, are as follows (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Europe Lifestyle $ 69,621 $ 64,128 $ 137,612 $ 125,932 Mobility and Seating 58,411 53,526 110,184 100,458 Respiratory Therapy 6,480 6,634 13,242 13,750 Other(1) 4,384 4,197 9,172 7,853 $ 138,896 $ 128,485 $ 270,210 $ 247,993 NA/HME Lifestyle $ 31,573 $ 31,045 $ 62,207 $ 63,294 Mobility and Seating 31,063 27,170 60,228 54,061 Respiratory Therapy 16,959 18,826 36,691 43,309 Other(1) 272 648 523 1,287 $ 79,867 $ 77,689 $ 159,649 $ 161,951 Institutional Products Group Continuing Care $ 13,704 $ 15,320 $ 28,591 $ 31,693 Asia/Pacific Mobility and Seating $ 8,448 $ 7,108 $ 15,339 $ 13,716 Lifestyle 2,736 2,637 5,001 4,873 Continuing Care 447 671 734 1,846 Respiratory Therapy 522 306 646 649 Other(1) 1,532 1,301 3,042 2,519 $ 13,685 $ 12,023 $ 24,762 $ 23,603 Total Consolidated $ 246,152 $ 233,517 $ 483,212 $ 465,240 ________________________ (1) Includes various services, including repair services, equipment rentals and external contracting. |
Operations Held For Sale Assets
Operations Held For Sale Assets and Liabilities of Operations Held For Sale (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Costs Incurred During the Period | $ 2,892,000 |
Payments for Sale Costs | $ 2,366,000 |
Discontinued Operations Narrati
Discontinued Operations Narrative (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Expenses related to sale | $ 8,801,000 |
Expenses related to sale of business paid | $ 8,405,000 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2018USD ($)payment | |
Receivables [Abstract] | |
Number of missed payments before delinquent | payment | 3 |
Typical financing period | 12 months |
Credit amount requiring additional analysis | $ 250,000 |
Average period of adjudication | 18 months |
Installment receivable purchased from DLL | $ 47,000 |
Receivables (Schedule of Accoun
Receivables (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts Receivable, Gross | $ 143,696 | $ 154,966 |
Customer Rebate Reserve | (10,527) | (18,747) |
Allowance for Doubtful Accounts Receivable | (4,841) | (5,113) |
Cash Discount Reserves | (3,173) | (4,252) |
Returns and Allowances Reserve | (1,056) | (1,239) |
Accounts Receivable, Net | $ 124,099 | $ 125,615 |
Receivables (Installment Receva
Receivables (Installment Recevables) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | |||
Non-Impaired Financing Receivable, Related Allowance | $ 0 | $ 0 | |
Installment Receivables, Current | 2,369,000 | 2,415,000 | |
Installment Receivables, Long-Term | 1,525,000 | 2,076,000 | |
Total Installment Receivables | 3,894,000 | 4,491,000 | |
Unearned Interest | 32,000 | 38,000 | |
Unearned Interest - Noncurrent | 0 | 0 | |
Total Unearned Interest | (3,092,000) | (2,770,000) | |
Unearned Interest | 32,000 | 38,000 | |
Installment Receivables Net of Unearned Interest Current | 2,337,000 | 2,377,000 | |
Installment Receivables Net of Unearned Interest Noncurrent | 1,525,000 | 2,076,000 | |
Installment Receivables, Net of Unearned Interest | 3,862,000 | 4,453,000 | |
Allowance for doubtful accounts, current | (1,071,000) | (1,043,000) | |
Allowance for doubtful accounts, long-term | (1,214,000) | (1,601,000) | |
Allowance for doubtful accounts | (2,285,000) | (2,644,000) | $ (2,838,000) |
Installment receivables, net | 1,266,000 | 1,334,000 | |
Installment receivables, net, long-term | 311,000 | 475,000 | |
Installment receivables, net | $ 1,577,000 | $ 1,809,000 |
Receivables (Rollforward of All
Receivables (Rollforward of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts [Roll Forward] | ||
Balance as of beginning of period | $ 2,644 | $ 2,838 |
Allowance for Loan and Lease Losses, Adjustments, Other | (102) | 1,001 |
Direct write-offs charged against the allowance | (257) | (1,195) |
Balance as of end of period | $ 2,285 | $ 2,644 |
Receivables (Installment Receiv
Receivables (Installment Receivables by Class) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Total Installment Receivables | ||
Non-Impaired installment receivables with no related allowance recorded | $ 889 | $ 923 |
Impaired installment receivables with a related allowance recorded | 3,005 | 3,568 |
Total installment receivables | 3,894 | 4,491 |
Unpaid Principal Balance | ||
Non-Impaired installment receivables with no related allowance recorded | 857 | 885 |
Impaired installment receivables with a related allowance recorded | 3,005 | 3,568 |
Total installment receivables | 3,862 | 4,453 |
Non-Impaired Financing Receivable, Related Allowance | 0 | 0 |
Related Allowance for Doubtful Accounts | ||
Impaired installment receivables with a related allowance recorded | 2,285 | 2,644 |
Interest Income Recognized | ||
Non-Impaired installment receivables with no related allowance recorded | 68 | 74 |
Impaired installment receivables with a related allowance recorded | 0 | 0 |
Total installment receivables | 68 | 74 |
U.S. | ||
Total Installment Receivables | ||
Impaired installment receivables with a related allowance recorded | 3,005 | 3,566 |
Unpaid Principal Balance | ||
Impaired installment receivables with a related allowance recorded | 3,005 | 3,566 |
Related Allowance for Doubtful Accounts | ||
Impaired installment receivables with a related allowance recorded | 2,285 | 2,642 |
Interest Income Recognized | ||
Impaired installment receivables with a related allowance recorded | 0 | 0 |
CANADA | ||
Total Installment Receivables | ||
Non-Impaired installment receivables with no related allowance recorded | 889 | 923 |
Impaired installment receivables with a related allowance recorded | 0 | 2 |
Total installment receivables | 889 | 925 |
Unpaid Principal Balance | ||
Non-Impaired installment receivables with no related allowance recorded | 857 | 885 |
Impaired installment receivables with a related allowance recorded | 0 | 2 |
Total installment receivables | 857 | 887 |
Non-Impaired Financing Receivable, Related Allowance | 0 | 0 |
Related Allowance for Doubtful Accounts | ||
Impaired installment receivables with a related allowance recorded | 0 | 2 |
Interest Income Recognized | ||
Non-Impaired installment receivables with no related allowance recorded | 68 | 74 |
Impaired installment receivables with a related allowance recorded | 0 | 0 |
Total installment receivables | $ 68 | $ 74 |
Receivables (Aging of Installme
Receivables (Aging of Installment Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 889 | $ 916 |
0-30 Days Past Due | 0 | 6 |
31-60 Days Past Due | 0 | 0 |
61-90 Days Past Due | 0 | 0 |
90 Days Past Due | 3,005 | 3,569 |
Total Installment Receivables Past Due | 3,894 | 4,491 |
U.S. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 0 | 0 |
0-30 Days Past Due | 0 | 0 |
31-60 Days Past Due | 0 | 0 |
61-90 Days Past Due | 0 | 0 |
90 Days Past Due | 3,005 | 3,566 |
Total Installment Receivables Past Due | 3,005 | 3,566 |
CANADA | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 889 | 916 |
0-30 Days Past Due | 0 | 6 |
31-60 Days Past Due | 0 | 0 |
61-90 Days Past Due | 0 | 0 |
90 Days Past Due | 0 | 3 |
Total Installment Receivables Past Due | $ 889 | $ 925 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 60,481 | $ 52,773 |
Raw materials | 65,250 | 59,497 |
Work in process | 10,875 | 9,663 |
Inventory, net | $ 136,606 | $ 121,933 |
Other Current Assets Components
Other Current Assets Components of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Value added tax receivables | $ 15,914 | $ 16,174 |
Service contracts | 3,021 | 2,812 |
Derivatives (foreign currency forward exchange contracts) | 2,136 | 730 |
Prepaid insurance | 1,155 | 2,647 |
Prepaid inventory | 614 | 711 |
Recoverable income taxes | 513 | 341 |
Prepaid debt fees | 394 | 397 |
Prepaid and other current assets | 9,094 | 7,692 |
Other current assets | $ 32,841 | $ 31,504 |
Other Long-Term Assets Componen
Other Long-Term Assets Components of Other Long-Term Assets(Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Convertible 2022 note hedge asset | $ 54,858,000 | $ 46,915,000 |
Convertible 2021 note hedge asset | 54,490,000 | 46,680,000 |
Cash surrender value of life insurance policies | 1,956,000 | 1,991,000 |
Deferred financing fees | 595,000 | 787,000 |
Long-term installment receivables | 311,000 | 475,000 |
Long-term deferred taxes | 403,000 | 518,000 |
Investments | 90,000 | 103,000 |
Other | 436,000 | 107,000 |
Other Assets | $ 113,139,000 | $ 97,576,000 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 398,023 | $ 405,977 |
Less allowance for depreciation | (321,333) | (325,961) |
