Invacare 2012 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2012 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 152

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The exercise of stock awards in 2012, 2011 and 2010 resulted in cash received by the company totaling $0,
$4,139,000 and $2,912,000 for each period, respectively with no tax benefits for any period. The total fair value
of awards vested during 2012, 2011 and 2010 was $4,398,000, $4,362,000 and $5,261,000, respectively.
As of December 31, 2012, there was $14,021,000 of total unrecognized compensation cost from stock-based
compensation arrangements granted under the plans, which is related to non-vested options and shares, which
includes $4,323,000 related to restricted stock awards. The company expects the compensation expense to be
recognized over a weighted-average period of approximately two years. Prior to the adoption of ASC 718,
Compensation—Stock Compensation, the company presented all tax benefit deductions resulting from the
exercise of stock options as a component of operating cash flows in the Consolidated Statement of Cash Flows.
In accordance with ASC 718, any tax benefits resulting from tax deductions in excess of the compensation
expense recognized for those options is classified as a component of financing cash flows.
Effective July 8, 2005, the company adopted a new Rights Agreement to replace the company’s previous
shareholder rights plan, which expired on July 7, 2005. In order to implement the new Rights Agreement, the
Board of Directors declared a dividend of one Right for each outstanding share of the company’s Common
Shares and Class B Common Shares to shareholders of record at the close of business on July 19, 2005. Each
Right entitles the registered holder to purchase from the company one one-thousandth of a Series A Participating
Serial Preferred Share, without par value, at a Purchase Price of $180.00 in cash, subject to adjustment. The
Rights will not become exercisable until after a person (an “Acquiring “) has acquired, or obtained the right to
acquire, or commences a tender offer to acquire, shares representing 30% or more of the company’s outstanding
voting power, subject to deferral by the Board of Directors. After the Rights become exercisable, under certain
circumstances, the Rights may be exercisable to purchase Common Shares of the company, or common shares of
an acquiring company, at a price equal to the exercise price of the Right divided by 50% of the then current
market price per Common Share or acquiring company common share, as the case may be. The Rights will
expire on July 18, 2015 unless previously redeemed or exchanged by the company. The company may redeem
and terminate the Rights in whole, but not in part, at a price of $0.001 per Right at any time prior to 10 days
following a public announcement that an Acquiring Party has acquired beneficial ownership of shares
representing 30% or more of the company’s outstanding voting power, and in certain other circumstances
described in the Rights Agreement.
FS-30