Sale of Certain Subsidiary Assets Sale of Certain Subsidiary Assets
|6 Months Ended|
Jun. 30, 2019
|Related Party Transactions [Abstract]|
|Sale of Certain Subsidiary Assets||Sale of Certain Subsidiary
As part of the One Natus restructuring initiative, the Company divested its wholly owned subsidiary, Medix SA, on April 2, 2019 via a stock sale. In exchange for the stock, the Company received $2,500 in cash and provided Medix with a $2.2 million limited-recourse loan. The loan is secured by a specific asset of Medix and repayment is conditional upon the sale of the asset.
The held for sale criteria under GAAP was met in the first quarter of 2019. As such, the Company completed an asset impairment analysis which resulted in the full impairment of all assets held for sale. The Company 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. As of June 30, 2019, the sale is final 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.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef