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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-16
Property and Equipment
Property and equipment as of December 31, 2013 and 2012 consist of the following (in thousands):
2013 2012
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 358,061 $ 356,512
Land, buildings and improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,389 95,047
Furniture and fixtures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,774 13,397
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,931 14,975
477,155 479,931
Less allowance for depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (371,006)(361,700)
$ 106,149 $ 118,231
Acquisitions
In September 2011, the Company completed the acquisition of Dynamic Medical Systems (DMS), a solutions-based service
organization with a strong presence in the western United States, for $41,465,000, which was paid in cash. The acquisition gives
the Company a national rental footprint, which strategically enhances the Company's ability to service regional and national long-
term care providers. DMS has a clinical solution selling approach for wound therapies, safe patient handling and other rental
applications in institutional settings. Pursuant to the purchase agreement, the Company paid $9,000,000 in 2012 for contingent
consideration thus eliminating the liability.
In October 2011, the Company acquired a developed technology intangible asset and inventory related to a negative pressure
wound therapy product in the United States for $965,000. The intangible was determined to be impaired in the fourth quarter of
2013 and was written-off.
The results of the acquisitions are included in the Institutional Products Group (IPG) segment since the date of acquisition.
Goodwill
The carrying amount of goodwill by operating segment is as follows (in thousands):
North
America/
HME
Institutional
Products
Group Europe Asia/
Pacific Consolidated
Balance at January 1, 2011 . . . . . . . . . . . . . . . $ 15,843 $ 21,505 $ 406,515 $ 40,147 $ 484,010
Reclassification . . . . . . . . . . . . . . . . . . . . . . . (7,853) 7,853 — — —
Foreign currency translation adjustments . . . —(538) 14,668 (418) 13,712
Acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . — 23,528 — — 23,528
Impairment charge. . . . . . . . . . . . . . . . . . . . . (7,990) — — (39,729)(47,719)
Balance at December 31, 2011 . . . . . . . . . . . . $ — $ 52,348 $ 421,183 $ — $ 473,531
Foreign currency translation adjustments . . . — 638 (12,969) — (12,331)
Acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . — 1,000 — — 1,000
Balance at December 31, 2012 . . . . . . . . . . . . $ — $ 53,986 $ 408,214 $ — $ 462,200
Foreign currency translation adjustments . . . —(1,402) 17,705 — 16,303
Divestiture . . . . . . . . . . . . . . . . . . . . . . . . . . . —(16,277) — — (16,277)
Balance at December 31, 2013 . . . . . . . . . . . . $ — $ 36,307 $ 425,919 $ — $ 462,226
As a result of the sale of Champion in 2013, goodwill was reduced for the Institutional Product Group segment by $16,277,000.