|
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|
|
[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)
|
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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 September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net sales
|
$
|
341,176
|
|
|
$
|
361,518
|
|
|
$
|
1,017,373
|
|
|
$
|
1,077,767
|
|
Cost of products sold
|
244,352
|
|
|
252,106
|
|
|
733,408
|
|
|
746,369
|
|
||||
Gross Profit
|
96,824
|
|
|
109,412
|
|
|
283,965
|
|
|
331,398
|
|
||||
Selling, general and administrative expenses
|
98,719
|
|
|
103,281
|
|
|
306,042
|
|
|
306,755
|
|
||||
Charges related to restructuring activities
|
1,884
|
|
|
1,175
|
|
|
6,998
|
|
|
3,742
|
|
||||
Loss on debt extinguishment including debt finance charges and associated fees
|
—
|
|
|
—
|
|
|
—
|
|
|
312
|
|
||||
Asset write-downs related to intangible assets
|
167
|
|
|
—
|
|
|
167
|
|
|
—
|
|
||||
Interest expense
|
745
|
|
|
2,114
|
|
|
2,677
|
|
|
6,339
|
|
||||
Interest income
|
(58
|
)
|
|
(166
|
)
|
|
(239
|
)
|
|
(610
|
)
|
||||
Earnings (loss) from Continuing Operations Before Income Taxes
|
(4,633
|
)
|
|
3,008
|
|
|
(31,680
|
)
|
|
14,860
|
|
||||
Income tax provision
|
750
|
|
|
2,445
|
|
|
3,900
|
|
|
14,486
|
|
||||
Net Earnings (loss) from Continuing Operations
|
(5,383
|
)
|
|
563
|
|
|
$
|
(35,580
|
)
|
|
$
|
374
|
|
||
Net Earnings from Discontinued Operations (net of tax of $227; $2,629; $237; and $5,264)
|
307
|
|
|
2,301
|
|
|
3,321
|
|
|
8,746
|
|
||||
Gain on Sale of Discontinued Operations (net of tax of $1,583 and $11,083)
|
21,178
|
|
|
—
|
|
|
71,080
|
|
|
—
|
|
||||
Total Net Earnings from Discontinued Operations
|
21,485
|
|
|
2,301
|
|
|
74,401
|
|
|
8,746
|
|
||||
Net Earnings
|
$
|
16,102
|
|
|
$
|
2,864
|
|
|
38,821
|
|
|
9,120
|
|
||
Dividends Declared per Common Share
|
$
|
0.0125
|
|
|
$
|
0.0125
|
|
|
$
|
0.0375
|
|
|
$
|
0.0375
|
|
Net Earnings (Loss) per Share—Basic
|
|
|
|
|
|
|
|
||||||||
Net Earnings (loss) from Continuing Operations
|
$
|
(0.17
|
)
|
|
$
|
0.02
|
|
|
$
|
(1.12
|
)
|
|
$
|
0.01
|
|
Net Earnings from Discontinued Operations
|
$
|
0.67
|
|
|
$
|
0.07
|
|
|
$
|
2.33
|
|
|
$
|
0.27
|
|
Net Earnings per Share—Basic
|
$
|
0.50
|
|
|
$
|
0.09
|
|
|
$
|
1.21
|
|
|
$
|
0.28
|
|
Weighted Average Shares Outstanding—Basic
|
31,902
|
|
|
31,877
|
|
|
31,902
|
|
|
31,838
|
|
||||
Net Earnings (Loss) per Share—Assuming Dilution
|
|
|
|
|
|
|
|
||||||||
Net Earnings (loss) from Continuing Operations
|
$
|
(0.17
|
)
|
|
$
|
0.02
|
|
|
$
|
(1.12
|
)
|
|
$
|
0.01
|
|
Net Earnings from Discontinued Operations
|
$
|
0.67
|
|
|
$
|
0.07
|
|
|
$
|
2.32
|
|
|
$
|
0.27
|
|
Net Earnings per Share—Assuming Dilution
|
$
|
0.50
|
|
|
$
|
0.09
|
|
|
$
|
1.20
|
|
|
$
|
0.28
|
|
Weighted Average Shares Outstanding—Assuming Dilution
|
32,066
|
|
|
31,901
|
|
|
32,009
|
|
|
31,847
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Earnings
|
$
|
16,102
|
|
|
$
|
2,864
|
|
|
$
|
38,821
|
|
|
$
|
9,120
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
9,790
|
|
|
15,764
|
|
|
554
|
|
|
(24,288
|
)
|
||||
Defined Benefit Plans:
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service costs and unrecognized gains
|
359
|
|
|
38
|
|
|
895
|
|
|
136
|
|
||||
Amounts arising during the year, primarily due to the addition of new participants
|
(154
|
)
|
|
—
|
|
|
(320
|
)
|
|
(168
|
)
|
||||
Deferred tax adjustment resulting from defined benefit plan activity
|
(71
|
)
|
|
(13
|
)
|
|
(199
|
)
|
|
13
|
|
||||
Valuation reserve associated with defined benefit plan activity
|
69
|
|
|
13
|
|
|
193
|
|
|
(17
|
)
|
||||
Current period unrealized gain on cash flow hedges
|
(104
|
)
|
|
(1,322
|
)
|
|
779
|
|
|
(276
|
)
|
||||
Deferred tax loss related to unrealized gain on cash flow hedges
|
(15
|
)
|
|
38
|
|
|
(57
|
)
|
|
(73
|
)
|
||||
Other Comprehensive Income (Loss)
|
9,874
|
|
|
14,518
|
|
|
1,845
|
|
|
(24,673
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive Income (Loss)
|
$
|
25,976
|
|
|
$
|
17,382
|
|
|
$
|
40,666
|
|
|
$
|
(15,553
|
)
|
|
September 30,
2013 |
|
December 31,
2012 |
||||
|
(In thousands)
|
||||||
Assets
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
32,625
|
|
|
$
|
38,791
|
|
Trade receivables, net
|
191,464
|
|
|
198,791
|
|
||
Installment receivables, net
|
1,560
|
|
|
2,188
|
|
||
Inventories, net
|
167,368
|
|
|
183,246
|
|
||
Other current assets
|
33,830
|
|
|
41,776
|
|
||
Assets held for sale - current
|
—
|
|
|
103,157
|
|
||
Total Current Assets
|
426,847
|
|
|
567,949
|
|
||
Other Assets
|
40,327
|
|
|
42,262
|
|
||
Other Intangibles
|
65,105
|
|
|
71,652
|
|
||
Property and Equipment, net
|
108,391
|
|
|
118,231
|
|
||
Goodwill
|
450,727
|
|
|
462,200
|
|
||
Total Assets
|
$
|
1,091,397
|
|
|
$
|
1,262,294
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
117,684
|
|
|
$
|
133,048
|
|
Accrued expenses
|
130,479
|
|
|
135,189
|
|
||
Accrued income taxes
|
7,201
|
|
|
2,713
|
|
||
Short-term debt and current maturities of long-term obligations
|
1,294
|
|
|
5,427
|
|
||
Liabilities held for sale - current
|
—
|
|
|
23,358
|
|
||
Total Current Liabilities
|
256,658
|
|
|
299,735
|
|
||
Long-Term Debt
|
54,775
|
|
|
229,375
|
|
||
Other Long-Term Obligations
|
114,773
|
|
|
112,195
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Preferred Shares (Authorized 300 shares; none outstanding)
|
—
|
|
|
—
|
|
||
Common Shares (Authorized 100,000 shares; 34,053 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
|
232,881
|
|
|
228,187
|
|
||
Retained earnings
|
402,181
|
|
|
364,546
|
|
||
Accumulated other comprehensive earnings
