Hanger (HNGR) 10-Q 4 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 27, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Entity File Number	1-10670
Entity Registrant Name	HANGER, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-0904275
Entity Address, Address Line One	10910 Domain Drive, Suite 300
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78758
City Area Code	512
Local Phone Number	777-3800
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	HNGR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		38,109,387
Entity Central Index Key	0000722723
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 147,510	$ 74,419
Accounts receivable, net	121,409	159,359
Inventories	74,108	68,204
Income taxes receivable	5,945
Other current assets	14,489	13,673
Total current assets	363,461	315,655
Non-current assets:
Property, plant and equipment, net	86,637	84,057
Goodwill	271,701	232,244
Other intangible assets, net	19,106	17,952
Deferred income taxes	70,489	70,481
Operating lease right-of-use assets	125,577	110,559
Other assets	15,710	11,305
Total assets	952,681	842,253
Current liabilities:
Current portion of long-term debt	27,791	8,752
Accounts payable	63,630	48,477
Accrued expenses and other current liabilities	72,434	55,825
Accrued compensation related costs	63,511	61,010
Current portion of operating lease liabilities	32,932	34,342
Total current liabilities	260,298	208,406
Long-term liabilities:
Long-term debt, less current portion	493,600	490,121
Operating lease liabilities	106,405	88,418
Other liabilities	60,077	45,804
Total liabilities	920,380	832,749
Commitments and contingencies (Note Q)
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 38,277,423 shares issued and 38,134,602 shares outstanding at 2020, and 37,602,873 shares issued and 37,460,052 shares outstanding at 2019, respectively	383	376
Additional paid-in capital	363,082	354,326
Accumulated other comprehensive loss	(20,400)	(12,551)
Accumulated deficit	(310,068)	(331,951)
Treasury stock, at cost; 142,821 shares at 2020 and 2019, respectively	(696)	(696)
Total shareholders' equity	32,301	9,504
Total liabilities and shareholders' equity	$ 952,681	$ 842,253

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	38,277,423	37,602,873
Common stock, shares outstanding	38,134,602	37,460,052
Treasury stock, shares	142,821	142,821

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net revenues	$ 256,637	$ 279,638	$ 723,810	$ 797,155
Material costs	81,462	92,034	228,675	261,810
Personnel costs	89,727	94,594	252,734	272,795
Other operating costs	29,935	32,771	74,098	100,067
General and administrative expenses	31,371	29,834	91,618	87,474
Professional accounting and legal fees	2,264	3,629	7,409	9,576
Depreciation and amortization	8,803	9,373	26,513	26,906
Income from operations	13,075	17,403	42,763	38,527
Interest expense, net	8,013	8,954	24,918	25,973
Non-service defined benefit plan expense	158	173	474	519
Income before income taxes	4,904	8,276	17,371	12,035
(Benefit) provision for income taxes	(1,911)	2,585	(4,750)	3,260
Net income	$ 6,815	$ 5,691	$ 22,121	$ 8,775
Basic and Diluted Per Common Share Data:
Basic income per share	$ 0.18	$ 0.15	$ 0.58	$ 0.24
Weighted average shares used to compute basic earnings per common share	38,133,598	37,349,144	37,878,753	37,218,234
Diluted income per share	$ 0.18	$ 0.15	$ 0.57	$ 0.23
Weighted average shares used to compute diluted earnings per common share	38,637,536	37,986,860	38,491,965	37,921,767

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income	$ 6,815	$ 5,691	$ 22,121	$ 8,775
Other comprehensive income (loss):
Unrealized gain (loss) on cash flow hedges, net of tax provision (benefit) of $488, ($516), ($2,509), and ($2,916), respectively	1,542	(1,641)	(7,933)	(9,265)
Unrealized gain on defined benefit plan, net of tax provision of $9, $2, $27, and $6, respectively	28	7	84	19
Total other comprehensive income (loss)	1,570	(1,634)	(7,849)	(9,246)
Comprehensive income (loss)	$ 8,385	$ 4,057	$ 14,272	$ (471)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Unrealized gain (loss) on cash flow hedges tax	$ 488	$ (516)	$ (2,509)	$ (2,916)
Unrealized gain on defined benefit plan tax	$ 9	$ 2	$ 27	$ 6

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Common StockAdjusted Balance	Common Stock	Additional Paid-in CapitalAdjusted Balance	Additional Paid-in Capital	Accumulated Other Comprehensive LossAdjusted Balance	Accumulated Other Comprehensive Loss	Accumulated DeficitCumulative effect of a change in accounting	Accumulated DeficitAdjusted Balance	Accumulated Deficit	Treasury StockAdjusted Balance	Treasury Stock	Cumulative effect of a change in accounting	Adjusted Balance	Total
Balance (ASU 2016-02) at Dec. 31, 2018							$ 1,547					$ 1,547
Balance at Dec. 31, 2018	$ 371	$ 371	$ 343,955	$ 343,955	$ (4,531)	$ (4,531)		$ (359,476)	$ (361,023)	$ (696)	$ (696)		$ (20,377)	$ (21,924)
Balance (in shares) at Dec. 31, 2018	36,921	36,921
Increase (Decrease) in Stockholders' Equity
Net income (loss)									(6,951)					(6,951)
Share based compensation expense				3,265										3,265
Issuance of common stock upon vesting of restricted stock units		$ 3		(3)
Issuance of common stock upon vesting of restricted stock units (in shares)		350
Effect of shares withheld to cover taxes				(3,626)										(3,626)
Total other comprehensive loss						(2,930)								(2,930)
Balance at Mar. 31, 2019		$ 374		343,591		(7,461)			(366,427)		(696)			(30,619)
Balance (in shares) at Mar. 31, 2019		37,271
Balance (ASU 2016-02) at Dec. 31, 2018							1,547					1,547
Balance at Dec. 31, 2018	$ 371	$ 371	343,955	343,955	(4,531)	(4,531)		(359,476)	(361,023)	(696)	(696)		(20,377)	(21,924)
Balance (in shares) at Dec. 31, 2018	36,921	36,921
Increase (Decrease) in Stockholders' Equity
Net income (loss)														8,775
Total other comprehensive loss														(9,246)
Balance at Sep. 30, 2019		$ 375		350,579		(13,777)			(350,701)		(696)			(14,220)
Balance (in shares) at Sep. 30, 2019		37,362
Balance at Mar. 31, 2019		$ 374		343,591		(7,461)			(366,427)		(696)			(30,619)
Balance (in shares) at Mar. 31, 2019		37,271
Increase (Decrease) in Stockholders' Equity
Net income (loss)									10,035					10,035
Share based compensation expense				3,450										3,450
Issuance of common stock upon vesting of restricted stock units		$ 1		(1)
Issuance of common stock upon vesting of restricted stock units (in shares)		64
Effect of shares withheld to cover taxes				(28)										(28)
Total other comprehensive loss						(4,682)								(4,682)
Balance at Jun. 30, 2019		$ 375		347,012		(12,143)			(356,392)		(696)			(21,844)
Balance (in shares) at Jun. 30, 2019		37,335
Increase (Decrease) in Stockholders' Equity
Net income (loss)									5,691					5,691
Share based compensation expense				3,374										3,374
Issuance in connection with the exercise of stock options				249										249
Issuance in connection with the exercise of stock options (in shares)		20
Issuance of common stock upon vesting of restricted stock units (in shares)		7
Effect of shares withheld to cover taxes				(56)										(56)
Total other comprehensive loss						(1,634)								(1,634)
Balance at Sep. 30, 2019		$ 375		350,579		(13,777)			(350,701)		(696)			(14,220)
Balance (in shares) at Sep. 30, 2019		37,362
Balance (ASU 2016-13) at Dec. 31, 2019							(238)					(238)
Balance at Dec. 31, 2019	$ 376	$ 376	354,326	354,326	(12,551)	(12,551)		(332,189)	(331,951)	(696)	(696)		9,266	$ 9,504
Balance (in shares) at Dec. 31, 2019	37,460	37,460												37,460,052
Increase (Decrease) in Stockholders' Equity
Net income (loss)									(15,748)					$ (15,748)
Share based compensation expense				3,501										3,501
Issuance of common stock upon vesting of restricted stock units		$ 4		(4)
Issuance of common stock upon vesting of restricted stock units (in shares)		354
Effect of shares withheld to cover taxes				(4,146)										(4,146)
Total other comprehensive loss						(8,873)								(8,873)
Balance at Mar. 31, 2020		$ 380		353,677		(21,424)			(347,937)		(696)			(16,000)
Balance (in shares) at Mar. 31, 2020		37,814
Balance (ASU 2016-13) at Dec. 31, 2019							$ (238)					$ (238)
Balance at Dec. 31, 2019	$ 376	$ 376	$ 354,326	354,326	$ (12,551)	(12,551)		$ (332,189)	(331,951)	$ (696)	(696)		$ 9,266	$ 9,504
Balance (in shares) at Dec. 31, 2019	37,460	37,460												37,460,052
Increase (Decrease) in Stockholders' Equity
Net income (loss)														$ 22,121
Total other comprehensive loss														(7,849)
Balance at Sep. 30, 2020		$ 383		363,082		(20,400)			(310,068)		(696)			$ 32,301
Balance (in shares) at Sep. 30, 2020		38,135												38,134,602
Balance at Mar. 31, 2020		$ 380		353,677		(21,424)			(347,937)		(696)			$ (16,000)
Balance (in shares) at Mar. 31, 2020		37,814
Increase (Decrease) in Stockholders' Equity
Net income (loss)									31,054					31,054
Share based compensation expense				8,984										8,984
Issuance in connection with the exercise of stock options				38										38
Issuance in connection with the exercise of stock options (in shares)		3
Issuance of common stock upon vesting of restricted stock units		$ 3		(3)
Issuance of common stock upon vesting of restricted stock units (in shares)		316
Effect of shares withheld to cover taxes				(2,682)										(2,682)
Total other comprehensive loss						(546)								(546)
Balance at Jun. 30, 2020		$ 383		360,014		(21,970)			(316,883)		(696)			20,848
Balance (in shares) at Jun. 30, 2020		38,133
Increase (Decrease) in Stockholders' Equity
Net income (loss)									6,815					6,815
Share based compensation expense				3,081										3,081
Issuance of common stock upon vesting of restricted stock units (in shares)		2
Effect of shares withheld to cover taxes				(13)										(13)
Total other comprehensive loss						1,570								1,570
Balance at Sep. 30, 2020		$ 383		$ 363,082		$ (20,400)			$ (310,068)		$ (696)			$ 32,301
Balance (in shares) at Sep. 30, 2020		38,135												38,134,602

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows provided by operating activities:
Net income	$ 22,121	$ 8,775
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	26,513	26,906
Provision for doubtful accounts	629	284
Share-based compensation expense	15,565	10,089
Deferred income taxes	2,067	(723)
Amortization of debt discounts and issuance costs	1,564	1,202
Gain on sale and disposal of fixed assets	(729)	(1,200)
Changes in operating assets and liabilities:
Accounts receivable, net	39,531	1,914
Inventories	(3,834)	(6,310)
Other current assets and other assets	(3,115)	(1,769)
Income taxes	(6,814)	2,613
Accounts payable	12,912	(1,751)
Accrued expenses and other current liabilities	6,914	(2,144)
Accrued compensation related costs	2,339	(15,583)
Other liabilities	8,016	(1,736)
Operating lease liabilities, net of amortization of right-of-use assets	1,559	(622)
Changes in operating assets and liabilities:	57,508	(25,388)
Net cash provided by operating activities	125,238	19,945
Cash flows used in investing activities
Acquisitions, net of cash acquired	(16,854)	(31,585)
Purchase of property, plant, and equipment	(19,352)	(20,262)
Purchase of therapeutic program equipment leased to third parties under operating leases	(3,194)	(5,165)
Proceeds from sale of property, plant, and equipment	1,578	2,181
Purchase of company-owned life insurance investment	(250)
Net cash used in investing activities	(38,072)	(54,831)
Cash flows used in financing activities:
Borrowings under revolving credit agreement	79,000
Repayment of borrowings under revolving credit agreement	(79,000)
Repayment of term loan	(3,788)	(3,788)
Payment of employee taxes on share-based compensation	(6,841)	(3,710)
Payment on seller notes	(2,200)	(2,688)
Payment of financing lease obligations	(521)	(344)
Payments under vendor financing arrangements	(550)
Payment of debt issuance costs	(214)
Proceeds from the exercise of options	39	249
Net cash used in financing activities	(14,075)	(10,281)
Increase (decrease) in cash and cash equivalents	73,091	(45,167)
Cash and cash equivalents at beginning of period	74,419	95,114
Cash and cash equivalents at end of period	147,510	49,947
Non-cash financing and investing activities:
Seller notes, deferred payment obligations and additional consideration related to acquisitions	29,420	5,053
Purchase of property, plant, and equipment in accounts payable at period end	4,299	3,492
Purchase of property, plant, and equipment through vendor financing		2,200
Right-of-use assets obtained in exchange for finance lease obligations	$ 1,975	$ 282

