Invacare 2011 Annual Report Download - page 87

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Property and Equipment
Property and equipment as of December 31, 2011 and 2010 consist of the following (in thousands):
2011 2010
Machinery and equipment ....................................... $360,215 $ 332,687
Land, buildings and improvements ................................ 95,737 91,956
Furniture and fixtures ........................................... 14,034 27,775
Leasehold improvements ........................................ 15,750 15,705
485,736 468,123
Less allowance for depreciation ................................... (356,024) (337,360)
$ 129,712 $ 130,763
Acquisitions
In September 2011, the company completed the acquisition of Dynamic Medical Systems (DMS), a
solutions-based service organization with a strong presence in the western United States, for $41,465,000, which
was paid in cash. The acquisition gives the company a national rental footprint, which strategically enhances the
company’s ability to service regional and national long-term care providers. DMS has a clinical solution selling
approach for wound therapies, safe patient handling and other rental applications in institutional settings.
Pursuant to the purchase agreement, the company agreed to pay contingent consideration of up to $8,000,000 if
certain goals were met over the next 24 months, principally earnings projections, for which the company has
recorded a liability amount of $7,300,000 based on the company’s estimate of the probable payout.
In October 2011, the company acquired a developed technology intangible asset and inventory related to a
negative pressure wound therapy product in the United States for $965,000.
In June 2010, Invacare Corporation acquired Centralized Medical Equipment LLC and the majority of the
assets of Specialty Medical Equipment LLC, both Massachusetts limited liability companies, collectively
referred to as Boston Rentals, which rent equipment to skilled nursing and long-term care providers, for
$13,725,000, which was paid in cash.
The results of the acquisitions are included in the Institutional Products Group segment since the date of
acquisition.
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