|
114,588
|
|
|
112,743
|
|
||
Treasury shares (3,135 and 3,135 shares in 2013 and 2012, respectively)
|
(93,262
|
)
|
|
(93,262
|
)
|
||
Total Shareholders’ Equity
|
665,191
|
|
|
620,989
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
1,091,397
|
|
|
$
|
1,262,294
|
|
|
Nine Months Ended September 30,
|
|||||||
|
2013
|
|
2012
|
|
||||
Operating Activities
|
(In thousands)
|
|||||||
Net earnings
|
$
|
38,821
|
|
|
$
|
9,120
|
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
||||
Gain on sale of businesses (pre-tax)
|
(82,163
|
)
|
|
—
|
|
|
||
Depreciation and amortization
|
28,236
|
|
|
29,065
|
|
|
||
Provision for losses on trade and installment receivables
|
3,160
|
|
|
4,252
|
|
|
||
Provision for deferred income taxes
|
2,698
|
|
|
628
|
|
|
||
Provision for other deferred liabilities
|
140
|
|
|
821
|
|
|
||
Provision for stock-based compensation
|
4,721
|
|
|
5,198
|
|
|
||
Loss on disposals of property and equipment
|
565
|
|
|
108
|
|
|
||
Loss on debt extinguishment including debt finance charges and associated fees
|
—
|
|
|
312
|
|
|
||
Asset write-downs to intangible assets
|
167
|
|
|
—
|
|
|
||
Amortization of convertible debt discount
|
468
|
|
|
430
|
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Trade receivables
|
3,049
|
|
|
(8,149
|
)
|
|
||
Installment sales contracts, net
|
(633
|
)
|
|
4,353
|
|
|
||
Inventories
|
10,599
|
|
|
(30,936
|
)
|
|
||
Other current assets
|
7,539
|
|
|
(90
|
)
|
|
||
Accounts payable
|
(16,848
|
)
|
|
(329
|
)
|
|
||
Accrued expenses
|
(390
|
)
|
|
251
|
|
|
||
Other long-term liabilities
|
(1,374
|
)
|
|
11,788
|
|
|
||
Net Cash Provided (Used) by Operating Activities
|
(1,245
|
)
|
|
26,822
|
|
|
||
Investing Activities
|
|
|
|
|
||||
Purchases of property and equipment
|
(11,086
|
)
|
|
(14,775
|
)
|
|
||
Proceeds from sale of property and equipment
|
856
|
|
|
97
|
|
|
||
Proceeds from sale of business
|
187,552
|
|
|
—
|
|
|
||
Change in other long-term assets
|
949
|
|
|
409
|
|
|
||
Other
|
(147
|
)
|
|
(219
|
)
|
|
||
Net Cash Provided (Used) by Investing Activities
|
178,124
|
|
|
(14,488
|
)
|
|
||
Financing Activities
|
|
|
|
|
||||
Proceeds from revolving lines of credit and long-term borrowings
|
250,124
|
|
|
255,703
|
|
|
||
Payments on revolving lines of credit and long-term borrowings
|
(432,185
|
)
|
|
(266,721
|
)
|
|
||
Payment of financing costs
|
—
|
|
|
(1
|
)
|
|
||
Payment of dividends
|
(1,187
|
)
|
|
(1,183
|
)
|
|
||
Net Cash Used by Financing Activities
|
(183,248
|
)
|
|
(12,202
|
)
|
|
||
Effect of exchange rate changes on cash
|
203
|
|
|
226
|
|
|
||
Decrease in cash and cash equivalents
|
(6,166
|
)
|
|
358
|
|
|
||
Cash and cash equivalents at beginning of year
|
38,791
|
|
|
34,924
|
|
|
||
Cash and cash equivalents at end of period
|
$
|
32,625
|
|
|
$
|
35,282
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Stock-based compensation expense recognized as part of selling, general and administrative expense
|
$
|
2,147
|
|
|
$
|
2,208
|
|
|
$
|
4,721
|
|
|
$
|
5,198
|
|
|
|
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
|
|
|
|
August 6,
2013 |
|
December 31,
2012 |
||||
|
|
|
|
|||||
Trade receivables, net
|
|
$
|
3,030
|
|
|
$
|
2,375
|
|
Inventories, net
|
|
1,689
|
|
|
1,617
|
|
||
Other current assets
|
|
92
|
|
|
21
|
|
||
Property and Equipment, net
|
|
309
|
|
|
237
|
|
||
Goodwill
|
|
16,277
|
|
|
16,277
|
|
||
Assets sold
|
|
$
|
21,397
|
|
|
$
|
20,527
|
|
|
|
|
|
|
||||
Accounts payable
|
|
$
|
936
|
|
|
$
|
475
|
|
Accrued expenses
|
|
352
|
|
|
318
|
|
||
Accrued income taxes
|
|
—
|
|
|
200
|
|
||
Liabilities sold
|
|
$
|
1,288
|
|
|
$
|
993
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
|
Current
|
|
Long-
Term
|
|
Total
|
|
Current
|
|
Long-
Term
|
|
Total
|
||||||||||||
Installment receivables
|
$
|
3,554
|
|
|
$
|
2,394
|
|
|
$
|
5,948
|
|
|
$
|
4,982
|
|
|
$
|
1,506
|
|
|
$
|
6,488
|
|
Less: Unearned interest
|
(70
|
)
|
|
—
|
|
|
(70
|
)
|
|
(71
|
)
|
|
—
|
|
|
(71
|
)
|
||||||
|
3,484
|
|
|
2,394
|
|
|
5,878
|
|
|
4,911
|
|
|
1,506
|
|
|
6,417
|
|
||||||
Allowance for doubtful accounts
|
(1,924
|
)
|
|
(1,718
|
)
|
|
(3,642
|
)
|
|
(2,723
|
)
|
|
(1,100
|
)
|
|
(3,823
|
)
|
||||||
|
$
|
1,560
|
|
|
$
|
676
|
|
|
$
|
2,236
|
|
|
$
|
2,188
|
|
|
$
|
406
|
|
|
$
|
2,594
|
|
|
Nine Months Ended June 30, 2013
|
|
Year Ended December 31, 2012
|
||||
Balance as of beginning of period
|
$
|
3,823
|
|
|
$
|
4,273
|
|
Current period provision
|
943
|
|
|
458
|
|
||
Direct write-offs charged against the allowance
|
(1,124
|
)
|
|
(908
|
)
|
||
Balance as of end of period
|
$
|
3,642
|
|
|
$
|
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
|
$
|
4,510
|
|
|
$
|
4,510
|
|
|
$
|
3,477
|
|
|
$
|
—
|
|
Canada
|
|
|
|
|
|
|
|
||||||||
Non-Impaired Installment receivables with no related allowance recorded
|
1,273
|
|
|
1,203
|
|
|
—
|
|
|
76
|
|
||||
Impaired Installment receivables with a related allowance recorded
|
165
|
|
|
165
|
|
|
165
|
|
|
—
|
|
||||
Total Canadian Installment Receivables
|
$
|
1,438
|
|
|
$
|
1,368
|
|
|
$
|
165
|
|
|
$
|
76
|
|
Total
|
|
|
|
|
|
|
|
||||||||
Non-Impaired Installment receivables with no related allowance recorded
|
1,273
|
|
|
1,203
|
|
|
—
|
|
|
76
|
|
||||
Impaired Installment receivables with a related allowance recorded
|
4,675
|
|
|
4,675
|
|
|
3,642
|
|
|
—
|
|
||||
Total Installment Receivables
|
$
|
5,948
|
|
|
$
|
5,878
|
|
|
$
|
3,642
|
|
|
$
|
76
|
|
|
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
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
|
Total
|
|
U.S.
|
|
Canada
|
|
Total
|
|
U.S.