Property and equipment, net | 76,690 | 80,016 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 301,334 | 307,244 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 77,760 | 78,522 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,955 | 9,947 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,974 | $ 10,264 |
Intangibles (Narrative) (Detail
Intangibles (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization expense | $ 837,000 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible assets, useful life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible assets, useful life | 10 years |
Weighted Average | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible assets, useful life | 3 years |
Intangibles (Intangible Table)
Intangibles (Intangible Table) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | $ 94,935 | $ 96,728 |
Accumulated Amortization | 66,115 | 66,484 |
Customer lists | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 53,481 | 54,516 |
Accumulated Amortization | 51,677 | 51,957 |
Developed technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 7,808 | 7,925 |
Accumulated Amortization | 6,635 | 6,636 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 5,529 | 5,566 |
Accumulated Amortization | 5,524 | 5,559 |
License agreements | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 1,133 | 1,187 |
Accumulated Amortization | 1,133 | 1,187 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 1,162 | 1,162 |
Accumulated Amortization | 1,146 | 1,145 |
Trademarks | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | $ 25,822 | $ 26,372 |
Intangibles (Finite-Lived Intan
Intangibles (Finite-Lived Intangible Asset Future Amortization Expense) (Details) | Jun. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Future amortization expense, remainder of fiscal year | $ 1,672,000 |
Future amortization expense, 2019 | 1,264,000 |
Future amortization expense, 2020 | 194,000 |
Future amortization expense, 2021 | 194,000 |
Future amortization expense, 2022 | 194,000 |
Future amortization expense, 2023 | $ 194,000 |
Accrued Expenses Components of
Accrued Expenses Components of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Salaries and wages | $ 28,912 | $ 33,390 |
Taxes other than income taxes, primarily Value Added Taxes | 21,137 | 22,627 |
Warranty | 18,891 | 22,468 |
Professional | 5,336 | 5,203 |
Freight | 3,970 | 4,002 |
Interest | 3,915 | 3,919 |
Deferred revenue | 3,092 | 2,770 |
Product liability, current portion | 3,045 | 2,905 |
Derivative liabilities (foreign currency forward exchange contracts) | 1,302 | 2,120 |
Severance | 1,235 | 3,704 |
Rebates | 1,203 | 5,831 |
Rent | 707 | 808 |
Insurance | 660 | 645 |
Supplemental Executive Retirement Program liability | 391 | 391 |
Other items, principally trade accruals | 7,696 | 7,914 |
Accrued expenses | $ 101,492 | $ 118,697 |
Accrued Expenses Warranty Sched
Accrued Expenses Warranty Schedule (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Product Liability Contingency | |
Balance as of January 1, 2018 | $ 22,468 |
Warranties provided during the period | 3,663 |
Settlements made during the period | (7,503) |
Changes in liability for pre-existing warranties during the period, including expirations | 263 |
Balance as of June 30, 2018 | $ 18,891 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Feb. 17, 2007 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 249,002,000 | $ 243,445,000 | |
Less current maturities of long-term debt | (1,676,000) | (2,040,000) | |
Long-term debt net of current maturities | 247,326,000 | 241,405,000 | |
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 150,000,000 | 150,000,000 | |
Long-term debt | 126,217,000 | 122,355,000 | |
Debt Instrument, Unamortized Discount | (20,637,000) | (23,900,000) | |
Debt Instrument, Fee Amount | (3,146,000) | (3,745,000) | |
Debt Instrument, Net Carrying Amount | 126,217,000 | 122,355,000 | |
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | 120,000,000 | 120,000,000 | |
Long-term debt | 92,509,000 | 89,675,000 | |
Debt Instrument, Unamortized Discount | (23,991,000) | (26,378,000) | |
Debt Instrument, Fee Amount | (3,500,000) | (3,947,000) | |
Debt Instrument, Net Carrying Amount | 92,509,000 | 89,675,000 | |
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 4.125% February 2027 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 135,000,000 | ||
Notes Payable, Other Payables [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 30,276,000 | $ 31,415,000 |
Long-Term Debt Components of Co
Long-Term Debt Components of Convertible Debt (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Feb. 01, 2017 | Feb. 17, 2007 | |
Debt Instrument [Line Items] | ||||||
Issuance of warrants | $ 0 | $ 14,100,000 | $ 12,376,000 | |||
Convertible 2022 note hedge asset | 54,858,000 | $ 46,915,000 | ||||
Long-term debt | 249,002,000 | 243,445,000 | ||||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | 120,000,000 | 120,000,000 | ||||
Issuance of warrants | $ 14,100,000 | $ 14,100,000 | ||||
Interest rate (as a percent) | 4.50% | |||||
Unamortized discount | $ (23,991,000) | (26,378,000) | ||||
Long-term debt | 92,509,000 | 89,675,000 | ||||
Debt Instrument, Fee Amount | (3,500,000) | (3,947,000) | ||||
Debt Instrument, Net Carrying Amount | $ 92,509,000 | 89,675,000 | ||||
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 4.125% February 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 135,000,000 | |||||
Interest rate (as a percent) | 4.125% | |||||
Principal amount of liability component | $ 0 | $ 13,350,000 | ||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible 2021 debt conversion liability | 61,136,000 | 53,154,000 | ||||
Debt Instrument, Face Amount | $ 150,000,000 | 150,000,000 | ||||
Interest rate (as a percent) | 5.00% | |||||
Unamortized discount | $ (20,637,000) | (23,900,000) | ||||
Long-term debt | 126,217,000 | 122,355,000 | ||||
Debt Instrument, Fee Amount | (3,146,000) | (3,745,000) | ||||
Debt Instrument, Net Carrying Amount | $ 126,217,000 | $ 122,355,000 |
Long-Term Debt Narrative (Detai
Long-Term Debt Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Feb. 01, 2017 | Feb. 17, 2007 | |
Debt Instrument [Line Items] | ||||||||
Convertible 2021 note hedge asset | $ 54,490,000 | $ 54,490,000 | $ 46,680,000 | |||||
Convertible 2022 note hedge asset | 54,858,000 | 54,858,000 | 46,915,000 | |||||
Issuance of warrants | 0 | $ 14,100,000 | $ 12,376,000 | |||||
Payments for Repurchase of Common Stock | 2,404,000 | 1,221,000 | ||||||
Amortization of debt fees | 1,246,000 | 985,000 | ||||||
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 4.125% February 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 135,000,000 | |||||||
Principal amount of liability component | $ 0 | $ 0 | $ 13,350,000 | |||||
Interest rate (as a percent) | 4.125% | 4.125% | ||||||
Repurchase Price of Debentures, Percent of Principal Amount | 100.00% | |||||||
Write off of Deferred Debt Issuance Cost | 207,000 | |||||||
Amortization of debt fees | 311,000 | |||||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Fee Amount | $ 5,966,000 | $ 5,966,000 | ||||||
Debt Instrument, Face Amount | $ 150,000,000 | $ 150,000,000 | 150,000,000 | |||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||
Last Reported Sales Price Period, Common Stock | 20 days | |||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 | |||||||
Percent of the Applicable Conversion Price | 130.00% | 130.00% | ||||||
Business Day Period | 5 days | |||||||
Debt Instrument, Convertible, Threshold Trading Days | 10 | |||||||
Percent of the Product of the Last Reported Sale Price, Common Shares | 98.00% | 98.00% | ||||||
Convertible Senior Notes, Percentage of Principal Required for Repurchase | 100.00% | 100.00% | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 60.0492 | 60.0492 | ||||||
Convertible Debt, Conversion Rate of Commmon Shares, Principal | $ 1,000 | $ 1,000 | ||||||
Debt Instrument, Convertible, Conversion Price | $ 16.65 | $ 16.65 | ||||||
Convertible Debt Conversion Feature, Fair Value at Issuance | $ 34,480,000 | $ 34,480,000 | ||||||
Convertible 2021 debt conversion liability | 61,136,000 | 61,136,000 | 53,154,000 | |||||
Convertible Debt Conversion Feature Gain (Loss) | 5,609,000 | $ 8,250,000 | 7,982,000 | 1,519,000 | ||||
Convertible due 2021 - Bond Hedge, Fair Value at Issuance | 27,975,000 | 27,975,000 | ||||||
Convertible Debt Note Hedge Gain (Loss) | $ 5,896,000 | 7,789,000 | $ 7,943,000 | 1,959,000 | ||||
Derivative, Price Risk Option Strike Price | $ 22.4175 | $ 22.4175 | ||||||
Debt Instrument, Net Proceeds | $ 144,034,000 | $ 144,034,000 | ||||||
Debt Instrument, Net Carrying Amount | 126,217,000 | 126,217,000 | 122,355,000 | |||||
