DEI Document
DEI Document - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 27, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-15103 | |
Entity Registrant Name | INVACARE CORPORATION | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 95-2680965 | |
Entity Address, Address Line One | One Invacare Way, | |
Entity Address, City or Town | Elyria, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44035 | |
City Area Code | 440 | |
Local Phone Number | 329-6000 | |
Title of 12(b) Security | Common Shares, without par value | |
Trading Symbol | IVC | |
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 Central Index Key | 0000742112 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Shares [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,411,688 | |
Class B Common Shares [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,357 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net Sales | $ 211,906,000 | $ 235,774,000 | $ 626,646,000 | $ 695,051,000 | |
Cost of products sold | 151,866,000 | 168,189,000 | 446,968,000 | 500,945,000 | |
Gross Profit | 60,040,000 | 67,585,000 | 179,678,000 | 194,106,000 | |
Selling, general and administrative expenses | 55,530,000 | 63,539,000 | 174,672,000 | 197,035,000 | |
Gain on sale of business | 0 | 0 | 9,790,000 | 0 | |
Charges related to restructuring activities | 1,580,000 | 1,628,000 | 4,657,000 | 3,641,000 | |
Operating Income (Loss) | 2,930,000 | 2,418,000 | 10,139,000 | (6,570,000) | |
Net gain on convertible debt derivatives | 0 | 0 | 0 | (1,197,000) | |
Loss on debt extinguishment including debt finance charges and fees | 761,000 | 280,000 | 7,360,000 | 280,000 | |
Interest expense | 7,402,000 | 6,992,000 | 21,132,000 | 22,027,000 | |
Interest Income, Other | 7,000 | 113,000 | 90,000 | 361,000 | |
Loss Before Income Taxes | (5,226,000) | (4,741,000) | (18,263,000) | (27,319,000) | |
Income tax provision | 2,050,000 | 3,300,000 | 4,900,000 | 7,325,000 | |
Net Loss | $ (7,276,000) | $ (8,041,000) | $ (23,163,000) | $ (34,644,000) | |
Dividends Declared per Common Share | $ 0 | $ 0.0125 | $ 0.0125 | $ 0.0375 | |
Net Loss per Share—Basic | |||||
Net Loss per Share—Basic | $ (0.21) | $ (0.24) | $ (0.68) | $ (1.03) | |
Weighted Average Shares Outstanding—Basic | 34,419 | 33,660 | 34,213 | 33,571 | |
Net Loss per Share—Assuming Dilution | |||||
Net Loss per Share—Assuming Dilution | [1] | $ (0.21) | $ (0.24) | $ (0.68) | $ (1.03) |
Weighted Average Shares Outstanding—Assuming Dilution | 34,530 | 33,668 | 34,313 | 33,581 | |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustments | $ 35,944,000 | $ (9,057,000) | $ 36,859,000 | $ (13,041,000) | |
Defined Benefit Plans: | |||||
Amortization of prior service costs and unrecognized losses | (193,000) | (201,000) | (362,000) | (276,000) | |
Deferred tax adjustment resulting from defined benefit plan activity | 9,000 | 38,000 | 25,000 | 54,000 | |
Valuation reserve associated with defined benefit plan activity | (9,000) | (38,000) | (25,000) | (54,000) | |
Current period (loss) gain on cash flow hedges | (2,047,000) | (315,000) | (1,159,000) | 861,000 | |
Deferred tax benefit (provision) related to gain on cash flow hedges | 285,000 | 12,000 | 171,000 | (127,000) | |
Other Comprehensive Income (Loss) | 33,989,000 | (9,561,000) | 35,509,000 | (12,583,000) | |
Comprehensive Income (Loss) | $ 26,713,000 | $ (17,602,000) | $ 12,346,000 | $ (47,227,000) | |
Net Sales, as a Percent of Net Sales | 100.00% | 100.00% | 100.00% | 100.00% | |
Cost of Products Sold, as a Percent of Net Sales | 71.70% | 71.30% | 71.30% | 72.10% | |
Gross Profit, as a Percent of Net Sales | 28.30% | 28.70% | 28.70% | 27.90% | |
Selling, general and administrative expenses, as a Percent of Net Sales | 26.20% | 26.90% | 27.90% | 28.30% | |
Gain on sale of business, as a Percent of Net Sales | 0.00% | 0.00% | (1.60%) | 0.00% | |
Charges related to restructuring activities, as a Percent of Net Sales | 0.70% | 0.70% | 0.70% | 0.50% | |
Operating Gain (Loss), as a Percent of Net Sales | 1.40% | 1.00% | 1.60% | (0.90%) | |
Net loss (gain) on convertible debt derivatives, as a Percent of Net Sales | 0.00% | 0.00% | 0.00% | (0.20%) | |
Interest expense, as a Percent of Net Sales | 3.50% | 3.00% | 3.40% | 3.20% | |
Interest income, as a Percent of Net Sales | 0.00% | 0.00% | 0.00% | (0.10%) | |
Gain (loss) Before Income Taxes, as a Percent of Net Sales | (2.50%) | (2.00%) | (2.90%) | (3.90%) | |
Income Tax Provision, as a Percent of Net Sales | 1.00% | 1.40% | 0.80% | 1.10% | |
Net Gain (Loss), as a percent of Net Sales | (3.40%) | (3.40%) | (3.70%) | (5.00%) | |
Net loss (gain) on debt extinguishment, as a Percent of Net Sales [Line Items] | 0.40% | 0.10% | 1.20% | 0.04% | |
[1] | Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 86,825 | $ 80,063 |
Trade receivables, net | 108,957 | 116,669 |
Installment receivables, net | 261 | 736 |
Inventories, net | 145,452 | 120,500 |
Other current assets | 37,635 | 37,909 |
Total Current Assets | 379,130 | 355,877 |
Other Assets | 3,991 | 4,216 |
Intangibles | 27,770 | 26,447 |
Property and Equipment, net | 53,112 | 46,607 |
Finance Lease, Right-of-Use Asset | 65,108 | 26,900 |
Operating Lease, Right-of-Use Asset | 13,075 | 18,676 |
Goodwill | 401,665 | 373,403 |
Total Assets | 943,851 | 852,126 |
Current Liabilities | ||
Accounts payable | 93,160 | 88,003 |
Accrued expenses | 124,666 | 120,947 |
Current taxes payable | 2,197 | 345 |
Current portion of financing lease obligations | 3,352 | 2,514 |
Current portion of operating lease obligations | 5,843 | 6,790 |
Short-term debt and current maturities of long-term obligations | 4,062 | 58 |
Total Current Liabilities | 233,280 | 218,657 |
Long-Term Debt | 238,202 | 219,464 |
Finance Lease Long-Term Obligations | 63,950 | 26,480 |
Operating Leases Long-Term Obligations | 7,182 | 12,060 |
Other Long-Term Obligations | 70,748 | 66,949 |
Shareholders’ Equity | ||
Preferred Shares (Authorized 300 shares; none outstanding) | 0 | 0 |
Additional paid-in-capital | 324,409 | 312,650 |
Retained earnings | 63,655 | 87,475 |
Accumulated other comprehensive income | 38,637 | 3,128 |
Treasury Shares (4,184 and 3,953 shares at September 30, 2020 and December 31, 2019, respectively) | (106,029) | (104,327) |
Total Shareholders’ Equity | 330,489 | 308,516 |
Total Liabilities and Shareholders’ Equity | 943,851 | 852,126 |
Common Shares [Member] | ||
Shareholders’ Equity | ||
Common Shares | 9,815 | 9,588 |
Class B Common Shares [Member] | ||
Shareholders’ Equity | ||
Common Shares | 2 | 2 |
Total Shareholders’ Equity | $ 2 | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - shares shares in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred Stock, Shares Authorized | 300 | 300 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Treasury Stock, Shares | 4,184 | 3,953 |
Common Shares [Member] | ||
Common Stock, Shares Authorized | 150,000 | 150,000 |
Common Stock, Shares, Issued | 38,596 | 37,609 |
Class B Common Shares [Member] | ||
Common Stock, Shares Authorized | 12,000 | 12,000 |
Common Stock, Shares, Issued | 6 | 6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement Of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities | ||
Net loss | $ (23,163,000) | $ (34,644,000) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Gain on sale of business | 9,790,000 | 0 |
Depreciation and amortization | 10,360,000 | 11,800,000 |
Amortization of operating lease right of use assets | 5,284,000 | 6,927,000 |
Provision for losses on trade and installment receivables | 554,000 | 923,000 |
(Provision) benefit for deferred income taxes | 111,000 | (232,000) |
Provision for other deferred liabilities | 594,000 | 837,000 |
Provision for equity compensation | 6,965,000 | 5,873,000 |
Loss (gain) on disposals of property and equipment | (1,066,000) | 186,000 |
Loss on debt extinguishment including debt finance charges and fees | 7,360,000 | 280,000 |
Amortization of convertible debt discount | 8,629,000 | 9,429,000 |
Amortization of debt fees | 1,329,000 | 1,860,000 |
Gain on convertible debt derivatives | 0 | 1,197,000 |
Changes in operating assets and liabilities: | ||
Trade receivables | 6,160,000 | 1,501,000 |
Installment sales contracts, net | 532,000 | 405,000 |
Inventories, net | (22,021,000) | 3,173,000 |
Other current assets | 1,691,000 | (2,099,000) |
Accounts payable | 5,903,000 | (1,226,000) |
Accrued expenses | 1,616,000 | (7,749,000) |
Other long-term liabilities | (226,000) | (779,000) |
Net Cash Provided by (Used in) Operating Activities | 822,000 | (4,732,000) |
Investing Activities | ||
Purchases of property and equipment | (16,824,000) | (7,177,000) |
Proceeds from sale of property and equipment | 396,000 | 73,000 |
Proceeds from sale of business | 14,563,000 | 0 |
Change in other long-term assets | 67,000 | (72,000) |
Other | 2,176,000 | 0 |
Net Cash Used by Investing Activities | (3,974,000) | (7,176,000) |
Financing Activities | ||
Proceeds from revolving lines of credit and long-term borrowings | 72,551,000 | 0 |
Repurchases of convertible debt, payments on revolving lines of credit and financing leases | (59,483,000) | (16,339,000) |
Payment of financing costs | (1,307,000) | 0 |
Payment of dividends | (414,000) | (1,234,000) |
Payments to debt holders | (5,593,000) | 0 |
Purchase of treasury shares | (1,702,000) | (860,000) |
Net Cash Provided (Used) by Financing Activities | 4,052,000 | (18,433,000) |
Effect of exchange rate changes on cash | 5,862,000 | (1,526,000) |
Cash, Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 6,762,000 | (31,867,000) |
Cash and cash equivalents at beginning of year | 80,063,000 | 116,907,000 |
Cash and cash equivalents at end of period | $ 86,825,000 | $ 85,040,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity Statement - USD ($) | Total | Class B Common Shares [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] |
Total Shareholders’ Equity at Dec. 31, 2018 | $ 359,147,000 | $ 2,000 | $ 9,419,000 | $ 297,919,000 | $ 142,447,000 | $ 12,793,000 | $ (103,433,000) |
Allocated Share-based Compensation Expense | 1,300,000 | 29,000 | 1,619,000 | (348,000) | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | 334,000 | 334,000 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 3,379,000 | 140,000 | 3,751,000 | (512,000) | |||
Net Loss | (34,644,000) | (34,644,000) | |||||
Foreign currency translation adjustments | (13,041,000) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (13,041,000) | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 734,000 | 734,000 | |||||
Amortization of prior service costs and unrecognized losses | (276,000) | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | (276,000) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (47,227,000) | ||||||
Convertible Debt Derivative Adjustments | (220,000) | (220,000) | |||||
Payments of Ordinary Dividends, Common Stock | (1,234,000) | ||||||
Dividends, Common Stock, Cash | (1,234,000) | ||||||
Total Shareholders’ Equity at Sep. 30, 2019 | 315,479,000 | 2,000 | 9,588,000 | 303,403,000 | 106,569,000 | 210,000 | (104,293,000) |
Total Shareholders’ Equity at Jun. 30, 2019 | 331,926,000 | 2,000 | 9,588,000 | 301,833,000 | 115,025,000 | 9,771,000 | (104,293,000) |
Allocated Share-based Compensation Expense | 649,000 | 0 | 649,000 | 0 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Stock Options, Requisite Service Period Recognition | 123,000 | 123,000 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 798,000 | 0 | 798,000 | ||||
Net Loss | (8,041,000) | (8,041,000) | |||||
Foreign currency translation adjustments | (9,057,000) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (9,057,000) | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (303,000) | (303,000) | |||||
Amortization of prior service costs and unrecognized losses | (201,000) | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | (201,000) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (17,602,000) | ||||||
Payments of Ordinary Dividends, Common Stock | (415,000) | ||||||
Dividends, Common Stock, Cash | (415,000) | ||||||
Total Shareholders’ Equity at Sep. 30, 2019 | 315,479,000 | 2,000 | 9,588,000 | 303,403,000 | 106,569,000 | 210,000 | (104,293,000) |
Total Shareholders’ Equity at Dec. 31, 2019 | 308,516,000 | 2,000 | 9,588,000 | 312,650,000 | 87,475,000 | 3,128,000 | (104,327,000) |
Stock Issued During Period, Value, Stock Options Exercised | (1,121,000) | (90,000) | (90,000) | (1,121,000) | |||
Allocated Share-based Compensation Expense | 2,494,000 | 2,494,000 | |||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 3,890,000 | 137,000 | 4,334,000 | (581,000) | |||
Net Loss | (23,163,000) | (23,163,000) | |||||
Foreign currency translation adjustments | 36,859,000 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 36,859,000 | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (988,000) | (988,000) | |||||
Amortization of prior service costs and unrecognized losses | (362,000) | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax | (362,000) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 12,346,000 | ||||||
Exchange of Convertible Notes | 5,021,000 | 5,021,000 | |||||
Payments of Ordinary Dividends, Common Stock | (414,000) | ||||||
Dividends, Common Stock, Cash | (414,000) | ||||||
Adoption of Credit Loss Standard | (243,000) | ||||||
Total Shareholders’ Equity at Sep. 30, 2020 | 330,489,000 | 2,000 | 9,815,000 | 324,409,000 | 63,655,000 | 38,637,000 | (106,029,000) |
Total Shareholders’ Equity at Jun. 30, 2020 | 302,146,000 | 2,000 | 9,815,000 | 322,770,000 | 70,931,000 | 4,648,000 | (106,020,000) |
Allocated Share-based Compensation Expense | 818,000 | 0 | 818,000 | 0 | |||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 812,000 | 0 | 821,000 | (9,000) | |||
Net Loss | (7,276,000) | (7,276,000) | |||||
Foreign currency translation adjustments | 35,944,000 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 35,944,000 | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (1,762,000) | (1,762,000) | |||||
Amortization of prior service costs and unrecognized losses | (193,000) | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 26,713,000 | ||||||
Total Shareholders’ Equity at Sep. 30, 2020 | $ 330,489,000 | $ 2,000 | $ 9,815,000 | $ 324,409,000 | $ 63,655,000 | $ 38,637,000 | $ (106,029,000) |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Principles of Consolidation: The condensed consolidated financial statements include the accounts of the company and its wholly owned subsidiaries and include all adjustments, which were of a normal recurring nature, necessary to present fairly the financial position of the company as of September 30, 2020 and the results of its operations and changes in its cash flow for the nine months ended September 30, 2020 and 2019, respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using an August 31 quarter end to meet filing deadlines. No material subsequent events have occurred related to the European segment, which would require disclosure or adjustment to the company's financial statements. All significant intercompany transactions are eliminated. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year. Use of Estimates: The condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from these estimates. Recent Accounting Pronouncements (Already Adopted): In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Statements." ASU 2016-13 requires a new credit loss standard for most financial assets and certain other instruments. For example, entities are required to use an "expected loss" model that will generally require earlier recognition of allowances for losses for trade receivables. The standard also requires additional disclosures, including disclosures regarding how an entity tracks credit quality. The company adopted ASU 2016-13, effective on January 1, 2020, which resulted in an increase for credit losses of $243,000 with the offsetting impact recorded to retained earnings. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair |
Divested Businesses (Notes)
Divested Businesses (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Divested Businesses [Abstract] | |
Divested Businesses | Divested Businesses On March 7, 2020, the company, completed the sale (the “Transaction”) of its indirect subsidiary, Dynamic Controls, a New Zealand incorporated unlimited company (“Dynamic Controls”), to Allied Motion Christchurch Limited, a New Zealand limited company (the “Purchaser”), pursuant to a Securities Purchase Agreement among the company, Invacare Holdings New Zealand, a New Zealand incorporated unlimited company, and the Purchaser, dated March 6, 2020 (the “Purchase Agreement”). Dynamic Controls is a producer of electronic control systems for powered medical mobility devices, including systems incorporating the LiNX™ technology platform. Dynamic Controls was a component of the All Other Segment. Dynamic Controls is a supplier of power mobility products and respiratory components to the company as well as supplying power mobility products to external customers. Sales in 2020 through the date of disposition were $5,331,000, including intercompany sales of $2,532,000, compared to sales for the full year of 2019 of $30,261,000, including intercompany sales of $13,087,000. Income before income taxes was approximately $445,000 in 2020, through the date of disposition, compared to $853,000 in 2019, inclusive of intercompany profits on sales to the company. The transaction was the result of considering options for the products sold by Dynamic Controls which resulted in selling the business to a third-party which can provide access to further technological innovations to further differentiate the company’s power mobility products. The gross proceeds from the Transaction were $14,563,000, net of taxes and expenses. The company realized a pre-tax gain of $9,790,000 and recorded expenses related to the sale of the business totaling $2,150,000, of which $1,789,000 have been paid as of September 30, 2020. The Purchase Agreement contains customary indemnification obligations of each party with respect to breaches of their respective representations, warranties and covenants, and certain other specified matters, which are subject to certain exceptions, terms and limitations described further in the Purchase Agreement. At the closing of the Transaction, the parties entered into a supply agreement pursuant to which Dynamic Controls will supply certain electronic components as required by the company for a five-year period following the Transaction, including ongoing supply and support of the LiNX™ electronic control system with informatics technology, continued contract manufacturing of certain electronic components for the company’s respiratory products and continued infrastructure and applications support for the informatics solution for the company’s respiratory products. The estimated continued inflows and outflows following the disposal with the Purchaser are not expected to be material to the company. The assets and liabilities of Dynamic Controls as of March 7, 2020 and December 31, 2019 consisted of the following (in thousands): March 7, 2020 December 31, 2019 Trade receivables, net $ 4,129 $ 1,804 Inventories, net 3,082 3,008 Other assets 855 933 Property and equipment, net 600 707 Operating lease assets, net 2,127 1,870 Total assets $ 10,793 $ 8,322 Accounts payable $ 4,692 $ 4,501 Accrued expenses 2,473 2,108 Current taxes payable 41 92 Current portion of operating lease obligations 366 393 Long-term obligations 1,019 1,754 Total liabilities $ 8,591 $ 8,848 Trade receivables as of March 7, 2020 includes receivables previously classified as intercompany related to product sold by Dynamic Controls to other Invacare entities. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consist of the following (in thousands): September 30, 2020 December 31, 2019 Accounts receivable, gross $ 132,809 $ 141,732 Customer rebate reserve (13,075) (13,922) Cash discount reserves (5,290) (5,326) Allowance for doubtful accounts (4,697) (4,804) Other, principally returns and allowances reserves (790) (1,011) Accounts receivable, net $ 108,957 $ 116,669 Reserves for customer rebates and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such, the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly. Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. Substantially all the company’s receivables are due from health care, medical equipment providers and long-term care facilities predominantly located throughout the United States, Australia, Canada, New Zealand, China and Europe. A significant portion of products sold to providers, both foreign and domestic, are ultimately funded through government reimbursement programs such as Medicare and Medicaid in the U.S. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability. The company adopted ASU 2016-13, "Measurement of Credit Losses on Financial Statements" on January 1, 2020. Accordingly, the company is now applying an "expected loss" model that will generally require earlier recognition of allowances for losses for trade receivables. In addition, the company expects more variability in its allowance for doubtful accounts as it previously provided for bad debts based on a specific reserve methodology while the new expected loss methodology requires companies to provide for estimated losses beginning at the time of sale. The adoption of the new standard resulted in an increase in credit losses of $243,000 as disclosed in the Condensed Consolidated Statement of Shareholders' Equity. The company's approach is to separate its receivables into good-standing and collection receivables. Good-standing receivables are assigned to risk pools of high, medium and low. The risk pools are driven by the specifics associated with the geography of origination. Expected loss percentages are calculated and assigned to each risk pool, driven primarily by historical experience. The historical loss percentages are calculated for each risk pool and then judgmentally revised to consider current risk factors as well as consideration of the impact of forecasted events, as applicable. The expected loss percentages are then applied to receivables balances each period to determine the allowance for doubtful accounts. In North America, excluding Canada, good-standing receivables are assigned to the low risk pool and assigned an expected loss percentage of 1.0% as these receivables are deemed to share the same risk profile and collections efforts are the same. Installment receivables in North America are characterized as collection receivables and thus reserves based on specific analysis of each customer. In Canada, good-standing receivables and installment receivables are deemed low risk and assigned a loss percentage of 0.2%. In Europe, expected losses are determined by each location in each region. Most locations have a majority of their receivables assigned to the low risk pool, which has an average expected loss percentage of 0.3%. About half of the locations have a portion of their receivables assigned as medium risk with an average expected loss percentage of 0.9%. Only a few locations have any receivables characterized as high risk and the average credit loss percentage for those locations is 2.7%. Collection risk is generally low as payment terms in certain key markets, such as Germany, are immediate and in many locations the ultimate customer is the government. In the Asia Pacific region, receivables are characterized as low risk, which have an average expected loss percentage of 0.3%. Historical losses are low in this region where the use of credit insurance is often customary. The movement in the trade receivables allowance for doubtful accounts was as follows (in thousands): Nine Months Ended Balance as of beginning of period $ 4,804 Current period provision 522 Direct write-offs charged against the allowance (629) Balance as of end of period $ 4,697 The current period provision includes the immaterial impact of the adoption of ASU 2016-03. The company did not make any material changes to the assignment of receivables to the different risk pools or to the expected loss reserves in the quarter. The company is monitoring the impacts of the COVID-19 pandemic and the possibility for an impact on collections, but to date this has not materially impacted 2020. For collections receivables, the estimated allowance for uncollectible amounts is based primarily on management’s evaluation of the financial condition of each customer. In addition, as a result of the company's financing arrangement with DLL, a third-party financing company which the company has worked with since 2000, management monitors the collection status of these contracts in accordance with the company’s limited recourse obligations and provides amounts necessary for estimated losses in the allowance for doubtful accounts and establishes reserves for specific customers as needed. The company writes off uncollectible trade accounts receivable after such receivables are moved to collection status and legal remedies are exhausted. See Concentration of Credit Risk in the Notes to the Condensed Consolidated Financial Statements for a description of the financing arrangement. Long-term installment receivables are included in “Other Assets” on the condensed consolidated balance sheet. Upon adoption of ASU 2016-03, the company recorded a new contingent liability in the amount of $306,000 related to the contingent aspect of the company's guarantee associated with its arrangement with DLL. The contingent liability is recorded applying the same expected loss model used for the trade and installment receivables recorded on the company's books. Specifically, historical loss history is used to determine the expected loss percentage, which is then adjusted judgmentally to consider other factors, as needed. The company’s U.S. customers electing to finance their purchases can do so using DLL. In addition, the company, prior to 2020, provided financing directly for its Canadian customers for which DLL is not an option, as DLL typically provides financing to Canadian customers only on a limited basis. The installment receivables recorded on the books of the company represent a single portfolio segment of finance receivables to the independent provider channel and long-term care customers. The portfolio segment is comprised of two classes of receivables distinguished by geography and credit quality. The U.S. installment receivables are the first class and represent installment receivables repurchased from DLL because the customers were in default. Default with DLL is defined as a customer being delinquent by three payments. The Canadian installment receivables represent the second class of installment receivables which were originally financed by the company because third party financing was not available to the HME providers. The Canadian installment receivables were typically financed for twelve months and historically have had a very low risk of default. The estimated allowance for uncollectible amounts and evaluation for both classes of installment receivables is based on the company’s quarterly review of the financial condition of each individual customer with the allowance for doubtful accounts adjusted accordingly. Installments are individually and not collectively reviewed. The company assesses the bad debt reserve levels based upon the status of the customer’s adherence to a legally negotiated payment schedule and the company’s ability to enforce judgments, liens, etc. For purposes of granting or extending credit, the company utilizes a scoring model to generate a composite score that considers each customer’s consumer credit score and/or D&B credit rating, payment history, security collateral and time in business. Additional analysis is performed for most customers desiring credit greater than $250,000, which generally includes a detailed review of the customer’s financial statements as well as consideration of other factors such as exposure to changing reimbursement laws. Interest income is recognized on installment receivables based on the terms of the installment agreements. Installment accounts are monitored and if a customer defaults on payments and is moved to collection, interest income is no longer recognized. Subsequent payments received once an account is put on non-accrual status are generally first applied to the principal balance and then to the interest. Accruing of interest on collection accounts would only be restarted if the account became current again. All installment accounts are accounted for using the same methodology regardless of the duration of the installment agreements. When an account is placed in collection status, the company goes through a legal process for pursuing collection of outstanding amounts, the length of which typically approximates eighteen months. Any write-offs are made after the legal process has been completed. Installment receivables consist of the following (in thousands): September 30, 2020 December 31, 2019 Current Long- Total Current Long- Total Installment receivables $ 555 $ 228 $ 783 $ 1,192 $ 1,257 $ 2,449 Less: Unearned interest (3) — (3) (22) — (22) 552 228 780 1,170 1,257 2,427 Allowance for doubtful accounts (291) (164) (455) (434) (1,080) (1,514) Installment receivables, net $ 261 $ 64 $ 325 $ 736 $ 177 $ 913 Installment receivables purchased from DLL during the nine months ended September 30, 2020 increased the gross installment receivables balance by $343,000, which will be part of the company's 2020 class of installment receivables. No sales of installment receivables were made by the company during the quarter. There was no impact on the allowance for doubtful accounts for installment receivables as a result of the adoption of ASU 2016-03 as the installment receivables in the U.S. are specifically reserved for by account and no adjustment was needed to the allowance for doubtful accounts for Canada installment receivables. The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands): Nine Months Ended Year Ended December 31, 2019 Balance as of beginning of period $ 1,514 $ 1,542 Current period provision 32 479 Direct write-offs charged against the allowance (1,091) (507) Balance as of end of period $ 455 $ 1,514 Installment receivables by class as of September 30, 2020 consist of the following (in thousands): Total Unpaid Related Interest U.S. Impaired installment receivables with a related allowance recorded $ 649 $ 649 $ 453 $ — Canada Non-Impaired installment receivables with no related allowance recorded 132 129 — 26 Impaired installment receivables with a related allowance recorded 2 2 2 — Total Canadian installment receivables 134 131 2 26 Total Non-Impaired installment receivables with no related allowance recorded 132 129 — 26 Impaired installment receivables with a related allowance recorded 651 651 455 — Total installment receivables $ 783 $ 780 $ 455 $ 26 Installment receivables by class as of December 31, 2019 consist of the following (in thousands): Total Unpaid Related Interest U.S. Impaired installment receivables with a related allowance recorded $ 1,762 $ 1,762 $ 1,497 $ — Canada Non-Impaired installment receivables with no related allowance recorded 670 648 — 92 Impaired installment receivables with a related allowance recorded 17 17 17 — Total Canadian installment receivables 687 665 17 92 Total Non-Impaired installment receivables with no related allowance recorded 670 648 — 92 Impaired installment receivables with a related allowance recorded 1,779 1,779 1,514 — Total installment receivables $ 2,449 $ 2,427 $ 1,514 $ 92 Installment receivables with a related allowance recorded as noted in the table above represent those installment receivables on a non-accrual basis in accordance with ASU 2010-20. As of September 30, 2020, the company had no U.S. installment receivables past due of 90 days or more for which the company is still accruing interest. Individually, all U.S. installment receivables are assigned a specific allowance for doubtful accounts based on management’s review when the company does not expect to receive both the contractual principal and interest payments as specified in the loan agreement. In Canada, the company had an immaterial amount of Canadian installment receivables which were past due of 90 days or more as of December 31, 2019 for which the company was still accruing interest. The aging of the company’s installment receivables was as follows (in thousands): September 30, 2020 December 31, 2019 Total U.S. Canada Total U.S. Canada Current $ 132 $ — $ 132 $ 659 $ — $ 659 0-30 Days Past Due — — — 2 — 2 31-60 Days Past Due — — — 4 — 4 61-90 Days Past Due — — — — — — 90+ Days Past Due 651 649 2 1,784 1,762 22 $ 783 $ 649 $ 134 $ 2,449 $ 1,762 $ 687 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories, Net Inventories consist of the following (in thousands): September 30, 2020 December 31, 2019 Finished goods $ 68,599 $ 54,064 Raw materials 66,093 54,638 Work in process 10,760 11,798 Inventories, net $ 145,452 $ 120,500 |
