[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 95-2680965 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
One Invacare Way, P.O. Box 4028, Elyria, Ohio | 44036 |
(Address of principal executive offices) | (Zip Code) |
Item | Page | |
PART I: FINANCIAL INFORMATION | ||
1 | ||
2 | ||
3 | ||
4 | ||
PART II: OTHER INFORMATION | ||
1 | ||
1A. | ||
2 | ||
6 | ||
(In thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net sales | $ | 351,796 | $ | 372,719 | $ | 689,412 | $ | 727,819 | |||||||
Cost of products sold | 255,716 | 256,935 | 497,554 | 501,438 | |||||||||||
Gross Profit | 96,080 | 115,784 | 191,858 | 226,381 | |||||||||||
Selling, general and administrative expenses | 104,929 | 104,461 | 208,948 | 205,174 | |||||||||||
Charges related to restructuring activities | 2,592 | 2,006 | 5,114 | 2,567 | |||||||||||
Loss on debt extinguishment including debt finance charges and associated fees | — | 312 | — | 312 | |||||||||||
Interest expense | 1,024 | 2,299 | 2,351 | 4,650 | |||||||||||
Interest income | (74 | ) | (143 | ) | (181 | ) | (444 | ) | |||||||
Earnings (loss) from Continuing Operations Before Income Taxes | (12,391 | ) | 6,849 | (24,374 | ) | 14,122 | |||||||||
Income tax (benefit) provision | 10,650 | 11,155 | 3,200 | 12,823 | |||||||||||
Net Earnings (loss) from Continuing Operations | (23,041 | ) | (4,306 | ) | $ | (27,574 | ) | $ | 1,299 | ||||||
Net Earnings from Discontinued Operations (Net of tax amounts of $0; $1,370; $10 and $1,852) | — | 2,329 | 392 | 4,957 | |||||||||||
Gain on Sale of Discontinued Operations (Net of tax amounts of ($10,580) and $9,500) | 10,580 | — | 49,902 | — | |||||||||||
Total Net Earnings from Discontinued Operations | 10,580 | 2,329 | 50,294 | 4,957 | |||||||||||
Net Earnings | $ | (12,461 | ) | $ | (1,977 | ) | 22,720 | 6,256 | |||||||
Dividends Declared per Common Share | $ | 0.0125 | $ | 0.0125 | $ | 0.0250 | $ | 0.0250 | |||||||
Net Earnings per Share—Basic | |||||||||||||||
Net Earnings (loss) from Continuing Operations | $ | (0.72 | ) | $ | (0.14 | ) | $ | (0.86 | ) | $ | 0.04 | ||||
Net Earnings from Discontinued Operations | $ | 0.33 | $ | 0.07 | $ | 1.58 | $ | 0.16 | |||||||
Net Earnings per Share—Basic | $ | (0.39 | ) | $ | (0.07 | ) | $ | 0.72 | $ | 0.20 | |||||
Weighted Average Shares Outstanding—Basic | 31,902 | 31,818 | 31,902 | 31,819 | |||||||||||
Net Earnings per Share—Assuming Dilution | |||||||||||||||
Net Earnings (loss) from Continuing Operations | $ | (0.72 | ) | $ | (0.14 | ) | $ | (0.86 | ) | $ | 0.04 | ||||
Net Earnings from Discontinued Operations | $ | 0.33 | $ | 0.07 | $ | 1.57 | $ | 0.16 | |||||||
Net Earnings per Share—Assuming Dilution | $ | (0.39 | ) | $ | (0.07 | ) | $ | 0.71 | $ | 0.20 | |||||
Weighted Average Shares Outstanding—Assuming Dilution | 32,024 | 31,822 | 31,980 | 31,822 | |||||||||||
Net Earnings | $ | (12,461 | ) | $ | (1,977 | ) | $ | 22,720 | $ | 6,256 | |||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments | (7,738 | ) | (40,386 | ) | (9,236 | ) | (40,052 | ) | |||||||
Defined Benefit Plans: | |||||||||||||||
Amortization of prior service costs and unrecognized gains | 236 | (130 | ) | 536 | 98 | ||||||||||
Amounts arising during the year, primarily due to the addition of new participants | — | (133 | ) | (166 | ) | (168 | ) | ||||||||
Deferred tax adjustment resulting from defined benefit plan activity | (80 | ) | 37 | (128 | ) | 26 | |||||||||
Valuation reserve associated with defined benefit plan activity | 74 | (41 | ) | 124 | (30 | ) | |||||||||
Current period unrealized gain on cash flow hedges | (694 | ) | 253 | 883 | 1,046 | ||||||||||
Deferred tax loss related to unrealized gain on cash flow hedges | 39 | 23 | (42 | ) | (111 | ) | |||||||||
Other Comprehensive Income | (8,163 | ) | (40,377 | ) | (8,029 | ) | (39,191 | ) | |||||||
Comprehensive Income | $ | (20,624 | ) | $ | (42,354 | ) | $ | 14,691 | $ | (32,935 | ) |
June 30, 2013 | December 31, 2012 | ||||||
(In thousands) | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 21,447 | $ | 38,791 | |||
Trade receivables, net | 205,369 | 198,791 | |||||
Installment receivables, net | 1,814 | 2,188 | |||||
Inventories, net | 174,607 | 183,246 | |||||
Deferred income taxes | 1,140 | — | |||||
Other current assets | 36,645 | 41,776 | |||||
Assets held for sale - current | — | 103,157 | |||||
Total Current Assets | 441,022 | 567,949 | |||||
Other Assets | 42,467 | 42,262 | |||||
Other Intangibles | 66,599 | 71,652 | |||||
Property and Equipment, net | 112,442 | 118,231 | |||||
Goodwill | 459,867 | 462,200 | |||||
Total Assets | $ | 1,122,397 | $ | 1,262,294 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 115,891 | $ | 133,048 | |||
Accrued expenses | 131,835 | 135,189 | |||||
Accrued income taxes | 9,240 | 2,713 | |||||
Short-term debt and current maturities of long-term obligations | 1,778 | 5,427 | |||||
Liabilities held for sale - current | — | 23,358 | |||||
Total Current Liabilities | 258,744 | 299,735 | |||||
Long-Term Debt | 113,274 | 229,375 | |||||
Other Long-Term Obligations | 112,916 | 112,195 | |||||
Shareholders’ Equity | |||||||
Preferred Shares (Authorized 300 shares; none outstanding) | — | — | |||||
Common Shares (Authorized 100,000 shares; 34,054 and 33,952 issued in 2013 and 2012, respectively)—no par | 8,531 | 8,503 | |||||
Class B Common Shares (Authorized 12,000 shares; 1,085 and 1,086 issued and outstanding in 2013 and 2012, respectively)—no par | 272 | 272 | |||||
Additional paid-in-capital | 230,734 | 228,187 | |||||
Retained earnings | 386,475 | 364,546 | |||||
Accumulated other comprehensive earnings | 104,714 | 112,743 | |||||
Treasury shares | (93,263 | ) | (93,262 | ) | |||
Total Shareholders’ Equity | 637,463 | 620,989 | |||||
Total Liabilities and Shareholders’ Equity | $ | 1,122,397 | $ | 1,262,294 |
Six Months Ended June 30, | ||||||||
2013 | 2012 | |||||||
Operating Activities | (In thousands) | |||||||
Net earnings | $ | 22,720 | $ | 6,256 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Gain on sale of business (pre-tax) | (59,402 | ) | — | |||||
Depreciation and amortization | 18,929 | 19,448 | ||||||
Provision for losses on trade and installment receivables | 1,603 | 2,828 | ||||||
Provision (Benefit) for deferred income taxes | (163 | ) | 68 | |||||
Provision for other deferred liabilities | 126 | 557 | ||||||
Provision for stock-based compensation | 2,574 | 2,990 | ||||||
Loss on disposals of property and equipment | 135 | 72 | ||||||
Loss on debt extinguishment including debt finance charges and associated fees | — | 312 | ||||||
Amortization of convertible debt discount | 307 | 285 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade receivables | (8,429 | ) | (13,089 | ) | ||||
Installment sales contracts, net | (134 | ) | 3,508 | |||||
Inventories | 3,405 | (29,571 | ) | |||||
Other current assets | 4,009 | 304 | ||||||
Accounts payable | (18,852 | ) | 9,142 | |||||
Accrued expenses | 3,004 | (4,831 | ) | |||||
Other long-term liabilities | 204 | 9,469 | ||||||
Net Cash Provided (Used) by Operating Activities | (29,964 | ) | 7,748 | |||||
Investing Activities | ||||||||
Purchases of property and equipment | (7,666 | ) | (9,794 | ) | ||||
Proceeds from sale of property and equipment | 9 | 49 | ||||||
Proceeds from sale of business | 144,681 | — | ||||||
Increase in other long-term assets | (422 | ) | (150 | ) | ||||
Other | (30 | ) | (265 | ) | ||||
Net Cash Provided (Used) by Investing Activities | 136,572 | (10,160 | ) | |||||
Financing Activities | ||||||||
Proceeds from revolving lines of credit and long-term borrowings | 196,399 | 170,808 | ||||||
Payments on revolving lines of credit and long-term borrowings | (318,963 | ) | (176,334 | ) | ||||
Payment of financing costs | — | (1 | ) | |||||
Payment of dividends | (791 | ) | (787 | ) | ||||
Net Cash Used by Financing Activities | (123,355 | ) | (6,314 | ) | ||||
Effect of exchange rate changes on cash | (597 | ) | (703 | ) | ||||
Decrease in cash and cash equivalents | (17,344 | ) | (9,429 | ) | ||||
Cash and cash equivalents at beginning of year | 38,791 | 34,924 | ||||||
Cash and cash equivalents at end of period | $ | 21,447 | $ | 25,495 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Stock-based compensation expense recognized as part of selling, general and administrative expense | $ | 1,414 | $ | 1,456 | $ | 2,574 | $ | 2,990 |
December 31, 2012 | ||||
Trade receivables, net | $ | 44,196 | ||
Inventories, net | 25,165 | |||
Other current assets | 9,355 | |||
Property and Equipment, net | 1,368 | |||
Goodwill | 23,073 | |||
Assets held for sale - current | $ | 103,157 | ||
Accounts payable | $ | 17,692 | ||
Accrued expenses | 4,602 | |||
Accrued income taxes | 1,064 | |||
Liabilities held for sale - current | $ | 23,358 |
June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Current | Long- Term | Total | Current | Long- Term | Total | ||||||||||||||||||
Installment receivables | $ | 4,093 | $ | 1,933 | $ | 6,026 | $ | 4,982 | $ | 1,506 | $ | 6,488 | |||||||||||
Less: Unearned interest | (65 | ) | — | (65 | ) | (71 | ) | — | (71 | ) | |||||||||||||
4,028 | 1,933 | 5,961 | 4,911 | 1,506 | 6,417 | ||||||||||||||||||
Allowance for doubtful accounts | (2,214 | ) | (1,399 | ) | (3,613 | ) | (2,723 | ) | (1,100 | ) | (3,823 | ) | |||||||||||
$ | 1,814 | $ | 534 | $ | 2,348 | $ | 2,188 | $ | 406 | $ | 2,594 |
Six Months Ended June 30, 2013 | Year Ended December 31, 2012 | ||||||
Balance as of beginning of period | $ | 3,823 | $ | 4,273 | |||
Current period provision | 307 | 458 | |||||
Direct write-offs charged against the allowance | (517 | ) | (908 | ) | |||
Balance as of end of period | $ | 3,613 | $ | 3,823 |
Total Installment Receivables | Unpaid Principal Balance | Related Allowance for Doubtful Accounts | Interest Income Recognized | ||||||||||||
U.S. | |||||||||||||||
Impaired Installment receivables with a related allowance recorded | $ | 4,422 | $ | 4,422 | $ | 3,352 | $ | — | |||||||
Canada | |||||||||||||||
Non-Impaired Installment receivables with no related allowance recorded | 1,343 | 1,278 | — | 54 | |||||||||||
Impaired Installment receivables with a related allowance recorded | 261 | 261 | 261 | — | |||||||||||
Total Canadian Installment Receivables | $ | 1,604 | $ | 1,539 | $ | 261 | $ | 54 | |||||||
Total | |||||||||||||||
Non-Impaired Installment receivables with no related allowance recorded | 1,343 | 1,278 | — | 54 | |||||||||||
Impaired Installment receivables with a related allowance recorded | 4,683 | 4,683 | 3,613 | — | |||||||||||
Total Installment Receivables | $ | 6,026 | $ | 5,961 | $ | 3,613 | $ | 54 |
Total Installment Receivables | Unpaid Principal Balance | Related Allowance for Doubtful Accounts | Interest Income Recognized | ||||||||||||
U.S. | |||||||||||||||
Impaired Installment receivables with a related allowance recorded | $ | 4,508 | $ | 4,508 | $ | 3,365 | $ | — | |||||||
Canada | |||||||||||||||
Non-Impaired Installment receivables with no related allowance recorded | 1,522 | 1,451 | — | 120 | |||||||||||
Impaired Installment receivables with a related allowance recorded | 458 | 458 | 458 | — | |||||||||||
Total Canadian Installment Receivables | $ | 1,980 | $ | 1,909 | $ | 458 | $ | 120 | |||||||
Total | |||||||||||||||
Non-Impaired Installment receivables with no related allowance recorded | 1,522 | 1,451 | — | 120 | |||||||||||
Impaired Installment receivables with a related allowance recorded | 4,966 | 4,966 | 3,823 | — | |||||||||||
Total Installment Receivables | $ | 6,488 | $ | 6,417 | $ | 3,823 | $ | 120 |
June 30, 2013 | December 31, 2012 | ||||||||||||||||||||||
Total | U.S. | Canada | Total | U.S. | Canada | ||||||||||||||||||
Current | $ | 1,377 | $ | — | $ | 1,377 | $ | 1,467 | $ | — | $ | 1,467 | |||||||||||
0-30 Days Past Due | 14 | — | 14 | 43 | — | 43 | |||||||||||||||||
31-60 Days Past Due | 2 | — | 2 | 2 | — | 2 | |||||||||||||||||
61-90 Days Past Due | — | — | — | — | — | — | |||||||||||||||||
90+ Days Past Due | 4,633 | 4,422 | 211 | 4,976 | 4,508 | 468 | |||||||||||||||||
$ | 6,026 | $ | 4,422 | $ | 1,604 | $ | 6,488 | $ | 4,508 | $ | 1,980 |
June 30, 2013 | December 31, 2012 | ||||||
Finished goods | $ | 97,215 | $ | 94,675 | |||
Raw materials | 62,271 | 71,596 | |||||
Work in process | 15,121 | 16,975 | |||||
$ | 174,607 | $ | 183,246 |
June 30, 2013 | December 31, 2012 | ||||||
Value added tax receivables | $ | 15,831 | $ | 18,002 | |||
Recoverable income taxes | 3,519 | 6,192 | |||||
Derivatives (foreign currency forward contracts) | 1,496 | 1,062 | |||||
Prepaid insurance | 921 | 2,241 | |||||
Prepaids and other current assets | 14,878 | 14,279 | |||||
$ | 36,645 | $ | 41,776 |
June 30, 2013 | December 31, 2012 | ||||||
Machinery and equipment | $ | 357,126 | $ | 356,512 | |||
Land, buildings and improvements | 95,103 | 95,047 | |||||
Furniture and fixtures | 13,151 | 13,397 | |||||
Leasehold improvements | 14,749 | 14,975 | |||||
480,129 | 479,931 | ||||||
Less allowance for depreciation | (367,687 | ) | (361,700 | ) | |||
$ | 112,442 | $ | 118,231 |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Historical Cost | Accumulated Amortization | Historical Cost | Accumulated Amortization | ||||||||||||
Customer Lists | $ | 90,357 | $ | 59,060 | $ | 93,572 | $ | 58,447 | |||||||
Trademarks | 30,772 | — | 31,280 | — | |||||||||||
License Agreements | 3,127 | 3,127 | 3,212 | 3,212 | |||||||||||
Developed Technology | 9,603 | 5,871 | 9,650 | 5,588 | |||||||||||
Patents | 5,959 | 5,348 | 6,060 | 5,234 | |||||||||||
Other | 7,434 | 7,247 | 7,571 | 7,212 | |||||||||||
$ | 147,252 | $ | 80,653 | $ | 151,345 | $ | 79,693 |
June 30, 2013 | December 31, 2012 | ||||||
Salaries and wages | $ | 33,671 | $ | 41,813 | |||
Taxes other than income taxes, primarily Value Added Taxes | 23,442 | 24,600 | |||||
Warranty cost | 25,060 | 21,451 | |||||
Freight | 9,333 | 7,853 | |||||
Professional | 6,668 | 7,595 | |||||
Product liability, current portion | 3,417 | 3,323 | |||||
Rebates | 2,607 | 3,635 | |||||
Insurance | 2,693 | 2,674 | |||||
Interest | 1,065 | 1,268 | |||||
Derivative liability (foreign forward exchange contracts) | 1,213 | 1,373 | |||||
Severance | 4,920 | 5,211 | |||||
Other items, principally trade accruals | 17,746 | 14,393 | |||||
$ | 131,835 | $ | 135,189 |
Balance as of January 1, 2013 | $ | 21,451 | |
Warranties provided during the period | 5,569 | ||
Settlements made during the period | (6,263 | ) | |
Changes in liability for pre-existing warranties during the period, including expirations | 4,303 | ||
Balance as of June 30, 2013 | $ | 25,060 |
June 30, 2013 | December 31, 2012 | ||||||
Senior secured revolving credit facility, due in October 2015 | $ | 97,959 | $ | 217,494 | |||
Convertible senior subordinated debentures at 4.125%, due in February 2027 | 10,316 | 10,009 | |||||
Other notes and lease obligations | 6,777 | 7,299 | |||||
115,052 | 234,802 | ||||||
Less current maturities of long-term debt | (1,778 | ) | (5,427 | ) | |||
$ | 113,274 | $ | 229,375 |
June 30, 2013 | December 31, 2012 | ||||||
Principal amount of liability component | $ | 13,350 | $ | 13,350 | |||
Unamortized discount | (3,034 | ) | (3,341 | ) | |||
Net carrying amount of liability component | $ | 10,316 | $ | 10,009 |
June 30, 2013 | Weighted Average Exercise Price | ||||||
Options outstanding at January 1, 2013 | 4,664,634 | $ | 26.21 | ||||
Granted | 756,700 | 14.47 | |||||
Exercised | — | — | |||||
Canceled | (351,541 | ) | 22.81 | ||||
Options outstanding at June 30, 2013 | 5,069,793 | $ | 24.70 | ||||
Options exercise price range at June 30, 2013 | $ 12.42 to | ||||||
47.80 | |||||||
Options exercisable at June 30, 2013 | 2,902,760 | ||||||
Options available for grant at June 30, 2013* | 4,459,337 |
* | Options available for grant as of June 30, 2013 reduced by net restricted stock award activity of 793,351. |