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies	​ Note A — Organization and Summary of Significant Accounting Policies ​ Description of Business ​ Hanger, Inc. (“we,” “our,” or “us”) is a leading national provider of products and services that assist in enhancing or restoring the physical capabilities of patients with disabilities or injuries. We provide orthotic and prosthetic (“O&P”) services, distribute O&P devices and components, manage O&P networks, and provide therapeutic solutions to patients and businesses in acute, post-acute, and clinic settings. We operate through two segments, Patient Care and Products & Services. ​ Basis of Presentation ​ The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, and, therefore, do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”), as previously filed with the Securities and Exchange Commission (the “SEC”). ​ In our opinion, the information contained herein reflects all adjustments necessary for a fair statement of our results of operations, financial position, and cash flows. All such adjustments are of a normal, recurring nature. The results of operations for the interim periods are not necessarily indicative of those to be expected for the full year. ​ A detailed description of our significant accounting policies and management judgments is contained in our 2019 Form 10-K. ​ Recent Developments Regarding COVID-19 ​ We are subject to risks and uncertainties as a result of the outbreak of the novel coronavirus (“COVID-19”) pandemic (“COVID-19 pandemic”). The extent and duration of the impact of the COVID-19 pandemic on our operations and financial condition are highly uncertain and difficult to predict, as viral infections continue to increase and information is rapidly evolving. We believe that our patients are deferring visits to our O&P clinics as well as elective surgical procedures, both of which impact our business volumes through decreased patient encounters and physician referrals. Furthermore, capital markets and the economy have been disrupted by the COVID-19 pandemic, and it still remains possible that it could cause a recessionary environment impacting the healthcare industry generally, including the O&P industry. The continuing economic disruption has had and could have a continuing material adverse effect on our business, as the duration and extent of state and local government restrictions impacting our patients’ ability or willingness to visit our O&P clinics and those of our customers, is unknown. The United States government has responded with fiscal policy measures intended to support the healthcare industry and economy as a whole, including the passage of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) in March 2020. We continue to monitor the provisions of the CARES Act and their application to us, as well as future governmental policies and their impact on our business; however, the magnitude and overall effectiveness of such policies to us and the economy as a whole remains uncertain. ​ CARES Act ​ The CARES Act established the Public Health and Social Services Emergency Fund, also referred to as the Cares Act Provider Relief Fund, which set aside $175.0 billion to be administered through grants and other mechanisms to hospitals, public entities, not-for-profit entities and Medicare- and Medicaid- enrolled suppliers and institutional providers. The purpose of these funds is to reimburse providers for lost revenue and health-care related expenses that are attributable to the COVID-19 pandemic. In April 2020, the U.S. Department of Health and Human Services (“HHS”) began making payments to healthcare providers from the $175.0 billion appropriation. These are payments, rather than loans, to healthcare providers, and will not need to be repaid. ​ During the second and third quarters of 2020, we recognized a total benefit of $20.6 million in our condensed consolidated statement of operations within Other operating costs for a portion of the grant proceeds we received under the CARES Act (“Grants”) from HHS. We recognize income related to grants on a systematic and rational basis when it becomes probable that we have complied with the terms and conditions of the grant and in the period in which the corresponding costs or income related to the grant are recognized. We recognized the benefit from the Grants within Other operating costs in our Patient Care segment. As of September 30, 2020, we have recorded a liability of $3.4 million within Accrued expenses and other liabilities in the condensed consolidated balance sheet related to proceeds from the Grants for amounts that have not met the recognition criteria in accordance with our accounting policy. ​ The CARES Act also provides for a deferral of the employer portion of payroll taxes incurred during the COVID-19 pandemic through December 2020. The provisions allow us to defer half of such payroll taxes until December 2021 and the remaining half until December 2022. We deferred $7.1 million of payroll taxes within Other liabilities in the condensed consolidated balance sheet as of September 30, 2020. ​ Recently Adopted Accounting Pronouncements ​ In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) ​ In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ​ Recent Accounting Pronouncements, Not Yet Adopted ​ In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share
Earnings Per Share	Note B — Earnings Per Share ​ Basic earnings per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the weighted average number of common shares outstanding during the period plus any potentially dilutive common shares, such as stock options, restricted stock units, and performance-based units calculated using the treasury stock method. Total anti-dilutive shares excluded from diluted earnings per share were 34,379 and 20,202 for the three and nine months ended September 30, 2020, and 10 and zero for the three and nine months ended September 30, 2019. ​ Our Credit Agreement (as defined below) restricts the payment of dividends or other distributions to our shareholders by us or any of our subsidiaries. See Note L - “Debt and Other Obligations” within these condensed consolidated financial statements. ​ The reconciliation of the numerators and denominators used to calculate basic and diluted net income per share are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands except share and per share amounts) 2020 2019 2020 2019 Net income ​ $ 6,815 ​ $ 5,691 ​ $ 22,121 ​ $ 8,775 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ ​ 38,133,598 ​ ​ 37,349,144 ​ ​ 37,878,753 ​ ​ 37,218,234 Effect of potentially dilutive restricted stock units and options ​ ​ 503,938 ​ ​ 637,716 ​ ​ 613,212 ​ ​ 703,533 Weighted average shares outstanding - diluted ​ 38,637,536 ​ 37,986,860 ​ 38,491,965 ​ 37,921,767 ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic income per share ​ $ 0.18 ​ $ 0.15 ​ $ 0.58 ​ $ 0.24 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted income per share ​ $ 0.18 ​ $ 0.15 ​ $ 0.57 ​ $ 0.23 ​

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 30, 2020
Revenue Recognition
Revenue Recognition	Note C — Revenue Recognition ​ Patient Care Segment ​ Revenue in our Patient Care segment is primarily derived from contracts with third party payors for the provision of O&P devices and is recognized upon the transfer of control of promised products or services to the patient at the time the patient receives the device. At, or subsequent to delivery, we issue an invoice to the third party payor, which primarily consists of commercial insurance companies, Medicare, Medicaid, the U.S. Department of Veterans Affairs (the “VA”), and private or patient pay (“Private Pay”) individuals. We recognize revenue for the amounts we expect to receive from payors based on expected contractual reimbursement rates, which are net of estimated contractual discounts and implicit price concessions. These revenue amounts are further revised as claims are adjudicated, which may result in additional disallowances. ​ The following table disaggregates revenue from contracts with customers in our Patient Care segment for the three and nine months ended September 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Patient Care Segment ​ ​ ​ ​ ​ Medicare ​ $ 68,135 ​ $ 72,879 ​ $ 194,052 ​ $ 206,295 Medicaid ​ 34,541 ​ 36,140 ​ 96,612 ​ 103,631 Commercial Insurance / Managed Care (excluding Medicare and Medicaid Managed Care) ​ 75,966 ​ 83,384 ​ 213,234 ​ 232,410 Veterans Administration ​ 19,339 ​ 23,816 ​ 54,057 ​ 64,635 Private Pay ​ 14,683 ​ 14,712 ​ 40,751 ​ 45,729 Total ​ $ 212,664 ​ $ 230,931 ​ $ 598,706 ​ $ 652,700 ​ The impact to revenue related to prior period performance obligations was not material for the three and nine months ended September 30, 2020 and 2019. ​ Products & Services Segment ​ Revenue in our Products & Services segment is derived from the distribution of O&P components and from therapeutic solutions, which includes the leasing and sale of rehabilitation equipment and ancillary consumable supplies combined with equipment maintenance, education, and training. ​ The following table disaggregates revenue from contracts with customers in our Product & Services segment for the three and nine months ended September 30, 2020 and 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Products & Services Segment ​ ​ ​ ​ ​ ​ ​ ​ Distribution services, net of intersegment revenue eliminations ​ $ 32,711 ​ $ 36,653 ​ $ 90,928 ​ $ 107,510 Therapeutic solutions ​ 11,262 ​ 12,054 ​ 34,176 ​ 36,945 Total ​ $ 43,973 ​ $ 48,707 ​ $ 125,104 ​ $ 144,455 ​

Accounts Receivable, Net

Accounts Receivable, Net	9 Months Ended
	Sep. 30, 2020
Accounts Receivable, Net
Accounts Receivable, Net	Note D — Accounts Receivable, Net ​ Accounts receivable, net represents outstanding amounts we expect to collect from the transfer of our products and services. Principally, these amounts are comprised of receivables from Medicare, Medicaid, and commercial insurance plans. Our accounts receivable represents amounts outstanding from our gross charges, net of contractual discounts, sales returns, and other implicit price concessions including estimates for payor disallowances and patient non-payments. ​ We are exposed to credit losses primarily through our accounts receivable. These receivables are short in nature because their due date varies between due upon receipt of invoice and 90 days. We assess our receivables, divide them into similar risk pools, and monitor our ongoing credit exposure through active review of our aging buckets. Our activities include timely account reconciliations, dispute resolution, and payment confirmations. We also employ collection agencies and legal counsel to pursue recovery of defaulted receivables. ​ As part of the new accounting standard discussed in Note A - “Organization and Summary of Significant Accounting Policies,” our expected loss methodology is developed using historical liquidation rates, current and future economic and market conditions, and a review of the current status of our patients and customers' trade accounts receivable balances. We also grouped our receivables into similar risk pools to better measure the risks for each pool. After evaluating the risk for each pool, we determined that additional credit loss risk was immaterial for the Patient Care segment. For the Products & Services segment, an allowance for doubtful accounts is recorded, which is deducted from gross accounts receivable to arrive at “Accounts receivable, net.” As of September 30, 2020, we have considered the current and future economic and market conditions resulting in an increase to the allowance for doubtful accounts by approximately $0.7 million since December 31, 2019. ​ Accounts receivable, net as of September 30, 2020 and December 31, 2019 is comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ As of December 31, 2019 ​ ​ ​ ​ ​ Products & ​ ​ ​ ​ ​ ​ ​ Products & ​ ​ ​ (in thousands) Patient Care Services Consolidated Patient Care Services Consolidated Gross charges before estimates for implicit price concessions ​ $ 157,191 ​ $ 21,765 ​ $ 178,956 ​ $ 202,132 ​ $ 27,551 ​ $ 229,683 Less estimates for implicit price concessions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payor disallowances ​ ​ (47,314) ​ ​ — ​ ​ (47,314) ​ ​ (58,094) ​ ​ — ​ ​ (58,094) Patient non-payments ​ ​ (6,916) ​ ​ — ​ ​ (6,916) ​ ​ (9,589) ​ ​ — ​ ​ (9,589) Accounts receivable, gross ​ 102,961 ​ 21,765 ​ 124,726 ​ 134,449 ​ 27,551 ​ 162,000 Allowance for doubtful accounts ​ — ​ (3,317) ​ (3,317) ​ — ​ (2,641) ​ (2,641) Accounts receivable, net ​ $ 102,961 ​ $ 18,448 ​ $ 121,409 ​ $ 134,449 ​ $ 24,910 ​ $ 159,359 ​

Inventories

Inventories	9 Months Ended
	Sep. 30, 2020
Inventories
Inventories	Note E — Inventories ​ Our inventories are comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Raw materials ​ $ 20,047 ​ $ 20,574 Work in process ​ 15,575 ​ 10,165 Finished goods ​ 38,486 ​ 37,465 Total inventories ​ $ 74,108 ​ $ 68,204 ​

Property, Plant and Equipment,

Property, Plant and Equipment, Net	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment, Net
Property, Plant and Equipment, Net	Note F — Property, Plant, and Equipment, Net ​ Property, plant, and equipment, net were comprised of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Land ​ $ 554 ​ $ 634 Buildings ​ 3,756 ​ 4,110 Furniture and fixtures ​ 14,747 ​ 13,835 Machinery and equipment ​ 25,826 ​ 25,438 Equipment leased to third parties under operating leases ​ 27,510 ​ 29,217 Leasehold improvements ​ 138,450 ​ 131,617 Computers and software ​ 79,484 ​ 75,540 Total property, plant, and equipment, gross ​ ​ 290,327 ​ ​ 280,391 Less: accumulated depreciation and amortization ​ (203,690) ​ (196,334) Total property, plant, and equipment, net ​ $ 86,637 ​ $ 84,057 ​ Total depreciation expense was approximately $7.0 million and $21.4 million for the three and nine months ended September 30, 2020 and $7.7 million and $22.8 million for the three and nine months ended September 30, 2019, respectively. Total amortization of finance right-of-use assets was approximately $0.2 million and $0.5 million for the three and nine months ended September 30, 2020 and $0.1 million and $0.2 million for the three and nine months ended September 30, 2019, respectively.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2020
Acquisitions
Acquisitions	Note G — Acquisitions ​ 2020 Acquisition Activity ​ In the second quarter of 2020, we acquired all of the outstanding equity interests of an O&P business for total consideration of $46.1 million at fair value, of which $16.8 million was cash consideration, net of cash acquired, $21.9 million was issued in the form of notes to the former shareholders, $3.5 million in the form of a deferred payment obligation to the former shareholders and $4.0 million in additional consideration. Of the $21.9 million in notes issued to the former shareholders, approximately $18.1 million of the notes were paid in October 2020 in a lump sum payment and the remaining $3.8 million of the notes are payable in annual installments over a period of three years on the anniversary date of the acquisition. Payments totaling $3.5 million under the deferred payment obligation are due in annual installments beginning in the fourth ​ We accounted for this transaction under the acquisition method of accounting and have reported the results of operations of the acquisition as of the date of the acquisition. We based the estimated fair values of intangible assets on an income approach utilizing primarily discounted cash flow techniques for non-compete agreements and an income approach utilizing the excess earnings method for customer relationships. The income approach utilizes management’s estimates of future operating results and cash flows using a weighted average cost of capital that reflects market participant assumptions. Other significant judgments used in the valuation of tangible assets acquired in the acquisition include estimated selling price of inventory and estimated replacement cost for acquired property, plant, and equipment. For all other assets acquired and liabilities assumed, the fair value reflects the carrying value of the asset or liability due to their short maturity. We recorded the excess of the fair value of the consideration transferred in the acquisition over the fair value of net assets acquired as goodwill. The goodwill reflects our expectations of favorable future growth opportunities, anticipated synergies through the scale of our O&P operations, and the assembled workforce. We expect that substantially all of the Goodwill, which has been assigned to our Patient Care reporting unit, will not be deductible for federal income tax purposes. ​ Acquisition-related costs are included in general and administrative expenses in our consolidated statements of operations. Total acquisition-related costs incurred during the three and nine months ended September 30, 2020 were $0.1 million and $0.6 million, respectively, which includes those costs for transactions that are in progress or were not completed during the respective period. Acquisition-related costs incurred for the acquisitions completed during the three and nine month periods ended September 30, 2020 were $0.0 million and $0.4 million, respectively. ​ We have not presented pro forma combined results for this acquisition because the impact on previously reported statements of operations would not have been material. ​ Purchase Price Allocation ​ We have performed a preliminary valuation analysis of the fair market value of the assets acquired and liabilities assumed in the acquisition. The final purchase price allocation will be determined when we have completed and fully reviewed the detailed valuations and could differ materially from the preliminary allocations. The final allocations may include changes in allocations of acquired intangible assets as well as goodwill and other changes to assets and liabilities, including deferred taxes. The estimated useful lives of acquired intangible assets are also preliminary. ​ The aggregate purchase price of this acquisition was allocated on a preliminary basis as follows: ​ ​ ​ ​ ​ (in thousands) ​ Cash paid, net of cash acquired ​ $ 16,762 Issuance of seller notes at fair value ​ 21,941 Deferred payment obligation at fair value ​ ​ 3,468 Additional consideration, net ​ 3,975 Aggregate purchase price ​ ​ 46,146 ​ ​ ​ ​ Accounts receivable ​ ​ 3,182 Inventories ​ ​ 2,021 Customer relationships (Weighted average useful life of 5.0 years) ​ ​ 5,600 Non-compete agreements (Weighted average useful life of 5.0 years) ​ ​ 200 Other assets and liabilities, net ​ ​ (4,301) Net assets acquired ​ ​ 6,702 Goodwill ​ $ 39,444 ​ Right ​ 2019 Acquisition Activity ​ During 2019, we completed the following acquisitions of O&P clinics, none of which were individually material to our financial position, results of operations, or cash flows. We completed each acquisition with the intention of expanding the geographic footprint of our patient care offerings through the acquisitions of high quality O&P providers. ​ ● In the first quarter of 2019, we completed the acquisition of all the outstanding equity interests of an O&P business for total consideration of $32.8 million, of which $27.7 million was cash consideration, net of cash acquired, $4.4 million was issued in the form of notes to shareholders at fair value, and $0.7 million was additional consideration. ​ ● In the second quarter of 2019, we completed the acquisition of all the outstanding equity interests of an O&P business for total consideration of $0.5 million, of which $0.2 million was cash consideration, net of cash acquired, and $0.3 million was issued in the form of notes to shareholders at fair value. ​ ● In the third quarter of 2019, we completed the acquisition of all the outstanding equity interests of one O&P business and acquired the assets of another O&P business for total consideration of $3.3 million, of which $3.0 million was cash consideration, net of cash acquired, and $0.3 million was issued in the form of notes to shareholders at fair value. ​ ● In the fourth quarter of 2019, we completed the acquisition of all the outstanding equity interests of one O&P business and acquired the assets of another O&P business for total consideration of $7.8 million, of which $5.0 million was cash consideration, net of cash acquired, and $2.8 million was issued in the form of notes to shareholders at fair value. ​ The aggregate purchase price for these acquisitions was allocated as follows: ​ ​ ​ ​ ​ (in thousands) ​ ​ Cash paid, net of cash acquired ​ $ 35,909 Issuance of seller notes at fair value ​ 7,835 Additional consideration, net (1) ​ ​ 626 Aggregate purchase price ​ 44,370 ​ ​ ​ ​ Accounts receivable ​ 4,128 Inventories ​ 2,081 Customer relationships (Weighted average useful life of 4.7 years) ​ 7,038 Non-compete agreements (Weighted average useful life of 4.9 years) ​ 350 Other assets and liabilities, net ​ ​ (2,983) Net assets acquired ​ 10,614 Goodwill ​ $ 33,756 ​ (1) Approximately $0.7 million of additional consideration represents payments made during the third quarter related to certain tax elections with the seller, offset by an immaterial amount of favorable working capital adjustments. ​ Right

