Invacare 2011 Annual Report Download - page 95

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
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, 2011, 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 $27,298,000 in 2011, $23,094,000 in 2010, and $23,966,000 in 2009.
The amount of buildings and equipment capitalized in connection with capital leases was $14,643,000 and
$14,197,000 at December 31, 2011 and 2010, respectively. At December 31, 2011 and 2010, accumulated
amortization was $5,914,000 and $5,201,000, respectively, which is included in depreciation expense.
Future minimum operating and capital lease commitments, as of December 31, 2011, are as follows (in
thousands):
Year Capital Leases Operating Leases
2012 ............................................................. $ 1,578 $22,711
2013 ............................................................. 1,481 16,585
2014 ............................................................. 1,440 11,291
2015 ............................................................. 1,420 7,611
2016 ............................................................. 1,417 4,403
Thereafter ........................................................ 3,701 6,772
Total future minimum lease payments .................................. 11,037 $69,373
Amounts representing interest ......................................... (2,587)
Present value of minimum lease payments ............................... $ 8,450
Retirement and Benefit Plans
Substantially all full-time salaried and hourly domestic employees are included in the Invacare Retirement
Savings Plan sponsored by the company. The company makes matching cash contributions up to 66.7% of
employees’ contributions up to 3% of compensation. The company also makes quarterly contributions to this
Plan equal to a percentage of qualified wages as determined by resolution of the Compensation and Management
Development Committee of the Board of Directors. In the first and second quarters of 2011, quarterly
contributions were made at 4% of qualified wages. Per resolution of the Compensation and Management
Development Committee of the Board of Directors, effective July 1, 2011, quarterly contributions were reduced
to 1% of qualified wages. The company will continue contributions at 1% for subsequent quarters unless and
until the company determines that a different rate of quarterly contributions shall be made. The company may
make discretionary contributions to the domestic plans based on an annual resolution of the Board of Directors.
Contribution expense for the Invacare Retirement Savings Plan in 2011, 2010 and 2009 was $5,599,000,
$7,153,000, and $6,681,000, respectively.
The company sponsors a Deferred Compensation Plus Plan covering certain employees, which provides for
elective deferrals and the company retirement deferrals so that the total retirement deferrals equal amounts that
would have contributed to the company’s principal retirement plans if it were not for limitations imposed by
income tax regulations.
FS-23