Options Outstanding | Options Exercisable | ||||||||||||||
Exercise Prices | Number Outstanding At 6/30/13 | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Number Exercisable At 6/30/13 | Weighted Average Exercise Price | ||||||||||
$ 12.42 – $15.00 | 1,404,086 | 9.4 | $ | 13.95 | 1,986 | $ | 13.37 | ||||||||
$ 15.01 – $25.00 | 1,646,829 | 5.9 | 22.52 | 1,126,899 | 22.16 | ||||||||||
$ 25.01 – $35.00 | 964,437 | 6.0 | 25.78 | 719,435 | 25.91 | ||||||||||
$ 35.01 – $47.80 | 1,054,441 | 1.1 | 41.42 | 1,054,440 | 41.43 | ||||||||||
Total | 5,069,793 | 5.9 | $ | 24.70 | 2,902,760 | $ | 30.08 |
Foreign Currency | Long-Term Notes | Defined Benefit Plans | Derivatives | Total | |||||||||||
March 31, 2013 | 117,659 | 1,153 | (6,649 | ) | 714 | 112,877 | |||||||||
OCI before reclassifications | 158 | (7,896 | ) | 362 | (396 | ) | (7,772 | ) | |||||||
Amount reclassified from accumulated OCI | — | — | (132 | ) | (259 | ) | (391 | ) | |||||||
Net current-period OCI | 158 | (7,896 | ) | 230 | (655 | ) | (8,163 | ) | |||||||
June 30, 2013 | 117,817 | (6,743 | ) | (6,419 | ) | 59 | 104,714 |
Foreign Currency | Long-Term Notes | Defined Benefit Plans | Derivatives | Total | |||||||||||
December 31, 2012 | 117,465 | 2,845 | (6,785 | ) | (782 | ) | 112,743 | ||||||||
OCI before reclassifications | 352 | (9,588 | ) | 485 | 847 | (7,904 | ) | ||||||||
Amount reclassified from accumulated OCI | — | — | (119 | ) | (6 | ) | (125 | ) | |||||||
Net current-period OCI | 352 | (9,588 | ) | 366 | 841 | (8,029 | ) | ||||||||
June 30, 2013 | 117,817 | (6,743 | ) | (6,419 | ) | 59 | 104,714 |
Amount reclassified from OCI | Affected line item in the Statement of Comprehensive Income (Loss) | ||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | ||||||||
Defined Benefit Plans | |||||||||
Service and interest costs | (138 | ) | (123 | ) | Selling, General and Administrative | ||||
Tax | 6 | 4 | Income Taxes | ||||||
Total after tax | (132 | ) | (119 | ) | |||||
Derivatives | |||||||||
Foreign currency forward contracts hedging sales | (306 | ) | (442 | ) | Net Sales | ||||
Foreign currency forward contracts hedging purchases | (31 | ) | 325 | Cost of Products Sold | |||||
Interest rate swaps | 59 | 126 | Interest Expense | ||||||
Total before tax | (278 | ) | 9 | ||||||
Tax | 19 | (15 | ) | Income Taxes | |||||
Total after tax | (259 | ) | (6 | ) |
Severance | Product Line Discontinuance | Contract Terminations | Other | Total | |||||||||||||||
December 31, 2010 Balance | |||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Charges | |||||||||||||||||||
NA/HME | 4,755 | — | — | 4 | 4,759 | ||||||||||||||
IPG | 123 | — | — | — | 123 | ||||||||||||||
Europe | 3,288 | 277 | 1,788 | 113 | 5,466 | ||||||||||||||
Asia/Pacific | 186 | — | — | — | 186 | ||||||||||||||
Total | 8,352 | 277 | 1,788 | 117 | 10,534 | ||||||||||||||
Payments | |||||||||||||||||||
NA/HME | (1,663 | ) | — | — | (4 | ) | (1,667 | ) | |||||||||||
IPG | (52 | ) | — | — | — | (52 | ) | ||||||||||||
Europe | (1,546 | ) | (277 | ) | (1,714 | ) | (113 | ) | (3,650 | ) | |||||||||
Asia/Pacific | (186 | ) | — | — | — | (186 | ) | ||||||||||||
Total | (3,447 | ) | (277 | ) | (1,714 | ) | (117 | ) | (5,555 | ) | |||||||||
December 31, 2011 Balance | |||||||||||||||||||
NA/HME | 3,092 | — | — | — | 3,092 | ||||||||||||||
IPG | 71 | — | — | — | 71 | ||||||||||||||
Europe | 1,742 | — | 74 | — | 1,816 | ||||||||||||||
Asia/Pacific | — | — | — | — | — | ||||||||||||||
Total | 4,905 | — | 74 | — | 4,979 | ||||||||||||||
Charges | |||||||||||||||||||
NA/HME | 4,242 | — | 5 | — | 4,247 | ||||||||||||||
IPG | 35 | — | — | — | 35 | ||||||||||||||
Europe | 817 | — | 53 | 1,223 | 2,093 | ||||||||||||||
Asia/Pacific | 1,681 | 491 | 1,667 | 1,181 | 5,020 | ||||||||||||||
Total | 6,775 | 491 | 1,725 | 2,404 | 11,395 | ||||||||||||||
Payments | |||||||||||||||||||
NA/HME | (3,587 | ) | — | (5 | ) | — | (3,592 | ) | |||||||||||
IPG | (106 | ) | — | — | — | (106 | ) | ||||||||||||
Europe | (1,964 | ) | — | (127 | ) | (1,223 | ) | (3,314 | ) | ||||||||||
Asia/Pacific | (812 | ) | (340 | ) | (42 | ) | (1,175 | ) | (2,369 | ) | |||||||||
Total | (6,469 | ) | (340 | ) | (174 | ) | (2,398 | ) | (9,381 | ) | |||||||||
Severance | Product Line Discontinuance | Contract Terminations | Other | Total | |||||||||||||||
December 31, 2012 Balance | |||||||||||||||||||
NA/HME | 3,747 | — | — | — | 3,747 | ||||||||||||||
IPG | — | — | — | — | — | ||||||||||||||
Europe | 595 | — | — | — | 595 | ||||||||||||||
Asia/Pacific | 869 | 151 | 1,625 | 6 | 2,651 | ||||||||||||||
Total | 5,211 | 151 | 1,625 | 6 | 6,993 | ||||||||||||||
Charges | |||||||||||||||||||
NA/HME | 1,679 | — | — | — | 1,679 | ||||||||||||||
IPG | 189 | — | — | — | 189 | ||||||||||||||
Europe | 115 | — | — | — | 115 | ||||||||||||||
Asia/Pacific | 453 | — | 86 | — | 539 | ||||||||||||||
Total | 2,436 | — | 86 | — | 2,522 | ||||||||||||||
Payments | |||||||||||||||||||
NA/HME | (2,005 | ) | — | — | — | (2,005 | ) | ||||||||||||
IPG | (17 | ) | — | — | — | (17 | ) | ||||||||||||
Europe | (461 | ) | — | — | — | (461 | ) | ||||||||||||
Asia/Pacific | (618 | ) | (151 | ) | (766 | ) | (4 | ) | (1,539 | ) | |||||||||
Total | (3,101 | ) | (151 | ) | (766 | ) | (4 | ) | (4,022 | ) | |||||||||
March 31, 2013 Balance | |||||||||||||||||||
NA/HME | 3,421 | — | — | — | 3,421 | ||||||||||||||
IPG | 172 | — | — | — | 172 | ||||||||||||||
Europe | 249 | — | — | — | 249 | ||||||||||||||
Asia/Pacific | 704 | — | 945 | 2 | 1,651 | ||||||||||||||
4,546 | — | 945 | 2 | 5,493 | |||||||||||||||
Charges | |||||||||||||||||||
NA/HME | 1,948 | — | — | — | 1,948 | ||||||||||||||
IPG | 13 | — | — | — | 13 | ||||||||||||||
Europe | 65 | — | — | — | 65 | ||||||||||||||
Asia/Pacific | 480 | — | 86 | — | 566 | ||||||||||||||
Total | 2,506 | — | 86 | — | 2,592 | ||||||||||||||
Payments | |||||||||||||||||||
NA/HME | (1,795 | ) | — | — | — | (1,795 | ) | ||||||||||||
IPG | (26 | ) | — | — | — | (26 | ) | ||||||||||||
Europe | (182 | ) | — | — | — | (182 | ) | ||||||||||||
Asia/Pacific | (129 | ) | — | (49 | ) | (2 | ) | (180 | ) | ||||||||||
Total | (2,132 | ) | — | (49 | ) | (2 | ) | (2,183 | ) | ||||||||||
June 30, 2013 Balance | |||||||||||||||||||
NA/HME | 3,574 | — | — | — | 3,574 | ||||||||||||||
IPG | 159 | — | — | — | 159 | ||||||||||||||
Europe | 132 | — | — | — | 132 | ||||||||||||||
Asia/Pacific | 1,055 | — | 982 | — | 2,037 | ||||||||||||||
$ | 4,920 | $ | — | $ | 982 | $ | — | $ | 5,902 |
(In thousands except per share data) | For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Basic | |||||||||||||||
Average common shares outstanding | 31,902 | 31,818 | 31,902 | 31,819 | |||||||||||
Net earnings (loss) from continuing operations | $ | (23,041 | ) | $ | (4,306 | ) | $ | (27,574 | ) | $ | 1,299 | ||||
Net earnings from discontinued operations | $ | 10,580 | $ | 2,329 | $ | 50,294 | $ | 4,957 | |||||||
Net earnings | $ | (12,461 | ) | $ | (1,977 | ) | $ | 22,720 | $ | 6,256 | |||||
Net earnings (loss) per common share from continuing operations | $ | (0.72 | ) | $ | (0.14 | ) | $ | (0.86 | ) | $ | 0.04 | ||||
Net earnings per common share from discontinued operations | $ | 0.33 | $ | 0.07 | $ | 1.58 | $ | 0.16 | |||||||
Net earnings per common share | $ | (0.39 | ) | $ | (0.07 | ) | $ | 0.72 | $ | 0.20 | |||||
Diluted | |||||||||||||||
Average common shares outstanding | 31,902 | 31,818 | 31,902 | 31,819 | |||||||||||
Shares related to convertible debt | — | — | — | — | |||||||||||
Stock options and awards | 122 | 4 | 78 | 3 | |||||||||||
Average common shares assuming dilution | 32,024 | 31,822 | 31,980 | 31,822 | |||||||||||
Net earnings (loss) from continuing operations | $ | (23,041 | ) | $ | (4,306 | ) | $ | (27,574 | ) | $ | 1,299 | ||||
Net earnings from discontinued operations | $ | 10,580 | $ | 2,329 | $ | 50,294 | $ | 4,957 | |||||||
Net earnings | $ | (12,461 | ) | $ | (1,977 | ) | $ | 22,720 | $ | 6,256 | |||||
Net earnings (loss) per common share from continuing operations * | $ | (0.72 | ) | $ | (0.14 | ) | $ | (0.86 | ) | $ | 0.04 | ||||
Net earnings per common share from discontinued operations | $ | 0.33 | $ | 0.07 | $ | 1.57 | $ | 0.16 | |||||||
Net earnings per common share * | $ | (0.39 | ) | $ | (0.07 | ) | $ | 0.71 | $ | 0.20 |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Notional Amount | Unrealized Net Gain (Loss) | Notional Amount | Unrealized Net Gain (Loss) | ||||||||||||
USD / AUD | $ | 1,019 | $ | 103 | $ | — | $ | — | |||||||
USD / CAD | 18,714 | (195 | ) | 17,620 | (6 | ) | |||||||||
USD / CNY | 7,015 | 31 | — | — | |||||||||||
USD / CHF | 476 | 26 | — | — | |||||||||||
USD / EUR | 31,565 | (266 | ) | 59,510 | (797 | ) | |||||||||
USD / GBP | 1,321 | 67 | 2,519 | (3 | ) | ||||||||||
USD / NZD | 1,615 | (29 | ) | — | — | ||||||||||
USD / SEK | 3,960 | 187 | — | — | |||||||||||
USD / MXP | 5,437 | 38 | 6,954 | 141 | |||||||||||
EUR / CAD | 791 | (2 | ) | — | — | ||||||||||
EUR / CHF | 3,109 | 4 | — | — | |||||||||||
EUR / GBP | 10,607 | (34 | ) | 2,077 | 46 | ||||||||||
EUR / SEK | 950 | 25 | — | — | |||||||||||
EUR / NZD | 3,293 | (84 | ) | 5,749 | 105 | ||||||||||
GBP / CHF | 590 | (18 | ) | — | — | ||||||||||
GBP / SEK | 2,189 | 143 | 4,154 | 25 | |||||||||||
DKK / SEK | 2,167 | 11 | 6,397 | (47 | ) | ||||||||||
NOK / SEK | 1,797 | 62 | 3,428 | (4 | ) | ||||||||||
$ | 96,615 | $ | 69 | $ | 108,408 | $ | (540 | ) |
June 30, 2013 | June 30, 2012 | ||||||||||||||
Notional Amount | Gain (Loss) | Notional Amount | Gain (Loss) | ||||||||||||
CAD / USD | $ | 1,911 | $ | (8 | ) | $ | 12,678 | $ | 70 | ||||||
EUR / USD | 434 | (3 | ) | 597 | 53 | ||||||||||
CHF / USD | — | — | 1,611 | (1 | ) | ||||||||||
DKK / USD | — | — | 1,343 | (3 | ) | ||||||||||
GBP / USD | — | — | 2,651 | (14 | ) | ||||||||||
NOK / USD | — | — | 1,326 | (5 | ) | ||||||||||
NZD / USD | 3,113 | (2 | ) | 2,020 | (16 | ) | |||||||||
EUR / CAD | — | — | 384 | (11 | ) | ||||||||||
EUR / DKK | — | — | 7,662 | (7 | ) | ||||||||||
AUD / CAD | 400 | 15 | 1,551 | (67 | ) | ||||||||||
AUD / EUR | 1,500 | 216 | — | — | |||||||||||
AUD / GBP | 455 | 38 | — | — | |||||||||||
AUD / NZD | — | — | 1,048 | (4 | ) | ||||||||||
EUR / NZD | — | — | 174 | (13 | ) | ||||||||||
$ | 7,813 | $ | 256 | $ | 33,045 | $ | (18 | ) |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||
Derivatives designated as hedging instruments under ASC 815 | |||||||||||||||
Foreign currency forward contracts | $ | 1,199 | $ | 1,130 | $ | 375 | $ | 915 | |||||||
Interest rate swap contracts | — | 42 | — | 316 | |||||||||||
Derivatives not designated as hedging instruments under ASC 815 | |||||||||||||||
Foreign currency forward contracts | 297 | 41 | 687 | 142 | |||||||||||
Total derivatives | $ | 1,496 | $ | 1,213 | $ | 1,062 | $ | 1,373 |
Derivatives in ASC 815 cash flow hedge relationships | Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ||||||||
Three months ended June 30, 2013 | |||||||||||
Foreign currency forward contracts | $ | (889 | ) | $ | 117 | $ | (22 | ) | |||
Interest rate swap contracts | 137 | (59 | ) | — | |||||||
$ | (752 | ) | $ | 58 | $ | (22 | ) | ||||
Six months ended June 30, 2013 | |||||||||||
Foreign currency forward contracts | $ | 712 | $ | (103 | ) | $ | 35 | ||||
Interest rate swap contracts | 400 | (126 | ) | — | |||||||
$ | 1,112 | $ | (229 | ) | $ | 35 | |||||
Three months ended June 30, 2012 | |||||||||||
Foreign currency forward contracts | $ | (424 | ) | $ | 663 | $ | 28 | ||||
Interest rate swap contracts | 14 | — | — | ||||||||
$ | (410 | ) | $ | 663 | $ | 28 | |||||
Six months ended June 30, 2012 | |||||||||||
Foreign currency forward contracts | $ | (434 | ) | $ | 1,576 | $ | 28 | ||||
Interest rate swap contracts | (96 | ) | — | — | |||||||
$ | (530 | ) | $ | 1,576 | $ | 28 | |||||
Derivatives not designated as hedging instruments under ASC 815 | Amount of Gain (Loss) Recognized in Income on Derivatives | ||||||||||
Three months ended June 30, 2013 | |||||||||||
Foreign currency forward contracts | $ | 1,427 | |||||||||
Six months ended June 30, 2013 | |||||||||||
Foreign currency forward contracts | $ | 256 | |||||||||
Three months ended June 30, 2012 | |||||||||||
Foreign currency forward contracts | $ | (102 | ) | ||||||||
Six months ended June 30, 2012 | |||||||||||
Foreign currency forward contracts | $ | (18 | ) |
Basis for Fair Value Measurements at Reporting Date | |||||||||||||
Quoted Prices in Active Markets for Identical Assets / (Liabilities) | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||
Total | Level I | Level II | Level III | ||||||||||
June 30, 2013: | |||||||||||||
Forward Exchange Contracts—net | $ | 325 | — | $ | 325 | — | |||||||
Interest Rate Swap Agreements—net | (42 | ) | — | (42 | ) | — | |||||||
December 31, 2012: | |||||||||||||
Forward Exchange Contracts—net | $ | 5 | — | $ | 5 | — | |||||||
Interest Rate Swap Agreements—net | (316 | ) | — | (316 | ) | — |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Cash and cash equivalents | $ | 21,447 | $ | 21,447 | $ | 38,791 | $ | 38,791 | |||||||
Other investments | 1,201 | 1,201 | 1,171 | 1,171 | |||||||||||
Installment receivables, net of reserves | 2,348 | 2,348 | 2,594 | 2,594 | |||||||||||
Long-term debt (including current maturities of long-term debt) | (115,052 | ) | (114,376 | ) | (234,802 | ) | (234,072 | ) | |||||||
Forward contracts in Other Current Assets | 1,496 | 1,496 | 1,062 | 1,062 | |||||||||||
Forward contracts in Accrued Expenses | (1,171 | ) | (1,171 | ) | (1,057 | ) | (1,057 | ) | |||||||
Interest rate swap agreements in Accrued Expenses | (42 | ) | (42 | ) | (316 | ) | (316 | ) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Revenues from external customers | |||||||||||||||
North America/HME | $ | 159,491 | $ | 180,365 | $ | 311,648 | $ | 356,484 | |||||||
Institutional Products Group | 36,700 | 37,519 | 71,828 | 73,657 | |||||||||||
Europe | 141,751 | 134,713 | 279,385 | 260,016 | |||||||||||
Asia/Pacific | 13,854 | 20,122 | 26,551 | 37,662 | |||||||||||
Consolidated | $ | 351,796 | $ | 372,719 | $ | 689,412 | $ | 727,819 | |||||||
Intersegment revenues | |||||||||||||||
North America/HME | $ | 20,398 | $ | 28,062 | $ | 39,234 | $ | 57,173 | |||||||
Institutional Products Group | 2,045 | 1,790 | 3,428 | 3,614 | |||||||||||
Europe | 2,313 | 3,231 | 4,266 | 5,209 | |||||||||||
Asia/Pacific | 6,124 | 8,910 | 13,006 | 19,440 | |||||||||||
Consolidated | $ | 30,880 | $ | 41,993 | $ | 59,934 | $ | 85,436 | |||||||
Restructuring charges before income taxes | |||||||||||||||
North America/HME | $ | 1,948 | $ | 1,745 | $ | 3,627 | $ | 1,862 | |||||||
Institutional Products Group | 13 | — | 201 | 35 | |||||||||||
Europe | 65 | — | 180 | 291 | |||||||||||
Asia/Pacific | 566 | 261 | 1,106 | 379 | |||||||||||
Consolidated | $ | 2,592 | $ | 2,006 | $ | 5,114 | $ | 2,567 | |||||||
Earnings (loss) before income taxes | |||||||||||||||
North America/HME | $ | (12,398 | ) | $ | 2,044 | $ | (23,750 | ) | $ | 7,740 | |||||
Institutional Products Group | 2,120 | 3,507 | 3,967 | 6,885 | |||||||||||
Europe | 8,365 | 7,801 | 14,208 | 13,286 | |||||||||||
Asia/Pacific | (5,377 | ) | (777 | ) | (7,638 | ) | (1,838 | ) | |||||||
All Other (1) | (5,101 | ) | (5,726 | ) | (11,161 | ) | (11,951 | ) | |||||||
Consolidated | $ | (12,391 | ) | $ | 6,849 | $ | (24,374 | ) | $ | 14,122 |
(1) | Consists of un-allocated corporate SG&A costs and intercompany profits, which do not meet the quantitative criteria for determining reportable segments. In addition, the “All Other” earnings (loss) before income taxes includes loss on debt extinguishment including debt finance charges, interest and fees. |
The Company (Parent) | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
Three month period ended June 30, 2013 | (in thousands) | ||||||||||||||||||
Net sales | $ | 64,903 | $ | 133,056 | $ | 177,582 | $ | (23,745 | ) | $ | 351,796 | ||||||||
