Invacare 2014 Annual Report Download - page 121

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INVACARE CORPORATION AND SUBSIDIAIRIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-51
Supplemental Guarantor Information
Effective February 12, 2007, substantially all of the domestic subsidiaries (the “Guarantor Subsidiaries”) of the Company
became guarantors of the indebtedness of Invacare Corporation under its 4.125% Convertible Senior Subordinated Debentures
due 2027 (the “Debentures”) with an original aggregate principal amount of $135,000,000. The majority of the Company’s
subsidiaries are not guaranteeing the indebtedness of the Debentures (the “Non-Guarantor Subsidiaries”). Each of the Guarantor
Subsidiaries has fully and unconditionally guaranteed, on a joint and several basis, to pay principal, premium and interest related
to the Debentures and each of the Guarantor Subsidiaries are directly or indirectly100%-owned subsidiaries of the Company.
Specifically, the Debentures are guaranteed on an unsecured senior subordinated basis by all of the Company's existing domestic
subsidiaries (other than the Company's captive insurance subsidiary and any receivables subsidiaries) and certain future direct and
indirect 100% owned domestic subsidiaries. All of the guarantors are released and relieved of any liability under such guarantees
upon the satisfaction and discharge of the indenture governing the debentures and the payment in full of the debentures. Additionally,
in the event any subsidiary guarantor no longer guarantees any of the Company's existing or future senior debt incurred in a public
or private U.S. capital markets transaction, such guarantor shall be released and relieved of any liability which it has under the
indenture governing the debentures.
Presented below are the consolidating condensed financial statements of Invacare Corporation (Parent), its combined
Guarantor Subsidiaries and combined Non-Guarantor Subsidiaries with their investments in subsidiaries accounted for using the
equity method. The Company does not believe that separate financial statements of the Guarantor Subsidiaries are material to
investors and accordingly, separate financial statements and other disclosures related to the Guarantor Subsidiaries are not presented.
CONSOLIDATING CONDENSED STATEMENTS OF OPERATIONS
The
Company
(Parent)
Combined
Guarantor
Subsidiaries
Combined
Non-Guarantor
Subsidiaries Eliminations Total
(in thousands)
Year ended December 31, 2014
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 213,072 $ 413,067 $ 740,669 $ (96,645) $ 1,270,163
Cost of products sold . . . . . . . . . . . . . . . . . 192,566 314,562 512,521 (96,874) 922,775
Gross Profit . . . . . . . . . . . . . . . . . . . . 20,506 98,505 228,148 229 347,388
Selling, general and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,904 81,676 182,416 (83) 383,913
Charge related to restructuring activities . . 9,672 (1,326) 2,766 — 11,112
Asset write-downs to intangibles . . . . . . . . — 13,041 — — 13,041
Income (loss) from equity investee . . . . . . 53,536 35,208 280 (89,024) —
Interest expense—net. . . . . . . . . . . . . . . . . 175 2,114 243 — 2,532
Earnings (Loss) from Continuing
Operations Before Income Taxes. . . (55,709) 38,208 43,003 (88,712)(63,210)
Income taxes. . . . . . . . . . . . . . . . . . . . . . . . 361 — 5,189 — 5,550
Net Earnings (Loss) from
Continuing Operations . . . . . . . . . . . (56,070) 38,208 37,814 (88,712)(68,760)
Net Earnings from Discontinued
Operations . . . . . . . . . . . . . . . . . . . . . — 12,690 — — 12,690
Net Earnings (Loss). . . . . . . . . . . . . . (56,070) 50,898 37,814 (88,712)(56,070)
Other Comprehensive Income (Loss),
net of Tax. . . . . . . . . . . . . . . . . . . . . . . . . . (53,537) (5,057)(50,058) 55,115 (53,537)
Comprehensive Income (Loss) . . . . . . . . $ (109,607) $ 45,841 $ (12,244) $ (33,597) $ (109,607)