|
|
Canada
|
||||||||||||
Current
|
$
|
1,218
|
|
|
$
|
—
|
|
|
$
|
1,218
|
|
|
$
|
1,467
|
|
|
$
|
—
|
|
|
$
|
1,467
|
|
0-30 Days Past Due
|
9
|
|
|
—
|
|
|
9
|
|
|
43
|
|
|
—
|
|
|
43
|
|
||||||
31-60 Days Past Due
|
6
|
|
|
—
|
|
|
6
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
61-90 Days Past Due
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
90+ Days Past Due
|
4,715
|
|
|
4,510
|
|
|
205
|
|
|
4,976
|
|
|
4,508
|
|
|
468
|
|
||||||
|
$
|
5,948
|
|
|
$
|
4,510
|
|
|
$
|
1,438
|
|
|
$
|
6,488
|
|
|
$
|
4,508
|
|
|
$
|
1,980
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Finished goods
|
$
|
90,422
|
|
|
$
|
94,675
|
|
Raw materials
|
61,642
|
|
|
71,596
|
|
||
Work in process
|
15,304
|
|
|
16,975
|
|
||
|
$
|
167,368
|
|
|
$
|
183,246
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Value added tax receivables
|
$
|
15,004
|
|
|
$
|
18,002
|
|
Recoverable income taxes
|
3,457
|
|
|
6,192
|
|
||
Derivatives (foreign currency forward contracts)
|
1,311
|
|
|
1,062
|
|
||
Prepaid insurance
|
300
|
|
|
2,241
|
|
||
Prepaids and other current assets
|
13,758
|
|
|
14,279
|
|
||
|
$
|
33,830
|
|
|
$
|
41,776
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Cash surrender value of life insurance policies
|
$
|
35,772
|
|
|
$
|
36,375
|
|
Deferred Financing Fees
|
1,356
|
|
|
2,728
|
|
||
Investments
|
1,190
|
|
|
1,171
|
|
||
Long-term installment receivables
|
676
|
|
|
406
|
|
||
Other
|
1,333
|
|
|
1,582
|
|
||
|
$
|
40,327
|
|
|
$
|
42,262
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Machinery and equipment
|
$
|
356,935
|
|
|
$
|
356,512
|
|
Land, buildings and improvements
|
90,234
|
|
|
95,047
|
|
||
Furniture and fixtures
|
12,998
|
|
|
13,397
|
|
||
Leasehold improvements
|
14,886
|
|
|
14,975
|
|
||
|
475,053
|
|
|
479,931
|
|
||
Less allowance for depreciation
|
(366,662
|
)
|
|
(361,700
|
)
|
||
|
$
|
108,391
|
|
|
$
|
118,231
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||
|
Historical
Cost
|
|
Accumulated
Amortization
|
|
Historical
Cost
|
|
Accumulated
Amortization
|
||||||||
Customer Lists
|
$
|
91,344
|
|
|
$
|
61,888
|
|
|
$
|
93,572
|
|
|
$
|
58,447
|
|
Trademarks
|
31,299
|
|
|
—
|
|
|
31,280
|
|
|
—
|
|
||||
License Agreements
|
1,428
|
|
|
1,428
|
|
|
3,212
|
|
|
3,212
|
|
||||
Developed Technology
|
9,712
|
|
|
6,098
|
|
|
9,650
|
|
|
5,588
|
|
||||
Patents
|
6,115
|
|
|
5,472
|
|
|
6,060
|
|
|
5,234
|
|
||||
Other
|
7,481
|
|
|
7,388
|
|
|
7,571
|
|
|
7,212
|
|
||||
|
$
|
147,379
|
|
|
$
|
82,274
|
|
|
$
|
151,345
|
|
|
$
|
79,693
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Salaries and wages
|
$
|
37,480
|
|
|
$
|
41,813
|
|
Taxes other than income taxes, primarily Value Added Taxes
|
23,225
|
|
|
24,600
|
|
||
Warranty cost
|
25,020
|
|
|
21,451
|
|
||
Freight
|
7,806
|
|
|
7,853
|
|
||
Professional
|
7,355
|
|
|
7,595
|
|
||
Product liability, current portion
|
3,572
|
|
|
3,323
|
|
||
Rebates
|
2,136
|
|
|
3,635
|
|
||
Insurance
|
2,726
|
|
|
2,674
|
|
||
Interest
|
921
|
|
|
1,268
|
|
||
Derivative liabilities
|
771
|
|
|
1,373
|
|
||
Severance
|
3,481
|
|
|
5,211
|
|
||
Other items, principally trade accruals
|
15,986
|
|
|
14,393
|
|
||
|
$
|
130,479
|
|
|
$
|
135,189
|
|
|
|
||
Balance as of January 1, 2013
|
$
|
21,451
|
|
Warranties provided during the period
|
7,843
|
|
|
Settlements made during the period
|
(8,741
|
)
|
|
Changes in liability for pre-existing warranties during the period, including expirations
|
4,467
|
|
|
Balance as of September 30, 2013
|
$
|
25,020
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Senior secured revolving credit facility, due in October 2015
|
$
|
38,968
|
|
|
$
|
217,494
|
|
Convertible senior subordinated debentures at 4.125%, due in February 2027
|
10,476
|
|
|
10,009
|
|
||
Other notes and lease obligations
|
6,625
|
|
|
7,299
|
|
||
|
56,069
|
|
|
234,802
|
|
||
Less current maturities of long-term debt
|
(1,294
|
)
|
|
(5,427
|
)
|
||
|
$
|
54,775
|
|
|
$
|
229,375
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||
Principal amount of liability component
|
$
|
13,350
|
|
|
$
|
13,350
|
|
Unamortized discount
|
(2,874
|
)
|
|
(3,341
|
)
|
||
Net carrying amount of liability component
|
$
|
10,476
|
|
|
$
|
10,009
|
|
|
September 30, 2013
|
|
Weighted
Average
Exercise
Price
|
|
||||
Options outstanding at January 1, 2013
|
4,664,634
|
|
|
$
|
26.21
|
|
|
|
Granted
|
756,700
|
|
|
14.47
|
|
|
||
Exercised
|
—
|
|
|
—
|
|
|
||
Canceled
|
(792,584
|
)
|
|
28.74
|
|
|
||
Options outstanding at September 30, 2013
|
4,628,750
|
|
|
$
|
23.86
|
|
|
|
Options exercise price range at September 30, 2013
|
$ 12.42 to
|
|
|
|
|
|||
|
$
|
47.80
|
|
|
|
|
||
Options exercisable at September 30, 2013
|
3,070,364
|
|
|
|
|
|||
Options available for grant at September 30, 2013*
|
4,460,337
|
|
|
|
|
*
|
Options available for grant as of
September 30, 2013
reduced by net restricted stock award activity of
793,351
.
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Exercise Prices
|
Number
Outstanding
At 9/30/13
|
|
Weighted Average
Remaining
Contractual Life (Years)
|
|
Weighted Average
Exercise Price
|
|
Number
Exercisable
At 9/30/13
|
|
Weighted Average
Exercise Price
|
||||||
$ 12.42 – $15.00
|
1,354,435
|
|
|
9.2
|
|
$
|
13.95
|
|
|
166,045
|
|
|
$
|
13.38
|
|
$ 15.01 – $25.00
|
1,613,291
|
|
|
5.6
|
|
22.51
|
|
|
1,364,559
|
|
|
22.21
|
|
||
$ 25.01 – $35.00
|
950,109
|
|
|
5.7
|
|
25.81
|
|
|
828,846
|
|
|
25.85
|
|
||
$ 35.01 – $47.80
|
710,915
|
|
|
1.4
|
|
43.21
|
|
|
710,914
|
|
|
43.21
|
|
||
Total
|
4,628,750
|
|
|
6.0
|
|
$
|
23.86
|
|
|
3,070,364
|
|
|
$
|
27.57
|
|
|
|
Foreign Currency
|
|
Long-Term Notes
|
|
Defined Benefit Plans
|
|
Derivatives
|
|
Total
|
|||||
June 30, 2013
|
|
117,817
|
|
|
(6,743
|
)
|
|
(6,419
|
)
|
|
59
|
|
|
104,714
|
|
OCI before reclassifications
|
|
17,852
|
|
|
(8,062
|
)
|
|