Cost of products sold | 55,077 | 96,187 | 128,350 | (23,898 | ) | 255,716 | |||||||||||||
Gross Profit | 9,826 | 36,869 | 49,232 | 153 | 96,080 | ||||||||||||||
Selling, general and administrative expenses | 35,407 | 24,819 | 43,353 | 1,350 | 104,929 | ||||||||||||||
Charge related to restructuring activities | 1,810 | 13 | 769 | — | 2,592 | ||||||||||||||
Income (loss) from equity investee | 25,370 | 6,729 | (180 | ) | (31,919 | ) | — | ||||||||||||
Interest expense (income)—net | (399 | ) | 1,329 | 20 | — | 950 | |||||||||||||
Earnings (Loss) from Continuing Operations before Income Taxes | (1,622 | ) | 17,437 | 4,910 | (33,116 | ) | (12,391 | ) | |||||||||||
Income taxes (benefit) | 10,839 | — | (189 | ) | — | 10,650 | |||||||||||||
Net Earnings (Loss) from Continuing Operations | (12,461 | ) | 17,437 | 5,099 | (33,116 | ) | (23,041 | ) | |||||||||||
Net Earnings from Discontinued Operations | — | 10,580 | — | — | 10,580 | ||||||||||||||
Net Earnings (loss) | $ | (12,461 | ) | $ | 28,017 | $ | 5,099 | $ | (33,116 | ) | $ | (12,461 | ) | ||||||
Other Comprehensive Income (Loss), Net of Tax | (8,163 | ) | 1,551 | (9,694 | ) | 8,143 | (8,163 | ) | |||||||||||
Comprehensive Income (Loss) | $ | (20,624 | ) | $ | 29,568 | $ | (4,595 | ) | $ | (24,973 | ) | $ | (20,624 | ) |
The Company (Parent) | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
Three month period ended June 30, 2012 | (in thousands) | ||||||||||||||||||
Net sales | $ | 95,304 | $ | 125,956 | $ | 183,346 | $ | (31,887 | ) | $ | 372,719 | ||||||||
Cost of products sold | 72,564 | 90,439 | 125,587 | (31,655 | ) | 256,935 | |||||||||||||
Gross Profit | 22,740 | 35,517 | 57,759 | (232 | ) | 115,784 | |||||||||||||
Selling, general and administrative expenses | 33,253 | 22,914 | 47,655 | 639 | 104,461 | ||||||||||||||
Charge related to restructuring activities | 1,745 | — | 261 | — | 2,006 | ||||||||||||||
Loss on debt extinguishment including debt finance charges and associated fees | 312 | — | — | — | 312 | ||||||||||||||
Income (loss) from equity investee | 9,626 | 5,174 | (36 | ) | (14,764 | ) | — | ||||||||||||
Interest expense (income)—net | (1,147 | ) | 2,459 | 844 | — | 2,156 | |||||||||||||
Earnings (Loss) from Continuing Operations before Income Taxes | (1,797 | ) | 15,318 | 8,963 | (15,635 | ) | 6,849 | ||||||||||||
Income taxes (benefit) | 180 | (959 | ) | 11,934 | — | 11,155 | |||||||||||||
Net Earnings (Loss) from Continuing Operations | (1,977 | ) | 16,277 | (2,971 | ) | (15,635 | ) | (4,306 | ) | ||||||||||
Net Earnings from Discontinued Operations | — | 2,329 | — | — | 2,329 | ||||||||||||||
Net Earnings (loss) | $ | (1,977 | ) | $ | 18,606 | $ | (2,971 | ) | $ | (15,635 | ) | $ | (1,977 | ) | |||||
Other Comprehensive Income (Loss), Net of Tax | (40,377 | ) | (1,830 | ) | (39,140 | ) | 40,970 | (40,377 | ) | ||||||||||
Comprehensive Income (Loss) | $ | (42,354 | ) | $ | 16,776 | $ | (42,111 | ) | $ | 25,335 | $ | (42,354 | ) |
The Company (Parent) | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
Six month period ended June 30, 2013 | |||||||||||||||||||
Net sales | $ | 125,812 | $ | 257,671 | $ | 351,507 | $ | (45,578 | ) | $ | 689,412 | ||||||||
Cost of products sold | 107,430 | 186,021 | 250,055 | (45,952 | ) | 497,554 | |||||||||||||
Gross Profit | 18,382 | 71,650 | 101,452 | 374 | 191,858 | ||||||||||||||
Selling, general and administrative expenses | 70,270 | 48,654 | 87,330 | 2,694 | 208,948 | ||||||||||||||
Charge related to restructuring activities | 3,481 | 13 | 1,620 | — | 5,114 | ||||||||||||||
Income (loss) from equity investee | 73,388 | 12,537 | (115 | ) | (85,810 | ) | — | ||||||||||||
Interest expense (income)—net | (444 | ) | 1,975 | 639 | — | 2,170 | |||||||||||||
Earnings (Loss) from Continuing Operations before Income Taxes | 18,463 | 33,545 | 11,748 | (88,130 | ) | (24,374 | ) | ||||||||||||
Income taxes (benefit) | (4,257 | ) | — | 7,457 | — | 3,200 | |||||||||||||
Net Earnings (Loss) from Continuing Operations | 22,720 | 33,545 | 4,291 | (88,130 | ) | (27,574 | ) | ||||||||||||
Net Earnings from Discontinued Operations | — | 50,294 | — | — | 50,294 | ||||||||||||||
Net Earnings (loss) | $ | 22,720 | $ | 83,839 | $ | 4,291 | $ | (88,130 | ) | $ | 22,720 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (8,029 | ) | (635 | ) | (7,907 | ) | 8,542 | (8,029 | ) | ||||||||||
Comprehensive Income (Loss) | $ | 14,691 | $ | 83,204 | $ | (3,616 | ) | $ | (79,588 | ) | $ | 14,691 |
The Company (Parent) | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
Six month period ended June 30, 2012 | (in thousands) | ||||||||||||||||||
Net sales | $ | 185,336 | $ | 250,609 | $ | 356,734 | $ | (64,860 | ) | $ | 727,819 | ||||||||
Cost of products sold | 140,516 | 180,344 | 245,002 | (64,424 | ) | 501,438 | |||||||||||||
Gross Profit | 44,820 | 70,265 | 111,732 | (436 | ) | 226,381 | |||||||||||||
Selling, general and administrative expenses | 66,022 | 45,796 | 92,717 | 639 | 205,174 | ||||||||||||||
Charge related to restructuring activities | 1,751 | 21 | 795 | — | 2,567 | ||||||||||||||
Loss on debt extinguishment including debt finance charges and associated fees | 312 | — | — | — | 312 | ||||||||||||||
Income (loss) from equity investee | 27,872 | 6,218 | 163 | (34,253 | ) | — | |||||||||||||
Interest expense (income)—net | (2,017 | ) | 4,620 | 1,603 | — | 4,206 | |||||||||||||
Earnings (Loss) from Continuing Operations before Income Taxes | 6,624 | 26,046 | 16,780 | (35,328 | ) | 14,122 | |||||||||||||
Income taxes (benefit) | 368 | (1,354 | ) | 13,809 | — | 12,823 | |||||||||||||
Net Earnings (Loss) from Continuing Operations | 6,256 | 27,400 | 2,971 | (35,328 | ) | 1,299 | |||||||||||||
Net Earnings from Discontinued Operations | — | 4,957 | — | — | 4,957 | ||||||||||||||
Net Earnings (loss) | $ | 6,256 | $ | 32,357 | $ | 2,971 | $ | (35,328 | ) | $ | 6,256 | ||||||||
Other Comprehensive Income (Loss), Net of Tax | (39,191 | ) | 15 | (39,290 | ) | 39,275 | (39,191 | ) | |||||||||||
Comprehensive Income (Loss) | $ | (32,935 | ) | $ | 32,372 | $ | (36,319 | ) | $ | 3,947 | $ | (32,935 | ) |
The Company (Parent) | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
June 30, 2013 | (in thousands) | ||||||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 1,764 | $ | 471 | $ | 19,212 | $ | — | $ | 21,447 | |||||||||
Trade receivables, net | 70,610 | 38,737 | 96,022 | — | 205,369 | ||||||||||||||
Installment receivables, net | — | 667 | 1,147 | — | 1,814 | ||||||||||||||
Inventories, net | 30,963 | 28,766 | 118,062 | (3,184 | ) | 174,607 | |||||||||||||
Deferred income taxes | — | — | 1,140 | — | 1,140 | ||||||||||||||
Other current assets | 8,966 | 506 | 28,513 | (1,340 | ) | 36,645 | |||||||||||||
Total Current Assets | 112,303 | 69,147 | 264,096 | (4,524 | ) | 441,022 | |||||||||||||
Investment in subsidiaries | 1,470,805 | 552,873 | — | (2,023,678 | ) | — | |||||||||||||
Intercompany advances, net | 81,909 | 881,419 | 199,990 | (1,163,318 | ) | — | |||||||||||||
Other Assets | 41,092 | 402 | 973 | — | 42,467 | ||||||||||||||
Other Intangibles | 501 | 20,272 | 45,826 | — | 66,599 | ||||||||||||||
Property and Equipment, net | 38,689 | 19,552 | 54,201 | — | 112,442 | ||||||||||||||
Goodwill | — | 32,937 | 426,930 | — | 459,867 | ||||||||||||||
Total Assets | $ | 1,745,299 | $ | 1,576,602 | $ | 992,016 | $ | (3,191,520 | ) | $ | 1,122,397 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 50,266 | $ | 9,768 | $ | 55,857 | $ | — | $ | 115,891 | |||||||||
Accrued expenses | 32,785 | 18,889 | 81,501 | (1,340 | ) | 131,835 | |||||||||||||
Accrued income taxes | 3,853 | — | 5,387 | — | 9,240 | ||||||||||||||
Short-term debt and current maturities of long-term obligations | 988 | 7 | 783 | — | 1,778 | ||||||||||||||
Total Current Liabilities | 87,892 | 28,664 | 143,528 | (1,340 | ) | 258,744 | |||||||||||||
Long-Term Debt | 81,316 | 102 | 31,856 | — | 113,274 | ||||||||||||||
Other Long-Term Obligations | 53,671 | — | 59,245 | — | 112,916 | ||||||||||||||
Intercompany advances, net | 884,957 | 270,493 | 7,868 | (1,163,318 | ) | — | |||||||||||||
Total Shareholders’ Equity | 637,463 | 1,277,343 | 749,519 | (2,026,862 | ) | 637,463 | |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,745,299 | $ | 1,576,602 | $ | 992,016 | $ | (3,191,520 | ) | $ | 1,122,397 |
The Company (Parent) | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
December 31, 2012 | (in thousands) | ||||||||||||||||||
Assets | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 5,774 | $ | 1,018 | $ | 31,999 | $ | — | $ | 38,791 | |||||||||
Trade receivables, net | 71,622 | 37,223 | 89,946 | — | 198,791 | ||||||||||||||
Installment receivables, net | — | 829 | 1,359 | — | 2,188 | ||||||||||||||
Inventories, net | 40,278 | 31,455 | 114,169 | (2,656 | ) | 183,246 | |||||||||||||
Other current assets | 12,727 | 473 | 34,606 | (6,030 | ) | 41,776 | |||||||||||||
Assets held for sale - current | — | 103,157 | — | — | 103,157 | ||||||||||||||
Total Current Assets | 130,401 | 174,155 | 272,079 | (8,686 | ) | 567,949 | |||||||||||||
Investment in subsidiaries | 1,536,898 | 523,176 | 6,888 | (2,066,962 | ) | — | |||||||||||||
Intercompany advances, net | 81,533 | 874,567 | 238,270 | (1,194,370 | ) | — | |||||||||||||
Other Assets | 41,006 | 314 | 942 | — | 42,262 | ||||||||||||||
Other Intangibles | 663 | 22,211 | 48,778 | — | 71,652 | ||||||||||||||
Property and Equipment, net | 39,911 | 19,957 | 58,363 | — | 118,231 | ||||||||||||||
Goodwill | — | 32,937 | 429,263 | — | 462,200 | ||||||||||||||
Total Assets | $ | 1,830,412 | $ | 1,647,317 | $ | 1,054,583 | $ | (3,270,018 | ) | $ | 1,262,294 | ||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 63,812 | $ | 9,465 | $ | 59,771 | $ | — | $ | 133,048 | |||||||||
Accrued expenses | 36,716 | 18,155 | 86,348 | (6,030 | ) | 135,189 | |||||||||||||
Accrued income taxes | 1,545 | — | 1,168 | — | 2,713 | ||||||||||||||
Short-term debt and current maturities of long-term obligations | 4,552 | 7 | 868 | — | 5,427 | ||||||||||||||
Liabilities held for sale - current | — | 23,358 | — | — | 23,358 | ||||||||||||||
Total Current Liabilities | 106,625 | 50,985 | 148,155 | (6,030 | ) | 299,735 | |||||||||||||
Long-Term Debt | 223,014 | 143 | 6,218 | — | 229,375 | ||||||||||||||
Other Long-Term Obligations | 52,957 | — | 59,238 | — | 112,195 | ||||||||||||||
Intercompany advances, net | 826,827 | 271,353 | 96,190 | (1,194,370 | ) | — | |||||||||||||
Total Shareholders’ Equity | 620,989 | 1,324,836 | 744,782 | (2,069,618 | ) | 620,989 | |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,830,412 | $ | 1,647,317 | $ | 1,054,583 | $ | (3,270,018 | ) | $ | 1,262,294 |
The Company (Parent) | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
Six month period ended June 30, 2013 | (in thousands) | ||||||||||||||||||
Net Cash Provided (Used) by Operating Activities | $ | 27,489 | $ | (78,678 | ) | $ | (30,512 | ) | $ | 51,737 | $ | (29,964 | ) | ||||||
Investing Activities | |||||||||||||||||||
Purchases of property and equipment | (2,817 | ) | (2,338 | ) | (2,511 | ) | — | (7,666 | ) | ||||||||||
Proceeds from sale of property and equipment | — | — | 9 | — | 9 | ||||||||||||||
Proceeds from sale of business | — | 144,681 | — | — | 144,681 | ||||||||||||||
Other long-term assets | (419 | ) | — | (3 | ) | — | (422 | ) | |||||||||||
Other | 117,937 | (63,536 | ) | — | (54,431 | ) | (30 | ) | |||||||||||
Net Cash Provided (Used) for Investing Activities | 114,701 | 78,807 | (2,505 | ) | (54,431 | ) | 136,572 | ||||||||||||
Financing Activities | |||||||||||||||||||
Proceeds from revolving lines of credit and long-term borrowings | 172,878 | — | 23,521 | — | 196,399 | ||||||||||||||
Payments on revolving lines of credit and long-term borrowings | (318,287 | ) | (676 | ) | — | — | (318,963 | ) | |||||||||||
Payment of dividends | (791 | ) | — | (2,694 | ) | 2,694 | (791 | ) | |||||||||||
Net Cash Provided (Used) by Financing Activities | (146,200 | ) | (676 | ) | 20,827 | 2,694 | (123,355 | ) | |||||||||||
Effect of exchange rate changes on cash | — | — | (597 | ) | — | (597 | ) | ||||||||||||
Decrease in cash and cash equivalents | (4,010 | ) | (547 | ) | (12,787 | ) | — | (17,344 | ) | ||||||||||
Cash and cash equivalents at beginning of year | 5,774 | 1,018 | 31,999 | — | 38,791 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 1,764 | $ | 471 | $ | 19,212 | $ | — | $ | 21,447 |
The Company (Parent) | Combined Guarantor Subsidiaries | Combined Non-Guarantor Subsidiaries | Eliminations | Total | |||||||||||||||
Six month period ended June 30, 2012 | (in thousands) | ||||||||||||||||||
Net Cash Provided (Used) by Operating Activities | $ | 6,989 | $ | 5,952 | $ | (4,554 | ) | $ | (639 | ) | $ | 7,748 | |||||||
Investing Activities | |||||||||||||||||||
Purchases of property and equipment | — | (6,195 | ) | (3,599 | ) | — | (9,794 | ) | |||||||||||
Proceeds from sale of property and equipment | 20 | 13 | 16 | — | 49 | ||||||||||||||
Other long-term assets | (144 | ) | — | (6 | ) | — | (150 | ) | |||||||||||
Other | (158 | ) | (117 | ) | 10 | — | (265 | ) | |||||||||||
Net Cash Used for Investing Activities | (282 | ) | (6,299 | ) | (3,579 | ) | — | (10,160 | ) | ||||||||||
Financing Activities | |||||||||||||||||||
Proceeds from revolving lines of credit and long-term borrowings | 170,728 | — | 80 | — | 170,808 | ||||||||||||||
Payments on revolving lines of credit and long-term borrowings | (176,304 | ) | (30 | ) | — | — | (176,334 | ) | |||||||||||
Payment of financing costs | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Payment of dividends | (787 | ) | — | (639 | ) | 639 | (787 | ) | |||||||||||
Net Cash Provided (Used) by Financing Activities | (6,364 | ) | (30 | ) | (559 | ) | 639 | (6,314 | ) | ||||||||||
Effect of exchange rate changes on cash | — | — | (703 | ) | — | (703 | ) | ||||||||||||
Increase (Decrease) in cash and cash equivalents | 343 | (377 | ) | (9,395 | ) | — | (9,429 | ) | |||||||||||
Cash and cash equivalents at beginning of year | 3,642 | 2,104 | 29,178 | — | 34,924 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 3,985 | $ | 1,727 | $ | 19,783 | $ | — | $ | 25,495 |
• | On May 13, 2013, the company announced that the FDA accepted the company's first certification report. As a result, the company was able to resume manufacturing parts and components at the Taylor Street facility that are used to manufacture products at other company facilities. |
• | On July 16, 2013, the company announced that the FDA accepted the company's second certification report relating to design control systems at the company's Corporate and Taylor Street facilities. This acceptance permits the company to resume design activities for power wheelchairs and power beds. |
• | The final and most comprehensive third-party certification audit is a thorough review of the company's compliance with the FDA's Quality System Regulation at the impacted Elyria facilities. In light of the scope and complexity of the audit, the company now expects the third-party certification report to be completed and filed with the FDA by mid-November 2013. |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
Net cash provided by operating activities | $ | (29,964 | ) | $ | 7,748 | ||
Plus: Net cash impact related to restructuring activities | 4,504 | 4,309 | |||||
Less: Purchases of property and equipment—net | (7,657 | ) | (9,745 | ) | |||
Free Cash Flow | $ | (33,117 | ) | $ | 2,312 |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (2) | |||||||
4/1/2013 | - | 4/30/2013 | 81 | $ | 14.60 | — | 2,453,978 | ||||
5/1/2013 | - | 5/31/2013 | — | — | — | 2,453,978 | |||||
6/1/2013 | - | 6/30/2013 | — | — | — | 2,453,978 | |||||
Total | 81 | $ | 14.60 | — | 2,453,978 |
(1) | All 81 shares repurchased between April 1, 2013 and June 30, 2013 were surrendered to the company by employees for minimum tax withholding purposes in conjunction with the vesting of restricted shares awarded to the employees by the company. |
