Invacare 2015 Annual Report Download - page 16

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incurred but not reported claims based upon actuarial valuations at the time such valuations are conducted. Historical claims
experience and other assumptions are taken into consideration to estimate the ultimate reserves. For example, the actuarial analysis
assumes that historical loss experience is an indicator of future experience, that the distribution of exposures by geographic area
and nature of operations for ongoing operations is expected to be very similar to historical operations with no dramatic changes
and that the government indices used to trend losses and exposures are appropriate. Estimates made are adjusted on a regular basis
and can be impacted by actual loss awards and settlements on claims. While actuarial analysis is used to help determine adequate
reserves, the company is responsible for the determination and recording of adequate reserves in accordance with accepted loss
reserving standards and practices.
PRODUCT DEVELOPMENT AND ENGINEERING
In 2015, Invacare introduced select products that improved and renewed its current offerings. The following are some of
Invacare's notable new products introduced in 2015:
• The ROVI® X3 Power Base with Motion Concepts Ultra Low Maxx Power Positioning was launched in North America
and Asia/Pacific available with a full range of Motion Concepts power positioning products. This wheelchair features
center-wheel drive with the narrowest wheelbase in the market and a unique chassis configuration for enhanced stability.
• The new Freedom Designs® P.R.O. CG™ Tilt-in-Space Wheelchair features a lightweight design (just 34 lb. in transport
configuration), compact size (base frame is only 21.75” long), and simple adjustments for enhanced maneuverability.
The Precise Rotational Orientation makes the wheelchair easy to push, tilt, un-tilt, and turn, making it easy to use with
a full range of patient sizes and living environments. The product is available globally.
• Designed with the highest level of skin protection, positioning and adjustability to match unique user needs, the new
Invacare® Matrx® Libra™ Cushion offers a complete range of seat cushion and bolster solutions for balance and stability
while optimizing body function. The Libra Cushion is made from high-resilience foam with Ultra-Fresh™ anti-microbial
and odor protection, featuring a highly flexible inner liner for an extra layer of moisture protection.
• In Europe, the company launched the Invacare® Action® 5 medium-active lightweight foldable wheelchair with two
patents pending. Winner of the prestigious 2015 RED-DOT design award, the Action 5 wheelchair features an innovative
horizontal folding system and a unique stepless adjustable backrest mechanism that allows fine adjustments to be made
by the clinician while the consumer remains seated. Its unique folding mechanism allows the wheelchair to be folded
using one hand instead of two hands, which is typically the case with folding wheelchairs. It is highly configurable, but
it still has the stability and ride of a rigid (non-folding) wheelchair. This product will launch in the United States in 2016
as the Invacare® MyOn™ HC custom manual wheelchair.
• The Küschall® Champion wheelchair model is a new foldable wheelchair that sets the standard for the next generation
at the highest level by offering the driving performance and the stability of a rigid wheelchair with all the advantages of
a foldable one. It includes stiffness and rigidity for unrivaled driving performance, millimeter adjustments, and an
aesthetically sparse frame design.
• The Motion Concepts Ultra Low Maxx power positioning system is designed to bring unparalleled levels of adjustability,
comfort and support to power wheelchair consumers with complex needs. Already established in the North American
rehabilitation market, the Ultra Low Maxx was introduced in Europe on the Invacare power wheelchair models TDX®
SP2, Storm® 4 and Storm® 4 X-plore.
• In Europe, the company launched two economy mattresses - the Invacare® Essential Care and Invacare® Essential Visco
mattresses. Both mattresses offer comfort and reduce contact pressure for healthy skin. The Essential Care mattress
accomplishes this with a castellated surface. The Visco mattress adds a layer of viscoelastic material for further comfort
and pressure distribution. Both mattresses serve needs in the residential healthcare environment.
MANUFACTURING AND SUPPLIERS
The company’s objective is to efficiently deploy assets in its supply network to achieve the best quality, service performance
and lowest total cost. The company achieves this with a combination of value from Invacare facilities, contract manufacturers and
key suppliers.
The company continues to emphasize reducing the cost of its global manufacturing and distribution operations. A culture
deploying current Good Manufacturing Practices (“cGMP”) and Lean Manufacturing principles eliminates waste throughout the
network and seeks ongoing improvements. At its core, the company’s operational focus accommodates both custom-configured
products for specialized clinical situations and the efficient distribution of made-to-stock products.