Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Cover page. | ||
Entity Address, Address Line One | 6701 Koll Center Parkway, Suite 120 | |
Entity File Number | 000-33001 | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | NTUS | |
Security Exchange Name | NASDAQ | |
Entity Small Business | false | |
Entity Registrant Name | NATUS MEDICAL INC | |
Entity Central Index Key | 0000878526 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,090,315 | |
Entity Emerging Growth Company | false | |
Entity Tax Identification Number | 77-0154833 | |
Entity Address, City or Town | Pleasanton | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94566 | |
City Area Code | 925 | |
Local Phone Number | 223-6700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 63,062 | $ 56,373 |
Accounts receivable, net of allowance for doubtful accounts of $9,047 in 2019 and $6,960 in 2018 | 108,964 | 127,041 |
Inventories | 75,107 | 79,736 |
Prepaid expenses and other current assets | 27,735 | 22,625 |
Total current assets | 274,868 | 285,775 |
Property and equipment, net | 25,095 | 22,913 |
Operating lease right-of-use assets | 16,059 | 0 |
Intangible assets, net | 119,008 | 139,453 |
Goodwill | 146,144 | 147,644 |
Deferred income tax | 21,955 | 22,639 |
Other assets | 25,984 | 19,716 |
Total assets | 629,113 | 638,140 |
Current liabilities: | ||
Accounts payable | 30,096 | 28,805 |
Current portion of long-term debt | 35,000 | |
Accrued liabilities | 56,657 | 52,568 |
Deferred revenue | 19,242 | 17,073 |
Current portion of operating lease liabilities | 5,901 | 0 |
Total current liabilities | 146,896 | 133,446 |
Long-term liabilities: | ||
Other liabilities | 20,200 | 19,845 |
Operating lease liabilities | 13,112 | 0 |
Long-term debt, net | 34,618 | 69,474 |
Deferred income tax | 8,129 | 16,931 |
Total liabilities | 222,955 | 239,696 |
Stockholders’ equity: | ||
Common stock, $0.001 par value, 120,000,000 shares authorized; shares issued and outstanding 34,090,301 in 2019 and 33,804,379 in 2018 | 341,083 | 334,215 |
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding in 2019 and 2018 | 0 | 0 |
Retained earnings | 86,241 | 102,261 |
Accumulated other comprehensive loss | (21,166) | (38,032) |
Total stockholders’ equity | 406,158 | 398,444 |
Total liabilities and stockholders’ equity | $ 629,113 | $ 638,140 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9,047 | $ 6,960 |
Common Stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common Stock, shares issued (in shares) | 34,090,301 | 33,804,379 |
Common Stock, shares outstanding (in shares) | 34,090,301 | 33,804,379 |
Preferred Stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 123,463 | $ 130,638 | $ 363,759 | $ 389,900 |
Cost of revenue | 48,706 | 51,583 | 147,240 | 159,849 |
Intangibles amortization | 1,736 | 1,930 | 5,237 | 6,235 |
Gross profit | 73,021 | 77,125 | 211,282 | 223,816 |
Operating expenses: | ||||
Marketing and selling | 30,848 | 33,200 | 96,813 | 102,474 |
Research and development | 14,114 | 15,127 | 39,941 | 46,186 |
General and administrative | 15,113 | 15,799 | 44,108 | 56,966 |
Intangibles amortization | 3,751 | 4,477 | 11,300 | 13,434 |
Restructuring | 1,106 | 11,432 | 41,147 | 14,182 |
Total operating expenses | 64,932 | 80,035 | 233,309 | 233,242 |
Income (loss) from operations | 8,089 | (2,910) | (22,027) | (9,426) |
Other expense, net | (1,609) | (726) | (4,921) | (4,944) |
Income (loss) before provision for (benefit from) income tax | 6,480 | (3,636) | (26,948) | (14,370) |
Provision for (benefit from) income tax | (1,981) | 1,940 | (9,596) | (3,069) |
Net income (loss) | $ 8,461 | $ (5,576) | $ (17,352) | $ (11,301) |
Net income (loss) per share: | ||||
Basic (dollars per share) | $ 0.25 | $ (0.17) | $ (0.52) | $ (0.34) |
Diluted (dollars per share) | $ 0.25 | $ (0.17) | $ (0.52) | $ (0.34) |
Weighted average shares used in the calculation of net income (loss) per share: | ||||
Basic (in shares) | 33,655 | 33,321 | 33,666 | 32,982 |
Diluted (in shares) | 33,738 | 33,321 | 33,666 | 32,982 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 8,461 | $ (5,576) | $ (17,352) | $ (11,301) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (6,181) | (2,411) | (6,411) | (12,046) |
Interest rate swap designated as a cash flow hedge | (27) | 99 | (236) | 98 |
Reclassification of stranded tax effects upon adoption of ASU 2018-02 | 0 | 0 | (1,332) | 0 |
Reclassification of deferred foreign currency related adjustments related to the sale of Medix (See Footnote 17 - Sale of Certain Subsidiary Assets) | 0 | 0 | 24,845 | 0 |
Other comprehensive income (loss), net of tax | (6,208) | (2,312) | 16,866 | (11,948) |
Comprehensive income (loss) | $ 2,253 | $ (7,888) | $ (486) | $ (23,249) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 3,727 | $ 4,426 |
Operating activities: | ||
Net loss | (17,352) | (11,301) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Provision for losses on accounts receivable | 1,494 | 5,871 |
Depreciation and amortization | 22,946 | 25,652 |
Loss on disposal of property and equipment | 482 | 410 |
Warranty reserve | 2,588 | 73 |
Share-based compensation | 6,377 | 15,446 |
Impairment charge for sale of entity | 24,571 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 17,290 | 2,955 |
Inventories | (2,074) | (5,183) |
Prepaid expenses and other assets | (10,643) | (14,398) |
Accounts payable | 1,607 | (3,799) |
Accrued liabilities | 1,073 | 968 |
Deferred revenue | 2,371 | 1,745 |
Deferred income tax | (2,817) | 517 |
Net cash provided by operating activities | 47,913 | 18,956 |
Investing activities: | ||
Acquisition of businesses, net of cash acquired | 0 | 151 |
Purchase of property and equipment | (3,872) | (5,127) |
Purchase of intangible assets | (13) | (637) |
Net cash used in investing activities | (3,885) | (5,613) |
Financing activities: | ||
Proceeds from stock option exercises and Employee Stock Purchase Program purchases | 2,193 | 10,515 |
Repurchase of common stock | 0 | (5,629) |
Taxes paid related to net share settlement of equity awards | (1,596) | (5,173) |
Principal payments of financing lease liability | (404) | 0 |
Payment of contingent consideration related to a business combination | 0 | (147) |
Payments on borrowings | (35,000) | (40,000) |
Net cash used in financing activities | (34,807) | (40,434) |
Exchange rate changes effect on cash and cash equivalents | (2,532) | (7,419) |
Net increase (decrease) in cash and cash equivalents | 6,689 | (34,510) |
Cash and cash equivalents, beginning of period | 56,373 | 88,950 |
Cash and cash equivalents, end of period | 63,062 | 54,440 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 4,169 | 7,946 |
Non-cash investing activities: | ||
Property and equipment included in accounts payable | 15 | 82 |
Inventory transferred to property and equipment | $ 205 | $ 754 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (unaudited) Condensed Consolidated Statement of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Beginning of period (shares) at Dec. 31, 2017 | 33,134,101 | |||
Beginning of period at Dec. 31, 2017 | $ 422,097 | $ 316,577 | $ 129,115 | $ (23,595) |
Vesting Of Restricted Stock Units Shares | 100 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 239,649 | |||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2,361 | $ 2,361 | ||
Stock Repurchased During Period, Shares | (147,893) | |||
Stock Repurchased During Period, Value | (4,736) | $ (4,736) | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (600) | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (19) | $ (19) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 46,173 | |||
Stock Issued During Period, Value, Stock Options Exercised | 577 | $ 577 | ||
Other Comprehensive Income (Loss), Net of Tax | 3,617 | 3,617 | ||
Net loss | (3,148) | (3,148) | ||
End of period (shares) at Mar. 31, 2018 | 33,271,530 | |||
End of period at Mar. 31, 2018 | 416,830 | $ 314,760 | 122,048 | (19,978) |
Beginning of period (shares) at Dec. 31, 2017 | 33,134,101 | |||
Beginning of period at Dec. 31, 2017 | 422,097 | $ 316,577 | 129,115 | (23,595) |
Other Comprehensive Income (Loss), Net of Tax | (11,948) | |||
Net loss | (11,301) | |||
End of period (shares) at Sep. 30, 2018 | 33,755,514 | |||
End of period at Sep. 30, 2018 | 409,959 | $ 331,607 | 113,895 | (35,543) |
Beginning of period (shares) at Mar. 31, 2018 | 33,271,530 | |||
Beginning of period at Mar. 31, 2018 | 416,830 | $ 314,760 | 122,048 | (19,978) |
Vesting Of Restricted Stock Units Shares | 166 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 21,599 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 30,971 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 870 | $ 870 | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 3,219 | $ 3,219 | ||
Stock Repurchased During Period, Shares | (25,652) | |||
Stock Repurchased During Period, Value | (893) | $ (893) | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (8,627) | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (306) | $ (306) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 300,350 | |||
Stock Issued During Period, Value, Stock Options Exercised | 3,645 | $ 3,645 | ||
Other Comprehensive Income (Loss), Net of Tax | (13,253) | (13,253) | ||
Net loss | (2,577) | (2,577) | ||
End of period (shares) at Jun. 30, 2018 | 33,590,337 | |||
End of period at Jun. 30, 2018 | 407,535 | $ 321,295 | 119,471 | (33,231) |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 2,595 | |||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 9,737 | $ 9,737 | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (151,163) | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (4,848) | $ (4,848) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 313,745 | |||
Stock Issued During Period, Value, Stock Options Exercised | 5,423 | $ 5,423 | ||
Other Comprehensive Income (Loss), Net of Tax | (2,312) | (2,312) | ||
Net loss | (5,576) | (5,576) | ||
End of period (shares) at Sep. 30, 2018 | 33,755,514 | |||
End of period at Sep. 30, 2018 | 409,959 | $ 331,607 | 113,895 | (35,543) |
Beginning of period (shares) at Dec. 31, 2018 | 33,804,379 | |||
Beginning of period at Dec. 31, 2018 | 398,444 | $ 334,215 | 102,261 | (38,032) |
Vesting Of Restricted Stock Units Shares | 42,130 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 139,718 | |||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2,432 | $ 2,432 | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (47,767) | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (1,567) | $ (1,567) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 16,617 | |||
Stock Issued During Period, Value, Stock Options Exercised | 268 | $ 268 | ||
Other Comprehensive Income (Loss), Net of Tax | (1,875) | (1,875) | ||
Net loss | (30,001) | (30,001) | ||
End of period (shares) at Mar. 31, 2019 | 33,955,077 | |||
End of period at Mar. 31, 2019 | 367,701 | $ 335,348 | 73,592 | (41,239) |