(2) | In 2001, the Board of Directors authorized the company to purchase up to 2,000,000 Common Shares, excluding any shares acquired from employees or directors as a result of the exercise of options or vesting of restricted shares pursuant to the company’s performance plans. The Board of Directors reaffirmed its authorization of this repurchase program on November 5, 2010, and on August 17, 2011 authorized an additional 2,046,500 shares for repurchase under the plan. To date, the company has purchased 1,592,522 shares under this program, with authorization remaining to purchase 2,453,978 shares. The company purchased no shares pursuant to this Board authorized program during the quarter ended June 30, 2013. |
Exhibit No. | |
31.1 | Chief Executive Officer Rule 13a-14(a)/15d-14(a) Certification (filed herewith). |
31.2 | Chief Financial Officer Rule 13a-14(a)/15d-14(a) Certification (filed herewith). |
32.1 | Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith). |
32.2 | Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith). |
101.INS* | XBRL instance document |
101.SCH* | XBRL taxonomy extension schema |
101.CAL* | XBRL taxonomy extension calculation linkbase |
101.DEF* | XBRL taxonomy extension definition linkbase |
101.LAB* | XBRL taxonomy extension label linkbase |
101.PRE* | XBRL taxonomy extension presentation linkbase |
INVACARE CORPORATION | ||||
Date: | August 9, 2013 | By: | /s/ Robert K. Gudbranson | |
Name: Robert K. Gudbranson | ||||
Title: Chief Financial Officer | ||||
(As Principal Financial and Accounting Officer and on behalf of the registrant) |
1. | I have reviewed this quarterly report on Form 10-Q of Invacare Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
INVACARE CORPORATION | ||
/s/ GERALD B. BLOUCH | ||
Gerald B. Blouch Chief Executive Officer (Principal Executive Officer) | ||
Date: | August 9, 2013 |
1. | I have reviewed this quarterly report on Form 10-Q of Invacare Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
INVACARE CORPORATION | ||
/s/ ROBERT K. GUDBRANSON | ||
Robert K. Gudbranson Chief Financial Officer (Principal Financial Officer) | ||
Date: | August 9, 2013 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company. |
/s/ GERALD B. BLOUCH | ||
Gerald B. Blouch Chief Executive Officer | ||
Date: | August 9, 2013 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company. |
/s/ ROBERT K. GUDBRANSON | ||
Robert K. Gudbranson Chief Financial Officer | ||
Date: | August 9, 2013 |
Subsequent Events (Details) (USD $)
|
0 Months Ended |
---|---|
Aug. 07, 2013
|
|
Subsequent Events [Abstract] | |
Subsequent Event, Date | Aug. 07, 2013 |
Subsequent Events, Proceeds From Divestiture Of Businesses | $ 45,000,000 |
Subsequent Events, Proceeds From Divestiture Of Businesses, Net | $ 43,000,000 |
Net Earnings (Loss) Per Common Share Computation of Basic and Diluted Net Earnings (Loss) Per Common Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Basic | ||||
Average common shares outstanding | 31,902 | 31,818 | 31,902 | 31,819 |
Net Earnings (loss) | $ (12,461) | $ (1,977) | $ 22,720 | $ 6,256 |
Net earnings (loss) per common share | $ (0.39) | $ (0.07) | $ 0.72 | $ 0.20 |
Income (Loss) from Continuing Operations Attributable to Parent | (23,041) | (4,306) | (27,574) | 1,299 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 10,580 | 2,329 | 50,294 | 4,957 |
Income (Loss) from Continuing Operations, Per Basic Share | $ (0.72) | $ (0.14) | $ (0.86) | $ 0.04 |
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share | $ 0.33 | $ 0.07 | $ 1.58 | $ 0.16 |
Diluted | ||||
Average common shares outstanding | 31,902 | 31,818 | 31,902 | 31,819 |
Shares related to convertible debt | 0 | 0 | 0 | 0 |
Stock options and awards | 122 | 4 | 78 | 3 |
Average common shares assuming dilution | 32,024 | 31,822 | 31,980 | 31,822 |
Net Earnings (loss) | $ (12,461) | $ (1,977) | $ 22,720 | $ 6,256 |
Net Earnings (loss) per Share - Assuming Dilution | $ (0.39) | $ (0.07) | $ 0.71 | $ 0.20 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ (0.72) | $ (0.14) | $ (0.86) | $ 0.04 |
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share | $ 0.33 | $ 0.07 | $ 1.57 | $ 0.16 |
Concentration Of Credit Risk (Details) (USD $)
|
Jun. 30, 2013
|
---|---|
Concentration Risk [Line Items] | |
Retained Recourse Obligation For Events Of Default Under Contracts | $ 6,294,000 |
Events of Default Under Contract by Third Party | $ 53,568,000 |
Long-Term Debt
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Debt consists of the following (in thousands):
The reduction in debt during the year was the result of utilizing the proceeds from the sale of the discontinued operation ISG to reduce borrowing under the company's revolving credit agreement. On May 30, 2013, the company entered into a Fourth Amendment ("the Amendment") to its Credit Agreement (the “Credit Agreement”). Pursuant to the Amendment, the Credit Agreement was amended to, for the following: (i) decrease the aggregate principal amount of the revolving credit facility to $250,000,000 from $400,000,000, and limit the Company's borrowings under the revolving credit facility to an amount not to exceed $200,000,000 aggregate principal amount through December 31, 2013; (ii) increase the maximum leverage ratio (consolidated funded indebtedness to consolidated EBITDA, each as defined in the Credit Agreement, as amended) to 4.00 to 1.00 from 3.50 to 1.00 until January 1, 2014, when the maximum leverage ratio will revert back to 3.50 to 1.00; (iii) decrease the minimum interest coverage ratio (consolidated EBITDA to consolidated interest charges, each as defined in the Credit Agreement, as amended) to 3.00 to 1.00 from 3.50 to 1.00 until January 1, 2014, when the minimum interest coverage ratio will revert back to 3.50 to 1.00; (iv) in calculating consolidated EBITDA for purposes of determining the ratios, provide for the add back to consolidated EBITDA of up to an additional $15,000,000 for future one-time cash restructuring charges and (v) provide for an increase of (A) 25 basis points in the margin applicable to determining the interest rate on borrowings under the revolving credit facility and letter of credit fees and (B) 10 basis points in the commitment fee, all during periods when the leverage ratio exceeds 3.50 to 1.00. As a result, the company incurred $436,000 in fees which were capitalized and are being amortized through October, 2015. In addition, as a result of reducing the capacity of the facility from $400,000,000 to $250,000,000, the company wrote-off $1,216,000 in fees previously capitalized, which is reflected in the expense of the North America / HME segment. In 2007, the company issued $135,000,000 principal amount of Convertible Senior Subordinated Debentures due 2027. The debentures are unsecured senior subordinated obligations of the company guaranteed by substantially all of the company’s domestic subsidiaries, pay interest at 4.125% per annum on each February 1 and August 1, and are convertible upon satisfaction of certain conditions into cash, common shares of the company, or a combination of cash and common shares of the company, subject to certain conditions. The debentures allow the company to satisfy the conversion using any combination of cash or stock, and at the company’s discretion. The company intends to satisfy the accreted value of the debentures using cash. Assuming adequate cash on hand at the time of conversion, the company also intends to satisfy the conversion spread using cash, as opposed to stock. The company may from time to time seek to retire or purchase its 4.125% Convertible Senior Subordinated Debentures due 2027, in open market purchases, privately negotiated transactions or otherwise. Such purchases or exchanges, if any, will depend on prevailing market conditions, the company's liquidity requirements, contractual restrictions and other factors. The amounts involved in any such transactions, individually or in the aggregate, may be material. The liability components of the company’s convertible debt consist of the following (in thousands):
The company is a party to interest rate swap agreements to effectively convert a portion of floating rate revolving credit facility debt to fixed rate debt to avoid the risk of changes in market interest rates. Specifically, interest rate swap agreements for notional amounts of $22,000,000 through September 2013 and $12,000,000 through April 2014 were entered into that fix the LIBOR component of the interest rate on that portion of the revolving credit facility debt at rates of 0.46% and 0.54% respectively, for effective aggregate rates of 2.46% and 2.54%, respectively. As of June 30, 2013, the weighted average floating interest rate on borrowing was 2.14% compared to 2.21% as of December 31, 2012. |
Receivables Rollforward of Allowance for Doubtful Accounts (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Installment Receivables [Member]
|
Dec. 31, 2012
Installment Receivables [Member]
|
|
Allowance for Doubtful Accounts [Roll Forward] | ||||
Balance as of January 1 | $ 3,823 | $ 3,823 | $ 4,273 | |
Current period provision | 1,603 | 2,828 | 307 | 458 |
Direct write-offs charged against the allowance | (517) | (908) | ||
Balance as of December 31 | $ 3,613 | $ 3,613 | $ 3,823 |
Inventories
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of the following (in thousands):
|
Derivatives
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives ASC 815 requires companies to recognize all derivative instruments in the consolidated balance sheet as either assets or liabilities at fair value. The accounting for changes in fair value of a derivative is dependent upon whether or not the derivative has been designated and qualifies for hedge accounting treatment and the type of hedging relationship. For derivatives designated and qualifying as hedging instruments, the company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Cash Flow Hedging Strategy The company uses derivative instruments in an attempt to manage its exposure to foreign currency exchange risk and interest rate risk. Foreign currency forward exchange contracts are used to manage the price risk associated with forecasted sales denominated in foreign currencies and the price risk associated with forecasted purchases of inventory over the next twelve months. Interest rate swaps are, at times, utilized to manage interest rate risk associated with the company’s fixed and floating-rate borrowings. The company recognizes its derivative instruments as assets or liabilities in the consolidated balance sheet measured at fair value. A majority of the company’s derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the fair value of the hedged item, if any, is recognized in current earnings during the period of change. During the first six months of 2013 and 2012, the company was a party to interest rate swap agreements that qualified as cash flow hedges and effectively converted floating-rate debt to fixed-rate debt, so the company could avoid the risk of changes in market interest rates. The gains or losses on interest rate swaps are reflected in interest expense on the consolidated statement of comprehensive income (loss). To protect against increases/decreases in forecasted foreign currency cash flows resulting from inventory purchases/sales over the next year, the company utilizes foreign currency forward contracts to hedge portions of its forecasted purchases/sales denominated in foreign currencies. The gains and losses are included in cost of products sold and selling, general and administrative expenses on the consolidated statement of comprehensive income (loss). If it is later determined that a hedged forecasted transaction is unlikely to occur, any prospective gains or losses on the forward contracts would be recognized in earnings. The company does not expect any material amount of hedge ineffectiveness related to forward contract cash flow hedges during the next twelve months. The company has historically not recognized any material amount of ineffectiveness related to forward contract cash flow hedges because the company generally limits its hedges to between 60% and 90% of total forecasted transactions for a given entity’s exposure to currency rate changes and the transactions hedged are recurring in nature. Furthermore, the majority of the hedged transactions are related to intercompany sales and purchases for which settlement occurs on a specific day each month. Forward contracts with a total notional amount in USD of $47,178,000 and $80,673,000 matured during the three and six months ended June 30, 2013 compared to forward contracts with a total notional amount in USD of $47,191,000 and $84,158,000 that matured during the three and six months ended June 30, 2012. Outstanding foreign currency forward exchange contracts qualifying and designated for hedge accounting treatment were as follows (in thousands USD):
Derivatives Not Qualifying or Designated for Hedge Accounting Treatment The company also utilizes foreign currency forward contracts that are not designated as hedges in accordance with ASC 815. These contracts are entered into to eliminate the risk associated with the settlement of short-term intercompany trading receivables and payables between Invacare Corporation and its foreign subsidiaries. The currency forward contracts are entered into at the same time as the intercompany receivables or payables are created so that upon settlement, the gain/loss on the settlement is offset by the gain/loss on the foreign currency forward contract. No material net gain or loss was realized by the company in 2013 or 2012 related to these forward contracts and the associated short-term intercompany trading receivables and payables. Foreign currency forward exchange contracts not qualifying or designated for hedge accounting treatment entered into in 2013 and 2012, respectively, and outstanding were as follows (in thousands USD):
The fair values of the company’s derivative instruments were as follows (in thousands):
The fair values of the company’s foreign currency forward assets and liabilities are included in Other Current Assets and Accrued Expenses, respectively in the Consolidated Balance Sheets. The effect of derivative instruments on the Statement of Comprehensive Income (Loss) and Other Comprehensive Income (OCI) was as follows (in thousands):