265
|
|
|
(197
|
)
|
|
9,858
|
|
Amount reclassified from accumulated OCI
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
78
|
|
|
16
|
|
Net current-period OCI
|
|
17,852
|
|
|
(8,062
|
)
|
|
203
|
|
|
(119
|
)
|
|
9,874
|
|
September 30, 2013
|
|
135,669
|
|
|
(14,805
|
)
|
|
(6,216
|
)
|
|
(60
|
)
|
|
114,588
|
|
|
|
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
|
|
18,204
|
|
|
(17,650
|
)
|
|
750
|
|
|
650
|
|
|
1,954
|
|
Amount reclassified from accumulated OCI
|
|
—
|
|
|
—
|
|
|
(181
|
)
|
|
72
|
|
|
(109
|
)
|
Net current-period OCI
|
|
18,204
|
|
|
(17,650
|
)
|
|
569
|
|
|
722
|
|
|
1,845
|
|
September 30, 2013
|
|
135,669
|
|
|
(14,805
|
)
|
|
(6,216
|
)
|
|
(60
|
)
|
|
114,588
|
|
|
|
Amount reclassified from OCI
|
|
Affected line item in the Statement of Comprehensive Income (Loss)
|
||||
|
|
Three Months Ended September 30, 2013
|
|
Nine Months Ended September 30, 2013
|
|
|
||
Defined Benefit Plans
|
|
|
|
|
|
|
||
Service and interest costs
|
|
(64
|
)
|
|
(187
|
)
|
|
Selling, General and Administrative
|
Tax
|
|
2
|
|
|
6
|
|
|
Income Taxes
|
Total after tax
|
|
(62
|
)
|
|
(181
|
)
|
|
|
|
|
|
|
|
|
|
||
Derivatives
|
|
|
|
|
|
|
||
Foreign currency forward contracts hedging sales
|
|
(54
|
)
|
|
(496
|
)
|
|
Net Sales
|
Foreign currency forward contracts hedging purchases
|
|
128
|
|
|
453
|
|
|
Cost of Products Sold
|
Interest rate swaps
|
|
13
|
|
|
139
|
|
|
Interest Expense
|
Total before tax
|
|
87
|
|
|
96
|
|
|
|
Tax
|
|
(9
|
)
|
|
(24
|
)
|
|
Income Taxes
|
Total after tax
|
|
78
|
|
|
72
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
Product Line
Discontinuance |
|
Contract
Terminations |
|
Other
|
|
Total
|
||||||||||
Charges
|
|
|
|
|
|
|
|
|
|
||||||||||
NA/HME
|
$
|
644
|
|
|
$
|
—
|
|
|
$
|
213
|
|
|
$
|
353
|
|
|
$
|
1,210
|
|
IPG
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|||||
Europe
|
739
|
|
|
—
|
|
|
—
|
|
|
(198
|
)
|
|
541
|
|
|||||
Asia/Pacific
|
15
|
|
|
—
|
|
|
79
|
|
|
3
|
|
|
97
|
|
|||||
Total
|
1,434
|
|
|
—
|
|
|
292
|
|
|
158
|
|
|
1,884
|
|
|||||
Payments
|
|
|
|
|
|
|
|
|
|
||||||||||
NA/HME
|
(1,624
|
)
|
|
—
|
|
|
(85
|
)
|
|
(305
|
)
|
|
(2,014
|
)
|
|||||
IPG
|
(52
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|||||
Europe
|
(157
|
)
|
|
—
|
|
|
—
|
|
|
198
|
|
|
41
|
|
|||||
Asia/Pacific
|
(1,040
|
)
|
|
—
|
|
|
(557
|
)
|
|
(3
|
)
|
|
(1,600
|
)
|
|||||
Total
|
(2,873
|
)
|
|
—
|
|
|
(642
|
)
|
|
(110
|
)
|
|
(3,625
|
)
|
|||||
September 30, 2013 Balance
|
|
|
|
|
|
|
|
|
|
||||||||||
NA/HME
|
2,594
|
|
|
—
|
|
|
128
|
|
|
48
|
|
|
2,770
|
|
|||||
IPG
|
143
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
143
|
|
|||||
Europe
|
714
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
714
|
|
|||||
Asia/Pacific
|
30
|
|
|
—
|
|
|
504
|
|
|
—
|
|
|
534
|
|
|||||
|
$
|
3,481
|
|
|
$
|
—
|
|
|
$
|
632
|
|
|
$
|
48
|
|
|
$
|
4,161
|
|
(In thousands except per share data)
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Basic
|
|
|
|
|
|
|
|
||||||||
Average common shares outstanding
|
31,902
|
|
|
31,877
|
|
|
31,902
|
|
|
31,838
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) from continuing operations
|
$
|
(5,383
|
)
|
|
$
|
563
|
|
|
$
|
(35,580
|
)
|
|
$
|
374
|
|
Net earnings from discontinued operations
|
$
|
21,485
|
|
|
$
|
2,301
|
|
|
$
|
74,401
|
|
|
$
|
8,746
|
|
Net earnings
|
$
|
16,102
|
|
|
$
|
2,864
|
|
|
$
|
38,821
|
|
|
$
|
9,120
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) per common share from continuing operations
|
$
|
(0.17
|
)
|
|
$
|
0.02
|
|
|
$
|
(1.12
|
)
|
|
$
|
0.01
|
|
Net earnings per common share from discontinued operations
|
$
|
0.67
|
|
|
$
|
0.07
|
|
|
$
|
2.33
|
|
|
$
|
0.27
|
|
Net earnings per common share
|
$
|
0.50
|
|
|
$
|
0.09
|
|
|
$
|
1.21
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted
|
|
|
|
|
|
|
|
||||||||
Average common shares outstanding
|
31,902
|
|
|
31,877
|
|
|
31,902
|
|
|
31,838
|
|
||||
Shares related to convertible debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Stock options and awards
|
164
|
|
|
24
|
|
|
107
|
|
|
9
|
|
||||
Average common shares assuming dilution
|
32,066
|
|
|
31,901
|
|
|
32,009
|
|
|
31,847
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) from continuing operations
|
$
|
(5,383
|
)
|
|
$
|
563
|
|
|
$
|
(35,580
|
)
|
|
$
|
374
|
|
Net earnings from discontinued operations
|
$
|
21,485
|
|
|
$
|
2,301
|
|
|
$
|
74,401
|
|
|
$
|
8,746
|
|
Net earnings
|
$
|
16,102
|
|
|
$
|
2,864
|
|
|
$
|
38,821
|
|
|
$
|
9,120
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) per common share from continuing operations *
|
$
|
(0.17
|
)
|
|
$
|
0.02
|
|
|
$
|
(1.12
|
)
|
|
$
|
0.01
|
|
Net earnings per common share from discontinued operations
|
$
|
0.67
|
|
|
$
|
0.07
|
|
|
$
|
2.32
|
|
|
$
|
0.27
|
|
Net earnings per common share *
|
$
|
0.50
|
|
|
$
|
0.09
|
|
|
$
|
1.20
|
|
|
$
|
0.28
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||
|
Notional
Amount
|
|
Unrealized
Net Gain
(Loss)
|
|
Notional
Amount
|
|
Unrealized
Net Gain
(Loss)
|
||||||||
USD / AUD
|
$
|
579
|
|
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
—
|
|
USD / CAD
|
10,330
|
|
|
(85
|
)
|
|
17,620
|
|
|
(6
|
)
|
||||
USD / CNY
|
3,320
|
|
|
55
|
|
|
—
|
|
|
—
|
|
||||
USD / CHF
|
232
|
|
|
7
|
|
|
—
|
|
|
—
|
|
||||
USD / EUR
|
14,433
|
|
|
(368
|
)
|
|
59,510
|
|
|
(797
|
)
|
||||
USD / GBP
|
692
|
|
|
22
|
|
|
2,519
|
|
|
(3
|
)
|
||||
USD / NZD
|
465
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||
USD / SEK
|
3,499
|
|
|
115
|
|
|
—
|
|
|
—
|
|
||||
USD / MXP
|
2,846
|
|
|
11
|
|
|
6,954
|
|
|
141
|
|
||||
EUR / CAD
|
450
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||
EUR / CHF
|
1,555
|
|
|
17
|
|
|
—
|
|
|
—
|
|
||||
EUR / GBP
|
5,389
|
|
|
(40
|
)
|
|
2,077
|
|
|
46
|
|
||||
EUR / SEK
|
415
|
|
|
25
|
|
|
—
|
|
|
—
|
|
||||