Beginning of period (shares) at Dec. 31, 2018 | 33,804,379 | |||
Beginning of period at Dec. 31, 2018 | 398,444 | $ 334,215 | 102,261 | (38,032) |
Other Comprehensive Income (Loss), Net of Tax | 16,866 | |||
Net loss | (17,352) | |||
End of period (shares) at Sep. 30, 2019 | 34,090,301 | |||
End of period at Sep. 30, 2019 | 406,158 | $ 341,083 | 86,241 | (21,166) |
Beginning of period (shares) at Mar. 31, 2019 | 33,955,077 | |||
Beginning of period at Mar. 31, 2019 | 367,701 | $ 335,348 | 73,592 | (41,239) |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 5,762 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 31,879 | |||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 725 | $ 725 | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1,987 | $ 1,987 | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (274) | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (7) | $ (7) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 47,786 | |||
Stock Issued During Period, Value, Stock Options Exercised | 682 | $ 682 | ||
Other Comprehensive Income (Loss), Net of Tax | 26,281 | 26,281 | ||
Net loss | 4,188 | 4,188 | ||
End of period (shares) at Jun. 30, 2019 | 34,040,230 | |||
End of period at Jun. 30, 2019 | 401,557 | $ 338,735 | 77,780 | (14,958) |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 27,025 | |||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 1,851 | $ 1,851 | ||
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (754) | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (22) | $ (22) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 23,800 | |||
Stock Issued During Period, Value, Stock Options Exercised | 519 | $ 519 | ||
Other Comprehensive Income (Loss), Net of Tax | (6,208) | (6,208) | ||
Net loss | 8,461 | 8,461 | ||
End of period (shares) at Sep. 30, 2019 | 34,090,301 | |||
End of period at Sep. 30, 2019 | $ 406,158 | $ 341,083 | $ 86,241 | $ (21,166) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Significant Accounting Policies The accompanying interim condensed consolidated financial statements of Natus Medical Incorporated (“we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Except where noted below within Note 1, the accounting policies followed in the preparation of the interim condensed consolidated financial statements are consistent in all material respects with those presented in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Interim financial reports are prepared in accordance with the rules and regulations of the Securities and Exchange Commission; accordingly, the reports do not include all of the information and notes required by GAAP for annual financial statements. The interim financial information is unaudited, and reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods presented. We have made certain reclassifications to the prior period to conform to current period presentation. The consolidated balance sheet as of December 31, 2018 was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The accompanying condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Recent Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This standard requires lease assets and lease liabilities arising from operating leases to be presented in the statement of financial position. Qualitative along with specific quantitative disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. In July 2018, FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which affects narrow aspects of the guidance issued in the amendments in Update 2016-02. In July 2018, the FASB also issued ASU 2018-11, Targeted Improvements. The amendments in ASU 2018-11 provide additional clarification and implementation guidance on certain aspects of the previously issued ASU 2016-02 and have the same effective and transition requirements as ASU 2016-02. The new standard provides a number of optional practical expedients in transition. We have elected the package of practical expedients, which permits an entity to not reassess prior conclusions about lease identification, lease classification and initial direct costs under the new standard. We have not elected the use-of-hindsight practical expedient or the practical expedient pertaining to land easements; the latter of which is not applicable to us. We made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. We will recognize those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The new standard became effective for us on January 1, 2019. We adopted the new standard using the modified retrospective transition method with the effective date as the date of initial application. Upon adoption, we recognized additional new lease assets of approximately $19.5 million and additional lease liabilities of approximately $22.3 million as of January 1, 2019. The standard did not materially affect consolidated net earnings. By electing the effective date as the date of initial application, financial performance has not been adjusted and the disclosures required under the new standard have not been provided for periods prior to January 1, 2019. See Significant Accounting Policies and Note 14 for additional discussion and disclosure. The adoption of the new standard did not impact our liquidity or debt-covenant compliance under its current agreements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for our annual and any interim goodwill impairment tests performed on or after January 1, 2020. We elected to early adopt. The adoption of ASU 2017-04 did not have an impact on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This update permits a company to reclassify its disproportionate income tax effects of the Tax Cuts and Jobs Act of 2017 (the “2017 Act”) on items within accumulated other comprehensive income (“AOCI”) to retained earnings (termed “stranded tax effects”). Only the stranded tax effects resulting from the 2017 Act are eligible for reclassification. The ASU was effective for us as of January 1, 2019. Upon adoption, we reclassified its stranded tax effects resulting from the 2017 Act of $1.3 million , resulting in a decrease to AOCI and an increase to retained earnings as of January 1, 2019. Recent Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Credit Losses (Topic 326). This update requires financial assets measured at amortized cost, such as trade receivables and contract assets, to be presented net of expected credit losses, which may be estimated based on relevant information such as historical experience, current conditions, and future expectation for each pool of similar financial assets. The new guidance requires enhanced disclosures related to trade receivables and associated credit losses. In May 2019, the FASB issued ASU 2019-05 which provides targeted transition relief guidance intended to increase comparability of financial statement information. The guidance for both of these is effective beginning January 1, 2020. We are evaluating the impact, if any, that these pronouncements will have on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. This update amends Topic 820 to add, remove, and clarify disclosure requirements related to fair value measurement disclosure. For calendar year-end entities, the update will be effective for annual periods beginning January 1, 2020, and interim periods within those fiscal years. Early adoption of the amendments is permitted, including adoption in any interim period. As the standard relates only to disclosures, we do not expect the adoption to have a material impact on our consolidated financial statements. Significant Accounting Policies Leases We determine if an arrangement is a lease at inception of the lease. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit borrowing rate, generally we use an incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the lease commencement date. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to exclude or terminate the lease when it is reasonably certain that they will exercise that option. Lease expense for lease payments are recognized on a straight-line basis over the lease term. Operating leases are included in operating lease ROU assets, accrued liabilities, and operating lease liabilities in our consolidated balance sheet. Finance leases are included in property and equipment, accrued liabilities, and other liabilities in the consolidated balance sheet. We have lease agreements with lease and non-lease components, which are generally accounted for based on the type of asset. For real estate and telecom leases, we account for these components separately. For equipment leases, such as office equipment and vehicles, we account for the lease and non-lease components as a single lease component. Assets and Liabilities Held for Sale We consider assets and liabilities to be held for sale when all of the following criteria are met: • Management approves and commits to a formal plan to sell the asset or disposal group; • The assets or disposal group is available for immediate sale in its present condition; • An active program to locate a buyer and other actions required to complete the sale have been initiated; • The sale of the asset or disposal group is expected to be completed within one year; • The asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to the current fair value; and • It is unlikely that significant changes will be made to the plan. |
Revenue (Notes)
