Invacare 2013 Annual Report Download - page 118

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INVACARE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-44
Net sales by product, are as follows (in thousands):
2013 2012 2011
North America/HME
Lifestyle Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 268,041 $ 288,443 $ 295,342
Mobility and Seating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,650 257,886 284,633
Respiratory Therapy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178,157 134,892 153,468
Other(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,246 11,436 13,339
$ 607,094 $ 692,657 $ 746,782
Institutional Products Group
Continuing Care. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 112,290 $ 126,508 $ 104,911
Europe
Lifestyle Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 303,225 $ 285,707 $ 293,425
Mobility and Seating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,152 204,613 209,732
Respiratory Therapy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,885 42,700 27,866
Other(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,881 13,523 13,514
$ 583,143 $ 546,543 $ 544,537
Asia/Pacific
Mobility and Seating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 26,737 $ 31,410 $ 36,483
Lifestyle Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,023 15,448 20,151
Continuing Care. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,785 2,795 2,825
Respiratory Therapy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,290 700 682
Other(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,997 16,632 26,058
$ 49,832 $ 66,985 $ 86,199
Total Consolidated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,352,359 $ 1,432,693 $ 1,482,429
________________________
(1) Includes various services, including repair services, equipment rentals and external contracting.
No single customer accounted for more than 3.5% of the Company’s sales.
Contingencies
General
In the ordinary course of its business, the Company is a defendant in a number of lawsuits, primarily product liability actions
in which various plaintiffs seek damages for injuries allegedly caused by defective products. All of the product liability lawsuits
that the Company faces in the United States have been referred to the Company's captive insurance company and/or excess insurance
carriers while all non-U.S. lawsuits have been referred to the Company's commercial insurance carriers. All such lawsuits are
generally contested vigorously. The coverage territory of the Company's insurance is worldwide with the exception of those
countries with respect to which, at the time the product is sold for use or at the time a claim is made, the U.S. government has
suspended or prohibited diplomatic or trade relations. The amount recorded for identified contingent liabilities is based on estimates.
Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes
available. Actual costs to be incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating
certain exposures.
As a medical device manufacturer, the Company is subject to extensive government regulation, including numerous laws
directed at preventing fraud and abuse and laws regulating reimbursement under various government programs. The marketing,
invoicing, documenting and other practices of health care suppliers and manufacturers are all subject to government scrutiny. The
Company's facilities are subject to periodic inspection by the FDA. Violations of law or regulations can result in administrative,
civil and criminal penalties and sanctions, including disqualification from Medicare and other reimbursement programs, which
could have a material adverse effect on the Company's business.