Other Current Assets
Other Current Assets | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Tax receivables principally value added taxes $ 23,188 $ 16,049 Receivable due from information technology provider 2,402 6,262 Prepaid inventory 1,392 684 Derivatives (foreign currency forward exchange contracts) 599 838 Service contracts 446 2,013 Prepaid insurance 341 2,918 Deferred financing fees 209 207 Prepaid social charges 95 1,216 Recoverable income taxes 50 297 Prepaid and other current assets 8,913 7,425 Other Current Assets $ 37,635 $ 37,909 |
Other Long-Term Assets
Other Long-Term Assets | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | Other Long-Term Assets Other long-term assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Cash surrender value of life insurance policies $ 2,224 $ 2,124 Deferred income taxes 1,032 928 Deferred financing fees 461 602 Investments 85 85 Installment receivables 64 177 Other 125 300 Other Long-Term Assets $ 3,991 $ 4,216 |
Property And Equipment
Property And Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment | Property and Equipment Property and equipment consist of the following (in thousands): September 30, 2020 December 31, 2019 Machinery and equipment $ 291,902 $ 296,078 Land, buildings and improvements 28,088 33,054 Capitalized software 13,787 3,509 Furniture and fixtures 9,866 9,898 Leasehold improvements 8,087 9,023 Property and Equipment, gross 351,730 351,562 Accumulated depreciation (298,618) (304,955) Property and Equipment, net $ 53,112 $ 46,607 Machinery and equipment includes demonstration units placed in provider locations which are depreciated to their estimated recoverable values over their estimated useful lives. In the fourth quarter of 2019, the company initiated the first stage of an Enterprise Resource Planning ("ERP") software implementation. As a result of the initiation of the ERP project, the company capitalized certain costs in accordance with ASC 350 as shown in capitalized software above. In the third quarter of 2018, the company agreed to sell its Isny, Germany location with a net book value at the signing of the agreement of approximately $2,900,000, which is included in Land, buildings and improvements in the table above as of December 31, 2019. In accordance with the agreement, control transferred to the buyer in April 2020. The company recorded a gain on the transaction of $971,000. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The change in goodwill from December 31, 2019 to September 30, 2020 was due to foreign currency translation. In accordance with Intangibles—Goodwill and Other , ASC 350, goodwill is tested annually for impairment. The company first estimates the fair value of each reporting unit and compares the calculated fair value to the carrying value of each reporting unit. A reporting unit is defined as an operating segment or one level below. The company has determined that its reporting units are North America / HME, Europe, Institutional Products Group and Asia Pacific. In consideration of the negative impact of COVID-19 on the global economy, the company performed an interim test of goodwill for impairment in the first quarter of 202 0 and no impairment was recorded. For the second and third quarters of 2020 , the company concluded that the facts and circumstances driving the conclusions from the first quarter review had not changed materially. While the |
Intangibles
Intangibles | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangibles | Intangibles The company's intangibles consist of the following (in thousands): September 30, 2020 December 31, 2019 Historical Accumulated Historical Accumulated Customer lists $ 54,267 $ 54,267 $ 51,108 $ 51,108 Trademarks 25,019 — 23,479 — Developed technology 7,918 7,150 7,483 6,642 Patents 5,514 5,514 5,521 5,521 License agreements 2,864 891 2,884 770 Other 1,161 1,151 1,163 1,150 Intangibles $ 96,743 $ 68,973 $ 91,638 $ 65,191 All the company’s intangible assets have been assigned definite lives and continue to be amortized over their useful lives, except for trademarks shown above, which have indefinite lives. The changes in intangible balances reflected on the balance sheet from December 31, 2019 to September 30, 2020 were the result of foreign currency translation and amortization. The company evaluates the carrying value of definite-lived assets annually in the fourth quarter and whenever events or circumstances indicate possible impairment. In consideration of the negative impact of COVID-19 on the g lobal economy, the company performed a review of intangibles for impairment in the first quarter of 2020 and concluded there was no impairment to be recorded. For the second and third quarters of 2020, the company concluded that the facts and circumstances driving the conclusions from the first quarter review had not changed materially. Definite-lived assets are determined to be impaired if the future undiscounted cash flows expected to be generated by the asset are less than the carrying value. Actual impairment amounts for definite- lived assets are then calculated using a discounted cash flow calculation. Any impairment amounts for indefinite-lived assets are calculated as the difference between the future discounted cash flows expected to be generated by the asset less than the carrying value for the asset. Amortization expense related to intangibles was $276,000 in the first nine months of 2020 and is expected to be $419,000 in 2020, $390,000 in 2021, $390,000 in 2022, $389,000 in 2023, $355,000 in 2024 and $212,000 in 2025. Amortized intangibles are being amortized on a straight-line basis over remaining lives of 1 to 10 years with most of the intangibles being amortized over an average remaining life of approximately 8 years. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of accruals for the following (in thousands): September 30, 2020 December 31, 2019 Salaries and wages $ 34,612 $ 29,725 Taxes other than income taxes, primarily Value Added Taxes 29,830 22,194 Warranty 11,144 11,626 Professional 8,481 6,869 Severance 5,988 7,023 Interest 4,663 3,608 Rebates 4,146 10,743 IT service contracts 3,790 6,125 Freight 3,710 3,744 Deferred revenue 3,436 3,173 Derivative liabilities (foreign currency forward exchange contracts) 2,824 905 Product liability, current portion 2,810 2,736 Insurance 781 699 Rent 568 415 Supplemental Executive Retirement Program liability 391 391 Advance payment on sale of land & buildings — 3,471 IT licenses — 2,114 Other items, principally trade accruals 7,492 5,386 Accrued Expenses $ 124,666 $ 120,947 Generally, the company's products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sales to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. In addition, the company has sold extended warranties that, while immaterial, require the company to defer the revenue associated with those warranties until earned. The company has established procedures to appropriate defer such revenue. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company's warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product field action and recalls, which could require additional warranty reserve provision. Accrued rebates relate to several volume incentive programs the company offers its customers. The company accounts for these rebates as a reduction of revenue when the products are sold. Rebates are netted against gross accounts receivables. If rebates are in excess of such receivables, they are then classified as accrued expenses. The reduction in accrued rebates from December 31, 2019 to September 30, 2020 primarily relates to payments principally made in the first quarter each year. In the fourth quarter of 2019, the company entered into an agreement with an IT provider to outsource substantially all of the company’s information technology business service activities, including, among other things, support, rationalization and upgrading of the company’s legacy information technology systems and implementation of a global enterprise resource planning (“ERP”) system. Accrued expenses related to IT outsourcing are reflected in IT service contracts. Separately, the company entered into licenses for a new ERP system which are shown as IT licenses. The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): Balance as of January 1, 2020 $ 11,626 Warranties provided during the period 4,311 Settlements made during the period (5,926) Changes in liability for pre-existing warranties during the period, including expirations 1,133 Balance as of September 30, 2020 $ 11,144 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures | Debt consists of the following (in thousands): September 30, 2020 December 31, 2019 Convertible senior notes at 5.00%, due in February 2021 $ 1,224 $ 56,628 Convertible senior notes at 4.50%, due in June 2022 72,652 101,815 Convertible senior notes Series I at 5.00%, due in November 2024 62,443 60,817 Convertible senior notes Series II at 5.00%, due November 2024 63,556 — Other obligations 42,389 262 242,264 219,522 Less current maturities of long-term debt (4,062) (58) Long-Term Debt $ 238,202 $ 219,464 On September 30, 2015, the company entered into an Amended and Restated Revolving Credit and Security Agreement, which was subsequently amended (the “Credit Agreement”) and which matures on January 16, 2024. The Credit Agreement was entered into by and among the company, certain of the company’s direct and indirect U.S. and Canadian subsidiaries and certain of the company’s European subsidiaries (together with the company, the “Borrowers”), certain other of the company’s direct and indirect U.S., Canadian and European subsidiaries (the “Guarantors”), and PNC Bank, National Association (“PNC”), JPMorgan Chase Bank, N.A., J.P. Morgan Europe Limited, KeyBank National Association, and Citizens Bank, National Association (the “Lenders”). PNC is the administrative agent (the “Administrative Agent”) and J.P. Morgan Europe Limited is the European agent (the “European Agent”) under the Credit Agreement. In connection with entering into the company's Credit Agreement, the company incurred fees which were capitalized and are being amortized as interest expense. As of September 30, 2020, debt fees yet to be amortized through January 2024 totaled $670,000. The company had outstanding letters of credit of $7,740,000 and $8,011,000 as of September 30, 2020 and December 31, 2019, respectively. Outstanding letters of credit and other reserves impacting borrowing capacity were $7,653,000 and $8,827,000 as of September 30, 2020 and December 31, 2019, respectively. The company had outstanding borrowings of $23,700,000 under its U.S. and Canadian Credit Facility as of September 30, 2020. The company had outstanding borrowings of $6,322,000 (€5,300,000) under its French Credit Facility and $2,138,000 (£1,600,000) under its UK Credit Facility as of September 30, 2020, together referred to as the European Credit Facility. The company had no borrowings under the Credit Facilities as of December 31, 2019. The weighted average interest rate on all borrowings, excluding financing leases, was 4.63% for the nine months ended September 30, 2020 and 4.78% for the year ended December 31, 2019. U.S. and Canadian Borrowers Credit Facility For the company's U.S. and Canadian Borrowers, the Credit Agreement provides for an asset-based-lending senior secured revolving credit facility which is secured by substantially all the company’s U.S. and Canadian assets, other than real estate. The Credit Agreement provides the company and the other Borrowers with a credit facility in an aggregate principal amount of $60,000,000, subject to availability based on a borrowing base formula, under a senior secured revolving credit, letter of credit and swing line loan facility (the “U.S. and Canadian Credit Facility”). Up to $20,000,000 of the U.S. and Canadian Credit Facility will be available for issuance of letters of credit. The aggregate principal amount of the U.S. and Canadian Credit Facility may be increased by up to $25,000,000 to the extent requested by the company and agreed to by any Lender or new financial institution approved by the Administrative Agent. The aggregate borrowing availability under the U.S. and Canadian Credit Facility is determined based on a borrowing base formula. The aggregate usage under the U.S. and Canadian Credit Facility may not exceed an amount equal to the sum of (a) 85% of eligible U.S. accounts receivable plus (b) the lesser of (i) 70% of eligible U.S. inventory and eligible foreign in-transit inventory and (ii) 85% of the net orderly liquidation value of eligible U.S. inventory and eligible foreign in-transit inventory (not to exceed $4,000,000), plus (c) the lesser of (i) 85% of the net orderly liquidation value of U.S. eligible machinery and equipment and (ii) $0 as of September 30, 2020 (subject to reduction as provided in the Credit Agreement), plus (d) 85% of eligible Canadian accounts receivable, plus (e) the lesser of (i) 70% of eligible Canadian inventory and (ii) 85% of the net orderly liquidation value of eligible Canadian inventory, less (f) swing loans outstanding under the U.S. and Canadian Credit Facility, less (g) letters of credit issued and undrawn under the U.S. and Canadian Credit Facility, less (h) a $3,000,000 minimum availability reserve, less (i) other reserves required by the Administrative Agent, and in each case subject to the definitions and limitations in the Credit Agreement. As of September 30, 2020, the company was in compliance with all covenant requirements. As of September 30, 2020, the company had gross borrowing availability of $23,700,000 under the U.S. and Canadian Credit Facility under the Credit Agreement, considering the minimum availability reserve, then-outstanding letters of credit, other reserves and the $7,500,000 dominion trigger amount described below. Borrowings under the U.S. and Canadian Credit Facility are secured by substantially all of the company’s U.S. and Canadian assets, other than real estate. Interest will accrue on outstanding indebtedness under the Credit Agreement at the LIBOR rate, plus a margin ranging from 2.25% to 2.75%, or at the alternate base rate, plus a margin ranging from 1.25% to 1.75%, as selected by the company. Borrowings under the U.S. and Canadian Credit Facility are subject to commitment fees of 0.25% or 0.375% per year, depending on utilization. The Credit Agreement contains customary representations, warranties and covenants. Exceptions to the operating covenants in the Credit Agreement provide the company with flexibility to, among other things, enter into or undertake certain sale and leaseback transactions, dispositions of assets, additional credit facilities, sales of receivables, additional indebtedness and intercompany indebtedness, all subject to limitations set forth in the Credit Agreement, as amended. The Credit Agreement also contains a covenant requiring the company to maintain minimum availability under the U.S. and Canadian Credit Facility of not less than the greater of (i) 11.25% of the maximum amount that may be drawn under the U.S. and Canadian Credit Facility for five (5) consecutive business days, or (ii) $6,000,000 on any business day. The company also is subject to dominion triggers under the U.S. and Canadian Credit Facility requiring the company to maintain borrowing capacity of not less than $7,500,000 on any business day in order to avoid triggering full control by an agent for the Lenders of the company's cash receipts for application to the company’s obligations under the agreement. The Credit Agreement contains customary default provisions, with certain grace periods and exceptions, which provide for events of default that include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption of any material manufacturing facilities for more than 10 consecutive days. There was $23,700,000 outstanding under the U.S. and Canadian Credit Facility at September 30, 2020. European Credit Facility The Credit Agreement also provides for a revolving credit, letter of credit and swing line loan facility which gives the company and the European Borrowers the ability to borrow up to an aggregate principal amount of $30,000,000, with a $5,000,000 sublimit for letters of credit and a $2,000,000 sublimit for swing line loans (the “European Credit Facility”). Up to $15,000,000 of the European Credit Facility will be available to each of Invacare Limited (the “UK Borrower”) and Invacare Poirier SAS (the “French Borrower” and, together with the UK Borrower, the “European Borrowers”). The European Credit Facility matures in January 2024, together with the U.S. and Canadian Credit Facility. The aggregate borrowing availability for each European Borrower under the European Credit Facility is determined based on a borrowing base formula. The aggregate borrowings of each of the European Borrowers under the European Credit Facility may not exceed an amount equal to (a) 85% of the European Borrower’s eligible accounts receivable, less (b) the European Borrower’s borrowings and swing line loans outstanding under the European Credit Facility, less (c) the European Borrower’s letters of credit issued and undrawn under the European Credit Facility, less (d) a $3,000,000 minimum availability reserve, less (e) other reserves required by the European Agent, and in each case subject to the definitions and limitations in the Credit Agreement. As of September 30, 2020, the gross borrowing availability to the European Borrowers under the European Credit Facility was $8,564,000, considering the $3,000,000 minimum availability reserve and the $3,750,000 dominion trigger amount described below. The aggregate principal amount of the European Credit Facility may be increased by up to $10,000,000 to the extent requested by the company and agreed to by any Lender or Lenders that wish to increase their lending participation or, if not agreed to by any Lender, a new financial institution that agrees to join the European Credit Facility and that is approved by the Administrative Agent and the European Agent. Interest will accrue on outstanding indebtedness under the European Credit Facility at the LIBOR rate, plus a margin ranging from 2.50% to 3.00%, or for swing line loans, at the overnight LIBOR rate, plus a margin ranging from 2.50% to 3.00%, as selected by the company. The margin that will be adjusted quarterly based on utilization. Borrowings under the European Credit Facility are subject to commitment fees of 0.25% or 0.375% per year, depending on utilization. The European Credit Facility is secured by substantially all the personal property assets of the UK Borrower and its in-country subsidiaries, and all the receivables of the French Borrower and its in-country subsidiaries. The UK and French facilities (which comprise the European Credit Facility) are cross collateralized, and the US personal property assets previously pledged under the U.S. and Canadian Credit Facility also serve as collateral for the European Credit Facility. The European Credit Facility is subject to customary representations, warranties and covenants generally consistent with those applicable to the U.S. and Canadian Credit Facility. Exceptions to the operating covenants in the Credit Agreement provide the company with flexibility to, among other things, enter into or undertake certain sale/leaseback transactions, dispositions of assets, additional credit facilities, sales of receivables, additional indebtedness and intercompany indebtedness, all subject to limitations set forth in the Credit Agreement. The Credit Agreement also contains a covenant requiring the European Borrowers to maintain undrawn availability under the European Credit Facility of not less than the greater of (i) 11.25% of the maximum amount that may be drawn under the European Credit Facility for five (5) consecutive business days, or (ii) $3,000,000 on any business day. The European Borrowers also are subject to cash dominion triggers under the European Credit Facility requiring the European Borrower to maintain borrowing capacity of not less than $3,750,000 on any business day in order to avoid triggering full control by an agent for the Lenders of the European Borrower’s cash receipts for application to its obligations under the European Credit Facility. The European Credit Facility is subject to customary default provisions, with certain grace periods and exceptions, consistent with those applicable to the U.S. and Canadian Credit Facility, which provide that events of default include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, cross-default, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption in the operations of any material manufacturing facility for more than 10 consecutive days. The proceeds of the European Credit Facility will be used to finance the working capital and other business needs of the company. As of September 30, 2020, the company had borrowings of $6,322,000 (€5,300,000) under its French Credit Facility and $2,138,000 (£1,600,000) under its UK Credit Facility as of September 30, 2020, together referred to as the European Credit Facility. Convertible senior notes due 2021 In the first quarter of 2016, the company issued $150,000,000 aggregate principal amount of 5.00% Convertible Senior Notes due 2021 (the “2021 notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2021 notes bear interest at a rate of 5.00% per year payable semi-annually in arrears on February 15 and August 15 of each year, beginning August 15, 2016. The 2021 notes will mature on February 15, 2021, unless repurchased or converted in accordance with their terms prior to such date. Prior to August 15, 2020, the 2021 notes were convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Prior to May 16, 2019, the 2021 notes were convertible, subject to certain conditions, into cash only. On May 16, 2019, the company obtained shareholder approval under applicable New York Stock Exchange rules such that conversion of the 2021 notes may be settled in cash, the company’s common shares or a combination of cash and the company’s common shares, at the company’s election. At September 30, 2020, $1,250,000 aggregate principal amount of the 2021 Notes remained outstanding, following the repurchase of $16,000,000 aggregate principal amount of 2021 Notes for cash in the third quarter of 2019, the exchange transactions completed in the fourth quarter of 2019 and the second quarter of 2020, as further discussed below, and the repurchases of $24,466,000 aggregate principal amount in the third quarter of 2020. The $24,466,000 repurchases in the third quarter of 2020, resulted in a $761,000 loss on debt extinguishment. Holders of the 2021 notes may convert their 2021 notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2020 only under the following circumstances: (1) during any fiscal quarter commencing after March 31, 2016 (and only during such fiscal quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2021 notes on each applicable trading day; (2) during the five Holders of the 2021 notes will have the right to require the company to repurchase all or some of their 2021 notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The initial conversion rate is 60.0492 common shares per $1,000 principal amount of 2021 notes (equivalent to an initial conversion price of approximately $16.65 per common share). Until the company received shareholder approval on May 16, 2019 authorizing it to elect to settle future conversions of the 2021 Notes in common shares, the company separately accounted for the conversion features as a derivative. The derivative was capitalized on the balance sheet as a long-term liability with adjustment to reflect fair value each quarter until the change to the conversion features as a result of the shareholder approval received on May 16, 2019 resulted in the termination of the derivative. The fair value of the convertible debt conversion liability at issuance was $34,480,000. The company recognized a loss of $2,210,000 for the nine months ended September 30, 2019 related to the convertible debt conversion liability. In connection with the offering of the 2021 notes, the company entered into privately negotiated convertible note hedge transactions with two financial institutions (the “option counterparties”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the 2021 notes, and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the 2021 notes. The company evaluated the note hedges under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the note hedges should be accounted for as derivatives. These derivatives were capitalized on the balance sheet as long-term assets and will be adjusted to reflect fair value each quarter. The fair value of the convertible note hedge assets at issuance was $27,975,000. The company recognized a gain of $2,852,000 for the nine months ended September 30, 2019 related to the convertible note hedge asset. The company entered into separate, privately negotiated warrant transactions with the option counterparties at a higher strike price relating to the same number of the company’s common shares, subject to customary anti-dilution adjustments, pursuant to which the company sold warrants to the option counterparties. The warrants could have a dilutive effect on the company’s outstanding common shares and the company’s earnings per share to the extent that the price of the company’s common shares exceeds the strike price of those warrants. The initial strike price of the warrants is $22.4175 per share and is subject to certain adjustments under the terms of the warrant transactions. The company evaluated the warrants under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the warrants meet the definition of a derivative, are indexed to the company's own stock and should be classified in shareholder's equity. The amount paid for the warrants and capitalized in shareholder's equity was $12,376,000. The net proceeds from the offering of the 2021 notes were approximately $144,034,000, after deducting fees and offering expenses of $5,966,000, which were paid in 2016. These debt issuance costs were capitalized and are being amortized as interest expense through February 2021. Debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Approximately $5,000,000 of the net proceeds from the offering were used to repurchase the company’s common shares from purchasers of 2021 notes in the offering in privately negotiated transactions. A portion of the net proceeds from the offering were used to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to the company from the warrant transactions), with a net cost of $15,600,000. The liability components of the 2021 notes consist of the following (in thousands): September 30, 2020 December 31, 2019 Principal amount of liability component $ 1,250 $ 61,091 Unamortized discount (22) (3,916) Debt fees (4) (547) Net carrying amount of liability component $ 1,224 $ 56,628 The unamortized discount of $22,000 is to be amortized through February 2021. The effective interest rate on the liability component was 11.1%. Non-cash interest expense of $261,000 and $1,767,000 was recognized for the three and nine months ended September 30, 2020, respectively, compared to $1,444,000 and $5,391,000 for the three and nine months ended September 30, 2019, respectively. Actual interest expense accrued was $241,000 and $1,617,000 for the three and nine