Revenue (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Unbilled accounts receivable (“AR”) for the periods presented primarily represent the difference between revenue recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue for the periods presented primarily relates to extended service contracts, installation, and training, for which the service fees are billed in advance. The associated deferred revenue is generally recognized ratably over the extended service period or when installation and training are complete. The following table summarizes the changes in the unbilled AR and deferred revenue balances for the nine months ended September 30, 2019 (in thousands): Unbilled AR, December 31, 2018 $ 3,012 Additions 235 Transferred to Trade Receivable (687 ) Unbilled AR, September 30, 2019 $ 2,560 Deferred Revenue, December 31, 2018 $ 21,410 Additions 16,589 Revenue Recognized (14,246 ) Deferred Revenue, September 30, 2019 $ 23,753 At September 30, 2019 , the short-term portion of deferred revenue of $19.2 million and the long-term portion of $4.5 million were included in deferred revenue and other long-term liabilities respectively, in the consolidated balance sheet. As of September 30, 2019 , we expect to recognize revenue associated with deferred revenue of approximately $7.2 million in 2019, $12.6 million in 2020, $1.9 million in 2021, $1.0 million in 2022, and $1.0 million |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The components of basic and diluted EPS are as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net income (loss) $ 8,461 $ (5,576 ) $ (17,352 ) $ (11,301 ) Weighted average common shares 33,655 33,321 33,666 32,982 Dilutive effect of stock based awards 83 — — — Diluted Shares 33,738 33,321 33,666 32,982 Basic income (loss) per share $ 0.25 $ (0.17 ) $ (0.52 ) $ (0.34 ) Diluted income (loss) per share $ 0.25 $ (0.17 ) $ (0.52 ) $ (0.34 ) Shares excluded from calculation of diluted EPS — 230 105 407 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following (in thousands): September 30, 2019 December 31, 2018 Raw materials and subassemblies $ 40,464 $ 31,459 Work in process 2,629 2,424 Finished goods 54,857 63,932 Total inventories 97,950 97,815 Less: Non-current inventories (22,843 ) (18,079 ) Inventories, current $ 75,107 $ 79,736 As of September 30, 2019 and December 31, 2018 , we have classified $22.8 million and $18.1 million , respectively, of inventories as other assets. This inventory consists primarily of service components used to repair products held by customers pursuant to warranty obligations and extended service contracts, including service components for products we no longer sell, inventory purchased for lifetime buys, and inventory that is turning over at a slow rate. We believe these inventories will be utilized for their intended purpose. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table summarizes the components of gross and net intangible asset balances (in thousands): September 30, 2019 December 31, 2018 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 109,075 $ (6,619 ) $ (54,404 ) $ 48,052 $ 111,198 $ (6,768 ) $ (50,046 ) $ 54,384 Customer related 97,440 (50 ) (46,100 ) 51,290 99,440 (1,961 ) (38,574 ) 58,905 Trade names 46,605 (3,774 ) (24,035 ) 18,796 47,217 (4,397 ) (19,250 ) 23,570 Internally developed software 16,524 — (15,780 ) 744 16,264 — (14,164 ) 2,100 Patents 2,664 (133 ) (2,531 ) — 2,718 (133 ) (2,524 ) 61 Service Agreements 1,190 — (1,064 ) 126 1,190 — (757 ) 433 Definite-lived intangible assets $ 273,498 $ (10,576 ) $ (143,914 ) $ 119,008 $ 278,027 $ (13,259 ) $ (125,315 ) $ 139,453 Finite-lived intangible assets are amortized over their weighted average lives, which are 14 years for technology, 10 years for customer related intangibles, 7 years for trade names, 6 years for internally developed software, 13 years for patents, 2 years for service agreements and 11 years weighted average in total. Internally developed software consists of $14.3 million relating to costs incurred for development of internal use computer software and $2.2 million for development of software to be sold. Amortization expense related to intangible assets with definite lives was as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Technology $ 1,719 $ 2,028 $ 5,186 $ 6,405 Customer related 2,159 2,596 6,509 7,779 Trade names 1,487 1,553 4,476 4,635 Internally developed software 359 545 1,369 1,603 Patents 20 20 60 64 Service Agreements $ 102 $ 165 307 651 Total amortization $ 5,846 $ 6,907 $ 17,907 $ 21,137 The amortization expense amounts shown above include internally developed software not held for sale of $0.2 million and $1.2 million for the three and nine months ended September 30, 2019 , respectively which is recorded within our income statement as a general and administrative operating expense. Expected amortization expense related to definite-lived amortizable intangible assets is as follows (in thousands): Three months ending December 31, 2019 $ 5,378 2020 21,455 2021 20,568 2022 17,134 2023 16,164 2024 14,300 Thereafter 24,009 Total expected amortization expense $ 119,008 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The carrying amount of goodwill and the changes in the balance are as follows (in thousands): December 31, 2018 $ 147,644 Foreign currency translation (1,500 ) September 30, 2019 $ 146,144 |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consist of the following (in thousands): September 30, 2019 December 31, 2018 Land $ 1,718 $ 1,828 Buildings 6,629 7,036 Leasehold improvements 8,479 4,649 Finance lease right-of-use assets 2,884 — Equipment and furniture 22,820 23,487 Computer software and hardware 12,315 12,803 Demonstration and loaned equipment 12,074 12,843 66,919 62,646 Accumulated depreciation (41,824 ) (39,733 ) Total $ 25,095 $ 22,913 Depreciation expense of property and equipment was approximately $1.6 million and $4.9 million for the three and nine months ended September 30, 2019 and approximately $2.0 million and $4.4 million for the three and nine months ended September 30, 2018 |
Reserve for Product Warranties
Reserve for Product Warranties | 9 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Reserve for Product Warranties | Reserve for Product Warranties We provide a warranty for products that is generally one year in length, but in some cases regulations may require us to provide repair or remediation beyond the typical warranty period. If any of the products contain defects, we may incur additional repair and remediation costs. Service for domestic customers is provided by our service centers that perform all service, repair, and calibration services. Service for international customers is provided by a combination of our facilities, vendors on a contract basis, and distributors. A warranty reserve is included in accrued liabilities for the expected future costs of servicing products. Additions to the reserve are based on management’s best estimate of probable liability. We consider a combination of factors including material and labor costs, regulatory requirements, and other judgments in determining the amount of the reserve. The reserve is reduced as servicing is performed to honor existing warranty and regulatory obligations. As of September 30, 2019 , we have accrued $7.4 million for product related warranties, which includes $2.4 million of estimated costs to bring certain products into regulatory compliance. Our estimate of these costs is primarily based upon the number of units outstanding that may require repair and costs associated with shipping. The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Balance, beginning of period $ 8,076 $ 10,913 $ 9,391 $ 10,995 Additions charged to expense 911 792 3,159 3,127 Utilizations (1,560 ) (945 ) (4,543 ) (2,003 ) Changes in estimate related to product remediation activities — (1,695 ) (571 ) (3,054 ) Divestiture adjustments — — (9 ) — Balance, end of period $ 7,427 $ 9,065 $ 7,427 $ 9,065 Our estimate of future product warranty costs may vary from actual product warranty costs, and any variance from estimates could impact our cost of sales, operating profits and results of operations. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation As of September 30, 2019 , we have two active share-based compensation plans, the 2018 Equity Incentive Plan and the 2011 Employee Stock Purchase Plan. In January 2019, we granted market stock unit (“MSU”) awards to certain employees. These MSUs fully vest on December 31, 2021 and have separate market performance goals than the performance stock unit (“PSU”) awards we grant. Each MSU represents the right to one share of common stock. The actual number of MSUs which will be eligible to vest will be based on the performance of our stock price over the vesting period. The maximum number of MSUs which will be eligible to vest are 200% of the MSUs initially granted. A Monte Carlo simulation model was used to estimate the fair value of the MSUs as of their grant date. This model simulates our stock price movements using certain assumptions, including our stock price. The terms of all other awards granted during the nine months ended September 30, 2019 and the methods for determining grant-date fair value of the awards are consistent with those described in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Details of share-based compensation expense are as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ 37 $ 42 $ 193 $ 181 Marketing and selling 161 207 600 603 Research and development 270 278 773 827 General and administrative 1,384 1,056 4,705 4,895 Restructuring — 8,231 — 8,940 Total $ 1,852 $ 9,814 $ 6,271 $ 15,446 As of September 30, 2019 , unrecognized compensation expense related to the unvested portion of stock options and other stock awards was approximately $12.3 million , which is expected to be recognized over a weighted average period of 2.1 years . |
Other Income (Expense), net
Other Income (Expense), net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), net | Other Income (Expense), net Other income (expense), net consists of (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest income $ 93 $ 318 $ 239 $ 324 Interest expense (1,172 ) (1,649 ) (4,167 ) (5,250 ) Foreign currency gain (loss) (397 ) 572 (860 ) 337 Other expense (133 ) 33 (133 ) (355 ) Total other expense, net $ (1,609 ) $ (726 ) $ (4,921 ) $ (4,944 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Ours tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete events arising in each respective quarter. During each interim period, we update the estimated annual effective tax rate which is subject to significant volatility due to several factors, including our ability to accurately predict the income (loss) before provision for income taxes in multiple jurisdictions, the effects of acquisitions, the integration of those acquisitions, and changes in tax law. In circumstances where we are unable to predict income (loss) in multiple jurisdictions, the actual year to date effective tax rate may be the best estimate of the annual effective tax rate for purposes of determining the interim provision for income tax. We recorded a benefit from income tax of $2.0 million and $9.6 million for the three and nine months ended September 30, 2019 , respectively. The effective tax rate was (30.6)% and 35.6% for the three and nine months ended September 30, 2019 , respectively. Of the $9.6 million benefit from income tax recorded for the nine months ended September 30, 2019 , $8.2 million relates to the tax accounting effects of the sale of Medix. We recorded an expense for income tax of $1.9 million and a benefit from income tax of $3.1 million for the three and nine months ended September 30, 2018 , respectively. The effective tax rate was (53.4)% and 21.4% for the three and nine months ended September 30, 2018 , respectively. The increase in the effective tax rate for the three months ended September 30, 2019 compared with the three months ended September 30, 2018 is primarily attributable to changes in distribution of income among jurisdictions with varying tax rates. The increase in the effective tax rate for the nine months ended September 30, 2019 compared with the nine months ended September 30, 2018 is primarily attributable to the tax accounting effects of the sale of Medix. Our effective tax rate for the three months ended September 30, 2019 differed from the federal statutory rate of 21% primarily due to tax benefits from the reversal of uncertain tax positions and certain intra-entity transfers of assets. Our effective tax rate for the nine months ended September 30, 2019 differed from the federal statutory rate of 21% primarily due to the tax accounting effects of the sale of Medix and other tax benefits stated above. Other significant factors that impact the effective tax rate are Federal and California research and development credits, non-deductible executive compensation expenses, and inclusions related to global intangible low-taxed income. We recorded $0.6 million of net tax benefit related to unrecognized tax benefits for the nine months ended September 30, 2019 , primarily due to the lapse of the applicable statute of limitations. Within the next twelve months, it is possible that the uncertain tax benefit may change with a range of approximately zero to $0.4 million . Our tax returns remain open to examination as follows: U.S Federal, 2015 through 2018, U.S. states, 2015 through 2018, and significant foreign jurisdictions, generally 2014 through 2018. |