EUR / NZD
|
1,748
|
|
|
23
|
|
|
5,749
|
|
|
105
|
|
||||
GBP / CHF
|
304
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||
GBP / SEK
|
1,099
|
|
|
52
|
|
|
4,154
|
|
|
25
|
|
||||
DKK / SEK
|
1,051
|
|
|
(9
|
)
|
|
6,397
|
|
|
(47
|
)
|
||||
NOK / SEK
|
926
|
|
|
66
|
|
|
3,428
|
|
|
(4
|
)
|
||||
|
$
|
49,333
|
|
|
$
|
(55
|
)
|
|
$
|
108,408
|
|
|
$
|
(540
|
)
|
|
September 30, 2013
|
|
September 30, 2012
|
||||||||||||
|
Notional
Amount
|
|
Gain
(Loss)
|
|
Notional
Amount
|
|
Gain
(Loss)
|
||||||||
CAD / USD
|
$
|
4,840
|
|
|
$
|
4
|
|
|
$
|
14,801
|
|
|
$
|
434
|
|
EUR / USD
|
12,273
|
|
|
166
|
|
|
9,906
|
|
|
134
|
|
||||
CHF / USD
|
—
|
|
|
—
|
|
|
785
|
|
|
13
|
|
||||
DKK / USD
|
13,517
|
|
|
62
|
|
|
—
|
|
|
—
|
|
||||
GBP / USD
|
6,361
|
|
|
67
|
|
|
—
|
|
|
—
|
|
||||
NOK / USD
|
4,486
|
|
|
12
|
|
|
—
|
|
|
—
|
|
||||
NZD / USD
|
2,161
|
|
|
(8
|
)
|
|
3,146
|
|
|
40
|
|
||||
SEK / USD
|
6,502
|
|
|
32
|
|
|
—
|
|
|
—
|
|
||||
EUR / AUD
|
—
|
|
|
—
|
|
|
1,908
|
|
|
5
|
|
||||
EUR / CAD
|
—
|
|
|
—
|
|
|
239
|
|
|
(15
|
)
|
||||
EUR / DKK
|
—
|
|
|
—
|
|
|
(11,203
|
)
|
|
(27
|
)
|
||||
AUD / CAD
|
878
|
|
|
(4
|
)
|
|
3,056
|
|
|
(38
|
)
|
||||
AUD / EUR
|
1,788
|
|
|
248
|
|
|
—
|
|
|
—
|
|
||||
AUD / GBP
|
298
|
|
|
38
|
|
|
—
|
|
|
—
|
|
||||
AUD / NZD
|
—
|
|
|
—
|
|
|
1,048
|
|
|
15
|
|
||||
EUR / NZD
|
—
|
|
|
—
|
|
|
90
|
|
|
(10
|
)
|
||||
EUR / NOK
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
|
$
|
53,104
|
|
|
$
|
617
|
|
|
$
|
23,782
|
|
|
$
|
551
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Derivatives designated as hedging instruments under ASC 815
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts
|
$
|
626
|
|
|
$
|
681
|
|
|
$
|
375
|
|
|
$
|
915
|
|
Interest rate swap contracts
|
—
|
|
|
22
|
|
|
—
|
|
|
316
|
|
||||
Derivatives not designated as hedging instruments under ASC 815
|
|
|
|
|
|
|
|
||||||||
Foreign currency forward exchange contracts
|
685
|
|
|
68
|
|
|
687
|
|
|
142
|
|
||||
Total derivatives
|
$
|
1,311
|
|
|
$
|
771
|
|
|
$
|
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 September 30, 2013
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
$
|
(207
|
)
|
|
$
|
83
|
|
|
$
|
2
|
|
Interest rate swap contracts
|
33
|
|
|
(13
|
)
|
|
—
|
|
|||
|
$
|
(174
|
)
|
|
$
|
70
|
|
|
$
|
2
|
|
Nine months ended September 30, 2013
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
$
|
505
|
|
|
$
|
(20
|
)
|
|
$
|
37
|
|
Interest rate swap contracts
|
433
|
|
|
(139
|
)
|
|
—
|
|
|||
|
$
|
938
|
|
|
$
|
(159
|
)
|
|
$
|
37
|
|
Three months ended September 30, 2012
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
$
|
(2,522
|
)
|
|
$
|
1,241
|
|
|
$
|
(38
|
)
|
Interest rate swap contracts
|
(3
|
)
|
|
—
|
|
|
—
|
|
|||
|
$
|
(2,525
|
)
|
|
$
|
1,241
|
|
|
$
|
(38
|
)
|
Nine months ended September 30, 2012
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
$
|
(2,956
|
)
|
|
$
|
2,706
|
|
|
$
|
(9
|
)
|
Interest rate swap contracts
|
(99
|
)
|
|
—
|
|
|
—
|
|
|||
|
$
|
(3,055
|
)
|
|
$
|
2,706
|
|
|
$
|
(9
|
)
|
|
|
|
|
|
|
||||||
Derivatives not designated as hedging
instruments under ASC 815
|
|
|
|
|
Amount of Gain (Loss)
Recognized in Income on Derivatives
|
||||||
Three months ended September 30, 2013
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
|
|
|
|
$
|
361
|
|
||||
Nine months ended September 30, 2013
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
|
|
|
|
$
|
617
|
|
||||
Three months ended September 30, 2012
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
|
|
|
|
$
|
569
|
|
||||
Nine months ended September 30, 2012
|
|
|
|
|
|
||||||
Foreign currency forward exchange contracts
|
|
|
|
|
$
|
551
|
|
|
|
|
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
|
|||||||
September 30, 2013
|
|
|
|
|
|
|
|
||||||
Forward Exchange Contracts—net
|
$
|
562
|
|
|
—
|
|
|
$
|
562
|
|
|
—
|
|
Interest Rate Swap Agreements—net
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
||
December 31, 2012:
|
|
|
|
|
|
|
|
||||||
Forward Exchange Contracts—net
|
$
|
5
|
|
|
—
|
|
|
$
|
5
|
|
|
—
|
|
Interest Rate Swap Agreements—net
|
(316
|
)
|
|
—
|
|
|
(316
|
)
|
|
—
|
|
|
September 30, 2013
|
|
December 31, 2012
|
||||||||||||
|
Carrying
Value
|
|
Fair Value
|
|
Carrying
Value
|
|
Fair Value
|
||||||||
Cash and cash equivalents
|
$
|
32,625
|
|
|
$
|
32,625
|
|
|
$
|
38,791
|
|
|
$
|
38,791
|
|
Other investments
|
1,190
|
|
|
1,190
|
|
|
1,171
|
|
|
1,171
|
|
||||
Installment receivables, net of reserves
|
2,236
|
|
|
2,236
|
|
|
2,594
|
|
|
2,594
|
|
||||
Long-term debt (including current maturities of long-term debt)
|
(56,069
|
)
|
|
(56,115
|
)
|
|
(234,802
|
)
|
|
(234,072
|
)
|
||||
Forward contracts in Other Current Assets
|
1,311
|
|
|
1,311
|
|
|
1,062
|
|
|
1,062
|
|
||||
Forward contracts in Accrued Expenses
|
(749
|
)
|
|
(749
|
)
|
|
(1,057
|
)
|
|
(1,057
|
)
|
||||
Interest rate swap agreements in Accrued Expenses
|
(22
|
)
|
|
(22
|
)
|
|
(316
|
)
|
|
(316
|
)
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Revenues from external customers
|
|
|
|
|
|
|
|
||||||||
North America/HME
|
$
|
151,052
|
|
|
$
|
170,701
|
|
|
$
|
462,261
|
|
|
$
|
527,103
|
|
Institutional Products Group
|
28,083
|
|
|
33,557
|
|
|
87,135
|
|
|
95,726
|
|
||||
Europe
|
150,265
|
|
|
141,705
|
|
|
429,650
|
|
|
401,721
|
|
||||
Asia/Pacific
|
11,776
|
|
|
15,555
|
|
|
38,327
|
|
|
53,217
|
|
||||
Consolidated
|
$
|
341,176
|
|
|
$
|
361,518
|
|
|
$
|
1,017,373
|
|
|
$
|
1,077,767
|
|
Intersegment revenues
|
|
|
|
|
|
|
|
||||||||
North America/HME
|
$
|
20,501
|
|
|
$
|
24,813
|
|
|
$
|
59,735
|
|
|
$
|
81,985
|
|
Institutional Products Group
|
1,254
|
|
|
1,941
|
|
|
4,243
|
|
|
5,471
|
|
||||
Europe
|
1,890
|
|
|
3,239
|
|
|
6,156
|
|
|
8,448
|
|
||||
Asia/Pacific
|
6,411
|
|
|
7,737
|
|
|
19,417
|
|
|
27,177
|
|
||||
Consolidated
|
$
|
30,056