months ended September 30, 2020, respectively, compared to $1,834,000 and $5,584,000 for the three and nine months ended September 30, 2019, respectively, based on the stated coupon rate of 5.0%. The 2021 notes were not convertible as of September 30, 2020 nor was the applicable conversion threshold met. Convertible senior notes due 2022 In the second quarter of 2017, the company issued $120,000,000 aggregate principal amount of 4.50% Convertible Senior Notes due 2022 (the “2022 notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2022 notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2017. The 2022 notes will mature on June 1, 2022, unless repurchased or converted in accordance with their terms prior to such date. Prior to December 1, 2021, the 2022 notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Prior to May 16, 2019, the 2022 notes were convertible, subject to certain conditions, into cash only. On May 16, 2019, the company obtained shareholder approval under applicable New York Stock Exchange rules such that conversion of the 2022 notes may be settled in cash, the company’s common shares or a combination of cash and the company’s common shares, at the company’s election. At September 30, 2020, $81,500,000 aggregate principal amount of the 2022 Notes remained outstanding, following the exchange transactions completed in the second quarter of 2020, as further discussed below. Holders of the 2022 notes may convert their 2022 notes at their option at any time prior to the close of business on the business day immediately preceding December 1, 2021 only under the following circumstances: (1) during any fiscal quarter commencing after September 30, 2017 (and only during such fiscal quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2022 notes on each applicable trading day; (2) during the five Holders of the 2022 notes will have the right to require the company to repurchase all or some of their 2022 notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The initial conversion rate is 61.6095 common shares per $1,000 principal amount of 2022 notes (equivalent to an initial conversion price of approximately $16.23 per common share). Until the company received shareholder approval on May 16, 2019 authorizing it to elect to settle future conversions of the 2022 Notes in common shares, the company separately accounted for the conversion features as a derivative. The derivative was capitalized on the balance sheet as a long-term liability with adjustment to reflect fair value each quarter until the change to the conversion features as a result of the shareholder approval received on May 16, 2019 resulted in the termination of the derivative. The fair value of the convertible debt conversion liability at issuance was $28,859,000. The company recognized a loss of $6,193,000 for the nine months ended September 30, 2019 related to the convertible debt conversion liability. In connection with the offering of the 2022 notes, the company entered into privately negotiated convertible note hedge transactions with one financial institution (the “option counterparty”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the 2022 notes, and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the 2022 notes. The company evaluated the note hedges under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the note hedges should be accounted for as derivatives. These derivatives were capitalized on the balance sheet as long-term assets and will be adjusted to reflect fair value each quarter. The fair value of the convertible note hedge assets at issuance was $24,780,000. The company recognized a gain of $6,748,000 for the nine months ended September 30, 2019 related to the convertible note hedge asset. The company entered into separate, privately negotiated warrant transactions with the option counterparty at a higher strike price relating to the same number of the company’s common shares, subject to customary anti-dilution adjustments, pursuant to which the company sold warrants to the option counterparties. The warrants could have a dilutive effect on the company’s outstanding common shares and the company’s earnings per share to the extent that the price of the company’s common shares exceeds the strike price of those warrants. The initial strike price of the warrants is $21.4375 per share and is subject to certain adjustments under the terms of the warrant transactions. The company evaluated the warrants under the applicable accounting literature, including Derivatives and Hedging , ASC 815, and determined that the warrants meet the definition of a derivative, are indexed to the company's own shares and should be classified in shareholder's equity. The amount paid for the warrants and capitalized in shareholder's equity was $14,100,000. The net proceeds from the offering of the 2022 notes were approximately $115,289,000, after deducting fees and offering expenses of $4,711,000, which were paid in 2017. These debt issuance costs were capitalized and are being amortized as interest expense through June 2022. Debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. A portion of the net proceeds from the offering were used to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to the company from the warrant transactions), which net cost was $10,680,000. The liability components of the 2022 notes consist of the following (in thousands): September 30, 2020 December 31, 2019 Principal amount of liability component $ 81,500 $ 120,000 Unamortized discount (7,837) (16,027) Debt fees (1,011) (2,158) Net carrying amount of liability component $ 72,652 $ 101,815 The unamortized discount of $7,837,000 is to be amortized through June 2022. The effective interest rate on the liability component was 10.9%. Non-cash interest expense of $1,046,000 and $3,829,000 was recognized for the three and nine months ended September 30, 2020, respectively, compared to $1,320,000 and $4,038,000 for the three and nine months ended September 30, 2019, respectively. Actual interest expense accrued of $917,000 and $3,487,000 for the three and nine months ended September 30, 2020, respectively, compared to $1,350,000 and $4,050,000 for the three and nine months ended September 30, 2019, respectively, based on the stated coupon rate of 4.5%. The 2022 notes were not convertible as of September 30, 2020 nor was the applicable conversion threshold met. Convertible senior notes Series I due 2024 During the fourth quarter of 2019, the company entered into separate privately negotiated agreements with certain holders of its 2021 Notes to exchange $72,909,000 in aggregate principal amount of 2021 Notes for aggregate consideration of $72,909,000 in aggregate principal amount of new 5.00% Convertible Senior Exchange Notes due 2024 (the “2024 Notes”) of the company and $6,928,000 in cash. The notes bear interest at a rate of 5.00% per year payable semi-annually in arrears on May 15 and November 15 of each year, beginning May 15, 2020. The notes will mature on November 15, 2024, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Prior to May 15, 2024, the 2024 notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The 2024 notes may be settled in cash, the company’s common shares or a combination of cash and the company’s common shares, at the company’s election. Prior to the maturity of the 2024 Notes, the company may, at its election, redeem for cash all or part of the 2024 Notes if the last reported sale price of the company’s common shares equals or exceeds 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the company provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2024 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date (subject to certain limited exceptions). No sinking fund is provided for the 2024 Notes, which means the company is not required to redeem or retire the 2024 Notes periodically. Holders of the 2024 notes may convert their 2024 notes at their option at any time prior to the close of business on the business day immediately preceding May 15, 2024 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending December 31, 2019 (and only during such calendar quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2024 notes on each applicable trading day; (2) during the five A loss of $5,885,000 was recorded a part of the exchange transaction, which included the write-off of fees related to the portion of the 2021 note exchanged. Debt issuance costs of $1,394,000 were capitalized and are being amortized as interest expense through November 15. Debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. The liability components of the 2024 notes consist of the following (in thousands): September 30, 2020 December 31, 2019 Principal amount of liability component $ 72,909 $ 72,909 Unamortized discount (9,363) (10,733) Debt fees (1,103) (1,359) Net carrying amount of liability component $ 62,443 $ 60,817 The unamortized discount of $9,363,000 is to be amortized through November 15, 2024. The effective interest rate on the liability component was 8.77%. Non-cash interest expense of $468,000 and $1,370,000 was recognized for the three and nine months ended September 30, 2020, respectively. Actual interest expense accrued $912,000 and $2,735,000 for the three and nine months ended September 30, 2020, respectively, based on the stated coupon rate of 5.0%. The 2024 notes were not convertible as of September 30, 2020 nor was the applicable conversion threshold met. Convertible senior notes Series II due 2024 During the second quarter of 2020, the company entered into separate, privately negotiated agreements with certain holders of its 2021 Notes and certain holders of its 2022 Notes to exchange $35,375,000 in aggregate principal amount of 2021 Notes and $38,500,000 in aggregate principal amount of 2022 notes, for aggregate consideration of $73,875,000 in aggregate principal amount of new 5.00% Series II Convertible Senior Exchange Notes due 2024 (the “Series II Notes”) of the company and $5,593,000 in cash. The notes bear interest at a rate of 5.00% per year, payable semi-annually in arrears on May 15 and November 15 of each year, beginning November 15, 2020. The notes will mature on November 15, 2024, unless repurchased, redeemed or converted in accordance with their terms prior to such date. Prior to May 15, 2024, the Series II Notes wil |
Other Long-Term Obligations
Other Long-Term Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Obligations | Other Long-Term Obligations Other long-term obligations consist of the following (in thousands): September 30, 2020 December 31, 2019 Deferred income taxes $ 24,223 $ 23,376 Product liability 13,545 13,414 Pension 7,586 7,006 Deferred gain on sale leaseback 5,582 5,819 Deferred compensation 5,318 5,354 Supplemental Executive Retirement Plan liability 5,245 5,433 Uncertain tax obligation including interest 2,660 2,612 Other 6,589 3,935 Other Long-Term Obligations $ 70,748 $ 66,949 On April 23, 2015, the company entered into a real estate sale leaseback transaction which resulted in the company recording an initial deferred gain of $7,414,000, the majority of which is included in Other Long-Term Obligations and will be recognized over the 20-year life of the leases. The gains realized were $77,000 and $228,000 for the for the three and nine months ended September 30, 2020, respectively, compared to $74,000 and $220,000 for the three and nine months ended September 30, 2019, respectively. |
Leases and Commitments (Notes)
Leases and Commitments (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases and Commitments The company reviews new contracts in accordance with ASU 2016-02, "Leases" to determine if the contracts include a lease. To the extent a lease agreement includes an extension option that is reasonably certain to be exercised, the company has recognized those amounts as part of the right-of-use assets and lease liabilities. The company combines lease and non-lease components, such as common area maintenance, in the calculation of the lease assets and related liabilities. As most lease agreements do not provide an implicit rate, the company uses an incremental borrowing rate (IBR) based on information available at commencement date in determining the present value of lease payments and to help classify the lease as operating or financing. The company calculates its IBR based on the secured rates of the company's recent debt issuances, the credit rating of the company, changes in currencies, lease repayment timing as well as other publicly available data. The company leases a portion of its facilities, transportation equipment, data processing equipment and certain other equipment. These leases have terms from 1 to 20 years and provide for renewal options. Generally, the company is required to pay taxes and normal expenses associated with operating the facilities and equipment. As of September 30, 2020, the company is committed under non-cancelable operating leases, which have initial or remaining terms in excess of one year and expire on various dates through 2035. On April 23, 2015, the company sold and leased back, under four separate lease agreements, four properties located in Ohio and one property in Florida for net proceeds of $23,000,000, which were used to reduce debt under the U.S. and Canadian Credit Facility . The initial total annual rent for the properties was $2,275,000 and can increase annually over the 20-year term of the leases based on the applicable geographical consumer price index (CPI). Each of the four lease agreements contains three 10-year renewals with the rent for each option term based on the greater of the then-current fair market rent for each property or the then- current rate and increasing annually by the applicable CPI. Under the terms of the lease agreements, the company is responsible for all taxes, insurance and utilities. The company is permitted to sublet the properties; however, the properties are currently being utilized exclusively by the company and there is no current subletting. The company is required to adequately maintain each of the properties and any leasehold improvements will be amortized over the lesser of the lives of the improvements or the remaining lease lives, consistent with any other company leases. In connection with the transaction, the requirements for sale lease-back accounting were met. Accordingly, the company recorded the sale of the properties, removed the related property and equipment from the company's balance sheet, recognized an initial deferred gain of $7,414,000 and an immediate loss of $257,000 related to one property and recorded new lease liabilities. Specifically, the company recorded four capital leases totaling $32,339,000 and one operating lease related to leased land, which was not a material component of the transaction. The gains on the sales of the properties were required to be deferred and recognized over the life of the leases as the property sold is being leased back. The deferred gain is classified under Other Long-Term Obligations on the condensed consolidated balance sheet. The gains realized were $77,000 and $228,000 for the three and nine months ended September 30, 2020, respectively, compared to $74,000 and $220,000 for the three and nine months ended September 30, 2019, respectively. In December 2018, the company entered into a 20-year lease agreement in Germany. The lease commenced in July 2020. The lease increased the company's financing lease obligations by $36,916,000. Lease expense for the three and nine months ended September 30, 2020 and September 30, 2019, respectively, were as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Operating leases $ 1,926 $ 2,696 $ 6,210 $ 8,175 Variable and short-term leases 1,077 894 2,936 1,974 Total operating leases $ 3,003 $ 3,590 $ 9,146 $ 10,149 Finance lease interest cost $ 829 $ 346 $ 1,483 $ 977 Finance lease depreciation 980 706 2,346 1,957 Total finance leases $ 1,809 $ 1,052 $ 3,829 $ 2,934 Future minimum operating and finance lease commitments, as of September 30, 2020, are as follows (in thousands): Finance Operating Leases 2020 $ 1,873 $ 1,842 2021 7,416 6,027 2022 6,487 3,466 2023 6,421 1,407 2024 6,365 890 Thereafter 84,251 786 Total future minimum lease payments 112,813 14,418 Amounts representing interest (45,511) (1,393) Present value of minimum lease payments 67,302 13,025 Less: current maturities of lease obligations (3,352) (5,843) Long-term lease obligations $ 63,950 $ 7,182 Supplemental cash flow amounts for the nine months ended September 30, 2020 were as follows (in thousands): Cash Activity: Cash paid in measurement of amounts for lease liabilities September 30, 2020 Operating Leases $ 9,407 Financing Leases 3,429 Total $ 12,836 Non-Cash Activity: Right-of-use assets obtained in exchange for lease obligations September 30, 2020 Operating Leases $ 2,789 Financing Leases 39,942 Total $ 42,731 Weighted-average remaining lease terms and discount rates for finance and operating leases are as follows as of September 30, 2020: September 30, 2020 Weighted-average remaining lease term - finance leases 17.2 years Weighted-average remaining lease term - operating leases 3.2 years Weighted-average discount rate - finance leases 6.32% Weighted-average discount rate - operating leases 7.74% |
Revenue Revenue
Revenue Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue [Abstract] | |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Revenue The company has two revenue streams: products and services. Services include repair, refurbishment, preventive maintenance and rental of product. Services for the North America segment include maintenance and repair of product. Services for the Europe segment include repair, refurbishment and preventive maintenance services. Services in All Other, are in the Asia Pacific region, and include rental and repair of product. The following tables disaggregate the company’s revenues by major source and by reportable segment for the three and nine months ended September 30, 2020 and September 30, 2019 (in thousands): Three Months Ended September 30, 2020 Product Service Total Europe $ 113,043 $ 3,242 $ 116,285 North America 87,821 234 88,055 Other (Asia/Pacific) 6,428 1,138 7,566 Total $ 207,292 $ 4,614 $ 211,906 % Split 98% 2% 100% Nine Months Ended September 30, 2020 Product Service Total Europe $ 329,943 $ 9,204 $ 339,147 North America 260,999 596 261,595 Other (Asia/Pacific) 22,565 3,339 25,904 Total $ 613,507 $ 13,139 $ 626,646 % Split 98% 2% 100% Three Months Ended September 30, 2019 Product Service Total Europe $ 133,839 $ 3,532 $ 137,371 North America 86,761 357 87,118 Other (Asia/Pacific) 10,047 1,238 11,285 Total $ 230,647 $ 5,127 $ 235,774 % Split 98% 2% 100% Nine Months Ended September 30, 2019 Product Service Total Europe $ 386,007 $ 10,199 $ 396,206 North America 261,707 1,208 262,915 Other (Asia/Pacific) 32,242 3,688 35,930 Total $ 679,956 $ 15,095 $ 695,051 % Split 98% 2% 100% The company's revenues are principally related to the sale of products, approximately 98%, with the remaining 2% related to services including repair, refurbishment, preventive maintenance and rental of product. While the company has a significant amount of contract types, the sales split by contract type is as follows: general terms and conditions (31%), large national customers (26%), governments, principally pursuant to tender contracts (20%) and other customers including buying groups and independent customers (23%). All product and substantially all service revenues are recognized at a point in time. The remaining service revenue, recognized over time, are reflected in the Europe segment and include multiple performance obligations. For such contracts, the company allocates revenue to each performance obligation based on its relative standalone selling price. The company generally determines the standalone selling price based on the expected cost-plus margin methodology. Revenue is recognized when obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the company’s products and services. Revenue is measured as the amount of consideration expected to be received in exchange for transferring product or providing services. The amount of consideration received and revenue recognized by the company can vary as a result of variable consideration terms included in the contracts related to customer rebates, cash discounts and return policies. Customer rebates and cash discounts are estimated based on the most likely amount principle and these estimates are based on historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience. The company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. The company generally does not expect that there will be significant changes to its estimates of variable consideration (see “Receivables” and "Accrued Expenses" in the Notes to the Condensed Consolidated Financial Statements include elsewhere in this report for more detail). Depending on the terms of the contract, the company may defer the recognition of a portion of the revenue at the end of a reporting period to align with transfer of control of the company’s products to the customer. In addition, to the extent performance obligations are satisfied over time, the company defers revenue recognition until the performance obligations |
Equity Compensation
Equity Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Shareholders' Equity Transactions | Equity Compensation The company’s Common Shares have a $0.25 stated value. The Common Shares and the Class B Common Shares generally have identical rights, terms and conditions and vote together as a single class on most issues, except that the Class B Common Shares have ten votes per share, carry a 10% lower cash dividend rate and, in general, can only be transferred to family members or for estate planning purposes. Holders of Class B Common Shares are entitled to convert their shares into Common Shares at any time on a share-for-share basis. When Class B Common Shares are transferred out of a familial relationship, they automatically convert to Common Shares. The Board of Directors suspended further dividends on the Common Shares and the Class B Common Shares. As of September 30, 2020, 6,357 Class B Common Shares remained outstanding. Prior conversions of Class B Common Shares have substantially diminished the significance of the company’s dual class voting structure. As of September 30, 2020, the holders of the Common Shares represented approximately 99.9% of the company’s total outstanding voting power. Equity Compensation Plan On May 17, 2018, the shareholders of the company approved the Invacare Corporation 2018 Equity Compensation Plan (the “2018 Plan”), which was adopted on March 27, 2018 by the company's Board of Directors (the “Board”). The company’s Board adopted the 2018 Plan in order to authorize additional Common Shares for grant as equity compensation, and to reflect changes to Section 162(m) of the Internal Revenue Code (the “Code”) resulting from the U.S. Tax Cuts and Jobs Act of 2017. Following shareholder approval of the 2018 Plan, all of the Common Shares then-remaining available for issuance under the Invacare Corporation 2013 Equity Compensation Plan (the “2013 Plan”) and all of the Common Shares that were forfeited or remained unpurchased or undistributed upon termination or expiration of awards under the 2013 Plan and under the Invacare Corporation 2003 Performance Plan (the “2003 Plan”), become available for issuance under the 2018 Plan. Awards granted previously under the 2013 Plan and 2003 Plan will remain in effect under their original terms. The 2018 Plan uses a fungible share-counting method, under which each Common Share underlying an award of share options or share appreciation rights ("SAR") will count against the number of total shares available under the 2018 Plan as one share; and each Common Share underlying any award other than a share option or a SAR will count against the number of total shares available under the 2018 Plan as two shares. Shares underlying awards made under the 2003 Plan or 2013 Plan that are forfeited or remain unpurchased or undistributed upon termination or expiration of the awards will become available under the 2018 Plan for use in future awards. Any Common Shares that are added back to the 2018 Plan as the result of forfeiture, termination or expiration of an award granted under the 2018 Plan or the 2013 Plan will be added back in the same manner such shares were originally counted against the total number of shares available under the 2018 Plan or 2013 Plan, as applicable. Each Common Share that is added back to the 2018 Plan due to a forfeiture, termination or expiration of an award granted under the 2003 Plan will be added back as one Common Share. The Compensation and Management Development Committee of the Board (the “Compensation Committee”), in its discretion, may grant an award under the 2018 Plan to any director or employee of the company or an affiliate. As of September 30, 2020, 3,513,468 Common Shares were available for future issuance under the 2018 Plan in connection with the following types of awards with respect to the company's Common Shares: incentive share options, nonqualified share options, SARs, restricted shares, restricted share units, unrestricted shares and performance shares. The Compensation Committee also may grant performance units that are payable in cash. The Compensation Committee has the authority to determine which participants will receive awards, the amount of the awards and the other terms and conditions of the awards. The Common Shares authorized for issuance under the 2018 Plan includes an additional 1,400,000 Common Shares that were approved by shareholders at the company’s 2020 annual meeting on May 21, 2020. In the second quarter of 2020 the company transferred a total of 1,004,079 shares into the 2018 Plan from the 2003 and 2013 Plans. At September 30, 2020, an aggregate of 328,274 Common Shares underlie awards which were forfeited or expired unexercised under the 2003 and 2013 Plans and thus are available to be transferred into the 2018 Plan. The 2018 Plan provides that shares granted come from the company's authorized but unissued Common Shares or treasury shares. In addition, the company's equity compensation plans allow employee participants to exchange shares for minimum withholding taxes, which results in the company acquiring treasury shares. The amounts of equity-based compensation expense recognized as part of SG&A expenses in All Other in business segments were as follows (in thousands): For the Nine Months Ended September 30, 2020 2019 Restricted share / units $ 4,471 $ 3,891 Performance shares / units 2,494 1,648 Non-qualified and performance share options — 334 Total share-based compensation expense $ 6,965 $ 5,873 As of September 30, 2020, unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2018 Plan and previous plans, which is related to non-vested shares, was as follows (in thousands): September 30, 2020 Restricted share and restricted share units $ 8,443 Performance shares and performance share units 11,144 Total unrecognized share-based compensation expense $ 19,587 Total unrecognized compensation cost will be adjusted for future changes in actual and estimated forfeitures and for updated vesting assumptions for the performance share awards (see "Share Options" and "Performance Shares and Performance Share Units" below). No tax benefits for share-based compensation were realized during the three and nine months ended September 30, 2020 and 2019, respectively, due to a valuation allowance against deferred tax assets. In accordance with ASC 718, any tax benefits resulting from tax deductions in excess of the compensation expense recognized is classified as a component of financing cash flows. Share Options Generally, non-qualified share option awards have a term of ten years and were granted with an exercise price per share equal to the fair market value of one of the company’s Common Shares on the date of grant. Share option awards granted in 2017 were performance-based awards and became exercisable based upon achievement of performance goals established by the Compensation Committee and achieved over the three The following table summarizes information about share option activity for the nine months ended September 30, 2020: Weighted Average Options outstanding at January 1, 2020 1,441,202 $ 18.26 Canceled (354,006) 24.88 Options outstanding at September 30, 2020 1,087,196 $ 16.12 Options exercise price range at September 30, 2020 $ 12.15 to $ 33.36 Options exercisable at September 30, 2020 1,087,196 Shares available for grant at September 30, 2020* 3,513,468 ________ * Shares available for grant under the 2018 Plan as of September 30, 2020 reduced by net restricted share and restricted share unit award activity of 696,058 shares and performance share and performance share unit award activity of 1,859,054 shares. The following table summarizes information about stock options outstanding at September 30, 2020: Options Outstanding Options Exercisable Exercise Prices Number Weighted Average Weighted Average Number Weighted Average $12.15 – $20.00 777,159 5.1 $ 12.74 777,159 $ 12.73 $20.01 – $25.00 300,149 0.9 24.45 300,149 24.45 $25.01 – $30.00 5,392 0.2 27.82 5,392 27.82 $30.01 – $33.36 4,496 0.6 33.36 4,496 33.36 Total 1,087,196 3.9 $ 16.12 1,087,196 $ 16.12 The 2018 Plan provides for a one-year minimum vesting period for share options and, generally, options must be exercised within ten years from the date granted. No share options were issued in 2020 or 2019. The performance-based options issued in 2017 vested after the conclusion of the three-year performance period ending December 31, 2019. Restricted Share and Restricted Share Units The following table summarizes information about restricted shares and restricted share units (primarily for non-U.S. recipients): Weighted Average Fair Value Shares / Units unvested at 965,085 $ 11.32 Granted 764,012 7.11 Vested (452,922) 11.47 Canceled (94,993) 10.19 Shares / Units unvested at 1,181,182 $ 8.63 The 2018 Plan provides for a one-year minimum vesting period for restricted share awards, the outstanding restricted share awards generally vest ratably over the three years after the award date. Unearned restricted share compensation, determined as the market value of the shares at the date of grant, is being amortized on a straight-line basis over the vesting period. Performance Shares and Performance Share Units The following table summarizes information about performance shares and performance share units (for non-U.S. recipients): Weighted Average Fair Value Shares / Units unvested at January 1, 2020 753,272 $ 11.82 Granted 523,329 7.08 Canceled (65,976) 9.48 Shares / Units unvested at 1,210,625 $ 9.90 During the nine months ended September 30, 2020, performance shares and performance share units (for non-U.S. recipients) were granted as performance awards with a three The fair value of the performance awards is based on the share price on the date of grant discounted for the estimated value of dividends foregone as the awards are not eligible for dividends except to the extent vested. The company assesses the probability that the performance targets will be met with expense recognized whenever it is probable that at least the minimum performance criteria will be achieved. Depending upon the company's assessment of the probability of achievement of the goals, the company may not recognize any expense associated with performance awards in a given |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) by Component | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) by Component | Accumulated Other Comprehensive Income (Loss) by Component Changes in accumulated other comprehensive income ("OCI") (in thousands): Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total June 30, 2020 $ 16,455 $ (9,133) $ (3,468) $ 794 $ 4,648 OCI before reclassifications 35,231 713 281 (2,501) 33,724 Amount reclassified from accumulated OCI — — (474) 739 265 Net current-period OCI 35,231 713 (193) (1,762) 33,989 September 30, 2020 $ 51,686 $ (8,420) $ (3,661) $ (968) $ 38,637 Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total December 31, 2019 $ 8,898 $ (2,491) $ (3,299) $ 20 $ 3,128 OCI before reclassifications 42,788 (5,929) 122 (1,340) 35,641 Amount reclassified from accumulated OCI — — (484) 352 (132) Net current-period OCI 42,788 (5,929) (362) (988) 35,509 September 30, 2020 $ 51,686 $ (8,420) $ (3,661) $ (968) $ 38,637 Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total June 30, 2019 $ 13,122 $ (2,200) $ (2,778) $ 1,627 $ 9,771 OCI before reclassifications (5,729) (3,328) (504) 557 (9,004) Amount reclassified from accumulated OCI — — 303 (860) (557) Net current-period OCI (5,729) (3,328) (201) (303) (9,561) September 30, 2019 $ 7,393 $ (5,528) $ (2,979) $ 1,324 $ 210 Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total December 31, 2018 $ 12,244 $ 2,662 $ (2,703) $ 590 $ 12,793 OCI before reclassifications (4,851) (8,190) (922) 2,179 (11,784) Amount reclassified from accumulated OCI — — 646 (1,445) (799) Net current-period OCI (4,851) (8,190) (276) 734 (12,583) September 30, 2019 $ 7,393 $ (5,528) $ (2,979) $ 1,324 $ 210 Reclassifications out of accumulated OCI were as follows (in thousands): Amount reclassified from OCI Affected line item in the Statement of Comprehensive (Income) Loss For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Defined Benefit Plans Service and interest costs $ (474) $ 303 $ (484) $ 646 Selling, general and administrative expenses Tax — — — — Income tax provision Total after tax $ (474) $ 303 $ (484) $ 646 Derivatives Foreign currency forward contracts hedging sales $ (481) $ (197) $ (692) $ (189) Net sales Foreign currency forward contracts hedging purchases 1,259 (747) 1,029 (1,375) Cost of products sold Total loss (income) before tax 778 (944) 337 (1,564) Tax (39) 84 15 119 Income tax provision (benefit) Total after tax $ 739 $ (860) $ 352 $ (1,445) |