Debt and Credit Arrangements
Debt and Credit Arrangements | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Credit Arrangements | Debt and Credit Arrangements We have a Credit Agreement with JP Morgan Chase Bank ("JP Morgan"), Citibank, NA (“Citibank”), and Wells Fargo Bank, National Association (“Wells Fargo”). The Credit Agreement provides for an aggregate $225.0 million of secured revolving credit facility. The Credit Agreement contains covenants, including covenants relating to maintenance of books and records, financial reporting and notification, compliance with laws, maintenance of properties and insurance, and limitations on guaranties, investments, issuance of debt, lease obligations and capital expenditures, and is secured by virtually all of our assets. The Credit Agreement provides for events of default, including failure to pay any principal or interest when due, failure to perform or observe covenants, bankruptcy or insolvency events and the occurrence of the event has a material adverse effect. We have no other significant credit facilities. In addition to the customary restrictive covenants listed above, the Credit Agreement also contains financial covenants that require us to maintain a certain leverage ratio and fixed charge coverage ratio, each as defined in the Credit Agreement: • Leverage Ratio, as defined, to be no higher than 2.75 to 1.00 . • Interest Coverage Ratio, as defined, to be at least 1.75 to 1.00 at all times. At September 30, 2019 , we were in compliance with the Leverage Ratio and the Interest Coverage Ratio covenants as defined in the Credit Agreement. At September 30, 2019 , we had $70.0 million outstanding under the Credit Agreement. Pursuant to the terms of the Credit Agreement, the outstanding principal balance will bear interest at either (a) a fluctuating rate per annum equal to the Applicable Rate, as defined in the Credit Agreement, depending on our leverage ratio plus the higher of (i) the federal funds rate plus one-half of one percent per annum; (ii) the prime rate in effect on such a day; and (iii) the LIBOR rate plus one percent, or (b) a fluctuating rate per annum of LIBOR Rate plus the Applicable Rate, which ranges between 1.75 % to 2.75 %. The effective interest rate during the nine months ended September 30, 2019 was 4.74% . The Credit Agreement matures on September 23, 2021, at which time all principal amounts outstanding under the Credit Agreement will be due and payable. As of September 30, 2019 , we have classified $35.0 million of the $70.0 million outstanding as short-term on our balance sheet due to our intent to repay this portion over the next twelve months. Long-term debt consists of (in thousands): September 30, 2019 December 31, 2018 Revolving credit facility $ 70,000 $ 105,000 Debt issuance costs (382 ) (526 ) Less: current portion of long-term debt 35,000 35,000 Total long-term debt $ 34,618 $ 69,474 Maturities of long-term debt as of September 30, 2019 are as follows (in thousands): September 30, 2019 December 31, 2018 2019 $ — $ — 2020 — — 2021 70,000 105,000 Thereafter — — Total $ 70,000 $ 105,000 As of September 30, 2019 , the carrying value of total debt approximated fair market value. |
Financial Instruments and Deriv
Financial Instruments and Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Derivatives | Financial Instruments and Derivatives We use interest rate swap derivative instruments to reduce earnings volatility and manage cash flow exposure resulting from changes in interest rates. These interest rate swaps apply a fixed interest rate on a portion of our expected LIBOR-indexed floating-rate borrowings. We held the following interest rate swaps as of September 30, 2019 (in thousands): Hedged Item Current Notional Amount Designation Date Effective Date Termination Date Fixed Interest Rate Floating Rate Estimated Fair Value 1-month USD LIBOR Loan $ 25,000 May 31, 2018 June 1, 2018 September 23, 2021 2.611% 1-month USD LIBOR $ 389 Total interest rate derivatives designated as cash flow hedge $ 25,000 $ 389 We have designated these derivative instruments as cash flow hedges. We assess the effectiveness of these derivative instruments and records the change in the fair value of a derivative instrument designated as a cash flow hedge as unrealized gains or losses in accumulated other comprehensive income (“AOCI”), net of tax. Once the hedged item affects earnings, the effective portion of any gain or loss will be reclassified to earnings. If the hedged cash flow does not occur, or if it becomes probable that it will not occur, we will reclassify the amount of any gain or loss on the related cash flow hedge to interest expense at that time. As of September 30, 2019 , we estimate that approximately $154.0 |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating and finance leases for offices, warehouses, and certain equipment. The leases have remaining lease terms of one to eight years , some of which include options to extend the leases for up to ten years . Our leases do not have any residual value guarantees or any restrictions or covenants imposed by leases. Components of lease cost were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2019 Operating lease cost $ 1,719 $ 5,144 Finance lease cost: Amortization of right-of-use assets (principal payments) 115 380 Interest on lease liabilities 13 49 Short-term lease cost — 51 Variable lease cost 922 2,162 Sublease income (46 ) (135 ) Total lease cost $ 2,723 $ 7,651 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,455 $ 10,212 Operating cash flows from finance leases 38 104 Financing cash flows from finance leases 138 404 Right-of-use assets obtained in exchange for lease obligations: Operating leases 774 2,494 Finance leases 123 228 Supplemental balance sheet information related to leases was as follows (in thousands): September 30, 2019 Operating Leases Operating lease right-of-use assets $ 16,059 Current portion of operating lease liabilities $ 5,901 Operating lease liabilities 13,112 Total operating lease liabilities $ 19,013 Finance Leases Property and equipment, gross $ 2,884 Accumulated amortization 1,706 Property and equipment, net $ 1,178 Accrued liabilities $ 445 Other liabilities 779 Total finance lease liabilities $ 1,224 Weighted Average Remaining Lease Term Operating leases 3.9 years Finance leases 3.1 years Weighted Average Discount Rate Operating leases 5.3 % Finance leases 5.1 % As of September 30, 2019 , future minimum lease payments included in the measurement of lease liabilities on the consolidated balance sheet, for the following five fiscal years and thereafter, were as follows (in thousands): Year ending December 31, Operating Leases Finance Leases 2019 $ 6,614 $ 394 2020 5,322 329 2021 3,929 221 2022 2,607 122 2023 1,645 7 Thereafter 1,057 — Total lease payments 21,174 1,073 Less imputed interest (2,161 ) 151 Total $ 19,013 $ 1,224 As we elected to apply the provisions of Topic 842 on a prospective basis, the following comparative period disclosure is being presented in accordance with Topic 840. The future minimum commitments under our leases as of December 31, 2018 were as follows (in thousands): Year ending December 31, Operating Leases 2019 $ 8,092 2020 6,951 2021 5,290 2022 3,423 2023 2,426 Thereafter 1,365 Total minimum lease payments $ 27,547 |
Leases | Leases We have operating and finance leases for offices, warehouses, and certain equipment. The leases have remaining lease terms of one to eight years , some of which include options to extend the leases for up to ten years . Our leases do not have any residual value guarantees or any restrictions or covenants imposed by leases. Components of lease cost were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2019 Operating lease cost $ 1,719 $ 5,144 Finance lease cost: Amortization of right-of-use assets (principal payments) 115 380 Interest on lease liabilities 13 49 Short-term lease cost — 51 Variable lease cost 922 2,162 Sublease income (46 ) (135 ) Total lease cost $ 2,723 $ 7,651 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,455 $ 10,212 Operating cash flows from finance leases 38 104 Financing cash flows from finance leases 138 404 Right-of-use assets obtained in exchange for lease obligations: Operating leases 774 2,494 Finance leases 123 228 Supplemental balance sheet information related to leases was as follows (in thousands): September 30, 2019 Operating Leases Operating lease right-of-use assets $ 16,059 Current portion of operating lease liabilities $ 5,901 Operating lease liabilities 13,112 Total operating lease liabilities $ 19,013 Finance Leases Property and equipment, gross $ 2,884 Accumulated amortization 1,706 Property and equipment, net $ 1,178 Accrued liabilities $ 445 Other liabilities 779 Total finance lease liabilities $ 1,224 Weighted Average Remaining Lease Term Operating leases 3.9 years Finance leases 3.1 years Weighted Average Discount Rate Operating leases 5.3 % Finance leases 5.1 % As of September 30, 2019 , future minimum lease payments included in the measurement of lease liabilities on the consolidated balance sheet, for the following five fiscal years and thereafter, were as follows (in thousands): Year ending December 31, Operating Leases Finance Leases 2019 $ 6,614 $ 394 2020 5,322 329 2021 3,929 221 2022 2,607 122 2023 1,645 7 Thereafter 1,057 — Total lease payments 21,174 1,073 Less imputed interest (2,161 ) 151 Total $ 19,013 $ 1,224 As we elected to apply the provisions of Topic 842 on a prospective basis, the following comparative period disclosure is being presented in accordance with Topic 840. The future minimum commitments under our leases as of December 31, 2018 were as follows (in thousands): Year ending December 31, Operating Leases 2019 $ 8,092 2020 6,951 2021 5,290 2022 3,423 2023 2,426 Thereafter 1,365 Total minimum lease payments $ 27,547 |
Segment, Customer and Geographi
Segment, Customer and Geographic Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment, Customer and Geographic Information | Segment, Customer and Geographic Information We operate in one reportable segment in which we provide medical device solutions focused on the diagnosis and treatment of central nervous and sensory system disorders for patients of all ages. End-user customer base includes hospitals, clinics, laboratories, physicians, audiologists, and governmental agencies. Most of our international sales are to distributors who resell products to end users or sub-distributors. Revenue and long-lived asset information are as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Consolidated Revenue: United States $ 73,553 $ 77,980 $ 213,055 $ 222,135 International 49,910 52,658 150,704 167,765 Totals $ 123,463 $ 130,638 $ 363,759 $ 389,900 Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue by End Market: Neurology Products Devices and Systems $ 55,460 $ 50,635 $ 155,726 $ 146,991 Supplies 16,732 16,405 49,582 50,108 Services — 2,722 871 9,025 Total Neurology Revenue 72,192 69,762 206,179 206,124 Newborn Care Products Devices and Systems 12,487 17,876 39,747 52,326 Supplies 9,864 11,289 28,844 30,436 Services 4,654 5,055 14,514 15,935 Total Newborn Care Revenue 27,005 34,220 83,105 98,697 Hearing & Balance Products Devices and Systems 23,092 25,352 70,795 79,824 Supplies 1,174 1,304 3,680 5,255 Total Hearing & Balance Revenue 24,266 26,656 74,475 85,079 Total Revenue $ 123,463 $ 130,638 $ 363,759 $ 389,900 September 30, 2019 December 31, 2018 Property and equipment, net: United States $ 12,365 $ 10,019 Ireland 5,603 5,083 Canada 4,256 4,504 Denmark 1,753 1,371 Argentina — 999 Other countries 1,118 937 Totals $ 25,095 $ 22,913 During the three and nine months ended September 30, 2019 and 2018 , no single customer or country outside the United States contributed more than 10% of our consolidated revenue. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Fair value is defined under ASC 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes the following three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value: Level 1 - Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. On April 1, 2019, as part of the sale of our Argentinian subsidiary, Medix, we provided a loan to Medix for $2.2 million . This asset was measured at fair value less costs to sell as of September 30, 2019 and is classified as Level 3 asset. The loan is classified within other assets on our condensed consolidated balance sheet. Subsequent changes in the fair value of the loan receivable are recorded within our income statement as an operating expense. December 31, 2018 Additions Receipts Adjustments September 30, 2019 Other assets: Loan receivable $ — $ 2,200 $ — $ (294 ) $ 1,906 Total $ — $ 2,200 $ — $ (294 ) $ 1,906 The derivative financial instruments described in Note 13 are measured at fair value on a recurring basis and are presented on the consolidated balance sheets at fair value. We estimate the fair value of the interest rate swaps by calculating the present value of the expected future cash flows of each swap. The calculation incorporates the contractual terms of the derivatives, observable market interest rates which are considered to be Level 2 inputs, and credit risk adjustments, if any, to reflect the counterpart's as well as our nonperformance risk. As of September 30, 2019 , there have been no events of default under the interest rate swap agreement. The table below presents the fair value of the derivative financial instruments as well as the classification on the consolidated balance sheet (in thousands): December 31, 2018 Additions Payments Adjustments September 30, 2019 Liabilities: Interest rate swap $ 77 $ — $ — $ 312 $ 389 Total $ 77 $ — $ — $ 312 $ 389 The following financial instruments are not measured at fair value on our consolidated balance sheet as of September 30, 2019 and December 31, 2018 |
Sale of Certain Subsidiary Asse
Sale of Certain Subsidiary Assets Sale of Certain Subsidiary Assets | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Sale of Certain Subsidiary Assets | Sale of Certain Subsidiary We divested our wholly owned subsidiary, Medix SA, on April 2, 2019 via a stock sale. In exchange for the stock, we received $2.5 thousand in cash and provided Medix with a $2.2 million limited-recourse loan. The loan is secured by a real estate asset of Medix and repayment is conditional upon the sale of the real estate asset. The held for sale criteria under GAAP was met in the first quarter of 2019. As such, we completed an asset impairment analysis which resulted in the full impairment of all assets held for sale. We recognized an impairment loss of $24.6 million which included an accrual for the anticipated realization of deferred foreign currency related translation adjustments in accumulated other comprehensive income of $24.8 million , net of tax, and an adjustment of $4.6 million for assets with a book value in excess of their fair market value. Included in the nine months ended September 30, 2019 is the sale of Medix, which was completed as of June 30, 2019, and the deferred foreign currency related translation adjustments previously in accumulated other comprehensive income have been released from the balance sheet along with the held for sale accrual. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying interim condensed consolidated financial statements of Natus Medical Incorporated (“we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Except where noted below within Note 1, the accounting policies followed in the preparation of the interim condensed consolidated financial statements are consistent in all material respects with those presented in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Interim financial reports are prepared in accordance with the rules and regulations of the Securities and Exchange Commission; accordingly, the reports do not include all of the information and notes required by GAAP for annual financial statements. The interim financial information is unaudited, and reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, and cash flows for the interim periods presented. We have made certain reclassifications to the prior period to conform to current period presentation. The consolidated balance sheet as of December 31, 2018 was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The accompanying condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This standard requires lease assets and lease liabilities arising from operating leases to be presented in the statement of financial position. Qualitative along with specific quantitative disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. In July 2018, FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases, which affects narrow aspects of the guidance issued in the amendments in Update 2016-02. In July 2018, the FASB also issued ASU 2018-11, Targeted Improvements. The amendments in ASU 2018-11 provide additional clarification and implementation guidance on certain aspects of the previously issued ASU 2016-02 and have the same effective and transition requirements as ASU 2016-02. The new standard provides a number of optional practical expedients in transition. We have elected the package of practical expedients, which permits an entity to not reassess prior conclusions about lease identification, lease classification and initial direct costs under the new standard. We have not elected the use-of-hindsight practical expedient or the practical expedient pertaining to land easements; the latter of which is not applicable to us. We made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. We will recognize those lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The new standard became effective for us on January 1, 2019. We adopted the new standard using the modified retrospective transition method with the effective date as the date of initial application. Upon adoption, we recognized additional new lease assets of approximately $19.5 million and additional lease liabilities of approximately $22.3 million as of January 1, 2019. The standard did not materially affect consolidated net earnings. By electing the effective date as the date of initial application, financial performance has not been adjusted and the disclosures required under the new standard have not been provided for periods prior to January 1, 2019. See Significant Accounting Policies and Note 14 for additional discussion and disclosure. The adoption of the new standard did not impact our liquidity or debt-covenant compliance under its current agreements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for our annual and any interim goodwill impairment tests performed on or after January 1, 2020. We elected to early adopt. The adoption of ASU 2017-04 did not have an impact on our consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This update permits a company to reclassify its disproportionate income tax effects of the Tax Cuts and Jobs Act of 2017 (the “2017 Act”) on items within accumulated other comprehensive income (“AOCI”) to retained earnings (termed “stranded tax effects”). Only the stranded tax effects resulting from the 2017 Act are eligible for reclassification. The ASU was effective for us as of January 1, 2019. Upon adoption, we reclassified its stranded tax effects resulting from the 2017 Act of $1.3 million , resulting in a decrease to AOCI and an increase to retained earnings as of January 1, 2019. Recent Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Credit Losses (Topic 326). This update requires financial assets measured at amortized cost, such as trade receivables and contract assets, to be presented net of expected credit losses, which may be estimated based on relevant information such as historical experience, current conditions, and future expectation for each pool of similar financial assets. The new guidance requires enhanced disclosures related to trade receivables and associated credit losses. In May 2019, the FASB issued ASU 2019-05 which provides targeted transition relief guidance intended to increase comparability of financial statement information. The guidance for both of these is effective beginning January 1, 2020. We are evaluating the impact, if any, that these pronouncements will have on our consolidated financial statements. |
