10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 10-K

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ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2015

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 1-15103

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INVACARE CORPORATION

(Exact name of Registrant as specified in its charter)

Ohio	95-2680965
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

One Invacare Way, P.O. Box 4028, Elyria, Ohio 44036

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (440) 329-6000

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Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of exchange on which registered
Common Shares, without par value	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act.    Yes  ¨    No  ý

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  ý

Indicate by check mark whether the Registrant (1) has filed all reports to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to the filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such short period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section229.405) is not contained herein, and will not be contained, to the best of the Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer ¨	Accelerated filer ý
Non-accelerated filer  ¨	Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act).    Yes  ¨    No  ý

As of June 30, 2015, the aggregate market value of the 30,152,070 Common Shares of the Registrant held by non-affiliates was $652,189,274 and the aggregate market value of the 380,835 Class B Common Shares of the Registrant held by non-affiliates was $8,237,461. While the Class B Common Shares are not listed for public trading on any exchange or market system, shares of that class are convertible into Common Shares at any time on a share-for-share basis. The market values indicated were calculated based upon the last sale price of the Common Shares as reported by The New York Stock Exchange on June 30, 2015, which was $21.63. For purposes of this information, the 1,231,149 Common Shares and 703,912 Class B Common Shares which were held by Executive Officers and Directors of the Registrant were deemed to be the Common Shares and Class B Common Shares held by affiliates.

As of March 1, 2016, 31,834,488 Common Shares and 733,309 Class B Common Shares were outstanding.

Documents Incorporated By Reference

Portions of the Registrant’s definitive Proxy Statement to be filed in connection with its 2016 Annual Meeting of Shareholders are incorporated by reference into Part III (Items 10, 11, 12, 13 and 14) of this report.

Except as otherwise stated, the information contained in this Annual Report on Form 10-K is as of December 31, 2015.

INVACARE CORPORATION

2015 ANNUAL REPORT ON FORM 10-K CONTENTS

Item		Page
PART I:
1	Business	I-3
1A.	Risk Factors	I-16
1B.	Unresolved Staff Comments	I-28
2	Properties	I-29
3	Legal Proceedings	I-31
4	Mine Safety Disclosures	I-33
	Executive Officers of the Registrant	I-33
PART II:
5	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	I-35
6	Selected Financial Data	I-37
7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	I-40
7A.	Quantitative and Qualitative Disclosures About Market Risk	I-56
8	Financial Statements and Supplementary Data	I-57
9	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	I-57
9A.	Controls and Procedures	I-57
9B.	Other Information	I-58
PART III:
10	Directors and Executive Officers of the Registrant	I-59
11	Executive Compensation	I-59
12	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters	I-59
13	Certain Relationships and Related Transactions	I-59
14	Principal Accounting Fees and Services	I-59
PART IV:
15	Exhibits and Financial Statement Schedules	I-60
Signatures		I-61

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PART I

Item 1.        Business.

GENERAL

Invacare Corporation is a leading manufacturer and distributor in its markets for medical equipment used in non-acute care settings. At its core, the company designs, manufactures and distributes medical devices that help people to move, breathe, rest and with essential hygiene. The company provides medical device solutions for congenital (e.g., cerebral palsy, muscular dystrophy, spina bifida), acquired (e.g., stroke, spinal cord injury, traumatic brain injury, post-acute recovery, pressure ulcers) and degenerative (e.g., ALS, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly, bariatric) ailments. The company revises its product lines to meet changing market demands and currently offers numerous product lines. The company sells its products principally to home medical equipment providers with retail and e-commerce channels, residential living operators, distributors and government health services in the United States, Europe, Canada, New Zealand, Australia and Asia. Invacare’s products are sold through its worldwide distribution network by its sales force, telesales associates and independent manufacturers’ representatives and distributors. In most markets, the company does not work directly with patients or receive reimbursement from healthcare payors.

Invacare is committed to design and deliver the best clinical value in medical products, which promote recovery and active lifestyles for people requiring home and other non-acute care. Yes, You Can.^® continues to be the company's global tagline as it is indicative of the "can do" attitude of many of the people who use the company's products. In everything it does, the company strives to leave its stakeholders with its brand promise - Making Life's Experiences Possible^™.

The company is a corporation organized under the laws of the State of Ohio in 1971. When the company was acquired in December 1979 by a small group of investors, it had $19.5 million in net sales and a limited product line of lifestyle wheelchairs and patient aids. Invacare's net sales in 2015 were approximately $1.1 billion thus yielding a 13% compound average annual sales growth rate since 1979. Based upon the company’s distribution channels, breadth of product line and net sales, Invacare is a leading company in many of the following major, non-acute, medical equipment categories: custom power and manual wheelchairs, homecare bed systems and home respiratory therapy.

The company’s executive offices are located at One Invacare Way, Elyria, Ohio, 44035 and its telephone number is (440) 329-6000. In this report, “Invacare” and the “company” refer to Invacare Corporation and, unless the context otherwise indicates, its consolidated subsidiaries.

THE HOME MEDICAL EQUIPMENT INDUSTRY

The home medical equipment (HME) market includes home health care products, physical rehabilitation products and other non-disposable products used for therapy and the long-term care of patients. As pressure on healthcare spending continues to escalate around the world, the company believes that increased delivery of care outside acute settings will be a significant part of the healthcare reform. In addition, technological advances have made medical equipment increasingly capable for use outside acute care settings. Current hospital procedures often allow for earlier patient discharge, thereby lengthening recuperation periods outside of the traditional institutional setting. Payors and providers are looking for ways to reduce spending in the most costly settings, and reduce patient exposure that can lead to co-morbidities. These incentives are accelerating the discharge of patients earlier or to recover in facilities with more cost-effective capabilities. Patients often prefer treatment in less institutional settings and are migrating to out-patient and ambulatory care centers.

A report from the United Nations, World Population Ageing 2013, states that the number of people age 60 years and older will more than double from 841 million people in 2013 to more than 2 billion in 2050. Despite getting older or having disabilities, people have increasing expectations for levels of activity and community participation throughout their lives. People around the world are increasingly unwilling to retire to a sedentary lifestyle and be left out of the world around them. The company provides solutions that allow people with congenital, acquired or degenerative conditions to engage with the world around them and live more fully.

With the costs of healthcare continuing to increase, the company believes that the interests of patients and healthcare providers are converging. This convergence will result in optimized care being performed in the most appropriate setting at a lower cost. Invacare believes that patients prefer care in less institutional settings, which can lead to better clinical outcomes and be more cost-effective.As payors become more judicious in their spending on healthcare, the company believes companies that provide better care or demonstrate better clinical outcomes will have an advantage. With its diverse product portfolio, clinical solutions, global scale and focus on the non-acute care setting, the company believes it is well positioned to serve this growing market.

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North America Market

North America's population is growing and significantly aging. By 2025, 18.1% of the U.S. population will be age 65 and older as noted in a February 2011 New York Times article. While institutional care likely will remain an important part of the North American healthcare system, the company believes it is not the best and most cost-effective environment of care for many patients, particularly those with chronic medical conditions. Medicare-aged patients with chronic illnesses are placing unprecedented pressure on the current financial stability and sustainability of the Medicare program. This is resulting in a shift from acute care to lower costs of care settings, including long-term acute care facilities, skilled nursing facilities and the home. According to 2013 data from the Centers for Medicare and Medicaid Services (CMS), home healthcare spending has been rising at a 7% compound annual growth rate (CAGR) from 2000 through 2013, and CMS projects the effects of shifts of care will continue to drive more value through this channel of CAGR of over 6% at least through the next seven years. Initiatives by the United States government, such as Accountable Care Organizations, can align incentives for healthcare providers to partner closely across all medical specialties and settings and have the potential to significantly alter the trajectory of rising healthcare costs. The company primarily addresses this marketing through four channels: home healthcare providers, rehabilitation providers, long-term care facilities and government agencies.

The Canadian health care system is a publicly funded model that provides coverage to all citizens. The provinces and territories administer and deliver most of Canada's health care services but all provincial and territorial health insurance plans are expected to meet the national principles set out under the Canada Health Act. The objective of the Act is to provide consumer-centered support and funding to residents who have long-term physical disabilities and to provide access to personalized assistive devices appropriate for the individual’s basic needs. Each provincial and territorial health insurance plan differs in terms of the reimbursement policies and product specifications and this allows health services to be tailored to the particular needs of their residents.

Europe Market

While each country in Europe has distinct characteristics, many of the factors driving demand and reduced reimbursement in the regions are consistent with North America: aging of the population, growing number of patients with chronic illnesses, a strong preference to deliver healthcare at home, desire to use technology to reduce expensive clinical or nursing labor as well as technological trends. Variations in product specifications, regulatory approval processes, distribution requirements and reimbursement policies require the company to tailor its approach to each local market. Therefore a core strategy is to effectively penetrate these markets with global product platforms that are localized with country-specific adjustments as necessary. This is especially the case for power wheelchairs, manual wheelchairs, and respiratory products. In all European countries, customers make product selections based upon quality, product specification alignment with local reimbursement requirements, and excellent customer care.

Asia/Pacific Market

The company's Asia/Pacific segment is comprised of revenues from products sold into Australia, New Zealand, China, Japan, Korea and South East Asia. Invacare's Asia/Pacific businesses sell through six distribution channels. Mobility and seating products are sold via a dealer network with almost all sales directly government-funded. Homecare products are sold via a dealer network that sells products to the consumer market. Long-term care products are sold via a dealer network and directly to care facilities. The company operates a rental business in New Zealand supporting the three largest District Health Boards (DHB’s) in New Zealand’s North Island, comprising approximately 60% of the New Zealand population. Asia export sales are sold via distributors and agents based in Japan, Korea, India and South East Asia. Invacare China sells almost exclusively homecare products through retail channels via a distributor and dealer network focused in Shanghai, Beijing and Guangzhou.     

Reimbursement

In most markets, the company does not sell products directly to the patient, nor does it receive reimbursement from healthcare payors. In some cases, the company sells directly to a government payor. For example, in the United States the company works directly with the Veterans Administration. In the United Kingdom, the company works directly with the National Health Service (NHS) and similarly in Scandinavian countries. In most cases, the company’s customers work directly with consumers to determine their medical need and then purchase products directly from the company. The customer may seek reimbursement from a private or government payor on behalf of the consumer, as appropriate. As a result, the company's products are affected by government regulation and reimbursement policies in virtually every country in which it operates. Reimbursement guidelines in the home health care industry have a substantial impact on the nature and type of equipment an end-user can obtain and, thus, affect the product mix, pricing and payment patterns of the company’s customers who are typically medical equipment providers. In the European market, many products are no longer being reimbursed and are migrating into consumer / retail channels, including

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scooters, walking aids and several hygiene (bathroom) products. The company believes its strong market position and technical expertise will allow it to respond to ongoing reimbursement changes. However, the issues described above will likely continue to have an adverse impact on the pricing of the company’s products.

PRODUCT CATEGORIES

The company manufactures and distributes products in three key product categories:

Mobility and Seating Products

• Power Wheelchairs. Invacare designs, manufactures and distributes a complete line of power wheelchairs for individuals who require independent powered mobility. The range includes products that can be significantly customized to meet an individual’s specific needs, as well as products that are inherently versatile and meet a broad range of individual requirements. Center-wheel drive power wheelchair lines are marketed under the Invacare^® TDX^® brand name. The TDX line of power wheelchairs offers a combination of power, stability and maneuverability. Power tilt and recline seating systems are offered as well. Both the TDX^® and Pronto^® series of power wheelchairs with SureStep^® stability feature center-wheel drive performance. The company also has front- and rear-wheel drive power wheelchair technology, most notably the Storm Series^® rear-wheel drive series. The company has several subsidiaries that specialize in complex rehabilitation technology. For example, Adaptive Switch Labs (ASL) manufactures alternative electronic control systems, such as enabling control via sip/puff or head position inputs for consumers with limited dexterity. Motion Concepts has top-of-the line powered seating and positioning technology. The company continues to lead this market with unique intellectual property in wheelchair suspension, alternative controls and electronics.

