Acquisition and Other Expense

12 Months Ended

Dec. 31, 2019

Acquisition and Other Expense [Abstract]

Acquisition and Other Expense [Text Block]

Acquisition and Other Expense

Acquisition and other expense for the year ended December 31, consists of the following:



	2019		2018		2017
Business acquisition costs	$	1,335	$	—	$	—
Manufacturing consolidation costs	2,858		—		2,903
Acquisition and other expense included in cost of sales	$	4,193	$	—	$	2,903

Business acquisition costs	$	13,066	$	2,372	$	2,336
Restructuring costs	—		—		1,347
Legal matters	—		—		17,480
Acquisition and other expense included in selling and administrative expense	$	13,066	$	2,372	$	21,163

Impairment charges included in research and development expense	$	—	$	4,212	$	—

Debt refinancing costs included in other expense	$	3,904	$	—	$	—

During 2019, we incurred $1.3 million in costs for inventory adjustments and other costs associated with the acquisition of Buffalo Filter as further described in Note 2. These costs were charged to cost of sales.

During 2019, we incurred $2.9 million in severance and other costs related to the consolidation of certain manufacturing operations. These costs were charged to cost of sales.

During 2017, we incurred $2.9 million in costs associated with consolidation of certain manufacturing operations. These costs were charged to cost of sales and included severance, inventory and other charges.

During 2019 and 2018, we incurred $13.1 million and $1.3 million, respectively, in costs associated with the February 11, 2019 acquisition of Buffalo Filter as further described in Note 2 that were included in selling and administrative expense. These costs include investment banking fees, consulting fees, legal fees, severance and integration related costs.

During 2018 and 2017 we incurred $1.1 million and $2.3 million respectively, in costs associated with a prior acquisition and were also included in selling and administrative expense. The 2018 cost consists of a charge to selling and administrative expense associated with a vacant lease related to the acquisition. The 2017 costs include the expensing of unvested options acquired and integration related costs.

During 2017, we consolidated certain selling and administrative functions and incurred $1.3 million in related costs consisting principally of severance charges.

During 2017, we incurred $12.2 million in costs associated with a litigation verdict whereby SurgiQuest, Inc. was found liable for $2.2 million in compensatory damages with an additional $10.0 million in punitive damages. These costs were paid on July 10, 2018. In addition, during the years ended December 31, 2017, we incurred $5.3 million in costs associated with this litigation and other legal matters. These costs were charged to selling and administrative expense.

During 2018, we recorded a net charge of $4.2 million to research and development expense mainly associated with the impairment of an in-process research and development asset, net of the release of previously accrued contingent consideration in other current and long-term liabilities, as further described in Note 13.

During 2019, we incurred a $3.6 million charge related to commitment fees paid to certain of our lenders, which provided a financing commitment for the Buffalo Filter acquisition and recorded a loss on the early extinguishment of debt of $0.3 million in conjunction with the sixth amended and restated senior credit agreement as further described in Note 7.