Leases | We determine if an arrangement is a lease at inception of the lease. Right-of-use (“ROU”) assets represent the right to use an underlying asset for the lease term, and lease liabilities represent an obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit borrowing rate, generally we use an incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the lease commencement date. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to exclude or terminate the lease when it is reasonably certain that they will exercise that option. Lease expense for lease payments are recognized on a straight-line basis over the lease term. Operating leases are included in operating lease ROU assets, accrued liabilities, and operating lease liabilities in our consolidated balance sheet. Finance leases are included in property and equipment, accrued liabilities, and other liabilities in the consolidated balance sheet. We have lease agreements with lease and non-lease components, which are generally accounted for based on the type of asset. For real estate and telecom leases, we account for these components separately. For equipment leases, such as office equipment and vehicles, we account for the lease and non-lease components as a single lease component. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of contract assets and liabilities | The following table summarizes the changes in the unbilled AR and deferred revenue balances for the nine months ended September 30, 2019 (in thousands): Unbilled AR, December 31, 2018 $ 3,012 Additions 235 Transferred to Trade Receivable (687 ) Unbilled AR, September 30, 2019 $ 2,560 Deferred Revenue, December 31, 2018 $ 21,410 Additions 16,589 Revenue Recognized (14,246 ) Deferred Revenue, September 30, 2019 $ 23,753 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The components of basic and diluted EPS are as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net income (loss) $ 8,461 $ (5,576 ) $ (17,352 ) $ (11,301 ) Weighted average common shares 33,655 33,321 33,666 32,982 Dilutive effect of stock based awards 83 — — — Diluted Shares 33,738 33,321 33,666 32,982 Basic income (loss) per share $ 0.25 $ (0.17 ) $ (0.52 ) $ (0.34 ) Diluted income (loss) per share $ 0.25 $ (0.17 ) $ (0.52 ) $ (0.34 ) Shares excluded from calculation of diluted EPS — 230 105 407 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consist of the following (in thousands): September 30, 2019 December 31, 2018 Raw materials and subassemblies $ 40,464 $ 31,459 Work in process 2,629 2,424 Finished goods 54,857 63,932 Total inventories 97,950 97,815 Less: Non-current inventories (22,843 ) (18,079 ) Inventories, current $ 75,107 $ 79,736 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization expense related to intangible assets with definite lives | The following table summarizes the components of gross and net intangible asset balances (in thousands): September 30, 2019 December 31, 2018 Gross Accumulated Accumulated Net Book Gross Accumulated Accumulated Net Book Intangible assets with definite lives: Technology $ 109,075 $ (6,619 ) $ (54,404 ) $ 48,052 $ 111,198 $ (6,768 ) $ (50,046 ) $ 54,384 Customer related 97,440 (50 ) (46,100 ) 51,290 99,440 (1,961 ) (38,574 ) 58,905 Trade names 46,605 (3,774 ) (24,035 ) 18,796 47,217 (4,397 ) (19,250 ) 23,570 Internally developed software 16,524 — (15,780 ) 744 16,264 — (14,164 ) 2,100 Patents 2,664 (133 ) (2,531 ) — 2,718 (133 ) (2,524 ) 61 Service Agreements 1,190 — (1,064 ) 126 1,190 — (757 ) 433 Definite-lived intangible assets $ 273,498 $ (10,576 ) $ (143,914 ) $ 119,008 $ 278,027 $ (13,259 ) $ (125,315 ) $ 139,453 |
Amortization expense | Amortization expense related to intangible assets with definite lives was as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Technology $ 1,719 $ 2,028 $ 5,186 $ 6,405 Customer related 2,159 2,596 6,509 7,779 Trade names 1,487 1,553 4,476 4,635 Internally developed software 359 545 1,369 1,603 Patents 20 20 60 64 Service Agreements $ 102 $ 165 307 651 Total amortization $ 5,846 $ 6,907 $ 17,907 $ 21,137 |
Expected amortization expense related to amortizable intangible assets | Expected amortization expense related to definite-lived amortizable intangible assets is as follows (in thousands): Three months ending December 31, 2019 $ 5,378 2020 21,455 2021 20,568 2022 17,134 2023 16,164 2024 14,300 Thereafter 24,009 Total expected amortization expense $ 119,008 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying amount of Goodwill | The carrying amount of goodwill and the changes in the balance are as follows (in thousands): December 31, 2018 $ 147,644 Foreign currency translation (1,500 ) September 30, 2019 $ 146,144 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment net | Property and equipment, net consist of the following (in thousands): September 30, 2019 December 31, 2018 Land $ 1,718 $ 1,828 Buildings 6,629 7,036 Leasehold improvements 8,479 4,649 Finance lease right-of-use assets 2,884 — Equipment and furniture 22,820 23,487 Computer software and hardware 12,315 12,803 Demonstration and loaned equipment 12,074 12,843 66,919 62,646 Accumulated depreciation (41,824 ) (39,733 ) Total $ 25,095 $ 22,913 |
Reserve for Product Warranties
Reserve for Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Reserve for Product Warranties | The details of activity in the warranty reserve are as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Balance, beginning of period $ 8,076 $ 10,913 $ 9,391 $ 10,995 Additions charged to expense 911 792 3,159 3,127 Utilizations (1,560 ) (945 ) (4,543 ) (2,003 ) Changes in estimate related to product remediation activities — (1,695 ) (571 ) (3,054 ) Divestiture adjustments — — (9 ) — Balance, end of period $ 7,427 $ 9,065 $ 7,427 $ 9,065 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Expense | Details of share-based compensation expense are as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ 37 $ 42 $ 193 $ 181 Marketing and selling 161 207 600 603 Research and development 270 278 773 827 General and administrative 1,384 1,056 4,705 4,895 Restructuring — 8,231 — 8,940 Total $ 1,852 $ 9,814 $ 6,271 $ 15,446 |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), net | Other income (expense), net consists of (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest income $ 93 $ 318 $ 239 $ 324 Interest expense (1,172 ) (1,649 ) (4,167 ) (5,250 ) Foreign currency gain (loss) (397 ) 572 (860 ) 337 Other expense (133 ) 33 (133 ) (355 ) Total other expense, net $ (1,609 ) $ (726 ) $ (4,921 ) $ (4,944 ) |
Debt and Credit Arrangements (T
Debt and Credit Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term debt | Long-term debt consists of (in thousands): September 30, 2019 December 31, 2018 Revolving credit facility $ 70,000 $ 105,000 Debt issuance costs (382 ) (526 ) Less: current portion of long-term debt 35,000 35,000 Total long-term debt $ 34,618 $ 69,474 |
Financial Instruments and Der_2
Financial Instruments and Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of interest rate swaps | held the following interest rate swaps as of September 30, 2019 (in thousands): Hedged Item Current Notional Amount Designation Date Effective Date Termination Date Fixed Interest Rate Floating Rate Estimated Fair Value 1-month USD LIBOR Loan $ 25,000 May 31, 2018 June 1, 2018 September 23, 2021 2.611% 1-month USD LIBOR $ 389 Total interest rate derivatives designated as cash flow hedge $ 25,000 $ 389 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Components of lease cost were as follows (in thousands): Three Months Ended Nine Months Ended 2019 2019 Operating lease cost $ 1,719 $ 5,144 Finance lease cost: Amortization of right-of-use assets (principal payments) 115 380 Interest on lease liabilities 13 49 Short-term lease cost — 51 Variable lease cost 922 2,162 Sublease income (46 ) (135 ) Total lease cost $ 2,723 $ 7,651 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended 2019 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,455 $ 10,212 Operating cash flows from finance leases 38 104 Financing cash flows from finance leases 138 404 Right-of-use assets obtained in exchange for lease obligations: Operating leases 774 2,494 Finance leases 123 228 |
Assets and Liabilities, Lessee [Table Text Block] | Supplemental balance sheet information related to leases was as follows (in thousands): September 30, 2019 Operating Leases Operating lease right-of-use assets $ 16,059 Current portion of operating lease liabilities $ 5,901 Operating lease liabilities 13,112 Total operating lease liabilities $ 19,013 Finance Leases Property and equipment, gross $ 2,884 Accumulated amortization 1,706 Property and equipment, net $ 1,178 Accrued liabilities $ 445 Other liabilities 779 Total finance lease liabilities $ 1,224 Weighted Average Remaining Lease Term Operating leases 3.9 years Finance leases 3.1 years Weighted Average Discount Rate Operating leases 5.3 % Finance leases 5.1 % |
Finance Lease, Liability, Maturity [Table Text Block] | As of September 30, 2019 , future minimum lease payments included in the measurement of lease liabilities on the consolidated balance sheet, for the following five fiscal years and thereafter, were as follows (in thousands): Year ending December 31, Operating Leases Finance Leases 2019 $ 6,614 $ 394 2020 5,322 329 2021 3,929 221 2022 2,607 122 2023 1,645 7 Thereafter 1,057 — Total lease payments 21,174 1,073 Less imputed interest (2,161 ) 151 Total $ 19,013 $ 1,224 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of September 30, 2019 , future minimum lease payments included in the measurement of lease liabilities on the consolidated balance sheet, for the following five fiscal years and thereafter, were as follows (in thousands): Year ending December 31, Operating Leases Finance Leases 2019 $ 6,614 $ 394 2020 5,322 329 2021 3,929 221 2022 2,607 122 2023 1,645 7 Thereafter 1,057 — Total lease payments 21,174 1,073 Less imputed interest (2,161 ) 151 Total $ 19,013 $ 1,224 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The future minimum commitments under our leases as of December 31, 2018 were as follows (in thousands): Year ending December 31, Operating Leases 2019 $ 8,092 2020 6,951 2021 5,290 2022 3,423 2023 2,426 Thereafter 1,365 Total minimum lease payments $ 27,547 |
Segment, Customer and Geograp_2
Segment, Customer and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenue and Long-lived Asset Information by Geographic Region | Revenue and long-lived asset information are as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Consolidated Revenue: United States $ 73,553 $ 77,980 $ 213,055 $ 222,135 International 49,910 52,658 150,704 167,765 Totals $ 123,463 $ 130,638 $ 363,759 $ 389,900 Three Months Ended Nine Months Ended 2019 2018 2019 2018 Revenue by End Market: Neurology Products Devices and Systems $ 55,460 $ 50,635 $ 155,726 $ 146,991 Supplies 16,732 16,405 49,582 50,108 Services — 2,722 871 9,025 Total Neurology Revenue 72,192 69,762 206,179 206,124 Newborn Care Products Devices and Systems 12,487 17,876 39,747 52,326 Supplies 9,864 11,289 28,844 30,436 Services 4,654 5,055 14,514 15,935 Total Newborn Care Revenue 27,005 34,220 83,105 98,697 Hearing & Balance Products Devices and Systems 23,092 25,352 70,795 79,824 Supplies 1,174 1,304 3,680 5,255 Total Hearing & Balance Revenue 24,266 26,656 74,475 85,079 Total Revenue $ 123,463 $ 130,638 $ 363,759 $ 389,900 September 30, 2019 December 31, 2018 Property and equipment, net: United States $ 12,365 $ 10,019 Ireland 5,603 5,083 Canada 4,256 4,504 Denmark 1,753 1,371 Argentina — 999 Other countries 1,118 937 Totals $ 25,095 $ 22,913 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of the derivative financial instrument | December 31, 2018 Additions Receipts Adjustments September 30, 2019 Other assets: Loan receivable $ — $ 2,200 $ — $ (294 ) $ 1,906 Total $ — $ 2,200 $ — $ (294 ) $ 1,906 December 31, 2018 Additions Payments Adjustments September 30, 2019 Liabilities: Interest rate swap $ 77 $ — $ — $ 312 $ 389 Total $ 77 $ — $ — $ 312 $ 389 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 16,059 | $ 0 | |