• Custom Manual Wheelchairs. Invacare designs, manufactures and markets a range of custom manual wheelchairs and recreational products for everyday use, outdoor recreation, and casual and competitive sports. These lightweight devices are marketed under the Invacare^® and Invacare^® Top End^®brand names. The company’s Motion Concepts subsidiary also has an all-terrain custom manual wheelchair with specialized features to endure more rugged terrain. In Europe, the company has a premiere line of custom manual wheelchairs designed and manufactured by the Küschall brand based in Switzerland. These custom manual wheelchairs provide mobility for people with moderate to severe disabilities in their everyday activities as well as for use in various sports such as basketball, racing and tennis. The company’s competitive advantage includes custom manual wheelchairs with the ability to collapse to fit in small spaces for ease of transportability, and the use of strong lightweight materials for durability and ease of use by the consumer.

• Seating and Positioning Products. Invacare manufactures and markets seat cushions, back supports and accessories under three series. The Invacare^® Seating & Positioning series provides simple seating solutions. The Invacare^® Matrx^® Series offers versatile modular seating. The company's PinDot^® series provides seating and positioning cushions based on custom molds of individuals with unique anatomy. This high-level of customization is highly specialized in the market, and is sought by therapists who need solutions for their most complex clinical situations.

Lifestyle Products

• Manual Wheelchairs. Invacare designs, manufactures and distributes a complete line of manual wheelchairs. The company's manual wheelchairs are sold for use in the home, institutional settings, public places, and outdoors. Consumers include people who are chronically or temporarily disabled and require basic mobility performance with little or no frame modification. Examples of the company’s manual wheelchair lines, which are marketed under the Invacare^® brand name, include the 9000 and Tracer^® wheelchairs. These wheelchairs are designed to accommodate the diverse capabilities and unique needs of the individual.

• Personal Care. Invacare is principally a distributor of a full line of personal care products, including ambulatory aids such as crutches, canes, rollators, walkers, knee walkers and wheeled walkers. Also available are bathing safety aids such as tub transfer benches, shower chairs and grab bars, as well as patient care products such as commodes and other toileting aids.

• Homecare Beds. Invacare manufactures and distributes a wide variety of manual, semi-electric and fully-electric beds for home use under the Invacare^® brand name. Homecare bed accessories include bedside rails, mattresses, overbed tables and trapeze bars. Also available are bariatric beds and accompanying accessories to serve the special needs of bariatric patients. The company’s bed systems introduced the split-spring bed design, which is easier for HME providers to deliver, assemble and clean. Invacare’s beds also feature patented universal bed-ends, where the headboard and footboard may be used interchangeably. This enables customers to more efficiently deploy their inventory.

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• Pressure Relieving Sleep Surfaces.  Invacare manufactures and distributes a complete line of therapeutic pressure relieving overlays and mattress replacement systems for the prevention and treatment of pressure ulcers. The Invacare^® Softform and microAIR^® brand names feature a broad range of pressure relieving foam mattresses or powered mattress replacements with alternating pressure, low-air-loss or rotational mattresses, which redistribute weight and assist with moisture management. These mattresses are designed to provide comfort, support and relief to those patients who are immobile or have limited mobility; who may have fragile skin or be susceptible to skin breakdown; and who spend long periods in bed.

• Patient Transport. Invacare manufactures and distributes products needed to assist in transferring individuals from surface to surface (e.g., bed to chair) or transporting from room to room. Designed for use in the home or institutional settings, these products include patient lifts and slings.

Respiratory Therapy Products

The company designs and manufactures products that concentrate oxygen for consumers who need supplemental oxygen for breathing. Invacare^® oxygen products meet a wide variety of needs, including stationary systems for use while at home and portable systems for mobile use. Historically, oxygen therapy was provided by delivery of large flasks of liquid oxygen or the routine delivery of compressed oxygen to patients. Invacare’s newer modalities of oxygen supply replace more costly and constraining delivery-based forms of care.

• Stationary Oxygen Concentrators. Invacare oxygen concentrators are manufactured under the Perfecto2^™ and Platinum^™ brand names and are available in five- and ten-liter models. All Invacare stationary concentrators are designed to provide patients with durable equipment that reliably concentrates oxygen either in the home or a healthcare setting. Stationary oxygen concentrators are typically used by people needing nocturnal oxygen, or those who have advanced COPD and are unable to leave their homes.

• Non-Delivery Oxygen Technology.Industry trends continue to displace modes of oxygen therapy that involve delivery, which is more costly to provide and less convenient for patients who need to coordinate the exchange of oxygen containers. The Invacare^® HomeFill^® Oxygen System is a solution that forms the basis for a non-delivery model and allows oxygen patients to fill their own high-pressure cylinders from an oxygen concentrator within the home and therefore have very convenient portable sources of supply. Published industry data suggests a large portion of the costs associated with home oxygen therapy are directly associated with delivery-related activities required to meet the ambulatory oxygen therapy needs of patients. Technology, such as the HomeFill system, allows home medical equipment providers to virtually eliminate time-consuming and costly service calls associated with cylinder and/or liquid oxygen deliveries while at the same time enhancing patient care. In addition, patients are free to concentrate oxygen in portable tanks at their convenience.

Rounding out Invacare’s non-delivery respiratory offerings are the Invacare^® XPO2^® portable oxygen concentrator and the Invacare^® SOLO2^® portable oxygen concentrator available in Europe, both of which have been approved by the U.S. Federal Aviation Administration (FAA) for use on board commercial flights. The XPO2 portable concentrator has pulse settings from 1-5 to help meet the varying needs of those with respiratory ailments. It features Invacare^® Sensi-Pulse^™ Technology that customizes the size of each bolus of oxygen to meet patient demand. The SOLO2 portable concentrator offers continuous flow oxygen up to three liters per minute or pulse dose oxygen delivery and is portable and easy to operate.

GEOGRAPHIC SEGMENTS

Europe

The company’s European operations operate as a “common market” with sales throughout Europe. The European segment is integrated with North America and other global subsidiaries for new product development and shares additional corporate resources. The company manufactures power wheelchair products at Invacare Porta Westfalica, Germany, and Alber GmbH in Germany. The company produces power add-ons from Alber GmbH in Germany. Manual wheelchair products are manufactured at Kuschall AG in Switzerland, Invacare Rea AB in Sweden, and Invacare Fondettes, France. In addition to manual wheelchairs, Invacare Rea AB in Sweden manufactures institutional beds primarily for the Nordic market. The company's facility in Portugal assembles beds, mainly for the Southern European markets, and patient lifts for the whole of Europe. Personal care products are manufactured at Aquatec GmbH in Germany. Invacare UK Ltd. manufactures therapeutic support surfaces, and seating and positioning products. It also receives imported seating and positioning products from Invacare’s Motion Concepts subsidiary in Canada. Oxygen products, such as concentrators and Invacare^® HomeFill^® oxygen systems, are imported from Invacare U.S. or

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China operations. The European segment comprised 47.0%, 48.1% and 43.7% of the net sales from continuing operations in 2015, 2014 and 2013, respectively.

North America

North America includes the following segments in the United States and Canada: North America/Home Medical Equipment (North America/HME) and Institutional Products Group (IPG).

• North America/Home Medical Equipment (North America/HME) - This segment primarily includes: mobility and seating, lifestyle and respiratory therapy product lines as discussed above. Products are sold through home healthcare providers, rehabilitation providers and to government provider agencies like the Veterans Administration. This segment comprised 41.5%, 40.0% and 44.2% of the net sales from continuing operations in 2015, 2014 and 2013, respectively.

• Institutional Products Group (IPG)- Invacare, operating as Invacare Continuing Care and Invacare Continuing Care Canada, sells and distributes healthcare furnishings including long-term care beds, case goods, safe patient handling equipment, and certain other home medical equipment and accessory products for long-term care customers. This segment also provides interior design services for nursing homes and assisted living facilities involved in renovation and new construction. IPG also included Dynamic Medical System, LLC, and Invacare Outcomes Management, LLC (collectively "the rentals businesses") which were divested on July 2, 2015. This segment comprised 7.6%, 8.1% and 8.4% of net sales from continuing operations in 2015, 2014 and 2013, respectively.

Asia/Pacific

The company’s Asia/Pacific operations consist of Invacare Australia, Invacare New Zealand and Dynamic Controls. The company distributes a range of home medical equipment including mobility and seating, lifestyle and respiratory therapy products to homecare and long-term care markets in Australia and New Zealand. Dynamic Controls is a manufacturer of electronic operating components used in power wheelchairs, scooters, respiratory and other products used in Invacare products and in products sold by other companies. This segment comprised 3.9%, 3.8% and 3.7% of the net sales from continuing operations in 2015, 2014 and 2013, respectively.

Discontinued Operations

Invacare distributed numerous lines of branded medical supplies for ostomy, incontinence, diabetic, enteral, wound care and urology products, as well as home medical equipment, including lifestyle products through Invacare Supply Group, Inc. (ISG), which was divested on January 18, 2013. Invacare manufactured and sold medical recliners for dialysis clinics through its Champion Manufacturing, Inc. (Champion) subsidiary that was divested on August 6, 2013. Invacare also manufactured and sold stationary standing assistive devices for use in patient rehabilitation through its Altimate Medical, Inc., subsidiary that was divested on August 29, 2014. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Discontinued Operations.

Divested Operations

Invacare divested the rentals businesses on July 2, 2015, which were included in the IPG segment. Prior to the disposition of these rentals businesses, IPG had rented long-term care medical equipment and accessory products through these rentals businesses. The company determined that the sale of the rentals businesses did not meet the criteria for classification as a discontinued operation.

For financial information regarding reportable segments, including revenues from external customers, products, segment profitability, assets and other information by segments, see Business Segments in the Notes to the Consolidated Financial Statements of this Annual Report on Form 10-K.

WARRANTY

Generally, the company’s products are covered by warranties against defects in material and workmanship from the date of sale to the customer for various periods depending on the product. Certain components carry a lifetime warranty.

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COMPETITION

North America and Asia/Pacific

The home medical equipment market is highly competitive and Invacare products face significant competition from other well-established manufacturers and distributors. Various competitors, from time to time, have instituted price-cutting programs in an effort to gain market share and may do so again in the future. In addition, as reimbursement pressures persist in the U.S. market, some customers are beginning to directly source select lifestyle products to secure a low-cost advantage. The company believes that its success in increasing market share is dependent on providing value to the customer based on the quality, performance, durability, and clinical benefits of the company's products, the technical expertise of the sales force, the effectiveness of the company's distribution system, the strength of the dealer and distributor network and the availability of prompt and reliable service for its products.

Europe

As a result of the different reimbursement specifications per country and varied competitive distribution practices across Europe, the principal competition varies from one country to another. In 2015, some consolidation resulted in country-specific or limited regional competitors becoming regional affiliates of global competitors. In the areas of beds, hygiene, walking aids and safe patient handling, country-specific competitors remain strong and more localized.

MARKETING AND DISTRIBUTION

North America

In the United States, Invacare products are marketed primarily to HME providers, rehabilitation equipment providers, long-term care providers and government agencies, who in turn sell or rent these products directly to consumers. The company also employs a “pull-through” marketing strategy to medical professionals, including physical and occupational therapists, who refer their patients to HME providers to obtain specific types of home medical equipment. In 2015, the North American sales force began to shift from a generalist sales force to one more focused on clinically complex products, including complex rehabilitation technology, therapeutic support surfaces, safe patient handling, non-delivery oxygen technology and bariatric products.