Charges Related To Restructurin
Charges Related To Restructuring Activities | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Charges Related To Restructuring Activities | Charges Related to Restructuring Activities The company's restructuring charges were originally necessitated primarily by continued declines in Medicare and Medicaid reimbursement by the U.S. government, as well as similar healthcare reimbursement pressures abroad, which negatively affect the company's customers (e.g. home health care providers) and continued pricing pressures faced by the company due to the outsourcing by competitors to lower cost locations. Restructuring decisions were also the result of reduced profitability in North America and Asia Pacific. In addition, as a result of the company's transformation strategy, additional restructuring actions were implemented in 2017 and have continued into 2020. For the nine months ended September 30, 2020, charges totaled $4,657,000 which were related to North America of $865,000, Europe of $3,674,000 and All Other of $118,000. In North America and All Other, costs were incurred related to severance. The European charges were for severance costs of $3,328,000 and contract terminations of $346,000 primarily related to the closure of a German manufacturing facility. Payments for the nine months ended September 30, 2020 were $5,692,000 and the cash payments were funded with the company's cash on hand. The 2020 charges are expected to be paid out within twelve months. For the nine months ended September 30, 2019, charges totaled $3,641,000 which were related to North America of $1,539,000, Europe of $1,903,000 and All Other of $199,000. In North America, costs were incurred related to severance of $1,495,000 and contract terminations of $44,000. The European and All Other charges were for severance costs. Payments for the nine months ended September 30, 2019 were $4,152,000 and the cash payments were funded with company's cash on hand. Most of the 2019 charges have been paid out. There have been no material changes in accrued balances related to the charges, either as a result of revisions to the plans or changes in estimates. In addition, the savings anticipated as a result of the company's restructuring plans have been or are expected to be achieved, primarily resulting in reduced salary and benefit costs principally impacting Selling, General and Administrative expenses, and to a lesser extent, Costs of Products Sold. To date, the company's liquidity has not been materially impacted by the restructuring plans. Please refer to Charges Related to Restructuring Activities of company's Annual Report on Form 10-K for the period ending December 31, 2019 for disclosure of restructuring activity prior to 2020. A progression by reporting segment of the accruals recorded as a result of the restructuring for the nine months ended September 30, 2020 is as follows (in thousands): Severance Contract Terminations Total December 31, 2019 Balances North America $ 211 $ — $ 211 Europe 6,406 4 6,410 All Other 406 — 406 Total 7,023 4 7,027 Charges North America 691 — 691 Europe 592 73 665 All Other 36 — 36 Total 1,319 73 1,392 Payments North America (562) — (562) Europe (959) (73) (1,032) All Other (276) — (276) Total (1,797) (73) (1,870) March 31, 2020 Balances North America 340 — 340 Europe 6,039 4 6,043 All Other 166 — 166 Total $ 6,545 $ 4 $ 6,549 Charges North America $ 28 $ — $ 28 Europe 1,302 273 1,575 All Other 82 — 82 Total 1,412 273 1,685 Payments North America (265) — (265) Europe (1,596) (273) (1,869) All Other (82) — (82) Total (1,943) (273) (2,216) June 30, 2020 Balances North America 103 — 103 Europe 5,745 4 5,749 All Other 166 — 166 Total $ 6,014 $ 4 $ 6,018 Charges North America 146 — 146 Europe 1,434 — 1,434 All Other — — — Total 1,580 — 1,580 Payments North America (151) — (151) Europe (1,455) — (1,455) All Other — — — Total (1,606) — (1,606) Severance Contract Terminations Total September 30, 2020 Balances North America 98 — 98 Europe 5,724 4 5,728 All Other 166 — 166 Total $ 5,988 $ 4 $ 5,992 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The company had an effective tax rate of 39.2% and 26.8% on losses before tax for the three and nine months ended September 30, 2020, respectively, compared to an expected benefit of 21.0% on the pre-tax loss for each period. The company had an effective tax rate of 69.6% and 26.8% on losses before tax for the three and nine months ended and September 30, 2019, respectively, compared to an expected benefit for the three and nine months ended September 30, 2019 of 21.0% on the pre-tax loss for each period. The company's effective tax rate for the three and nine months ended September 30, 2020 and September 30, 2019 were unfavorable as compared to the U.S. federal statutory rate expected benefit, principally due to the negative impact of the company not being able to record tax benefits related to the significant losses in countries which had tax valuation allowances. The effective tax rate was increased for the three and nine months ended September 30, 2020 and September 30, 2019 by certain taxes outside the United States, excluding countries with tax valuation allowances, that were at an effective rate higher than the U.S. statutory rate, except for the gain on the disposition of Dynamic Controls which was not taxable locally . In addition, the company had accrued withholding taxes on earnings of its Chinese subsidiary based on the expectation of not permanently reinvesting those earnings. The sale of this entity, without such distribution resulted in the reversal of this accrual in the amount of $988,000 for the nine months ended September 30, 2020. |
Net Earnings (Loss) Per Common
Net Earnings (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Earnings (Loss) Per Common Share | Loss Per Common Share The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated. (In thousands except per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Basic Weighted average common shares outstanding 34,419 33,660 34,213 33,571 Net loss $ (7,276) $ (8,041) $ (23,163) $ (34,644) Net loss per common share $ (0.21) $ (0.24) $ (0.68) $ (1.03) Diluted Weighted average common shares outstanding 34,419 33,660 34,213 33,571 Share options and awards 111 8 100 10 Weighted average common shares assuming dilution 34,530 33,668 34,313 33,581 Net loss $ (7,276) $ (8,041) $ (23,163) $ (34,644) Net loss per common share * $ (0.21) $ (0.24) $ (0.68) $ (1.03) ________ * Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss. At September 30, 2020, 300,149 shares associated with shares options were excluded from the average common shares assuming dilution for the three and nine months ended September 30, 2020 as they were anti-dilutive. At September 30, 2020, the majority of the anti-dilutive shares were granted at an exercise price of $24.45, which was higher than the average fair market value price of $6.93 and $7.12 for the three and nine months ended September 30, 2020. At September 30, 2019, 326,799 shares associated with share options were excluded from the average common shares assuming dilution for the three and nine months ended September 30, 2019 as they were anti-dilutive. At September 30, 2019, the majority of the anti-dilutive shares were granted at an exercise price of $25.24, which was higher than the average fair market value price of $5.61 and $6.43 for the three and nine months ended September 30, 2019. For the three and nine months ended September 30, 2020 and September 30, 2019, respectively, no shares were included in the common shares assuming dilution related to the company's issued warrants as the average market price of the company shares for these periods did not exceed the strike price of the warrants. |
Concentration Of Credit Risk
Concentration Of Credit Risk | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentration Of Credit Risk | Concentration of Credit Risk The company manufactures and distributes durable medical equipment to the home health care, retail and extended care markets. The company performs credit evaluations of its customers’ financial condition. The company utilizes De Lage Landen, Inc. (“DLL”), a third-party financing company, to provide lease financing to Invacare's U.S. customers. The DLL agreement provides for direct leasing between DLL and the Invacare customer. The company retains a recourse obligation of $2,682,000 at September 30, 2020 to DLL for events of default under the contracts, which total $8,262,000 at September 30, 2020. Guarantees, ASC 460, requires the company to record a guarantee liability as it relates to the limited recourse obligation. The company's recourse is reevaluated by DLL biannually, considers activity between the biannual dates and excludes any receivables purchased by the company from DLL. The company monitors the collections status of these contracts and has provided amounts for estimated losses in its allowances for doubtful accounts in accordance with Receivables, ASC 310-10-05-4 . Credit losses are provided for in the financial statements. Substantially all the company’s receivables are due from health care, medical equipment providers and long-term care facilities located throughout the United States, Australia, Canada, New Zealand and Europe. A significant portion of products sold to dealers, both foreign and domestic, is ultimately funded through government reimbursement programs such as Medicare and Medicaid. The company has also seen a significant shift in reimbursement to customers from managed care entities. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability. In addition, reimbursement guidelines in the home health care industry have a substantial impact on the nature and type of equipment an end user can obtain as well as the timing of reimbursement and, thus, affect the product mix, pricing and payment patterns of the company’s customers. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives ASC 815 requires companies to recognize all derivative instruments as either assets or liabilities at fair value. The accounting for changes in fair value of a derivative is dependent upon whether or not the derivative has been designated and qualifies for hedge accounting treatment and the type of hedging relationship. For derivatives designated and qualifying as hedging instruments, the company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Cash Flow Hedging Strategy The company uses derivative instruments in an attempt to manage its exposure to transactional foreign currency exchange risk. Foreign forward exchange contracts are used to manage the price risk associated with forecasted sales denominated in foreign currencies and the price risk associated with forecasted purchases of inventory over the next twelve months. The company recognizes its derivative instruments as assets or liabilities measured at fair value. A majority of the company’s derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the fair value of the hedged item, if any, is recognized in current earnings during the period of change. To protect against increases/decreases in forecasted foreign currency cash flows resulting from inventory purchases/sales over the next year, the company utilizes foreign currency forward contracts to hedge portions of its forecasted purchases/sales denominated in foreign currencies. The gains and losses are included in cost of products sold and selling, general and administrative expenses on the condensed consolidated statement of comprehensive income (loss). If it is later determined that a hedged forecasted transaction is unlikely to occur, any prospective gains or losses on the forward contracts would be recognized in earnings. The company does not expect any material amount of hedge ineffectiveness related to forward contract cash flow hedges during the next twelve months. The company has historically not recognized any material amount of ineffectiveness related to forward contract cash flow hedges because the company generally limits its hedges to between 50% and 90% of total forecasted transactions for a given entity’s exposure to currency rate changes and the transactions hedged are recurring in nature. Furthermore, most of the hedged transactions are related to intercompany sales and purchases for which settlement occurs on a specific day each month. Forward contracts with a total notional amount in USD of $155,783,000 and $110,373,000 matured for the nine months ended September 30, 2020 and September 30, 2019, respectively. Outstanding foreign currency forward exchange contracts qualifying and designated for hedge accounting treatment were as follows (in thousands USD): September 30, 2020 December 31, 2019 Notional Unrealized Notional Unrealized USD / AUD $ 960 $ (41) $ 3,840 $ (106) USD / CAD 1,138 (2) 3,888 32 USD / EUR 17,468 (1,061) 110,905 122 USD / GBP 387 (11) 3,972 (8) USD / NZD 290 (13) 2,760 (166) USD / SEK 876 (88) 5,062 (38) USD / MXN 3,901 (58) 6,763 346 EUR / CAD 915 (42) 4,151 24 EUR / CHF 2,703 (45) 9,821 10 EUR / GBP 6,325 178 29,824 (216) EUR / SEK 2,330 (72) 9,493 (46) EUR / NOK 1,490 14 5,797 15 DKK / SEK 1,402 40 5,936 24 NOK / SEK 1,490 53 5,151 18 $ 41,675 $ (1,148) $ 207,363 $ 11 Derivatives Not Qualifying or Designated for Hedge Accounting Treatment The company utilizes foreign currency forward contracts that are not designated as hedges in accordance with ASC 815. These contracts are entered into to eliminate the risk associated with the settlement of short-term intercompany trading receivables and payables between Invacare Corporation and its foreign subsidiaries. The currency forward contracts are entered into at the same time as the intercompany receivables or payables are created so that upon settlement, the gain/loss on the settlement is offset by the gain/loss on the foreign currency forward contract. No material net gain or loss was realized by the company in 2020 or 2019 related to these contracts and the associated short-term intercompany trading receivables and payables. Foreign currency forward exchange contracts not qualifying or designated for hedge accounting treatment, as well as ineffective hedges, entered into in 2020 and 2019, respectively, and outstanding were as follows (in thousands USD): September 30, 2020 December 31, 2019 Notional Gain Notional Gain AUD / USD $ 6,149 $ 96 $ 10,000 $ (94) CAD / USD 8,321 88 8,000 (50) EUR / USD 11,735 (745) 10,000 104 DKK / USD 15,081 (137) — — GBP / USD 650 (18) 7,000 40 NOK / USD 8,986 (427) — — NZD / USD 309 (9) 4,500 (101) EUR / CAD 130 (6) — — EUR / GBP 2,086 59 — — AUD / NZD 6,438 21 7,900 23 EUR / NOK 80 1 — — $ 59,965 $ (1,077) $ 47,400 $ (78) The fair values of the company’s derivative instruments were as follows (in thousands): September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments under ASC 815 Foreign currency forward exchange contracts $ 334 $ 1,482 $ 668 $ 657 Derivatives not designated as hedging instruments under ASC 815 Foreign currency forward exchange contracts 265 1,342 170 248 Total derivatives $ 599 $ 2,824 $ 838 $ 905 The fair values of the company’s foreign currency forward exchange contract assets and liabilities are included in Other Current Assets and Accrued Expenses, respectively in the condensed consolidated balance sheets. The effect of derivative instruments on Accumulated Other Comprehensive Income (OCI) and the Statement of Comprehensive Income (Loss) and was as follows (in thousands): Derivatives in ASC 815 cash flow hedge Amount of Gain Amount of Gain (Loss) Amount of Gain (Loss) Three months ended September 30, 2020 Foreign currency forward exchange contracts $ (2,501) $ (739) $ (662) Nine months ended September 30, 2020 Foreign currency forward exchange contracts $ (1,340) $ (352) $ (718) Three months ended September 30, 2019 Foreign currency forward exchange contracts $ 557 $ 860 $ (2) Nine months ended September 30, 2019 Foreign currency forward exchange contracts $ 2,179 $ 1,445 $ 50 Derivatives not designated as hedging Amount of Gain (Loss) Three months ended September 30, 2020 Foreign currency forward exchange contracts $ (1,320) Nine months ended September 30, 2020 Foreign currency forward exchange contracts $ (1,077) Three months ended September 30, 2019 Foreign currency forward exchange contracts $ 317 Nine months ended September 30, 2019 Foreign currency forward exchange contracts $ 103 The gains or losses recognized as the result of the settlement of cash flow hedge foreign currency forward contracts are recognized in net sales for hedges of inventory sales and in cost of product sold for hedges of inventory purchases. For the three and nine months ended September 30, 2020, net sales were increased by $481,000 and $692,000 while cost of product sold was increased by $1,259,000 and $1,029,000 for net pre-tax realized loss of $778,000 and $337,000, respectively. For the three and nine months ended September 30, 2019, net sales were increased by $197,000 and $189,000 while cost of product sold was decreased by $747,000 and $1,375,000 for net realized pre-tax gains of $944,000 and $1,564,000, respectively. Losses of $1,320,000 and $1,077,000 were recognized in selling, general and administrative (SG&A) expenses for the three and nine months ended September 30, 2020 compared to gains of $317,000 and $103,000 for the three and nine months ended September 30, 2019 related to forward contracts not designated as hedging instruments. The forward contracts were entered into to offset gains/losses that were also recorded in SG&A expenses on intercompany trade receivables or payables. The gains/losses on the non-designated hedging instruments were substantially offset by gains/losses on intercompany trade payables. The company's derivative agreements provide the counterparties with a right of set off in the event of a default. The right of set off would enable the counterparty to offset any net payment due by the counterparty to the company under the applicable agreement by any amount due by the company to the counterparty under any other agreement. For example, the terms of the agreement would permit a counterparty to a derivative contract that is also a lender under the company's Credit Agreement to reduce any derivative settlement amounts owed to the company under the derivative contract by any amounts owed to the counterparty by the company under the Credit Agreement. In addition, the agreements contain cross-default provisions that could trigger a default by the company under the agreement in the event of a default by the company under another agreement with the same counterparty. The company does not present any derivatives on a net basis in its financial statements, other than the conversion and bond hedge derivatives which are presented net on the condensed consolidated statement of comprehensive income (loss), and all derivative balances presented are subject to provisions that are similar to master netting agreements. During the first quarter of 2016, the company entered into privately negotiated convertible 2021 note hedges and 2021 warrants in connection with its sale of $150,000,000 in aggregate principal amount of the company’s 5.00% Convertible Senior Notes due 2021. The 2021 warrants, which increased paid in capital by $12,376,000, are clearly and closely related to the convertible 2021 notes and thus classified as equity. The 2021 note hedge asset and 2021 convertible debt conversion liability were recorded, based on initial fair values, as an asset of $27,975,000 and a liability of $34,480,000, respectively, with the offset to the income statement. During the second quarter of 2017, the company entered into privately negotiated convertible 2022 note hedges and warrants in connection with its sale of $120,000,000 in aggregate principal amount of the company’s 4.50% Convertible Senior Notes due 2022. The 2022 warrants, which increased paid in capital by $14,100,000, are clearly and closely related to the convertible 2022 notes and thus classified as equity. The 2022 note hedge assets and 2022 convertible debt conversion liability were recorded, based on initial fair values, as an asset of $24,780,000 and a liability of $28,859,000, respectively, with the offset to the income statement. See "Long-Term Debt" in the Notes to the Condensed Consolidated Financial Statements included elsewhere in this report for more detail. The fair values of the outstanding convertible note derivatives as of September 30, 2020 and their effect on the Statement of Comprehensive Income (Loss) were as follows (in thousands): Gain (Loss) Gain (Loss) Fair Value Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Convertible 2021 debt conversion long-term liability $ — $ — $ — $ — $ (2,210) Convertible 2022 debt conversion long-term liability — — — — (6,193) Convertible 2021 note hedge long-term asset — — — — 2,852 Convertible 2022 note hedge long-term asset — — — — 6,748 Net fair value and net gain on convertible debt derivatives $ — $ — $ — $ — $ 1,197 The 2021 and 2022 convertible debt conversion liability amounts and the 2021 and 2022 note hedge asset amounts are included in Other Long-Term Obligations and Other Long-Term Assets, respectively, in the company's condensed consolidated balance sheets. The 2019 year-to-date changes in the fair values of the convertible debt conversion liabilities and note hedge derivatives were significantly impacted by the change in the company's share price. On May 16, 2019, the company received shareholder approval authorizing it to elect to settle future conversions of convertible notes in common shares. As a result of the shareholder approval, the note hedge assets and conversion liabilities may no longer be bifurcated and accounted for as separate derivatives and thus were eliminated together with a corresponding offset to additional paid-in-capital. |
Fair Values
Fair Values | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Values Pursuant to ASC 820, the inputs used to derive the fair value of assets and liabilities are analyzed and assigned a level I, II or III priority, with level I being the highest and level III being the lowest in the hierarchy. Level I inputs are quoted prices in active markets for identical assets or liabilities. Level II inputs are quoted prices for similar assets or liabilities in active markets: quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level III inputs are based on valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands): Basis for Fair Value Measurements at Reporting Date Quoted Prices in Active Significant Other Significant Other Level I Level II Level III September 30, 2020 Forward exchange contracts—net — $ (2,225) — December 31, 2019 Forward exchange contracts—net — $ (67) — The carrying values and fair values of the company’s financial instruments are as follows (in thousands): September 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 86,825 $ 86,825 $ 80,063 $ 80,063 Other investments 85 85 85 85 Installment receivables, net of reserves 325 325 913 913 Total debt (including current maturities of long-term debt) * (242,264) (218,231) (219,522) (207,193) Forward contracts in Other Current Assets 599 599 838 838 Forward contracts in Accrued Expenses (2,824) (2,824) (905) (905) ________ * The company's total debt is shown net of discount and fees associated with the Convertible Senior Notes due in 2021, 2022 and 2024 on the company's condensed consolidated balance sheet. Accordingly, the fair values of the Convertible Senior Notes due in 2021, 2022 and 2024 are included in the long-term debt presented in this table are also shown net of the discount and fees. Total debt amounts exclude operating and financing leases obligations. The company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions: Cash, cash equivalents: The carrying value reported in the balance sheet for cash, cash equivalents equals its fair value. Other investments: The company has made an investment in a limited partnership, which is accounted for using the cost method, adjusted for any estimated declines in value. The investment was acquired in private placement and there is no quoted market price or stated rate of return. The company does not have the ability to easily sell the investment. The company completes an evaluation of the residual value related to such investments in the fourth quarter each year. Installment receivables: The carrying value reported in the balance sheet for installment receivables approximates its fair value. The interest rates associated with these receivables have not varied significantly since inception. Management believes that after consideration of the credit risk, the net book value of the installment receivables approximates market value. Total debt: Fair value for the company’s convertible debt is based on quoted market-based estimates as of the end of the period, while the revolving credit facility fair value is based upon an estimate of the market for similar borrowing arrangements. The fair values are deemed to be categorized as Level 2 in the fair value hierarchy. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The company operates in two primary business segments: North America and Europe with each selling the company's primary product categories, which include: lifestyle, mobility and seating and respiratory therapy products. Sales in Asia Pacific are reported in All Other and include products similar to those sold in North America and Europe. The accounting policies of each segment are the same as those described in the summary of significant accounting policies for the company's consolidated financial statements. Intersegment sales and transfers are based on the costs to manufacture plus a reasonable profit element. Segment performance is measured and resources are allocated based on a number of factors, with the primary profit or loss measure being segment operating profit (loss). Segment operating profit (loss) represents net sales less cost of products sold less selling general and administrative expenses. Segment operating profit (loss) excludes unallocated corporate general and administrative expenses not allocated to the segments and intersegment sales and profit eliminations, which are included in All Other. In addition, segment operating profit (loss) further excludes charges related to restructuring activities, asset impairments and gain on sale of business (as applicable). This performance measure, segment operating income (loss), is used by the Chief Operating Decision Maker (CODM) for purposes of making decisions about allocating resources to a segment and assessing its performance. In addition, this metric is reviewed by the company's Board of Directors regarding segment performance and is a key metric in the performance management assessment of the company's employees. The information by segment is as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Revenues from external customers Europe $ 116,285 $ 137,371 $ 339,147 $ 396,206 North America 88,055 87,118 261,595 262,915 All Other (Asia Pacific) 7,566 11,285 25,904 35,930 Consolidated $ 211,906 $ 235,774 $ 626,646 $ 695,051 Intersegment revenues Europe $ 6,027 $ 3,124 $ 14,438 $ 10,396 North America 23,625 21,130 66,356 61,109 All Other (Asia Pacific) 1,116 3,904 3,645 9,776 Consolidated $ 30,768 $ 28,158 $ 84,439 $ 81,281 Restructuring charges before income taxes Europe $ 1,434 $ 1,263 $ 3,674 $ 1,903 North America 146 331 865 1,539 All Other — 34 118 199 Consolidated $ 1,580 $ 1,628 $ 4,657 $ 3,641 Operating income (loss) Europe $ 7,600 $ 11,365 $ 16,624 $ 22,617 North America 2,992 (1,694) 5,759 (7,316) All Other (6,082) (5,625) (17,377) (18,230) Charge expense related to restructuring activities (1,580) (1,628) (4,657) (3,641) Gain on sale of business — — 9,790 — Consolidated operating income (loss) 2,930 2,418 10,139 (6,570) Net gain on convertible debt derivatives — — — 1,197 Loss on debt extinguishment including debt finance charges and associated fees (761) (280) (7,360) (280) Net Interest expense (7,395) (6,879) (21,042) (21,666) Loss before income taxes $ (5,226) $ (4,741) $ (18,263) $ (27,319) Net sales by product, are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Europe Lifestyle $ 50,307 $ 59,403 $ 160,628 $ 182,103 Mobility and Seating 54,851 68,286 147,275 184,819 Respiratory Therapy 6,070 4,919 16,680 14,875 Other(1) 5,057 4,763 14,564 14,409 $ 116,285 $ 137,371 $ 339,147 $ 396,206 North America Lifestyle $ 41,845 $ 43,401 $ 124,888 $ 131,259 Mobility and Seating 26,572 31,252 82,485 89,638 Respiratory Therapy 19,405 12,108 53,626 40,811 Other(1) 233 357 596 1,207 $ 88,055 $ 87,118 $ 261,595 $ 262,915 All Other (Asia Pacific) Mobility and Seating $ 2,670 $ 6,645 $ 10,757 $ 21,986 Lifestyle 3,375 3,001 10,176 8,261 Respiratory Therapy 195 175 1,043 1,063 Other(1) 1,326 1,464 3,928 4,620 $ 7,566 $ 11,285 $ 25,904 $ 35,930 Total Consolidated $ 211,906 $ 235,774 $ 626,646 $ 695,051 ________________________ (1) Includes various services, including repair services, equipment rentals and external contracting. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies General In the ordinary course of its business, the company is a defendant in a number of lawsuits, primarily product liability actions in which various plaintiffs seek damages for injuries allegedly caused by defective products. All the product liability lawsuits that the company faces in the United States have been referred to the company's captive insurance company and/or excess insurance carriers while all non-U.S. lawsuits have been referred to the company's commercial insurance carriers. All such lawsuits are generally contested vigorously. The coverage territory of the company's insurance is worldwide with the exception of those countries with respect to which, at the time the product is sold for use or at the time a claim is made, the U.S. government has suspended or prohibited diplomatic or trade relations. The amount recorded for identified contingent liabilities is based on estimates. Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. Actual costs to be incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures. As a medical device manufacturer, the company is subject to extensive government regulation, including numerous laws directed at preventing fraud and abuse and laws regulating reimbursement under various government programs. The marketing, invoicing, documenting, developing, testing, manufacturing, labeling, promoting, distributing and other practices of health care suppliers and medical device manufacturers are all subject to government scrutiny. Most of the company's facilities are subject to inspection at any time by the FDA or similar medical device regulatory agencies in other jurisdictions. Violations of law or regulations can result in administrative, civil and criminal penalties and sanctions, which could have a material adverse effect on the company's business. Medical Device Regulatory Matters The FDA in the United States and comparable medical device regulatory authorities in other jurisdictions regulate virtually all aspects of the marketing, invoicing, documenting, development, testing, manufacturing, labeling, promotion, distribution and other practices regarding medical devices. The company and its products are subject to the laws and regulations of the FDA and other regulatory bodies in the various jurisdictions where the company's products are manufactured or sold. The company's failure to comply with the regulatory requirements of the FDA and other applicable medical device regulatory requirements can subject the company to administrative or judicially imposed sanctions or enforcement actions. These sanctions include injunctions, consent decrees, warning letters, civil penalties, criminal penalties, product seizure or detention, product recalls and total or partial suspension of production. In December 2012, the company became subject to a consent decree of injunction filed by FDA with respect to the company's Corporate facility and its Taylor Street manufacturing facility in Elyria, Ohio. The consent decree initially limited the company's (i) manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility, except in verified cases of medical necessity, (ii) design activities related to wheelchairs and power beds that take place at the impacted Elyria facilities and (iii) replacement, service and repair of products already in use from the Taylor Street manufacturing facility. Under the terms of the consent decree, in order to resume full operations, the company had to successfully complete independent, third-party expert certification audits at the impacted Elyria facilities, comprising three distinct certification reports separately submitted to, and subject to acceptance by, FDA; submit its own report to the FDA; and successfully complete a reinspection by FDA of the company's Corporate and Taylor Street facilities. On July 24, 2017, following its June 2017 reinspection of the Corporate and Taylor Street facilities, FDA notified the company that it is in substantial compliance with the FDA Act, FDA regulations and the terms of the consent decree and, that the company was permitted to resume full operations at those facilities including the resumption of unrestricted sales of products made in those facilities. The consent decree will continue in effect for at least five years from July 2017, during which time the company's Corporate and Taylor Street facilities must complete two semi-annual audits in the first year and then four annual audits in the next four years performed by a company-retained expert firm. The expert audit firm will determine whether the facilities remain in continuous compliance with the FDA Act, FDA regulations and the terms of the consent decree. The FDA has the authority to inspect these facilities and any other FDA registered facility, at any time. The FDA has continued to actively inspect the company's facilities, other than through the processes established under the consent decree. The company expects that the FDA will, from time to time, inspect substantially all the company's domestic and foreign FDA-registered facilities. The results of regulatory claims, proceedings, investigations, or litigation are difficult to predict. An unfavorable resolution or outcome of any FDA warning letters or inspectional observations, or other FDA enforcement related to company facilities, could materially and adversely affect the company's business, financial condition, and results of operations. The limitations previously imposed by the FDA consent decree negatively affected net sales in the North America segment and, to a certain extent, the Asia Pacific region beginning in 2012. The limitations led to delays in new product introductions. Further, uncertainty regarding how long the limitations would be in effect limited the company's ability to renegotiate and bid on certain customer contracts and otherwise led to a decline in customer orders. Although the company has been permitted to resume full operations at the Corporate and Taylor Street facilities, the negative effect of the consent decree on customer orders and net sales in the North America segment and Asia Pacific region has been considerable, and it is uncertain as to whether, or how quickly, the company will be able to rebuild net sales to more typical historical levels, irrespective of market conditions. Accordingly, when compared to the company's 2010 results, the previous limitations in the consent decree had, and likely may continue to have, a material adverse effect on the company's business, financial condition and results of operations. Warranty Matters The company's warranty reserves are subject to adjustment in future periods based on historical analysis of warranty claims and as new developments occur that may change the company's estimates related to specific product recalls. See Current Liabilities in the Notes to the Condensed Consolidated Financial Statements for the total provision amounts and a reconciliation of the changes in the warranty accrual. Any of the above contingencies could have an adverse impact on the company's financial condition or results of operations. For additional information regarding the consent decree, other regulatory matters, and risks and trends that may impact the company’s financial condition or results of operations, please see the following sections of the company's Annual Report on Form 10-K for the year ended December 31, 2019: Item 1. Business - Government Regulation and Item 1A. Risk Factors; Item 3. Legal Proceedings; and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The condensed consolidated financial statements include the accounts of the company and its wholly owned subsidiaries and include all adjustments, which were of a normal recurring nature, necessary to present fairly the financial position of the company as of September 30, 2020 and the results of its operations and changes in its cash flow for the nine months ended September 30, 2020 and 2019, respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using an August 31 quarter end to meet filing deadlines. No material subsequent events have occurred related to the European segment, which would require disclosure or adjustment to the company's financial statements. All significant intercompany transactions are eliminated. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year. |
Use of Estimates | Use of Estimates: The condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements (Already Adopted): In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Statements." ASU 2016-13 requires a new credit loss standard for most financial assets and certain other instruments. For example, entities are required to use an "expected loss" model that will generally require earlier recognition of allowances for losses for trade receivables. The standard also requires additional disclosures, including disclosures regarding how an entity tracks credit quality. The company adopted ASU 2016-13, effective on January 1, 2020, which resulted in an increase for credit losses of $243,000 with the offsetting impact recorded to retained earnings. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair |
Divested Businesses (Tables)
Divested Businesses (Tables) | 2 Months Ended |
Mar. 07, 2020 | |
Divested Businesses [Abstract] | |
Assets and Liabilities of Divested Business [Table Text Block] | The assets and liabilities of Dynamic Controls as of March 7, 2020 and December 31, 2019 consisted of the following (in thousands): March 7, 2020 December 31, 2019 Trade receivables, net $ 4,129 $ 1,804 Inventories, net 3,082 3,008 Other assets 855 933 Property and equipment, net 600 707 Operating lease assets, net 2,127 1,870 Total assets $ 10,793 $ 8,322 Accounts payable $ 4,692 $ 4,501 Accrued expenses 2,473 2,108 Current taxes payable 41 92 Current portion of operating lease obligations 366 393 Long-term obligations 1,019 1,754 Total liabilities $ 8,591 $ 8,848 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Receivables consist of the following (in thousands): September 30, 2020 December 31, 2019 Accounts receivable, gross $ 132,809 $ 141,732 Customer rebate reserve (13,075) (13,922) Cash discount reserves (5,290) (5,326) Allowance for doubtful accounts (4,697) (4,804) Other, principally returns and allowances reserves (790) (1,011) Accounts receivable, net $ 108,957 $ 116,669 |
Schedule for Allowance for Credit Losses | The movement in the trade receivables allowance for doubtful accounts was as follows (in thousands): Nine Months Ended Balance as of beginning of period $ 4,804 Current period provision 522 Direct write-offs charged against the allowance (629) Balance as of end of period $ 4,697 |
Schedule of Installment Receivables | Installment receivables consist of the following (in thousands): September 30, 2020 December 31, 2019 Current Long- Total Current Long- Total Installment receivables $ 555 $ 228 $ 783 $ 1,192 $ 1,257 $ 2,449 Less: Unearned interest (3) — (3) (22) — (22) 552 228 780 1,170 1,257 2,427 Allowance for doubtful accounts (291) (164) (455) (434) (1,080) (1,514) Installment receivables, net $ 261 $ 64 $ 325 $ 736 $ 177 $ 913 |
Schedule of Installment Receivables Allowance for Doubtful Accounts | The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands): Nine Months Ended Year Ended December 31, 2019 Balance as of beginning of period $ 1,514 $ 1,542 Current period provision 32 479 Direct write-offs charged against the allowance (1,091) (507) Balance as of end of period $ 455 $ 1,514 |
Schedule of Installment Receivables by Class | Installment receivables by class as of September 30, 2020 consist of the following (in thousands): Total Unpaid Related Interest U.S. Impaired installment receivables with a related allowance recorded $ 649 $ 649 $ 453 $ — Canada Non-Impaired installment receivables with no related allowance recorded 132 129 — 26 Impaired installment receivables with a related allowance recorded 2 2 2 — Total Canadian installment receivables 134 131 2 26 Total Non-Impaired installment receivables with no related allowance recorded 132 129 — 26 Impaired installment receivables with a related allowance recorded 651 651 455 — Total installment receivables $ 783 $ 780 $ 455 $ 26 Installment receivables by class as of December 31, 2019 consist of the following (in thousands): Total Unpaid Related Interest U.S. Impaired installment receivables with a related allowance recorded $ 1,762 $ 1,762 $ 1,497 $ — Canada Non-Impaired installment receivables with no related allowance recorded 670 648 — 92 Impaired installment receivables with a related allowance recorded 17 17 17 — Total Canadian installment receivables 687 665 17 92 Total Non-Impaired installment receivables with no related allowance recorded 670 648 — 92 Impaired installment receivables with a related allowance recorded 1,779 1,779 1,514 — Total installment receivables $ 2,449 $ 2,427 $ 1,514 $ 92 |
Schedule of Financing Receivables | Installment receivables by class as of September 30, 2020 consist of the following (in thousands): Total Unpaid Related Interest U.S. Impaired installment receivables with a related allowance recorded $ 649 $ 649 $ 453 $ — Canada Non-Impaired installment receivables with no related allowance recorded 132 129 — 26 Impaired installment receivables with a related allowance recorded 2 2 2 — Total Canadian installment receivables 134 131 2 26 Total Non-Impaired installment receivables with no related allowance recorded 132 129 — 26 Impaired installment receivables with a related allowance recorded 651 651 455 — Total installment receivables $ 783 $ 780 $ 455 $ 26 Installment receivables by class as of December 31, 2019 consist of the following (in thousands): Total Unpaid Related Interest U.S. Impaired installment receivables with a related allowance recorded $ 1,762 $ 1,762 $ 1,497 $ — Canada Non-Impaired installment receivables with no related allowance recorded 670 648 — 92 Impaired installment receivables with a related allowance recorded 17 17 17 — Total Canadian installment receivables 687 665 17 92 Total Non-Impaired installment receivables with no related allowance recorded 670 648 — 92 Impaired installment receivables with a related allowance recorded 1,779 1,779 1,514 — Total installment receivables $ 2,449 $ 2,427 $ 1,514 $ 92 |
Schedule of Aging of Installment Receivables | The aging of the company’s installment receivables was as follows (in thousands): September 30, 2020 December 31, 2019 Total U.S. Canada Total U.S. Canada Current $ 132 $ — $ 132 $ 659 $ — $ 659 0-30 Days Past Due — — — 2 — 2 31-60 Days Past Due — — — 4 — 4 61-90 Days Past Due — — — — — — 90+ Days Past Due 651 649 2 1,784 1,762 22 $ 783 $ 649 $ 134 $ 2,449 $ 1,762 $ 687 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consist of the following (in thousands): September 30, 2020 December 31, 2019 Finished goods $ 68,599 $ 54,064 Raw materials 66,093 54,638 Work in process 10,760 11,798 Inventories, net $ 145,452 $ 120,500 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Tax receivables principally value added taxes $ 23,188 $ 16,049 Receivable due from information technology provider 2,402 6,262 Prepaid inventory 1,392 684 Derivatives (foreign currency forward exchange contracts) 599 838 Service contracts 446 2,013 Prepaid insurance 341 2,918 Deferred financing fees 209 207 Prepaid social charges 95 1,216 Recoverable income taxes 50 297 Prepaid and other current assets 8,913 7,425 Other Current Assets $ 37,635 $ 37,909 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets, Noncurrent | Other long-term assets consist of the following (in thousands): September 30, 2020 December 31, 2019 Cash surrender value of life insurance policies $ 2,224 $ 2,124 Deferred income taxes 1,032 928 Deferred financing fees 461 602 Investments 85 85 Installment receivables 64 177 Other 125 300 Other Long-Term Assets $ 3,991 $ 4,216 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment consist of the following (in thousands): September 30, 2020 December 31, 2019 Machinery and equipment $ 291,902 $ 296,078 Land, buildings and improvements 28,088 33,054 Capitalized software 13,787 3,509 Furniture and fixtures 9,866 9,898 Leasehold improvements 8,087 9,023 Property and Equipment, gross 351,730 351,562 Accumulated depreciation (298,618) (304,955) Property and Equipment, net $ 53,112 $ 46,607 |
Intangibles (Tables)
Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Indefinite-Lived Intangible Assets | The company's intangibles consist of the following (in thousands): September 30, 2020 December 31, 2019 Historical Accumulated Historical Accumulated Customer lists $ 54,267 $ 54,267 $ 51,108 $ 51,108 Trademarks 25,019 — 23,479 — Developed technology 7,918 7,150 7,483 6,642 Patents 5,514 5,514 5,521 5,521 License agreements 2,864 891 2,884 770 Other 1,161 1,151 1,163 1,150 Intangibles $ 96,743 $ 68,973 $ 91,638 $ 65,191 |
Schedule of Finite-Lived Intangible Assets | The company's intangibles consist of the following (in thousands): September 30, 2020 December 31, 2019 Historical Accumulated Historical Accumulated Customer lists $ 54,267 $ 54,267 $ 51,108 $ 51,108 Trademarks 25,019 — 23,479 — Developed technology 7,918 7,150 7,483 6,642 Patents 5,514 5,514 5,521 5,521 License agreements 2,864 891 2,884 770 Other 1,161 1,151 1,163 1,150 Intangibles $ 96,743 $ 68,973 $ 91,638 $ 65,191 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of accruals for the following (in thousands): September 30, 2020 December 31, 2019 Salaries and wages $ 34,612 $ 29,725 Taxes other than income taxes, primarily Value Added Taxes 29,830 22,194 Warranty 11,144 11,626 Professional 8,481 6,869 Severance 5,988 7,023 Interest 4,663 3,608 Rebates 4,146 10,743 IT service contracts 3,790 6,125 Freight 3,710 3,744 Deferred revenue 3,436 3,173 Derivative liabilities (foreign currency forward exchange contracts) 2,824 905 Product liability, current portion 2,810 2,736 Insurance 781 699 Rent 568 415 Supplemental Executive Retirement Program liability 391 391 Advance payment on sale of land & buildings — 3,471 IT licenses — 2,114 Other items, principally trade accruals 7,492 5,386 Accrued Expenses $ 124,666 $ 120,947 |
Schedule of Product Warranty Liability | The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): Balance as of January 1, 2020 $ 11,626 Warranties provided during the period 4,311 Settlements made during the period (5,926) Changes in liability for pre-existing warranties during the period, including expirations 1,133 Balance as of September 30, 2020 $ 11,144 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt consists of the following (in thousands): September 30, 2020 December 31, 2019 Convertible senior notes at 5.00%, due in February 2021 $ 1,224 $ 56,628 Convertible senior notes at 4.50%, due in June 2022 72,652 101,815 Convertible senior notes Series I at 5.00%, due in November 2024 62,443 60,817 Convertible senior notes Series II at 5.00%, due November 2024 63,556 — Other obligations 42,389 262 242,264 219,522 Less current maturities of long-term debt (4,062) (58) Long-Term Debt $ 238,202 $ 219,464 |
Liability Components of Convertible 2021 Note | The liability components of the 2021 notes consist of the following (in thousands): September 30, 2020 December 31, 2019 Principal amount of liability component $ 1,250 $ 61,091 Unamortized discount (22) (3,916) Debt fees (4) (547) Net carrying amount of liability component $ 1,224 $ 56,628 |
Liability Components of Convertible 2022 Note | The liability components of the 2022 notes consist of the following (in thousands): September 30, 2020 December 31, 2019 Principal amount of liability component $ 81,500 $ 120,000 Unamortized discount (7,837) (16,027) Debt fees (1,011) (2,158) Net carrying amount of liability component $ 72,652 $ 101,815 |
Liability Components of Convertible 2024 Note | The liability components of the 2024 notes consist of the following (in thousands): September 30, 2020 December 31, 2019 Principal amount of liability component $ 72,909 $ 72,909 Unamortized discount (9,363) (10,733) Debt fees (1,103) (1,359) Net carrying amount of liability component $ 62,443 $ 60,817 |
Liability Components of Convertible Series II 2024 Note | The liability components of the Series II Notes consist of the following (in thousands): September 30, 2020 Principal amount of liability component - including accretion $ 74,891 Unamortized discount (9,967) Debt fees (1,368) Net carrying amount of liability component $ 63,556 |
Other Long-Term Obligations (Ta
Other Long-Term Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | Other long-term obligations consist of the following (in thousands): September 30, 2020 December 31, 2019 Deferred income taxes $ 24,223 $ 23,376 Product liability 13,545 13,414 Pension 7,586 7,006 Deferred gain on sale leaseback 5,582 5,819 Deferred compensation 5,318 5,354 Supplemental Executive Retirement Plan liability 5,245 5,433 Uncertain tax obligation including interest 2,660 2,612 Other 6,589 3,935 Other Long-Term Obligations $ 70,748 $ 66,949 |
Leases and Commitments (Tables)
Leases and Commitments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table] | Lease expense for the three and nine months ended September 30, 2020 and September 30, 2019, respectively, were as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Operating leases $ 1,926 $ 2,696 $ 6,210 $ 8,175 Variable and short-term leases 1,077 894 2,936 1,974 Total operating leases $ 3,003 $ 3,590 $ 9,146 $ 10,149 Finance lease interest cost $ 829 $ 346 $ 1,483 $ 977 Finance lease depreciation 980 706 2,346 1,957 Total finance leases $ 1,809 $ 1,052 $ 3,829 $ 2,934 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table] | Future minimum operating and finance lease commitments, as of September 30, 2020, are as follows (in thousands): Finance Operating Leases 2020 $ 1,873 $ 1,842 2021 7,416 6,027 2022 6,487 3,466 2023 6,421 1,407 2024 6,365 890 Thereafter 84,251 786 Total future minimum lease payments 112,813 14,418 Amounts representing interest (45,511) (1,393) Present value of minimum lease payments 67,302 13,025 Less: current maturities of lease obligations (3,352) (5,843) Long-term lease obligations $ 63,950 $ 7,182 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table] | Future minimum operating and finance lease commitments, as of September 30, 2020, are as follows (in thousands): Finance Operating Leases 2020 $ 1,873 $ 1,842 2021 7,416 6,027 2022 6,487 3,466 2023 6,421 1,407 2024 6,365 890 Thereafter 84,251 786 Total future minimum lease payments 112,813 14,418 Amounts representing interest (45,511) (1,393) Present value of minimum lease payments 67,302 13,025 Less: current maturities of lease obligations (3,352) (5,843) Long-term lease obligations $ 63,950 $ 7,182 |
Schedule of Cash Flow, Supplemental Disclosures [Table] | Supplemental cash flow amounts for the nine months ended September 30, 2020 were as follows (in thousands): Cash Activity: Cash paid in measurement of amounts for lease liabilities September 30, 2020 Operating Leases $ 9,407 Financing Leases 3,429 Total $ 12,836 Non-Cash Activity: Right-of-use assets obtained in exchange for lease obligations September 30, 2020 Operating Leases $ 2,789 Financing Leases 39,942 Total $ 42,731 |
Weighted-Average Remaining Lease Terms and Discount Rates [Table] | Weighted-average remaining lease terms and discount rates for finance and operating leases are as follows as of September 30, 2020: September 30, 2020 Weighted-average remaining lease term - finance leases 17.2 years Weighted-average remaining lease term - operating leases 3.2 years Weighted-average discount rate - finance leases 6.32% Weighted-average discount rate - operating leases 7.74% |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Revenue Recognition, Multiple-deliverable Arrangements | The following tables disaggregate the company’s revenues by major source and by reportable segment for the three and nine months ended September 30, 2020 and September 30, 2019 (in thousands): Three Months Ended September 30, 2020 Product Service Total Europe $ 113,043 $ 3,242 $ 116,285 North America 87,821 234 88,055 Other (Asia/Pacific) 6,428 1,138 7,566 Total $ 207,292 $ 4,614 $ 211,906 % Split 98% 2% 100% Nine Months Ended September 30, 2020 Product Service Total Europe $ 329,943 $ 9,204 $ 339,147 North America 260,999 596 261,595 Other (Asia/Pacific) 22,565 3,339 25,904 Total $ 613,507 $ 13,139 $ 626,646 % Split 98% 2% 100% Three Months Ended September 30, 2019 Product Service Total Europe $ 133,839 $ 3,532 $ 137,371 North America 86,761 357 87,118 Other (Asia/Pacific) 10,047 1,238 11,285 Total $ 230,647 $ 5,127 $ 235,774 % Split 98% 2% 100% Nine Months Ended September 30, 2019 Product Service Total Europe $ 386,007 $ 10,199 $ 396,206 North America 261,707 1,208 262,915 Other (Asia/Pacific) 32,242 3,688 35,930 Total $ 679,956 $ 15,095 $ 695,051 % Split 98% 2% 100% |
Equity Compensation (Tables)
Equity Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The amounts of equity-based compensation expense recognized as part of SG&A expenses in All Other in business segments were as follows (in thousands): For the Nine Months Ended September 30, 2020 2019 Restricted share / units $ 4,471 $ 3,891 Performance shares / units 2,494 1,648 Non-qualified and performance share options — 334 Total share-based compensation expense $ 6,965 $ 5,873 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | As of September 30, 2020, unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2018 Plan and previous plans, which is related to non-vested shares, was as follows (in thousands): September 30, 2020 Restricted share and restricted share units $ 8,443 Performance shares and performance share units 11,144 Total unrecognized share-based compensation expense $ 19,587 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes information about share option activity for the nine months ended September 30, 2020: Weighted Average Options outstanding at January 1, 2020 1,441,202 $ 18.26 Canceled (354,006) 24.88 Options outstanding at September 30, 2020 1,087,196 $ 16.12 Options exercise price range at September 30, 2020 $ 12.15 to $ 33.36 Options exercisable at September 30, 2020 1,087,196 Shares available for grant at September 30, 2020* 3,513,468 ________ |
Schedule of Share-based Compensation, Stock Options Outstanding | The following table summarizes information about stock options outstanding at September 30, 2020: Options Outstanding Options Exercisable Exercise Prices Number Weighted Average Weighted Average Number Weighted Average $12.15 – $20.00 777,159 5.1 $ 12.74 777,159 $ 12.73 $20.01 – $25.00 300,149 0.9 24.45 300,149 24.45 $25.01 – $30.00 5,392 0.2 27.82 5,392 27.82 $30.01 – $33.36 4,496 0.6 33.36 4,496 33.36 Total 1,087,196 3.9 $ 16.12 1,087,196 $ 16.12 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes information about restricted shares and restricted share units (primarily for non-U.S. recipients): Weighted Average Fair Value Shares / Units unvested at 965,085 $ 11.32 Granted 764,012 7.11 Vested (452,922) 11.47 Canceled (94,993) 10.19 Shares / Units unvested at 1,181,182 $ 8.63 |
