Invacare 2008 Annual Report Download - page 81

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Property and Equipment
Property and equipment as of December 31, 2008 and 2007 consist of the following (in thousands):
2008 2007
Machinery and equipment ....................................... $308,532 $ 308,904
Land, buildings and improvements ................................ 90,410 97,478
Furniture and fixtures ........................................... 25,041 33,204
Leasehold improvements ........................................ 15,720 16,390
439,703 455,976
Less allowance for depreciation ................................... (296,191) (286,600)
$ 143,512 $ 169,376
Acquisitions
In March 2008, Invacare Corporation acquired the assets of Naylor Medical Sales & Rentals, Inc. (Naylor) a
Tennessee corporation specializing in rentals for $2,152,000, which was paid in cash. In October 2008, Invacare
Corporation purchased a billing company operating as Homecare Collection Services (HCS) for $6,268,000.
Both of these acquisitions were made to expand the company’s services business. The company’s results of
operations include the results of Naylor and HCS since their respective dates of acquisition. Pursuant to the HCS
purchase agreement, the company agreed to pay contingent consideration based upon earnings before interest,
taxes and depreciation over the three years subsequent to the acquisition up to a maximum of $3,000,000. When
the contingencies related to both of the acquisitions are settled, any additional consideration paid will increase
the respective purchase price and reported goodwill.
On November 27, 2007, Invacare Corporation acquired RoadRunner Mobility, Inc., a Texas corporation and
a leading repairer of power wheelchairs supporting the equipment service needs of the Medicare beneficiary
through a national network of service centers and service technicians for $5,496,000 in cash. The company’s
results of operations include the results of RoadRunner Mobility, Inc. since the date of the acquisition.
In 2006, Invacare Corporation acquired two businesses, which were individually immaterial and in the
aggregate, at a total cost of $15,296,000, which was paid in cash. The company acquired Home Health
Equipment Pty Ltd, an Australian based company, and leading supplier of medical equipment in South Australia,
providing high quality equipment and service to institutions and individual clients selling the full range of
rehabilitation, mobility and continuing care products. In addition, the company acquired Morris Surgical Pty Ltd,
an Australian based company, and a leading supplier of medical equipment in Queensland, providing high quality
equipment and service to institutions and individual clients selling the full range of rehabilitation, mobility,
continuing care products as well as niche and made to order products.
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