Debt Instrument, Fee Amount | (3,146,000) | (3,146,000) | (3,745,000) | |||||
Payments for Repurchase of Common Stock | 5,000,000 | |||||||
Derivative, Amount of Hedged Item | (15,600,000) | (15,600,000) | ||||||
Debt Instrument, Unamortized Discount | $ (20,637,000) | $ (20,637,000) | (23,900,000) | |||||
Debt Instrument, Interest Rate, Effective Percentage | 11.10% | 11.10% | ||||||
Debt Instrument, Non-Cash Interest Expense Recognized in the Period | $ 1,661,000 | 1,490,000 | $ 3,263,000 | 2,928,000 | ||||
Debt Instrument, Increase, Accrued Interest | 1,875,000 | 1,875,000 | 3,750,000 | 3,750,000 | ||||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Fee Amount | 4,711,000 | 4,711,000 | ||||||
Debt Instrument, Face Amount | $ 120,000,000 | $ 120,000,000 | 120,000,000 | |||||
Interest rate (as a percent) | 4.50% | 4.50% | ||||||
Last Reported Sales Price Period, Common Stock | 20 days | |||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 | |||||||
Percent of the Applicable Conversion Price | 130.00% | 130.00% | ||||||
Business Day Period | 5 days | |||||||
Debt Instrument, Convertible, Threshold Trading Days | 10 | |||||||
Percent of the Product of the Last Reported Sale Price, Common Shares | 98.00% | 98.00% | ||||||
Convertible Senior Notes, Percentage of Principal Required for Repurchase | 100.00% | 100.00% | ||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 61.6095 | 61.6095 | ||||||
Convertible Debt, Conversion Rate of Commmon Shares, Principal | $ 1,000 | $ 1,000 | ||||||
Debt Instrument, Convertible, Conversion Price | $ 16.23 | $ 16.23 | ||||||
Convertible Debt Conversion Feature, Fair Value at Issuance | $ 28,859,000 | $ 28,859,000 | ||||||
Convertible Debt 2022 Conversion Feature, Fair Value | 61,061,000 | 61,061,000 | 53,414,000 | |||||
Convertible Debt Conversion Feature Gain (Loss) | 5,837,000 | 4,392,000 | 7,647,000 | 4,392,000 | ||||
Convertible due 2022 - Bond Hedge, Fair Value at Issuance | 24,780,000 | 24,780,000 | ||||||
Convertible Debt Note Hedge Gain (Loss) | $ 5,571,000 | $ 3,802,000 | $ 7,810,000 | 3,802,000 | ||||
Derivative, Price Risk Option Strike Price | $ 21.4375 | $ 21.4375 | ||||||
Issuance of warrants | $ 14,100,000 | 14,100,000 | ||||||
Debt Instrument, Net Proceeds | $ 115,289,000 | 115,289,000 | ||||||
Debt Instrument, Net Carrying Amount | 92,509,000 | 92,509,000 | 89,675,000 | |||||
Debt Instrument, Fee Amount | (3,500,000) | (3,500,000) | (3,947,000) | |||||
Derivative, Amount of Hedged Item | (10,680,000) | (10,680,000) | ||||||
Debt Instrument, Unamortized Discount | $ (23,991,000) | $ (23,991,000) | $ (26,378,000) | |||||
Debt Instrument, Interest Rate, Effective Percentage | 10.90% | 10.90% | ||||||
Debt Instrument, Non-Cash Interest Expense Recognized in the Period | $ 1,203,000 | $ 2,387,000 | 212,000 | |||||
Debt Instrument, Increase, Accrued Interest | $ 1,350,000 | 2,700,000 | $ 255,000 | |||||
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 5.00% February 2021 [Domain] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unamortized Financing Costs | $ 989,000 | |||||||
Revolving Credit Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Weighted average interest rate (as a percent) | 4.78% | 4.78% | 4.84% | |||||
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 30,000,000 | $ 30,000,000 | ||||||
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Trade Receivables, Europe, Percent | 85.00% | |||||||
Minimum availability reserve | 3,000,000 | $ 3,000,000 | ||||||
Line of Credit Facility, Covenant Feature, Dominion Trigger | $ 3,375,000 | $ 3,375,000 | ||||||
Line of Credit Facility, Covenant Feature, Dominion Trigger Maximum Percentage | 12.50% | 12.50% | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 14,822,000 | $ 14,822,000 | ||||||
Remaining borrowing capacity | $ 10,000,000 | $ 10,000,000 | ||||||
Minimum required undrawn balance (as a percent) | 11.25% | 11.25% | ||||||
Consecutive business days for minimum undrawn balance | 5 days | |||||||
Required undrawn balance, minimum | $ 3,000,000 | $ 3,000,000 | ||||||
Interruption of material manufacturing facilities, period | 10 days | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | 100,000,000 | $ 100,000,000 | ||||||
Additional increase in borrowing capacity available | 25,000,000 | $ 25,000,000 | ||||||
Percentage of domestic accounts receivable | 85.00% | |||||||
Percentage of eligible domestic inventory and in-transit inventory | 70.00% | |||||||
Percentage of net orderly liquidation value of domestic inventory | 85.00% | |||||||
Maximum value of net orderly liquidation value domestic inventory and in-transit inventory | 4,000,000 | $ 4,000,000 | ||||||
Net orderly liquidation value of domestic eligible machinery and equipment | 85.00% | |||||||
Additional amount of machinery and equipment | 1,023,000 | $ 1,023,000 | ||||||
Percentage of eligible Canadian accounts receivable | 85.00% | |||||||
Percentage of eligible Canadian inventory | 70.00% | |||||||
Percentage of net orderly liquidation value of eligible Canadian inventory | 85.00% | |||||||
Minimum availability reserve | 5,000,000 | $ 5,000,000 | ||||||
Line of Credit Facility, Current Borrowing Capacity | 23,835,000 | 23,835,000 | ||||||
Line of Credit Facility, Covenant Feature, Dominion Trigger | 11,250,000 | 11,250,000 | ||||||
LIne of Credit Facility, Covenant Feature Dominion Trigger for Five Consecutive Days | $ 12,500,000 | $ 12,500,000 | ||||||
Minimum required undrawn balance (as a percent) | 11.25% | 11.25% | ||||||
Line of Credit, Covenant Compliance, Consecutive Business Days for Undrawn_Balance | 5 days | |||||||
Required undrawn balance, minimum | $ 5,000,000 | $ 5,000,000 | ||||||
Interruption of material manufacturing facilities, period | 10 days | |||||||
Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 3,126,000 | $ 3,126,000 | $ 2,945,000 | |||||
Letter of Credit | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | 5,000,000 | 5,000,000 | ||||||
Letter of Credit | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | 25,000,000 | 25,000,000 | ||||||
Swing Line Loans | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | 2,000,000 | 2,000,000 | ||||||
Amount Available to Invacare Limited and Invacare Poirier SAS | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing capacity | $ 15,000,000 | $ 15,000,000 | ||||||
Base Rate | Revolving Credit Facility | Line of Credit | Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.25% | |||||||
Minimum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.25% | |||||||
Minimum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.25% | |||||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | |||||||
Minimum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
Minimum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
Maximum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.375% | |||||||
Maximum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.375% | |||||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.00% | |||||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Maximum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.00% | |||||||
Maximum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% |
Long-Term Debt Sale Leaseback T
Long-Term Debt Sale Leaseback Transactions (Details) | Jun. 30, 2018USD ($) |
Sale Leaseback Transaction [Line Items] | |
Sale Leaseback Transaction, Deferred Gain, Gross | $ 7,414,000 |
Other Long-Term Obligations (De
Other Long-Term Obligations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Other Noncurrent Liabilities [Line Items] | |||||
Deferred income taxes | $ 28,398,000 | $ 28,398,000 | $ 28,890,000 | ||
Product liability | 14,189,000 | 14,189,000 | 13,575,000 | ||
Pension | 10,347,000 | 10,347,000 | 10,340,000 | ||
Deferred gain on sale leaseback | 6,273,000 | 6,273,000 | 6,419,000 | ||
Deferred compensation | 5,610,000 | 5,610,000 | 5,592,000 | ||
Supplemental Executive Retirement Plan liability | 5,556,000 | 5,556,000 | 5,636,000 | ||
Uncertain tax obligation including interest | 2,905,000 | 2,905,000 | 2,738,000 | ||
Other | 3,169,000 | 3,169,000 | 3,512,000 | ||
Other Long-Term Obligations | 198,644,000 | 198,644,000 | 183,270,000 | ||
Sale Leaseback Transaction, Deferred Gain, Gross | 7,414,000 | 7,414,000 | |||
Sale Leaseback Transaction, Current Period Gain Recognized | 71,000 | $ 68,000 | 141,000 | $ 136,000 | |
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | |||||
Other Noncurrent Liabilities [Line Items] | |||||
Convertible 2022 debt conversion liability | 61,061,000 | 61,061,000 | 53,414,000 | ||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | |||||
Other Noncurrent Liabilities [Line Items] | |||||