The pre-tax gains or losses recognized as the result of the settlement of cash flow hedge foreign currency forward contracts are recognized in net sales for hedges of inventory sales or cost of product sold for hedges of inventory purchases. For the three and six months ended June 30, 2013, net sales were increased by $317,000 and $453,000 and cost of product sold was decreased by $20,000 and increased by $336,000 for net realized gains of $337,000 and $117,000. For the three and six months ended June 30, 2012, net sales were decreased by $63,000 and increased by $195,000 and cost of product sold was decreased by $753,000 and $1,317,000 for net realized gains of $690,000 and $1,512,000. The company recognized expense of $80,000 and $306,000 for the three and six months ended June 30, 2013, respectively, compared to expense of $147,000 and $273,000 for the three and six months ended June 30, 2012, respectively, related to interest rate swap agreements, which is reflected in interest expense on the consolidated statement of comprehensive income (loss). Gains of $1,427,000 and $256,000 versus losses of $102,000 and $18,000 were recognized in selling, general and administrative (SG&A) expenses for the three months ended June 30, 2013 and June 30, 2012, respectively, on ineffective forward contracts and forward contracts not designated as hedging instruments that are entered into to offset gains/losses also recorded in SG&A expenses on intercompany trade payables. Any gains/losses on the non designated hedging instruments were substantially offset by gains/losses also recorded in SG&A expenses on intercompany trade payables. The company has entered into foreign exchange forward contracts and interest rate swap contracts (the “agreements”) with various bank counterparties, each of which are subject to provisions which are similar to a master netting agreement. The agreements provide for a net settlement payment in a single currency upon a default by the company. Furthermore, the agreements provide the counterparty with a right of set off in the event of a default that would enable the counterparty to offset any net payment due by the counterparty to the company under the applicable agreement by any amount due by the company to the counterparty under any other agreement. For example, the terms of the agreement would permit a counterparty to a derivative contract that is also a lender under the company's Credit Agreement to reduce any derivative settlement amounts owed to the company under the derivative contract by any amounts owed to the counterparty by the company under the Credit Agreement. In addition, the agreements contain cross-default provisions that could trigger a default by the company under the agreement in the event of a default by the company under another agreement with the same counterparty. The company does not present any derivatives on a net basis in its financial statements and all derivative balances presented are subject to provisions that are similar to master netting agreements. |
Long-Term Debt Interest Rate Swaps (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Derivative [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 2.14% | 2.21% |
Interest Rate Derivative, September 2013, .46% [Member] | Interest Rate Swap [Member]
|
||
Derivative [Line Items] | ||
Notional Amount of Interest Rate Derivatives | $ 22,000,000 | |
Derivative, Fixed Interest Rate on LIBOR Component | 0.46% | |
Derivative, Effective Aggregate Interest Rate | 2.46% | |
Interest Rate Derivative, April 2014, .54% [Member] | Interest Rate Swap [Member]
|
||
Derivative [Line Items] | ||
Notional Amount of Interest Rate Derivatives | $ 12,000,000 | |
Derivative, Fixed Interest Rate on LIBOR Component | 0.54% | |
Derivative, Effective Aggregate Interest Rate | 2.54% |
Inventories (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Inventory, Net [Abstract] | ||
Finished goods | $ 97,215 | $ 94,675 |
Raw materials | 62,271 | 71,596 |
Work in process | 15,121 | 16,975 |
Inventory, Net | $ 174,607 | $ 183,246 |
Shareholders' Equity Transactions
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity Transactions | Shareholders’ Equity Transactions On May 16, 2013 shareholders approved the Invacare Corporation 2013 Equity Compensation Plan (the “2013 Plan”), which was adopted on March 27, 2013 by the company's Board of Directors (the “Board”). The Board adopted the 2013 Plan because the ten-year term of the company's prior equity plan, the Invacare Corporation Amended and Restated 2003 Performance Plan (the “2003 Plan”), expired on May 21, 2013. No new awards will be granted under the 2003 Plan following its expiration, but awards granted prior to its expiration will remain in effect under their original terms. The 2013 Plan uses a fungible share-counting method, under which each common share underlying an award of stock options or SARs will count against the number of total shares available under the 2013 Plan as one share; and each common share underlying any award other than a stock option or a stock appreciation rights (“SAR”) will count against the number of total shares available under the 2013 Plan as two shares. Any common shares that are added back to the 2013 Plan as the result of the cancellation or forfeiture of an award granted under the 2013 Plan will be added back in the same manner such shares were originally counted against the total number of shares available under the 2013 Plan. Each common share that is added back to the 2013 Plan due to a cancellation or forfeiture of an award granted under the 2003 Plan will be added back as one common share. The Compensation and Management Development Committee of the Board (the “Committee”), in its discretion, may grant an award under the 2013 Plan to any director or employee of the company or an affiliate. The 2013 Plan initially allows the Committee to grant up to 4,460,337 Common Shares in connection with the following types of awards with respect to shares of the company's common shares: incentive stock options, nonqualified stock options, SARs, restricted stock, restricted stock units, unrestricted stock, and performance shares. The Committee also may grant performance units that are payable in cash. The Committee has the authority to determine which participants will receive awards, the amount of the awards and the other terms and conditions of the awards. During the six months ended June 30, 2013, the Committee granted 756,700 non-qualified stock options, each having a term of ten years and generally granted at the fair market value of the company’s Common Shares on the date of grant. In addition, restricted stock awards for 114,700 shares were granted without cost to the recipients which vest ratably over the four years after the award date. Compensation expense of $1,014,000 was recognized during the six months ended June 30, 2013 related to restricted stock awards and there were outstanding restricted stock awards totaling 362,323 shares that were not vested. As of June 30, 2013, there was $15,825,000 of total unrecognized compensation cost from stock-based compensation arrangements granted under the plan, which is related to non-vested options and shares, and includes $4,722,000 related to restricted stock awards. The company expects the compensation expense to be recognized over a weighted-average period of approximately two years. The following table summarizes information about stock option activity for the six months ended June 30, 2013:
________________________
The following table summarizes information about stock options outstanding at June 30, 2013:
When stock options are awarded, they generally become exercisable over a four-year vesting period whereby options vest in equal installments each year. Options granted with graded vesting are accounted for as single options. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate and expected life. The assumed expected life is based on the company's historical analysis of option history. The expected stock price volatility is also based on actual historical volatility, and expected dividend yield is based on historical dividends as the company has no current intention of changing its dividend policy. The 2013 Plan provides that shares granted come from the company's authorized but unissued Common Shares or treasury shares. In addition, the company's stock-based compensation plans allow employee participants to exchange shares for minimum withholding taxes, which results in the company acquiring treasury shares. |
Supplemental Guarantor Information Consolidating Condensed Statements of Operations (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
The Company (Parent) [Member]
|
Jun. 30, 2012
The Company (Parent) [Member]
|
Jun. 30, 2013
The Company (Parent) [Member]
|
Jun. 30, 2012
The Company (Parent) [Member]
|
Jun. 30, 2013
Combined Guarantor Subsidiaries [Member]
|
Jun. 30, 2012
Combined Guarantor Subsidiaries [Member]
|
Jun. 30, 2013
Combined Guarantor Subsidiaries [Member]
|
Jun. 30, 2012
Combined Guarantor Subsidiaries [Member]
|
Jun. 30, 2013
Combined Non-Guarantor Subsidiaries [Member]
|
Jun. 30, 2012
Combined Non-Guarantor Subsidiaries [Member]
|
Jun. 30, 2013
Combined Non-Guarantor Subsidiaries [Member]
|
Jun. 30, 2012
Combined Non-Guarantor Subsidiaries [Member]
|
Jun. 30, 2013
Eliminations [Member]
|
Jun. 30, 2012
Eliminations [Member]
|
Jun. 30, 2013
Eliminations [Member]
|
Jun. 30, 2012
Eliminations [Member]
|
Jun. 30, 2013
Convertible Senior Subordinated Debentures February 2027 [Member]
Convertible Subordinated Debt [Member]
|
Feb. 17, 2007
Convertible Senior Subordinated Debentures February 2027 [Member]
Convertible Subordinated Debt [Member]
|
|
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Net sales | $ 351,796,000 | $ 372,719,000 | $ 689,412,000 | $ 727,819,000 | $ 64,903,000 | $ 95,304,000 | $ 125,812,000 | $ 185,336,000 | $ 133,056,000 | $ 125,956,000 | $ 257,671,000 | $ 250,609,000 | $ 177,582,000 | $ 183,346,000 | $ 351,507,000 | $ 356,734,000 | $ (23,745,000) | $ (31,887,000) | $ (45,578,000) | $ (64,860,000) | ||
Interest Rate | 4.125% | |||||||||||||||||||||
Debt Instrument, Face Amount | 135,000,000 | |||||||||||||||||||||
Cost of Goods Sold | 255,716,000 | 256,935,000 | 497,554,000 | 501,438,000 | 55,077,000 | 72,564,000 | 107,430,000 | 140,516,000 | 96,187,000 | 90,439,000 | 186,021,000 | 180,344,000 | 128,350,000 | 125,587,000 | 250,055,000 | 245,002,000 | (23,898,000) | (31,655,000) | (45,952,000) | (64,424,000) | ||
Gross Profit | 96,080,000 | 115,784,000 | 191,858,000 | 226,381,000 | 9,826,000 | 22,740,000 | 18,382,000 | 44,820,000 | 36,869,000 | 35,517,000 | 71,650,000 | 70,265,000 | 49,232,000 | 57,759,000 | 101,452,000 | 111,732,000 | 153,000 | (232,000) | 374,000 | (436,000) | ||
Selling, general and administrative expense | 104,929,000 | 104,461,000 | 208,948,000 | 205,174,000 | 35,407,000 | 33,253,000 | 70,270,000 | 66,022,000 | 24,819,000 | 22,914,000 | 48,654,000 | 45,796,000 | 43,353,000 | 47,655,000 | 87,330,000 | 92,717,000 | 1,350,000 | 639,000 | 2,694,000 | 639,000 | ||
Restructuring Charges | 2,592,000 | 2,006,000 | 5,114,000 | 2,567,000 | 1,810,000 | 1,745,000 | 3,481,000 | 1,751,000 | 13,000 | 0 | 13,000 | 21,000 | 769,000 | 261,000 | 1,620,000 | 795,000 | 0 | 0 | 0 | 0 | ||
Loss on debt extinguishment including debt finance charges and associated fees | 0 | 312,000 | 0 | 312,000 | 312,000 | 312,000 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
Payment of Financing Costs | 0 | 1,000 | 1,000 | 0 | 0 | 0 | ||||||||||||||||
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 0 | 25,370,000 | 9,626,000 | 73,388,000 | 27,872,000 | 6,729,000 | 5,174,000 | 12,537,000 | 6,218,000 | (180,000) | (36,000) | (115,000) | 163,000 | (31,919,000) | (14,764,000) | (85,810,000) | (34,253,000) | ||
Interest Income (Expense), Net | 950,000 | 2,156,000 | 2,170,000 | 4,206,000 | (399,000) | (1,147,000) | (444,000) | (2,017,000) | 1,329,000 | 2,459,000 | 1,975,000 | 4,620,000 | 20,000 | 844,000 | 639,000 | 1,603,000 | 0 | 0 | 0 | 0 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (12,391,000) | 6,849,000 | (24,374,000) | 14,122,000 | (1,622,000) | (1,797,000) | 18,463,000 | 6,624,000 | 17,437,000 | 15,318,000 | 33,545,000 | 26,046,000 | 4,910,000 | 8,963,000 | 11,748,000 | 16,780,000 | (33,116,000) | (15,635,000) | (88,130,000) | (35,328,000) | ||
Income Tax Expense (Benefit) | 10,650,000 | 11,155,000 | 3,200,000 | 12,823,000 | 10,839,000 | 180,000 | (4,257,000) | 368,000 | 0 | (959,000) | 0 | (1,354,000) | (189,000) | 11,934,000 | 7,457,000 | 13,809,000 | 0 | 0 | 0 | 0 | ||
Income (Loss) from Continuing Operations Attributable to Parent | (23,041,000) | (4,306,000) | (27,574,000) | 1,299,000 | (12,461,000) | (1,977,000) | 22,720,000 | 6,256,000 | 17,437,000 | 16,277,000 | 33,545,000 | 27,400,000 | 5,099,000 | (2,971,000) | 4,291,000 | 2,971,000 | (33,116,000) | (15,635,000) | (88,130,000) | (35,328,000) | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 10,580,000 | 2,329,000 | 50,294,000 | 4,957,000 | 0 | 0 | 0 | 0 | 10,580,000 | 2,329,000 | 50,294,000 | 4,957,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
Net Earnings (loss) | (12,461,000) | (1,977,000) | 22,720,000 | 6,256,000 | (12,461,000) | (1,977,000) | 22,720,000 | 6,256,000 | 28,017,000 | 18,606,000 | 83,839,000 | 32,357,000 | 5,099,000 | (2,971,000) | 4,291,000 | 2,971,000 | (33,116,000) | (15,635,000) | (88,130,000) | (35,328,000) | ||
Other Comprehensive Income (Loss), Net of Tax | (8,163,000) | (40,377,000) | (8,029,000) | (39,191,000) | (8,163,000) | (40,377,000) | (8,029,000) | (39,191,000) | 1,551,000 | (1,830,000) | (635,000) | 15,000 | (9,694,000) | (39,140,000) | (7,907,000) | (39,290,000) | 8,143,000 | 40,970,000 | 8,542,000 | 39,275,000 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (20,624,000) | $ (42,354,000) | $ 14,691,000 | $ (32,935,000) | $ (20,624,000) | $ (42,354,000) | $ 14,691,000 | $ (32,935,000) | $ 29,568,000 | $ 16,776,000 | $ 83,204,000 | $ 32,372,000 | $ (4,595,000) | $ (42,111,000) | $ (3,616,000) | $ (36,319,000) | $ (24,973,000) | $ 25,335,000 | $ (79,588,000) | $ 3,947,000 |
Supplemental Guarantor Information Supplemental Guarantor Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Guarantor Obligations [Table Text Block] |
CONSOLIDATING CONDENSED BALANCE SHEETS
CONSOLIDATING CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
CONSOLIDATING CONDENSED BALANCE SHEETS
CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS
CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS
|
Derivatives Balance Sheet Location (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
Jun. 30, 2013
Foreign Exchange Forward [Member]
|
Jun. 30, 2012
Foreign Exchange Forward [Member]
|
Jun. 30, 2013
Foreign Exchange Forward [Member]
|
Jun. 30, 2012
Foreign Exchange Forward [Member]
|
Jun. 30, 2013
Foreign Exchange Forward [Member]
Designated as Hedging Instrument [Member]
|
Dec. 31, 2012
Foreign Exchange Forward [Member]
Designated as Hedging Instrument [Member]
|
Jun. 30, 2013
Foreign Exchange Forward [Member]
Not Designated as Hedging Instrument [Member]
|
Dec. 31, 2012
Foreign Exchange Forward [Member]
Not Designated as Hedging Instrument [Member]
|
Jun. 30, 2013
Interest Rate Swap [Member]
Designated as Hedging Instrument [Member]
|
Dec. 31, 2012
Interest Rate Swap [Member]
Designated as Hedging Instrument [Member]
|
|
Derivatives, Fair Value [Line Items] | ||||||||||||
Notional Amount of Derivatives, Matured During Period | $ 47,178,000 | $ 47,191,000 | $ 80,673,000 | $ 84,158,000 | ||||||||
Derivative Assets | 1,496,000 | 1,062,000 | 1,199,000 | 375,000 | 297,000 | 687,000 | 0 | 0 | ||||
Liabilities | $ 1,213,000 | $ 1,373,000 | $ 1,130,000 | $ 915,000 | $ 41,000 | $ 142,000 | $ 42,000 | $ 316,000 |
Other Current Assets (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Other Current Assets [Abstract] | ||
Value Added Tax Receivable, Current | $ 15,831 | $ 18,002 |
Income Taxes Receivable, Current | 3,519 | 6,192 |
Derivative Assets | 1,496 | 1,062 |
Prepaid Insurance | 921 | 2,241 |
Prepaid Expense and Other Assets, Current | 14,878 | 14,279 |
Other current assets | $ 36,645 | $ 41,776 |
Current Liabilities (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued expenses consist of accruals for the following (in thousands):
|
Contingencies
