Invacare 2012 Annual Report Download - page 65

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Cash flows required by financing activities in 2012 were $29,768,000, compared to cash flows required of
$47,082,000 in 2011. The decrease in cash used was primarily attributable to reduced debt repayment and
purchases of treasury stock in 2011.
During 2012, the company generated free cash flow of $49,094,000 compared to free cash flow of
$80,603,000 in 2011. The decrease is due primarily to a decrease in net earnings. Free cash flow is a non-GAAP
financial measure that is comprised of net cash provided by operating activities, excluding net cash impact
related to restructuring activities, less net purchases of property and equipment, net of proceeds from sales of
property and equipment. Management believes that this financial measure provides meaningful information for
evaluating the overall financial performance of the company and its ability to repay debt or make future
investments (including acquisitions, etc.).
The non-GAAP financial measure is reconciled to the GAAP measure as follows (in thousands):
Twelve Months Ended
December 31,
2012 2011
Net cash provided by operating activities .............................. $ 62,291 $ 99,078
Plus: Net cash impact related to restructuring activities ................... 6,735 3,621
Less: Purchases of property and equipment—net ........................ (19,932) (22,096)
Free Cash Flow .................................................. $ 49,094 $ 80,603
CONTRACTUAL OBLIGATIONS
The company’s contractual obligations as of December 31, 2012 are as follows (in thousands):
Payments due by period
Total
Less than
1 year 1-3 years 3-5 years
More than
5 years
4.125% Convertible Senior Subordinated
Debentures due 2027 ................. $ 21,128 $ 551 $ 1,101 $ 1,101 $ 18,375
Revolving Credit Agreement due 2015 . . . 231,202 9,559 221,643 — —
Operating lease obligations ............ 56,739 21,266 23,340 8,824 3,309
Capital lease obligations ............... 9,158 1,443 2,761 2,738 2,216
Purchase obligations (primarily .........
computer systems contracts) ........... 6,097 4,010 2,087 — —
Product liability ..................... 20,334 3,323 8,198 3,974 4,839
Supplemental Executive Retirement
Plan ............................... 27,851 391 2,068 2,640 22,752
Other, principally deferred
compensation ....................... 11,830 56 280 442 11,052
Total .............................. $ 384,339 $ 40,599 $ 261,478 $ 19,719 $ 62,543
The table does not include any payments related to liabilities recorded for uncertain tax positions as the
company cannot make a reasonably reliable estimate as to any other payments. See Income Taxes in the Notes to
the Consolidated Financial Statements included in this report.
I-59