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 2020
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	Note H — Goodwill and Other Intangible Assets ​ We assess goodwill and indefinite-lived intangible assets for impairment annually as of October 1st, and between annual tests if an event occurs, or circumstances change, that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. ​ The following table summarizes the activity in goodwill for the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended September 30, 2020 ​ ​ Patient Care ​ Products & Services ​ Consolidated ​ ​ Goodwill, ​ Accumulated ​ Goodwill, ​ Goodwill, ​ Accumulated ​ Goodwill, ​ Goodwill, ​ Accumulated ​ Goodwill, (in thousands) Gross Impairment Net Gross Impairment Net Gross Impairment Net As of December 31, 2019 ​ $ 660,912 ​ $ (428,668) ​ $ 232,244 ​ $ 139,299 ​ $ (139,299) ​ $ — ​ $ 800,211 ​ $ (567,967) ​ $ 232,244 Additions from acquisitions ​ ​ 39,386 ​ ​ — ​ ​ 39,386 ​ ​ — ​ ​ — ​ ​ — ​ ​ 39,386 ​ ​ — ​ ​ 39,386 Measurement period adjustments (1) ​ ​ 71 ​ ​ — ​ ​ 71 ​ ​ — ​ ​ — ​ ​ — ​ ​ 71 ​ ​ — ​ ​ 71 As of September 30, 2020 ​ $ 700,369 ​ $ (428,668) ​ $ 271,701 ​ $ 139,299 ​ $ (139,299) ​ $ — ​ $ 839,668 ​ $ (567,967) ​ $ 271,701 ​ (1) Measurement period adjustments relate to 2020 and 2019 acquisitions and are primarily attributable to adjustments to the preliminary allocations of customer relationship intangibles. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, 2019 ​ ​ Patient Care ​ Products & Services ​ Consolidated ​ ​ Goodwill, ​ Accumulated ​ Goodwill, ​ Goodwill, ​ Accumulated ​ Goodwill, ​ Goodwill, ​ Accumulated ​ Goodwill, (in thousands) Gross Impairment Net Gross Impairment Net Gross Impairment Net As of December 31, 2018 ​ $ 627,410 ​ $ (428,668) ​ $ 198,742 ​ $ 139,299 ​ $ (139,299) ​ $ — ​ $ 766,709 ​ $ (567,967) ​ $ 198,742 Additions from acquisitions ​ ​ 35,926 ​ ​ — ​ ​ 35,926 ​ ​ — ​ ​ — ​ ​ — ​ ​ 35,926 ​ ​ — ​ ​ 35,926 Measurement period adjustments (1) ​ ​ (2,424) ​ ​ — ​ ​ (2,424) ​ ​ — ​ ​ — ​ ​ — ​ ​ (2,424) ​ ​ — ​ ​ (2,424) As of December 31, 2019 ​ $ 660,912 ​ $ (428,668) ​ $ 232,244 ​ $ 139,299 ​ $ (139,299) ​ $ — ​ $ 800,211 ​ $ (567,967) ​ $ 232,244 ​ (1) Measurement period adjustments relate to 2019 and 2018 acquisitions of approximately $2.1 million and $0.3 million, respectively, and are primarily attributable to adjustments to the preliminary allocations of customer relationship intangibles. ​ The balances related to intangible assets as of September 30, 2020 and December 31, 2019 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ ​ Gross Carrying ​ Accumulated ​ Accumulated ​ Net Carrying (in thousands) Amount Amortization Impairment Amount Customer lists ​ $ 38,372 ​ $ (26,844) ​ $ — ​ $ 11,528 Trade name ​ 255 ​ (170) ​ ​ — ​ 85 Patents and other intangibles ​ 9,011 ​ (5,635) ​ ​ — ​ 3,376 Definite-lived intangible assets ​ ​ 47,638 ​ ​ (32,649) ​ ​ — ​ ​ 14,989 Indefinite-lived trade name ​ ​ 9,070 ​ ​ — ​ ​ (4,953) ​ ​ 4,117 Total other intangible assets ​ $ 56,708 ​ $ (32,649) ​ $ (4,953) ​ $ 19,106 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019 ​ ​ Gross Carrying ​ Accumulated ​ Accumulated ​ Net Carrying (in thousands) Amount Amortization Impairment Amount Customer lists ​ $ 32,772 ​ $ (22,726) ​ $ — ​ $ 10,046 Trade name ​ 255 ​ (151) ​ ​ — ​ 104 Patents and other intangibles ​ 9,188 ​ (5,503) ​ ​ — ​ 3,685 Definite-lived intangible assets ​ 42,215 ​ ​ (28,380) ​ ​ — ​ ​ 13,835 Indefinite-lived trade name ​ 9,070 ​ ​ — ​ ​ (4,953) ​ ​ 4,117 Total other intangible assets ​ $ 51,285 ​ $ (28,380) ​ $ (4,953) ​ $ 17,952 ​ Amortization expense related to other intangible assets was approximately $1.6 million and $4.6 million for the three and nine months ended September 30, 2020 and $1.6 million and $3.9 million for the three and nine months ended September 30, 2019. ​ Estimated aggregate amortization expense for definite-lived intangible assets for each of the next five years ended December 31, and thereafter is as follows: ​ ​ ​ ​ ​ (in thousands) ​ ​ 2020 (remainder of the year) ​ $ 1,406 2021 ​ 3,735 2022 ​ 3,668 2023 ​ 3,424 2024 ​ 1,941 Thereafter ​ 815 Total ​ $ 14,989 ​

Other Current Assets and Other

Other Current Assets and Other Assets	9 Months Ended
	Sep. 30, 2020
Other Current Assets and Other Assets
Other Current Assets and Other Assets	Note I — Other Current Assets and Other Assets ​ Other current assets consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Non-trade receivables $ 7,540 ​ $ 6,711 Prepaid maintenance ​ 3,277 ​ 2,767 Prepaid insurance ​ ​ 909 ​ ​ 264 Other prepaid assets ​ 2,763 ​ 3,931 Total other current assets $ 14,489 $ 13,673 ​ Other assets consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Implementation costs for cloud computing arrangements ​ $ 4,694 ​ $ 1,964 Cash surrender value of company-owned life insurance ​ ​ 3,811 ​ ​ 3,253 Finance lease right-of-use assets ​ ​ 2,795 ​ ​ 1,488 Deposits ​ 2,145 ​ ​ 1,893 Non-trade receivables ​ ​ 1,791 ​ ​ 2,398 Other ​ 474 ​ ​ 309 Total other assets ​ $ 15,710 ​ $ 11,305 ​

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities and Other Liabilities	9 Months Ended
	Sep. 30, 2020
Accrued Expenses and Other Current Liabilities and Other Liabilities
Accrued Expenses and Other Current Liabilities and Other Liabilities	Note J — Accrued Expenses and Other Current Liabilities and Other Liabilities ​ Accrued expenses and other current liabilities consist of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Patient prepayments, deposits, and refunds payable ​ $ 26,969 $ 24,183 Accrued sales taxes and other taxes ​ ​ 10,240 ​ ​ 8,543 Insurance and self-insurance accruals ​ ​ 7,786 ​ ​ 8,033 Derivative liability ​ ​ 7,704 ​ ​ 3,516 Liabilities incurred to seller in acquisitions ​ ​ 3,656 ​ ​ — Accrued professional fees ​ ​ 1,547 ​ ​ 2,533 Accrued interest payable ​ 747 ​ 266 Other current liabilities ​ 13,785 ​ 8,751 Total ​ $ 72,434 $ 55,825 ​ Other liabilities consist of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Supplemental executive retirement plan obligations ​ $ 19,461 $ 20,851 Derivative liability ​ ​ 16,075 ​ ​ 9,821 Unrecognized tax benefits ​ ​ 7,910 ​ ​ 5,296 Long-term insurance accruals ​ ​ 7,539 ​ ​ 7,424 Deferred payroll taxes ​ ​ 7,118 ​ ​ — Other ​ 1,974 ​ 2,412 Total ​ $ 60,077 $ 45,804 ​

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Taxes
Income Taxes	Note K — Income Taxes ​ We recorded a benefit for income taxes of $1.9 million and $4.8 million for the three and nine months ended September 30, 2020. The effective tax rate was -39.0% and -27.3% for the three and nine months ended September 30, 2020. We recorded a provision for income taxes of $2.6 million and $3.3 million for the three and nine months ended September 30, 2019. The effective tax rate was 31.2% and 27.1% for the three and nine months ended September 30, 2019. ​ The decrease in the effective tax rate for the three months ended September 30, 2020 compared with the three months ended September 30, 2019 is primarily attributable to a tax benefit resulting from the loss carryback provisions granted under the CARES Act. Our effective tax rate for the three months ended September 30, 2020 differed from the federal statutory tax rate of 21% primarily due to the net tax benefit of the loss carryback claim and non-deductible expenses. Our effective tax rate for the three months ended September 30, 2019 differed from the federal statutory tax rate of 21% primarily due to non-deductible expenses. ​ The decrease in the effective tax rate for the nine months ended September 30, 2020 compared with the nine months ended September 30, 2019 is primarily attributable to the recognition of research and development tax credits for the current and prior years and a tax benefit resulting from the loss carryback provisions granted under the CARES Act, partially offset by a shortfall from share-based compensation. Our effective tax rate for the nine months ended September 30, 2020 differed from the federal statutory tax rate of 21% primarily due to research and development tax credits, the net tax benefit of the loss carryback claim, and non-deductible expenses. Our effective tax rate for the nine months ended September 30, 2019 differed from the federal statutory tax rate of 21% primarily due to non-deductible expenses. ​ During the second quarter of 2020, we completed a study of qualifying research and development expenses resulting in the recognition of tax benefits of $2.2 million, net of tax reserves, related to the current year and $6.3 million, net of tax reserves, related to the prior years as of the third quarter of 2020. We recorded the tax benefit, before tax reserves, as a deferred tax asset. ​ The CARES Act, which was enacted on March 27, 2020, includes changes to certain tax laws related to the deductibility of interest expense and depreciation, as well as the provision to carryback net operating losses to five preceding years. ASC 740, Income Taxes, requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. As a result of the CARES Act provisions, in the third quarter of 2020 we recognized a tax benefit of $4.0 million resulting from the loss carryback claim to a prior period with a higher statutory rate, which also decreased our current income taxes payable by $9.5 million as of September 30, 2020.

Debt and Other Obligations

Debt and Other Obligations	9 Months Ended
	Sep. 30, 2020
Debt and Other Obligations
Debt and Other Obligations	Note L — Debt and Other Obligations ​ Debt consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) As of September 30, 2020 As of December 31, 2019 Debt: ​ ​ ​ ​ ​ ​ Term Loan B ​ $ 492,375 ​ $ 496,163 Seller notes ​ ​ 29,208 ​ ​ 9,005 Deferred payment obligation ​ ​ 4,000 ​ ​ — Finance lease liabilities and other ​ ​ 3,606 ​ ​ 2,033 Total debt before unamortized discount and debt issuance costs ​ ​ 529,189 ​ ​ 507,201 Unamortized discount and debt issuance costs, net ​ ​ (7,798) ​ ​ (8,328) Total debt ​ $ 521,391 ​ $ 498,873 ​ ​ ​ ​ ​ ​ ​ Current portion of long-term debt: ​ ​ ​ ​ ​ ​ Term Loan B ​ $ 5,050 ​ $ 5,050 Seller notes ​ ​ 21,893 ​ ​ 3,175 Finance lease liabilities and other ​ ​ 848 ​ ​ 527 Total current portion of long-term debt ​ ​ 27,791 ​ ​ 8,752 Long-term debt ​ $ 493,600 ​ $ 490,121 ​ Refinancing of Credit Agreement and Term B Borrowings ​ On March 6, 2018, we entered into a $605.0 million Senior Credit Facility (the “Credit Agreement”). The Credit Agreement provides for (i) a revolving credit facility with an initial maximum aggregate amount of availability of $100.0 million that matures in March 2023 and (ii) a $505.0 million Term Loan B facility due in quarterly principal installments commencing June 29, 2018, with all remaining outstanding principal due at maturity in March 2025. Availability under the revolving credit facility is reduced by outstanding letters of credit, which were approximately $5.2 million as of September 30, 2020. We may (a) increase the aggregate principal amount of any outstanding tranche of term loans or add one or more additional tranches of term loans under the loan documents, and/or (b) increase the aggregate principal amount of revolving commitments or add one or more additional revolving loan facilities under the loan documents by an aggregate amount of up to the sum of (1) $125.0 million and (2) an amount such that, after giving effect to such incurrence of such amount (but excluding the cash proceeds of such incremental facilities and certain other indebtedness, and treating all commitments in respect of revolving indebtedness as fully drawn), the consolidated first lien net leverage ratio is equal to or less than 3.80 to 1.00, if certain conditions are satisfied, including the absence of a default or an event of default under the Credit Agreement at the time of the increase and that we obtain the consent of each lender providing any incremental facility. ​ In March 2020, we borrowed $79.0 million under our revolving credit facility, which was due in March 2023. In June 2020, we repaid $57.0 million in borrowings under this revolving credit facility, and in September 2020, we repaid the remaining $22.0 million in borrowings under the facility. We had approximately $94.8 million in available borrowing capacity under our $100.0 million revolving credit facility as of September 30, 2020. ​ Our obligations under the Credit Agreement are currently guaranteed by our material domestic subsidiaries and will from time to time be guaranteed by, subject in each case to certain exceptions, any domestic subsidiaries that may become material in the future. Subject to certain exceptions, the Credit Agreement is secured by first-priority perfected liens and security interests in substantially all of our personal property and each subsidiary guarantor. ​ Borrowings under the Credit Agreement bear interest at a variable rate equal to (i) LIBOR plus a specified margin, or (ii) the base rate (which is the highest of (a) Bank of America, N.A.’s prime rate, (b) the federal funds rate plus 0.50% or (c) the sum of 1% plus one-month LIBOR) plus a specified margin. For the three months ended September 30, 2020, the weighted average interest rate on outstanding borrowings under our Term Loan B facility was approximately 3.6%. We have entered into interest rate swap agreements to hedge certain of our interest rate exposures, as more fully disclosed in Note N – “Derivative Financial Instruments.” ​ We must also pay (i) an unused commitment fee ranging from 0.375% to 0.500% per annum of the average daily unused portion of the aggregate revolving credit commitments under the Credit Agreement, and (ii) a per annum fee equal to (a) for each performance standby letter of credit outstanding under the Credit Agreement with respect to nonfinancial contractual obligations, 50% of the applicable margin over LIBOR under the revolving credit facility in effect from time to time multiplied by the daily amount available to be drawn under such letter of credit, and (b) for each other letter of credit outstanding under the Credit Agreement, the applicable margin over LIBOR under the revolving credit facility in effect from time to time multiplied by the daily amount available to be drawn for such letter of credit. ​ The Credit Agreement contains various restrictions and covenants, including: i) requirements that we maintain certain financial ratios at prescribed levels, ii) a prohibition on payment of dividends and other distributions and iii) restrictions on our ability and certain of our subsidiaries to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, or consummate acquisitions outside the healthcare industry. The Credit Agreement includes the following financial covenants applicable for so long as any revolving loans and/or revolving commitments remain outstanding under the Credit Agreement (some of which were amended in May 2020 by the Amendment (as defined and described below)): (i) a maximum consolidated first lien net leverage ratio (“Net Leverage Ratio") (defined as, with certain adjustments and exclusions, the ratio of consolidated first-lien indebtedness to consolidated net income before interest, taxes, depreciation, amortization, non-cash charges and certain other items (“EBITDA”) for the most recently ended period of four fiscal quarters for which financial statements are available) of 4.50 to 1.00 for the fiscal quarters ended June 30, 2020 through March 31, 2021; 4.25 to 1.00 for the fiscal quarters ended June 30, 2021 through March 31, 2022; and 3.75 to 1.00 for the fiscal quarter ended June 30, 2022 and the last day of each fiscal quarter thereafter; and (ii) a minimum interest coverage ratio (defined as, with certain adjustments, the ratio of our EBITDA to consolidated interest expense to the extent paid or payable in cash) of 2.75 to 1.00 as of the last day of any fiscal quarter. ​ The Credit Agreement also contains customary events of default. If an event of default under the Credit Agreement occurs and is continuing, then the lenders may declare any outstanding obligations under the Credit Agreement to be immediately due and payable; provided, however, that the occurrence of an event of default as a result of a breach of a financial covenant under the Credit Agreement does not constitute a default or event of default with respect to any term facility under the Credit Agreement unless and until the required revolving lenders shall have terminated their revolving commitments and declared all amounts outstanding under the revolving credit facility to be due and payable. In addition, if we or any subsidiary guarantor becomes the subject of voluntary or involuntary proceedings under any bankruptcy, insolvency, or similar law, then any outstanding obligations under the Credit Agreement will automatically become immediately due and payable. Loans outstanding under the Credit Agreement will bear interest at a rate of 2.00% per annum in excess of the otherwise applicable rate (i) upon acceleration of such loans, (ii) while a payment event of default exists or (iii) upon the lenders’ request, during the continuance of any other event of default. ​ In May 2020, we entered into an amendment to the Credit Agreement (the "Amendment") that provided for, amongst other things, an increase in the maximum Net Leverage Ratio to 5.25 to 1.00 for the fiscal quarters ended June 30, 2020 through March 31, 2021; 5.00 to 1.00 for the fiscal quarters ended June 30, 2021 through September 30, 2021; and 4.75 to 1.00 for the quarter ended December 31, 2021 and the last day of each fiscal quarter thereafter. In addition, the Amendment changed the definition of EBITDA used in the Net Leverage Ratio and minimum interest coverage ratio to adjust for declines in net revenue attributable to the COVID-19 pandemic. Borrowings under the revolving credit facility will bear interest at a variable rate equal to the greater of LIBOR or 1%, plus 3.75%. In addition, the Amendment contained certain restrictions and covenants that further limit our ability, and certain of our subsidiaries' ability, to consolidate or merge, create liens, incur additional indebtedness, dispose of assets, or consummate acquisitions not financed with the proceeds of an equity offering, except that certain acquisitions are permitted after September 30, 2020, in the event we maintain certain leverage and liquidity thresholds. We capitalized debt issuance costs of $0.2 million in connection with the Amendment, which were recorded in Other assets. ​ We were in compliance with all covenants at September 30, 2020. ​ Seller notes and the deferred payment obligation ​ We typically issue subordinated promissory notes (“Seller notes”) as a part of the consideration transferred when making acquisitions. We measure these instruments at their estimated fair values as of the respective acquisition dates. The stated interest rates on these instruments range from 2.50% to 3.00%. The Seller notes are unsecured and are presented net of unamortized discount of $0.9 million and $0.4 million as of September 30, 2020 and December 31, 2019, respectively. Principal and interest are payable in quarterly or annual installments and mature through October 2024. ​ Amounts due under the deferred payment obligation to the former shareholders of an acquired O&P business are unsecured and presented net of unamortized discount of $0.5 million as of September 30, 2020. The deferred payment obligation was measured at its estimated fair value as of the acquisition date and accrues interest at a rate of 3.0%. Principal and interest payments under the deferred payment obligation are due in annual installments beginning in 2024 and for three years thereafter. ​ Scheduled Maturities of Total Debt ​ Scheduled maturities of debt at September 30, 2020 were as follows: ​ ​ ​ ​ ​ (in thousands) ​ 2020 (remainder of year) ​ $ 21,023 2021 ​ 9,759 2022 ​ 8,494 2023 ​ 8,049 2024 ​ 7,337 Thereafter ​ 474,527 Total debt before unamortized discount and debt issuance costs, net ​ ​ 529,189 Unamortized discount and debt issuance costs, net ​ ​ (7,798) Total debt ​ $ 521,391 ​

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Fair Value Measurements	Note M — Fair Value Measurements ​ Financial Instruments ​ The carrying value of our outstanding term loan as of September 30, 2020 (excluding unamortized discounts and debt issuance costs of $6.9 million) was $492.4 million compared to its fair value of $487.5 million. The carrying value of our outstanding term loan as of December 31, 2019 (excluding unamortized discounts and debt issuance costs of $7.9 million) was $496.2 million compared to its fair value of $497.4 million. Our estimates of fair value are based on a discounted cash flow model and an indicative quote using unobservable inputs, primarily, our risk-adjusted credit spread, which represents a Level 3 measurement. ​ We have interest rate swap agreements designated as cash flow hedges and are measured at fair value based on inputs other than quoted market prices that are observable, which represents a Level 2 measurement. See Note L - “Debt and Other Obligations” and Note N - “Derivative Financial Instruments” for further information. ​ We believe that the carrying value of the Seller notes and the deferred payment obligation approximates their fair values based on a discounted cash flow model using unobservable inputs, primarily, our credit spread for subordinated debt, which represents a Level 3 measurement. The carrying value of our outstanding Seller notes and the deferred payment obligation issued in connection with past acquisitions as of September 30, 2020 was $32.3 million, net of unamortized discounts of $0.9 million.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2020
Derivative Financial Instruments
Derivative Financial Instruments	Note N — Derivative Financial Instruments ​ Cash Flow Hedges of Interest Rate Risk ​ In March 2018, we entered into interest rate swap agreements with notional values of $325.0 million at inception, which reduces $12.5 million annually until the swaps mature on March 6, 2024. As of September 30, 2020 and December 31, 2019, our swaps had a notional value outstanding of $300.0 million and $312.5 million, respectively. ​ Change in Net Loss on Cash Flow Hedges Including Accumulated Other Comprehensive Income (Loss) ​ The following table presents the activity of cash flow hedges included in accumulated other comprehensive loss for the three months ended September 30, 2020 and 2019, respectively: ​ ​ ​ ​ ​ (in thousands) Cash Flow Hedges Balance as of June 30, 2020 ​ $ (19,612) Unrealized loss recognized in other comprehensive loss, net of tax ​ (455) Reclassification to interest expense, net ​ 1,997 Balance as of September 30, 2020 ​ $ (18,070) ​ ​ ​ ​ Balance as of June 30, 2019 ​ $ (10,560) Unrealized loss recognized in other comprehensive loss, net of tax ​ (2,060) Reclassification to interest expense, net ​ 419 Balance as of September 30, 2019 ​ $ (12,201) ​ The following table presents the activity of cash flow hedges included in accumulated other comprehensive loss for the nine months ended September 30, 2020 and 2019, respectively: ​ ​ ​ ​ ​ (in thousands) Cash Flow Hedges Balance as of December 31, 2019 ​ $ (10,137) Unrealized loss recognized in other comprehensive loss, net of tax ​ ​ (12,518) Reclassification to interest expense, net ​ ​ 4,585 Balance as of September 30, 2020 ​ $ (18,070) ​ ​ ​ ​ Balance as of December 31, 2018 ​ $ (2,936) Unrealized loss recognized in other comprehensive loss, net of tax ​ ​ (10,135) Reclassification to interest expense, net ​ 870 Balance as of September 30, 2019 ​ $ (12,201) ​ The following table presents the fair value of derivative assets and liabilities within the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ As of December 31, 2019 (in thousands) Assets Liabilities Assets Liabilities Derivatives designated as cash flow hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ Accrued expenses and other current liabilities $ — $ 7,704 ​ $ — ​ $ 3,516 Other liabilities ​ — ​ 16,075 ​ ​ — ​ ​ 9,821 ​

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2020
Share-Based Compensation
Share-Based Compensation	Note O — Share-Based Compensation ​ On May 17, 2019, the shareholders approved the Hanger, Inc. 2019 Omnibus Incentive Plan (the “2019 Plan”). The 2019 Plan authorizes the issuance of (a) up to 2,025,000 shares of Common Stock, plus (b) 243,611 shares available for issuance under the Hanger, Inc. 2016 Omnibus Incentive Plan (the “2016 Plan”). Upon approval of the 2019 Plan, the 2016 Plan was no longer available for future awards. ​ On May 19, 2017, the Board of Directors approved the Hanger, Inc. Special Equity Plan (the “Special Equity Plan”). The Special Equity Plan authorized up to 1.5 million shares of Common Stock and operates completely independent from our 2016 Omnibus Incentive Plan. All awards under the Special Equity Plan were made on May 19, 2017, which consisted of 0.8 million stock options and 0.3 million performance-based stock awards. No further grants of awards will be authorized or issued under the Special Equity Plan. ​ As of September 30, 2020, there were 1,564,081 unvested restricted stock awards outstanding. This was comprised of 1,126,361 employee service-based awards with a weighted average grant date fair value of $19.23 per share, 367,097 employee performance-based awards with a weighted average grant date fair value of $18.94 per share, and 70,623 director service-based awards with a weighted average grant date value of $17.08 per share. As of September 30, 2020, there were 520,105 outstanding options exercisable with a weighted average exercise price of $12.77 and average remaining contractual term of 6.6 years. ​ The 2017 Special Equity Plan was amended in May 2020 to modify the performance period ending date for purposes of the compounded annual growth rate calculation to February 20, 2020, shortening the performance period to approximately 33 months, representing a reduction of three months. This adjustment was considered a modification per Accounting Standards Codification 718, Compensation - Stock Compensation, and, therefore, any incremental fair value arising from the modification of an award with market conditions would be recognized over the remaining service period. As a result of the modification, we recognized an additional $5.9 million in share-based compensation expense during the second quarter of 2020. ​ We recognized a total of approximately $3.1 million and $15.6 million of share-based compensation expense for the three and nine months ended September 30, 2020 and a total of approximately $3.4 million and $10.1 million for the three and nine months ended September 30, 2019, respectively. Share-based compensation expense, net of forfeitures, relates to restricted stock units, performance-based restricted stock units, and stock options.

Supplemental Executive Retireme

Supplemental Executive Retirement Plans	9 Months Ended
	Sep. 30, 2020
Supplemental Executive Retirement Plans
Supplemental Executive Retirement Plans	Note P — Supplemental Executive Retirement Plans ​ Defined Benefit Supplemental Executive Retirement Plan ​ Effective January 2004, we implemented an unfunded noncontributory defined benefit plan (“DB SERP”) for certain senior executives. The DB SERP, which we administer, calls for fifteen annual payments upon retirement with the payment amount based on years of service and final average salary. Benefit costs and liability balances are calculated based on certain assumptions including benefits earned, discount rates, interest costs, mortality rates, and other factors. Actual results that differ from the assumptions are accumulated and amortized over future periods, affecting the recorded obligation and expense in future periods. ​ We believe the assumptions used are appropriate; however, changes in assumptions or differences in actual experience may affect our benefit obligation and future expenses. The change in net benefit cost and obligation during the three and nine months ended September 30, 2020 and 2019 is as follows: ​ Change in Benefit Obligation: ​ ​ ​ ​ ​ ​ ​ ​ (in thousands) 2020 2019 Benefit obligation as of June 30 ​ $ 17,763 ​ $ 17,535 Service cost ​ 98 ​ 84 Interest cost ​ 121 ​ 164 Payments ​ (12) ​ (12) Benefit obligation as of September 30 ​ $ 17,970 ​ $ 17,771 ​ ​ ​ ​ ​ ​ ​ Benefit obligation as of December 31, 2019 and 2018, respectively ​ $ 19,214 ​ $ 18,927 Service cost ​ 294 ​ 251 Interest cost ​ 363 ​ 494 Payments ​ (1,901) ​ (1,901) Benefit obligation as of September 30 ​ $ 17,970 ​ $ 17,771 ​ Amounts Recognized in the Condensed Consolidated Balance Sheets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Current accrued expenses and other current liabilities ​ $ 1,913 ​ $ 1,913 Non-current other liabilities ​ 16,057 ​ 17,301 Total accrued liabilities ​ $ 17,970 ​ $ 19,214 ​ Defined Contribution Supplemental Executive Retirement Plan ​ In 2013, we established a defined contribution plan (“DC SERP”) that covers certain of our senior executives. Each participant is given a notional account to manage his or her annual distributions and allocate the funds among various investment options (e.g. mutual funds). These accounts are tracking accounts only for the purpose of calculating the participant’s benefit. The participant does not have ownership of the underlying mutual funds. When a participant initiates or changes the allocation of his or her notional account, we will generally make an allocation of our investments to match those chosen by the participant. While the allocation of our sub accounts is generally intended to mirror the participant’s account records (i.e. the distributions and gains or losses on those funds), the employee does not have legal ownership of any funds until payout upon retirement. The underlying investments are owned by the insurance company with which we own an insurance policy. ​ As of September 30, 2020 and December 31, 2019, the estimated accumulated obligation benefit is $4.2 million and $3.9 million, of which $3.8 million and $3.3 million is funded and $0.4 million and $0.6 million is unfunded at September 30, 2020 and December 31, 2019, respectively. ​ In connection with the DC SERP benefit obligation, we maintain a company-owned life insurance policy (“COLI”). The carrying value of the COLI is measured at its cash surrender value and is presented within other assets in our condensed consolidated balance sheets. See Note I - “Other Current Assets and Other Assets” for additional information.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies
Commitments and Contingencies	Note Q — Commitments and Contingencies ​ Guarantees and Indemnification ​ In the ordinary course of our business, we may enter into service agreements with service providers in which we agree to indemnify or limit the service provider against certain losses and liabilities arising from the service provider’s performance of the agreement. We have reviewed our existing contracts containing indemnification or clauses of guarantees and do not believe that our liability under such agreements is material. ​ Legal Proceedings ​ Derivative Litigation ​ In February and August of 2015, two separate shareholder derivative suits were filed in Texas state court against us related to the announced restatement of certain of our financial statements. The cases were subsequently consolidated into Judy v. Asar, et. al., . ​ The amended complaint in the consolidated derivative action names us and certain of our current and former officers and directors as defendants. It alleges claims for breach of fiduciary duty based, inter alia ​ As disclosed in our Current Report on Form 8-K filed with the SEC on June 6, 2016, the Board of Directors appointed a Special Litigation Committee of the Board (the “Special Committee”). The Board delegated to the Special Committee the authority to (1) determine whether it is in our best interests to pursue any of the allegations made in the derivative cases filed in Texas state court (which cases were consolidated into the Judy Judy ​ On April 14, 2017, we filed a motion to dismiss the consolidated derivative action based on the resolution by the Special Committee that it is not in our best interest to pursue the derivative claims. Counsel for the derivative plaintiffs opposed that motion and moved to compel discovery. In a hearing held on June 12, 2017, the Travis County court denied plaintiffs’ motion to compel, and held that the motion to dismiss would be considered only after appropriate discovery was concluded. ​ The plaintiffs subsequently subpoenaed counsel for the Special Committee, seeking a copy of the full report prepared by the Special Committee and its independent counsel. Counsel for the Special Committee, as well as our counsel, took the position that the full report is not discoverable under Texas law. Plaintiffs’ counsel filed a motion to compel the Special Committee’s counsel to produce the report. We opposed the motion. On July 20, 2018, the Travis County court ruled that only a redacted version of the report is discoverable, and counsel for the Special Committee provided a redacted version of the report to plaintiffs’ counsel. Plaintiffs objected to the redacted version of the report, and on February 4, 2019, the Travis County court appointed a Special Master to review plaintiffs’ objections to the redacted report. On March 22, 2019, the Special Master submitted a report to the Travis County court recommending that the court order that the entire Special Committee report be produced. On April 2, 2019 we filed an objection to the Special Master’s report and recommendation, and requested a hearing on the matter. On June 25, 2019, the Travis County court rejected the recommendation of the Special Master, and instead ordered that only a limited additional portion of the Special Committee report should be unredacted. On July 10, 2019, the updated redacted Special Committee report was provided to plaintiffs through their counsel. ​ In late October 2019, a non-binding agreement in principle was reached by the parties to settle the consolidated derivative action, the parties entered into a definitive settlement agreement in late December 2019, and in January 2020 the Travis County court issued an order providing preliminary approval of the settlement and ordering that notice of the settlement be made to the Company’s shareholders. On March 10, 2020, the Travis County court issued an order providing final approval of the settlement and dismissing with prejudice the consolidated derivative action. ​ Other Matters ​ From time to time we are subject to legal proceedings and claims which arise in the ordinary course of our business, and are also subject to additional payments under business purchase agreements. In the opinion of management, the amount of ultimate liability, if any, with respect to these actions will not have a materially adverse effect on our consolidated financial position, liquidity or results of our operations. ​ We operate in a highly regulated industry and receive regulatory agency inquiries from time to time in the ordinary course of our business, including inquiries relating to our billing activities. No assurance can be given that any discrepancies identified during a regulatory review will not have a material adverse effect on our consolidated financial statements.

