Invacare 2013 Annual Report Download - page 87

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-13
an account is placed in collection status, the Company goes through a legal process of adjudication which typically approximates
eighteen 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 as of December 31, 2013 and 2012 consist of the following (in thousands):
2013 2012
Current Long-
Term Total Current Long-
Term Total
Installment receivables. . . . . . . $ 3,242 $ 5,677 $ 8,919 $ 4,982 $ 1,506 $ 6,488
Less: . . . . . . . . . . . . . . . . . . . . .
Unearned interest . . . . . . . . . . . (61) — (61)(71) — (71)
3,181 5,677 8,858 4,911 1,506 6,417
Allowance for doubtful
accounts . . . . . . . . . . . . . . . . . . (1,619) (4,420) (6,039)(2,723)(1,100)(3,823)
$ 1,562 $ 1,257 $ 2,819 $ 2,188 $ 406 $ 2,594
Installment receivables purchased from DLL during the twelve months ended December 31, 2013 increased the gross
installment receivables balance by $5,899,000 during the year compared to $2,609,000 in 2012. No sales of installment receivables
were made by the Company during the year.
The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands):
2013 2012
Balance as of January 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,823 $ 4,273
Current period provision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,457 458
Direct write-offs charged against the allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,241)(908)
Balance as of December 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,039 $ 3,823
Installment receivables by class as of December 31, 2013 consist of the following (in thousands):
Total
Installment
Receivables
Unpaid
Principal
Balance
Related
Allowance
for
Doubtful
Accounts
Interest
Income
Recognized
U.S.
Impaired Installment receivables with a
related allowance recorded. . . . . . . . . . . . . . $ 7,464 $ 7,464 $ 5,951 $ —
Canada
Non-Impaired Installment receivables with
no related allowance recorded . . . . . . . . . . . 1,367 1,306 — 101
Impaired Installment receivables with a
related allowance recorded. . . . . . . . . . . . . . 88 88 88 —
Total Canadian Installment Receivables . . . $ 1,455 $ 1,394 $ 88 $ 101
Total
Non-Impaired Installment receivables with
no related allowance recorded . . . . . . . . . . . 1,367 1,306 — 101
Impaired Installment receivables with a
related allowance recorded. . . . . . . . . . . . . . 7,552 7,552 6,039 —
Total Installment Receivables . . . . . . . . . . . $ 8,919 $ 8,858 $ 6,039 $ 101