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies General In the ordinary course of its business, the company is a defendant in a number of lawsuits, primarily product liability actions in which various plaintiffs seek damages for injuries allegedly caused by defective products. All of the product liability lawsuits in the United States have been referred to the company's captive insurance company and/or excess insurance carriers while all non-U.S. lawsuits have been referred to the company's commercial insurance carriers. All such lawsuits are generally contested vigorously. The coverage territory of the company's insurance is worldwide with the exception of those countries with respect to which, at the time the product is sold for use or at the time a claim is made, the U.S. government has suspended or prohibited diplomatic or trade relations. The amount recorded for identified contingent liabilities is based on estimates. Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available. Actual costs to be incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures. As a medical device manufacturer, the company is subject to extensive government regulation, including numerous laws directed at preventing fraud and abuse and laws regulating reimbursement under various government programs. The marketing, invoicing, documenting and other practices of health care suppliers and manufacturers are all subject to government scrutiny. Violations of law or regulations can result in administrative, civil and criminal penalties and sanctions, including disqualification from Medicare and other reimbursement programs, which could have a material adverse effect on the company's business. FDA Matters The FDA regulates virtually all aspects of the development, testing, manufacturing, labeling, promotion, distribution and marketing of a medical device. The company's failure to comply with the regulatory requirements of the FDA and other applicable U.S. medical device regulatory requirements may subject the company to administrative or judicially imposed sanctions. These sanctions include warning letters, civil penalties, criminal penalties, injunctions, consent decrees, product seizure or detention, product recalls and total or partial suspension of production. As previously disclosed, in December 2011, the FDA requested that the company agree to a consent decree of injunction with respect to the company's Corporate facility and its Taylor Street wheelchair manufacturing facility in Elyria, Ohio. In December 2012, the company reached agreement with the FDA on the terms of the consent decree, which was approved and made effective by the U.S. District Court for the Northern District of Ohio on December 21, 2012. The consent decree limits the company's manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility. The decree also temporarily had limited design activities related to wheelchairs and power beds that take place at the impacted Elyria, Ohio facilities, and these design restrictions were removed on July 15, 2013. The company is entitled to continue to produce from the Taylor Street manufacturing facility certain medically necessary products, as well as ongoing replacement, service and repair of products already in use, under terms delineated in the consent decree and is able to fulfill purchase orders and quotes that were in the company's order fulfillment system prior to the effective date of the decree. Under the terms of the consent decree, in order to resume full operations at the impacted facilities, the company must successfully complete a third-party expert certification audit and receive written notification from the FDA. The certification audit is comprised of three distinct reports. The expert certification audit will be followed by an FDA inspection of the company's compliance with the quality system regulations. Each of the three audits will result in a third-party expert report that will be reviewed by the FDA which will complete its own review procedures. The FDA has the authority to reinspect at any time. Once satisfied with the company's compliance, the FDA will provide written notification that the company is permitted to resume full operations at the impacted facilities. At the time of filing this Quarterly Report on Form 10-Q, the company has completed the first two of its third-party expert certification audits, and the FDA has found the results of both to be acceptable. In these reports, the third-party expert certified that the company's equipment and process validation procedures and its design control systems are compliant with the FDA's Quality System Regulation. As a result of the FDA's approval of the first certification audit, the Taylor Street facility was able to resume supplying parts and components for the further manufacturing of medical devices at other company facilities. The company's receipt of the FDA's approval on the second certification report resulted in the company being able to resume design activities related to power wheelchairs and power beds. The third, most comprehensive third-party certification audit is a comprehensive review of the company's compliance with the FDA's Quality System Regulation at the impacted Elyria facilities. The company began its third, final and most comprehensive third party certification audit in late March, and, in light of the scope and complexity of the audit, the company now expects the third-party certification report to be completed and filed with the FDA by mid-November 2013. Once completed, according to the consent decree, the FDA has thirty (30) days after receipt of the third expert certification audit results to commence its own inspection. However, it is possible that the FDA could ask questions or seek additional information concerning the third certification report. It is not possible for the company to estimate the timing or potential response of the FDA's inspection and subsequent written notifications. Following successful completion of the FDA inspection and the company's receipt of written notification from the FDA that the Corporate and Taylor Street facilities appear to be in compliance, the company may resume full operations at those facilities. As described above, because the limitations on production will only be temporary in nature, and partial production will be allowed, the company does not anticipate any major repair, replacement or scrapping of its fixed assets at the Taylor Street manufacturing facility. Based on the company's expectations at the time of filing of this Quarterly Report on Form 10-Q with respect to the time frame for completion of the third-party expert certifications audits and FDA inspection and with respect to future cash flows from production at the Taylor Street manufacturing facility, the company concluded that there is no impairment in the value of the fixed assets related to the Taylor Street manufacturing facility at June 30, 2013. The majority of the production from the Taylor Street facility is "made to order" custom wheelchairs for customers and, as a result, there was not a significant amount of finished goods inventory on hand at June 30, 2013. At the time of filing this Quarterly Report on Form 10-Q, the company believed that it would be able to obtain substantially all of the documentation required under the consent decree in order to complete the manufacture and shipment from the Taylor Street facility of the orders in the company's order fulfillment system and thus, the company concluded that there was not an impairment of the work in process and finished goods at the Taylor Street facility at June 30, 2013. Further, based on its analysis of the raw material inventory at the Taylor Street facility and the company's expectations at the time of filing of this Quarterly Report on Form 10-Q with respect to the time frame for completion of the third-party expert certification audits and FDA inspection, the company concluded that the value of the inventory was not excessive or impaired at June 30, 2013. However, if the company's expectations regarding the impacts of the limitations in the consent decree or the time frame for completion of the third-party expert certification audits and FDA inspection were to change, the company may, in future periods, conclude that an impairment exists with respect to its fixed assets or inventory at the Taylor Street facility. The North America/HME segment is the segment primarily impacted by the limitations in the consent decree. During 2012, before the effectiveness of the consent decree, the company started to experience decreases in net sales in this segment. Those decreases were primarily related to delays in new product introductions, uncertainty on the part of the company's customers as they coped with prepayment reviews and post-payment audits by the Centers for Medicare and Medicaid Services ("CMS") and contemplated their participation in the next round of National Competitive Bidding ("NCB"), and, the company believes, uncertainty regarding the resolution of the consent decree which limited the company's ability to renegotiate and bid on certain customer contracts and otherwise led to a decline in customer orders. The negative effect of the consent decree on customer orders and net sales has been considerable, and the company expects to experience further declines in net sales as a result of the limitations imposed by the consent decree. The company expects to continue to experience decreased net sales in the segment at least until it has successfully completed the previously-described third-party expert certification audit and FDA inspection and has received written notification from the FDA that the company may resume full operations at the Corporate and Taylor Street facilities. Even after the company is permitted to resume full operations at the affected facilities, it is uncertain as to whether, or how quickly, the company will be able to rebuild net sales to more typical historical levels, irrespective of market conditions. Accordingly, the limitations in the consent decree had, and likely will continue to have, a material adverse effect on the company's business, financial condition and results of operations. In the second quarter of 2013, the company recorded a warranty reserve of $3,800,000 related to a power wheelchair component performance issue. This estimate was calculated based on discussions with the FDA and the company's resultant expectation that an end user notification will not be adequate, and that a recall is probable which would involve the repair or replacement of the potentially affected components, which are sold globally. The power wheelchair component performance issue relates to an anomaly discovered in a fraction of a percentage of the components in the field. The company's warranty reserve for this power wheelchair component performance issue is based upon the company's actual experience with repairs and replacements in prior recalls. Any warranty reserve recorded related to this issue would be subject to adjustment as new developments or experiences change the company's estimate of the total cost of this matter. The company expects to work closely with the FDA to finalize its action plan related to the power wheelchair performance issue. For additional information regarding the consent decree, please see the following sections of the company's Annual Report on Form 10-K for the period ending December 31, 2012: Item 1. Business - Government Regulation and Item 1A. Risk Factors and the following sections of this Quarterly Report on Form 10-Q: Item 1. Legal Proceedings; and Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook and - Liquidity and Capital Resources. In addition, in December 2010, the company received a warning letter from the FDA related to quality system processes and procedures at the company's Sanford, Florida facility. The company has taken actions which it believes address all of the FDA's concerns in the warning letter. However, the results of regulatory claims, proceedings, investigations, or litigation are difficult to predict. An unfavorable resolution or outcome of the FDA warning letter could materially and adversely affect the company's business, financial condition, and results of operations. Any of the above contingencies could have an adverse impact on the company's financial condition or results of operations. |
Business Segments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments The company operates in four primary business segments: North America/Home Medical Equipment (North America/HME), Institutional Products Group (IPG), Europe and Asia/Pacific. The North America/HME segment sells each of three primary product lines, which includes: lifestyle, mobility and seating and respiratory therapy products. IPG sells or rents long-term care medical equipment, health care furnishings and accessory products. Europe and Asia/Pacific sell product lines similar to North America/HME and IPG. Each business segment sells to the home health care, retail and extended care markets. The company evaluates performance and allocates resources based on profit or loss from operations before income taxes for each reportable segment. The accounting policies of each segment are the same as those described in the summary of significant accounting policies for the company’s consolidated financial statements. Intersegment sales and transfers are based on the costs to manufacture plus a reasonable profit element. Therefore, intercompany profit or loss on intersegment sales and transfers is not considered in evaluating segment performance except for Asia/Pacific due to its significant intercompany sales volume relative to the segment. The information by segment is as follows (in thousands):
________________________
|
Fair Values of Financial Instruments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying values and fair values of the company’s financial instruments are as follows (in thousands):
|
Inventories (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories [Table Text Block] | Inventories consist of the following (in thousands):
|
Long-Term Debt (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | The liability components of the company’s convertible debt consist of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | Debt consists of the following (in thousands):
|
Accounting Policies (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Significant Accounting Policies [Line Items] | ||||
Share-based Compensation | $ 1,414 | $ 1,456 | $ 2,574 | $ 2,990 |
Accounting Policies (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The amounts of stock-based compensation expense recognized were as follows (in thousands):
|
Long-Term Debt (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Debt Instrument [Line Items] | ||
Long-term Debt | $ 115,052 | $ 234,802 |
Long-term Debt, Current Maturities | (1,778) | (5,427) |
Long-term Debt, Excluding Current Maturities | 113,274 | 229,375 |
Line of Credit [Member] | Senior Secured Revolving Credit Facility October 2015 [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 97,959 | 217,494 |
Convertible Subordinated Debt [Member] | Convertible Senior Subordinated Debentures February 2027 [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | 10,316 | 10,009 |
Notes Payable, Other Payables [Member] | Other Notes and Lease Obligations [Member]
|
||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 6,777 | $ 7,299 |
Accumulated Other Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | $ 112,877 | $ 112,743 | ||
OCI before reclassifications | (7,772) | (7,904) | ||
Amount reclassified from accumulated OCI | (391) | (125) | ||
Net current-period OCI | (8,163) | (40,377) | (8,029) | (39,191) |
Ending Balance | 104,714 | 104,714 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Abstract] | ||||
Cost of Products Sold | 255,716 | 256,935 | 497,554 | 501,438 |
Interest Expense | (950) | (2,156) | (2,170) | (4,206) |
Tax | (10,650) | (11,155) | (3,200) | (12,823) |
Accumulated Translation Adjustment [Member]
|
||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 117,659 | 117,465 | ||
OCI before reclassifications | 158 | 352 | ||
Amount reclassified from accumulated OCI | 0 | 0 | ||
Net current-period OCI | 158 | 352 | ||
Ending Balance | 117,817 | 117,817 | ||
Accumulated Long-Term Notes Adjustment [Member]
|
||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 1,153 | 2,845 | ||
OCI before reclassifications | (7,896) | (9,588) | ||
Amount reclassified from accumulated OCI | 0 | 0 | ||
Net current-period OCI | (7,896) | (9,588) | ||