Segment and Related Information

Segment and Related Information	9 Months Ended
	Sep. 30, 2020
Segment and Related Information
Segment and Related Information	Note R — Segment and Related Information ​ We have identified two segments and both performance evaluation and resource allocation decisions are determined based on each segment’s income from operations. The operating segments are described further below: ​ Patient Care — ​ ● Commercial private payors and other, which consist of individuals, rehabilitation providers, commercial insurance companies, health management organizations (“HMOs”), preferred provider organizations (“PPOs”), hospitals, vocational rehabilitation, workers’ compensation programs, and similar sources; ​ ● Medicare, a federally funded health insurance program providing health insurance coverage for persons aged 65 or older and certain persons with disabilities, which provides reimbursement for O&P products and services based on prices set forth in published fee schedules (generally with either 10 regional pricing areas or state level prices) for prosthetics and orthotics and by state for durable medical equipment (DMEPOS); ​ ● Medicaid, a health insurance program jointly funded by federal and state governments providing health insurance coverage for certain persons requiring financial assistance, regardless of age, which may supplement Medicare benefits for persons aged 65 or older requiring financial assistance; and ​ ● the VA. ​ Our contract and network management business, known as Linkia, is the only network management company dedicated solely to serving the O&P market and is focused on managing the O&P services of national and regional insurance companies. We partner with healthcare insurance companies by securing a national or regional contract either as a preferred provider or to manage their O&P network of providers. ​ Products & Services - ​ Corporate & Other ​ The accounting policies of the segments are the same as those described in Note A - “Organization and Summary of Significant Accounting Policies” in our 2019 Form 10-K. ​ Intersegment revenue primarily relates to sales of O&P components from the Products & Services segment to the Patient Care segment. The sales are priced at the cost of the related materials plus overhead. ​ Summarized financial information concerning our reporting segments is shown in the following tables. Total assets for each of the segments has not materially changed from December 31, 2019. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ Products & Services ​ ​ For the Three Months Ended ​ For the Three Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Net revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third party ​ $ 212,664 ​ $ 230,931 ​ $ 43,973 ​ $ 48,707 Intersegments ​ ​ — ​ ​ — ​ ​ 50,011 ​ ​ 53,670 Total net revenues ​ ​ 212,664 ​ ​ 230,931 ​ ​ 93,984 ​ ​ 102,377 Material costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third party suppliers ​ ​ 56,599 ​ ​ 65,055 ​ ​ 24,863 ​ ​ 26,979 Intersegments ​ ​ 7,339 ​ ​ 6,284 ​ ​ 42,672 ​ ​ 47,386 Total material costs ​ ​ 63,938 ​ ​ 71,339 ​ ​ 67,535 ​ ​ 74,365 Personnel expenses ​ ​ 76,989 ​ ​ 81,274 ​ ​ 12,738 ​ ​ 13,320 Other expenses ​ 34,713 ​ 37,245 ​ ​ 5,957 ​ ​ 6,858 Depreciation & amortization ​ 4,786 ​ 4,943 ​ ​ 2,633 ​ ​ 2,723 Segment income from operations ​ $ 32,238 ​ $ 36,130 ​ $ 5,121 ​ $ 5,111 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ Products & Services ​ ​ For the Nine Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Net revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third party ​ $ 598,706 ​ $ 652,700 ​ $ 125,104 ​ $ 144,455 Intersegments ​ ​ — ​ ​ — ​ ​ 138,899 ​ ​ 150,245 Total net revenues ​ ​ 598,706 ​ ​ 652,700 ​ ​ 264,003 ​ ​ 294,700 Material costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third party suppliers ​ ​ 160,212 ​ ​ 181,358 ​ ​ 68,463 ​ ​ 80,452 Intersegments ​ ​ 18,639 ​ ​ 18,268 ​ ​ 120,260 ​ ​ 131,977 Total material costs ​ ​ 178,851 ​ ​ 199,626 ​ ​ 188,723 ​ ​ 212,429 Personnel expenses ​ ​ 216,910 ​ ​ 233,402 ​ ​ 35,824 ​ ​ 39,393 Other expenses ​ 86,462 ​ 112,014 ​ ​ 18,614 ​ ​ 20,883 Depreciation & amortization ​ 14,089 ​ 13,997 ​ ​ 7,883 ​ ​ 7,862 Segment income from operations ​ $ 102,394 ​ $ 93,661 ​ $ 12,959 ​ $ 14,133 ​ A reconciliation of the total of the reportable segments’ income from operations to consolidated net income is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ $ 32,238 ​ $ 36,130 ​ $ 102,394 ​ $ 93,661 Products & Services ​ 5,121 ​ 5,111 ​ 12,959 ​ 14,133 Corporate & other ​ (24,284) ​ (23,838) ​ (72,590) ​ (69,267) Income from operations ​ 13,075 ​ 17,403 ​ 42,763 ​ 38,527 Interest expense, net ​ 8,013 ​ 8,954 ​ 24,918 ​ 25,973 Non-service defined benefit plan expense ​ 158 ​ 173 ​ 474 ​ 519 Income before income taxes ​ 4,904 ​ 8,276 ​ 17,371 ​ 12,035 (Benefit) provision for income taxes ​ (1,911) ​ 2,585 ​ (4,750) ​ 3,260 Net income ​ $ 6,815 ​ $ 5,691 ​ $ 22,121 ​ $ 8,775 ​ A reconciliation of the reportable segment net revenues to consolidated net revenues is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Net revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ $ 212,664 ​ $ 230,931 ​ $ 598,706 ​ $ 652,700 Products & Services ​ 93,984 ​ 102,377 ​ 264,003 ​ 294,700 Corporate & other ​ — ​ — ​ — ​ — Consolidating adjustments ​ (50,011) ​ (53,670) ​ (138,899) ​ (150,245) Consolidated net revenues ​ $ 256,637 ​ $ 279,638 ​ $ 723,810 ​ $ 797,155 ​ A reconciliation of the reportable segment material costs to consolidated material costs is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Material costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ $ 63,938 ​ $ 71,339 ​ $ 178,851 ​ $ 199,626 Products & Services ​ 67,535 ​ 74,365 ​ 188,723 ​ 212,429 Corporate & other ​ — ​ — ​ — ​ — Consolidating adjustments ​ (50,011) ​ (53,670) ​ (138,899) ​ (150,245) Consolidated material costs ​ $ 81,462 ​ $ 92,034 ​ $ 228,675 ​ $ 261,810 ​

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Organization and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation ​ The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, and, therefore, do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”), as previously filed with the Securities and Exchange Commission (the “SEC”). ​ In our opinion, the information contained herein reflects all adjustments necessary for a fair statement of our results of operations, financial position, and cash flows. All such adjustments are of a normal, recurring nature. The results of operations for the interim periods are not necessarily indicative of those to be expected for the full year. ​ A detailed description of our significant accounting policies and management judgments is contained in our 2019 Form 10-K.
Recent Developments Regarding COVID-19	Recent Developments Regarding COVID-19 ​ We are subject to risks and uncertainties as a result of the outbreak of the novel coronavirus (“COVID-19”) pandemic (“COVID-19 pandemic”). The extent and duration of the impact of the COVID-19 pandemic on our operations and financial condition are highly uncertain and difficult to predict, as viral infections continue to increase and information is rapidly evolving. We believe that our patients are deferring visits to our O&P clinics as well as elective surgical procedures, both of which impact our business volumes through decreased patient encounters and physician referrals. Furthermore, capital markets and the economy have been disrupted by the COVID-19 pandemic, and it still remains possible that it could cause a recessionary environment impacting the healthcare industry generally, including the O&P industry. The continuing economic disruption has had and could have a continuing material adverse effect on our business, as the duration and extent of state and local government restrictions impacting our patients’ ability or willingness to visit our O&P clinics and those of our customers, is unknown. The United States government has responded with fiscal policy measures intended to support the healthcare industry and economy as a whole, including the passage of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) in March 2020. We continue to monitor the provisions of the CARES Act and their application to us, as well as future governmental policies and their impact on our business; however, the magnitude and overall effectiveness of such policies to us and the economy as a whole remains uncertain. ​ CARES Act ​ The CARES Act established the Public Health and Social Services Emergency Fund, also referred to as the Cares Act Provider Relief Fund, which set aside $175.0 billion to be administered through grants and other mechanisms to hospitals, public entities, not-for-profit entities and Medicare- and Medicaid- enrolled suppliers and institutional providers. The purpose of these funds is to reimburse providers for lost revenue and health-care related expenses that are attributable to the COVID-19 pandemic. In April 2020, the U.S. Department of Health and Human Services (“HHS”) began making payments to healthcare providers from the $175.0 billion appropriation. These are payments, rather than loans, to healthcare providers, and will not need to be repaid. ​ During the second and third quarters of 2020, we recognized a total benefit of $20.6 million in our condensed consolidated statement of operations within Other operating costs for a portion of the grant proceeds we received under the CARES Act (“Grants”) from HHS. We recognize income related to grants on a systematic and rational basis when it becomes probable that we have complied with the terms and conditions of the grant and in the period in which the corresponding costs or income related to the grant are recognized. We recognized the benefit from the Grants within Other operating costs in our Patient Care segment. As of September 30, 2020, we have recorded a liability of $3.4 million within Accrued expenses and other liabilities in the condensed consolidated balance sheet related to proceeds from the Grants for amounts that have not met the recognition criteria in accordance with our accounting policy. ​ The CARES Act also provides for a deferral of the employer portion of payroll taxes incurred during the COVID-19 pandemic through December 2020. The provisions allow us to defer half of such payroll taxes until December 2021 and the remaining half until December 2022. We deferred $7.1 million of payroll taxes within Other liabilities in the condensed consolidated balance sheet as of September 30, 2020.
Recent Accounting Pronouncements, Adopted and Not Yet Adopted	Recently Adopted Accounting Pronouncements ​ In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ​ In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) ​ In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ​ Recent Accounting Pronouncements, Not Yet Adopted ​ In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share
Schedule of reconciliation of numerators and denominators used to calculate basic and diluted net income per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands except share and per share amounts) 2020 2019 2020 2019 Net income ​ $ 6,815 ​ $ 5,691 ​ $ 22,121 ​ $ 8,775 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding - basic ​ ​ 38,133,598 ​ ​ 37,349,144 ​ ​ 37,878,753 ​ ​ 37,218,234 Effect of potentially dilutive restricted stock units and options ​ ​ 503,938 ​ ​ 637,716 ​ ​ 613,212 ​ ​ 703,533 Weighted average shares outstanding - diluted ​ 38,637,536 ​ 37,986,860 ​ 38,491,965 ​ 37,921,767 ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic income per share ​ $ 0.18 ​ $ 0.15 ​ $ 0.58 ​ $ 0.24 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted income per share ​ $ 0.18 ​ $ 0.15 ​ $ 0.57 ​ $ 0.23

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2020
Patient Care
Revenue Recognition
Schedule of disaggregates of revenue from contracts with customers	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Patient Care Segment ​ ​ ​ ​ ​ Medicare ​ $ 68,135 ​ $ 72,879 ​ $ 194,052 ​ $ 206,295 Medicaid ​ 34,541 ​ 36,140 ​ 96,612 ​ 103,631 Commercial Insurance / Managed Care (excluding Medicare and Medicaid Managed Care) ​ 75,966 ​ 83,384 ​ 213,234 ​ 232,410 Veterans Administration ​ 19,339 ​ 23,816 ​ 54,057 ​ 64,635 Private Pay ​ 14,683 ​ 14,712 ​ 40,751 ​ 45,729 Total ​ $ 212,664 ​ $ 230,931 ​ $ 598,706 ​ $ 652,700 ​
Products & Services
Revenue Recognition
Schedule of disaggregates of revenue from contracts with customers	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Products & Services Segment ​ ​ ​ ​ ​ ​ ​ ​ Distribution services, net of intersegment revenue eliminations ​ $ 32,711 ​ $ 36,653 ​ $ 90,928 ​ $ 107,510 Therapeutic solutions ​ 11,262 ​ 12,054 ​ 34,176 ​ 36,945 Total ​ $ 43,973 ​ $ 48,707 ​ $ 125,104 ​ $ 144,455

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	9 Months Ended
	Sep. 30, 2020
Accounts Receivable, Net
Schedule of accounts receivable, net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ As of December 31, 2019 ​ ​ ​ ​ ​ Products & ​ ​ ​ ​ ​ ​ ​ Products & ​ ​ ​ (in thousands) Patient Care Services Consolidated Patient Care Services Consolidated Gross charges before estimates for implicit price concessions ​ $ 157,191 ​ $ 21,765 ​ $ 178,956 ​ $ 202,132 ​ $ 27,551 ​ $ 229,683 Less estimates for implicit price concessions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payor disallowances ​ ​ (47,314) ​ ​ — ​ ​ (47,314) ​ ​ (58,094) ​ ​ — ​ ​ (58,094) Patient non-payments ​ ​ (6,916) ​ ​ — ​ ​ (6,916) ​ ​ (9,589) ​ ​ — ​ ​ (9,589) Accounts receivable, gross ​ 102,961 ​ 21,765 ​ 124,726 ​ 134,449 ​ 27,551 ​ 162,000 Allowance for doubtful accounts ​ — ​ (3,317) ​ (3,317) ​ — ​ (2,641) ​ (2,641) Accounts receivable, net ​ $ 102,961 ​ $ 18,448 ​ $ 121,409 ​ $ 134,449 ​ $ 24,910 ​ $ 159,359

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2020
Inventories
Schedule of inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Raw materials ​ $ 20,047 ​ $ 20,574 Work in process ​ 15,575 ​ 10,165 Finished goods ​ 38,486 ​ 37,465 Total inventories ​ $ 74,108 ​ $ 68,204