Invacare’s North America/HME sales and marketing organization consists primarily of a sales force which markets and sells both Invacare^® branded products and products from Invacare subsidiaries, such as Motion Concepts, Freedom Designs, and Adaptive Switch Labs, to customers within homecare, long-term care, rehabilitation and government channels. Invacare’s HME outside sales force functions as Territory Business Managers (TBM), who handle clinically complex product and service needs for an account. The TBM also provides clinical training and product in-services to providers. TBMs are supported by the Inside Sales Department that provides support on the company's broad product portfolio and increased sales coverage of smaller accounts. In Canada, products are sold by a sales force and distributed through regional distribution centers to health care providers throughout Canada.

Products from the IPG segment include beds and resident room furnishings, safe patient handling equipment, bathing systems, and therapeutic support surfaces. The IPG sales and marketing organizations consist of outside sales representatives and independent representative agencies supported by a marketing group that generates awareness and demand at skilled nursing facilities for Invacare products and services. IPG also provides interior design services and products for nursing homes and assisted living facilities involved with renovation and new construction.

The company contributes extensively to editorial coverage in trade publications concerning the products the company manufactures. Company representatives attend numerous trade shows and conferences on a national and regional basis in which Invacare products are displayed to providers, health care professionals, managed care professionals and consumers. The company also drives awareness of its brand through its website, as well as online communities targeted toward the people who use its products.

The company raises consumer awareness of its products through its sponsorship of a variety of wheelchair sporting events and support of various philanthropic causes benefiting the consumers of the company's products. The company continued its sponsorships of individual wheelchair athletes and teams, including several of the top-ranked male and female racers, hand cyclists and wheelchair tennis players in the world. In 2015, the company fit and provided highly customized sports devices to elite global athletes who were competing to qualify for their respective national teams in anticipation of the 2016 Paralympic Games. In addition, the company continued its support of disabled veterans through its sponsorship of the 36th National Veterans Wheelchair Games, the largest annual wheelchair sporting event in the world. The games bring a competitive and recreational sports experience

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to military service veterans who use wheelchairs for their mobility needs due to spinal cord injury, neurological conditions or amputation.

Europe

The company’s European operations primarily conduct manufacturing, marketing and distribution functions in Western Europe and coordinate export sales activities through local distributors elsewhere in the world. The company has a sales force and, where appropriate, distribution centers in the United Kingdom, France, Germany, Belgium, Portugal, Spain, Italy, Denmark, Sweden, Switzerland, Austria, Norway and the Netherlands, and sells through distributors elsewhere in Europe, Russia, the Middle East and Africa. In markets where the company has its own sales force, product sales are typically made through dealers of medical equipment and, in certain markets, directly to government agencies. In 2015, as in previous years, pricing comparison across borders along with customer consolidation are driving the development of pan European pricing policies and control. The company has centralized some of its distribution to a European Distribution Center in France, which optimizes logistics costs and increases service levels to customers.

Asia/Pacific

The company's Asia/Pacific segment is comprised of revenues from selling electronic controls systems to medical equipment OEMs from its Dynamic Controls business and revenue from trade sales and rentals to customers in Australia, New Zealand, China, Japan, Korea and South East Asia. Invacare Asia/Pacific businesses sell through six distribution channels:

• Mobility and seating products are sold via a dealer network with almost all sales directly government funded;

• Homecare products are sold via a dealer network that sells products to the consumer market;

• Long-term care products are sold via a dealer network and directly to aged care facilities;

• Invacare operates a rentals business in New Zealand supporting the three largest District Health Boards (DHB’s) in New Zealand’s North Island, comprising approximately 60% of the New Zealand population;

• Asia export sales are sold via distributors and agents based in Japan, Korea, India and South East Asia; and

• Invacare China sells primarily homecare products to retail channel customers via third-party distribution network focused in Shanghai, Beijing and Guangzhou.     

Invacare Australia and New Zealand have invested heavily in marketing efforts to increase demand for Invacare products, with customer relationship management, marketing automation, and sales and marketing database tools being introduced to increase market penetration. These tools are expected to be introduced in China during 2016.

Sponsorship efforts are focused around “grassroots” programs aimed at introducing people with disabilities to sports as a pathway to inclusion. In 2016, Invacare New Zealand is “a supporting partner of Paralympics New Zealand” and the “Preferred Equipment Supplier of Paralympics New Zealand.” Invacare also sponsors the "Oz Day 10K" classic wheelchair race on Australia Day. Invacare is a sponsor of the Attitude Trust and is a named sponsor for the Disabled Sports Person of the Year award that is held as part of the Attitude Awards on World Disability Day in New Zealand.

Dynamic Controls, Ltd., the company's subsidiary which produces electronic components for use in power wheelchairs, scooters, respiratory and other products, sells to other Invacare subsidiaries and to external customers in North America, Europe and Asia/Pacific.

PRODUCT LIABILITY COSTS

The company is self-insured in North America for product liability exposures through its captive insurance company, Invatection Insurance Company, which insures annual policy losses up to $10,000,000 per occurrence and $13,000,000 in the aggregate. Invatection’s policy-year runs from September 1 to August 31. The company also has additional layers of external insurance coverage insuring up to $75,000,000 in aggregate losses per policy-year arising from individual claims anywhere in the world that exceed the captive insurance company policy limits or the limits of the company’s per country foreign liability limits, as applicable. There can be no assurance that Invacare’s current insurance levels will continue to be adequate or available at affordable rates.

Product liability reserves are recorded for individual claims based upon historical experience, industry expertise and indications from the third-party actuary. Additional reserves, in excess of the specific individual case reserves, are provided for

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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.

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The company procures raw materials, components and finished goods from a global network. The company utilizes regional and Asian sourcing offices for the identification, development and management of its supply base. Where appropriate, Invacare utilizes suppliers across multiple regions to ensure flexibility, continuity and responsiveness. The company’s network of engineering design centers, product management groups and manufacturing sites work to optimize cost and strategic expertise. The company has regional product management groups translating user needs into product requirements, which are then translated into product designs in engineering centers of excellence and produced in locations that optimize quality, cost, delivery performance and working capital.

North America

The company operates several vertically integrated and complex assembly factories in North America to manufacture its custom powered wheelchairs and seating products (Elyria, OH); manual wheelchairs and patient aids (Reynosa, MX); beds, institutional case goods and respiratory therapy products (Sanford, FL); manual recreational and wheelchair products (Clearwater, FL), passive manual and pediatric wheelchairs (Simi Valley, CA), seating and positioning systems (Toronto, ONT). Products made in North American operations are sold in North America and are shipped as finished goods and as subcomponents to internal and external customers globally. The company is rationalizing its North American distribution network to optimize delivery performance and cost.

Asia/Pacific

Invacare manufactures products that serve regional markets through the company’s wholly-owned factories in Suzhou, Jiangsu Province, China. The Suzhou facilities supply finished goods and subcomponents to internal and external customers in the major geographic regions of the world.

Europe

The company has eight manufacturing/assembly facilities in Europe with capabilities to manufacture patient aid, wheelchair, powered mobility, bath safety, beds, therapeutic support surfaces, and patient transport products. Products manufactured in Europe are used by customers in Europe, Middle East and Africa. In some cases finished goods and components are distributed to internal and external customers globally.

GOVERNMENT REGULATION

The company is affected by regulations that govern the manufacture, distribution, marketing and sale of its products and regulate healthcare reimbursement. These policies differ among and within every country in which the company operates. Changes in regulations, guidelines, procedural precedents and healthcare policy take place frequently and can impact the size, growth potential and profitability of products sold in each market.

In the U.S., healthcare costs have increased at rates in excess of the rate of inflation and as a percentage of GDP for several decades. A number of efforts to control the federal deficit have impacted reimbursement levels for government sponsored healthcare programs. Private insurance companies often adopt changes in federal programs. Reimbursement guidelines in the home healthcare industry have a substantial impact on the nature and type of equipment a consumer can obtain and thus, affect the product mix, pricing and payment patterns of the company’s customers who are the medical equipment providers.

The company has continued its efforts to influence public policies that impact home-based and long-term non-acute healthcare. The company has been actively educating federal and state legislators about the needs of the patient communities it serves and has worked with policy authors to ensure the industry’s healthcare consumer needs are represented. The company believes its efforts have given the company a competitive advantage. Customers and end-users recognize the company’s advocacy efforts and the company has the benefit of remaining apprised of emerging policy direction.

FDA

The United States Food and Drug Administration (the “FDA”) regulates the manufacture and sale of medical devices. Under such regulation, medical devices are classified as Class I, Class II or Class III devices, depending on the level of risk posed to patients, with Class III designating the highest-risk devices. The company’s principal products are designated as Class I or Class II devices. In general, Class I devices must comply with labeling and record-keeping requirements and are subject to other general controls. In addition to general controls, certain Class II devices must comply with product design and manufacturing controls in compliance with the Quality System Regulation (QSR). Domestic and foreign manufacturers of medical devices distributed

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commercially in the U.S. are subject to periodic inspections by the FDA. Furthermore, state, local and foreign governments have adopted regulations relating to the design, manufacture and marketing of health care products.

Consent Decree

In December 2012, the company reached agreement with the FDA on the terms of the consent decree of injunction with respect to the company's Corporate facility and its Taylor Street wheelchair manufacturing facility in Elyria, Ohio. A complaint and consent decree were filed in the U.S. District Court for the Northern District of Ohio, and on December 21, 2012, the Court approved the consent decree and it became effective. The consent decree limits the company's manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility. The decree also initially limited design activities related to wheelchairs and power beds that take place at the impacted Elyria, Ohio facilities. The company is entitled to continue to produce from the Taylor Street manufacturing facility certain medically necessary wheelchairs provided that documentation and record-keeping requirements are followed, as well as ongoing replacement, service and repair of products already in use, under terms delineated in the consent decree. The consent decree specifies the terms under which the company may resume full operations at the impacted facilities. The company must complete third-party expert certification audits at the impacted Elyria facilities, which comprises three distinct reports. These reports must be submitted to, and accepted by, the FDA. During 2013, the company completed the first two of the third-party expert certification audits, and the FDA found the results of both to be acceptable. In these reports, the third-party expert certified that the company's equipment and process validation procedures and its design control systems are compliant with the FDA's QSR. As a result of the FDA's acceptance of the first certification report on May 13, 2013, the Taylor Street facility was able to resume supplying parts and components for the further manufacturing of medical devices at other company facilities. The company's receipt of the FDA's acceptance of the second certification report on July 15, 2013, allowed the company to resume design activities at the impacted facilities related to power wheelchairs and power beds. In February 2016, the independent expert issued the third certification report, which was submitted to the FDA, indicating substantial compliance to the FDA's QSR at the impacted Elyria facilities.

Per the terms of the consent decree, the company must submit its own report to the FDA regarding the actions it has taken to improve its quality systems and its overall compliance status together with its written responses to any observations in the independent expert's certification report and prior FDA inspection observations. Both the independent expert's third certification report as well as the company's own report must be accepted by the FDA before the Agency will reinspect the impacted Elyria facilities. If the FDA finds the company is compliant with the QSR requirements, the FDA will provide written notification that the company is permitted to resume full operations at the impacted facilities. The company cannot predict the acceptance of these reports by the FDA, nor any remaining work that may be needed to meet the FDA's requirements. The FDA has the authority to inspect any FDA registered facility at any time.

After resumption of full operations, the company must undergo five years of audits by a third-party expert to determine whether the facilities are in continuous compliance with FDA regulations and the consent decree. The auditor will inspect the Corporate and Taylor Street facilities’ activities every six months during the first year following the resumption of full operations and then annually for the following four years.

Under the consent decree, the FDA has the authority to order the company to take a wide variety of actions if the FDA finds that the company is not in compliance with the consent decree or FDA regulations, including requiring the company to cease all operations relating to Taylor Street products. The FDA also can order the company to undertake a partial cessation of operations or a recall, issue a safety alert, public health advisory, or press release, or to take any other corrective action the FDA deems necessary with respect to Taylor Street products.