Operating Lease, Liability | $ 19,013 | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 19,500 | ||
Operating Lease, Liability | 22,300 | ||
ASU 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment | 0 | ||
Retained Earnings [Member] | ASU 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment | $ 1,332 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Short-term contract liability | $ 19.2 |
Long-term contract liability | $ 4.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction for remaining performance obligation | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 7.2 |
Expected timing of satisfaction for remaining performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 12.6 |
Expected timing of satisfaction for remaining performance obligation | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1.9 |
Expected timing of satisfaction for remaining performance obligation | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1 |
Expected timing of satisfaction for remaining performance obligation | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1 |
Expected timing of satisfaction for remaining performance obligation |
Revenue - Unbilled AR and Defer
Revenue - Unbilled AR and Deferred Revenue (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Movement in Deferred Revenue [Roll Forward] | ||
Deferred Revenue, December 31, 2018 | $ 21,410 | |
Additions | $ 16,589 | |
Revenue Recognized | $ (14,246) | |
Deferred Revenue, March 31, 2019 | 23,753 | |
Unbilled AR | ||
Movement in Unbilled AR [Roll Forward] | ||
Unbilled AR, December 31, 2018 | 3,012 | |
Additions | 235 | |
Transferred to Trade Receivable | (687) | |
Unbilled AR, March 31, 2019 | $ 2,560 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||||
Net loss | $ 8,461 | $ 4,188 | $ (30,001) | $ (5,576) | $ (2,577) | $ (3,148) | $ (17,352) | $ (11,301) |
Weighted average common shares (in shares) | 33,655 | 33,321 | 33,666 | 32,982 | ||||
Dilutive effect of stock based awards (in shares) | 83 | 0 | 0 | 0 | ||||
Diluted Shares (in shares) | 33,738 | 33,321 | 33,666 | 32,982 | ||||
Basic earnings per share (dollars per share) | $ 0.25 | $ (0.17) | $ (0.52) | $ (0.34) | ||||
Diluted earnings per share (dollars per share) | $ 0.25 | $ (0.17) | $ (0.52) | $ (0.34) | ||||
Diluted earnings per share (in shares) | 0 | 230 | 105 | 407 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summary of Inventories | ||
Raw materials and subassemblies | $ 40,464 | $ 31,459 |
Work in process | 2,629 | 2,424 |
Finished goods | 54,857 | 63,932 |
Total inventories | 97,950 | 97,815 |
Less: Non-current inventories | (22,843) | (18,079) |
Inventories, current | $ 75,107 | $ 79,736 |
Intangible Assets - Components
Intangible Assets - Components of Gross and Net Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 273,498 | $ 278,027 |
Accumulated Impairment | (10,576) | (13,259) |
Accumulated Amortization | (143,914) | (125,315) |
Net Book Value | 119,008 | 139,453 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 109,075 | 111,198 |
Accumulated Impairment | (6,619) | (6,768) |
Accumulated Amortization | (54,404) | (50,046) |
Net Book Value | 48,052 | 54,384 |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 97,440 | 99,440 |
Accumulated Impairment | (50) | (1,961) |
Accumulated Amortization | (46,100) | (38,574) |
Net Book Value | 51,290 | 58,905 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 46,605 | 47,217 |
Accumulated Impairment | (3,774) | (4,397) |
Accumulated Amortization | (24,035) | (19,250) |
Net Book Value | 18,796 | 23,570 |
Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 16,524 | 16,264 |
Accumulated Impairment | 0 | 0 |
Accumulated Amortization | (15,780) | (14,164) |
Net Book Value | 744 | 2,100 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,664 | 2,718 |
Accumulated Impairment | (133) | (133) |
Accumulated Amortization | (2,531) | (2,524) |
Net Book Value | 0 | 61 |
Service Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,190 | 1,190 |
Accumulated Impairment | 0 | 0 |
Accumulated Amortization | (1,064) | (757) |
Net Book Value | $ 126 | $ 433 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | $ 5,846,000 | $ 6,907,000 | $ 17,907,000 | $ 21,137,000 |
Useful life (in years) | 11 years | |||
Technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 1,719,000 | 2,028,000 | $ 5,186,000 | 6,405,000 |
Useful life (in years) | 14 years | |||
Customer related | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 2,159,000 | 2,596,000 | $ 6,509,000 | 7,779,000 |
Useful life (in years) | 10 years | |||
Trade names | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 1,487,000 | 1,553,000 | $ 4,476,000 | 4,635,000 |
Useful life (in years) | 7 years | |||
Internally developed software | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 359,000 | 545,000 | $ 1,369,000 | 1,603,000 |
Useful life (in years) | 6 years | |||
Costs incurred for development of internal use computer software | 14,300,000 | $ 14,300,000 | ||
Costs incurred for development of software to be sold | 2,200,000 | 2,200,000 | ||
Patents | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 20,000 | 20,000 | $ 60,000 | 64,000 |
Useful life (in years) | 13 years | |||
Service Agreements | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 102,000 | $ 165,000 | $ 307,000 | $ 651,000 |
Useful life (in years) | 2 years | |||
General and administrative | Internally developed software | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | $ 200,000 | $ 1,200,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | $ 5,846 | $ 6,907 | $ 17,907 | $ 21,137 |
Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 1,719 | 2,028 | 5,186 | 6,405 |
Customer related | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 2,159 | 2,596 | 6,509 | 7,779 |
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 1,487 | 1,553 | 4,476 | 4,635 |
Internally developed software | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 359 | 545 | 1,369 | 1,603 |
Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | 20 | 20 | 60 | 64 |
Service Agreements | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total amortization | $ 102 | $ 165 | $ 307 | $ 651 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Expected Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Expected annual amortization expense related to amortizable intangible assets | ||
Three months ending December 31, 2019 | $ 5,378 | |
2019 | 21,455 | |
2020 | 20,568 | |
2021 | 17,134 | |
2022 | 16,164 | |
2023 | 14,300 | |
Thereafter | 24,009 | |
Net Book Value | $ 119,008 | $ 139,453 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Carrying amount of goodwill | |
December 31, 2018 | $ 147,644 |
Foreign currency translation | (1,500) |
September 30, 2019 | $ 146,144 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 66,919 | $ 66,919 | $ 62,646 | ||
Finance Lease, Right-of-Use Asset | 2,884 | 2,884 | 0 | ||
Accumulated depreciation | (41,824) | (41,824) | (39,733) | ||
Total | 25,095 | 25,095 | 22,913 | ||
Depreciation | 1,600 | $ 2,000 | 4,900 | $ 4,400 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 1,718 | 1,718 | 1,828 | ||
Buildings | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 6,629 | 6,629 | 7,036 | ||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 8,479 | 8,479 | 4,649 | ||
Equipment and furniture | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 22,820 | 22,820 | 23,487 | ||
Computer software and hardware | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 12,315 | 12,315 | 12,803 | ||
Demonstration and loaned equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 12,074 | $ 12,074 | $ 12,843 |
Reserve for Product Warrantie_2
Reserve for Product Warranties - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | ||||||
Product warranty period (in years) | 1 year | |||||
Product Liability Contingency [Line Items] | ||||||
Accrual of estimated costs | $ 7,427 | $ 8,076 | $ 9,391 | $ 9,065 | $ 10,913 | $ 10,995 |
Certain products | ||||||
Product Liability Contingency [Line Items] | ||||||
Accrual of estimated costs | $ 2,400 |
Reserve for Product Warrantie_3
Reserve for Product Warranties - Schedule of Warranty Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reserve for Product Warranties | ||||
Balance, beginning of period | $ 8,076 | $ 10,913 | $ 9,391 | $ 10,995 |
Additions charged to expense | 911 | 792 | 3,159 | 3,127 |
Utilizations | (1,560) | (945) | (4,543) | (2,003) |
Changes in estimate related to product remediation activities | 0 | (1,695) | (571) | (3,054) |
Standard and Extended Product Warranty Accrual, Decrease for Divestiture | 0 | 0 | (9) | 0 |
Balance, end of period | $ 7,427 | $ 9,065 | $ 7,427 | $ 9,065 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2019USD ($) | Jun. 30, 2019plan | |
Share-based Payment Arrangement [Abstract] | ||
Number of active share based compensation plans | plan | 2 | |
Unrecognized compensation expense related to unvested portion of stock options | $ | $ 12.3 | |
Weighted average period of recognition of unrecognized compensation expense | 2 years 1 month 6 days |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 1,852 | $ 9,814 | $ 6,271 | $ 15,446 |
Cost of revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 37 | 42 | 193 | 181 |
Marketing and selling | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 161 | 207 | 600 | 603 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 270 | 278 | 773 | 827 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,384 | 1,056 | 4,705 | 4,895 |
Restructuring | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 0 | $ 8,231 | $ 0 | $ 8,940 |
Other Income (Expense), net (De
Other Income (Expense), net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other expense, net | ||||
Interest income | $ 93 | $ 318 | $ 239 | $ 324 |
Interest expense | (1,172) | (1,649) | (4,167) | (5,250) |
Foreign currency gain (loss) | (397) | 572 | (860) | 337 |
Other expense | (133) | 33 | (133) | (355) |
