Invacare 2007 Annual Report Download - page 100

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Business Segments—Continued
The NA/HME segment sells each of three primary product lines, which includes: standard, rehab and
respiratory products. Invacare Supply Group sells distributed product and the Institutional Products Group sells
health care furnishings and accessory products. Europe and Asia/Pacific sell the same product lines with the
exception of distributed products. Each business segment sells to the home health care, retail and extended care
markets.
The company evaluates performance and allocates resources based on profit or loss from operations before
income taxes for each reportable segment. The accounting policies of each segment are the same as those
described in the summary of significant accounting policies for the company’s consolidated financial statements.
Intersegment sales and transfers are based on the costs to manufacture plus a reasonable profit element.
Therefore, intercompany profit or loss on intersegment sales and transfers is not considered in evaluating
segment performance.
The information by segment is as follows (in thousands):
2007 2006 2005
Revenues from external customers
North America/HME ..................................... $ 668,305 $ 676,326 $ 706,555
Invacare Supply Group ................................... 256,993 228,236 220,908
Institutional Products Group ............................... 89,026 93,455 85,415
Europe ................................................ 498,109 430,427 432,142
Asia/Pacific ............................................ 89,804 69,591 84,712
Consolidated ........................................... $1,602,237 $1,498,035 $1,529,732
Intersegment revenues
North America/HME ..................................... $ 47,698 $ 51,081 $ 46,048
Invacare Supply Group ................................... 265 102 26
Institutional Products Group ............................... 1,151 — 2,305
Europe ................................................ 10,394 12,599 12,019
Asia/Pacific ............................................ 29,793 39,757 36,576
Consolidated ........................................... $ 89,301 $ 103,539 $ 96,974
Depreciation and amortization
North America/HME ..................................... $ 20,109 $ 18,433 $ 18,266
Invacare Supply Group ................................... 375 383 448
Institutional Products Group ............................... 1,818 1,888 1,867
Europe ................................................ 15,904 14,533 15,100
Asia/Pacific ............................................ 5,494 4,645 4,829
All Other(1) ............................................ 17 10 14
Consolidated ........................................... $ 43,717 $ 39,892 $ 40,524
Net interest expense (income)
North America/HME ..................................... $ 24,620 $ 16,530 $ 13,299
Invacare Supply Group ................................... 3,443 3,158 2,447
Institutional Products Group ............................... 4,377 3,852 1,620
Europe ................................................ 8,808 8,398 8,628
Asia/Pacific ............................................ 721 (629) (431)
Consolidated ........................................... $ 41,969 $ 31,309 $ 25,563
FS-36