Invacare 2007 Annual Report Download - page 80

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Acquisitions—Continued
In accordance with EITF Issue No. 95-3, Recognition of Liabilities in Connection with a Purchase Business
Combination, the company previously recorded accruals for severance and exit costs for facility closures and
contract terminations. A progression of the accruals recorded in the purchase price allocation is as follows (in
thousands):
Severance
Exit of
Product Lines
Sales Agency
Terminations
Balance at 1/1/05 ............................................. $ 561 $— $—
Additional accruals ....................................... 4,445 897 612
Payments ............................................... (1,957) — (612)
Balance at 12/31/05 ........................................... 3,049 897 —
Adjustments ............................................. (1,285) (897) —
Payments ............................................... (566) — —
Balance at 12/31/06 ........................................... $1,198 $ — $ —
Adjustments ............................................. (972) — —
Payments ............................................... (226) — —
Balance at 12/31/07 ........................................... $ — $— $—
The adjustments represent reversals to goodwill for accruals not utilized.
Goodwill
The carrying amount of goodwill by operating segment is as follows (in thousands):
North
America / HME
Invacare Supply
Group
Institutional
Products Group Europe Asia/Pacific Consolidated
Balance at January 1,
2006 ............... $331,938 $ — $ — $367,151 $21,784 $ 720,873
Acquisitions ........... — — — — 8,081 8,081
Foreign currency
translation
adjustments ......... 4,366 — — 51,983 1,964 58,313
Purchase accounting
adjustments ......... — — — (2,182) — (2,182)
Re-allocation .......... (41,648) 23,541 18,107 — — —
Impairment charge ...... (294,656) — — — — (294,656)
Balance at December 31,
2006 ............... — 23,541 18,107 416,952 31,829 490,429
Acquisitions ........... 2,822 — — — — 2,822
Foreign currency
translation
adjustments ......... — — 3,318 42,155 5,431 50,904
Purchase accounting
adjustments ......... — — — (972) — (972)
Balance at December 31,
2007 ............... $ 2,822 $23,541 $21,425 $458,135 $37,260 $ 543,183
FS-16