Invacare 2014 Annual Report Download - page 99

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INVACARE CORPORATION AND SUBSIDIAIRIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
FS-29
Reclassifications out of accumulated OCI for the year ended December 31, 2014 and December 31, 2013 were as follows
(in thousands):
Amount reclassified
from OCI Affected Statement of Comprehensive
(Income) Loss line
2014 2013
Defined Benefit Plans
Service and interest costs . . . . . . . . . . . . . . . . . . . . . . . . $ 1,045 $ (927) Selling, General and Administrative
Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) 80 Income Taxes
Total after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,036 $ (847)
Derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency forward contracts hedging sales . . . . . $ 657 $ (432) Net Sales
Foreign currency forward contracts hedging purchases .(995) 703 Cost of Products Sold
Interest rate swaps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 337 Interest Expense
Total before tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (326) 608
Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (78)(10) Income Taxes
Total after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(404) $ 598
Capital Stock
Capital stock activity for 2014, 2013 and 2012 consisted of the following (in thousands of shares):
Common Stock
Shares Class B
Shares Treasury
Shares
January 1, 2012 Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,835 1,085 (3,100)
Exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 — (8)
Restricted stock awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 — (27)
December 31, 2012 Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,952 1,085 (3,135)
Exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 — —
Restricted stock awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 — (23)
December 31, 2013 Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,084 1,085 (3,158)
Exercise of stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 — —
Restricted stock awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 — (29)
December 31, 2014 Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,219 1,085 (3,187)
Stock awards for 77,591, 12,925 and 10,631 shares were canceled in 2014, 2013 and 2012, respectively. In 2014, 2013 and
2012, dividends of $0.05 per Common Share and $0.045 per Class B Common Share were declared and paid, respectively.
Charges Related to Restructuring Activities
The Company's restructuring charges recorded since 2011 were necessitated primarily by continued declines in Medicare
and Medicaid reimbursement by the U.S. government, as well as similar healthcare reimbursement pressures abroad, which
negatively affect the Company's customers (e.g. home health care providers) and continued pricing pressures faced by the Company
as a result of outsourcing by competitors to lower cost locations. In addition, restructuring decisions were also the result of reduced
profitability in the North America/HME and Asia/Pacific segments. While the Company's restructuring efforts have been executed
on a timely basis resulting in operating cost savings, the savings have been more than offset by continued margin decline, principally
as a result of product mix, reduced volumes and regulatory and compliance costs related to quality system improvements which
are unrelated to the restructuring actions. The Company expects any near-term cost savings from restructuring will be offset by
other costs as a result of pressures on the business.