The FDA also has authority under the consent decree to assess liquidated damages of $15,000 per violation per day for any violations of the consent decree, FDA regulations or the federal Food, Drug, and Cosmetic Act. The FDA also may assess liquidated damages for shipments of adulterated or misbranded devices, except as permitted by the consent decree, in the amount of twice the sale price of any such adulterated or misbranded device. The liquidated damages are capped at $7,000,000 for each calendar year. The liquidated damages are in addition to any other remedies otherwise available to the FDA, including civil money penalties.

For additional information regarding the consent decree, please see the following sections of this Annual Report on Form 10-K: Item 1. Business - Government Regulation; Item 1A. Risk Factors; and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook and - Liquidity and Capital Resources.

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Other FDA Matters

In December 2010, the company received a warning letter from the FDA related to quality system processes and procedures at the company's Sanford, Florida facility. In October 2014, the FDA conducted an inspection at the Sanford facility and, at the conclusion, issued four inspection observations on Form 483, three of which related to complaint handling and Corrective And Preventative Actions (CAPA) process and a fourth related to production process controls. The company has filed its response with the FDA and continues to work on addressing the FDA observations. At the time of filing of this Annual Report on Form 10-K, this matter remains pending. See Item 1A. Risk Factors.

In January 2014, the FDA conducted inspections at the company’s manufacturing facility in Suzhou, China and at the company’s electronic components subsidiary in Christchurch, New Zealand, covering quality systems and current Good Manufacturing Practice (cGMP) regulations. In August 2014, the FDA inspected Alber GmbH in Albstadt, Germany. The FDA issued its inspection observations on Form 483 to the company after these inspections, and the company submitted its responses to the agency in a timely manner.

In December 2015, the FDA issued a Form 483 with observations following a 2015 inspection of approximately five months duration at the Corporate and Taylor Street facilities in Elyria, Ohio which included a review of the company’s compliance with terms of the consent decree and the matters covered by the first and second expert certification reports previously accepted in 2013. The company has filed its response to this Form 483 with the FDA and continues to work on addressing the FDA's observations.

From time to time, the company may undertake voluntary recalls or field corrective actions of the company’s products to correct product issues that may arise. These actions are necessary to ensure the company's products adhere to high standards of quality and safety. The company continues to operate these programs to ensure compliance with applicable regulations and actively keeps abreast of proposed regulations, particularly those which could have a material adverse effect on the company.

National Competitive Bidding

With respect to reimbursement in the United States, the Centers for Medicare and Medicaid Services (CMS) is a significant payor and governs healthcare reimbursement for Medicare and Medicaid services. On January 1, 2011, CMS began its National Competitive Bidding (NCB) program in nine metropolitan statistical areas across the country (Round 1) for the purpose of reducing healthcare spending. On July 1, 2013, CMS expanded the program to an additional 91 metropolitan statistical areas (Round 2). These bid programs have resulted in new, lower Medicare payment rates in these 100 areas. CMS rebids these areas at least every three years. In January 2016, CMS began the deployment of NCB rates to the remainder of the Medicare population that had not yet been impacted by the program, primarily to rural areas. CMS has divided the United States into eight regions and is applying the average reimbursement reduction per NCB product category in each region from Round 1 and Round 2 to the rural providers in those eight regions. Fifty percent of the reimbursement reduction became effective in January 2016. The remaining half of the reduction is expected to be applied in July 2016. The company’s exposure to effects of NCB rate reductions and any similar reductions from private payors or state agencies is primarily related to the increased credit risk of its customers whose revenue is based on reimbursement. As reimbursement rates are reduced, the company’s customers will see pressure on the profitability and liquidity of their businesses. The company therefore remains judicious in its extension of credit to its customers and is vigilant about collections efforts.

Although reductions in Medicare payments are not beneficial to the homecare industry, the company believes it can still grow and thrive in this environment. No significant cost-of-living adjustments have been made to reimbursement rates by CMS over the last few years that affect the company’s products, and the company intends to continue its own productivity initiatives. As a result of reimbursement reductions, the company’s customers are increasingly interested in cost-effective clinical solutions for their clients. Some of the company’s solutions are particularly effective in providing clinical benefits to patients and cost-effective healthcare provision for the company’s customer-providers. As an example, the company’s respiratory therapy products can help offset reimbursement reductions by reducing or eliminating the need for routine delivery services to end-users. Delivery costs can be a substantial element of cost for its customers. HomeFill oxygen systems and the company’s oxygen concentrators can provide effective convenient therapy for consumers and cost-effective equipment solutions for providers. The company intends to develop other products that help providers improve profitability.

BACKLOG

The company generally manufactures its products to meet near-term demands by shipping from stock or by building to order based on the specialized nature of certain products. Therefore, the company does not have substantial backlog of orders of any particular product nor does it believe that backlog is a significant factor for its business.

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EMPLOYEES

As of December 31, 2015, the company had approximately 4,700 employees.

FOREIGN OPERATIONS AND EXPORT SALES

The company also markets its products for export to other foreign countries. In 2015, the company's products were sold in over 100 countries. For information relating to net sales, operating income and identifiable assets of the company’s foreign operations, see Business Segments in the Notes to the Consolidated Financial Statements.

AVAILABLE INFORMATION

The company files Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments thereto, as well as proxy statements and other documents with the Securities and Exchange Commission (SEC). The public may read and copy any material that the company files with the SEC at the SEC’s Public Reference Room located at 100 F Street, NE, Washington D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a website, www.sec.gov, which contains all reports, proxy statements and other information filed by the company with the SEC.

Additionally, Invacare’s filings with the SEC are available on or through the company’s website, www.invacare.com, as soon as reasonably practicable after they are filed electronically with, or furnished to, the SEC. Copies of the company’s filings also can be requested, free of charge, by writing to: Shareholder Relations Department, Invacare Corporation, P.O. Box 4028, Elyria, OH 44036-2125. The contents of the company's website is not part of this Annual Report on Form 10-K.

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FORWARD-LOOKING INFORMATION

This Form 10-K contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Terms such as “will,” “should,” “could,” “plan,” “intend,” “expect,” “continue,” “believe” and “anticipate,” as well as similar comments, denote forward-looking statements that are subject to inherent uncertainties that are difficult to predict. Actual results and events may differ significantly from those expressed or anticipated as a result of risks and uncertainties, which include, but are not limited to, the following: compliance costs, limitations on the production and/or distribution of the company's products, inability to bid on or win certain contracts, unabsorbed capacity utilization, including fixed costs and overhead, or other adverse effects of the FDA consent decree of injunction; any circumstances or developments that might delay or adversely impact the FDA's acceptance of the third, most comprehensive expert certification audit or FDA inspection of the company's quality systems at the Elyria, Ohio, facilities impacted by the FDA consent decree, including any possible failure to comply with the consent decree or FDA regulations, requirement to perform additional remediation activities or further resultant delays in receipt of the written notification to resume operations; regulatory proceedings or the company's failure to comply with regulatory requirements or receive regulatory clearance or approval for the company's products or operations in the United States or abroad; adverse effects of regulatory or governmental inspections of company facilities at any time and governmental enforcement actions; product liability or warranty claims; product recalls, including more extensive recall experience than expected; the failure or refusal of customers or healthcare professionals to sign verification of medical necessity (VMN) documentation or other certification forms required by the exceptions to the FDA consent decree; possible adverse effects of being leveraged, including interest rate or event of default risks; exchange rate fluctuations, in light of the relative importance of the company's foreign operations to its overall financial performance; legal actions, including adverse judgments or settlements of litigation or claims in excess of available insurance limits; adverse changes in government and other third-party payor reimbursement levels and practices both in the U.S. and in other countries (such as, for example, more extensive pre-payment reviews and post-payment audits by payors, or the continuing roll out of the Medicare National Competitive Bidding program); impacts of the U.S. Affordable Care Act of 2010 (such as, for example, the impact on the company of the excise tax on certain medical devices, and the company's ability to successfully offset such impact); ineffective cost reduction and restructuring efforts or inability to realize anticipated cost savings or achieve desired efficiencies from such efforts; delays, disruptions or excessive costs incurred in facility closures or consolidations; interest rate or tax rate fluctuations; additional tax expense or additional tax exposures could affect the company's future profitability and cash flow; inability to design, manufacture, distribute and achieve market acceptance of new products with greater functionality or lower costs or new product platforms that deliver the anticipated benefits; consolidation of health care providers; lower cost imports; uncollectible accounts receivable; difficulties in implementing/upgrading Enterprise Resource Planning systems; risks inherent in managing and operating businesses in many different foreign jurisdictions; decreased availability or increased costs of materials which could increase the company's costs of producing or acquiring the company's products, including possible increases in commodity costs or freight costs; heightened vulnerability to a hostile takeover attempt; provisions of Ohio law or in the company's debt agreements, charter documents or other agreements that may prevent or delay a change in control, as well as the risks described from time to time in the company's reports as filed with the Securities and Exchange Commission. Except to the extent required by law, the company does not undertake and specifically declines any obligation to review or update any forward-looking statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments or otherwise.

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Item 1A.    Risk Factors.

The company’s business, operations and financial condition are subject to various risks and uncertainties. One should carefully consider the risks and uncertainties described below, together with all of the other information in this Annual Report on Form 10-K and in the company’s other filings with the SEC, before making any investment decision with respect to the company’s securities. The risks and uncertainties described below may not be the only ones the company faces. Additional risks and uncertainties not presently known by the company or that the company currently deems immaterial may also affect the company’s business. If any of these known or unknown risks or uncertainties actually occur, develop or worsen, the company’s business, financial condition, results of operations and future growth prospects could change substantially.

The company is subject to a consent decree of injunction ("consent decree") with the U.S. Food and Drug Administration (“FDA”), the effects of which have been, and continue to be, costly to the company and could result in continued adverse consequences to the company's business.

The consent decree, which was filed as an exhibit to the company's Form 8-K filed on December 20, 2012, became effective December 21, 2012. The injunction limits the company's manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility in Elyria, Ohio. The decree also temporarily limited design activities related to wheelchairs and power beds that take place at the impacted Elyria, Ohio facilities. However, the company is entitled to continue to produce from the Taylor Street manufacturing facility certain medically necessary wheelchairs provided that documentation and record-keeping requirements are followed, as well as ongoing replacement, service and repair of products already in use, under terms delineated in the consent decree. In addition, the company was able to fulfill purchase orders and quotes that were in the company's order fulfillment system prior to the effective date of the decree. Under the terms of the consent decree, in order to resume full operations at the impacted facilities, the company must successfully complete a third-party expert certification audit and receive written notification from the FDA. The certification audit is comprised of three distinct reports. The first two of the three certification reports were completed and accepted by the FDA during 2013. In February 2016, the third-party expert issued its third certification report indicating substantial compliance with the FDA’s Quality System Regulation (QSR), and the report was submitted to the FDA. Under the terms of the consent decree, the company must submit its own report related to its compliance status and its responses to any observations by the third-party expert or by the FDA from prior inspections. The company will not be able to resume full operations at the Corporate and Taylor Street facilities until the FDA issues written notice that it has found the facilities to be in compliance. Within 30 days of receiving the company’s report, according to the terms of the consent decree, the FDA will begin a comprehensive inspection of the Corporate and Taylor Street facilities.

The company cannot predict the acceptance by the FDA of the third certification report or the company's own report, or any remaining work that may be needed to meet the FDA's requirements, or the timing or potential response of the FDA's inspection and subsequent written notification. Significant delays in the FDA's acceptance of the final third-party expert certification audit, the FDA's inspection or written notification to resume operations, or any need to complete significant additional remediation as a result of the FDA review of the final third-party expert certification audit or the FDA inspection could have a material adverse effect on the company's business, financial condition, liquidity or results of operations.