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment, Net
Schedule of property, plant and equipment, net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Land ​ $ 554 ​ $ 634 Buildings ​ 3,756 ​ 4,110 Furniture and fixtures ​ 14,747 ​ 13,835 Machinery and equipment ​ 25,826 ​ 25,438 Equipment leased to third parties under operating leases ​ 27,510 ​ 29,217 Leasehold improvements ​ 138,450 ​ 131,617 Computers and software ​ 79,484 ​ 75,540 Total property, plant, and equipment, gross ​ ​ 290,327 ​ ​ 280,391 Less: accumulated depreciation and amortization ​ (203,690) ​ (196,334) Total property, plant, and equipment, net ​ $ 86,637 ​ $ 84,057 ​

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2020
2020 Acquisition activity, O&P business
Schedule of aggregate purchase price of acquisitions allocated on a preliminary basis	​ ​ ​ ​ ​ (in thousands) ​ Cash paid, net of cash acquired ​ $ 16,762 Issuance of seller notes at fair value ​ 21,941 Deferred payment obligation at fair value ​ ​ 3,468 Additional consideration, net ​ 3,975 Aggregate purchase price ​ ​ 46,146 ​ ​ ​ ​ Accounts receivable ​ ​ 3,182 Inventories ​ ​ 2,021 Customer relationships (Weighted average useful life of 5.0 years) ​ ​ 5,600 Non-compete agreements (Weighted average useful life of 5.0 years) ​ ​ 200 Other assets and liabilities, net ​ ​ (4,301) Net assets acquired ​ ​ 6,702 Goodwill ​ $ 39,444
2019 Acquisition Activity, prosthetic and orthotic business
Schedule of aggregate purchase price of acquisitions allocated on a preliminary basis	​ ​ ​ ​ ​ (in thousands) ​ ​ Cash paid, net of cash acquired ​ $ 35,909 Issuance of seller notes at fair value ​ 7,835 Additional consideration, net (1) ​ ​ 626 Aggregate purchase price ​ 44,370 ​ ​ ​ ​ Accounts receivable ​ 4,128 Inventories ​ 2,081 Customer relationships (Weighted average useful life of 4.7 years) ​ 7,038 Non-compete agreements (Weighted average useful life of 4.9 years) ​ 350 Other assets and liabilities, net ​ ​ (2,983) Net assets acquired ​ 10,614 Goodwill ​ $ 33,756 ​ (1) Approximately $0.7 million of additional consideration represents payments made during the third quarter related to certain tax elections with the seller, offset by an immaterial amount of favorable working capital adjustments. ​

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill and Other Intangible Assets
Schedule of goodwill allocated to the Company's reportable segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended September 30, 2020 ​ ​ Patient Care ​ Products & Services ​ Consolidated ​ ​ Goodwill, ​ Accumulated ​ Goodwill, ​ Goodwill, ​ Accumulated ​ Goodwill, ​ Goodwill, ​ Accumulated ​ Goodwill, (in thousands) Gross Impairment Net Gross Impairment Net Gross Impairment Net As of December 31, 2019 ​ $ 660,912 ​ $ (428,668) ​ $ 232,244 ​ $ 139,299 ​ $ (139,299) ​ $ — ​ $ 800,211 ​ $ (567,967) ​ $ 232,244 Additions from acquisitions ​ ​ 39,386 ​ ​ — ​ ​ 39,386 ​ ​ — ​ ​ — ​ ​ — ​ ​ 39,386 ​ ​ — ​ ​ 39,386 Measurement period adjustments (1) ​ ​ 71 ​ ​ — ​ ​ 71 ​ ​ — ​ ​ — ​ ​ — ​ ​ 71 ​ ​ — ​ ​ 71 As of September 30, 2020 ​ $ 700,369 ​ $ (428,668) ​ $ 271,701 ​ $ 139,299 ​ $ (139,299) ​ $ — ​ $ 839,668 ​ $ (567,967) ​ $ 271,701 ​ (1) Measurement period adjustments relate to 2020 and 2019 acquisitions and are primarily attributable to adjustments to the preliminary allocations of customer relationship intangibles. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, 2019 ​ ​ Patient Care ​ Products & Services ​ Consolidated ​ ​ Goodwill, ​ Accumulated ​ Goodwill, ​ Goodwill, ​ Accumulated ​ Goodwill, ​ Goodwill, ​ Accumulated ​ Goodwill, (in thousands) Gross Impairment Net Gross Impairment Net Gross Impairment Net As of December 31, 2018 ​ $ 627,410 ​ $ (428,668) ​ $ 198,742 ​ $ 139,299 ​ $ (139,299) ​ $ — ​ $ 766,709 ​ $ (567,967) ​ $ 198,742 Additions from acquisitions ​ ​ 35,926 ​ ​ — ​ ​ 35,926 ​ ​ — ​ ​ — ​ ​ — ​ ​ 35,926 ​ ​ — ​ ​ 35,926 Measurement period adjustments (1) ​ ​ (2,424) ​ ​ — ​ ​ (2,424) ​ ​ — ​ ​ — ​ ​ — ​ ​ (2,424) ​ ​ — ​ ​ (2,424) As of December 31, 2019 ​ $ 660,912 ​ $ (428,668) ​ $ 232,244 ​ $ 139,299 ​ $ (139,299) ​ $ — ​ $ 800,211 ​ $ (567,967) ​ $ 232,244 ​ (1) Measurement period adjustments relate to 2019 and 2018 acquisitions of approximately $2.1 million and $0.3 million, respectively, and are primarily attributable to adjustments to the preliminary allocations of customer relationship intangibles.
Schedule of balances related to finite-lived intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ ​ Gross Carrying ​ Accumulated ​ Accumulated ​ Net Carrying (in thousands) Amount Amortization Impairment Amount Customer lists ​ $ 38,372 ​ $ (26,844) ​ $ — ​ $ 11,528 Trade name ​ 255 ​ (170) ​ ​ — ​ 85 Patents and other intangibles ​ 9,011 ​ (5,635) ​ ​ — ​ 3,376 Definite-lived intangible assets ​ ​ 47,638 ​ ​ (32,649) ​ ​ — ​ ​ 14,989 Indefinite-lived trade name ​ ​ 9,070 ​ ​ — ​ ​ (4,953) ​ ​ 4,117 Total other intangible assets ​ $ 56,708 ​ $ (32,649) ​ $ (4,953) ​ $ 19,106 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2019 ​ ​ Gross Carrying ​ Accumulated ​ Accumulated ​ Net Carrying (in thousands) Amount Amortization Impairment Amount Customer lists ​ $ 32,772 ​ $ (22,726) ​ $ — ​ $ 10,046 Trade name ​ 255 ​ (151) ​ ​ — ​ 104 Patents and other intangibles ​ 9,188 ​ (5,503) ​ ​ — ​ 3,685 Definite-lived intangible assets ​ 42,215 ​ ​ (28,380) ​ ​ — ​ ​ 13,835 Indefinite-lived trade name ​ 9,070 ​ ​ — ​ ​ (4,953) ​ ​ 4,117 Total other intangible assets ​ $ 51,285 ​ $ (28,380) ​ $ (4,953) ​ $ 17,952 ​
Schedule of estimated aggregate amortization expense for definite-lived intangible assets	​ ​ ​ ​ ​ (in thousands) ​ ​ 2020 (remainder of the year) ​ $ 1,406 2021 ​ 3,735 2022 ​ 3,668 2023 ​ 3,424 2024 ​ 1,941 Thereafter ​ 815 Total ​ $ 14,989

Other Current Assets and Othe_2

Other Current Assets and Other Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Other Current Assets and Other Assets
Schedule of other current assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Non-trade receivables $ 7,540 ​ $ 6,711 Prepaid maintenance ​ 3,277 ​ 2,767 Prepaid insurance ​ ​ 909 ​ ​ 264 Other prepaid assets ​ 2,763 ​ 3,931 Total other current assets $ 14,489 $ 13,673
Schedule of other assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Implementation costs for cloud computing arrangements ​ $ 4,694 ​ $ 1,964 Cash surrender value of company-owned life insurance ​ ​ 3,811 ​ ​ 3,253 Finance lease right-of-use assets ​ ​ 2,795 ​ ​ 1,488 Deposits ​ 2,145 ​ ​ 1,893 Non-trade receivables ​ ​ 1,791 ​ ​ 2,398 Other ​ 474 ​ ​ 309 Total other assets ​ $ 15,710 ​ $ 11,305

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Accrued Expenses and Other Current Liabilities and Other Liabilities
Schedule of accrued expenses and other current liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Patient prepayments, deposits, and refunds payable ​ $ 26,969 $ 24,183 Accrued sales taxes and other taxes ​ ​ 10,240 ​ ​ 8,543 Insurance and self-insurance accruals ​ ​ 7,786 ​ ​ 8,033 Derivative liability ​ ​ 7,704 ​ ​ 3,516 Liabilities incurred to seller in acquisitions ​ ​ 3,656 ​ ​ — Accrued professional fees ​ ​ 1,547 ​ ​ 2,533 Accrued interest payable ​ 747 ​ 266 Other current liabilities ​ 13,785 ​ 8,751 Total ​ $ 72,434 $ 55,825
Schedule of other liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Supplemental executive retirement plan obligations ​ $ 19,461 $ 20,851 Derivative liability ​ ​ 16,075 ​ ​ 9,821 Unrecognized tax benefits ​ ​ 7,910 ​ ​ 5,296 Long-term insurance accruals ​ ​ 7,539 ​ ​ 7,424 Deferred payroll taxes ​ ​ 7,118 ​ ​ — Other ​ 1,974 ​ 2,412 Total ​ $ 60,077 $ 45,804

Debt and Other Obligations (Tab

Debt and Other Obligations (Tables)	9 Months Ended
	Sep. 30, 2020
Debt and Other Obligations
Schedule of debt	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) As of September 30, 2020 As of December 31, 2019 Debt: ​ ​ ​ ​ ​ ​ Term Loan B ​ $ 492,375 ​ $ 496,163 Seller notes ​ ​ 29,208 ​ ​ 9,005 Deferred payment obligation ​ ​ 4,000 ​ ​ — Finance lease liabilities and other ​ ​ 3,606 ​ ​ 2,033 Total debt before unamortized discount and debt issuance costs ​ ​ 529,189 ​ ​ 507,201 Unamortized discount and debt issuance costs, net ​ ​ (7,798) ​ ​ (8,328) Total debt ​ $ 521,391 ​ $ 498,873 ​ ​ ​ ​ ​ ​ ​ Current portion of long-term debt: ​ ​ ​ ​ ​ ​ Term Loan B ​ $ 5,050 ​ $ 5,050 Seller notes ​ ​ 21,893 ​ ​ 3,175 Finance lease liabilities and other ​ ​ 848 ​ ​ 527 Total current portion of long-term debt ​ ​ 27,791 ​ ​ 8,752 Long-term debt ​ $ 493,600 ​ $ 490,121
Schedule of maturities of debt	​ ​ ​ ​ ​ (in thousands) ​ 2020 (remainder of year) ​ $ 21,023 2021 ​ 9,759 2022 ​ 8,494 2023 ​ 8,049 2024 ​ 7,337 Thereafter ​ 474,527 Total debt before unamortized discount and debt issuance costs, net ​ ​ 529,189 Unamortized discount and debt issuance costs, net ​ ​ (7,798) Total debt ​ $ 521,391

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Derivative Financial Instruments
Schedule of activity of cash flow hedges included in accumulated other comprehensive income (loss)	​ ​ ​ ​ ​ (in thousands) Cash Flow Hedges Balance as of June 30, 2020 ​ $ (19,612) Unrealized loss recognized in other comprehensive loss, net of tax ​ (455) Reclassification to interest expense, net ​ 1,997 Balance as of September 30, 2020 ​ $ (18,070) ​ ​ ​ ​ Balance as of June 30, 2019 ​ $ (10,560) Unrealized loss recognized in other comprehensive loss, net of tax ​ (2,060) Reclassification to interest expense, net ​ 419 Balance as of September 30, 2019 ​ $ (12,201) ​ The following table presents the activity of cash flow hedges included in accumulated other comprehensive loss for the nine months ended September 30, 2020 and 2019, respectively: ​ ​ ​ ​ ​ (in thousands) Cash Flow Hedges Balance as of December 31, 2019 ​ $ (10,137) Unrealized loss recognized in other comprehensive loss, net of tax ​ ​ (12,518) Reclassification to interest expense, net ​ ​ 4,585 Balance as of September 30, 2020 ​ $ (18,070) ​ ​ ​ ​ Balance as of December 31, 2018 ​ $ (2,936) Unrealized loss recognized in other comprehensive loss, net of tax ​ ​ (10,135) Reclassification to interest expense, net ​ 870 Balance as of September 30, 2019 ​ $ (12,201)
Schedule of fair value of derivative liabilities within the consolidated balance sheets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2020 ​ As of December 31, 2019 (in thousands) Assets Liabilities Assets Liabilities Derivatives designated as cash flow hedging instruments: ​ ​ ​ ​ ​ ​ ​ ​ Accrued expenses and other current liabilities $ — $ 7,704 ​ $ — ​ $ 3,516 Other liabilities ​ — ​ 16,075 ​ ​ — ​ ​ 9,821

Supplemental Executive Retire_2

Supplemental Executive Retirement Plans (Tables)	9 Months Ended
	Sep. 30, 2020
Supplemental Executive Retirement Plans
Schedule of Change in Benefit Obligation	​ ​ ​ ​ ​ ​ ​ ​ (in thousands) 2020 2019 Benefit obligation as of June 30 ​ $ 17,763 ​ $ 17,535 Service cost ​ 98 ​ 84 Interest cost ​ 121 ​ 164 Payments ​ (12) ​ (12) Benefit obligation as of September 30 ​ $ 17,970 ​ $ 17,771 ​ ​ ​ ​ ​ ​ ​ Benefit obligation as of December 31, 2019 and 2018, respectively ​ $ 19,214 ​ $ 18,927 Service cost ​ 294 ​ 251 Interest cost ​ 363 ​ 494 Payments ​ (1,901) ​ (1,901) Benefit obligation as of September 30 ​ $ 17,970 ​ $ 17,771
Schedule of Amounts Recognized in the Consolidated Balance Sheets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, ​ As of December 31, (in thousands) 2020 2019 Current accrued expenses and other current liabilities ​ $ 1,913 ​ $ 1,913 Non-current other liabilities ​ 16,057 ​ 17,301 Total accrued liabilities ​ $ 17,970 ​ $ 19,214