|
|
|
$
|
37,730
|
|
|
$
|
89,551
|
|
|
$
|
123,081
|
|
Restructuring charges before income taxes
|
|
|
|
|
|
|
|
||||||||
North America/HME
|
$
|
1,210
|
|
|
$
|
352
|
|
|
$
|
4,837
|
|
|
$
|
2,214
|
|
Institutional Products Group
|
36
|
|
|
—
|
|
|
237
|
|
|
35
|
|
||||
Europe
|
542
|
|
|
481
|
|
|
722
|
|
|
772
|
|
||||
Asia/Pacific
|
96
|
|
|
342
|
|
|
1,202
|
|
|
721
|
|
||||
Consolidated
|
$
|
1,884
|
|
|
$
|
1,175
|
|
|
$
|
6,998
|
|
|
$
|
3,742
|
|
Earnings (loss) before income taxes
|
|
|
|
|
|
|
|
||||||||
North America/HME
|
$
|
(10,191
|
)
|
|
$
|
(28
|
)
|
|
$
|
(33,593
|
)
|
|
$
|
8,086
|
|
Institutional Products Group
|
1,009
|
|
|
579
|
|
|
1,955
|
|
|
4,820
|
|
||||
Europe
|
13,136
|
|
|
10,218
|
|
|
27,344
|
|
|
23,504
|
|
||||
Asia/Pacific
|
(2,233
|
)
|
|
(2,301
|
)
|
|
(9,871
|
)
|
|
(4,139
|
)
|
||||
All Other (1)
|
(6,354
|
)
|
|
(5,460
|
)
|
|
(17,515
|
)
|
|
(17,411
|
)
|
||||
Consolidated
|
$
|
(4,633
|
)
|
|
$
|
3,008
|
|
|
$
|
(31,680
|
)
|
|
$
|
14,860
|
|
(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 September 30, 2013
|
(in thousands)
|
||||||||||||||||||
Net sales
|
$
|
60,641
|
|
|
$
|
119,548
|
|
|
$
|
184,299
|
|
|
$
|
(23,312
|
)
|
|
$
|
341,176
|
|
Cost of products sold
|
52,454
|
|
|
86,978
|
|
|
128,232
|
|
|
(23,312
|
)
|
|
244,352
|
|
|||||
Gross Profit
|
8,187
|
|
|
32,570
|
|
|
56,067
|
|
|
—
|
|
|
96,824
|
|
|||||
Selling, general and administrative expenses
|
29,046
|
|
|
25,363
|
|
|
44,310
|
|
|
—
|
|
|
98,719
|
|
|||||
Charge related to restructuring activities
|
1,597
|
|
|
36
|
|
|
251
|
|
|
—
|
|
|
1,884
|
|
|||||
Asset write-downs to intangibles and investments
|
—
|
|
|
167
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|||||
Income (loss) from equity investee
|
32,513
|
|
|
8,935
|
|
|
22
|
|
|
(41,470
|
)
|
|
—
|
|
|||||
Interest expense (income)—net
|
(603
|
)
|
|
1,213
|
|
|
77
|
|
|
—
|
|
|
687
|
|
|||||
Earnings (Loss) from Continuing Operations before Income Taxes
|
10,660
|
|
|
14,726
|
|
|
11,451
|
|
|
(41,470
|
)
|
|
(4,633
|
)
|
|||||
Income taxes (benefit)
|
(5,442
|
)
|
|
—
|
|
|
6,192
|
|
|
—
|
|
|
750
|
|
|||||
Net Earnings (Loss) from Continuing Operations
|
16,102
|
|
|
14,726
|
|
|
5,259
|
|
|
(41,470
|
)
|
|
(5,383
|
)
|
|||||
Net Earnings from Discontinued Operations
|
—
|
|
|
21,485
|
|
|
—
|
|
|
—
|
|
|
21,485
|
|
|||||
Net Earnings (loss)
|
$
|
16,102
|
|
|
$
|
36,211
|
|
|
$
|
5,259
|
|
|
$
|
(41,470
|
)
|
|
$
|
16,102
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Comprehensive Income (Loss), Net of Tax
|
9,874
|
|
|
220
|
|
|
10,135
|
|
|
(10,355
|
)
|
|
9,874
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive Income (Loss)
|
$
|
25,976
|
|
|
$
|
36,431
|
|
|
$
|
15,394
|
|
|
$
|
(51,825
|
)
|
|
$
|
25,976
|
|
|
The
Company
(Parent)
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
Three month period ended September 30, 2012
|
(in thousands)
|
||||||||||||||||||
Net sales
|
$
|
90,406
|
|
|
$
|
116,339
|
|
|
$
|
183,801
|
|
|
$
|
(29,028
|
)
|
|
$
|
361,518
|
|
Cost of products sold
|
70,600
|
|
|
83,685
|
|
|
126,852
|
|
|
(29,031
|
)
|
|
252,106
|
|
|||||
Gross Profit
|
19,806
|
|
|
32,654
|
|
|
56,949
|
|
|
3
|
|
|
109,412
|
|
|||||
Selling, general and administrative expenses
|
33,712
|
|
|
20,356
|
|
|
45,492
|
|
|
3,721
|
|
|
103,281
|
|
|||||
Charge related to restructuring activities
|
334
|
|
|
18
|
|
|
823
|
|
|
—
|
|
|
1,175
|
|
|||||
Loss on debt extinguishment including debt finance charges and associated fees
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Income (loss) from equity investee
|
17,302
|
|
|
(4,264
|
)
|
|
228
|
|
|
(13,266
|
)
|
|
—
|
|
|||||
Interest expense (income)—net
|
(1,024
|
)
|
|
2,201
|
|
|
771
|
|
|
—
|
|
|
1,948
|
|
|||||
Earnings (Loss) from Continuing Operations before Income Taxes
|
4,086
|
|
|
5,815
|
|
|
10,091
|
|
|
(16,984
|
)
|
|
3,008
|
|
|||||
Income taxes (benefit)
|
1,222
|
|
|
(3,028
|
)
|
|
4,251
|
|
|
—
|
|
|
2,445
|
|
|||||
Net Earnings (Loss) from Continuing Operations
|
2,864
|
|
|
8,843
|
|
|
5,840
|
|
|
(16,984
|
)
|
|
563
|
|
|||||
Net Earnings from Discontinued Operations
|
—
|
|
|
2,301
|
|
|
—
|
|
|
—
|
|
|
2,301
|
|
|||||
Net Earnings (loss)
|
$
|
2,864
|
|
|
$
|
11,144
|
|
|
$
|
5,840
|
|
|
$
|
(16,984
|
)
|
|
$
|
2,864
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Comprehensive Income (Loss), Net of Tax
|
14,518
|
|
|
3,164
|
|
|
11,412
|
|
|
(14,576
|
)
|
|
14,518
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive Income (Loss)
|
$
|
17,382
|
|
|
$
|
14,308
|
|
|
$
|
17,252
|
|
|
$
|
(31,560
|
)
|
|
$
|
17,382
|
|
|
The
Company
(Parent)
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
Nine month period ended September 30, 2013
|
|
||||||||||||||||||
Net sales
|
$
|
186,453
|
|
|
$
|
364,005
|
|
|
$
|
535,805
|
|
|
$
|
(68,890
|
)
|
|
$
|
1,017,373
|
|
Cost of products sold
|
159,884
|
|
|
264,501
|
|
|
378,287
|
|
|
(69,264
|
)
|
|
733,408
|
|
|||||
Gross Profit
|
26,569
|
|
|
99,504
|
|
|
157,518
|
|
|
374
|
|
|
283,965
|
|
|||||
Selling, general and administrative expenses
|
99,338
|
|
|
72,370
|
|
|
131,640
|
|
|
2,694
|
|
|
306,042
|
|
|||||
Charge related to restructuring activities
|
5,078
|
|
|
49
|
|
|
1,871
|
|
|
—
|
|
|
6,998
|
|
|||||
Asset write-downs to intangibles and investments
|
—
|
|
|
167
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|||||
Income (loss) from equity investee
|
105,501
|
|
|
21,472
|
|
|
(93
|
)
|
|
(126,880
|
)
|
|
—
|
|
|||||
Interest expense (income)—net
|
(1,418
|
)
|
|
3,141
|
|
|
715
|
|
|
—
|
|
|
2,438
|
|
|||||
Earnings (Loss) from Continuing Operations before Income Taxes
|
29,072
|
|
|
45,249
|
|
|
23,199
|
|
|
(129,200
|
)
|
|
(31,680
|
)
|
|||||
Income taxes (benefit)
|
(9,749
|
)
|
|
—
|
|
|
13,649
|
|
|
—
|
|
|
3,900
|
|
|||||
Net Earnings (Loss) from Continuing Operations
|
38,821
|
|
|