After resumption of full operations, the company must undergo five years of audits by a third-party expert auditor, who will issue reports to the company and the FDA identifying whether the facilities are operated and administered in continuous compliance with FDA regulations and the consent decree. Under the consent decree, the FDA has the authority to inspect the Corporate and Taylor Street facilities at any time. The FDA also has the authority to order the company to take a wide variety of remedial actions if the FDA finds that the company is not in compliance with the consent decree or FDA regulations. The FDA also has authority under the consent decree to assess liquidated damages for any violations of the consent decree, FDA regulations or the federal Food, Drug and Cosmetic Act. See Item 1. Business -- Government Regulation. Any such failure by the company to comply with the consent decree or FDA regulations, or any need to complete significant remediation as a result of any such audits or inspections, or actions taken by the FDA as a result of any such failure to comply, could have a material adverse effect on the company’s business, financial condition, liquidity or results of operations.

During the pendency of the consent decree negotiations in 2012, and during its effectiveness since December 21, 2012, the company has experienced significant pressures on its net sales and operating results. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. The company expects to continue to experience pressure on net sales and profitability, particularly in the North America/HME and Asia/Pacific segments, until the FDA has accepted the final third-party certification report and the company's own report, and the company has successfully completed the previously described FDA inspection and has received written notification from the FDA that the company may resume full operations. Even after the company receives the FDA notification, it is uncertain as to whether, or how quickly, the company will be able to rebuild net sales and profitability to more typical historical levels, irrespective of market conditions. If the company is unable to obtain FDA

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approval to resume full operations, the company may be required to restructure its business strategy to rebuild profitability, and there can be no assurance that it would be successful in doing so.

The company’s failure to comply with medical device regulatory requirements or receive regulatory clearance or approval for the company’s products or operations in the United States or abroad could adversely affect the company’s business.

The company’s medical devices are subject to extensive regulation in the United States by the FDA, and by similar governmental authorities in the foreign countries where the company does business. The FDA regulates virtually all aspects of a medical device’s development, testing, manufacturing, labeling, promotion, distribution and marketing. In addition, the company is required to file reports with the FDA if the company’s products may have caused, or contributed to, a death or serious injury, or if they malfunction and would be likely to cause, or contribute to, a death or serious injury if the malfunction were to recur. In general, unless an exemption applies, the company’s mobility and respiratory therapy products must receive a pre-market clearance from the FDA before they can be marketed in the United States. The FDA also regulates the export of medical devices to foreign countries. The company cannot be assured that any of the company’s devices, to the extent required, will be cleared by the FDA through the pre-market clearance process or that the FDA will provide export certificates that are necessary to export certain of the company’s products. Export certificates are required for the company to have its products registered for sale in certain foreign countries. In connection with the FDA warning letter received by the company's Sanford, Florida facility in December 2010, as described below, the FDA has refused to provide new export certificates for company products until the matters covered in the warning letter are resolved. Currently, the company cannot obtain new certificates of export for Sanford, Florida facility products until the warning letter has been closed and for Taylor Street facility products until the company has exited the injunctive phase of the consent decree. The inability to obtain export certificates for products produced at its Taylor Street or Sanford facilities has limited the company's ability to support new foreign markets with such products.

Additionally, the company is required to obtain pre-market clearances to market modifications to the company’s existing products or market its existing products for new indications. The FDA requires device manufacturers themselves to make and document a determination as to whether or not a modification requires a new clearance; however, the FDA can review and disagree with a manufacturer’s decision. The company has applied for, and received, a number of pre-market clearances for modifications to marketed devices. The company may not be successful in receiving clearances in the future or the FDA may not agree with the company’s decisions not to seek clearances for any particular device modification. The FDA may require a clearance for any past or future modification or a new indication for the company’s existing products. Such submissions may require the submission of additional data and may be time consuming and costly, and ultimately, may not be cleared by the FDA.

If the FDA requires the company to obtain pre-market clearances for any modification to a previously cleared device, the company may be required to cease manufacturing and marketing the modified device or to recall the modified device until the company obtains FDA clearance, and the company may be subject to significant regulatory fines or penalties. In addition, the FDA may not clear these submissions in a timely manner, if at all. The FDA also may change its policies, adopt additional regulations or revise existing regulations, each of which could prevent or delay pre-market clearance of the company’s devices, or could impact the company’s ability to market a device that was previously cleared. Any of the foregoing could adversely affect the company’s business.

The company’s failure to comply with the regulatory requirements of the FDA and other applicable U.S. regulatory requirements may subject the company to administrative or judicially imposed sanctions. These sanctions include warning letters, civil penalties, criminal penalties, injunctions, consent decrees, product seizure or detention, product recalls and total or partial suspension of production.

As part of its regulatory function, the FDA routinely inspects the sites of medical device companies, and from 2010 through 2015, the FDA inspected certain of the company's facilities. In December 2012, the company and the FDA agreed to a consent decree of injunction affecting the company's Corporate facility and its Taylor Street manufacturing facility in Elyria, Ohio. See the previous Risk Factor regarding the FDA consent decree. In December 2015, the FDA issued Form 483 observations following a 2015 inspection of approximately 5 months at the Corporate and Taylor Street facilities in Elyria, Ohio which included a review of the company’s compliance with terms of the consent decree and the matters covered by the first and second expert certification reports previously accepted in 2013. The FDA’s inspection included a review of the company's compliance with terms of the consent decree, and the matters covered by the first and second expert certification reports previously reviewed and accepted in 2013. The company has timely responded to the FDA's inspectional findings and intends to incorporate the FDA’s observations into the company's ongoing quality system improvements. In addition, in December 2010, the company received a warning letter from the FDA related to quality system processes and procedures at the company's Sanford, Florida facility. In October 2014, the FDA conducted an inspection at the Sanford facility and, at the conclusion, issued its Form 483 observations. The company is executing a comprehensive quality systems remediation plan that is intended to address all of the FDA’s concerns regarding the

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Sanford facility in the warning letter and Form 483. In January 2014, the FDA conducted inspections at the company's manufacturing facility in Suzhou, China and at the company's electronic components subsidiary in Christchurch, New Zealand, covering quality systems and current Good Manufacturing Practice regulations. In August 2014, the FDA inspected Alber GmbH in Albstadt, Germany. The FDA issued its inspectional observations on Form 483 to the company after these inspections, and the company submitted its responses to the agency in a timely manner. However, the results of regulatory claims, proceedings or investigations are difficult to predict. An unfavorable resolution or outcome of the FDA warning letter or the Form 483 observations, or any other matter that may arise out of any FDA inspection of the company's sites, could materially and adversely affect the company's business, financial condition, liquidity and results of operations.

In many of the foreign countries in which the company manufactures or markets its products, the company is subject to extensive medical device regulations that are similar to those of the FDA, including those in Europe. The regulation of the company’s products in Europe falls primarily within the European Economic Area, which consists of the 27 member states of the European Union, as well as Iceland, Liechtenstein and Norway. Only medical devices that comply with certain conformity requirements of the Medical Device Directive are allowed to be marketed within the European Economic Area. In addition, the national health or social security organizations of certain foreign countries, including those outside Europe, require the company’s products to be qualified before they can be marketed in those countries. Failure to receive, or delays in the receipt of, relevant foreign qualifications in the European Economic Area or other foreign countries could have a material adverse effect on the company’s business.

Being in the health care industry, the company is subject to extensive government regulation, and if the company fails to comply with applicable health care laws or regulations, the company could suffer severe civil or criminal sanctions or may be required to make significant changes to the company’s operations that could have a material adverse effect on the company’s results of operations.

The company sells its products principally to medical equipment and home health care providers who resell or rent those products to consumers. Many of those providers (the company’s customers) are reimbursed by third-party payors, including Medicare and Medicaid, for the companyproducts sold to their customers and patients. The U.S. federal government and the governments in the states and other countries in which the company operates regulate many aspects of the company’s business and the business of the company's customers. As a part of the health care industry, the company and its customers are 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. Government agencies periodically open investigations and obtain information from health care suppliers and manufacturers pursuant to the legal process. Violations of law or regulations can result in severe 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. While the company has established numerous policies and procedures to address compliance with these laws and regulations, there can be no assurance that the company's efforts will be effective to prevent a material adverse effect on the company’s business from noncompliance issues. For example, as discussed in the preceding Risk Factors, the company is subject to a FDA consent decree affecting its Corporate facility and Taylor Street manufacturing facility in Elyria, Ohio and received a FDA warning letter related to its Sanford, Florida facility.

Health care is an area of rapid regulatory change. Changes in the law and new interpretations of existing laws may affect permissible activities, the costs associated with doing business, and reimbursement amounts paid by federal, state and other third-party payors, all of which may affect the company and its customers. The company cannot predict the future of federal, state and local regulation or legislation, including Medicare and Medicaid statutes and regulations, or possible changes in health care policies in any country in which the company conducts business. Future legislation and regulatory changes could have a material adverse effect on the company’s business.

The company’s products are subject to recalls, which could be costly and harm the company’s reputation and business.

The company is subject to ongoing medical device reporting regulations that require the company to report to the FDA or similar governmental authorities in other countries if the company’s products cause, or contribute to, death or serious injury, or if they malfunction and would be likely to cause, or contribute to, death or serious injury if the malfunction were to recur. In light of a deficiency, defect in design or manufacturing or defect in labeling, the company may voluntarily elect to recall or correct the company’s products. In addition, the FDA and similar governmental authorities in other countries could force the company to do a field correction or recall the company’s products in the event of material deficiencies or defects in design or manufacturing. A government mandated or voluntary recall or field correction by the company could occur as a result of component failures, manufacturing errors or design defects, including defects in labeling. Any recall or field correction could divert managerial and financial resources and could harm the company’s reputation with its customers, product users and the health care professionals that use, prescribe and recommend the company’s products. The company could have product recalls or field actions that result

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in significant costs to the company in the future, and these actions could have a material adverse effect on the company’s business. As an example, the company recorded incremental warranty expense of $11,493,000 and $7,264,000 in 2014 and 2013, respectively, as a result of three product recalls as well as warranty expense reversals of $2,325,000 in 2015. The company will continue to review the adequacy of its recall accruals as the recalls progress as its warranty reserves are subject to adjustment in future periods as new developments can impact the company's estimate of the cost of these matters.

Changes in government and other third-party payor reimbursement levels and practices have negatively impacted and could continue to negatively impact the company’s revenues and profitability.

The company’s products are sold primarily through a network of medical equipment and home health care providers, extended care facilities and other providers. In addition, the company sells directly to various government providers throughout the world. Many of these providers (the company’s customers) are reimbursed for the products and services provided to their customers and patients by third-party payors, such as government programs, including Medicare and Medicaid, private insurance plans and managed care programs. Most of these programs set maximum reimbursement levels for some of the products sold by the company in the United States and abroad. If third-party payors deny coverage, make the reimbursement process or documentation requirements more uncertain or further reduce their current levels of reimbursement (i.e., beyond the reductions described below), or if the company’s costs of production do not decrease to keep pace with decreases in reimbursement levels, the company may be unable to sell the affected product(s) through its distribution channels on a profitable basis.

Reduced government reimbursement levels and changes in reimbursement policies have in the past added, and could continue to add, significant pressure to the company’s revenues and profitability. For example, in 100 metropolitan areas, the Centers for Medicare and Medicaid Services (CMS) introduced a National Competitive Bidding program (NCB) which set new, lower payment rates for medical equipment and supplies. Round one of NCB for nine metropolitan areas in the U.S. went into effect in January 2011. The reimbursement rates for nine product categories were reduced by an average of 32 percent in these nine metropolitan areas. Effective July 2013, CMS commenced round two of the NCB program, which was expanded to include an additional 91 metropolitan areas. In January 2016, CMS began expanding NCB to 100% of the Medicare population, with half of the reimbursement cuts effective January 1, 2016 and another cut expected in July 2016. CMS announced that Medicare reimbursement rates were cut an average of 45 percent for those providers participating in the round two of the NCB program. CMS announced that the NCB program has resulted in $202.1 million in savings in its first year of implementation in the nine metropolitan areas with significant savings primarily in oxygen and oxygen supplies, mail-order diabetic supplies and standard power wheelchairs. The CMS Office of the Actuary estimates that this NCB program will save Medicare an estimated $25.8 billion, and beneficiaries an estimated $17.2 billion, over the next ten years.