Convertible 2021 debt conversion liability | $ 61,136,000 | $ 61,136,000 | $ 53,154,000 |
Other Long-Term Obligations Con
Other Long-Term Obligations Convertible Senior Notes (Details) - Convertible Subordinated Debt - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Convertible Senior Notes at 5.00% February 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 150,000,000 | $ 150,000,000 |
Interest rate (as a percent) | 5.00% | |
Convertible 2021 debt conversion liability | $ 61,136,000 | 53,154,000 |
Convertible Senior Notes at 4.50% February 2022 [Domain] | ||
Debt Instrument [Line Items] | ||
Convertible Debt 2022 Conversion Feature, Fair Value | 61,061,000 | 53,414,000 |
Debt Instrument, Face Amount | $ 120,000,000 | $ 120,000,000 |
Interest rate (as a percent) | 4.50% |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 246,152,000 | $ 233,517,000 | $ 483,212,000 | $ 465,240,000 | |
Net Revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Deferred Revenue | $ 3,092,000 | $ 3,092,000 | $ 2,770,000 | ||
Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 240,836,000 | $ 228,377,000 | $ 472,862,000 | $ 455,533,000 | |
Net Revenue | 98.00% | 98.00% | 98.00% | 98.00% | |
Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 5,316,000 | $ 5,140,000 | $ 10,350,000 | $ 9,707,000 | |
Net Revenue | 2.00% | 2.00% | 2.00% | 2.00% | |
Europe | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 138,896,000 | $ 128,485,000 | $ 270,210,000 | $ 247,993,000 | |
Europe | Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 135,408,000 | 125,289,000 | 263,410,000 | 242,079,000 | |
Europe | Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 3,488,000 | 3,196,000 | 6,800,000 | 5,914,000 | |
NA/HME | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 79,867,000 | 77,689,000 | 159,649,000 | 161,951,000 | |
NA/HME | Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 79,667,000 | 77,094,000 | 159,238,000 | 160,730,000 | |
NA/HME | Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 200,000 | 595,000 | 411,000 | 1,221,000 | |
IPG | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 13,704,000 | 15,320,000 | 28,591,000 | 31,693,000 | |
IPG | Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 13,267,000 | 15,119,000 | 27,775,000 | 31,357,000 | |
IPG | Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 437,000 | 201,000 | 816,000 | 336,000 | |
Asia/Pacific | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 13,685,000 | 12,023,000 | 24,762,000 | 23,603,000 | |
Asia/Pacific | Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 12,494,000 | 10,875,000 | 22,439,000 | 21,367,000 | |
Asia/Pacific | Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 1,191,000 | $ 1,148,000 | $ 2,323,000 | $ 2,236,000 | |
General Terms and Conditions | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Contract Type Sales Split | 35.00% | ||||
Large National Customers | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Contract Type Sales Split | 25.00% | ||||
Government Tenders | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Contract Type Sales Split | 15.00% | ||||
Other Customers | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Contract Type Sales Split | 25.00% |
Equity Compensation (Narrative)
Equity Compensation (Narrative) (Details) | 6 Months Ended | ||
Jun. 30, 2018votes$ / sharesshares | Dec. 31, 2017$ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.25 | ||
Granted (in shares) | 0 | ||
Period for recognition of unrecognized compensation costs | 2 years | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net award activity (in shares) | 2,684,726 | ||
Award vesting period | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net award activity (in shares) | 2,484,402 | ||
Award requisite service period | 3 years | ||
Performance achievement level, lower range | 0.00% | ||
Performance achievement level, upper range | 150.00% | ||
Performance achievement level, target range | 100.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 5.38 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||
Expiration period | 10 years | ||
Award vesting period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | [1] | 4,014,199 | |
Weighted Average | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for recognition of unrecognized compensation costs | 3 years | ||
Class B Common Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0 | $ 0 | |
Common Stock, Number of Votes | votes | 10 | ||
Common Stock, Difference in Dividend Rate | 10.00% | ||
Common Stock, Shares, Issued | 6,357 | ||
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0 | $ 0 | |
Common Stock, Holders Percentage of Total Outstanding | 99.90% | ||
[1] | *Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively. |
Equity Compensation Share-based
Equity Compensation Share-based Compensation Expense (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | $ 2,943 | $ 4,646 |
Restricted Stock and Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | 2,940 | 3,262 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | (27) | 905 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Allocated Share-based Compensation Expense | $ 30 | $ 479 |
Equity Compensation Unrecognize
Equity Compensation Unrecognized Compensation Expense (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 23,261 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 2,472 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 10,890 |
Restricted Stock and Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 9,899 |
Equity Compensation (Options Ac
Equity Compensation (Options Activity) (Details) | 6 Months Ended | |
Jun. 30, 2018$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding at beginning of period (in shares) | shares | 2,631,569 | |
Granted (in shares) | shares | 0 | |
Excercised (in shares) | shares | (183,349) | |
Canceled (in shares) | shares | (155,200) | |
Options outstanding at end of period (in shares) | shares | 2,293,020 | |
Weighted Average Exercise Price | ||
Options outstanding at beginning of period - Weighted Average Exercise Price (in dollars per share) | $ 19.44 | |
Granted - Weighted Average Exercise Price (in dollars per share) | 0 | |
Excercised - Weighted Average Exercise Price (in dollars per share) | 0 | |
Canceled - Weighted Average Exercise Price (in dollars per share) | 23.49 | |
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share) | $ 19.58 | |
Options exercisable at end of period (in shares) | shares | 1,693,244 | |
Stock Options | ||
Weighted Average Exercise Price | ||
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share) | $ 19.58 | |
Options available for grant at end of period (in shares) | shares | 4,014,199 | [1] |
$ 12.15 – $20.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | $ 12.15 | |
Exercise price range, upper limit (in dollars per share) | 20 | |
$ 12.15 – $20.00 | Stock Options | ||
Weighted Average Exercise Price | ||
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share) | 12.82 | |
$ 30.01 – $33.36 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | 30.01 | |
Exercise price range, upper limit (in dollars per share) | 33.36 | |
$ 30.01 – $33.36 | Stock Options | ||
Weighted Average Exercise Price | ||
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share) | $ 33.36 | |
[1] | *Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively. |
Equity Compensation (Stock Opti
Equity Compensation (Stock Options Outstanding by Exercise Price) (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 19.58 | $ 19.44 |
$ 12.15 – $20.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | 12.15 | |
Exercise price range, upper limit (in dollars per share) | 20 | |
$ 20.01 – $25.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | 20.01 | |
Exercise price range, upper limit (in dollars per share) | 25 | |
$ 25.01 – $30.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | 25.01 | |
Exercise price range, upper limit (in dollars per share) | 30 | |
$ 30.01 – $33.36 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | 30.01 | |
Exercise price range, upper limit (in dollars per share) | $ 33.36 | |
Stock Options | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 2,293,020 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 3 years 9 months | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 19.58 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 1,693,244 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 22.21 | |
Stock Options | $ 12.15 – $20.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 887,935 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 7 years 7 months | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 12.82 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 288,159 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 14.23 | |