45,249
|
|
|
9,550
|
|
|
(129,200
|
)
|
|
(35,580
|
)
|
|||||
Net Earnings from Discontinued Operations
|
—
|
|
|
74,401
|
|
|
—
|
|
|
—
|
|
|
74,401
|
|
|||||
Net Earnings (loss)
|
$
|
38,821
|
|
|
$
|
119,650
|
|
|
$
|
9,550
|
|
|
$
|
(129,200
|
)
|
|
$
|
38,821
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Comprehensive Income (Loss), Net of Tax
|
1,845
|
|
|
(415
|
)
|
|
2,228
|
|
|
(1,813
|
)
|
|
1,845
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive Income (Loss)
|
$
|
40,666
|
|
|
$
|
119,235
|
|
|
$
|
11,778
|
|
|
$
|
(131,013
|
)
|
|
$
|
40,666
|
|
|
The
Company
(Parent)
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
Nine month period ended September 30, 2012
|
(in thousands)
|
||||||||||||||||||
Net sales
|
$
|
275,742
|
|
|
$
|
355,378
|
|
|
$
|
540,535
|
|
|
$
|
(93,888
|
)
|
|
$
|
1,077,767
|
|
Cost of products sold
|
211,115
|
|
|
256,854
|
|
|
371,855
|
|
|
(93,455
|
)
|
|
746,369
|
|
|||||
Gross Profit
|
64,627
|
|
|
98,524
|
|
|
168,680
|
|
|
(433
|
)
|
|
331,398
|
|
|||||
Selling, general and administrative expenses
|
99,736
|
|
|
64,452
|
|
|
138,207
|
|
|
4,360
|
|
|
306,755
|
|
|||||
Charge related to restructuring activities
|
2,085
|
|
|
39
|
|
|
1,618
|
|
|
—
|
|
|
3,742
|
|
|||||
Loss on debt extinguishment including debt finance charges and associated fees
|
312
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
312
|
|
|||||
Income (loss) from equity investee
|
45,175
|
|
|
1,954
|
|
|
391
|
|
|
(47,520
|
)
|
|
—
|
|
|||||
Interest expense (income)—net
|
(3,041
|
)
|
|
6,396
|
|
|
2,374
|
|
|
—
|
|
|
5,729
|
|
|||||
Earnings (Loss) from Continuing Operations before Income Taxes
|
10,710
|
|
|
29,591
|
|
|
26,872
|
|
|
(52,313
|
)
|
|
14,860
|
|
|||||
Income taxes (benefit)
|
1,590
|
|
|
(5,164
|
)
|
|
18,060
|
|
|
—
|
|
|
14,486
|
|
|||||
Net Earnings (Loss) from Continuing Operations
|
9,120
|
|
|
34,755
|
|
|
8,812
|
|
|
(52,313
|
)
|
|
374
|
|
|||||
Net Earnings from Discontinued Operations
|
—
|
|
|
8,746
|
|
|
—
|
|
|
—
|
|
|
8,746
|
|
|||||
Net Earnings (loss)
|
$
|
9,120
|
|
|
$
|
43,501
|
|
|
$
|
8,812
|
|
|
$
|
(52,313
|
)
|
|
$
|
9,120
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Comprehensive Income (Loss), Net of Tax
|
(24,673
|
)
|
|
3,179
|
|
|
(27,878
|
)
|
|
24,699
|
|
|
(24,673
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Comprehensive Income (Loss)
|
$
|
(15,553
|
)
|
|
$
|
46,680
|
|
|
$
|
(19,066
|
)
|
|
$
|
(27,614
|
)
|
|
$
|
(15,553
|
)
|
|
The
Company
(Parent)
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
September 30, 2013
|
(in thousands)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
3,148
|
|
|
$
|
—
|
|
|
$
|
29,477
|
|
|
$
|
—
|
|
|
$
|
32,625
|
|
Trade receivables, net
|
69,633
|
|
|
29,453
|
|
|
92,378
|
|
|
—
|
|
|
191,464
|
|
|||||
Installment receivables, net
|
—
|
|
|
569
|
|
|
991
|
|
|
—
|
|
|
1,560
|
|
|||||
Inventories, net
|
37,797
|
|
|
27,784
|
|
|
104,970
|
|
|
(3,183
|
)
|
|
167,368
|
|
|||||
Intercompany advances, net
|
5,055
|
|
|
664
|
|
|
43,145
|
|
|
(48,864
|
)
|
|
—
|
|
|||||
Other current assets
|
6,371
|
|
|
570
|
|
|
34,129
|
|
|
(7,240
|
)
|
|
33,830
|
|
|||||
Total Current Assets
|
122,004
|
|
|
59,040
|
|
|
305,090
|
|
|
(59,287
|
)
|
|
426,847
|
|
|||||
Investment in subsidiaries
|
1,433,252
|
|
|
440,197
|
|
|
—
|
|
|
(1,873,449
|
)
|
|
—
|
|
|||||
Intercompany advances, net
|
937,116
|
|
|
1,592,785
|
|
|
178,180
|
|
|
(2,708,081
|
)
|
|
—
|
|
|||||
Other Assets
|
38,961
|
|
|
463
|
|
|
903
|
|
|
—
|
|
|
40,327
|
|
|||||
Other Intangibles
|
553
|
|
|
19,139
|
|
|
45,413
|
|
|
—
|
|
|
65,105
|
|
|||||
Property and Equipment, net
|
36,783
|
|
|
18,621
|
|
|
52,987
|
|
|
—
|
|
|
108,391
|
|
|||||
Goodwill
|
—
|
|
|
16,660
|
|
|
434,067
|
|
|
—
|
|
|
450,727
|
|
|||||
Total Assets
|
$
|
2,568,669
|
|
|
$
|
2,146,905
|
|
|
$
|
1,016,640
|
|
|
$
|
(4,640,817
|
)
|
|
$
|
1,091,397
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
50,462
|
|
|
$
|
8,237
|
|
|
$
|
58,985
|
|
|
$
|
—
|
|
|
$
|
117,684
|
|
Accrued expenses
|
30,864
|
|
|
17,737
|
|
|
89,118
|
|
|
(7,240
|
)
|
|
130,479
|
|
|||||
Accrued income taxes
|
5,540
|
|
|
—
|
|
|
1,661
|
|
|
—
|
|
|
7,201
|
|
|||||
Intercompany advances, net
|
41,889
|
|
|
1,481
|
|
|
5,494
|
|
|
(48,864
|
)
|
|
—
|
|
|||||
Short-term debt and current maturities of long-term obligations
|
556
|
|
|
7
|
|
|
731
|
|
|
—
|
|
|
1,294
|
|
|||||
Total Current Liabilities
|
129,311
|
|
|
27,462
|
|
|
155,989
|
|
|
(56,104
|
)
|
|
256,658
|
|
|||||
Long-Term Debt
|
22,476
|
|
|
82
|
|
|
32,217
|
|
|
—
|
|
|
54,775
|
|
|||||
Other Long-Term Obligations
|
54,176
|
|
|
—
|
|
|
60,597
|
|
|
—
|
|
|
114,773
|
|
|||||
Intercompany advances, net
|
1,707,515
|
|
|
936,722
|
|
|
63,844
|
|
|
(2,708,081
|
)
|
|
—
|
|
|||||
Total Shareholders’ Equity
|
655,191
|
|
|
1,182,639
|
|
|
703,993
|
|
|
(1,876,632
|
)
|
|
665,191
|
|
|||||
Total Liabilities and Shareholders’ Equity
|
$
|
2,568,669
|
|
|
$
|
2,146,905
|
|
|
$
|
1,016,640
|
|
|
$
|
(4,640,817
|
)
|
|
$
|
1,091,397
|
|
|
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
|
|
|||||
Intercompany advances, net
|
4,077
|
|
|
763
|
|
|
64,570
|
|
|
(69,410
|
)
|
|
—
|
|
|||||
Other current assets
|
12,727
|
|
|
473
|
|
|
34,606
|
|
|
(6,030
|
)
|
|
41,776
|
|
|||||
Assets held for sale - current
|
—
|
|
|
103,157
|
|
|
—
|
|
|
—
|
|
|
103,157
|
|
|||||
Total Current Assets
|
134,478
|
|
|
174,918
|
|
|
336,649
|
|
|
(78,096
|
)
|
|
567,949
|
|
|||||
Investment in subsidiaries
|
1,536,898
|
|
|
523,176
|
|
|
6,888
|
|
|
(2,066,962
|
)
|
|
—
|
|
|||||
Intercompany advances, net
|
863,973
|
|
|
1,468,405
|
|
|
173,903
|
|
|
(2,506,281
|
)
|
|
—
|
|
|||||
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
|
$
|
2,616,929
|
|
|
$
|
2,241,918
|
|
|
$
|
1,054,786
|
|
|
$
|
(4,651,339
|
)
|
|
$
|
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
