Invacare 2006 Annual Report Download - page 47

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CONTRACTUAL OBLIGATIONS
Total Less than 1 year 1-3 years 3-5 years More than 5 years
Payments due by period
(In thousands)
Long-term debt obligations
Senior Notes ................ $431,167 $ 68,514 $133,854 $ 39,208 $189,591
Revolving credit agreements . . . . . 184,147 8,772 17,544 157,831 —
Other notes ................. 71,750 71,750 — — —
Operating lease obligations ....... 43,589 17,448 17,560 5,475 3,106
Capital lease obligations ......... 18,675 1,876 3,362 2,812 10,625
Purchase obligations (primarily
computer systems contracts) . . . . . 542 500 42 — —
Other long-term obligations
Product liability .............. 22,631 3,296 10,067 3,464 5,804
SERP...................... 33,676 424 1,752 1,752 29,748
Other, principally deferred
compensation .............. 13,366 364 755 635 11,612
Total ........................ $819,543 $172,944 $184,936 $211,177 $250,486
The long-term debt obligation payments shown above are as of December 31, 2006. However, as a result of the
Refinancing that was completed on February 12, 2007, the long-term debt obligations are estimated to be as
follows:
Total Less than 1 year 1-3 years 3-5 years More than 5 years
Payments due by period
(In thousands)
Long-term debt obligations
Credit Facility .......... $363,507 $19,158 $42,790 $42,790 $258,769
93⁄4% Senior Notes due
2015 ............... 311,622 15,052 34,125 34,125 228,320
4.125% Convertible Senior
Subordinated
Debentures due 2027 . . . $246,416 $ 4,913 $11,138 $11,138 $219,227
DIVIDEND POLICY
It is the company’s policy to pay a nominal dividend in order for its stock to be more attractive to a broader
range of investors. The current annual dividend rate remains at $0.05 per Common Share and $0.045 per Class B
Common Share. It is not anticipated that this will change materially as the company continues to have available
significant growth opportunities through internal development and acquisitions. For 2006, dividends of $0.05 per
Common Share and $0.045 per Class B Common Share were declared and paid.
CRITICAL ACCOUNTING POLICIES
The Consolidated Financial Statements included in the report include accounts of the company, all majority-
owned subsidiaries and a variable interest entity for which the company is the primary beneficiary. The preparation
of financial statements in conformity with accounting principles generally accepted in the United States requires
management to make estimates and assumptions in certain circumstances that affect amounts reported in the
accompanying Consolidated Financial Statements and related footnotes. In preparing these financial statements,
management has made its best estimates and judgments of certain amounts included in the financial statements,
giving due consideration to materiality. However, application of these accounting policies involves the exercise of
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