Share-based Compensation, Performance Shares Award Unvested Activity | The following table summarizes information about performance shares and performance share units (for non-U.S. recipients): Weighted Average Fair Value Shares / Units unvested at January 1, 2020 753,272 $ 11.82 Granted 523,329 7.08 Canceled (65,976) 9.48 Shares / Units unvested at 1,210,625 $ 9.90 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income ("OCI") (in thousands): Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total June 30, 2020 $ 16,455 $ (9,133) $ (3,468) $ 794 $ 4,648 OCI before reclassifications 35,231 713 281 (2,501) 33,724 Amount reclassified from accumulated OCI — — (474) 739 265 Net current-period OCI 35,231 713 (193) (1,762) 33,989 September 30, 2020 $ 51,686 $ (8,420) $ (3,661) $ (968) $ 38,637 Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total December 31, 2019 $ 8,898 $ (2,491) $ (3,299) $ 20 $ 3,128 OCI before reclassifications 42,788 (5,929) 122 (1,340) 35,641 Amount reclassified from accumulated OCI — — (484) 352 (132) Net current-period OCI 42,788 (5,929) (362) (988) 35,509 September 30, 2020 $ 51,686 $ (8,420) $ (3,661) $ (968) $ 38,637 Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total June 30, 2019 $ 13,122 $ (2,200) $ (2,778) $ 1,627 $ 9,771 OCI before reclassifications (5,729) (3,328) (504) 557 (9,004) Amount reclassified from accumulated OCI — — 303 (860) (557) Net current-period OCI (5,729) (3,328) (201) (303) (9,561) September 30, 2019 $ 7,393 $ (5,528) $ (2,979) $ 1,324 $ 210 Foreign Currency Long-Term Notes Defined Benefit Plans Derivatives Total December 31, 2018 $ 12,244 $ 2,662 $ (2,703) $ 590 $ 12,793 OCI before reclassifications (4,851) (8,190) (922) 2,179 (11,784) Amount reclassified from accumulated OCI — — 646 (1,445) (799) Net current-period OCI (4,851) (8,190) (276) 734 (12,583) September 30, 2019 $ 7,393 $ (5,528) $ (2,979) $ 1,324 $ 210 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Reclassifications out of accumulated OCI were as follows (in thousands): Amount reclassified from OCI Affected line item in the Statement of Comprehensive (Income) Loss For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Defined Benefit Plans Service and interest costs $ (474) $ 303 $ (484) $ 646 Selling, general and administrative expenses Tax — — — — Income tax provision Total after tax $ (474) $ 303 $ (484) $ 646 Derivatives Foreign currency forward contracts hedging sales $ (481) $ (197) $ (692) $ (189) Net sales Foreign currency forward contracts hedging purchases 1,259 (747) 1,029 (1,375) Cost of products sold Total loss (income) before tax 778 (944) 337 (1,564) Tax (39) 84 15 119 Income tax provision (benefit) Total after tax $ 739 $ (860) $ 352 $ (1,445) |
Charges Related To Restructur_2
Charges Related To Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | A progression by reporting segment of the accruals recorded as a result of the restructuring for the nine months ended September 30, 2020 is as follows (in thousands): Severance Contract Terminations Total December 31, 2019 Balances North America $ 211 $ — $ 211 Europe 6,406 4 6,410 All Other 406 — 406 Total 7,023 4 7,027 Charges North America 691 — 691 Europe 592 73 665 All Other 36 — 36 Total 1,319 73 1,392 Payments North America (562) — (562) Europe (959) (73) (1,032) All Other (276) — (276) Total (1,797) (73) (1,870) March 31, 2020 Balances North America 340 — 340 Europe 6,039 4 6,043 All Other 166 — 166 Total $ 6,545 $ 4 $ 6,549 Charges North America $ 28 $ — $ 28 Europe 1,302 273 1,575 All Other 82 — 82 Total 1,412 273 1,685 Payments North America (265) — (265) Europe (1,596) (273) (1,869) All Other (82) — (82) Total (1,943) (273) (2,216) June 30, 2020 Balances North America 103 — 103 Europe 5,745 4 5,749 All Other 166 — 166 Total $ 6,014 $ 4 $ 6,018 Charges North America 146 — 146 Europe 1,434 — 1,434 All Other — — — Total 1,580 — 1,580 Payments North America (151) — (151) Europe (1,455) — (1,455) All Other — — — Total (1,606) — (1,606) Severance Contract Terminations Total September 30, 2020 Balances North America 98 — 98 Europe 5,724 4 5,728 All Other 166 — 166 Total $ 5,988 $ 4 $ 5,992 |
Net Earnings (Loss) Per Commo_2
Net Earnings (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated. (In thousands except per share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Basic Weighted average common shares outstanding 34,419 33,660 34,213 33,571 Net loss $ (7,276) $ (8,041) $ (23,163) $ (34,644) Net loss per common share $ (0.21) $ (0.24) $ (0.68) $ (1.03) Diluted Weighted average common shares outstanding 34,419 33,660 34,213 33,571 Share options and awards 111 8 100 10 Weighted average common shares assuming dilution 34,530 33,668 34,313 33,581 Net loss $ (7,276) $ (8,041) $ (23,163) $ (34,644) Net loss per common share * $ (0.21) $ (0.24) $ (0.68) $ (1.03) ________ * Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss. |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Outstanding foreign currency forward exchange contracts qualifying and designated for hedge accounting treatment were as follows (in thousands USD): September 30, 2020 December 31, 2019 Notional Unrealized Notional Unrealized USD / AUD $ 960 $ (41) $ 3,840 $ (106) USD / CAD 1,138 (2) 3,888 32 USD / EUR 17,468 (1,061) 110,905 122 USD / GBP 387 (11) 3,972 (8) USD / NZD 290 (13) 2,760 (166) USD / SEK 876 (88) 5,062 (38) USD / MXN 3,901 (58) 6,763 346 EUR / CAD 915 (42) 4,151 24 EUR / CHF 2,703 (45) 9,821 10 EUR / GBP 6,325 178 29,824 (216) EUR / SEK 2,330 (72) 9,493 (46) EUR / NOK 1,490 14 5,797 15 DKK / SEK 1,402 40 5,936 24 NOK / SEK 1,490 53 5,151 18 $ 41,675 $ (1,148) $ 207,363 $ 11 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Foreign currency forward exchange contracts not qualifying or designated for hedge accounting treatment, as well as ineffective hedges, entered into in 2020 and 2019, respectively, and outstanding were as follows (in thousands USD): September 30, 2020 December 31, 2019 Notional Gain Notional Gain AUD / USD $ 6,149 $ 96 $ 10,000 $ (94) CAD / USD 8,321 88 8,000 (50) EUR / USD 11,735 (745) 10,000 104 DKK / USD 15,081 (137) — — GBP / USD 650 (18) 7,000 40 NOK / USD 8,986 (427) — — NZD / USD 309 (9) 4,500 (101) EUR / CAD 130 (6) — — EUR / GBP 2,086 59 — — AUD / NZD 6,438 21 7,900 23 EUR / NOK 80 1 — — $ 59,965 $ (1,077) $ 47,400 $ (78) |
Schedule of Derivatives Instruments Statements of Financial Position, Fair Value | The fair values of the company’s derivative instruments were as follows (in thousands): September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Derivatives designated as hedging instruments under ASC 815 Foreign currency forward exchange contracts $ 334 $ 1,482 $ 668 $ 657 Derivatives not designated as hedging instruments under ASC 815 Foreign currency forward exchange contracts 265 1,342 170 248 Total derivatives $ 599 $ 2,824 $ 838 $ 905 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The effect of derivative instruments on Accumulated Other Comprehensive Income (OCI) and the Statement of Comprehensive Income (Loss) and was as follows (in thousands): Derivatives in ASC 815 cash flow hedge Amount of Gain Amount of Gain (Loss) Amount of Gain (Loss) Three months ended September 30, 2020 Foreign currency forward exchange contracts $ (2,501) $ (739) $ (662) Nine months ended September 30, 2020 Foreign currency forward exchange contracts $ (1,340) $ (352) $ (718) Three months ended September 30, 2019 Foreign currency forward exchange contracts $ 557 $ 860 $ (2) Nine months ended September 30, 2019 Foreign currency forward exchange contracts $ 2,179 $ 1,445 $ 50 Derivatives not designated as hedging Amount of Gain (Loss) Three months ended September 30, 2020 Foreign currency forward exchange contracts $ (1,320) Nine months ended September 30, 2020 Foreign currency forward exchange contracts $ (1,077) Three months ended September 30, 2019 Foreign currency forward exchange contracts $ 317 Nine months ended September 30, 2019 Foreign currency forward exchange contracts $ 103 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The fair values of the outstanding convertible note derivatives as of September 30, 2020 and their effect on the Statement of Comprehensive Income (Loss) were as follows (in thousands): Gain (Loss) Gain (Loss) Fair Value Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Convertible 2021 debt conversion long-term liability $ — $ — $ — $ — $ (2,210) Convertible 2022 debt conversion long-term liability — — — — (6,193) Convertible 2021 note hedge long-term asset — — — — 2,852 Convertible 2022 note hedge long-term asset — — — — 6,748 Net fair value and net gain on convertible debt derivatives $ — $ — $ — $ — $ 1,197 |
Fair Values (Tables)
Fair Values (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands): Basis for Fair Value Measurements at Reporting Date Quoted Prices in Active Significant Other Significant Other Level I Level II Level III September 30, 2020 Forward exchange contracts—net — $ (2,225) — December 31, 2019 Forward exchange contracts—net — $ (67) — |
Fair Value, by Balance Sheet Grouping | The carrying values and fair values of the company’s financial instruments are as follows (in thousands): September 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Cash and cash equivalents $ 86,825 $ 86,825 $ 80,063 $ 80,063 Other investments 85 85 85 85 Installment receivables, net of reserves 325 325 913 913 Total debt (including current maturities of long-term debt) * (242,264) (218,231) (219,522) (207,193) Forward contracts in Other Current Assets 599 599 838 838 Forward contracts in Accrued Expenses (2,824) (2,824) (905) (905) ________ * The company's total debt is shown net of discount and fees associated with the Convertible Senior Notes due in 2021, 2022 and 2024 on the company's condensed consolidated balance sheet. Accordingly, the fair values of the Convertible Senior Notes due in 2021, 2022 and 2024 are included in the long-term debt presented in this table are also shown net of the discount and fees. Total debt amounts exclude operating and financing leases obligations. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The information by segment is as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Revenues from external customers Europe $ 116,285 $ 137,371 $ 339,147 $ 396,206 North America 88,055 87,118 261,595 262,915 All Other (Asia Pacific) 7,566 11,285 25,904 35,930 Consolidated $ 211,906 $ 235,774 $ 626,646 $ 695,051 Intersegment revenues Europe $ 6,027 $ 3,124 $ 14,438 $ 10,396 North America 23,625 21,130 66,356 61,109 All Other (Asia Pacific) 1,116 3,904 3,645 9,776 Consolidated $ 30,768 $ 28,158 $ 84,439 $ 81,281 Restructuring charges before income taxes Europe $ 1,434 $ 1,263 $ 3,674 $ 1,903 North America 146 331 865 1,539 All Other — 34 118 199 Consolidated $ 1,580 $ 1,628 $ 4,657 $ 3,641 Operating income (loss) Europe $ 7,600 $ 11,365 $ 16,624 $ 22,617 North America 2,992 (1,694) 5,759 (7,316) All Other (6,082) (5,625) (17,377) (18,230) Charge expense related to restructuring activities (1,580) (1,628) (4,657) (3,641) Gain on sale of business — — 9,790 — Consolidated operating income (loss) 2,930 2,418 10,139 (6,570) Net gain on convertible debt derivatives — — — 1,197 Loss on debt extinguishment including debt finance charges and associated fees (761) (280) (7,360) (280) Net Interest expense (7,395) (6,879) (21,042) (21,666) Loss before income taxes $ (5,226) $ (4,741) $ (18,263) $ (27,319) |
Revenue from External Customer [Line Items] | |
Revenue from External Customers by Products and Services [Table Text Block] | Net sales by product, are as follows (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Europe Lifestyle $ 50,307 $ 59,403 $ 160,628 $ 182,103 Mobility and Seating 54,851 68,286 147,275 184,819 Respiratory Therapy 6,070 4,919 16,680 14,875 Other(1) 5,057 4,763 14,564 14,409 $ 116,285 $ 137,371 $ 339,147 $ 396,206 North America Lifestyle $ 41,845 $ 43,401 $ 124,888 $ 131,259 Mobility and Seating 26,572 31,252 82,485 89,638 Respiratory Therapy 19,405 12,108 53,626 40,811 Other(1) 233 357 596 1,207 $ 88,055 $ 87,118 $ 261,595 $ 262,915 All Other (Asia Pacific) Mobility and Seating $ 2,670 $ 6,645 $ 10,757 $ 21,986 Lifestyle 3,375 3,001 10,176 8,261 Respiratory Therapy 195 175 1,043 1,063 Other(1) 1,326 1,464 3,928 4,620 $ 7,566 $ 11,285 $ 25,904 $ 35,930 Total Consolidated $ 211,906 $ 235,774 $ 626,646 $ 695,051 ________________________ (1) Includes various services, including repair services, equipment rentals and external contracting. |
Divested Businesses (Details)
Divested Businesses (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 07, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Divested Businesses [Abstract] | ||||||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | $ 4,129,000 | $ 1,804,000 | ||||
Disposal Group, Including Discontinued Operation, Revenue | 5,331,000 | 30,261,000 | ||||
Disposal Group, Including Discontinued Operation, Inter-Company Revenue | 2,532,000 | 13,087,000 | ||||
Disposal Group, Including Discontinued Operation, Earnings Before Taxes | 445,000 | 853,000 | ||||
Proceeds from sale of business | $ 14,563,000 | $ 0 | ||||
Gain on sale of business | $ 0 | $ 0 | 9,790,000 | $ 0 | ||
Disposal Group, Including Discontinued Operation, Payments for Divestiture Costs | 1,789,000 | |||||
Disposal Group, Including Discontinued Operation, Divestiture Costs Incurred | $ 2,150,000 | |||||
Disposal Group, Including Discontinued Operation, Inventory | 3,082,000 | 3,008,000 | ||||
Disposal Group, Including Discontinued Operation, Other Assets | 855,000 | 933,000 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 600,000 | 707,000 | ||||
Disposal Group, Including Discontinued Operation, Operating Lease Right-of-Use Asset | 2,127,000 | 1,870,000 | ||||
ERROR in label resolution. | 10,793,000 | 8,322,000 | ||||
Disposal Group, Including Discontinued Operation, Accounts Payable | 4,692,000 | 4,501,000 | ||||
Disposal Group, Including Discontinued Operation, Accrued Liabilities | 2,473,000 | 2,108,000 | ||||
Disposal Group, Including Discontinued Operation, Accrued Income Tax Payable | 41,000 | 92,000 | ||||
Disposal Group, Including Discontinued Operation, Operating Lease, Liability, Current | 366,000 | 393,000 | ||||
Disposal Group, Including Discontinued Operation, Operating Lease, Liability, NonCurrent | 1,019,000 | 1,754,000 | ||||
Disposal Group, Including Discontinued Operation, Liabilities | $ 8,591,000 | $ 8,848,000 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020USD ($)payment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Adoption of Credit Loss Standard | $ (243,000) |
Contingent Liability, Guarantee | $ 306,000 |
Number of missed payments before delinquent | payment | 3 |
Typical financing period | 12 months |
Credit amount requiring additional analysis | $ 250,000 |
Average period of adjudication | 18 months |
Installment receivable purchased from DLL | $ 343,000 |
Risk Level, Low | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivables, Expected Loss Percentage, North America excluding Canada | 1.00% |
Receivables, Expected Loss Percentage, Canada | 0.20% |
Receivables, Expected Loss Percentage, Europe | 0.30% |
Receivables, Expected Loss Percentage, AsiaPac | 0.30% |
Risk Level, Medium | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivables, Expected Loss Percentage, Europe | 0.90% |
Risk Level, High | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Receivables, Expected Loss Percentage, Europe | 2.70% |
Receivables (Schedule of Accoun
Receivables (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Accounts Receivable [Abstract] | ||
Accounts receivable, gross | $ 132,809 | $ 141,732 |
Customer rebate reserve | (13,075) | (13,922) |
Cash discount reserves | (5,290) | (5,326) |
Allowance for doubtful accounts | (4,697) | (4,804) |
Other, principally returns and allowances reserves | (790) | (1,011) |
Accounts Receivable, Net | $ 108,957 | $ 116,669 |
Receivables Schedule for Allowa
Receivables Schedule for Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for Credit Losses | $ 4,697 | $ 4,804 |
Allowance for Loan and Lease Losses, Adjustments, Other | 522 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | $ (629) |
Receivables (Installment Receva
Receivables (Installment Recevables) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | |||
Non-Impaired Financing Receivable, Related Allowance | $ 0 | $ 0 | |
Installment Receivables, Current | 555,000 | 1,192,000 | |
Installment Receivables, Long-Term | 228,000 | 1,257,000 | |
Total Installment Receivables | 783,000 | 2,449,000 | |
Unearned Interest | 3,000 | 22,000 | |
Unearned Interest - Noncurrent | 0 | 0 | |
Total Unearned Interest | (3,436,000) | (3,173,000) | |
Unearned Interest | 3,000 | 22,000 | |
Installment Receivables Net of Unearned Interest Current | 552,000 | 1,170,000 | |
Installment Receivables Net of Unearned Interest Noncurrent | 228,000 | 1,257,000 | |
Installment Receivables, Net of Unearned Interest | 780,000 | 2,427,000 | |
Allowance for doubtful accounts, current | (291,000) | (434,000) | |
Allowance for doubtful accounts, long-term | (164,000) | (1,080,000) | |
Allowance for doubtful accounts | (455,000) | (1,514,000) | $ (1,542,000) |
Installment receivables, net | 261,000 | 736,000 | |
Installment receivables, net, long-term | 64,000 | 177,000 | |
Installment receivables, net | $ 325,000 | $ 913,000 |
Receivables (Rollforward of All
Receivables (Rollforward of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts [Roll Forward] | ||
Balance as of beginning of period | $ 1,514 | $ 1,542 |
Current period provision | 32 | 479 |
Direct write-offs charged against the allowance | (1,091) | (507) |
Balance as of end of period | $ 455 | $ 1,514 |
Receivables (Installment Receiv
Receivables (Installment Receivables by Class) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Total Installment Receivables | ||
Non-Impaired installment receivables with no related allowance recorded | $ 132 | $ 670 |
Impaired installment receivables with a related allowance recorded | 651 | 1,779 |
Total installment receivables | 783 | 2,449 |
Unpaid Principal Balance | ||
Non-Impaired installment receivables with no related allowance recorded | 129 | 648 |
Impaired installment receivables with a related allowance recorded | 651 | 1,779 |
Total installment receivables | 780 | 2,427 |
Non-Impaired Financing Receivable, Related Allowance | 0 | 0 |
Related Allowance for Doubtful Accounts | ||
Impaired installment receivables with a related allowance recorded | 455 | 1,514 |
Interest Income Recognized | ||
Non-Impaired installment receivables with no related allowance recorded | 26 | 92 |
Impaired installment receivables with a related allowance recorded | 0 | 0 |
Total installment receivables | 26 | 92 |
U.S. | ||
Total Installment Receivables | ||
Impaired installment receivables with a related allowance recorded | 649 | 1,762 |
Unpaid Principal Balance | ||
Impaired installment receivables with a related allowance recorded | 649 | 1,762 |
Related Allowance for Doubtful Accounts | ||
Impaired installment receivables with a related allowance recorded | 453 | 1,497 |
Interest Income Recognized | ||
Impaired installment receivables with a related allowance recorded | 0 | 0 |
CANADA | ||
Total Installment Receivables | ||
Non-Impaired installment receivables with no related allowance recorded | 132 | 670 |
Impaired installment receivables with a related allowance recorded | 2 | 17 |
Total installment receivables | 134 | 687 |
Unpaid Principal Balance | ||
Non-Impaired installment receivables with no related allowance recorded | 129 | 648 |
Impaired installment receivables with a related allowance recorded | 2 | 17 |
Total installment receivables | 131 | 665 |
Non-Impaired Financing Receivable, Related Allowance | 0 | 0 |
Related Allowance for Doubtful Accounts | ||
Impaired installment receivables with a related allowance recorded | 2 | 17 |
Interest Income Recognized | ||
Non-Impaired installment receivables with no related allowance recorded | 26 | 92 |
Impaired installment receivables with a related allowance recorded | 0 | 0 |
Total installment receivables | $ 26 | $ 92 |
Receivables (Aging of Installme
Receivables (Aging of Installment Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 132 | $ 659 |
0-30 Days Past Due | 0 | 2 |
31-60 Days Past Due | 0 | 4 |
61-90 Days Past Due | 0 | 0 |
90+ Days Past Due | 651 | 1,784 |
Total Installment Receivables Past Due | 783 | 2,449 |
U.S. | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 0 | 0 |
0-30 Days Past Due | 0 | 0 |
31-60 Days Past Due | 0 | 0 |
61-90 Days Past Due | 0 | 0 |
90+ Days Past Due | 649 | 1,762 |
Total Installment Receivables Past Due | 649 | 1,762 |
CANADA | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 132 | 659 |
0-30 Days Past Due | 0 | 2 |
31-60 Days Past Due | 0 | 4 |
61-90 Days Past Due | 0 | 0 |
90+ Days Past Due | 2 | 22 |
Total Installment Receivables Past Due | $ 134 | $ 687 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 68,599 | $ 54,064 |
Raw materials | 66,093 | 54,638 |
Work in process | 10,760 | 11,798 |
Inventory, net | $ 145,452 | $ 120,500 |
Other Current Assets Components
Other Current Assets Components of Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Tax receivables principally value added taxes | $ 23,188 | $ 16,049 |
Receivable due from information technology provider | 2,402 | 6,262 |
Prepaid inventory | 1,392 | 684 |
Derivatives (foreign currency forward exchange contracts) | 599 | 838 |
Service contracts | 446 | 2,013 |
Prepaid insurance | 341 | 2,918 |
Deferred financing fees | 209 | 207 |
Prepaid social charges | 95 | 1,216 |
Recoverable income taxes | 50 | 297 |
Prepaid and other current assets | 8,913 | 7,425 |
Other current assets | $ 37,635 | $ 37,909 |
Other Long-Term Assets Componen
Other Long-Term Assets Components of Other Long-Term Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Cash surrender value of life insurance policies | $ 2,224 | $ 2,124 |
Deferred income taxes | 1,032 | 928 |
Deferred financing fees | 461 | 602 |
Investments | 85 | 85 |
Installment receivables | 64 | 177 |
Other | 125 | 300 |
Other Long-Term Assets | $ 3,991 | $ 4,216 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 351,730 | $ 351,562 | ||
Less allowance for depreciation | (298,618) | (304,955) | ||
Property and equipment, net | 53,112 | 46,607 | ||
Advance Payment from Sale of Property | $ 2,900 | |||
Gain (Loss) on Sale of Properties | $ 971 | |||
Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 291,902 | 296,078 | ||
Land, buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 28,088 | 33,054 | ||
Furniture and fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 9,866 | 9,898 | ||
Leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 8,087 | 9,023 | ||
Capitalized Software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 13,787 | $ 3,509 |
Intangibles (Narrative) (Detail
Intangibles (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization expense | $ 276,000 |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible assets, useful life | 1 year |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible assets, useful life | 10 years |
Weighted Average | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible assets, useful life | 8 years |
Intangibles (Intangible Table)
Intangibles (Intangible Table) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | $ 96,743 | $ 91,638 |
Accumulated Amortization | 68,973 | 65,191 |
Customer lists | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 54,267 | 51,108 |
Accumulated Amortization | 54,267 | 51,108 |
Developed technology | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 7,918 | 7,483 |
Accumulated Amortization | 7,150 | 6,642 |
Patents | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 5,514 | 5,521 |
Accumulated Amortization | 5,514 | 5,521 |
License agreements | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 2,864 | 2,884 |
Accumulated Amortization | 891 | 770 |
Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | 1,161 | 1,163 |
Accumulated Amortization | 1,151 | 1,150 |
Trademarks | ||
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | ||
Historical Cost | $ 25,019 | $ 23,479 |
Intangibles (Finite-Lived Intan
Intangibles (Finite-Lived Intangible Asset Future Amortization Expense) (Details) | Sep. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Future amortization expense, remainder of fiscal year | $ 419,000 |
Future amortization expense, 2021 | 390,000 |
Future amortization expense, 2022 | 390,000 |
Future amortization expense, 2023 | 389,000 |
Future amortization expense, 2024 | 355,000 |
Future amortization expense, 2025 | $ 212,000 |
Accrued Expenses Components of
Accrued Expenses Components of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Salaries and wages | $ 34,612 | $ 29,725 |
Taxes other than income taxes, primarily Value Added Taxes | 29,830 | 22,194 |
Warranty | 11,144 | 11,626 |
Professional | 8,481 | 6,869 |
Severance | 5,988 | 7,023 |
Interest | 4,663 | 3,608 |
Rebates | 4,146 | 10,743 |
IT service contracts | 3,790 | 6,125 |
Freight | 3,710 | 3,744 |
Deferred revenue | 3,436 | 3,173 |
Derivative liabilities (foreign currency forward exchange contracts) | 2,824 | 905 |
Product liability, current portion | 2,810 | 2,736 |
Insurance | 781 | 699 |
Rent | 568 | 415 |
Supplemental Executive Retirement Program liability | 391 | 391 |
Advance payment on sale of land & buildings | 0 | 3,471 |
IT licenses | 0 | 2,114 |
Other items, principally trade accruals | 7,492 | 5,386 |
Accrued expenses | $ 124,666 | $ 120,947 |
Accrued Expenses Warranty Sched
Accrued Expenses Warranty Schedule (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Product Liability Contingency | ||
Balance as of January 1, 2020 | $ 11,626 | |
Warranties provided during the period | 4,311 | |
Settlements made during the period | (5,926) | |
Changes in liability for pre-existing warranties during the period, including expirations | 1,133 | |
Balance as of September 30, 2020 | $ 11,144 | $ 11,144 |
Extended Product Warranty Accrual, Increase for Warranties Issued | $ 768 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2017 | Mar. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 242,264,000 | $ 219,522,000 | ||
Long-term Debt and Capital Lease Obligations, Current | (4,062,000) | (58,000) | ||
Long-term debt net of current maturities | 238,202,000 | 219,464,000 | ||
Accretion Expense | $ 1,016,000 | |||
Accretion Rate | 4.70% | |||
CARES Act Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percent) | 1.00% | |||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,250,000 | 61,091,000 | $ 150,000,000 | |
Long-term debt | 1,224,000 | 56,628,000 | ||
Debt Instrument, Unamortized Discount | (22,000) | (3,916,000) | ||
Debt Instrument, Fee Amount | (4,000) | (547,000) | ||
Debt Instrument, Net Carrying Amount | $ 1,224,000 | 56,628,000 | ||
Interest rate (as a percent) | 5.00% | |||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 81,500,000 | 120,000,000 | $ 120,000,000 | |
Long-term debt | 72,652,000 | 101,815,000 | ||
Debt Instrument, Unamortized Discount | (7,837,000) | (16,027,000) | ||
Debt Instrument, Fee Amount | (1,011,000) | (2,158,000) | ||
Debt Instrument, Net Carrying Amount | $ 72,652,000 | 101,815,000 | ||
Interest rate (as a percent) | 4.50% | |||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% November 2024 [Domain] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 62,443,000 | 60,817,000 | ||
Convertible Subordinated Debt | Series II Convertible Senior Notes at 5.00% November 2024 [Domain] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 63,556,000 | 0 | ||
Other Notes and Capital Lease Obligations | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 42,389,000 | $ 262,000 |
Long-Term Debt Components of Co
Long-Term Debt Components of Convertible Debt (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2017 | Mar. 31, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||||||
Issuance of warrants | $ 12,376,000 | ||||||
Long-term debt | $ 242,264,000 | $ 219,522,000 | $ 242,264,000 | ||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Increase, Accrued Interest | 241,000 | $ 1,834,000 | 1,617,000 | $ 5,584,000 | |||
Debt Instrument, Face Amount | $ 1,250,000 | 61,091,000 | $ 150,000,000 | $ 1,250,000 | |||
Interest rate (as a percent) | 5.00% | 5.00% | |||||
Unamortized discount | $ (22,000) | (3,916,000) | $ (22,000) | ||||
Long-term debt | 1,224,000 | 56,628,000 | 1,224,000 | ||||
Debt fees | (4,000) | (547,000) | (4,000) | ||||
Debt Instrument, Net Carrying Amount | 1,224,000 | 56,628,000 | 1,224,000 | ||||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Increase, Accrued Interest | 917,000 | $ 1,350,000 | 3,487,000 | $ 4,050,000 | |||
Debt Instrument, Face Amount | $ 81,500,000 | 120,000,000 | $ 120,000,000 | $ 81,500,000 | |||
Issuance of warrants | $ 14,100,000 | ||||||
Interest rate (as a percent) | 4.50% | 4.50% | |||||
Unamortized discount | $ (7,837,000) | (16,027,000) | $ (7,837,000) | ||||
Long-term debt | 72,652,000 | 101,815,000 | 72,652,000 | ||||
Debt fees | (1,011,000) | (2,158,000) | (1,011,000) | ||||
Debt Instrument, Net Carrying Amount | 72,652,000 | 101,815,000 | 72,652,000 | ||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% November 2024 [Domain] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 62,443,000 | 60,817,000 | 62,443,000 | ||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% November 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Increase, Accrued Interest | 912,000 | 2,735,000 | |||||
Debt Instrument, Loss on Exchange | 5,885,000 | ||||||
Debt Instrument, Face Amount | $ 72,909,000 | $ 72,909,000 | $ 72,909,000 | ||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | ||||
Unamortized discount | $ (9,363,000) | $ (10,733,000) | $ (9,363,000) | ||||
Debt fees | (1,103,000) | (1,359,000) | (1,103,000) | ||||
Debt Instrument, Net Carrying Amount | $ 62,443,000 | $ 60,817,000 | $ 62,443,000 |
Long-Term Debt Narrative (Detai
Long-Term Debt Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2017 | Mar. 31, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | May 15, 2020 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||||||||
Issuance of warrants | $ 12,376,000 | |||||||||
Payments for Repurchase of Common Stock | $ 1,702,000 | $ 860,000 | ||||||||
Amortization of debt fees | 1,329,000 | 1,860,000 | ||||||||
Loss on debt extinguishment including debt finance charges and fees | $ 761,000 | $ 280,000 | $ 7,360,000 | 280,000 | ||||||
CARES Act Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate (as a percent) | 1.00% | 1.00% | ||||||||
Unsecured Debt | $ 10,000,000 | |||||||||
