Invacare 2008 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2008 Invacare annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Long-Term Debt—Continued
value hedge swaps that exchanged fixed rates for floating rates were de-designated as hedges as the associated
debt was to be paid off as part of the company’s refinancing, which was completed in February 2007. In August
2006, $50,000,000 in fair value hedge swaps were also terminated. All losses associated with the terminations of
fair value hedge swaps were amortized over the remaining life of the previously hedged debt using the effective
yield method.
The aggregate minimum maturities of long-term debt for each of the next five years are as follows:
$18,699,000 in 2009, $3,361,000 in 2010, $3,368,000 in 2011, $3,338,000 in 2012, and $3,384,000 in 2013. The
2009 payment amount includes estimated additional mandatory payment of $15,328,000 as required by the
company’s credit facility based upon 2008 excess cash flow as defined in the agreement. Interest paid on
borrowings was $40,547,000, $42,053,000 and $28,723,000 in 2008, 2007 and 2006, respectively.
Other Long-Term Obligations
Other long-term obligations as of December 31, 2008 and 2007 consist of the following (in thousands):
2008 2007
Supplemental Executive Retirement Plan liability ................................. $24,293 $ 33,496
Product liability ............................................................ 19,734 17,580
Deferred income taxes ....................................................... 25,664 28,824
Other, principally deferred compensation ........................................ 19,135 26,146
Total long-term obligations ................................................... $88,826 $106,046
Leases and Commitments
The company leases a portion of its facilities, transportation equipment, data processing equipment and
certain other equipment. These leases have terms from 1 to 20 years and provide for renewal options. Generally,
the company is required to pay taxes and normal expenses of operating the facilities and equipment. As of
December 31, 2008, the company is committed under non-cancelable operating leases, which have initial or
remaining terms in excess of one year and expire on various dates through 2024. Lease expenses were
approximately $23,363,000 in 2008, $22,229,000 in 2007, and $21,302,000 in 2006.
The amount of buildings and equipment capitalized in connection with capital leases was $14,752,000 and
$16,595,000 at December 31, 2008 and 2007, respectively. At December 31, 2008 and 2007, accumulated
amortization was $4,179,000 and $3,789,000, respectively, which is included in depreciation expense.
FS-22