Invacare 2006 Annual Report Download - page 14

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Product liability reserves are recorded for individual claims based upon historical experience, industry
expertise and indications from the third-party actuary. Additional reserves, in excess of the specific individual case
reserves, are provided for incurred but not reported claims based upon third-party actuarial valuations at the time
such valuations are conducted. Historical claims experience and other assumptions are taken into consideration by
the third-party actuary to estimate the ultimate reserves. For example, the actuarial analysis assumes that historical
loss experience is an indicator of future experience, that the distribution of exposures by geographic area and nature
of operations for ongoing operations is expected to be very similar to historical operations with no dramatic changes
and that the government indices used to trend losses and exposures are appropriate. Estimates made are adjusted on
a regular basis and can be impacted by actual loss award settlements on claims. While actuarial analysis is used to
help determine adequate reserves, the company accepts responsibility for the determination and recording of
adequate reserves in accordance with accepted loss reserving standards and practices.
PRODUCT DEVELOPMENT AND ENGINEERING
Invacare is committed to continuously improving its existing product lines in a focused manner. In 2006, new
product development continued to be a focus as part of Invacare’s strategy to gain market share and maintain
competitive advantage. To this end, we introduced over 30 new products and product enhancements. The following
are some of the most significant 2006 product developments:
North America/HME
The TDX
TM
Total Driving eXperience SP, the newest addition to the TDX
TM
line of power wheelchairs,
improves upon all the features of the TDX Series with enhanced performance, superior ride quality, overall
quieter chassis and an elegantly simple design.
The Pronto»M41
TM
power wheelchair, designed to complement the standard versatility of the Pronto»
M51
TM
, is a center-wheel drive power chair that features performance, aesthetics, and serviceability bundled
into a package priced to allow providers to continue to be able to provide these mobility devices to their
consumers.
The Top End»Crossfire
TM
is an ultra-lightweight, made-to-measure titanium rigid chair with a clean,
minimalist open frame design, great looks and simple adjustments — all of which deliver long-term perfor-
mance. It is one of the lightest titanium wheelchairs on the market.
The InTouch
TM
Stabilite
TM
and Flovair
TM
Seat Cushions combine the stability of a foam base with a layer of
air for pressure relief and a layer of fluid for shear reduction. These lightweight and easily configurable
cushions provide maximum comfort for consumers. They also feature patent-pending Invacare»ThinAir
TM
liners that suspend bony prominences while surrounding tissue is supported. This is all accomplished with less
volume, thus significantly reducing the weight of the cushion.
The Invacare Value Line of Standard Products is committed to delivering equipment in the self-care
market that is cost-effective, easy to use and includes the features and benefits that providers, clinicians and
individuals require. Based on the success of the Value Line Rollator introduction in the first quarter of 2006,
Invacare added three new product families to the Line: Ambulatory (Single and Blue-Release
TM
Walkers), Bath
Safety (Tool-less Transfer Benches and Shower Chairs) & Toilet Safety (Clamp-on raised toilet seats and tub
bars). Invacare Value Line products are manufactured by Invacare and/or their third party suppliers with latex
free components.
The Invacare HomeFill
TM
Ready-Rack was introduced as an accessory to the HomeFill
TM
Oxygen System
making in-home set-up faster and easier for the oxygen provider. The Ready-Rack allows the HomeFill System
to sit directly on top of the oxygen concentrator instead of using a HomeFill
TM
table. This provides a more
stable platform for the HomeFill
TM
while eliminating the time required to assemble the table in the home. Also
in 2006, we introduced new coiled tubing for the HomeFill, which offers a more robust design for more
flexibility and durability.
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