Ending Balance | (6,743) | (6,743) | ||
Accumulated Defined Benefit Plans Adjustment [Member]
|
||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | (6,649) | (6,785) | ||
OCI before reclassifications | 362 | 485 | ||
Amount reclassified from accumulated OCI | (132) | (119) | ||
Net current-period OCI | 230 | 366 | ||
Ending Balance | (6,419) | (6,419) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Abstract] | ||||
Service and interest costs | (138) | (123) | ||
Tax | 6 | 4 | ||
Total after tax | (132) | (119) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
|
||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning Balance | 714 | (782) | ||
OCI before reclassifications | (396) | 847 | ||
Amount reclassified from accumulated OCI | (259) | (6) | ||
Net current-period OCI | (655) | 841 | ||
Ending Balance | 59 | 59 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
|
||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Abstract] | ||||
Total before tax | (278) | 9 | ||
Tax | 19 | (15) | ||
Total after tax | (259) | (6) | ||
Foreign Exchange Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
|
||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Abstract] | ||||
Net Sales | (306) | (442) | ||
Commodity Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
|
||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Abstract] | ||||
Cost of Products Sold | (31) | 325 | ||
Interest Rate Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
|
||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Abstract] | ||||
Interest Expense | $ 59 | $ 126 |
Warrany Costs Warranty Schedule (Details) (USD $)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accrued Liabilities, Current [Abstract] | |
Loss Contingency Accrual, at Carrying Value | $ 3,800,000 |
Balance as of January 1 | 21,451,000 |
Warranties provided during the period | 5,569,000 |
Settlements made during the period | (6,263,000) |
Changes in liability for pre-existing warranties during the period, including expirations | 4,303,000 |
Balance as of June 30 | $ 25,060,000 |
Charges Related To Restructuring Activities (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | A progression by reporting segment of the accruals recorded as a result of the restructuring is as follows (in thousands):
|
Fair Value of Financial Instruments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Values Pursuant to ASC 820, the inputs used to derive the fair value of assets and liabilities are analyzed and assigned a level I, II or III priority, with level I being the highest and level III being the lowest in the hierarchy. Level I inputs are quoted prices in active markets for identical assets or liabilities. Level II inputs are quoted prices for similar assets or liabilities in active markets: quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level III inputs are based on valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands).
Forward Contracts: The company operates internationally and as a result is exposed to foreign currency fluctuations. Specifically, the exposure includes intercompany and third party sales or payments as well as intercompany loans. In an attempt to reduce this exposure, foreign currency forward contracts are utilized and accounted for as hedging instruments. The forward contracts are used to hedge the following currencies: AUD, CAD, CHF, CNY, DKK, EUR, GBP, MXP, NOK, NZD, SEK and USD. The company does not use derivative financial instruments for speculative purposes. Fair values for the company’s foreign currency forward exchange contracts are based on quoted market prices for contracts with similar maturities. The carrying values and fair values of the company’s financial instruments are as follows (in thousands):
The company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions: Cash, cash equivalents: The carrying value reported in the balance sheet for cash, cash equivalents equals its fair value. Other investments: The company has made other investments in limited partnerships and non-marketable equity securities, which are accounted for using the cost method, adjusted for any estimated declines in value. These investments were acquired in private placements and there are no quoted market prices or stated rates of return and the company does not have the ability to easily sell these investments. Installment receivables: The carrying value reported in the balance sheet for installment receivables approximates its fair value. The interest rates associated with these receivables have not varied significantly since inception. Management believes that after consideration of the credit risk, the net book value of the installment receivables approximates market value. Long-term debt: Fair values for the company’s convertible debt and revolving credit facility are based upon the company’s estimate of the market for similar borrowing arrangements. Forward contracts and interest rate swaps: Fair values for the company’s forward contracts are based on quoted market prices, while the fair values of the interest rate swaps are based on model-derived calculations using inputs that are observable in active markets. |
Consolidated Statement Of Cash Flows (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Operating Activities | ||
Net Earnings (loss) | $ 22,720,000 | $ 6,256,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (59,402,000) | 0 |
Depreciation and amortization | 18,929,000 | 19,448,000 |
Provision for losses on trade and installment receivables | 1,603,000 | 2,828,000 |
(Benefit) provision for deferred income taxes | (163,000) | 68,000 |
Provision for other deferred liabilities | 126,000 | 557,000 |
Provision for stock-based compensation | 2,574,000 | 2,990,000 |
Loss on disposals of property and equipment | 135,000 | 72,000 |
Loss on debt extinguishment including debt finance charges and associated fees | 0 | 312,000 |
Amortization of convertible debt discount | 307,000 | 285,000 |
Changes in operating assets and liabilities: | ||
Trade receivables | (8,429,000) | (13,089,000) |
Installment sales contracts, net | (134,000) | 3,508,000 |
Inventories | 3,405,000 | (29,571,000) |
Other current assets | 4,009,000 | 304,000 |
Accounts payable | (18,852,000) | 9,142,000 |
Accrued expenses | 3,004,000 | (4,831,000) |
Other long-term liabilities | 204,000 | 9,469,000 |
Net Cash Provided (Used) by Operating Activities | (29,964,000) | 7,748,000 |
Investing Activities | ||
Purchases of property and equipment | (7,666,000) | (9,794,000) |
Proceeds from sale of property and equipment | 9,000 | 49,000 |
Proceeds from Divestiture of Business, net | 144,681,000 | 0 |
(Increase) Decrease in other long-term assets | (422,000) | (150,000) |
Other | (30,000) | (265,000) |
Net Cash Used for Investing Activities | 136,572,000 | (10,160,000) |
Financing Activities | ||
Proceeds from revolving lines of credit and long-term borrowings | 196,399,000 | 170,808,000 |
Payments on revolving lines of credit and long-term borrowings | (318,963,000) | (176,334,000) |
Payment of Financing Costs | 0 | 1,000 |
Payment of dividends | (791,000) | (787,000) |
Net Cash Provided (Used) by Financing Activities | (123,355,000) | (6,314,000) |
Effect of exchange rate changes on cash | (597,000) | (703,000) |
Increase (decrease) in cash and cash equivalents | (17,344,000) | (9,429,000) |
Cash and cash equivalents at beginning of year | 38,791,000 | 34,924,000 |
Cash and cash equivalents at end of year | $ 21,447,000 | $ 25,495,000 |
Discontinued Operations (Notes)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinuted Operations | Discontinued Operations On December 21, 2012, as part of the company's globalization strategy, and to allow it to focus on its core equipment product lines, the company's board of directors approved of the company entering into an agreement to sell Invacare Supply Group (ISG) and accordingly the company determined on that date that the "held for sale" criteria of ASC 360-10-45-9 were met. Accordingly, the assets and liabilities of ISG (long-lived asset disposal group) are shown at their carrying amounts, which are lower than the fair values less cost to sale as of December 31, 2012. On January 18, 2013, the company completed the sale of the ISG medical supplies business for a purchase price of approximately $150,800,000 in cash, which is subject to final post-closing adjustments. ISG had been operated on a standalone basis and reported as a reportable segment of the company. The company recorded a gain of approximately $59,402,000 pre-tax in the first quarter of 2013 which represents the excess of the net sales price over the book value of the assets and liabilities of ISG. The sale of this business is dilutive to the Company's results. The Company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the first quarter of 2013. The company recorded expenses related to the sale of approximately $5,350,000 of which $3,225,000 were paid out as of June 30, 2013. The gain recorded by the company reflects the company's estimated final purchase adjustments. The company recorded an intra-period tax allocation expense to discontinued operations in the first quarter based on the company's estimate of projected domestic loss related to continuing operations for 2013. A change in estimate of the continuing domestic loss for the year occurred in the second quarter principally related to the receipt of foreign dividends. Accordingly, an adjustment was required in the second quarter related to intra-period tax expense allocation to discontinued operations which reduced expense resulting in a benefit of $10,580,000 recorded in the quarter ended June 30, 2013. The assets and liabilities of ISG that were sold are shown as held for sale in the company's Consolidated Balance Sheets and are comprised of the following (in thousands):
The net sales of the discontinued operation were $0 and $18,498,000 for the three and six months ended June 30, 2013 and $82,205,000 and $160,670,000 for the three and six months ended June 30, 2012, respectively. Earnings before income taxes for the discontinued operation were $0 and $402,000 for the three and six months ended June 30, 2013 and $3,699,000 and $6,809,000 for the three and six months ended June 30, 2012, respectively. The company will continue to sell product to the acquirer of ISG and expects to provide certain transitional services to the acquirer over a period of less than one year from the date of sale. The net cash flows expected to be paid and received related to such product sales and transitional services are not expected to be significant. The company has classified ISG as a discontinued operation for all periods presented. |
Other Current Assets (Notes)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets Disclosure [Text Block] | Other Current Assets Other current assets consist of the following (in thousands):
|
Charges Related To Restructuring Activities (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2013
|
Mar. 31, 2013
|
Jun. 30, 2013
|
Dec. 31, 2012
|
Dec. 31, 2011
|
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | $ 5,493,000 | $ 6,993,000 | $ 6,993,000 | $ 4,979,000 | $ 0 |
Restructuring Charges including Inventory Markdowns | 2,592,000 | 2,522,000 | 5,114,000 | 11,395,000 | 10,534,000 |
Restructuring Reserve, Settled with Cash | (2,183,000) | (4,022,000) | (6,205,000) | (9,381,000) | (5,555,000) |
Restructuring Reserve, Ending Balance | 5,902,000 | 5,493,000 | 5,902,000 | 6,993,000 | 4,979,000 |
Severance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 4,546,000 | 5,211,000 | 5,211,000 | 4,905,000 | 0 |
Restructuring Charges including Inventory Markdowns | 2,506,000 | 2,436,000 | 6,775,000 | 8,352,000 | |
Restructuring Reserve, Settled with Cash | (2,132,000) | (3,101,000) | (6,469,000) | (3,447,000) | |
Restructuring Reserve, Ending Balance | 4,920,000 | 4,546,000 | 4,920,000 | 5,211,000 | 4,905,000 |
Product Line Discontinuance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 151,000 | 151,000 | 0 | 0 |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 491,000 | 277,000 | |
Restructuring Reserve, Settled with Cash | 0 | (151,000) | (340,000) | (277,000) | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 151,000 | 0 |
Contract Termination [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 945,000 | 1,625,000 | 1,625,000 | 74,000 | 0 |
Restructuring Charges including Inventory Markdowns | 86,000 | 86,000 | 1,725,000 | 1,788,000 | |
Restructuring Reserve, Settled with Cash | (49,000) | (766,000) | (174,000) | (1,714,000) | |
Restructuring Reserve, Ending Balance | 982,000 | 945,000 | 982,000 | 1,625,000 | 74,000 |
Other [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 2,000 | 6,000 | 6,000 | 0 | 0 |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 2,404,000 | 117,000 | |
Restructuring Reserve, Settled with Cash | (2,000) | (4,000) | (2,398,000) | (117,000) | |
Restructuring Reserve, Ending Balance | 0 | 2,000 | 0 | 6,000 | 0 |
NA/HME [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 3,421,000 | 3,747,000 | 3,747,000 | 3,092,000 | |
Restructuring Charges including Inventory Markdowns | 1,948,000 | 1,679,000 | 4,247,000 | 4,759,000 | |
Restructuring Reserve, Settled with Cash | (1,795,000) | (2,005,000) | (3,592,000) | (1,667,000) | |
Restructuring Reserve, Ending Balance | 3,574,000 | 3,421,000 | 3,574,000 | 3,747,000 | 3,092,000 |
NA/HME [Member] | Severance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 3,421,000 | 3,747,000 | 3,747,000 | 3,092,000 | |
Restructuring Charges including Inventory Markdowns | 1,948,000 | 1,679,000 | 4,242,000 | 4,755,000 | |
Restructuring Reserve, Settled with Cash | (1,795,000) | (2,005,000) | (3,587,000) | (1,663,000) | |
Restructuring Reserve, Ending Balance | 3,574,000 | 3,421,000 | 3,574,000 | 3,747,000 | 3,092,000 |
NA/HME [Member] | Product Line Discontinuance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 0 |
NA/HME [Member] | Contract Termination [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 5,000 | 0 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | (5,000) | 0 | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 0 |
NA/HME [Member] | Other [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 0 | 4,000 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | 0 | (4,000) | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 0 |
IPG [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 172,000 | 0 | 0 | 71,000 | |
Restructuring Charges including Inventory Markdowns | 13,000 | 189,000 | 35,000 | 123,000 | |
Restructuring Reserve, Settled with Cash | (26,000) | (17,000) | (106,000) | (52,000) | |
Restructuring Reserve, Ending Balance | 159,000 | 172,000 | 159,000 | 0 | 71,000 |
IPG [Member] | Severance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 172,000 | 0 | 0 | 71,000 | |
Restructuring Charges including Inventory Markdowns | 13,000 | 189,000 | 35,000 | 123,000 | |
Restructuring Reserve, Settled with Cash | (26,000) | (17,000) | (106,000) | (52,000) | |
Restructuring Reserve, Ending Balance | 159,000 | 172,000 | 159,000 | 0 | 71,000 |
IPG [Member] | Product Line Discontinuance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 0 |
IPG [Member] | Contract Termination [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 0 |
IPG [Member] | Other [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | 0 | 0 | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 0 |
Europe [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 249,000 | 595,000 | 595,000 | 1,816,000 | |
Restructuring Charges including Inventory Markdowns | 65,000 | 115,000 | 2,093,000 | 5,466,000 | |
Restructuring Reserve, Settled with Cash | (182,000) | (461,000) | (3,314,000) | (3,650,000) | |
Restructuring Reserve, Ending Balance | 132,000 | 249,000 | 132,000 | 595,000 | 1,816,000 |