|
|
|||||
Intercompany advances, net
|
61,368
|
|
|
2,369
|
|
|
5,673
|
|
|
(69,410
|
)
|
|
—
|
|
|||||
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
|
167,993
|
|
|
53,354
|
|
|
153,828
|
|
|
(75,440
|
)
|
|
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
|
1,551,976
|
|
|
863,585
|
|
|
90,720
|
|
|
(2,506,281
|
)
|
|
—
|
|
|||||
Total Shareholders’ Equity
|
620,989
|
|
|
1,324,836
|
|
|
744,782
|
|
|
(2,069,618
|
)
|
|
620,989
|
|
|||||
Total Liabilities and Shareholders’ Equity
|
$
|
2,616,929
|
|
|
$
|
2,241,918
|
|
|
$
|
1,054,786
|
|
|
$
|
(4,651,339
|
)
|
|
$
|
1,262,294
|
|
|
The
Company
(Parent)
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
Nine month period ended September 30, 2013
|
(in thousands)
|
||||||||||||||||||
Net Cash Provided (Used) by Operating Activities
|
$
|
35,179
|
|
|
$
|
(81,077
|
)
|
|
$
|
(20,736
|
)
|
|
$
|
65,389
|
|
|
$
|
(1,245
|
)
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property and equipment
|
(3,234
|
)
|
|
(3,611
|
)
|
|
(4,241
|
)
|
|
—
|
|
|
(11,086
|
)
|
|||||
Proceeds from sale of property and equipment
|
—
|
|
|
11
|
|
|
845
|
|
|
—
|
|
|
856
|
|
|||||
Proceeds from sale of business
|
—
|
|
|
187,552
|
|
|
—
|
|
|
—
|
|
|
187,552
|
|
|||||
Other long-term assets
|
783
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
949
|
|
|||||
Other
|
171,353
|
|
|
(103,417
|
)
|
|
—
|
|
|
(68,083
|
)
|
|
(147
|
)
|
|||||
Net Cash Provided (Used) for Investing Activities
|
168,902
|
|
|
80,535
|
|
|
(3,230
|
)
|
|
(68,083
|
)
|
|
178,124
|
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from revolving lines of credit and long-term borrowings
|
226,189
|
|
|
—
|
|
|
23,935
|
|
|
—
|
|
|
250,124
|
|
|||||
Payments on revolving lines of credit and long-term borrowings
|
(431,709
|
)
|
|
(476
|
)
|
|
—
|
|
|
—
|
|
|
(432,185
|
)
|
|||||
Payment of dividends
|
(1,187
|
)
|
|
—
|
|
|
(2,694
|
)
|
|
2,694
|
|
|
(1,187
|
)
|
|||||
Net Cash Provided (Used) by Financing Activities
|
(206,707
|
)
|
|
(476
|
)
|
|
21,241
|
|
|
2,694
|
|
|
(183,248
|
)
|
|||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
203
|
|
|
—
|
|
|
203
|
|
|||||
Decrease in cash and cash equivalents
|
(2,626
|
)
|
|
(1,018
|
)
|
|
(2,522
|
)
|
|
—
|
|
|
(6,166
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
5,774
|
|
|
1,018
|
|
|
31,999
|
|
|
—
|
|
|
38,791
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
3,148
|
|
|
$
|
—
|
|
|
$
|
29,477
|
|
|
$
|
—
|
|
|
$
|
32,625
|
|
|
The
Company
(Parent)
|
|
Combined
Guarantor
Subsidiaries
|
|
Combined
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
Nine month period ended September 30, 2012
|
(in thousands)
|
||||||||||||||||||
Net Cash Provided (Used) by Operating Activities
|
$
|
18,260
|
|
|
$
|
5,405
|
|
|
$
|
7,527
|
|
|
$
|
(4,370
|
)
|
|
$
|
26,822
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property and equipment
|
(1,353
|
)
|
|
(7,854
|
)
|
|
(5,568
|
)
|
|
—
|
|
|
(14,775
|
)
|
|||||
Proceeds from sale of property and equipment
|
18
|
|
|
14
|
|
|
65
|
|
|
—
|
|
|
97
|
|
|||||
Other long-term assets
|
(214
|
)
|
|
—
|
|
|
623
|
|
|
—
|
|
|
409
|
|
|||||
Other
|
(158
|
)
|
|
(117
|
)
|
|
56
|
|
|
—
|
|
|
(219
|
)
|
|||||
Net Cash Used for Investing Activities
|
(1,707
|
)
|
|
(7,957
|
)
|
|
(4,824
|
)
|
|
—
|
|
|
(14,488
|
)
|
|||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from revolving lines of credit and long-term borrowings
|
252,590
|
|
|
3,113
|
|
|
—
|
|
|
—
|
|
|
255,703
|
|
|||||
Payments on revolving lines of credit and long-term borrowings
|
(266,182
|
)
|
|
—
|
|
|
(539
|
)
|
|
—
|
|
|
(266,721
|
)
|
|||||
Payment of financing costs
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Payment of dividends
|
(1,183
|
)
|
|
—
|
|
|
(4,370
|
)
|
|
4,370
|
|
|
(1,183
|
)
|
|||||
Net Cash Provided (Used) by Financing Activities
|
(14,776
|
)
|
|
3,113
|
|
|
(4,909
|
)
|
|
4,370
|
|
|
(12,202
|
)
|
|||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
226
|
|
|
—
|
|
|
226
|
|
|||||
Increase (Decrease) in cash and cash equivalents
|
1,777
|
|
|
561
|
|
|
(1,980
|
)
|
|
—
|
|
|
358
|
|
|||||
Cash and cash equivalents at beginning of year
|
3,642
|
|
|
2,104
|
|
|
29,178
|
|
|
—
|
|
|
34,924
|
|
|||||
Cash and cash equivalents at end of period
|
$
|
5,419
|
|
|
$
|
2,665
|
|
|
$
|
27,198
|
|
|
$
|
—
|
|
|
$
|
35,282
|
|
|
Nine Months Ended
September 30,
|
||||||
|
2013
|
|
2012
|
||||
Net cash provided by operating activities
|
$
|
(1,245
|
)
|
|
$
|
26,822
|
|
Plus: Net cash impact related to restructuring activities
|
7,805
|
|
|
5,750
|
|
||
Less: Purchases of property and equipment—net
|
(10,230
|
)
|
|
(14,678
|
)
|
||
Free Cash Flow
|
$
|
(3,670
|
)
|
|
$
|
17,894
|
|
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)
|
||
7/1/2013
|
-
|
7/31/2013
|
—
|
|
$
|
—
|
|
|
—
|
|
2,453,978
|
8/1/2013
|
-
|
8/31/2013
|
—
|
|
—
|
|
|
—
|
|
2,453,978
|
|
9/1/2013
|
-
|
9/30/2013
|
—
|
|
—
|
|
|
—
|
|
2,453,978
|
|
Total
|
|
|
—
|
|
$
|
—
|
|
|
—
|
|
2,453,978
|
(1)
|
No shares were repurchased between July 1, 2013 and
September 30, 2013
and 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
September 30, 2013
.
|
|
|
|
|
|
|
|
INVACARE CORPORATION
|
||
|
|
|
|
|
Date:
|
November 6, 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:
|
November 6, 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:
|
November 6, 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:
|
November 6, 2013
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.
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/s/ ROBERT K. GUDBRANSON
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Robert K. Gudbranson
Chief Financial Officer
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Date:
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November 6, 2013
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