Stock Options | $ 20.01 – $25.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 726,751 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 2 years | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 22.20 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 726,751 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 22.20 | |
Stock Options | $ 25.01 – $30.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 673,838 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 1 year 2 months | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 25.56 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 673,838 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 25.56 | |
Stock Options | $ 30.01 – $33.36 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 4,496 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 2 years 11 months | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 33.36 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 4,496 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 33.36 |
Equity Compensation Restricted
Equity Compensation Restricted Stock Activity (Details) - Restricted Stock and Restricted Stock Units (RSUs) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 731,233 | 776,520 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 15.06 | $ 13.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 367,327 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 17.51 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (366,794) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 15 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (45,820) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 13.11 |
Equity Compensation Performance
Equity Compensation Performance Share Activity (Details) - Performance Shares - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 660,955 | 457,879 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 13.93 | $ 12.33 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 205,164 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 17.48 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (2,088) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 12.82 |
Equity Compensation Assumptions
Equity Compensation Assumptions (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.40% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 39.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.31% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 9 months |
Accumulated Other Comprehensi80
Accumulated Other Comprehensive Income (Loss) by Component (Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 48,502 | $ (18,216) | $ 36,870 | $ (19,335) |
OCI before reclassifications | (22,019) | 24,496 | (10,506) | 25,704 |
Amount reclassified from accumulated OCI | 576 | (247) | 695 | (336) |
Other Comprehensive Income (Loss) | (21,443) | 24,249 | (9,811) | 25,368 |
Ending Balance | 27,059 | 6,033 | 27,059 | 6,033 |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 59,085 | (28,352) | 50,376 | (26,199) |
OCI before reclassifications | (25,407) | 37,163 | (16,698) | 35,010 |
Amount reclassified from accumulated OCI | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | (25,407) | 37,163 | (16,698) | 35,010 |
Ending Balance | 33,678 | 8,811 | 33,678 | 8,811 |
Accumulated Long-Term Notes Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,505) | 20,474 | (4,612) | 17,372 |
OCI before reclassifications | 1,969 | (10,852) | 5,076 | (7,750) |
Amount reclassified from accumulated OCI | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 1,969 | (10,852) | 5,076 | (7,750) |
Ending Balance | 464 | 9,622 | 464 | 9,622 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (7,699) | (11,543) | (7,652) | (11,248) |
OCI before reclassifications | 291 | (480) | 373 | (985) |
Amount reclassified from accumulated OCI | (1) | 54 | (130) | 264 |
Other Comprehensive Income (Loss) | 290 | (426) | 243 | (721) |
Ending Balance | (7,409) | (11,969) | (7,409) | (11,969) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,379) | 1,205 | (1,242) | 740 |
OCI before reclassifications | 1,128 | (1,335) | 743 | (571) |
Amount reclassified from accumulated OCI | 577 | (301) | 825 | (600) |
Other Comprehensive Income (Loss) | 1,705 | (1,636) | 1,568 | (1,171) |
Ending Balance | $ 326 | $ (431) | $ 326 | $ (431) |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive Income (Loss) by Component (Reclassified Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net Sales | $ 246,152 | $ 233,517 | $ 483,212 | $ 465,240 |
Cost of Products Sold | (178,806) | (168,495) | (349,349) | (335,073) |
Amortization of prior service costs and unrecognized gains | (73,763) | (75,721) | (145,027) | (148,234) |
Income tax provision | (2,975) | (2,175) | (5,325) | (4,775) |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service costs and unrecognized gains | (1) | 54 | (130) | 264 |
Income tax provision | 0 | 0 | 0 | 0 |
Net loss from Continuing Operations | (1) | 54 | (130) | 264 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes | 638 | (315) | 914 | (638) |
Income tax provision | (61) | 14 | (89) | 38 |
Net loss from Continuing Operations | 577 | (301) | 825 | (600) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency forward contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net Sales | (209) | (166) | (234) | (234) |
Cost of Products Sold | $ 429 | $ (481) | $ 680 | $ (872) |
Charges Related To Restructur82
Charges Related To Restructuring Activities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | $ 1,946,000 | $ 4,005,000 | $ 4,005,000 | ||
Charges | 344,000 | 401,000 | $ 4,987,000 | 745,000 | $ 8,270,000 |
Payments | 1,014,000 | 2,460,000 | 3,474,000 | 4,800,000 | |
Ending Balance | 1,276,000 | 1,946,000 | 1,276,000 | ||
Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 1,799,000 | 3,704,000 | 3,704,000 | ||
Charges | 479,000 | 401,000 | |||
Payments | 1,043,000 | 2,306,000 | |||
Ending Balance | 1,235,000 | 1,799,000 | 1,235,000 | ||
Contract Termination | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 147,000 | 301,000 | 301,000 | ||
Charges | 0 | ||||
Restructuring Reserve, Accrual Adjustment | (135,000) | ||||
Payments | 29,000 | 154,000 | |||
Ending Balance | 41,000 | 147,000 | 41,000 | ||
NA/HME | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 949,000 | 2,606,000 | 2,606,000 | ||
Charges | 97,000 | $ 3,928,000 | 86,000 | 6,170,000 | |
Restructuring Reserve, Accrual Adjustment | (11,000) | ||||
Payments | 535,000 | 1,754,000 | |||
Ending Balance | 403,000 | 949,000 | 403,000 | ||
NA/HME | Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 839,000 | 2,439,000 | 2,439,000 | ||
Charges | 124,000 | 97,000 | 5,522,000 | ||
Payments | 601,000 | 1,697,000 | |||
Ending Balance | 362,000 | 839,000 | 362,000 | ||
NA/HME | Contract Termination | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 110,000 | 167,000 | 167,000 | ||
Charges | 0 | 648,000 | |||
Restructuring Reserve, Accrual Adjustment | (135,000) | ||||
Payments | (66,000) | 57,000 | |||
Ending Balance | 41,000 | 110,000 | 41,000 | ||
Europe | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 383,000 | 383,000 | |||
Payments | 232,000 | 435,000 | |||
Europe | Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 249,000 | 249,000 | |||
Charges | 108,000 | ||||
Payments | 195,000 | 338,000 | |||
Europe | Contract Termination | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 134,000 | 134,000 | |||
Charges | 0 | 0 | |||
Payments | 37,000 | 97,000 | |||
Asia/Pacific | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 247,000 | 11,000 | |||
Payments | 247,000 | 11,000 | |||
Asia/Pacific | Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 247,000 | ||||
Payments | 247,000 | 11,000 | |||
Asia/Pacific | Contract Termination | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges | 0 | 0 | |||
Payments | 0 | 0 | |||
All Other | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 756,000 | 1,016,000 | 1,016,000 | ||
Payments | 260,000 | ||||
Ending Balance | 756,000 | 756,000 | 756,000 | ||
All Other | Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 756,000 | 1,016,000 | 1,016,000 | ||
Payments | 260,000 | ||||
Ending Balance | 756,000 | 756,000 | 756,000 | ||
All Other | Contract Termination | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 0 | 0 | 0 | ||
Payments | 0 | ||||
Ending Balance | 0 | 0 | 0 | ||
Europe | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 241,000 | ||||
Ending Balance | 117,000 | 241,000 | 117,000 | ||