Similar trends and concerns are occurring in state Medicaid programs. These recent changes to reimbursement policies, and any additional unfavorable reimbursement policies or budgetary cuts that may be adopted in the future, could adversely affect the demand for the company’s products by customers who depend on reimbursement from the government-funded programs. The percentage of the company’s overall sales that are dependent on Medicare or other insurance programs may increase as the portion of the U.S. population over age 65 continues to grow, making the company more vulnerable to reimbursement level reductions by these organizations. Reduced government reimbursement levels also could result in reduced private payor reimbursement levels because some third-party payors index their reimbursement schedules to Medicare fee schedules. Reductions in reimbursement levels also may affect the profitability of the company’s customers and ultimately force some customers without strong financial resources to become unable to pay their bills as they come due or go out of business. The reimbursement reductions may prove to be so dramatic that some of the company’s customers may not be able to adapt quickly enough to survive. The company is one of the industry’s largest creditors and an increase in bankruptcies or financial weakness in the company’s customer base could have an adverse effect on the company’s financial results.

Outside the United States, reimbursement systems vary significantly by country. Many foreign markets have government-managed health care systems that govern reimbursement for home health care products. The ability of hospitals and other providers supported by such systems to purchase the company’s products is dependent, in part, upon public budgetary constraints. Various countries have tightened reimbursement rates and other countries may follow. If adequate levels of reimbursement from third-party payors outside of the United States are not obtained, international sales of the company’s products may decline, which could adversely affect the company’s net sales.

The impact of all the changes discussed above is uncertain and could have a material adverse effect on the company’s business, financial condition, liquidity and results of operations.

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The adoption of healthcare reform and other legislative developments in the United States may adversely affect the company’s business, results of operations and/or financial condition.

The U.S. Affordable Care Act enacted in 2010 includes provisions intended to expand access to health insurance coverage, improve the quality and reduce the costs of healthcare over time. Specifically, as one means to pay for the costs of the Affordable Care Act, the law imposes a 2.3% sales-based excise tax on U.S. sales by manufacturers or importers of most medical devices. The excise tax is deductible by the manufacturer or importer on its federal income tax return. The company has determined that most of its products are exempt from the tax based on the retail exemption provided in the Affordable Care Act as defined by the regulations. However, certain products that it sells for institutional use are subject to the excise tax. Based on the company's interpretation of the regulations, the impact from the tax was immaterial for the company in 2015, 2014 and 2013. However, the excise tax may increase the company’s cost of doing business, particularly if the exemptions do not ultimately apply as the company expects based on its interpretations of the regulations.

The Affordable Care Act and the programs implemented by the law may reduce reimbursements for the company's products, may impact the demand for the company’s products and may impact the prices at which the company sells its products. In addition, various healthcare programs and regulations may be ultimately implemented at the federal or state level. Such changes could have a material adverse effect on the company’s business, results of operations and/or financial condition.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) enacted in 2010, and the rules and regulations enacted thereunder by the SEC and the Commodity Futures Trading Commission (CFTC), institute a wide range of reforms, certain of which may impact the company. Among other things, the Dodd-Frank Act contains significant corporate governance and executive compensation-related provisions that authorize or require the SEC to adopt additional rules and regulations in these areas, such as shareholder “say on pay” voting and proxy access. The Dodd-Frank Act also provides for new statutory and regulatory requirements for derivative transactions, including foreign exchange and interest rate hedging transactions, and new requirements will be implemented over time. The company enters into foreign exchange contracts, interest rate swaps and foreign currency forward contracts from time to time to manage its exposure to commodity price risk, foreign currency exchange risk and interest rate risk. The company does not enter into derivative transactions for speculative purposes. Unless exempt, certain of these transactions, such as interest rate swaps and foreign exchange swaps, are required to be cleared by a registered derivatives clearing organization and subject to exchange trading requirements. If a derivative is required to be cleared, the company would be subject to cash and securities initial and variation margin posting, increasing the cost to the company of mitigating commercial risk and impacting its strategic hedging activity. The contractual counterparties in hedging arrangements are likewise subject to increased costs as a result of compliance with the Dodd-Frank Act and it is anticipated these costs will be passed on to their customers. The company will continue to analyze the suitability of particular hedging arrangements and to invest appropriate resources to comply with both existing and evolving standards.

In addition, the Dodd-Frank Act contains provisions to improve transparency and accountability concerning the sourcing of “conflict minerals” from mines located in the conflict zones of the Democratic Republic of Congo (DRC) and its adjoining countries. The term “conflict minerals” currently encompasses tantalum, tin, tungsten (or their ores) and gold. Conflict minerals can be found in a vast array of products. This legislation requires manufacturers, such as the company, to investigate and disclose their use of any conflict minerals originating in the DRC or adjoining countries in an annual filing with the SEC. It also implements guidelines to assist the manufacturer in preventing, by way of performing due diligence in its supply chain, any such sourcing from, or potentially financing or benefiting, armed groups in this area. As standards for the production of the annual conflict minerals report evolve, the company may be required to undertake significant due diligence processes requiring considerable investments of human resources and finances in order to comply with the conflict minerals due diligence and disclosure requirements. If the company's suppliers are unable or unwilling to provide it with requested information and to take other steps to ensure that there is no financing or benefiting of armed groups in the DRC and there are no conflict minerals included in materials or components supplied to the company, it may be forced to disclose in its SEC filings about the use of conflict minerals in its supply chain, which may expose the company to reputational risks, which in turn could materially adversely affect its business, financial condition and results of operations.

The company’s revenues and profits are subject to exchange rate and interest rate fluctuations that could adversely affect its results of operations or financial position.

Currency exchange rates are subject to fluctuation due to, among other things, changes in local, regional or global economic conditions, the imposition of currency exchange restrictions and unexpected changes in regulatory or taxation environments. The predominant currency used by the company’s subsidiaries outside the United States to transact business is the functional currency used for each subsidiary. Through the company’s international operations, the company is exposed to foreign currency fluctuations, and changes in exchange rates can have a significant impact on net sales and elements of cost. The company conducts a significant number of transactions in currencies other than the U.S. dollar. In addition, because certain of the company’s costs and revenues

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are denominated in other currencies, in particular costs and revenues from its European operations, the company’s results of operations are exposed to foreign exchange rate fluctuations as the financial results of those operations are translated from local currency into U.S. dollars upon consolidation. For example, the recent devaluation of the euro has had a negative impact on the translation of company's European segment net income into U.S. dollars.

The company uses foreign exchange forward contracts primarily to help reduce its exposure to transactional exchange rate risk. Despite the company’s efforts to mitigate these risks, however, the company’s revenues and profitability may be materially adversely affected by exchange rate fluctuations. The company does not have any similar arrangements that mitigate the company's exposure to foreign exchange translation risk, and does not believe that any meaningful arrangement to do so is available to the company.

The company also is exposed to market risk through various financial instruments, including fixed rate and floating rate debt instruments. The company does at times use interest rate swap contracts to mitigate its exposure to interest rate fluctuations, but those efforts may not adequately protect the company from significant interest rate risks. Interest on much of the company’s debt is based on the London Interbank Offered Rate (LIBOR), which is currently historically low. Increases in LIBOR could have a significant impact on the company’s reported interest expense.

If the company’s cost reduction efforts are ineffective, the company’s profitability could be negatively impacted.

In response to reimbursement reductions and competitive pricing pressures, the company continues to initiate numerous cost reduction and organizational efficiency efforts, including globalization of its product lines. The company may not be successful in achieving the operating efficiencies and operating cost reductions expected from these efforts, and the company may experience business disruptions associated with the restructuring and cost reduction activities. These efforts may not produce the full efficiency and cost reduction benefits that the company expects. Further, these benefits may be realized later than expected, and the costs of implementing these measures may be greater than anticipated. If these measures are not successful, the company may undertake additional cost reduction efforts, which could result in future charges. Moreover, the company’s ability to achieve other strategic goals and business plans and the company’s financial performance may be adversely affected and the company could experience business disruptions with customers and elsewhere if the company’s cost reduction and restructuring efforts prove ineffective.

If the company's information technology systems fail, or if the company experiences an interruption in the operation of its information technology systems, then the company's business, financial condition and results of operations could be materially adversely affected.

The company relies upon the capacity, reliability and security of its information technology, or IT, systems across all of its major business functions, including research and development, manufacturing, sales, financial and administrative functions. Since the company is geographically diverse, has various business segments and has grown over the years through various acquisitions, it also has many disparate versions of IT systems across its organization. As a result of these disparate IT systems, some of which may no longer be supported by the hardware or software vendors, the company faces the challenge of supporting these older systems, implementing upgrades or migrating to new platforms when necessary and aggregating data that is timely and accurate. The failure of the company's information technology systems, whether resulting from the disparate or older versions of IT systems across its various segments, business functions or otherwise, its inability to successfully maintain, enhance and/or replace its information technology systems, or any compromise of the integrity or security of the data that is generated from information technology systems, or any shortcomings in the company's disaster recovery platforms, could adversely affect the company's results of operations, disrupt business and make the company unable, or severely limit the company's ability to respond to customer demands. In addition, the company's information technology systems are vulnerable to damage or interruption from: earthquake, fire, flood and other natural disasters; employee or other theft; attacks by computer viruses, malware or hackers; power outages; and computer systems, internet, telecommunications or data network failure.

Any interruption of the company's information technology systems could result in decreased revenue, increased expenses, increased capital expenditures, customer dissatisfaction and potential lawsuits, any of which could have a material adverse effect on the company's results of operations, liquidity or financial condition.

The industry in which the company operates is highly competitive and some of the company’s competitors may have greater financial resources than the company does, a more appropriate market strategy or better strategic execution.

The home medical equipment market is highly competitive and the company’s products face significant competition from other well-established manufacturers. Reduced government reimbursement levels and changes in reimbursement policies, such as the National Competitive Bidding program implemented by CMS, may drive competitors, particularly those that have greater financial resources than the company's to offer drastically reduced pricing terms in an effort to take market share from the company or secure government acceptance of their products and pricing. Any increase in competition may cause the company to lose market

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share or compel the company to reduce prices to remain competitive, which could have a material adverse effect on the company’s results of operations. The company's failure to recognize changing market demands or a failure to develop or execute a strategy to meet such changes could also result in a material adverse effect on the company’s results of operations.

The consolidation of health care customers and the company’s competitors could result in a loss of customers or in additional competitive pricing pressures.

Numerous initiatives and reforms instituted by legislators, regulators and third-party payors to reduce home medical equipment costs have resulted in a consolidation trend in the home medical equipment industry as well as among the company’s customers, including home health care providers. In the past, some of the company’s competitors, which may include distributors, have been lowering the purchase prices of their products in an effort to attract customers. This in turn has resulted in greater pricing pressures, including pressure to offer customers more competitive pricing terms, and the exclusion of certain suppliers from important market segments as group purchasing organizations, independent delivery networks and large single accounts continue to consolidate purchasing decisions for some of the company’s customers. Further consolidation could result in a loss of customers, increased collectability risks, or increased competitive pricing pressures. In addition, as reimbursement pressures persist in the U.S. market, the company is beginning to see some customers directly sourcing select lifestyle products to secure a low-cost advantage.

The company maintains cash balances globally in various financial institutions.

While the company monitors its accounts with financial institutions both domestically and internationally, recovery of funds cannot be assured in the event the financial institution would fail. In addition, the company may be limited by foreign governments in the amount and timing of funds to be repatriated from foreign financial institutions. As a result, this could adversely impact the company's ability to fund normal operations, capital expenditures, or service debt, which could adversely affect the company's results.