Total other expense, net | $ (1,609) | $ (726) | $ (4,921) | $ (4,944) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Provision for income tax benefit | $ (1,981,000) | $ 1,940,000 | $ (9,596,000) | $ (3,069,000) |
Effective income tax rate | (30.60%) | (53.40%) | 35.60% | 21.40% |
tax benefit related to unrecognized tax benefits due to the lapse of applicable statute of limitations | $ 600,000 | |||
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Possible of uncertain tax benefit within the next twelve months | $ 0 | 0 | ||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Possible of uncertain tax benefit within the next twelve months | $ 400,000 | 400,000 | ||
Medix Medical Devices, SRL [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Tax related to divestiture | $ 8,200,000 |
Debt and Credit Arrangements -
Debt and Credit Arrangements - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Revolving credit facility | $ 70,000,000 | $ 105,000,000 |
Current portion of long-term debt | $ 35,000,000 | |
Revolving credit facility | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Revolving credit facility | 70,000,000 | |
Credit Agreement | Citibank, National Association | ||
Line of Credit Facility [Line Items] | ||
Aggregate secured revolving credit facility | $ 225,000,000 | |
All-in rate | 4.74% | |
Credit Agreement | Citibank, National Association | Federal Funds Rate | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 0.50% | |
Credit Agreement | Citibank, National Association | LIBOR rate | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 1.00% | |
Credit Agreement | Citibank, National Association | Maximum | ||
Line of Credit Facility [Line Items] | ||
Leverage Ratio | 2.75 | |
Credit Agreement | Citibank, National Association | Maximum | LIBOR rate | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 275.00% | |
Credit Agreement | Citibank, National Association | Minimum | ||
Line of Credit Facility [Line Items] | ||
Interest Coverage Ratio | 1.75 | |
Credit Agreement | Citibank, National Association | Minimum | LIBOR rate | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 175.00% |
Debt and Credit Arrangements _2
Debt and Credit Arrangements - Schedule of Long-term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2019 | $ 0 | $ 0 |
2020 | 0 | 0 |
2021 | 70,000 | 105,000 |
Thereafter | 0 | 0 |
Revolving credit facility | 70,000 | 105,000 |
Debt issuance costs | (382) | (526) |
Less: current portion of long-term debt | 35,000 | 35,000 |
Total long-term debt | 34,618 | $ 69,474 |
Revolving credit facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 70,000 |
Financial Instruments and Der_3
Financial Instruments and Derivatives (Details) | Sep. 30, 2019USD ($) |
Derivative [Line Items] | |
Losses associated with cash flow hedge expected to be reclassified within the next 12 months | $ 154,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |
Derivative [Line Items] | |
Current Notional Amount | $ 25,000,000 |
Fixed Interest Rate | 2.611% |
Estimated Fair Value | $ 389,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Sep. 30, 2019 |
Operating Leased Assets [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 10 months 24 days |
Lessee, Operating Lease, Renewal Term | 10 years |
Minimum | |
Operating Leased Assets [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 1 year |
Maximum | |
Operating Leased Assets [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 1,719 | $ 5,144 |
Finance Lease, Right-of-Use Asset, Amortization | 115 | 380 |
Finance Lease, Interest Expense | 13 | 49 |
Short-term Lease, Cost | 0 | 51 |
Variable Lease, Cost | 922 | 2,162 |
Sublease Income | (46) | (135) |
Lease, Cost | $ 2,723 | $ 7,651 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | |||
Operating Lease, Payments | $ 3,455 | $ 10,212 | |
Finance Lease, Interest Payment on Liability | 38 | 104 | |
Finance Lease, Principal Payments | 138 | 404 | $ 0 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 774 | 2,494 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 123 | $ 228 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 16,059,000 | $ 0 |
Current portion of operating lease liabilities | 5,901,000 | 0 |
Operating lease liabilities | 13,112,000 | $ 0 |
Operating Lease, Liability | 19,013,000 | |
Finance Lease, Right-Of-Use Asset, Gross | 2,884,000 | |
Finance Lease, Right-Of-Use Asset, Accumulated Depreciation | 1,706,000 | |
Finance Lease, Right-of-Use Asset | 1,178,000 | |
Finance Lease, Liability, Current | 445,000 | |
Finance Lease, Liability, Noncurrent | 779,000 | |
Finance Lease, Liability | $ 1,224,000 | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 10 months 24 days | |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 1 month 6 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.30% | |
Finance Lease, Weighted Average Discount Rate, Percent | 5.10% |
Leases - Lease Maturities (Deta
Leases - Lease Maturities (Details) | Sep. 30, 2019USD ($) |
Operating Leases | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 6,614,000 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 5,322,000 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 3,929,000 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 2,607,000 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1,645,000 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 1,057,000 |
Lessee, Operating Lease, Liability, Payments, Due | 21,174,000 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (2,161,000) |
Operating Lease, Liability | 19,013,000 |
Finance Leases | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 394,000 |
Finance Lease, Liability, Payments, Due Year Two | 329,000 |
Finance Lease, Liability, Payments, Due Year Three | 221,000 |
Finance Lease, Liability, Payments, Due Year Four | 122,000 |
Finance Lease, Liability, Payments, Due Year Five | 7,000 |
Finance Lease, Liability, Payments, Due after Year Five | 0 |
Finance Lease, Liability, Payment, Due | 1,073,000 |
Finance Lease, Liability, Undiscounted Excess Amount | 151,000 |
Finance Lease, Liability | $ 1,224,000 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Details) | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 8,092,000 |
Operating Leases, Future Minimum Payments, Due in Two Years | 6,951,000 |
Operating Leases, Future Minimum Payments, Due in Three Years | 5,290,000 |
Operating Leases, Future Minimum Payments, Due in Four Years | 3,423,000 |
Operating Leases, Future Minimum Payments, Due in Five Years | 2,426,000 |
Operating Leases, Future Minimum Payments, Due Thereafter | 1,365,000 |
Operating Leases, Future Minimum Payments Due | $ 27,547,000 |
Segment, Customer and Geograp_3
Segment, Customer and Geographic Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments (segments) | 1 |
Segment, Customer and Geograp_4
Segment, Customer and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Consolidated Revenue: | |||||
Revenue | $ 123,463 | $ 130,638 | $ 363,759 | $ 389,900 | |
Revenue by End Market: | |||||
Total Revenue | 123,463 | 130,638 | 363,759 | 389,900 | |
Property and equipment, net: | |||||
Property and equipment, net | 25,095 | 25,095 | $ 22,913 | ||
Neurology Products | |||||
Revenue by End Market: | |||||
Total Revenue | 72,192 | 69,762 | 206,179 | 206,124 | |
Neurology Products | Devices and Systems | |||||
Revenue by End Market: | |||||
Total Revenue | 55,460 | 50,635 | 155,726 | 146,991 | |
Neurology Products | Supplies | |||||
Revenue by End Market: | |||||
Total Revenue | 16,732 | 16,405 | 49,582 | 50,108 | |
Neurology Products | Services | |||||
Revenue by End Market: | |||||
Total Revenue | 0 | 2,722 | 871 | 9,025 | |
Newborn Care Products | |||||
Revenue by End Market: | |||||
Total Revenue | 27,005 | 34,220 | 83,105 | 98,697 | |
Newborn Care Products | Devices and Systems | |||||
Revenue by End Market: | |||||
Total Revenue | 12,487 | 17,876 | 39,747 | 52,326 | |
Newborn Care Products | Supplies | |||||
Revenue by End Market: | |||||
Total Revenue | 9,864 | 11,289 | 28,844 | 30,436 | |
Newborn Care Products | Services | |||||
Revenue by End Market: | |||||
Total Revenue | 4,654 | 5,055 | 14,514 | 15,935 | |
Hearing & Balance Products | |||||
Revenue by End Market: | |||||
Total Revenue | 24,266 | 26,656 | 74,475 | 85,079 | |
Hearing & Balance Products | Devices and Systems | |||||
Revenue by End Market: | |||||
Total Revenue | 23,092 | 25,352 | 70,795 | 79,824 | |
Hearing & Balance Products | Supplies | |||||
Revenue by End Market: | |||||
Total Revenue | 1,174 | 1,304 | 3,680 | 5,255 | |
United States | |||||
Consolidated Revenue: | |||||
Revenue | 73,553 | 77,980 | 213,055 | 222,135 | |
Property and equipment, net: | |||||
Property and equipment, net | 12,365 | 12,365 | 10,019 | ||
International | |||||
Consolidated Revenue: | |||||
Revenue | 49,910 | $ 52,658 | 150,704 | $ 167,765 | |
Property and equipment, net: | |||||
Property and equipment, net | 1,118 | 1,118 | 937 | ||
Canada | |||||
Property and equipment, net: | |||||
Property and equipment, net | 4,256 | 4,256 | 4,504 | ||
Denmark | |||||
Property and equipment, net: | |||||
Property and equipment, net | 1,753 | 1,753 | 1,371 | ||
Long-Lived Assets | 5,603 | 5,603 | 5,083 | ||
Argentina | |||||
Property and equipment, net: | |||||
Property and equipment, net | $ 0 | $ 0 | $ 999 |
Fair Value Measurements - Relat
Fair Value Measurements - Related Party Loan Receivable (Details) - Medix Medical Devices, SRL [Member] - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Aug. 02, 2019 | Apr. 01, 2019 | |
Long Lived Assets Held-for-sale [Line Items] | |||
Loan receivable | $ 2,200 | ||
Level III | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Loan receivable | $ 0 | $ 2,200 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
December 31, 2018 | 0 | ||
Additions | 2,200 | ||
Receipts | 0 | ||
Adjustments | (294) | ||
September 30, 2019 | $ 1,906 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Derivative Financial Instruments at Fair Value (Details) - Level II - Recurring $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Derivative Liability [Roll Forward] | |
December 31, 2018 | $ 77 |
Additions | 0 |
Payments | 0 |
Adjustments | 312 |
September 30, 2019 | $ 389 |
Sale of Certain Subsidiary As_2
Sale of Certain Subsidiary Assets (Details) - USD ($) | Apr. 02, 2019 | Sep. 30, 2019 | Aug. 02, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (21,166,000) | $ (38,032,000) | ||
Medix Medical Devices, SRL [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 2,500 | |||
Loan receivable | $ 2,200,000 | |||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | 24,600,000 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 24,800,000 | |||
Assets, Fair Value Adjustment | $ 4,600,000 |
Uncategorized Items - ntus93019
Label | Element | Value |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (3,919,000) |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (3,919,000) |
Accounting Standards Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,332,000) |