Europe | Severance | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 204,000 | ||||
Charges | 108,000 | 293,000 | 401,000 | $ 1,204,000 | |
Ending Balance | 117,000 | 204,000 | 117,000 | ||
Europe | Contract Termination | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 37,000 | ||||
Ending Balance | $ 0 | $ 37,000 | $ 0 |
Charges Related To Restructur83
Charges Related To Restructuring Activities Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 344,000 | $ 401,000 | $ 4,987,000 | $ 745,000 | $ 8,270,000 |
Restructuring and Related Activities, Expected Payout Period | 12 months | ||||
Payments | (1,014,000) | (2,460,000) | $ (3,474,000) | (4,800,000) | |
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 479,000 | 401,000 | |||
Payments | (1,043,000) | (2,306,000) | |||
Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 0 | ||||
Restructuring Reserve, Accrual Adjustment | (135,000) | ||||
Payments | (29,000) | (154,000) | |||
Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments | (232,000) | (435,000) | |||
Europe | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 108,000 | ||||
Payments | (195,000) | (338,000) | |||
Europe | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 0 | 0 | |||
Payments | (37,000) | (97,000) | |||
Asia/Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 247,000 | 11,000 | |||
Payments | (247,000) | (11,000) | |||
Asia/Pacific | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 247,000 | ||||
Payments | (247,000) | (11,000) | |||
Asia/Pacific | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 0 | 0 | |||
Payments | 0 | 0 | |||
NA/HME | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 97,000 | 3,928,000 | 86,000 | 6,170,000 | |
Restructuring Reserve, Accrual Adjustment | (11,000) | ||||
Payments | (535,000) | (1,754,000) | |||
NA/HME | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 124,000 | 97,000 | 5,522,000 | ||
Payments | (601,000) | (1,697,000) | |||
NA/HME | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 0 | 648,000 | |||
Restructuring Reserve, Accrual Adjustment | (135,000) | ||||
Payments | 66,000 | (57,000) | |||
Europe | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | 108,000 | 293,000 | 401,000 | 1,204,000 | |
All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments | (260,000) | ||||
All Other | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments | (260,000) | ||||
All Other | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Payments | 0 | ||||
Asia/Pacific | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 247,000 | $ 545,000 | 258,000 | 896,000 | |
Asia/Pacific | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Charges | $ 11,000 | $ 258,000 | $ 896,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Valuation Allowance [Line Items] | ||||
Effective income tax rate, continuing operations | (21.90%) | (10.20%) | (21.00%) | (13.40%) |
U.S. statutory income tax rate | 21.00% | 35.00% |
Net Earnings (Loss) Per Commo85
Net Earnings (Loss) Per Common Share Computation of Basic and Diluted Net Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Net Earnings (Loss) per Share—Basic | |||||
Average common shares outstanding | 33,169 | 32,833 | 33,040 | 32,654 | |
Net Loss | $ (16,543) | $ (23,508) | $ (30,651) | $ (40,288) | |
Net earnings (loss) per common share | $ (0.50) | $ (0.72) | $ (0.93) | $ (1.23) | |
Net Earnings (Loss) per Share—Assuming Dilution | |||||
Average common shares outstanding | 33,169 | 32,833 | 33,040 | 32,654 | |
Stock options and awards | 827 | 360 | 827 | 293 | |
Average common shares assuming dilution | 33,996 | 33,193 | 33,867 | 32,947 | |
Net Loss | $ (16,543) | $ (23,508) | $ (30,651) | $ (40,288) | |
Net earnings (loss) per per common share—assuming dilution (in dollars per share) | [1] | $ (0.50) | $ (0.72) | $ (0.93) | $ (1.23) |
[1] | Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss. |
Net Earnings (Loss) Per Commo86
Net Earnings (Loss) Per Common Share Textuals (Details) - Stock Options - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 329,315 | 1,353,144 | ||
Antidilutive share granted, average exercise price | $ 25.79 | $ 25.79 | $ 25.79 | $ 25.79 |
Fair value stock price | $ 18.09 | $ 13.14 | $ 17.87 | $ 12.57 |
Concentration Of Credit Risk (D
Concentration Of Credit Risk (Details) | Jun. 30, 2018USD ($) |
Risks and Uncertainties [Abstract] | |
Retained Recourse Obligation For Events Of Default Under Contracts | $ 2,088,000 |
Events of Default Under Contract by Third Party | $ 16,281,000 |
Derivatives Notional Amounts -
Derivatives Notional Amounts - Designated as Hedges (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 15,882 | $ 13,650 |
Gain (Loss) | 427 | (78) |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 102,228 | 187,800 |
Unrealized Gain (Loss) | 407 | (1,312) |
USD / AUD | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 2,580 | 3,960 |
Unrealized Gain (Loss) | 161 | 44 |
USD / CAD | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 17,428 | 33,344 |
Unrealized Gain (Loss) | (80) | 115 |
USD / CNY | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 2,016 | 4,027 |
Unrealized Gain (Loss) | 21 | 61 |
USD / EUR | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 40,266 | 72,259 |
Unrealized Gain (Loss) | 851 | (558) |
USD / GBP | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 2,468 | 4,640 |
Unrealized Gain (Loss) | (10) | (124) |
USD / NZD | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 5,910 | 9,300 |
Unrealized Gain (Loss) | (105) | 11 |
USD / SEK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 1,052 | 0 |
Unrealized Gain (Loss) | 122 | 0 |
USD / MXP | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 3,279 | 6,461 |
Unrealized Gain (Loss) | (12) | (158) |
EUR / GBP | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 16,722 | 32,248 |
Unrealized Gain (Loss) | (461) | (682) |
EUR / SEK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 3,802 | 7,732 |
Unrealized Gain (Loss) | 145 | 39 |
EUR / NOK | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 36 | 0 |
Gain (Loss) | (1) | 0 |
EUR / NOK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 2,289 | 4,521 |
Unrealized Gain (Loss) | (59) | 68 |
EUR / NZD | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 1,403 | 2,855 |
Unrealized Gain (Loss) | (10) | (8) |
DKK / SEK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 3,013 | 6,453 |
Unrealized Gain (Loss) | $ (156) | $ (120) |
Derivatives Notional Amounts 89
Derivatives Notional Amounts - Not Designated as Hedges (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative [Line Items] | |||||
Notional Amount | $ 15,882 | $ 15,882 | $ 13,650 | ||
Gain (Loss) | 427 | (78) | |||
Forward exchange contracts—net | |||||
Derivative [Line Items] | |||||
Gain (Loss) | 197 | $ 52 | 427 | $ 117 | |
AUD / USD | |||||
Derivative [Line Items] | |||||
Notional Amount | 2,818 | 2,818 | 2,750 | ||
Gain (Loss) | 69 | (77) | |||
EUR / USD | |||||
Derivative [Line Items] | |||||
Notional Amount | 7,695 | 7,695 | 0 | ||
Gain (Loss) | 472 | 0 | |||
NZD / USD | |||||
Derivative [Line Items] | |||||
Notional Amount | 0 | 0 | 3,300 | ||
Gain (Loss) | 0 | (53) | |||
EUR / AUD | |||||
Derivative [Line Items] | |||||
Notional Amount | 2,894 | 2,894 | 4,000 | ||
Gain (Loss) | (87) | 43 | |||
AUD / NZD | |||||
Derivative [Line Items] | |||||
Notional Amount | 2,439 | 2,439 | 3,600 | ||
Gain (Loss) | (26) | 9 | |||
EUR / NOK | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 36 | 36 | 0 | ||
Gain (Loss) | $ (1) | $ 0 |
Derivatives Balance Sheet Locat
Derivatives Balance Sheet Location (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 2,136 | $ 730 |
Other Current Assets | Foreign currency forward contracts | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1,596 | 678 |
Other Current Assets | Foreign currency forward contracts | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 540 | 52 |
Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1,302 | 2,120 |
Accrued Expenses | Foreign currency forward contracts | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1,189 | 1,990 |
Accrued Expenses | Foreign currency forward contracts | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 113 | $ 130 |
Derivatives Gain (Loss) in Stat
Derivatives Gain (Loss) in Statement of Finacial Position (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) | $ 638,000 | $ (315,000) | |||
Foreign currency forward contracts | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | 1,128,000 | (1,335,000) | $ 743,000 | $ (571,000) | |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (577,000) | 301,000 | (825,000) | 600,000 | |