Europe [Member] | Severance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 249,000 | 595,000 | 595,000 | 1,742,000 | |
Restructuring Charges including Inventory Markdowns | 65,000 | 115,000 | 817,000 | 3,288,000 | |
Restructuring Reserve, Settled with Cash | (182,000) | (461,000) | (1,964,000) | (1,546,000) | |
Restructuring Reserve, Ending Balance | 132,000 | 249,000 | 132,000 | 595,000 | 1,742,000 |
Europe [Member] | Product Line Discontinuance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 0 | 277,000 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | 0 | (277,000) | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 0 |
Europe [Member] | Contract Termination [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 74,000 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 53,000 | 1,788,000 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | (127,000) | (1,714,000) | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 74,000 |
Europe [Member] | Other [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 0 | 0 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 1,223,000 | 113,000 | |
Restructuring Reserve, Settled with Cash | 0 | 0 | (1,223,000) | (113,000) | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 0 | 0 |
Asia/Pacific [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 1,651,000 | 2,651,000 | 2,651,000 | 0 | |
Restructuring Charges including Inventory Markdowns | 566,000 | 539,000 | 5,020,000 | 186,000 | |
Restructuring Reserve, Settled with Cash | (180,000) | (1,539,000) | (2,369,000) | (186,000) | |
Restructuring Reserve, Ending Balance | 2,037,000 | 1,651,000 | 2,037,000 | 2,651,000 | 0 |
Asia/Pacific [Member] | Severance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 704,000 | 869,000 | 869,000 | 0 | |
Restructuring Charges including Inventory Markdowns | 480,000 | 453,000 | 1,681,000 | 186,000 | |
Restructuring Reserve, Settled with Cash | (129,000) | (618,000) | (812,000) | (186,000) | |
Restructuring Reserve, Ending Balance | 1,055,000 | 704,000 | 1,055,000 | 869,000 | 0 |
Asia/Pacific [Member] | Product Line Discontinuance [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 0 | 151,000 | 151,000 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 491,000 | 0 | |
Restructuring Reserve, Settled with Cash | 0 | (151,000) | (340,000) | 0 | |
Restructuring Reserve, Ending Balance | 0 | 0 | 0 | 151,000 | 0 |
Asia/Pacific [Member] | Contract Termination [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 945,000 | 1,625,000 | 1,625,000 | 0 | |
Restructuring Charges including Inventory Markdowns | 86,000 | 86,000 | 1,667,000 | 0 | |
Restructuring Reserve, Settled with Cash | (49,000) | (766,000) | (42,000) | 0 | |
Restructuring Reserve, Ending Balance | 982,000 | 945,000 | 982,000 | 1,625,000 | 0 |
Asia/Pacific [Member] | Other [Member]
|
|||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Beginning Balance | 2,000 | 6,000 | 6,000 | 0 | |
Restructuring Charges including Inventory Markdowns | 0 | 0 | 1,181,000 | 0 | |
Restructuring Reserve, Settled with Cash | (2,000) | (4,000) | (1,175,000) | 0 | |
Restructuring Reserve, Ending Balance | $ 0 | $ 2,000 | $ 0 | $ 6,000 | $ 0 |
Receivables
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. Substantially all of the company’s receivables are due from health care, medical equipment providers and long term care facilities located throughout the United States, Australia, Canada, New Zealand and Europe. A significant portion of products sold to providers, both foreign and domestic, is ultimately funded through government reimbursement programs such as Medicare and Medicaid in the U.S. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability. The estimated allowance for uncollectible amounts ($22,158,000 at June 30, 2013 and $22,213,000 at December 31, 2012) is based primarily on management’s evaluation of the financial condition of specific customers. In addition, as a result of the company's third party financing arrangement with De Lage Landen, Inc. ("DLL"), a third party financing company which the company has worked with since 2000, management monitors the collection status of these contracts in accordance with the company’s limited recourse obligations and provides amounts necessary for estimated losses in the allowance for doubtful accounts and establishing reserves for specific customers as needed. The company charges off uncollectible trade accounts receivable after such receivables are moved to collection status and legal remedies are exhausted. See Concentration of Credit Risk in the Notes to the Consolidated Financial Statements for a description of the financing arrangement. Long-term installment receivables are included in “Other Assets” on the consolidated balance sheet. The company’s U.S. customers electing to finance their purchases can do so using DLL. In addition, the company often provides financing directly for its Canadian customers for which DLL is not an option. The installment receivables recorded on the books of the company represent a single portfolio segment of finance receivables to the independent provider channel. The portfolio segment is comprised of two classes of receivables distinguished by geography and credit quality. The U.S. installment receivables are the first class and represent installment receivables re-purchased from DLL because the customers were in default. Default with DLL is defined as a customer being delinquent by 3 payments. The Canadian installment receivables represent the second class of installment receivables which were originally financed by the company because third party financing was not available to the HME providers. The Canadian installment receivables are typically financed for 12 months and historically have had a very low risk of default. The estimated allowance for uncollectible amounts and evaluation for impairment for both classes of installment receivables is based on the company’s quarterly review of the financial condition of each individual customer with the allowance for doubtful accounts adjusted accordingly. Installments are individually and not collectively reviewed for impairment. The company assesses the bad debt reserve levels based upon the status of the customer’s adherence to a legally negotiated payment schedule and the company’s ability to enforce judgments, liens, etc. For purposes of granting or extending credit, the company utilizes a scoring model to generate a composite score that considers each customer’s consumer credit score and/or D&B credit rating, payment history, security collateral and time in business. Additional analysis is performed for customers desiring credit greater than $250,000 which includes a detailed review of the customer’s financials as well as consideration of other factors such as exposure to changing reimbursement laws. Interest income is recognized on installment receivables based on the terms of the installment agreements. Installment accounts are monitored and if a customer defaults on payments and is moved to collection, interest income is no longer recognized. Subsequent payments received once an account is put on non-accrual status are generally first applied to the principal balance and then to the interest. Accruing of interest on collection accounts would only be restarted if the account became current again. All installment accounts are accounted for using the same methodology regardless of the duration of the installment agreements. When an account is placed in collection status, the company goes through a legal process of adjudication which typically approximates 18 months. Any write-offs are made after the legal process has been completed. The company has not made any changes to either its accounting policies or methodology to estimation allowances for doubtful accounts in the last twelve months. Installment receivables consist of the following (in thousands):
Installment receivables purchased from DLL during the six months ended June 30, 2013 increased the gross installment receivables balance by $1,265,000. No sales of installment receivables were made by the company during the quarter. The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands):
Installment receivables by class as of June 30, 2013 consist of the following (in thousands):
Installment receivables by class as of December 31, 2012 consist of the following (in thousands):
Installment receivables with a related allowance recorded as noted in the table above represent those installment receivables on a non-accrual basis in accordance with ASU 2010-20. As of June 30, 2013, the company had no U.S. installment receivables past due of 90 days or more for which the company is still accruing interest. Individually, all U.S. installment receivables are assigned a specific allowance for doubtful accounts based on management’s review when the company does not expect to receive both the contractual principal and interest payments as specified in the loan agreement. However, while the full balance may be deemed to be impaired, the company has historically collected a large percentage of the principal of its U.S. installment receivables. The company had an immaterial amount of Canadian installment receivables which were past due of 90 days or more as of June 30, 2013 and December 31, 2012 for which the company is still accruing interest. The aging of the company’s installment receivables was as follows (in thousands):
|
Shareholders' Equity Transactions (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes information about stock option activity for the six months ended June 30, 2013:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options Outstanding [Table Text Block] | The following table summarizes information about stock options outstanding at June 30, 2013:
|
Subsequent Events (Notes)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On August 7, 2013, the company sold Champion Manufacturing Inc. (Champion), its domestic medical recliner business for dialysis clinics, to Champion Equity Holdings, LLC for approximately $45,000,000 in cash, subject to certain post-closing adjustments. This divestiture is consistent with the company's focus on its globalization strategy to harmonize core global product lines and reduce complexity within its business. Subject to certain post-closing adjustments and any restructuring charges, the company preliminarily estimates that it will realize net proceeds from the sale of the Champion business of approximately $43,000,000, net of tax and expenses. The company will use the net proceeds to reduce debt outstanding under its revolving credit facility. |
Discontinued Operations (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The assets and liabilities of ISG that were sold are shown as held for sale in the company's Consolidated Balance Sheets and are comprised of the following (in thousands):
|
Shareholders' Equity Transactions Stock Options Outstanding by Exercise Price (Details) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Dec. 31, 2012
|
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years | |
Range of Exercise Price, Lower Limit | $ 12.42 | |
Range of Exercise Price, Upper Limit | $ 47.80 | |
Number Outstanding at end of period | 5,069,793 | |
Weighted Average Remaining Contractual Life | 5 years 10 months 13 days | |
Weighted Average Exercise Price | $ 24.70 | $ 26.21 |
Number Exercisable At end of period | 2,902,760 | |
Weighted Average Exercise Price | $ 30.08 | |
Range of Exercise Price 12.42 to 15.00 [Member]
|
||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Lower Limit | $ 12.42 | |
Range of Exercise Price, Upper Limit | $ 15.00 | |
Number Outstanding at end of period | 1,404,086 | |
Weighted Average Remaining Contractual Life | 9 years 4 months 13 days | |
Weighted Average Exercise Price | $ 13.95 | |
Number Exercisable At end of period | 1,986 | |
Weighted Average Exercise Price | $ 13.37 | |
Range of Exercise Price 15.01 to 25.00 [Member]
|
||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Lower Limit | $ 15.01 | |
Range of Exercise Price, Upper Limit | $ 25.00 | |
Number Outstanding at end of period | 1,646,829 | |
Weighted Average Remaining Contractual Life | 5 years 10 months 13 days | |
Weighted Average Exercise Price | $ 22.52 | |
Number Exercisable At end of period | 1,126,899 | |
Weighted Average Exercise Price | $ 22.16 | |
Range of Exercise Price 25.01 to 35.00 [Member]
|
||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Lower Limit | $ 25.01 | |
Range of Exercise Price, Upper Limit | $ 35.00 | |
Number Outstanding at end of period | 964,437 | |
Weighted Average Remaining Contractual Life | 6 years 0 months 13 days | |
Weighted Average Exercise Price | $ 25.78 | |
Number Exercisable At end of period | 719,435 | |
Weighted Average Exercise Price | $ 25.91 | |
Range of Exercise Price 35.01 to 47.80 [Member]
|
||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Price, Lower Limit | $ 35.01 | |
Range of Exercise Price, Upper Limit | $ 47.80 | |
Number Outstanding at end of period | 1,054,441 | |
Weighted Average Remaining Contractual Life | 1 year 1 month 13 days | |
Weighted Average Exercise Price | $ 41.42 | |
Number Exercisable At end of period | 1,054,440 | |
Weighted Average Exercise Price | $ 41.43 |
Other Intangibles (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Definite and Indefinite Lived Intangible Assets [Table Text Block] | The company's intangibles consist of the following (in thousands):
|
Shareholders' Equity Transactions Options Activity (Details) (USD $)
|
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2013
|
May 16, 2013
|
||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Options outstanding at beginning of period | 4,664,634 | ||||
Granted | 756,700 | ||||
Excercised | 0 | ||||
Canceled | (351,541) | ||||
Options outstanding at end of period | 5,069,793 | ||||
Options outstanding at beginning of period Weighted Average Exercise Price | $ 26.21 | ||||
Granted Weighted Average Exercise Price | $ 14.47 | ||||
Excercised Weighted Average Exercise Price | $ 0 | ||||
Canceled Weighted Average Exercise Price | $ 22.81 | ||||
Options outstanding at end of period Weighted Average Exercise Price | $ 24.70 | ||||
Options exercise price range at end of period, Lower Limit | $ 12.42 | ||||
Options exercise price range at end of period, Upper Limit | $ 47.80 | ||||
Options exercisable at end of period | 2,902,760 | ||||
Options available for grant at end of period | 4,460,337 | ||||
Stock Options [Member]
|
|||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Options available for grant at end of period | 4,459,337 | [1] | |||
Restricted Stock [Member]
|
|||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share Based Compensation Arrangement By Share Based Payment Award Net Restricted Stock Award Activity | 793,351 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 114,700 | ||||
|
Receivables Aging of Installment Receivables (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 1,377 | $ 1,467 |
0-30 Days Past Due | 14 | 43 |
31-60 Days Past Due | 2 | 2 |
61-90 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due | 4,633 | 4,976 |
Total Installment Receivables Past Due | 6,026 | 6,488 |
U.S.
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 0 | 0 |
0-30 Days Past Due | 0 | 0 |
31-60 Days Past Due | 0 | 0 |
61-90 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due | 4,422 | 4,508 |
Total Installment Receivables Past Due | 4,422 | 4,508 |
CANADA
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 1,377 | 1,467 |
0-30 Days Past Due | 14 | 43 |
31-60 Days Past Due | 2 | 2 |
61-90 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due | 211 | 468 |
Total Installment Receivables Past Due | $ 1,604 | $ 1,980 |