Invacare 2007 Annual Report Download - page 93

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other Comprehensive Earnings (Loss)—Continued
A net gain of $450,000 in 2007 and net losses of $240,000 and $283,000 were reclassified into earnings
related to derivative instruments designated and qualifying as cash flow hedges in 2007, 2006 and 2005,
respectively.
Charges Related to Restructuring Activities
On July 28, 2005, the company announced multi-year cost reductions and profit improvement actions,
which included: reducing global headcount, outsourcing improvements utilizing the company’s China
manufacturing capability and third parties, shifting substantial resources from product development to
manufacturing cost reduction activities and product rationalization, reducing freight exposure through freight
auctions and changing the freight policy, general expense reductions and exiting four facilities. The restructuring
was necessitated by the continued decline in reimbursement by the U.S. government as well as similar
reimbursement pressures abroad and continued pricing pressures faced by the company as a result of outsourcing
by competitors to lower cost locations.
FS-29