Invacare 2008 Annual Report Download - page 104

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Business Segments—Continued
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.
Reclassifications were made to the company’s segment disclosures including reclassification of revenues
and earnings (loss) before income tax amounts for 2007 to be consistent with 2008 presentation. The
reclassification increased sales and earnings before taxes in NA/HME and decreased sales and earnings before
taxes in Institutional Products Group by approximately $1,000,000, respectively.
The information by segment is as follows (in thousands):
2008 2007 2006
Revenues from external customers
North America/HME ..................................... $ 741,502 $ 669,364 $ 676,326
Invacare Supply Group ................................... 265,818 256,993 228,236
Institutional Products Group ............................... 99,662 87,967 93,455
Europe ................................................ 553,845 498,109 430,427
Asia/Pacific ............................................ 94,867 89,804 69,591
Consolidated ........................................... $1,755,694 $1,602,237 $1,498,035
Intersegment revenues
North America/HME ..................................... $ 56,826 $ 47,698 $ 51,081
Invacare Supply Group ................................... 527 265 102
Institutional Products Group ............................... 2,668 1,151 —
Europe ................................................ 12,482 10,394 12,599
Asia/Pacific ............................................ 31,132 29,793 39,757
Consolidated ........................................... $ 103,635 $ 89,301 $ 103,539
Depreciation and amortization
North America/HME ..................................... $ 19,478 $ 20,109 $ 18,433
Invacare Supply Group ................................... 377 375 383
Institutional Products Group ............................... 1,670 1,818 1,888
Europe ................................................ 17,198 15,904 14,533
Asia/Pacific ............................................ 4,987 5,494 4,645
All Other(1) ............................................ 34 17 10
Consolidated ........................................... $ 43,744 $ 43,717 $ 39,892
Net interest expense (income)
North America/HME ..................................... $ 22,240 $ 24,620 $ 16,530
Invacare Supply Group ................................... 3,531 3,443 3,158
Institutional Products Group ............................... 3,865 4,377 3,852
Europe ................................................ 6,027 8,808 8,398
Asia/Pacific ............................................ 525 721 (629)
Consolidated ........................................... $ 36,188 $ 41,969 $ 31,309
FS-38