Unsecured Debt, Current | $ 2,816,000 | $ 2,816,000 | ||||||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% November 2024 [Domain] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Convertible, Threshold Trading Days | 10 | |||||||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% November 2024 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Fee Amount | $ 1,394,000 | |||||||||
Debt Instrument, Face Amount | $ 72,909,000 | $ 72,909,000 | $ 72,909,000 | |||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | |||||||
Debt Instrument Repurchase Amount, Cash Paid | $ 6,928,000 | |||||||||
Last Reported Sales Price Period, Common Stock | 20 days | |||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 | |||||||||
Percent of the Applicable Conversion Price | 130.00% | 130.00% | ||||||||
Business Day Period | 5 years | |||||||||
Percent of the Product of the Last Reported Sale Price, Common Shares | 98.00% | 98.00% | ||||||||
Convertible Senior Notes, Percentage of Principal Required for Repurchase | 100.00% | 100.00% | ||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 67.6819 | 67.6819 | ||||||||
Convertible Debt, Conversion Rate of Commmon Shares, Principal | $ 1,000 | $ 1,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 14.78 | $ 14.78 | ||||||||
Debt Instrument, Net Carrying Amount | $ 62,443,000 | 60,817,000 | $ 62,443,000 | |||||||
Debt Instrument, Fee Amount | (1,103,000) | (1,359,000) | (1,103,000) | |||||||
Debt Instrument, Unamortized Discount | $ (9,363,000) | (10,733,000) | $ (9,363,000) | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.77% | 8.77% | ||||||||
Debt Instrument, Non-Cash Interest Expense Recognized in the Period | $ 468,000 | $ 1,370,000 | ||||||||
Debt Instrument, Increase, Accrued Interest | 912,000 | 2,735,000 | ||||||||
Debt Instrument, Loss on Exchange | 5,885,000 | |||||||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Fee Amount | $ 5,966,000 | |||||||||
Debt Instrument, Face Amount | $ 1,250,000 | 61,091,000 | $ 150,000,000 | $ 1,250,000 | ||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||||
Debt Instrument Exchange Amount | $ 35,375,000 | 72,909,000 | ||||||||
Debt Instrument, Repurchase Amount | $ 24,466,000 | 16,000,000 | $ 24,466,000 | 16,000,000 | ||||||
Last Reported Sales Price Period, Common Stock | 20 days | |||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 | |||||||||
Percent of the Applicable Conversion Price | 130.00% | 130.00% | ||||||||
Business Day Period | 5 years | |||||||||
Debt Instrument, Convertible, Threshold Trading Days | 10 | |||||||||
Percent of the Product of the Last Reported Sale Price, Common Shares | 98.00% | 98.00% | ||||||||
Convertible Senior Notes, Percentage of Principal Required for Repurchase | 100.00% | 100.00% | ||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 60.0492 | 60.0492 | ||||||||
Convertible Debt, Conversion Rate of Commmon Shares, Principal | $ 1,000 | $ 1,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 16.65 | $ 16.65 | ||||||||
Convertible Debt Conversion Feature, Fair Value at Issuance | $ 34,480,000 | $ 34,480,000 | ||||||||
Convertible Debt Conversion Feature Gain (Loss) | 0 | 0 | 0 | 2,210,000 | ||||||
Convertible due 2021 - Bond Hedge, Fair Value at Issuance | 27,975,000 | 27,975,000 | ||||||||
Convertible Debt Note Hedge Gain (Loss) | 0 | 0 | 0 | 2,852,000 | ||||||
Derivative, Price Risk Option Strike Price | $ 22.4175 | |||||||||
Debt Instrument, Net Proceeds | 144,034,000 | |||||||||
Debt Instrument, Net Carrying Amount | 1,224,000 | 56,628,000 | 1,224,000 | |||||||
Debt Instrument, Fee Amount | (4,000) | (547,000) | (4,000) | |||||||
Payments for Repurchase of Common Stock | $ 5,000,000 | |||||||||
Derivative, Amount of Hedged Item | $ (15,600,000) | |||||||||
Debt Instrument, Unamortized Discount | $ (22,000) | (3,916,000) | $ (22,000) | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 11.10% | 11.10% | ||||||||
Debt Instrument, Non-Cash Interest Expense Recognized in the Period | $ 261,000 | 1,444,000 | $ 1,767,000 | 5,391,000 | ||||||
Debt Instrument, Increase, Accrued Interest | 241,000 | 1,834,000 | 1,617,000 | 5,584,000 | ||||||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Fee Amount | $ 4,711,000 | |||||||||
Debt Instrument, Face Amount | $ 81,500,000 | 120,000,000 | 120,000,000 | $ 81,500,000 | ||||||
Interest rate (as a percent) | 4.50% | 4.50% | ||||||||
Debt Instrument Exchange Amount | 38,500,000 | |||||||||
Last Reported Sales Price Period, Common Stock | 20 days | |||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 | |||||||||
Percent of the Applicable Conversion Price | 130.00% | 130.00% | ||||||||
Business Day Period | 5 years | |||||||||
Debt Instrument, Convertible, Threshold Trading Days | 10 | |||||||||
Percent of the Product of the Last Reported Sale Price, Common Shares | 98.00% | 98.00% | ||||||||
Convertible Senior Notes, Percentage of Principal Required for Repurchase | 100.00% | 100.00% | ||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 61.6095 | 61.6095 | ||||||||
Convertible Debt, Conversion Rate of Commmon Shares, Principal | $ 1,000 | $ 1,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 16.23 | $ 16.23 | ||||||||
Convertible Debt Conversion Feature, Fair Value at Issuance | 28,859,000 | |||||||||
Convertible Debt Conversion Feature Gain (Loss) | $ 0 | 0 | $ 0 | 6,193,000 | ||||||
Convertible due 2022 - Bond Hedge, Fair Value at Issuance | 24,780,000 | $ 24,780,000 | 24,780,000 | |||||||
Convertible Debt Note Hedge Gain (Loss) | 0 | 0 | 0 | 6,748,000 | ||||||
Derivative, Price Risk Option Strike Price | $ 21.4375 | |||||||||
Issuance of warrants | $ 14,100,000 | |||||||||
Debt Instrument, Net Proceeds | 115,289,000 | |||||||||
Debt Instrument, Net Carrying Amount | 72,652,000 | 101,815,000 | 72,652,000 | |||||||
Debt Instrument, Fee Amount | (1,011,000) | (2,158,000) | (1,011,000) | |||||||
Derivative, Amount of Hedged Item | $ (10,680,000) | |||||||||
Debt Instrument, Unamortized Discount | $ (7,837,000) | $ (16,027,000) | $ (7,837,000) | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 10.90% | 10.90% | ||||||||
Debt Instrument, Non-Cash Interest Expense Recognized in the Period | $ 1,046,000 | 1,320,000 | $ 3,829,000 | 4,038,000 | ||||||
Debt Instrument, Increase, Accrued Interest | 917,000 | $ 1,350,000 | 3,487,000 | $ 4,050,000 | ||||||
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 5.00% February 2021 [Domain] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unamortized Financing Costs | 670,000 | |||||||||
Convertible Subordinated Debt | Series II Convertible Senior Notes at 5.00% November 2024 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Fee Amount | 1,518,000 | |||||||||
Debt Instrument, Face Amount | $ 74,891,000 | $ 74,891,000 | ||||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||||
Debt Instrument Exchange Amount | 73,875,000 | |||||||||
Debt Instrument Repurchase Amount, Cash Paid | $ 5,593,000 | $ 5,593,000 | ||||||||
Last Reported Sales Price Period, Common Stock | 20 days | |||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 30 | |||||||||
Percent of the Applicable Conversion Price | 130.00% | 130.00% | ||||||||
Debt Instrument, Convertible, Threshold Trading Days | 10 | |||||||||
Percent of the Product of the Last Reported Sale Price, Common Shares | 98.00% | 98.00% | ||||||||
Convertible Senior Notes, Percentage of Principal Required for Repurchase | 100.00% | 100.00% | ||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 67.6819 | 67.6819 | ||||||||
Convertible Debt, Conversion Rate of Commmon Shares, Principal | $ 1,000 | $ 1,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 14.78 | $ 14.78 | ||||||||
Debt Instrument, Net Carrying Amount | $ 63,556,000 | $ 63,556,000 | ||||||||
Debt Instrument, Fee Amount | (1,368,000) | (1,368,000) | ||||||||
Debt Instrument, Unamortized Discount | $ (9,967,000) | $ (9,967,000) | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.99% | 8.99% | ||||||||
Debt Instrument, Non-Cash Interest Expense Recognized in the Period | $ 1,260,000 | $ 1,663,000 | ||||||||
Debt Instrument, Increase, Accrued Interest | $ 923,000 | $ 1,200,000 | ||||||||
Debt Instrument, Loss on Exchange | $ 6,599,000 | |||||||||
Convertible Subordinated Debt | Series II Convertible Senior Notes at 5.00% November 2024 [Domain] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Business Day Period | 5 years | |||||||||
Revolving Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted average interest rate (as a percent) | 4.63% | 4.78% | 4.63% | |||||||
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing capacity | $ 30,000,000 | $ 30,000,000 | ||||||||
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Trade Receivables, Europe, Percent | 85.00% | |||||||||
Minimum availability reserve | 3,000,000 | $ 3,000,000 | ||||||||
Line of Credit Facility, Covenant Feature, Dominion Trigger | 3,750,000 | 3,750,000 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 8,564,000 | 8,564,000 | ||||||||
Remaining borrowing capacity | $ 10,000,000 | $ 10,000,000 | ||||||||
Minimum required undrawn balance (as a percent) | 11.25% | 11.25% | ||||||||
Consecutive business days for minimum undrawn balance | 5 days | |||||||||
Required undrawn balance, minimum | $ 3,000,000 | $ 3,000,000 | ||||||||
Interruption of material manufacturing facilities, period | 10 days | |||||||||
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 23,700,000 | $ 23,700,000 | ||||||||
Borrowing capacity | 60,000,000 | 60,000,000 | ||||||||
Additional increase in borrowing capacity available | 25,000,000 | $ 25,000,000 | ||||||||
Percentage of domestic accounts receivable | 85.00% | |||||||||
Percentage of eligible domestic inventory and in-transit inventory | 70.00% | |||||||||
Percentage of net orderly liquidation value of domestic inventory | 85.00% | |||||||||
Maximum value of net orderly liquidation value domestic inventory and in-transit inventory | 4,000,000 | $ 4,000,000 | ||||||||
Net orderly liquidation value of domestic eligible machinery and equipment | 85.00% | |||||||||
Additional amount of machinery and equipment | 0 | $ 0 | ||||||||
Percentage of eligible Canadian accounts receivable | 85.00% | |||||||||
Percentage of eligible Canadian inventory | 70.00% | |||||||||
Percentage of net orderly liquidation value of eligible Canadian inventory | 85.00% | |||||||||
Minimum availability reserve | 3,000,000 | $ 3,000,000 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | 23,700,000 | 23,700,000 | ||||||||
Line of Credit Facility, Covenant Feature, Dominion Trigger | $ 7,500,000 | $ 7,500,000 | ||||||||
Minimum required undrawn balance (as a percent) | 11.25% | 11.25% | ||||||||
Line of Credit, Covenant Compliance, Consecutive Business Days for Undrawn_Balance | 5 days | |||||||||
Required undrawn balance, minimum | $ 6,000,000 | $ 6,000,000 | ||||||||
Interruption of material manufacturing facilities, period | 10 days | |||||||||
Line of Credit Facility, Foreign Currency Fair Value of Amount Outstanding (France) | 6,322,000 | $ 6,322,000 | ||||||||
Line of Credit Facility, Foreign Currency Fair Value of Amount Outstanding (UK) | 2,138,000 | 2,138,000 | ||||||||
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | Euro Member Countries, Euro | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Foreign Currency Fair Value of Amount Outstanding (France) | 5,300,000 | 5,300,000 | ||||||||
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | United Kingdom, Pounds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Foreign Currency Fair Value of Amount Outstanding (UK) | 1,600,000 | 1,600,000 | ||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 7,653,000 | $ 8,827,000 | 7,653,000 | |||||||
Letters of Credit Outstanding, Amount | 7,740,000 | $ 8,011,000 | 7,740,000 | |||||||
Letter of Credit | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing capacity | 5,000,000 | 5,000,000 | ||||||||
Letter of Credit | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing capacity | 20,000,000 | 20,000,000 | ||||||||
Swing Line Loans | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing capacity | 2,000,000 | 2,000,000 | ||||||||
Amount Available to Invacare Limited and Invacare Poirier SAS | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowing capacity | $ 15,000,000 | $ 15,000,000 | ||||||||
Minimum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.25% | |||||||||
Minimum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.25% | |||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.50% | |||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.25% | |||||||||
Minimum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.50% | |||||||||
Minimum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.25% | |||||||||
Maximum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.375% | |||||||||
Maximum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.375% | |||||||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 3.00% | |||||||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.75% | |||||||||
Maximum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 3.00% | |||||||||
Maximum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% |
Long-Term Debt Sale Leaseback T
Long-Term Debt Sale Leaseback Transactions (Details) | Apr. 23, 2015USD ($) |
Sale Leaseback Transaction [Line Items] | |
Sale Leaseback Transaction, Deferred Gain, Gross | $ 7,414,000 |
Other Long-Term Obligations (De
Other Long-Term Obligations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Apr. 23, 2015 | |
Other Liabilities Disclosure [Abstract] | ||||||
Deferred income taxes | $ 24,223,000 | $ 24,223,000 | $ 23,376,000 | |||
Product liability | 13,545,000 | 13,545,000 | 13,414,000 | |||
Pension | 7,586,000 | 7,586,000 | 7,006,000 | |||
Deferred gain on sale leaseback | 5,582,000 | 5,582,000 | 5,819,000 | |||
Deferred compensation | 5,318,000 | 5,318,000 | 5,354,000 | |||
Supplemental Executive Retirement Plan liability | 5,245,000 | 5,245,000 | 5,433,000 | |||
Uncertain tax obligation including interest | 2,660,000 | 2,660,000 | 2,612,000 | |||
Other | 6,589,000 | 6,589,000 | 3,935,000 | |||
Other Long-Term Obligations | 70,748,000 | 70,748,000 | $ 66,949,000 | |||
Sale Leaseback Transaction, Deferred Gain, Gross | $ 7,414,000 | |||||
Sale Leaseback Transaction, Current Period Gain Recognized | $ 77,000 | $ 74,000 | $ 228,000 | $ 220,000 |
Leases and Commitments (Details
Leases and Commitments (Details) - USD ($) | Apr. 23, 2015 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2015 | Sep. 30, 2020 | Sep. 30, 2019 | Jul. 01, 2020 |
Lessee, Lease, Description [Line Items] | |||||||
Finance Lease, Liability | $ 36,916,000 | ||||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | $ 23,000,000 | ||||||
Sale Leaseback Transaction, Annual Rental Payments | $ 2,275,000 | ||||||
Sale Leaseback Transaction, Lease Terms | Each of the four lease agreements contains three 10-year renewals with the rent for each option term based on the greater of the then-current fair market rent for each property or the then- current rate and increasing annually by the applicable CPI. Under the terms of the lease agreements, the company is responsible for all taxes, insurance and utilities. The company is permitted to sublet the properties; however, the properties are currently being utilized exclusively by the company and there is no current subletting. The company is required to adequately maintain each of the properties and any leasehold improvements will be amortized over the lesser of the lives of the improvements or the remaining lease lives, consistent with any other company leases. | ||||||
Sale Leaseback Transaction, Deferred Gain, Gross | $ 7,414,000 | ||||||
Sale Leaseback Transaction, Immediate Loss Recognized | 257,000 | ||||||
Capital Lease Obligations | $ 32,339,000 | ||||||
Sale Leaseback Transaction, Current Period Gain Recognized | $ 77,000 | $ 74,000 | $ 228,000 | $ 220,000 | |||
Minimum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
General Lease Term | 1 year | ||||||
Maximum | |||||||
Lessee, Lease, Description [Line Items] | |||||||
General Lease Term | 20 years |
Leases and Commitments Lease Ex
Leases and Commitments Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating Lease, Expense | $ 1,926 | $ 2,696 | $ 6,210 | $ 8,175 |
Short-term Lease, Cost | 1,077 | 894 | 2,936 | 1,974 |
Operating Lease, Cost | 3,003 | 3,590 | 9,146 | 10,149 |
Finance Lease, Interest Expense | 829 | 346 | 1,483 | 977 |
Finance Lease, Right-of-Use Asset, Amortization | 980 | 706 | 2,346 | 1,957 |
Financing Lease, Cost | $ 1,809 | $ 1,052 | $ 3,829 | $ 2,934 |
Leases and Commitments Future M
Leases and Commitments Future Minimum Operating and Financing Lease Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Finance Lease, Liability, Payments, Due Next Twelve Months | $ 1,873 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 1,842 | |
Finance Lease, Liability, Payments, Due Year Two | 7,416 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 6,027 | |
Finance Lease, Liability, Payments, Due Year Three | 6,487 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 3,466 | |
Finance Lease, Liability, Payments, Due Year Four | 6,421 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 1,407 | |
Finance Lease, Liability, Payments, Due Year Five | 6,365 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 890 | |
Finance Lease, Liability, Payments, Due after Year Five | 84,251 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 786 | |
Finance Lease, Liability, Payments, Due | 112,813 | |
Operating Leases, Future Minimum Payments Due | 14,418 | |
Financing Leases, Future Minimum Payments, Interest Included in Payments | (45,511) | |
Operating Leases, Future Minimum Payments, Interest Included in Payments | (1,393) | |
Financing Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 67,302 | |
Operating Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 13,025 | |
Finance Lease, Liability, Current | (3,352) | $ (2,514) |
Operating Lease, Liability, Current | (5,843) | (6,790) |
Financing Lease Liability, non-current | 63,950 | |
Operating Leases Long-Term Obligations | $ 7,182 | $ 12,060 |
Leases and Commitments Suppleme
Leases and Commitments Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating Leases, Cash Paid in Measurement of Amounts for Lease Liabilities | $ 9,407 |
Financing Leases, Cash Paid in Measurement of Amounts for Lease Liabilities | 3,429 |
Total Cash Paid in Measurement of Amounts for Lease Liabilities | 12,836 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 2,789 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 39,942 |
Right-of-Use Asset Obtained in Exchange for Total Lease Liability | $ 42,731 |
Leases and Commitments Weighted
Leases and Commitments Weighted-Average Remaining Lease Terms and Discount Rates (Details) | Sep. 30, 2020 |
Leases [Abstract] | |
Finance Lease, Weighted Average Remaining Lease Term | 17 years 2 months 12 days |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 2 months 12 days |
Finance Lease, Weighted Average Discount Rate, Percent | 6.32% |
Operating Lease, Weighted Average Discount Rate, Percent | 7.74% |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 211,906,000 | $ 235,774,000 | $ 626,646,000 | $ 695,051,000 | |
Net Revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Deferred Revenue | $ 3,436,000 | $ 3,436,000 | $ 3,173,000 | ||
Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 207,292,000 | $ 230,647,000 | $ 613,507,000 | $ 679,956,000 | |
Net Revenue | 98.00% | 98.00% | 98.00% | 98.00% | |
Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 4,614,000 | $ 5,127,000 | $ 13,139,000 | $ 15,095,000 | |
Net Revenue | 2.00% | 2.00% | 2.00% | 2.00% | |
Europe | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 116,285,000 | $ 137,371,000 | $ 339,147,000 | $ 396,206,000 | |
Europe | Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 113,043,000 | 133,839,000 | 329,943,000 | 386,007,000 | |
Europe | Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 3,242,000 | 3,532,000 | 9,204,000 | 10,199,000 | |
North America | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 88,055,000 | 87,118,000 | 261,595,000 | 262,915,000 | |
North America | Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 87,821,000 | 86,761,000 | 260,999,000 | 261,707,000 | |
North America | Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 234,000 | 357,000 | 596,000 | 1,208,000 | |
Asia/Pacific | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 7,566,000 | 11,285,000 | 25,904,000 | 35,930,000 | |
Asia/Pacific | Product | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | 6,428,000 | 10,047,000 | 22,565,000 | 32,242,000 | |
Asia/Pacific | Service | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Net Sales | $ 1,138,000 | $ 1,238,000 | $ 3,339,000 | $ 3,688,000 | |
General Terms and Conditions | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Contract Type Sales Split | 31.00% | ||||
Large National Customers | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Contract Type Sales Split | 26.00% | ||||
Government Tenders | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Contract Type Sales Split | 20.00% | ||||
Other Customers | |||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||||
Contract Type Sales Split | 23.00% |
Equity Compensation (Narrative)
Equity Compensation (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2020shares | Sep. 30, 2020votes$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.25 | ||
Share Based Compensation Arrangement By Share Based Payment Award Performance Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Description | The 2018 Plan uses a fungible share-counting method, under which each Common Share underlying an award of share options or share appreciation rights ("SAR") will count against the number of total shares available under the 2018 Plan as one share; and each Common Share underlying any award other than a share option or a SAR will count against the number of total shares available under the 2018 Plan as two shares. Shares underlying awards made under the 2003 Plan or 2013 Plan that are forfeited or remain unpurchased or undistributed upon termination or expiration of the awards will become available under the 2018 Plan for use in future awards. Any Common Shares that are added back to the 2018 Plan as the result of forfeiture, termination or expiration of an award granted under the 2018 Plan or the 2013 Plan will be added back in the same manner such shares were originally counted against the total number of shares available under the 2018 Plan or 2013 Plan, as applicable. Each Common Share that is added back to the 2018 Plan due to a forfeiture, termination or expiration of an award granted under the 2003 Plan will be added back as one Common Share. | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net award activity (in shares) | 696,058 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net award activity (in shares) | 1,859,054 | ||
Award requisite service period | 3 years | ||
Performance achievement level, lower range | 0.00% | ||
Performance achievement level, upper range | 150.00% | ||
Performance achievement level, target range | 100.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | [1] | 3,513,468 | |
2013 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Share Awards Underlying from 2003 Plan | 328,274 | ||
2018 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,400,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Transferred from Prior Plans | 1,004,079 | ||
Weighted Average | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period for recognition of unrecognized compensation costs | 3 years | ||
Class B Common Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Number of Votes | votes | 10 | ||
Common Stock, Difference in Dividend Rate | 10.00% | ||
Common Stock, Shares, Issued | 6,357 | ||
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, Holders Percentage of Total Outstanding | 99.90% | ||
[1] | * Shares available for grant under the 2018 Plan as of September 30, 2020 reduced by net restricted share and restricted share unit award activity of 696,058 shares and performance share and performance share unit award activity of 1,859,054 shares. |
Equity Compensation Share-based
Equity Compensation Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 818 | $ 649 | $ 2,494 | $ 1,300 |
Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | 6,965 | 5,873 | ||
Restricted Stock and Restricted Stock Units (RSUs) | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | 4,471 | 3,891 | ||
Performance Shares | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | 2,494 | 1,648 | ||
Stock Options | Selling, General and Administrative Expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 0 | $ 334 |
Equity Compensation Unrecognize
Equity Compensation Unrecognized Compensation Expense (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 19,587 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 11,144 |
Restricted Stock and Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 8,443 |
Equity Compensation (Options Ac
Equity Compensation (Options Activity) (Details) | 9 Months Ended | |
Sep. 30, 2020$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding at beginning of period (in shares) | shares | 1,441,202 | |
Canceled (in shares) | shares | (354,006) | |
Options outstanding at end of period (in shares) | shares | 1,087,196 | |
Weighted Average Exercise Price | ||
Options outstanding at beginning of period - Weighted Average Exercise Price (in dollars per share) | $ 18.26 | |
Canceled - Weighted Average Exercise Price (in dollars per share) | 24.88 | |
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share) | $ 16.12 | |
Options exercisable at end of period (in shares) | shares | 1,087,196 | |
Stock Options | ||
Weighted Average Exercise Price | ||
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share) | $ 16.12 | |
Options available for grant at end of period (in shares) | shares | 3,513,468 | [1] |
$12.15 – $20.00 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | $ 12.15 | |
$12.15 – $20.00 | Stock Options | ||
Weighted Average Exercise Price | ||
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share) | 12.74 | |
$30.01 – $33.36 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, upper limit (in dollars per share) | 33.36 | |
$30.01 – $33.36 | Stock Options | ||
Weighted Average Exercise Price | ||
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share) | $ 33.36 | |
[1] | * Shares available for grant under the 2018 Plan as of September 30, 2020 reduced by net restricted share and restricted share unit award activity of 696,058 shares and performance share and performance share unit award activity of 1,859,054 shares. |
Equity Compensation (Stock Opti
Equity Compensation (Stock Options Outstanding by Exercise Price) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 16.12 | $ 18.26 |
$12.15 – $20.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | 12.15 | |
$12.15 – $20.00 | Minimum | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, upper limit (in dollars per share) | 12.15 | |
$12.15 – $20.00 | Maximum | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, upper limit (in dollars per share) | 20 | |
$20.01 – $25.00 | Minimum | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, upper limit (in dollars per share) | 20.01 | |
$20.01 – $25.00 | Maximum | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, upper limit (in dollars per share) | 25 | |
$25.01 – $30.00 | Minimum | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | 25.01 | |
$25.01 – $30.00 | Maximum | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit (in dollars per share) | 30 | |
$30.01 – $33.36 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, upper limit (in dollars per share) | 33.36 | |
$30.01 – $33.36 | Minimum | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, upper limit (in dollars per share) | 30.01 | |
$30.01 – $33.36 | Maximum | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, upper limit (in dollars per share) | $ 33.36 | |
Stock Options | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 1,087,196 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 3 years 10 months 24 days | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 16.12 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 1,087,196 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 16.12 | |
Stock Options | $12.15 – $20.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 777,159 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 5 years 1 month 6 days | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 12.74 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 777,159 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 12.73 | |
Stock Options | $20.01 – $25.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 300,149 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 10 months 24 days | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 24.45 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 300,149 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 24.45 | |
Stock Options | $25.01 – $30.00 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 5,392 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 2 months 12 days | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 27.82 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 5,392 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 27.82 | |
Stock Options | $30.01 – $33.36 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding - Number Outstanding at end of period (in shares) | 4,496 | |
Options Outstanding - Weighted Average Remaining Contractual Life | 7 months 6 days | |
Options Outstanding - Weighted Average Exercise Price (in dollars per share) | $ 33.36 | |
Options Exercisable - Number Exercisable At end of period (in shares) | 4,496 | |
Options Exercisable - Weighted Average Exercise Price (in dollars per share) | $ 33.36 |
Equity Compensation Restricted