The company is subject to certain risks inherent in managing and operating businesses in many different foreign jurisdictions.

The company has significant international operations, including operations in Australia, Canada, New Zealand, Mexico, Asia (primarily China) and Europe. There are risks inherent in operating and selling products internationally, including:

• different regulatory environments and reimbursement systems;

• difficulties in enforcing agreements and collecting receivables through certain foreign legal systems;

• foreign customers who may have longer payment cycles than customers in the United States;

• fluctuations in foreign currency exchange rates;

• tax rates in certain foreign countries that may exceed those in the United States and foreign earnings that may be subject to withholding requirements;

• the imposition of tariffs, exchange controls or other trade restrictions including transfer pricing restrictions when products produced in one country are sold to an affiliated entity in another country;

• general economic and political conditions in countries where the company operates or where end users of the company’s products reside;

• government control of capital transactions, including the borrowing of funds for operations or the expatriation of cash;

• potential adverse tax consequences;

• security concerns and potential business interruption risks associated with political and/or social unrest in foreign countries where the company’s facilities or assets are located;

• difficulties associated with managing a large organization spread throughout various countries;

• difficulties in enforcing intellectual property rights and weaker intellectual property rights protection in some countries;

• required compliance with a variety of foreign laws and regulations; and

• differing consumer product preferences.

The factors described above also could disrupt the company’s product manufacturing and assembling operations or its key suppliers located outside of the United States. For example, the company increasingly relies on its manufacturing and sourcing

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operations in China for the production of its products. Disruptions in the company’s foreign operations, particularly those in China or Mexico, may impact the company’s revenues and profitability.

The company may be adversely affected by legal actions or regulatory proceedings.

In addition to the risks associated with the impact of the FDA consent decree, the company may be subject to claims, litigation, governmental or regulatory investigations, or other liabilities as a result of injuries caused by allegedly defective products, or disputes arising out of acquisitions or dispositions the company has completed or relating to the company's intellectual property. Any such claims or litigation against the company, regardless of the merits, could result in substantial costs and could harm the company's business or its reputation.

The results of legal or regulatory actions or regulatory proceedings are difficult to predict and the company cannot provide any assurance that an action or proceeding will not be commenced against the company, or that the company will prevail in any such action or proceeding. An unfavorable resolution of any legal action or proceeding could materially and adversely affect the company's business, results of operations, liquidity or financial condition or its reputation.

Product liability claims may harm the company’s business, particularly if the number of claims increases significantly or the company’s product liability insurance proves inadequate.

The manufacture and sale of medical devices and related products exposes the company to a significant risk of product liability claims. From time to time, the company has been, and currently is, subject to a number of product liability claims alleging that the use of the company’s products has resulted in serious injury or even death.

Even if the company is successful in defending against any liability claims, these claims could nevertheless distract the company’s management, result in substantial costs, harm the company’s reputation, adversely affect the sales of all the company’s products and otherwise harm the company’s business. If there is a significant increase in the number of product liability claims, the company’s business could be adversely affected.

The company is self-insured in North America for product liability exposures through its captive insurance company, Invatection Insurance Company, which currently has a policy year that runs from September 1 to August 31 and insures annual policy losses up to $10,000,000 per occurrence and $13,000,000 in the aggregate. The company also has additional layers of external insurance coverage, related to all lines of insurance coverage, insuring up to $75,000,000 in aggregate losses per policy year arising from individual claims anywhere in the world that exceed the captive insurance company policy limits or the limits of the company’s per country foreign liability limits, as applicable. There can be no assurance that Invacare’s current insurance levels will continue to be adequate or available at affordable rates.

Product liability reserves are recorded for individual claims based upon historical experience, industry expertise and indications from the third-party actuary. Additional reserves, in excess of the specific individual case reserves, are provided for 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. If the company's reserves are not adequate to cover actual claims experience, the company's financial results could be adversely affected.

In addition, as a result of a product liability claim or if the company’s products are alleged to be defective, the company may have to recall some of its products, may have to incur significant costs or may suffer harm to its business reputation.

Decreased availability or increased costs of raw materials could increase the company’s costs of producing its products.

The company purchases raw materials, fabricated components, some finished goods and services from a variety of suppliers. Raw materials such as plastics, steel and aluminum are considered key raw materials. Where appropriate, the company employs contracts with its suppliers, both domestic and international. In those situations in which contracts are not advantageous, the company believes that its relationships with its suppliers are satisfactory and that alternative sources of supply are readily available. From time to time, however, the prices and availability of these raw materials fluctuate due to global market demands or economic conditions, which could impair the company’s ability to procure necessary materials, or increase the cost of these materials.

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Inflationary and other increases in costs of these raw materials have occurred in the past and may recur from time to time. In addition, freight costs associated with shipping and receiving product and sales are impacted by fluctuations in the cost of oil and gas. A slowdown in the processing of shipments at U.S. ports may also delay deliveries of components and finished goods. A reduction in the supply or increase in the cost of those raw materials could impact the company’s ability to manufacture its products and could increase the cost of production. Additionally, the company may not be able to increase the prices of its products due to competitive pricing pressure or other factors. As an example, inflation in China has in the past and may in the future increase costs and an appreciation of the Yuan or an increase in labor rates could have an unfavorable impact on the cost of key components and some finished goods. Demand in China and other developing countries for raw materials may result in increases in the cost of key commodities and could have a negative impact on the profits of the company if these increases cannot be passed onto the company’s customers.

Lower cost imports could negatively impact the company’s profitability.

Competition from lower cost imports sourced from low cost countries, such as countries in Asia, may negatively impact the company’s sales volumes. In the past, competition from certain of these products has caused the company to lower its prices, cutting into the company’s profit margins and reducing the company’s overall profitability.

The company’s success depends on the company’s ability to design, manufacture, distribute and achieve market acceptance of new products with higher functionality and lower costs.

The company sells products to customers primarily in markets that are characterized by technological change, product innovation and evolving industry standards, yet in which product price is increasingly a primary consideration in customers’ purchasing decisions. The company historically has been engaged in product development and improvement programs. However, beginning in 2012 as a result of the FDA consent decree, which is described elsewhere in this Annual Report on Form 10-K, the company's engineering resources had been focused primarily on quality remediation and not on the design of new products. The company has received the FDA's approval to resume design activities at the impacted Elyria facilities in 2013 and has refocused certain of its engineering resources on new product development.

The company must continue to design and improve innovative products, effectively distribute and achieve market acceptance of those products, and reduce the costs of producing the company’s products, in order to compete successfully with the company’s competitors. If competitors’ product development capabilities become more effective than the company’s product development capabilities, if competitors’ new or improved products are accepted by the market before the company’s products or if competitors are able to produce products at a lower cost and thus offer products for sale at a lower price, the company’s business, financial condition and results of operation could be adversely affected.

The company’s business strategy relies on certain assumptions concerning demographic trends that impact the market for its products. If these assumptions prove to be incorrect, demand for the company’s products may be lower than expected.

The company’s ability to achieve its business objectives is subject to a variety of factors, including the relative increase in the aging of the general population. The company believes that these trends will increase the need for its products. The projected demand for the company’s products could materially differ from actual demand if the company’s assumptions regarding these trends and acceptance of its products by health care professionals and patients prove to be incorrect or do not materialize. If the company’s assumptions regarding these factors prove to be incorrect, the company may not be able to successfully implement the company’s business strategy, which could adversely affect the company’s results of operations. In addition, the perceived benefits of these trends may be offset by competitive or business factors, such as the introduction of new products by the company’s competitors or the emergence of other countervailing trends, including lower reimbursement and pricing.

The terms of the company’s debt facilities and financing arrangements may limit the company’s flexibility in operating its business.

The company is a party to an Amended and Restated Credit Agreement that provides for asset-based lending senior secured revolving credit facilities which mature in January 2018. The credit agreement provides the company and certain of the company's U.S., Canadian, U.K. and French subsidiaries with the ability to borrow under senior secured revolving credit, letter of credit and swing line loan facilities. The aggregate borrowing availability under the credit facilities is determined based on borrowing base formulas set forth in the credit agreement. The credit facilities are secured by substantially all of the company's domestic and Canadian assets, other than real estate, and by substantially all of the personal property assets of the company's U.K. subsidiaries and all of the receivables of the company's French subsidiaries. The credit agreement contains customary default provisions, with certain grace periods and exceptions, that include, among other things, failure to pay amounts due, breach of covenants,

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representations or warranties, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption of any material manufacturing facilities for more than ten consecutive days.

The restrictive terms of the company's credit agreement may limit the company’s ability to conduct and expand its business and pursue its business strategies. The company’s ability to comply with the provisions of its credit agreements can be affected by events beyond its control, including changes in general economic and business conditions, or by government enforcement actions, such as, for example, adverse impacts from the FDA consent decree of injunction. If the company is unable to comply with the provisions in the credit agreement, it could result in a default which could trigger acceleration of, or the right to accelerate, the related debt. Because of cross-default provisions in its agreements and instruments governing certain of the company's indebtedness, a default under the credit agreement could result in a default under, and the acceleration of, certain other company indebtedness. In addition, the company's lenders would be entitled to proceed against the collateral securing the indebtedness.

The company's ability to meet its liquidity needs will depend on many factors, including the operating performance of the business, the company's ability to obtain the FDA acceptance of the final third-party expert certification report and the company's own report, to successfully complete the FDA inspection contemplated under the consent decree and to obtain receipt of the written notification from the FDA permitting the company to resume full operations, as well as the company's continued compliance with the covenants under its credit agreement. Notwithstanding the company's expectations, if the company's operating results decline more than it currently anticipates, or if the company is unable to obtain FDA acceptance of the final third-party expert certification report and the company's own report or to successfully complete the FDA inspection, the company may be unable to comply with the financial covenants, and its lenders could demand repayment of the amounts outstanding under the company's credit facility.

The company also has an agreement with De Lage Landen, Inc. (“DLL”), a third party financing company, to provide the majority of future lease financing to the company's North America customers. Either party could terminate this agreement with 180 days' notice or 90 days' notice by DLL upon the occurrence of certain events. Should this agreement be terminated, the company's borrowing needs under the credit agreement could increase.

The company's capital expenditures could be higher than anticipated.

Unanticipated maintenance issues, changes in government regulations or significant investments in technology and new product development could result in higher than anticipated capital expenditures, which could impact the company's debt, interest expense and cash flows.

The company’s operating results and financial condition could be adversely affected if the company becomes involved in litigation regarding its patents or other intellectual property rights.

Litigation involving patents and other intellectual property rights is common in the company’s industry, and other companies within the company’s industry have used intellectual property litigation in an attempt to gain a competitive advantage. The company in the past has been, and in the future may become, a party to lawsuits involving patents or other intellectual property. If the company were to receive an adverse judgment in any such proceeding, a court or a similar foreign governing body could invalidate or render unenforceable the company’s owned or licensed patents, require the company to pay significant damages, seek licenses and/or pay ongoing royalties to third parties, require the company to redesign its products, or prevent the company from manufacturing, using or selling its products, any of which could have an adverse effect on the company’s results of operations and financial condition. The company in the past has brought, and may in the future also bring, actions against third parties for infringement of the company’s intellectual property rights. The company may not succeed in these actions. The defense and prosecution of intellectual property suits, proceedings before the U.S. Patent and Trademark Office or its foreign equivalents and related legal and administrative proceedings are both costly and time consuming. Protracted litigation to defend or prosecute the company’s intellectual property rights could seriously detract from the time the company’s management would otherwise devote to running its business. Intellectual property litigation relating to the company’s products could cause its customers or potential customers to defer or limit their purchase or use of the affected products until resolution of the litigation.

If the company is unable to protect its intellectual property rights or resolve successfully claims of infringement brought against it, the company's product sales and business could be affected adversely.