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | (1,000) | 0 | |
Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) | 427,000 | $ (78,000) | |||
Not Designated as Hedging Instrument [Member] | Foreign currency forward contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) | $ 197,000 | $ 52,000 | $ 427,000 | $ 117,000 |
Derivatives Narrative (Details)
Derivatives Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Derivative [Line Items] | ||||||
Convertible Debt 2022 Conversion Feature, Initial Fair Value | $ 28,859,000 | $ 28,859,000 | ||||
Proceeds from Issuance of Warrants | 0 | $ 14,100,000 | $ 12,376,000 | |||
Foreign currency forward contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivatives, matured during period | 50,475,000 | $ 43,692,000 | ||||
Selling, General and Administrative Expenses | Foreign currency forward contracts | ||||||
Derivative [Line Items] | ||||||
Gain recognized in income | 197,000 | 52,000 | $ 427,000 | 117,000 | ||
Minimum | ||||||
Derivative [Line Items] | ||||||
Derivative, percentage of forcasted transactions with currency rate exposure | 50.00% | |||||
Maximum | ||||||
Derivative [Line Items] | ||||||
Derivative, percentage of forcasted transactions with currency rate exposure | 90.00% | |||||
Cash Flow Hedging [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) | (638,000) | 315,000 | ||||
Cash Flow Hedging [Member] | Sales [Member] | ||||||
Derivative [Line Items] | ||||||
Loss on derivative | (209,000) | (166,000) | ||||
Cash Flow Hedging [Member] | Cost of Sales [Member] | ||||||
Derivative [Line Items] | ||||||
Gain recognized in income | $ 481,000 | |||||
Loss on derivative | (429,000) | |||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | ||||||
Derivative [Line Items] | ||||||
Convertible due 2021 - Bond Hedge, Initial Fair Value | 27,975,000 | $ 27,975,000 | ||||
Convertible Debt Conversion Feature, Initial Fair Value | (34,480,000) | (34,480,000) | ||||
Debt Instrument, Face Amount | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 | |||
Interest rate (as a percent) | 5.00% | 5.00% | ||||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | ||||||
Derivative [Line Items] | ||||||
Proceeds from Issuance of Warrants | $ 14,100,000 | $ 14,100,000 | ||||
Convertible due 2022 - Bond Hedge, Fair Value at Issuance | $ 24,780,000 | 24,780,000 | ||||
Debt Instrument, Face Amount | $ 120,000,000 | $ 120,000,000 | $ 120,000,000 | |||
Interest rate (as a percent) | 4.50% | 4.50% |
Derivatives Fair Value of Conve
Derivatives Fair Value of Convertible Debt Hedges (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Convertible 2022 note hedge asset | $ 54,858,000 | $ 54,858,000 | $ 46,915,000 | ||
Convertible 2021 note hedge asset | 54,490,000 | 54,490,000 | 46,680,000 | ||
Fair Values Convertible Debt Hedges, Net | (12,849,000) | (12,849,000) | |||
Fair Values Convertible Debt Hedges, Gain (Loss) | 21,000 | $ (1,051,000) | 124,000 | $ (150,000) | |
Fair Value, Inputs, Level 2 | Convertible Debt Conversion Feature [Member] | Fair Value, Measurements, Recurring | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Convertible 2021 debt conversion liability | 61,136,000 | 61,136,000 | 53,154,000 | ||
Fair Value, Inputs, Level 2 | Convertible Debt 2022 Conversion Feature [Domain] | Fair Value, Measurements, Recurring | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Convertible Debt Conversion Feature | (61,061,000) | (61,061,000) | (53,414,000) | ||
Fair Value, Inputs, Level 2 | Convertible Debt Bond Hedge [Member] | Fair Value, Measurements, Recurring | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Convertible 2022 note hedge asset | 54,858,000 | 54,858,000 | 46,915,000 | ||
Convertible 2021 note hedge asset | 54,490,000 | 54,490,000 | 46,680,000 | ||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Convertible Debt Conversion Feature | (61,061,000) | (61,061,000) | (53,414,000) | ||
Convertible Debt Conversion Feature Gain (Loss) | (5,837,000) | (4,392,000) | (7,647,000) | (4,392,000) | |
Convertible Debt Note Hedge Gain (Loss) | 5,571,000 | 3,802,000 | 7,810,000 | 3,802,000 | |
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Convertible 2021 debt conversion liability | 61,136,000 | 61,136,000 | $ 53,154,000 | ||
Convertible Debt Conversion Feature Gain (Loss) | (5,609,000) | (8,250,000) | (7,982,000) | (1,519,000) | |
Convertible Debt Note Hedge Gain (Loss) | $ 5,896,000 | $ 7,789,000 | $ 7,943,000 | $ 1,959,000 |
Fair Values (Assets and Liabili
Fair Values (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible 2022 note hedge asset | $ 54,858,000 | $ 46,915,000 |
Convertible Debt Bond Hedge [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible 2022 note hedge asset | 54,858,000 | 46,915,000 |
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 834,000 | (1,390,000) |
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Convertible Debt Conversion Feature [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Convertible Debt Conversion Feature [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Convertible Debt Bond Hedge [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | 0 | 0 |
Convertible Debt Bond Hedge [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities), at fair value, net | $ 0 | $ 0 |
Fair Values (Details of Book Va
Fair Values (Details of Book Value and Fair Value of Financial Instruments) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible due 2021 - Bond Hedge | $ 54,858,000 | $ 46,915,000 | ||
Cash and cash equivalents | 122,398,000 | 176,528,000 | $ 160,082,000 | $ 124,234,000 |
Convertible 2021 note hedge asset | 54,490,000 | 46,680,000 | ||
Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 122,398,000 | 176,528,000 | ||
Other investments | 90,000 | 103,000 | ||
Installment receivables, net of reserves | 1,577,000 | 1,809,000 | ||
Long-term debt (including current maturities of long-term debt) | (249,002,000) | (243,445,000) | ||
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 122,398,000 | 176,528,000 | ||
Other investments | 90,000 | 103,000 | ||
Installment receivables, net of reserves | 1,577,000 | 1,809,000 | ||
Long-term debt (including current maturities of long-term debt) | (319,103,000) | (294,173,000) | ||
Convertible Debt 2022 Note Hedge [Domain] | Other Long-Term Assets [Member] | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets | 54,490,000 | 46,680,000 | ||
Convertible Debt 2022 Note Hedge [Domain] | Other Long-Term Assets [Member] | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets | 54,490,000 | 46,680,000 | ||
Convertible Debt 2021 Note Hedge [Domain] | Other Long-Term Assets [Member] | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets | 54,858,000 | 46,915,000 | ||
Convertible Debt 2021 Note Hedge [Domain] | Other Long-Term Assets [Member] | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets | 54,858,000 | 46,915,000 | ||
Convertible Debt 2022 Conversion Feature [Domain] | Other Debt Obligations [Member] | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liabilities | (61,061,000) | 53,414,000 | ||
Convertible Debt 2022 Conversion Feature [Domain] | Other Debt Obligations [Member] | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liabilities | (61,061,000) | 53,414,000 | ||
Foreign currency forward contracts | Other Current Assets | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets | 2,136,000 | 730,000 | ||
Foreign currency forward contracts | Other Current Assets | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets | 2,136,000 | 730,000 | ||
Foreign currency forward contracts | Accrued Expenses | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liabilities | (1,302,000) | (2,120,000) | ||
Foreign currency forward contracts | Accrued Expenses | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liabilities | (1,302,000) | (2,120,000) | ||
Convertible Debt Conversion Feature [Member] | Other Debt Obligations [Member] | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liabilities | (61,136,000) | 53,154,000 | ||