Equity Compensation Restricted Stock Activity (Details) - Restricted Stock and Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | shares | 965,085 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 764,012 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | (452,922) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | (94,993) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | shares | 1,181,182 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 11.32 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 7.11 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | 11.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | 10.19 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 8.63 |
Equity Compensation Performance
Equity Compensation Performance Share Activity (Details) - Performance Shares - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,210,625 | 753,272 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 9.90 | $ 11.82 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 523,329 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.08 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (65,976) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 9.48 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) by Component (Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 4,648 | $ 9,771 | $ 3,128 | $ 12,793 |
OCI before reclassifications | 33,724 | (9,004) | 35,641 | (11,784) |
Amount reclassified from accumulated OCI | 265 | (557) | (132) | (799) |
Other Comprehensive Income (Loss) | 33,989 | (9,561) | 35,509 | (12,583) |
Ending Balance | 38,637 | 210 | 38,637 | 210 |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 16,455 | 13,122 | 8,898 | 12,244 |
OCI before reclassifications | 35,231 | (5,729) | 42,788 | (4,851) |
Amount reclassified from accumulated OCI | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 35,231 | (5,729) | 42,788 | (4,851) |
Ending Balance | 51,686 | 7,393 | 51,686 | 7,393 |
Accumulated Long-Term Notes Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (9,133) | (2,200) | (2,491) | 2,662 |
OCI before reclassifications | 713 | (3,328) | (5,929) | (8,190) |
Amount reclassified from accumulated OCI | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss) | 713 | (3,328) | (5,929) | (8,190) |
Ending Balance | (8,420) | (5,528) | (8,420) | (5,528) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | (3,468) | (2,778) | (3,299) | (2,703) |
OCI before reclassifications | 281 | (504) | 122 | (922) |
Amount reclassified from accumulated OCI | (474) | 303 | (484) | 646 |
Other Comprehensive Income (Loss) | (193) | (201) | (362) | (276) |
Ending Balance | (3,661) | (2,979) | (3,661) | (2,979) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning Balance | 794 | 1,627 | 20 | 590 |
OCI before reclassifications | (2,501) | 557 | (1,340) | 2,179 |
Amount reclassified from accumulated OCI | 739 | (860) | 352 | (1,445) |
Other Comprehensive Income (Loss) | (1,762) | (303) | (988) | 734 |
Ending Balance | $ (968) | $ 1,324 | $ (968) | $ 1,324 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) by Component (Reclassified Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Products Sold | $ (151,866) | $ (168,189) | $ (446,968) | $ (500,945) |
Amortization of prior service costs and unrecognized gains | (55,530) | (63,539) | (174,672) | (197,035) |
Income tax provision | (2,050) | (3,300) | (4,900) | (7,325) |
Net Sales | (211,906) | (235,774) | (626,646) | (695,051) |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of prior service costs and unrecognized gains | (474) | 303 | (484) | 646 |
Income tax provision | 0 | 0 | 0 | 0 |
Net loss from Continuing Operations | (474) | 303 | (484) | 646 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes | 778 | (944) | 337 | (1,564) |
Income tax provision | (39) | 84 | 15 | 119 |
Net loss from Continuing Operations | 739 | (860) | 352 | (1,445) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency forward contracts | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of Products Sold | 1,259 | (747) | 1,029 | (1,375) |
Net Sales | $ (481) | $ (197) | $ (692) | $ (189) |
Charges Related To Restructur_3
Charges Related To Restructuring Activities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | $ 6,018,000 | $ 6,549,000 | $ 7,027,000 | $ 7,027,000 | ||
Charges | 1,580,000 | 1,685,000 | 1,392,000 | $ 1,628,000 | 4,657,000 | $ 3,641,000 |
Payments | (1,606,000) | (2,216,000) | (1,870,000) | (5,692,000) | (4,152,000) | |
Ending Balance | 5,992,000 | 6,018,000 | 6,549,000 | 5,992,000 | ||
Severance | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 6,014,000 | 6,545,000 | 7,023,000 | 7,023,000 | ||
Charges | 1,580,000 | 1,412,000 | 1,319,000 | |||
Payments | (1,606,000) | (1,943,000) | (1,797,000) | |||
Ending Balance | 5,988,000 | 6,014,000 | 6,545,000 | 5,988,000 | ||
Contract Termination | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 4,000 | 4,000 | 4,000 | 4,000 | ||
Charges | 0 | 273,000 | 73,000 | |||
Payments | 0 | (273,000) | (73,000) | |||
Ending Balance | 4,000 | 4,000 | 4,000 | 4,000 | ||
All Other | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 166,000 | 166,000 | 406,000 | 406,000 | ||
Charges | 0 | 82,000 | 36,000 | 34,000 | 118,000 | 199,000 |
Payments | 0 | (82,000) | (276,000) | |||
Ending Balance | 166,000 | 166,000 | 166,000 | 166,000 | ||
All Other | Severance | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 166,000 | 166,000 | 406,000 | 406,000 | ||
Charges | 0 | 82,000 | 36,000 | 199,000 | ||
Payments | 0 | (82,000) | (276,000) | |||
Ending Balance | 166,000 | 166,000 | 166,000 | 166,000 | ||
All Other | Contract Termination | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 0 | 0 | 0 | 0 | ||
Charges | 0 | 0 | 0 | |||
Payments | 0 | 0 | 0 | |||
Ending Balance | 0 | 0 | 0 | 0 | ||
Europe | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 5,749,000 | 6,043,000 | 6,410,000 | 6,410,000 | ||
Charges | 1,434,000 | 1,575,000 | 665,000 | 1,263,000 | 3,674,000 | 1,903,000 |
Payments | (1,455,000) | (1,869,000) | (1,032,000) | |||
Ending Balance | 5,728,000 | 5,749,000 | 6,043,000 | 5,728,000 | ||
Europe | Severance | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 5,745,000 | 6,039,000 | 6,406,000 | 6,406,000 | ||
Charges | 1,434,000 | 1,302,000 | 592,000 | 3,328,000 | 1,903,000 | |
Payments | (1,455,000) | (1,596,000) | (959,000) | |||
Ending Balance | 5,724,000 | 5,745,000 | 6,039,000 | 5,724,000 | ||
Europe | Contract Termination | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 4,000 | 4,000 | 4,000 | 4,000 | ||
Charges | 0 | 273,000 | 73,000 | 346,000 | ||
Payments | 0 | (273,000) | (73,000) | |||
Ending Balance | 4,000 | 4,000 | 4,000 | 4,000 | ||
North America | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 103,000 | 340,000 | 211,000 | 211,000 | ||
Charges | 146,000 | 28,000 | 691,000 | $ 331,000 | 865,000 | 1,539,000 |
Restructuring Reserve, Accrual Adjustment | 146,000 | 865,000 | ||||
Payments | (151,000) | (265,000) | (562,000) | |||
Ending Balance | 98,000 | 103,000 | 340,000 | 98,000 | ||
North America | Severance | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 103,000 | 340,000 | 211,000 | 211,000 | ||
Charges | 146,000 | 28,000 | 691,000 | 1,495,000 | ||
Payments | (151,000) | (265,000) | (562,000) | |||
Ending Balance | 98,000 | 103,000 | 340,000 | 98,000 | ||
North America | Contract Termination | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Balance | 0 | 0 | 0 | 0 | ||
Charges | $ 44,000 | |||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | 0 | |||
Payments | 0 | 0 | 0 | |||
Ending Balance | $ 0 | $ 0 | $ 0 | $ 0 |
Charges Related To Restructur_4
Charges Related To Restructuring Activities Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | $ 1,580,000 | $ 1,685,000 | $ 1,392,000 | $ 1,628,000 | $ 4,657,000 | $ 3,641,000 |
Restructuring and Related Activities, Expected Payout Period | 12 months | |||||
Payments | (1,606,000) | (2,216,000) | (1,870,000) | $ (5,692,000) | (4,152,000) | |
Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 1,580,000 | 1,412,000 | 1,319,000 | |||
Payments | (1,606,000) | (1,943,000) | (1,797,000) | |||
Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 0 | 273,000 | 73,000 | |||
Payments | 0 | (273,000) | (73,000) | |||
North America | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 146,000 | 28,000 | 691,000 | 331,000 | 865,000 | 1,539,000 |
Restructuring Reserve, Accrual Adjustment | 146,000 | 865,000 | ||||
Payments | (151,000) | (265,000) | (562,000) | |||
North America | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 146,000 | 28,000 | 691,000 | 1,495,000 | ||
Payments | (151,000) | (265,000) | (562,000) | |||
North America | Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 44,000 | |||||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | 0 | |||
Payments | 0 | 0 | 0 | |||
Europe | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 1,434,000 | 1,575,000 | 665,000 | 1,263,000 | 3,674,000 | 1,903,000 |
Payments | (1,455,000) | (1,869,000) | (1,032,000) | |||
Europe | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 1,434,000 | 1,302,000 | 592,000 | 3,328,000 | 1,903,000 | |
Payments | (1,455,000) | (1,596,000) | (959,000) | |||
Europe | Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 0 | 273,000 | 73,000 | 346,000 | ||
Payments | 0 | (273,000) | (73,000) | |||
All Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 0 | 82,000 | 36,000 | $ 34,000 | $ 118,000 | 199,000 |
Payments | 0 | (82,000) | (276,000) | |||
All Other | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 0 | 82,000 | 36,000 | $ 199,000 | ||
Payments | 0 | (82,000) | (276,000) | |||
All Other | Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 0 | 0 | 0 | |||
Payments | $ 0 | $ 0 | $ 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Valuation Allowance [Line Items] | ||||
Reversal of Accrued Withholding Taxes on Earnings | $ 988,000 | |||
Effective income tax rate, continuing operations | (39.20%) | (69.60%) | (26.80%) | (26.80%) |
U.S. statutory income tax rate | 21.00% | 21.00% | ||
Effective income tax rate, continuing operations | (39.20%) | (69.60%) | (26.80%) | (26.80%) |
U.S. statutory income tax rate | 21.00% | 21.00% |
Net Earnings (Loss) Per Commo_3
Net Earnings (Loss) Per Common Share Computation of Basic and Diluted Net Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Net Loss per Share—Basic | |||||
Average common shares outstanding | 34,419 | 33,660 | 34,213 | 33,571 | |
Net Loss | $ (7,276) | $ (8,041) | $ (23,163) | $ (34,644) | |
Net earnings (loss) per common share | $ (0.21) | $ (0.24) | $ (0.68) | $ (1.03) | |
Net Loss per Share—Assuming Dilution | |||||
Average common shares outstanding | 34,419 | 33,660 | 34,213 | 33,571 | |
Stock options and awards | 111 | 8 | 100 | 10 | |
Average common shares assuming dilution | 34,530 | 33,668 | 34,313 | 33,581 | |
Net Loss | $ (7,276) | $ (8,041) | $ (23,163) | $ (34,644) | |
Net earnings (loss) per per common share—assuming dilution (in dollars per share) | [1] | $ (0.21) | $ (0.24) | $ (0.68) | $ (1.03) |
[1] | Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss. |
Net Earnings (Loss) Per Commo_4
Net Earnings (Loss) Per Common Share Textuals (Details) - Stock Options - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 300,149 | 326,799 | ||
Antidilutive share granted, average exercise price | $ 24.45 | $ 25.24 | $ 24.45 | $ 25.24 |
Fair value stock price | $ 6.93 | $ 5.61 | $ 7.12 | $ 6.43 |
Concentration Of Credit Risk (D
Concentration Of Credit Risk (Details) | Sep. 30, 2020USD ($) |
Risks and Uncertainties [Abstract] | |
Retained Recourse Obligation For Events Of Default Under Contracts | $ 2,682,000 |
Events of Default Under Contract by Third Party | $ 8,262,000 |
Derivatives Notional Amounts -
Derivatives Notional Amounts - Designated as Hedges (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 59,965 | $ 47,400 |
Gain (Loss) | (1,077) | (78) |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 41,675 | 207,363 |
Unrealized Gain (Loss) | (1,148) | 11 |
USD / AUD | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 960 | 3,840 |
Unrealized Gain (Loss) | (41) | (106) |
USD / CAD | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 1,138 | 3,888 |
Unrealized Gain (Loss) | (2) | 32 |
USD / EUR | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 17,468 | 110,905 |
Unrealized Gain (Loss) | (1,061) | 122 |
USD / GBP | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 387 | 3,972 |
Unrealized Gain (Loss) | (11) | (8) |
USD / NZD | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 290 | 2,760 |
Unrealized Gain (Loss) | (13) | (166) |
USD / SEK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 876 | 5,062 |
Unrealized Gain (Loss) | (88) | (38) |
USD / MXN | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 3,901 | 6,763 |
Unrealized Gain (Loss) | (58) | 346 |
EUR / CAD | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 130 | 0 |
Gain (Loss) | (6) | 0 |
EUR / CAD | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 915 | 4,151 |
Unrealized Gain (Loss) | (42) | 24 |
EUR / CHF | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 2,703 | 9,821 |
Unrealized Gain (Loss) | (45) | 10 |
EUR / GBP | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 2,086 | 0 |
Gain (Loss) | 59 | 0 |
EUR / GBP | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 6,325 | 29,824 |
Unrealized Gain (Loss) | 178 | (216) |
EUR / SEK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 2,330 | 9,493 |
Unrealized Gain (Loss) | (72) | (46) |
EUR / NOK | Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 80 | 0 |
Gain (Loss) | 1 | 0 |
EUR / NOK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 1,490 | 5,797 |
Unrealized Gain (Loss) | 14 | 15 |
DKK / SEK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 1,402 | 5,936 |
Unrealized Gain (Loss) | 40 | 24 |
NOK / SEK | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 1,490 | 5,151 |
Unrealized Gain (Loss) | $ 53 | $ 18 |
Derivatives Notional Amounts _2
Derivatives Notional Amounts - Not Designated as Hedges (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | ||||
Notional Amount | $ 59,965 | $ 47,400 | ||
Gain (Loss) | (1,077) | (78) | ||
Forward exchange contracts—net | ||||
Derivative [Line Items] | ||||
Gain (Loss) | $ 317 | $ 103 | ||
AUD / USD | ||||
Derivative [Line Items] | ||||
Notional Amount | 6,149 | 10,000 | ||
Gain (Loss) | 96 | (94) | ||
CAD / USD | ||||
Derivative [Line Items] | ||||
Notional Amount | 8,321 | 8,000 | ||
Gain (Loss) | 88 | (50) | ||
EUR / USD | ||||
Derivative [Line Items] | ||||
Notional Amount | 11,735 | 10,000 | ||
Gain (Loss) | (745) | 104 | ||
DKK / USD | ||||
Derivative [Line Items] | ||||
Notional Amount | 15,081 | 0 | ||
Gain (Loss) | (137) | 0 | ||
GBP / USD | ||||
Derivative [Line Items] | ||||
Notional Amount | 650 | 7,000 | ||
Gain (Loss) | (18) | 40 | ||
NOK / USD | ||||
Derivative [Line Items] | ||||
Notional Amount | 8,986 | 0 | ||
Gain (Loss) | (427) | 0 | ||
NZD / USD | ||||
Derivative [Line Items] | ||||
Notional Amount | 309 | 4,500 | ||
Gain (Loss) | (9) | (101) | ||
EUR / CAD | ||||
Derivative [Line Items] | ||||
Notional Amount | 130 | 0 | ||
Gain (Loss) | (6) | 0 | ||
EUR / GBP | ||||
Derivative [Line Items] | ||||
Notional Amount | 2,086 | 0 | ||
Gain (Loss) | 59 | 0 | ||
AUD / NZD | ||||
Derivative [Line Items] | ||||
Notional Amount | 6,438 | 7,900 | ||
Gain (Loss) | 21 | 23 | ||
EUR / NOK | ||||
Derivative [Line Items] | ||||
Notional Amount | 80 | 0 | ||
Gain (Loss) | $ 1 | $ 0 |
Derivatives Balance Sheet Locat
Derivatives Balance Sheet Location (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 599 | $ 838 |
Other Current Assets | Foreign currency forward contracts | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 334 | 668 |
Other Current Assets | Foreign currency forward contracts | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 265 | 170 |
Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 2,824 | 905 |
Accrued Expenses | Foreign currency forward contracts | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 1,482 | 657 |
Accrued Expenses | Foreign currency forward contracts | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 1,342 | $ 248 |
Derivatives Gain (Loss) in Stat
Derivatives Gain (Loss) in Statement of Finacial Position (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Current period (loss) gain on cash flow hedges | $ (2,047,000) | $ (315,000) | $ (1,159,000) | $ 861,000 | |
Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) | 778,000 | (944,000) | 337,000 | (1,564,000) | |
Foreign currency forward contracts | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Current period (loss) gain on cash flow hedges | (2,501,000) | 557,000 | (1,340,000) | 2,179,000 | |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (739,000) | 860,000 | (352,000) | 1,445,000 | |
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (662,000) | (2,000) | (718,000) | 50,000 | |
Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) | $ (1,077,000) | $ (78,000) | |||
Not Designated as Hedging Instrument [Member] | Foreign currency forward contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) | $ 317,000 | $ 103,000 |
Derivatives Narrative (Details)
Derivatives Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2017 | Mar. 31, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||||
Convertible Debt 2022 Conversion Feature, Initial Fair Value | $ 28,859,000 | $ 28,859,000 | |||||
Proceeds from Issuance of Warrants | $ 12,376,000 | ||||||
Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivatives, matured during period | 155,783,000 | $ 110,373,000 | |||||
Selling, General and Administrative Expenses | Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Loss on derivative | (1,320,000) | $ (317,000) | $ (1,077,000) | (103,000) | |||
Minimum | |||||||
Derivative [Line Items] | |||||||
Derivative, percentage of forcasted transactions with currency rate exposure | 50.00% | ||||||
Maximum | |||||||
Derivative [Line Items] | |||||||
Derivative, percentage of forcasted transactions with currency rate exposure | 90.00% | ||||||
Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Gain (Loss) | (778,000) | 944,000 | $ (337,000) | 1,564,000 | |||
Cash Flow Hedging [Member] | Sales [Member] | |||||||
Derivative [Line Items] | |||||||
Gain recognized in income | 197,000 | 189,000 | |||||
Loss on derivative | (481,000) | (692,000) | |||||
Cash Flow Hedging [Member] | Cost of Sales [Member] | |||||||
Derivative [Line Items] | |||||||
Gain recognized in income | $ 747,000 | $ 1,375,000 | |||||
Loss on derivative | (1,259,000) | (1,029,000) | |||||
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | |||||||
Derivative [Line Items] | |||||||
Convertible due 2021 - Bond Hedge, Initial Fair Value | 27,975,000 | 27,975,000 | |||||
Convertible Debt Conversion Feature, Initial Fair Value | (34,480,000) | (34,480,000) | |||||
Debt Instrument, Face Amount | $ 1,250,000 | $ 150,000,000 | $ 1,250,000 | $ 61,091,000 | |||
Interest rate (as a percent) | 5.00% | 5.00% | |||||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | |||||||
Derivative [Line Items] | |||||||
Proceeds from Issuance of Warrants | $ 14,100,000 | ||||||
Convertible due 2022 - Bond Hedge, Fair Value at Issuance | $ 24,780,000 | 24,780,000 | $ 24,780,000 | ||||
Debt Instrument, Face Amount | $ 81,500,000 | $ 120,000,000 | $ 81,500,000 | $ 120,000,000 | |||
Interest rate (as a percent) | 4.50% | 4.50% |
Derivatives Fair Value of Conve
Derivatives Fair Value of Convertible Debt Hedges (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Fair Values Convertible Debt Hedges, Net | $ 0 | $ 0 | ||
Fair Values Convertible Debt Hedges, Gain (Loss) | 0 | $ 0 | ||
Fair Value, Inputs, Level 2 | Convertible Debt Conversion Feature | Fair Value, Measurements, Recurring | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Convertible 2021 debt conversion liability | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Convertible Debt 2022 Conversion Feature | Fair Value, Measurements, Recurring | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Convertible Debt Conversion Feature | 0 | 0 | ||
Fair Value, Inputs, Level 2 | Convertible Debt Bond Hedge | Fair Value, Measurements, Recurring | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Convertible 2021 note hedge asset | 0 | 0 | ||
Convertible 2022 note hedge asset | 0 | 0 | ||
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Convertible Debt Conversion Feature Gain (Loss) | 0 | 0 | 0 | $ (6,193,000) |
Convertible Debt Note Hedge Gain (Loss) | 0 | 0 | 0 | 6,748,000 |
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Convertible Debt Conversion Feature Gain (Loss) | 0 | 0 | 0 | (2,210,000) |
Convertible Debt Note Hedge Gain (Loss) | $ 0 | $ 0 | 0 | 2,852,000 |
Fair Values Convertible Debt Hedges, Gain (Loss) | $ 0 | $ 1,197,000 |
Fair Values (Assets and Liabili
Fair Values (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (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 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Values Convertible Debt Hedges, Gain (Loss) | $ 0 | $ 0 | |||
Convertible Senior Notes at 5.00% February 2021 [Member] | Convertible Subordinated Debt | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Values Convertible Debt Hedges, Gain (Loss) | $ 0 | $ 1,197 | |||
Convertible Debt Bond Hedge | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Convertible 2021 note hedge asset | 0 | 0 | |||
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets (liabilities), at fair value, net | 0 | 0 | $ 0 | ||
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets (liabilities), at fair value, net | (2,225) | (2,225) | (67) | ||
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets (liabilities), at fair value, net | $ 0 | $ 0 | $ 0 |
Fair Values (Details of Book Va
Fair Values (Details of Book Value and Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 86,825 | $ 80,063 | $ 85,040 | $ 116,907 |
Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 86,825 | 80,063 | ||
Other investments | 85 | 85 | ||
Installment receivables, net of reserves | 325 | 913 | ||
Total debt (including current maturities of long-term debt) * | (242,264) | (219,522) | ||
Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 86,825 | 80,063 | ||
Other investments | 85 | 85 | ||
Installment receivables, net of reserves | 325 | 913 | ||
Total debt (including current maturities of long-term debt) * | (218,231) | (207,193) | ||
Foreign currency forward contracts | Other Current Assets | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets | 599 | 838 | ||
Foreign currency forward contracts | Other Current Assets | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets | 599 | 838 | ||
Foreign currency forward contracts | Accrued Expenses | Carrying Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liabilities | (2,824) | (905) | ||
Foreign currency forward contracts | Accrued Expenses | Fair Value | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative liabilities | (2,824) | (905) | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Foreign currency forward contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | 0 | 0 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt 2022 Conversion Feature | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible Debt Conversion Feature | 0 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Foreign currency forward contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | (2,225) | (67) | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt Conversion Feature | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible 2021 debt conversion liability | 0 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt Bond Hedge | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Convertible due 2021 - Bond Hedge | 0 | |||
Convertible 2022 note hedge asset | 0 | |||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Foreign currency forward contracts | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative assets (liabilities), at fair value, net | $ 0 | $ 0 |
Business Segments (Information
Business Segments (Information by Segment) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||
Net Sales | $ 211,906,000 | $ 235,774,000 | $ 626,646,000 | $ 695,051,000 | |||
Restructuring Reserve | 5,992,000 | $ 6,018,000 | $ 6,549,000 | 5,992,000 | $ 7,027,000 | ||
Charges | (1,580,000) | (1,685,000) | (1,392,000) | (1,628,000) | (4,657,000) | (3,641,000) | |
Gain on sale of business | 0 | 0 | 9,790,000 | 0 | |||
Operating Income (Loss) | 2,930,000 | 2,418,000 | 10,139,000 | (6,570,000) | |||
Net gain on convertible debt derivatives | 0 | 0 | 0 | 1,197,000 | |||
Interest Revenue (Expense), Net | (7,395,000) | (6,879,000) | (21,042,000) | (21,666,000) | |||
Earnings (loss) before income taxes | (5,226,000) | (4,741,000) | (18,263,000) | (27,319,000) | |||
Loss on debt extinguishment including debt finance charges and fees | (761,000) | (280,000) | (7,360,000) | (280,000) | |||
Asia/Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 7,566,000 | 11,285,000 | 25,904,000 | 35,930,000 | |||
All Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 166,000 | 166,000 | 166,000 | 166,000 | 406,000 | ||
Charges | 0 | (82,000) | (36,000) | (34,000) | (118,000) | (199,000) | |
Operating Income (Loss) | (6,082,000) | (5,625,000) | (17,377,000) | (18,230,000) | |||
Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 116,285,000 | 137,371,000 | 339,147,000 | 396,206,000 | |||
Restructuring Reserve | 5,728,000 | 5,749,000 | 6,043,000 | 5,728,000 | 6,410,000 | ||
Charges | (1,434,000) | (1,575,000) | (665,000) | (1,263,000) | (3,674,000) | (1,903,000) | |
Operating Income (Loss) | 7,600,000 | 11,365,000 | 16,624,000 | 22,617,000 | |||
North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 88,055,000 | 87,118,000 | 261,595,000 | 262,915,000 | |||
Restructuring Reserve | 98,000 | 103,000 | 340,000 | 98,000 | 211,000 | ||
Restructuring Reserve, Accrual Adjustment | 146,000 | 865,000 | |||||
Charges | (146,000) | (28,000) | (691,000) | (331,000) | (865,000) | (1,539,000) | |
Operating Income (Loss) | 2,992,000 | (1,694,000) | 5,759,000 | (7,316,000) | |||
Operating Segments [Member] | Asia/Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 7,566,000 | 11,285,000 | 25,904,000 | 35,930,000 | |||
Operating Segments [Member] | Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 116,285,000 | 137,371,000 | 339,147,000 | 396,206,000 | |||
Operating Segments [Member] | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 88,055,000 | 87,118,000 | 261,595,000 | 262,915,000 | |||
Intersegment revenues | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 30,768,000 | 28,158,000 | 84,439,000 | 81,281,000 | |||
Intersegment revenues | Asia/Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 1,116,000 | 3,904,000 | 3,645,000 | 9,776,000 | |||
Intersegment revenues | Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 6,027,000 | 3,124,000 | 14,438,000 | 10,396,000 | |||
Intersegment revenues | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 23,625,000 | 21,130,000 | 66,356,000 | 61,109,000 | |||
Severance | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 5,988,000 | 6,014,000 | 6,545,000 | 5,988,000 | 7,023,000 | ||
Charges | (1,580,000) | (1,412,000) | (1,319,000) | ||||
Severance | All Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 166,000 | 166,000 | 166,000 | 166,000 | 406,000 | ||
Charges | 0 | (82,000) | (36,000) | (199,000) | |||
Severance | Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 5,724,000 | 5,745,000 | 6,039,000 | 5,724,000 | 6,406,000 | ||
Charges | (1,434,000) | (1,302,000) | (592,000) | (3,328,000) | (1,903,000) | ||
Severance | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 98,000 | 103,000 | 340,000 | 98,000 | 211,000 | ||
Charges | (146,000) | (28,000) | (691,000) | (1,495,000) | |||
Contract Termination | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | ||
Charges | 0 | (273,000) | (73,000) | ||||
Contract Termination | All Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | 0 | ||
Charges | 0 | 0 | 0 | ||||
Contract Termination | Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 4,000 | 4,000 | 4,000 | 4,000 | 4,000 | ||
Charges | 0 | (273,000) | (73,000) | (346,000) | |||
Contract Termination | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring Reserve | 0 | 0 | 0 | 0 | $ 0 | ||
Restructuring Reserve, Accrual Adjustment | 0 | $ 0 | $ 0 | ||||
Charges | (44,000) | ||||||
Lifestyle Products [Domain] | Operating Segments [Member] | Asia/Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 3,375,000 | 3,001,000 | 10,176,000 | 8,261,000 | |||
Lifestyle Products [Domain] | Operating Segments [Member] | Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 50,307,000 | 59,403,000 | 160,628,000 | 182,103,000 | |||
Lifestyle Products [Domain] | Operating Segments [Member] | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 41,845,000 | 43,401,000 | 124,888,000 | 131,259,000 | |||
Mobility and Seating [Domain] | Operating Segments [Member] | Asia/Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 2,670,000 | 6,645,000 | 10,757,000 | 21,986,000 | |||
Mobility and Seating [Domain] | Operating Segments [Member] | Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 54,851,000 | 68,286,000 | 147,275,000 | 184,819,000 | |||
Mobility and Seating [Domain] | Operating Segments [Member] | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 26,572,000 | 31,252,000 | 82,485,000 | 89,638,000 | |||
Respiratory Therapy [Domain] | Operating Segments [Member] | Asia/Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 195,000 | 175,000 | 1,043,000 | 1,063,000 | |||
Respiratory Therapy [Domain] | Operating Segments [Member] | Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 6,070,000 | 4,919,000 | 16,680,000 | 14,875,000 | |||
Respiratory Therapy [Domain] | Operating Segments [Member] | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 19,405,000 | 12,108,000 | 53,626,000 | 40,811,000 | |||
Other [Domain] | Operating Segments [Member] | Asia/Pacific | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 1,326,000 | 1,464,000 | 3,928,000 | 4,620,000 | |||
Other [Domain] | Operating Segments [Member] | Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | 5,057,000 | 4,763,000 | 14,564,000 | 14,409,000 | |||
Other [Domain] | Operating Segments [Member] | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net Sales | $ 233,000 | $ 357,000 | $ 596,000 | $ 1,207,000 |