Segment and Related Informati_2

Segment and Related Information (Tables)	9 Months Ended
	Sep. 30, 2020
Segment and Related Information
Summary of financial information concerning the Company's reporting segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ Products & Services ​ ​ For the Three Months Ended ​ For the Three Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Net revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third party ​ $ 212,664 ​ $ 230,931 ​ $ 43,973 ​ $ 48,707 Intersegments ​ ​ — ​ ​ — ​ ​ 50,011 ​ ​ 53,670 Total net revenues ​ ​ 212,664 ​ ​ 230,931 ​ ​ 93,984 ​ ​ 102,377 Material costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third party suppliers ​ ​ 56,599 ​ ​ 65,055 ​ ​ 24,863 ​ ​ 26,979 Intersegments ​ ​ 7,339 ​ ​ 6,284 ​ ​ 42,672 ​ ​ 47,386 Total material costs ​ ​ 63,938 ​ ​ 71,339 ​ ​ 67,535 ​ ​ 74,365 Personnel expenses ​ ​ 76,989 ​ ​ 81,274 ​ ​ 12,738 ​ ​ 13,320 Other expenses ​ 34,713 ​ 37,245 ​ ​ 5,957 ​ ​ 6,858 Depreciation & amortization ​ 4,786 ​ 4,943 ​ ​ 2,633 ​ ​ 2,723 Segment income from operations ​ $ 32,238 ​ $ 36,130 ​ $ 5,121 ​ $ 5,111 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ Products & Services ​ ​ For the Nine Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Net revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third party ​ $ 598,706 ​ $ 652,700 ​ $ 125,104 ​ $ 144,455 Intersegments ​ ​ — ​ ​ — ​ ​ 138,899 ​ ​ 150,245 Total net revenues ​ ​ 598,706 ​ ​ 652,700 ​ ​ 264,003 ​ ​ 294,700 Material costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third party suppliers ​ ​ 160,212 ​ ​ 181,358 ​ ​ 68,463 ​ ​ 80,452 Intersegments ​ ​ 18,639 ​ ​ 18,268 ​ ​ 120,260 ​ ​ 131,977 Total material costs ​ ​ 178,851 ​ ​ 199,626 ​ ​ 188,723 ​ ​ 212,429 Personnel expenses ​ ​ 216,910 ​ ​ 233,402 ​ ​ 35,824 ​ ​ 39,393 Other expenses ​ 86,462 ​ 112,014 ​ ​ 18,614 ​ ​ 20,883 Depreciation & amortization ​ 14,089 ​ 13,997 ​ ​ 7,883 ​ ​ 7,862 Segment income from operations ​ $ 102,394 ​ $ 93,661 ​ $ 12,959 ​ $ 14,133 ​
Schedule of reconciliation of reportable segments	A reconciliation of the total of the reportable segments’ income from operations to consolidated net income is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Income from operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ $ 32,238 ​ $ 36,130 ​ $ 102,394 ​ $ 93,661 Products & Services ​ 5,121 ​ 5,111 ​ 12,959 ​ 14,133 Corporate & other ​ (24,284) ​ (23,838) ​ (72,590) ​ (69,267) Income from operations ​ 13,075 ​ 17,403 ​ 42,763 ​ 38,527 Interest expense, net ​ 8,013 ​ 8,954 ​ 24,918 ​ 25,973 Non-service defined benefit plan expense ​ 158 ​ 173 ​ 474 ​ 519 Income before income taxes ​ 4,904 ​ 8,276 ​ 17,371 ​ 12,035 (Benefit) provision for income taxes ​ (1,911) ​ 2,585 ​ (4,750) ​ 3,260 Net income ​ $ 6,815 ​ $ 5,691 ​ $ 22,121 ​ $ 8,775 ​ A reconciliation of the reportable segment net revenues to consolidated net revenues is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Net revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ $ 212,664 ​ $ 230,931 ​ $ 598,706 ​ $ 652,700 Products & Services ​ 93,984 ​ 102,377 ​ 264,003 ​ 294,700 Corporate & other ​ — ​ — ​ — ​ — Consolidating adjustments ​ (50,011) ​ (53,670) ​ (138,899) ​ (150,245) Consolidated net revenues ​ $ 256,637 ​ $ 279,638 ​ $ 723,810 ​ $ 797,155 ​ A reconciliation of the reportable segment material costs to consolidated material costs is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended ​ For the Nine Months Ended ​ ​ September 30, ​ September 30, (in thousands) 2020 2019 2020 2019 Material costs ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Patient Care ​ $ 63,938 ​ $ 71,339 ​ $ 178,851 ​ $ 199,626 Products & Services ​ 67,535 ​ 74,365 ​ 188,723 ​ 212,429 Corporate & other ​ — ​ — ​ — ​ — Consolidating adjustments ​ (50,011) ​ (53,670) ​ (138,899) ​ (150,245) Consolidated material costs ​ $ 81,462 ​ $ 92,034 ​ $ 228,675 ​ $ 261,810

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies - Description of Business (Details)	9 Months Ended
	Sep. 30, 2020segment
Organization and Summary of Significant Accounting Policies
Number of operating segments	2

Organization and Summary of S_4

Organization and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Jan. 01, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle
Proceeds received from grant	$ 20,600	$ 20,600
Liability related to proceeds received from grant	3,400
Deferred payroll taxes under CARES Act	7,100
Cumulative effect on accumulated deficit	$ (310,068)			$ (331,951)
ASU 2016-13 | Restatement Adjustments
New Accounting Pronouncements or Change in Accounting Principle
Cumulative effect on accumulated deficit			$ 200

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share
Total anti-dilutive shares (in shares)	34,379			10			20,202	0
Net income	$ 6,815	$ 31,054	$ (15,748)	$ 5,691	$ 10,035	$ (6,951)	$ 22,121	$ 8,775
Weighted average shares outstanding - basic	38,133,598			37,349,144			37,878,753	37,218,234
Effect of potentially dilutive restricted stock units and options	503,938			637,716			613,212	703,533
Weighted average shares outstanding - diluted	38,637,536			37,986,860			38,491,965	37,921,767
Basic and diluted:
Basic income per share	$ 0.18			$ 0.15			$ 0.58	$ 0.24
Diluted income per share	$ 0.18			$ 0.15			$ 0.57	$ 0.23

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue Recognition
Net revenues	$ 256,637	$ 279,638	$ 723,810	$ 797,155
Patient Care
Revenue Recognition
Net revenues	212,664	230,931	598,706	652,700
Patient Care | Medicare
Revenue Recognition
Net revenues	68,135	72,879	194,052	206,295
Patient Care | Medicaid
Revenue Recognition
Net revenues	34,541	36,140	96,612	103,631
Patient Care | Commercial Insurance / Managed Care (excluding Medicare and Medicaid Managed Care)
Revenue Recognition
Net revenues	75,966	83,384	213,234	232,410
Patient Care | Veterans Administration
Revenue Recognition
Net revenues	19,339	23,816	54,057	64,635
Patient Care | Private Pay
Revenue Recognition
Net revenues	14,683	14,712	40,751	45,729
Patient Care | Operating segments
Revenue Recognition
Net revenues	212,664	230,931	598,706	652,700
Products & Services
Revenue Recognition
Net revenues	93,984	102,377	264,003	294,700
Products & Services | Operating segments
Revenue Recognition
Net revenues	43,973	48,707	125,104	144,455
Products & Services | Operating segments | Distribution services, net of intersegment revenue eliminations
Revenue Recognition
Net revenues	32,711	36,653	90,928	107,510
Products & Services | Operating segments | Therapeutic solutions
Revenue Recognition
Net revenues	$ 11,262	$ 12,054	$ 34,176	$ 36,945

Accounts Receivable, Net (Detai

Accounts Receivable, Net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Accounts Receivable, net
Gross charges before estimates for implicit price concessions	$ 178,956	$ 229,683
Less estimates for implicit price concessions:
Payor disallowances	(47,314)	(58,094)
Patient non-payments	(6,916)	(9,589)
Accounts receivable, gross	124,726	162,000
Allowance for doubtful accounts	(3,317)	(2,641)
Accounts receivable, net	121,409	159,359
Additional allowance for doubtful account	700
Patient Care
Accounts Receivable, net
Gross charges before estimates for implicit price concessions	157,191	202,132
Less estimates for implicit price concessions:
Payor disallowances	(47,314)	(58,094)
Patient non-payments	(6,916)	(9,589)
Accounts receivable, gross	102,961	134,449
Accounts receivable, net	102,961	134,449
Products & Services
Accounts Receivable, net
Gross charges before estimates for implicit price concessions	21,765	27,551
Less estimates for implicit price concessions:
Accounts receivable, gross	21,765	27,551
Allowance for doubtful accounts	(3,317)	(2,641)
Accounts receivable, net	$ 18,448	$ 24,910

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories
Raw materials	$ 20,047	$ 20,574
Work in process	15,575	10,165
Finished goods	38,486	37,465
Total inventories	$ 74,108	$ 68,204

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment, Net
Total property, plant, and equipment, gross	$ 290,327		$ 290,327		$ 280,391
Less: accumulated depreciation and amortization	(203,690)		(203,690)		(196,334)
Total property, plant, and equipment, net	86,637		86,637		84,057
Depreciation expense	7,000	$ 7,700	21,400	$ 22,800
Amortization of finance right-of-use assets	200	$ 100	500	$ 200
Land
Property, Plant and Equipment, Net
Total property, plant, and equipment, gross	554		554		634
Buildings
Property, Plant and Equipment, Net
Total property, plant, and equipment, gross	3,756		3,756		4,110
Furniture and fixtures
Property, Plant and Equipment, Net
Total property, plant, and equipment, gross	14,747		14,747		13,835
Machinery and equipment
Property, Plant and Equipment, Net
Total property, plant, and equipment, gross	25,826		25,826		25,438
Equipment leased to third parties under operating leases
Property, Plant and Equipment, Net
Total property, plant, and equipment, gross	27,510		27,510		29,217
Leasehold improvements
Property, Plant and Equipment, Net
Total property, plant, and equipment, gross	138,450		138,450		131,617
Computers and software
Property, Plant and Equipment, Net
Total property, plant, and equipment, gross	$ 79,484		$ 79,484		$ 75,540

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Cash paid, net of cash acquired							$ 16,854	$ 31,585
Acquisition-related costs	$ 0						400
General and administrative expenses
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Acquisition-related costs	100						600
2020 Acquisition activity, O&P business
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Cash paid, net of cash acquired		$ 16,762
Issuance of seller notes at fair value		21,941
Deferred payment obligations		3,468
Additional consideration		3,975
Aggregate purchase price		46,146
Accounts receivable		3,182
Inventories		2,021
Other assets and liabilities, net		(4,301)
Net assets acquired		6,702
Goodwill		39,444
Operating right-of-use assets	4,700						4,700
Operating lease liabilities	$ 4,700						$ 4,700
Consideration through settlement of amounts due from acquiree		400
2020 Acquisition activity, O&P business | Customer Relationships
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Other intangible assets, net		$ 5,600
Weighted average useful life		5 years
2020 Acquisition activity, O&P business | Non-compete agreements
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Other intangible assets, net		$ 200
Weighted average useful life		5 years
2020 Acquisition activity, O&P business | Payable in lump sum payment due in October 2020
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Issuance of seller notes at fair value		$ 18,100
Additional consideration		3,600
2020 Acquisition activity, O&P business | Payable in annual installments over a period of 3 years
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Issuance of seller notes at fair value		3,800
Deferred payment obligations		$ 3,500
Beginning period for the deferred payment obligations payable		4 years
Thereafter period for payable deferred payment obligations		3 years
2019 Acquisition Activity, prosthetic and orthotic business
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Cash paid, net of cash acquired			$ 5,000	$ 3,000	$ 200	$ 27,700			$ 35,909
Issuance of seller notes at fair value			2,800	300	300	4,400			7,835
Additional consideration				700		700			626
Aggregate purchase price			7,800	$ 3,300	$ 500	$ 32,800			44,370
Accounts receivable			4,128						4,128
Inventories			2,081						2,081
Other assets and liabilities, net			(2,983)						(2,983)
Net assets acquired			10,614						10,614
Goodwill									33,756
Operating right-of-use assets			5,200						5,200
Operating lease liabilities			5,200						5,200
2019 Acquisition Activity, prosthetic and orthotic business | Customer Relationships
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Other intangible assets, net			7,038						$ 7,038
Weighted average useful life									4 years 8 months 12 days
2019 Acquisition Activity, prosthetic and orthotic business | Non-compete agreements
Aggregate purchase price of this acquisition was allocated on a preliminary basis
Other intangible assets, net			$ 350						$ 350
Weighted average useful life									4 years 10 months 24 days

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill
Measurement period adjustments related to acquisitions		$ 2,100	$ 300
Goodwill allocated
Goodwill, Net as of beginning of the year	$ 232,244
Goodwill, Net as of end of the year	271,701	232,244
Patient Care
Goodwill allocated
Goodwill, Gross as of beginning of the year	660,912	627,410
Goodwill, Accumulated Impairment	(428,668)	(428,668)	(428,668)
Goodwill, Net as of beginning of the year	232,244	198,742
Additions from acquisitions	39,386	35,926
Measurement period adjustments	71	(2,424)
Goodwill, Gross as of end of the year	700,369	660,912	627,410
Goodwill, Net as of end of the year	271,701	232,244	198,742
Products & Services
Goodwill allocated
Goodwill, Gross as of beginning of the year	139,299	139,299
Goodwill, Accumulated Impairment	(139,299)	(139,299)	(139,299)
Goodwill, Gross as of end of the year	139,299	139,299	139,299
Consolidated
Goodwill allocated
Goodwill, Gross as of beginning of the year	800,211	766,709
Goodwill, Accumulated Impairment	(567,967)	(567,967)	(567,967)
Goodwill, Net as of beginning of the year	232,244	198,742
Additions from acquisitions	39,386	35,926
Measurement period adjustments	71	(2,424)
Goodwill, Gross as of end of the year	839,668	800,211	766,709
Goodwill, Net as of end of the year	$ 271,701	$ 232,244	$ 198,742

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
GOODWILL AND OTHER INTANGIBLE ASSETS
Definite-lived, Gross Carrying Amount	$ 47,638		$ 47,638		$ 42,215
Definite-lived, Accumulated Amortization	(32,649)		(32,649)		(28,380)
Definite-lived, Net Carrying Amount	14,989		14,989		13,835
Total other intangible assets, Gross Carrying Amount	56,708		56,708		51,285
Total other intangible assets, Accumulated Amortization	(32,649)		(32,649)		(28,380)
Accumulated Impairment	(4,953)		(4,953)		(4,953)
Total other intangible assets, Net Carrying Amount	19,106		19,106		17,952
Amortization expense	1,600	$ 1,600	4,600	$ 3,900
Trade name
GOODWILL AND OTHER INTANGIBLE ASSETS
Indefinite lived, Gross Carrying Amount	9,070		9,070		9,070
Indefinite lived, Accumulated Impairment	(4,953)		(4,953)		(4,953)
Indefinite lived, Net Carrying Amount	4,117		4,117		4,117
Customer lists
GOODWILL AND OTHER INTANGIBLE ASSETS
Definite-lived, Gross Carrying Amount	38,372		38,372		32,772
Definite-lived, Accumulated Amortization	(26,844)		(26,844)		(22,726)
Definite-lived, Net Carrying Amount	11,528		11,528		10,046
Trade name
GOODWILL AND OTHER INTANGIBLE ASSETS
Definite-lived, Gross Carrying Amount	255		255		255
Definite-lived, Accumulated Amortization	(170)		(170)		(151)
Definite-lived, Net Carrying Amount	85		85		104
Patents and other intangibles
GOODWILL AND OTHER INTANGIBLE ASSETS
Definite-lived, Gross Carrying Amount	9,011		9,011		9,188
Definite-lived, Accumulated Amortization	(5,635)		(5,635)		(5,503)
Definite-lived, Net Carrying Amount	$ 3,376		$ 3,376		$ 3,685

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization (Details) $ in Thousands	Sep. 30, 2020USD ($)
Estimated aggregate amortization expense for definite-lived intangible assets
2020 (remainder of the year)	$ 1,406
2021	3,735
2022	3,668
2023	3,424
2024	1,941
Thereafter	815
Total	$ 14,989

Other Current Assets and Othe_3

Other Current Assets and Other Assets - Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Other Current Assets and Other Assets
Non-trade receivables	$ 7,540	$ 6,711
Prepaid maintenance	3,277	2,767
Prepaid insurance	909	264
Other prepaid assets	2,763	3,931
Total other current assets	$ 14,489	$ 13,673

Other Current Assets and Othe_4

Other Current Assets and Other Assets - Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Other Current Assets and Other Assets
Implementation costs for cloud computing arrangements	$ 4,694	$ 1,964
Cash surrender value of company-owned life insurance	3,811	3,253
Finance lease right-of-use assets	2,795	1,488
Deposits	2,145	1,893
Non-trade receivables	1,791	2,398
Other	474	309
Total other assets	$ 15,710	$ 11,305