Convertible Debt Conversion Feature [Member] | Other Debt Obligations [Member] | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liabilities | (61,136,000) | 53,154,000 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Foreign currency forward contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 0 | 0 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Convertible Debt 2022 Conversion Feature [Domain] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 0 | 0 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Convertible Debt Bond Hedge [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 0 | 0 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt 2022 Conversion Feature [Domain] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible Debt Conversion Feature | (61,061,000) | (53,414,000) | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Foreign currency forward contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 834,000 | (1,390,000) | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt Conversion Feature [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible 2021 debt conversion liability | 61,136,000 | 53,154,000 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt Bond Hedge [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible due 2021 - Bond Hedge | 54,858,000 | 46,915,000 | ||
Convertible 2021 note hedge asset | 54,490,000 | 46,680,000 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Foreign currency forward contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 0 | 0 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Convertible Debt 2022 Conversion Feature [Domain] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 0 | 0 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Convertible Debt Bond Hedge [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | $ 0 | $ 0 |
Business Segments (Information
Business Segments (Information by Segment) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 246,152,000 | $ 233,517,000 | $ 483,212,000 | $ 465,240,000 | ||
Restructuring Reserve | 1,276,000 | $ 1,946,000 | 1,276,000 | $ 4,005,000 | ||
Net Sales | 246,152,000 | 233,517,000 | 483,212,000 | 465,240,000 | ||
Charges | (344,000) | (401,000) | (4,987,000) | (745,000) | (8,270,000) | |
Operating Income (Loss) | (6,761,000) | (15,686,000) | (11,909,000) | (26,337,000) | ||
Loss (gain) on Convertible Debt Derivatives | (21,000) | 1,051,000 | (124,000) | 150,000 | ||
Interest Revenue (Expense), Net | (6,828,000) | (4,596,000) | (13,541,000) | (9,026,000) | ||
Earnings (loss) before income taxes | (13,568,000) | (21,333,000) | (25,326,000) | (35,513,000) | ||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 138,896,000 | 128,485,000 | 270,210,000 | 247,993,000 | ||
Charges | (108,000) | (514,000) | (401,000) | (1,204,000) | ||
Operating Income (Loss) | 5,171,000 | 7,077,000 | 11,765,000 | 12,177,000 | ||
NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 403,000 | 949,000 | 403,000 | 2,606,000 | ||
Restructuring Reserve, Accrual Adjustment | (11,000) | |||||
Net Sales | 79,867,000 | 77,689,000 | 159,649,000 | 161,951,000 | ||
Charges | (97,000) | (3,928,000) | (86,000) | (6,170,000) | ||
Operating Income (Loss) | (8,420,000) | (12,395,000) | (16,558,000) | (21,821,000) | ||
IPG | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 13,704,000 | 15,320,000 | 28,591,000 | 31,693,000 | ||
Operating Income (Loss) | 1,163,000 | 1,472,000 | 2,761,000 | 3,370,000 | ||
Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 13,685,000 | 12,023,000 | 24,762,000 | 23,603,000 | ||
Charges | (247,000) | (545,000) | (258,000) | (896,000) | ||
Operating Income (Loss) | 1,570,000 | (118,000) | 2,542,000 | (548,000) | ||
All Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 756,000 | 756,000 | 756,000 | 1,016,000 | ||
Operating Income (Loss) | (5,901,000) | (6,735,000) | (11,674,000) | (11,245,000) | ||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 383,000 | |||||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 117,000 | 241,000 | 117,000 | |||
Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Charges | (247,000) | (11,000) | ||||
Operating Segments [Member] | NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 79,867,000 | 77,689,000 | 159,649,000 | 161,951,000 | ||
Operating Segments [Member] | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 138,896,000 | 128,485,000 | 270,210,000 | 247,993,000 | ||
Operating Segments [Member] | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 13,685,000 | 12,023,000 | 24,762,000 | 23,603,000 | ||
Intersegment revenues | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 34,164,000 | 29,659,000 | 67,273,000 | 60,057,000 | ||
Intersegment revenues | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 4,877,000 | 3,738,000 | 8,734,000 | 7,413,000 | ||
Intersegment revenues | NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 23,804,000 | 21,050,000 | 47,307,000 | 43,145,000 | ||
Intersegment revenues | IPG | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 229,000 | 975,000 | 318,000 | 1,743,000 | ||
Intersegment revenues | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Net Sales | 5,254,000 | 3,896,000 | 10,914,000 | 7,756,000 | ||
Severance | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 1,235,000 | 1,799,000 | 1,235,000 | 3,704,000 | ||
Charges | (479,000) | (401,000) | ||||
Severance | NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 362,000 | 839,000 | 362,000 | 2,439,000 | ||
Charges | (124,000) | (97,000) | (5,522,000) | |||
Severance | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Charges | (11,000) | (258,000) | (896,000) | |||
Severance | All Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 756,000 | 756,000 | 756,000 | 1,016,000 | ||
Severance | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 249,000 | |||||
Charges | (108,000) | |||||
Severance | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 117,000 | 204,000 | 117,000 | |||
Charges | (108,000) | (293,000) | (401,000) | (1,204,000) | ||
Severance | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Charges | (247,000) | |||||
Contract Termination | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 41,000 | 147,000 | 41,000 | 301,000 | ||
Restructuring Reserve, Accrual Adjustment | (135,000) | |||||
Charges | 0 | |||||
Contract Termination | NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 41,000 | 110,000 | 41,000 | 167,000 | ||
Restructuring Reserve, Accrual Adjustment | (135,000) | |||||
Charges | 0 | (648,000) | ||||
Contract Termination | All Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | ||
Contract Termination | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | $ 134,000 | |||||
Charges | 0 | 0 | ||||
Contract Termination | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Reserve | 0 | 37,000 | 0 | |||
Contract Termination | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Charges | 0 | $ 0 | ||||
Lifestyle Products [Domain] | Operating Segments [Member] | NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 31,573,000 | 31,045,000 | 62,207,000 | 63,294,000 | ||
Lifestyle Products [Domain] | Operating Segments [Member] | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 69,621,000 | 64,128,000 | 137,612,000 | 125,932,000 | ||
Lifestyle Products [Domain] | Operating Segments [Member] | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 2,736,000 | 2,637,000 | 5,001,000 | 4,873,000 | ||
Mobility and Seating [Domain] | Operating Segments [Member] | NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 31,063,000 | 27,170,000 | 60,228,000 | 54,061,000 | ||
Mobility and Seating [Domain] | Operating Segments [Member] | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 58,411,000 | 53,526,000 | 110,184,000 | 100,458,000 | ||
Mobility and Seating [Domain] | Operating Segments [Member] | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 8,448,000 | 7,108,000 | 15,339,000 | 13,716,000 | ||
Respiratory Therapy [Domain] | Operating Segments [Member] | NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 16,959,000 | 18,826,000 | 36,691,000 | 43,309,000 | ||
Respiratory Therapy [Domain] | Operating Segments [Member] | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 6,480,000 | 6,634,000 | 13,242,000 | 13,750,000 | ||
Respiratory Therapy [Domain] | Operating Segments [Member] | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 522,000 | 306,000 | 646,000 | 649,000 | ||
Other [Domain] | Operating Segments [Member] | NA/HME | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 272,000 | 648,000 | 523,000 | 1,287,000 | ||
Other [Domain] | Operating Segments [Member] | Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 4,384,000 | 4,197,000 | 9,172,000 | 7,853,000 | ||
Other [Domain] | Operating Segments [Member] | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 1,532,000 | 1,301,000 | 3,042,000 | 2,519,000 | ||
Continuing Care [Domain] | Operating Segments [Member] | IPG | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 13,704,000 | 15,320,000 | 28,591,000 | 31,693,000 | ||
Continuing Care [Domain] | Operating Segments [Member] | Asia/Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 447,000 | $ 671,000 | $ 734,000 | $ 1,846,000 |