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities and Other Liabilities - Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued Expenses and Other Current Liabilities and Other Liabilities
Patient prepayments, deposits, and refunds payable	$ 26,969	$ 24,183
Accrued sales taxes and other taxes	10,240	8,543
Insurance and self-insurance accruals	7,786	8,033
Derivative liability	7,704	3,516
Liabilities incurred to seller in acquisitions	3,656
Accrued professional fees	1,547	2,533
Accrued interest payable	747	266
Other current liabilities	13,785	8,751
Total	$ 72,434	$ 55,825

Accrued Expenses and Other Cu_4

Accrued Expenses and Other Current Liabilities and Other Liabilities - Other liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued Expenses and Other Current Liabilities and Other Liabilities
Supplemental executive retirement plan obligations	$ 19,461	$ 20,851
Derivative liability	16,075	9,821
Unrecognized tax benefits	7,910	5,296
Long-term insurance accruals	7,539	7,424
Deferred payroll taxes	7,118
Other	1,974	2,412
Total	$ 60,077	$ 45,804

Income Taxes - (Details)

Income Taxes - (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Taxes
(Benefit) provision for income taxes	$ (1,911)		$ 2,585	$ (4,750)	$ 3,260
Effective tax rate	(39.00%)		31.20%	(27.30%)	27.10%
Federal statutory tax rate (as a percent)	21.00%		21.00%	21.00%	21.00%
Recognition of tax benefits, Current year		$ 2,200
Recognition of tax benefits, Prior years						$ 6,300
Deferred taxes due to CARES Act	$ 9,500			$ 9,500
Recognition of tax benefits, Prior years due to CARES Act				$ 4,000

Debt and Other Obligations (Det

Debt and Other Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt and Other Obligations
Total debt before unamortized discount and debt issuance costs	$ 529,189	$ 507,201
Unamortized discount and debt issuance costs, net	(7,798)	(8,328)
Total debt	521,391	498,873
Total current portion of long-term debt	27,791	8,752
Long-term debt	493,600	490,121
Term Loan B
Debt and Other Obligations
Total debt before unamortized discount and debt issuance costs	492,375	496,163
Total current portion of long-term debt	5,050	5,050
Seller Notes
Debt and Other Obligations
Total debt before unamortized discount and debt issuance costs	29,208	9,005
Total current portion of long-term debt	21,893	3,175
Deferred payment obligation
Debt and Other Obligations
Total debt before unamortized discount and debt issuance costs	4,000
Finance lease liabilities and other
Debt and Other Obligations
Total debt before unamortized discount and debt issuance costs	3,606	2,033
Total current portion of long-term debt	$ 848	$ 527

Debt and Other Obligations - Re

Debt and Other Obligations - Refinancing of Credit Agreement and Term B Borrowings (Details) $ in Thousands	Mar. 06, 2018USD ($)	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	May 31, 2020	Mar. 31, 2020USD ($)	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Debt and Other Obligations
Outstanding amount of debt		$ 529,189				$ 529,189	$ 507,201
Letters of credit outstanding amount		$ 5,200				5,200
Debt issuance costs						$ 214
LIBOR | Minimum
Debt and Other Obligations
Minimum interest base				1.00%
LIBOR | Maximum
Debt and Other Obligations
Increase in margin(as a percent)				3.75%
Fiscal quarters ended June 30, 2020 through March 31, 2021
Debt and Other Obligations
Consolidated leverage ratio				5.25%
Fiscal quarters ended June 30, 2021 through September 30, 2021
Debt and Other Obligations
Consolidated leverage ratio				5.00%
December 31, 2021 and the last day of each fiscal quarter thereafter
Debt and Other Obligations
Consolidated leverage ratio				4.75%
Credit Agreement, dated March 6, 2018, Term Loan B
Debt and Other Obligations
Outstanding amount of debt	$ 505,000
Weighted average interest rate		3.60%				3.60%
Revolving credit facility
Debt and Other Obligations
Borrowing		$ 22,000	$ 57,000		$ 79,000
Available borrowing capacity		94,800				$ 94,800
Maximum borrowing capacity	605,000
Letters of credit outstanding amount		$ 100,000				$ 100,000
Increase in additional borrowing capacity	$ 125,000
Leverage ratio to increase credit commitment	3.80
Increase in margin(as a percent)	50.00%
Interest rate in excess of applicable rate upon acceleration and default ( as a percent)	2.00%
Revolving credit facility | Minimum
Debt and Other Obligations
Unused commitment fee (as a percent)	0.375%
Revolving credit facility | Maximum
Debt and Other Obligations
Unused commitment fee (as a percent)	0.50%
Revolving credit facility | LIBOR
Debt and Other Obligations
Interest rate margin (as a percent)	1.00%
Revolving credit facility | Federal funds rate
Debt and Other Obligations
Interest rate margin (as a percent)	0.50%
Revolving credit facility | Fiscal quarters ended June 30, 2020 through March 31, 2021
Debt and Other Obligations
Consolidated leverage ratio	4.50%
Revolving credit facility | Fiscal quarters ended June 30, 2021 through March 31, 2022
Debt and Other Obligations
Consolidated leverage ratio	4.25%
Revolving credit facility | Fiscal quarters ended June 30, 2022 and the last day of each fiscal quarter thereafter
Debt and Other Obligations
Consolidated leverage ratio	3.75%
Revolving credit facility | Last day of any fiscal quarter
Debt and Other Obligations
Consolidated leverage ratio	2.75%
Revolving credit facility | Revolving credit facility
Debt and Other Obligations
Maximum borrowing capacity	$ 100,000

Debt and Other Obligations - Se

Debt and Other Obligations - Seller Notes (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Seller Notes
Debt and Other Obligations
Unamortized discount	$ 0.9	$ 0.4
Seller Notes | Minimum
Debt and Other Obligations
Interest rate stated percentage	2.50%
Seller Notes | Maximum
Debt and Other Obligations
Interest rate stated percentage	3.00%
Deferred payment obligation
Debt and Other Obligations
Unamortized discount	$ 0.5
Interest rate stated percentage	3.00%

Debt and Other Obligations - Ma

Debt and Other Obligations - Maturities of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Maturities of debt
2020 (remainder of year)	$ 21,023
2021	9,759
2022	8,494
2023	8,049
2024	7,337
Thereafter	474,527
Total debt before unamortized discount and debt issuance costs, net	529,189	$ 507,201
Unamortized discount and debt issuance costs, net	(7,798)	(8,328)
Total debt	$ 521,391	$ 498,873

Fair Value Measurements - Finan

Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
FAIR VALUE MEASUREMENTS
Unamortized discount and debt issuance costs, net	$ 7,798	$ 8,328
Credit Agreement, dated March 6, 2018, Term Loan B
FAIR VALUE MEASUREMENTS
Unamortized discount and debt issuance costs, net	6,900	7,900
Credit Agreement, dated March 6, 2018, Term Loan B | Carrying Value
FAIR VALUE MEASUREMENTS
Debt	492,400	496,200
Credit Agreement, dated March 6, 2018, Term Loan B | Recurring basis | Level 3 | Fair Value
FAIR VALUE MEASUREMENTS
Debt	487,500
Credit Agreement, dated March 6, 2018, Term Loan B | Revolving credit facility | Recurring basis | Level 3 | Fair Value
FAIR VALUE MEASUREMENTS
Debt		497,400
Seller Notes | Carrying Value
FAIR VALUE MEASUREMENTS
Debt	$ 32,300	$ 900

Derivative Financial Instrume_3

Derivative Financial Instruments - Cash Flow Hedge (Details) - Interest rate swap agreements - Cash flow hedges - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019	Mar. 31, 2018
DERIVATIVE FINANCIAL INSTRUMENTS
Notional amount of derivative instrument	$ 300	$ 312.5	$ 325
Annual reduction in notional amount of derivative			$ 12.5

Derivative Financial Instrume_4

Derivative Financial Instruments - Changes in Net Loss on Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - Interest rate swap agreements - Cash flow hedges - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Changes in Net Gain or Loss on Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
Balance at the beginning of the period	$ (19,612)	$ (10,560)	$ (10,137)	$ (2,936)
Unrealized loss recognized in other comprehensive loss, net of tax	(455)	(2,060)	(12,518)	(10,135)
Reclassification to interest expense, net	1,997	419	4,585	870
Balance at the end of the period	$ (18,070)	$ (12,201)	$ (18,070)	$ (12,201)

Derivative Financial Instrume_5

Derivative Financial Instruments - Fair Value of Derivative Assets and Liabilities (Details) - Cash flow hedges - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued expenses and other current liabilities
Derivatives designated as cash flow hedging instruments:
Liabilities	$ 7,704	$ 3,516
Other liabilities
Derivatives designated as cash flow hedging instruments:
Liabilities	$ 16,075	$ 9,821

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	May 19, 2017	May 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	May 17, 2019
Share Based Compensation
Options outstanding and exercisable (in share)			520,105			520,105
Weighted average exercise price of options exercisable (in dollars per share)			$ 12.77			$ 12.77
Average remaining contractual term of options exercisable						6 years 7 months 6 days
Stock-based compensation expense			$ 3.1		$ 3.4	$ 15.6	$ 10.1
Special Equity Plan
Share Based Compensation
Shares of common stock authorized for issuance under the share-based compensation plan	1,500,000
2019 Omnibus Incentive Plan
Share Based Compensation
Shares of common stock authorized for issuance under the share-based compensation plan								2,025,000
2016 Omnibus Incentive Plan
Share Based Compensation
Available for issuance (in shares)								243,611
Stock Options | Special Equity Plan
Share Based Compensation
Issued (in shares)	800,000
Performance-based stock awards
Share Based Compensation
Shares outstanding			367,097			367,097
Weighted average grant date fair value			$ 18.94			$ 18.94
Performance-based stock awards | Special Equity Plan
Share Based Compensation
Issued (in shares)	300,000
Performance period		33 months
Reduction in performance period		3 months
Incremental fair value				$ 5.9
Unvested restricted stock
Share Based Compensation
Shares outstanding			1,564,081			1,564,081
Employee Service Based Awards
Share Based Compensation
Shares outstanding			1,126,361			1,126,361
Weighted average grant date fair value			$ 19.23			$ 19.23
Director Service Based Awards
Share Based Compensation
Shares outstanding			70,623			70,623
Weighted average grant date fair value			$ 17.08			$ 17.08

Supplemental Executive Retire_3

Supplemental Executive Retirement Plans - Plan Details and Change in Benefit Obligation (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)payment	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Supplemental Executive Retirement Plans
Number of annual payments | payment			15
Change in Benefit Obligation
Benefit obligation at the beginning of the period	$ 17,763	$ 17,535	$ 19,214	$ 18,927
Service cost	98	84	294	251
Interest cost	121	164	363	494
Payments	(12)	(12)	(1,901)	(1,901)
Benefit obligation at the end of the period	17,970	$ 17,771	17,970	$ 17,771
Amounts Recognized in the Condensed Consolidated Balance Sheets:
Current accrued expenses and other current liabilities	1,913		1,913		$ 1,913
Non-current other liabilities	16,057		16,057		17,301
Total accrued liabilities	$ 17,970		$ 17,970		$ 19,214

Supplemental Executive Retire_4

Supplemental Executive Retirement Plans - DC SERP (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Supplemental Executive Retirement Plans
Estimated accumulated benefit obligation	$ 4.2	$ 3.9
Funded estimated accumulated benefit obligation	3.8	3.3
Unfunded estimated accumulated benefit obligation	$ 0.4	$ 0.6

Commitments and Contingencies -

Commitments and Contingencies - Derivative Litigation (Details)	7 Months Ended
	Aug. 31, 2015lawsuit
Commitments and Contingencies
Number of law suits filed	2

Segment and Related Informati_3

Segment and Related Information - Paragraphs (Details)	9 Months Ended
	Sep. 30, 2020segment
Segment and Related Information
Number of operating segments	2

Segment and Related Informati_4

Segment and Related Information - Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment and Related Information
Net revenues	$ 256,637	$ 279,638	$ 723,810	$ 797,155
Material costs	81,462	92,034	228,675	261,810
Personnel expenses	89,727	94,594	252,734	272,795
Depreciation & amortization	8,803	9,373	26,513	26,906
Segment income from operations	13,075	17,403	42,763	38,527
Purchase of property, plant and equipment			19,352	20,262
Patient Care
Segment and Related Information
Net revenues	212,664	230,931	598,706	652,700
Material costs	63,938	71,339	178,851	199,626
Personnel expenses	76,989	81,274	216,910	233,402
Other expenses	34,713	37,245	86,462	112,014
Depreciation & amortization	4,786	4,943	14,089	13,997
Segment income from operations	32,238	36,130	102,394	93,661
Patient Care | Operating segments
Segment and Related Information
Net revenues	212,664	230,931	598,706	652,700
Material costs	56,599	65,055	160,212	181,358
Patient Care | Intersegments
Segment and Related Information
Material costs	7,339	6,284	18,639	18,268
Products & Services
Segment and Related Information
Net revenues	93,984	102,377	264,003	294,700
Material costs	67,535	74,365	188,723	212,429
Personnel expenses	12,738	13,320	35,824	39,393
Other expenses	5,957	6,858	18,614	20,883
Depreciation & amortization	2,633	2,723	7,883	7,862
Segment income from operations	5,121	5,111	12,959	14,133
Products & Services | Operating segments
Segment and Related Information
Net revenues	43,973	48,707	125,104	144,455
Material costs	24,863	26,979	68,463	80,452
Products & Services | Intersegments
Segment and Related Information
Net revenues	50,011	53,670	138,899	150,245
Material costs	$ 42,672	$ 47,386	$ 120,260	$ 131,977

Segment and Related Informati_5

Segment and Related Information - Reconciliation of the Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Segment and Related Information
Income from operations	$ 13,075			$ 17,403			$ 42,763	$ 38,527
Interest expense, net	8,013			8,954			24,918	25,973
Non-service defined benefit plan expense	158			173			474	519
Income before income taxes	4,904			8,276			17,371	12,035
(Benefit) provision for income taxes	(1,911)			2,585			(4,750)	3,260
Net income	6,815	$ 31,054	$ (15,748)	5,691	$ 10,035	$ (6,951)	22,121	8,775
Consolidated net revenues	256,637			279,638			723,810	797,155
Consolidated material costs	81,462			92,034			228,675	261,810
Consolidated purchase of property, plant and equipment							19,352	20,262
Consolidated assets	952,681						952,681		$ 842,253
Corporate & other
Segment and Related Information
Income from operations	(24,284)			(23,838)			(72,590)	(69,267)
Consolidating adjustments
Segment and Related Information
Consolidated net revenues	(50,011)			(53,670)			(138,899)	(150,245)
Consolidated material costs	(50,011)			(53,670)			(138,899)	(150,245)
Patient Care
Segment and Related Information
Income from operations	32,238			36,130			102,394	93,661
Consolidated net revenues	212,664			230,931			598,706	652,700
Consolidated material costs	63,938			71,339			178,851	199,626
Patient Care | Operating segments
Segment and Related Information
Consolidated net revenues	212,664			230,931			598,706	652,700
Consolidated material costs	56,599			65,055			160,212	181,358
Products & Services
Segment and Related Information
Income from operations	5,121			5,111			12,959	14,133
Consolidated net revenues	93,984			102,377			264,003	294,700
Consolidated material costs	67,535			74,365			188,723	212,429
Products & Services | Operating segments
Segment and Related Information
Consolidated net revenues	43,973			48,707			125,104	144,455
Consolidated material costs	$ 24,863			$ 26,979			$ 68,463	$ 80,452