The company's business depends in part on its ability to establish, protect, safeguard and enforce its intellectual property and contractual rights and to defend against any claims of infringement, both of which involve complex legal, factual and marketplace uncertainties. The company relies on a combination of patent, trade secret, copyright and trademark law and security measures to protect its intellectual property, but effective intellectual property protection may not be available in all places that the company sells its products or services, particularly in certain foreign jurisdictions. In addition, the company uses nondisclosure, confidentiality agreements and invention assignment agreements with many of its employees, and nondisclosure and confidentiality

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agreements with certain third parties, in an effort to help protect its proprietary technology and know-how. If these agreements are breached or the company's intellectual property is otherwise misappropriated, the company may have to rely on litigation to enforce its intellectual property rights. If any of these measures are unsuccessful in protecting the company's intellectual property, the company's business may be affected adversely.

In addition, the company may face claims of infringement that could interfere with its ability to use technology or other intellectual property rights that are material to the company's business operations. In the event that a claim of infringement against the company is successful, the company may be required to pay royalties or license fees to continue to use technology or other intellectual property rights that the company was using, or the company may be unable to obtain necessary licenses from third parties at a reasonable cost or within a reasonable time. If the company is unable to obtain licenses on reasonable terms, it may be forced to cease selling or using the products that incorporate the challenged intellectual property, or to redesign or, in the case of trademark claims, rename its products to avoid infringing the intellectual property rights of third parties, which may not be possible, or if possible, may be time-consuming. Any litigation of this type, whether successful or unsuccessful, could result in substantial costs to the company and adversely affect the company's business and financial condition.

The company also holds patent and other intellectual property licenses from third parties for some of its products and on technologies that are necessary in the design and manufacture of some of the company's products. The loss of these licenses could prevent the company from, or could cause additional disruption or expense in, manufacturing, marketing and selling these products, which could harm the company's business.

The company’s research and development and manufacturing processes are subject to federal, state, local and foreign environmental requirements.

The company’s research and development and manufacturing processes are subject to federal, state, local and foreign environmental requirements, including requirements governing the discharge of pollutants into the air or water, the use, handling, storage and disposal of hazardous substances and the responsibility to investigate and clean up contaminated sites. Under some of these laws, the company also could be held responsible for costs relating to any contamination at the company’s past or present facilities and at third-party waste disposal sites. These could include costs relating to contamination that did not result from any violation of law and, in some circumstances, contamination that the company did not cause. The company may incur significant expenses relating to the failure to comply with environmental laws. The enactment of stricter laws or regulations, the stricter interpretation of existing laws and regulations or the requirement to undertake the investigation or remediation of currently unknown environmental contamination at the company’s own or third-party sites may require the company to make additional expenditures, which could be material.

The company may be unable to make strategic acquisitions without obtaining amendments to its credit agreement.

The company’s business plans historically included identifying, analyzing, acquiring, and integrating other strategic businesses. There are various reasons for the company to acquire businesses or product lines, including providing new products or new manufacturing and service capabilities, to add new customers, to increase penetration with existing customers, and to expand into new geographic markets. The provisions of the credit agreement restrict the company from undertaking certain acquisitions unless the company is able to negotiate and obtain amendments with regard to those provisions. If the company is unable to obtain the necessary amendments, it may miss opportunities to grow its business through strategic acquisitions.

In addition, an acquisition could materially impair the company’s operating results by causing the company to incur debt or requiring the amortization of acquisition expenses and acquired assets.

Additional tax expense or additional tax exposures could affect the company's future profitability and cash flow.

The company is subject to income taxes in the United States and various non-U.S. jurisdictions. The domestic and international tax liabilities are dependent upon the allocation of income among these different jurisdictions. The company's tax expense includes estimates of additional tax which may be incurred for tax exposures and reflects various other estimates and assumptions. In addition, the assumptions include assessments of future earnings of the company that could impact the valuation of its deferred tax assets. The company’s future results of operations could be adversely affected by changes in the company's effective tax rate which could result from changes in the mix of earnings in countries with differing statutory tax rates, changes in the overall profitability of the company, changes in tax legislation and rates, changes in generally accepted accounting principles, changes in the valuation of deferred tax assets and liabilities, the results of audits and examinations of previously filed tax returns and continuing assessments of its tax exposures. The company's future cash flows may be negatively affected by cash payments required to settle tax liabilities, including payments the company expects to make over the next twelve months to settle certain tax liabilities. Corporate tax reform and tax law changes continue to be analyzed in the United States and in many other jurisdictions.

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The company’s reported results may be adversely affected by increases in reserves for uncollectible accounts receivable.

The company has a large balance of accounts receivable and has established a reserve for the portion of such accounts receivable that the company estimates will not be collected because of the company’s customers’ non-payment. The specific reserve is based on historical trends and current relationships with the company’s customers and providers. Changes in the company’s collection rates can result from a number of factors, including turnover in personnel, changes in the payment policies or practices of payors, changes in industry rates or pace of reimbursement or changes in the financial health of the company’s customers. As a result of past changes in Medicare reimbursement regulations, specifically changes to the qualification processes and reimbursement levels of consumer power wheelchairs and custom power wheelchairs, the business viability of some the company’s customers may be at risk. Further, as National Competitive Bidding is implemented in additional areas, the number of start-up or new providers who have three-year contracted pricing will increase. The company’s reserve for uncollectible receivables has fluctuated in the past and will continue to fluctuate in the future. Changes in rates of collection, even if they are small in absolute terms, could require the company to increase its reserve for uncollectible receivables beyond its current level. The company has reviewed the accounts receivables, including those receivables financed through DLL, associated with many of its customers that are most exposed to these issues. If the business viability of certain of the company’s customers deteriorates or the company’s credit policies are ineffective in reducing the company’s exposures to credit risk, additional increases in reserves for uncollectible accounts may be necessary, which could adversely affect the company’s financial results.

The inability to attract and retain, or loss of the services of, the company’s key management and personnel could adversely affect its ability to operate the company’s business.

The company’s future success will depend, in part, upon the continued service of key managerial, research and development staff and sales and technical personnel. In addition, the company’s future success will depend on its ability to continue to attract and retain other highly qualified personnel, including personnel experienced in quality systems and regulatory affairs. If the company is not successful in retaining its current personnel or in hiring or retaining qualified personnel in the future, the company’s business may be adversely affected. The company’s future success depends, to a significant extent, on the abilities and efforts of its executive officers and other members of its management team, such as the company's Chairman, President and Chief Executive Officer and its Senior Vice President and Chief Financial Officer, as well as other members of its management team. The company had significant turnover in its management team during 2014 and 2015 and cannot be certain that its executive officers and other key employees will continue in their respective capacities for any period of time, and these employees may be difficult to replace. If the company loses the services of any of its management team, the company’s business may be adversely affected.

Certain provisions of the company’s debt agreements, its charter documents, and Ohio law could delay or prevent a sale or change in control of the company.

Provisions of the company’s credit agreement, its charter documents, and Ohio law may make it more difficult for a third party to acquire, or attempt to acquire, control of the company even if a change in control would result in the purchase of shares of the company at a premium to market price. In addition, these provisions may limit the ability of shareholders of the company to approve transactions that they may deem to be in their best interest.

The holders of the company’s Class B Common Shares own shares representing a substantial percentage of the company’s voting power, and their interests may differ from other shareholders.

The company has two classes of common stock. The Common Shares have one vote per share and the Class B Common Shares have 10 votes per share. As of this filing, the Class B Common Shares represented approximately 17% of the combined voting power of the company’s Common Shares and Class B Common Shares. Substantially all of such Class B Common Shares are beneficially owned by a former executive whose beneficial ownership (including the right to acquire) of approximately 19% of the combined voting power could influence the outcome of a corporate transaction or other matter submitted to the shareholders for approval, including mergers, consolidations and the sale of all or substantially all of the company’s assets. He also will have the power to influence or make more difficult a change in control, and it is possible that his interests may differ from the interests of the other shareholders, and he could take actions with which some shareholders may disagree.

Difficulties in implementing or upgrading the company’s Enterprise Resource Planning systems may disrupt the company’s business.

The company is in the process of upgrading its Enterprise Resource Planning, or “ERP,” system in Europe. The complexities and business process changes associated with such an ERP upgrade can potentially result in various difficulties including problems processing and fulfilling orders, customer disruptions and lost business. While the company believes the potential difficulties associated with upgrading the company’s primary ERP system in Europe have been addressed or can be mitigated, there can be

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no assurance that the company will not experience disruptions or inefficiencies in the company’s business operations as a result of the upgrade which could have a material adverse effect on the company's business, financial condition, liquidity or results of operations.

Item 1B.    Unresolved Staff Comments.

Not applicable.

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Item 2.        Properties.

The company owns or leases its warehouses, offices and manufacturing facilities and believes that these facilities are well maintained, adequately insured and suitable for their present and intended uses. Information concerning certain leased facilities of the company as of December 31, 2015 is set forth in Leases and Commitments in the Notes to the Consolidated Financial Statements of the company included in this report and in the table below:

	Square Feet	Ownership Or Expiration Date of Lease	Renewal Options	Use
North American/HME Operations
Arlington, Texas	63,626	May 2018	One (3 yr.)	Warehouse and Offices
Atlanta, Georgia	91,418	April 2019	One (3 yr.)	Warehouse and Offices
Attleboro, Massachusetts	1,200	July 2018	None	Offices
Beijing, China	1,399	January 2017	None	Offices
Cranbury, New Jersey	111,987	April 2018	Two (3 yr.)	Warehouse and Offices
Cranbury, New Jersey	127,963	April 2018	Two (3 yr.)	Warehouse and Offices
Elyria, Ohio
—1200 Taylor Street	251,000	April 2035	Three (10 yr.)	Manufacturing and Offices
—899 Cleveland Street	100,264	November 2016	None	Warehouse
—One Invacare Way	50,000	April 2035	Three (10 yr.)	Headquarters
—1320 Taylor Street	30,000	January 2018	One (3 yr.)	Offices
—1166 Taylor Street	4,800	April 2035	Three (10 yr.)	Warehouse and Offices
—56 Ternes Avenue	12,001	December 2016	One (1 yr.)	Warehouse
Guangzhou, China	895	April 2016	None	Offices
Kirkland, Quebec	17,010	November 2018	One (5 yr.)	Manufacturing, Warehouse and Offices
Lawrenceville, Georgia	74,140	July 2019	One (5 yr.)	Warehouse and Offices
Marlboro, New Jersey	2,800	June 2017	None	Offices
Mississauga, Ontario	61,375	February 2019	None	Warehouse and Offices
North Ridgeville, Ohio	152,000	April 2035	Three (10 yr.)	Warehouse and Offices
Ontario, California	97,618	May 2018	Two (3 yr.)	Warehouse and Offices
Ontario, California	121,900	May 2018	Two (3 yr.)	Warehouse and Offices
Pharr, Texas	4,375	November 2017	None	Warehouse and Offices
Pinellas Park, Florida	11,400	Month to Month	None	Manufacturing and Offices
Pinellas Park, Florida	3,200	Month to Month	None	Manufacturing
Pinellas Park, Florida	3,200	Month to Month	None	Manufacturing
Pinellas Park, Florida	2,430	May 2016	None	Warehouse
Reynosa, Mexico	152,256	Own	—	Manufacturing and Offices
Sanford, Florida	116,272	April 2035	Three (10 yr.)	Manufacturing and Offices
Scarborough, Ontario	5,428	February 2017	None	Manufacturing and Offices
Shanghai, China	1,615	May 2017	None	Offices
Shenzheng, China	1,054	August 2016	None	Offices
Simi Valley, California	38,501	February 2019	None	Manufacturing, Warehouse and Offices
Spicewood, Texas	6,500	Month to Month	None	Manufacturing and Offices
Suzhou, China	129,824	April 2017	None	Manufacturing, Warehouse and Offices
Tonawanda, New York	7,515	March 2018	None	Warehouse and Offices
Vaughan, Ontario	26,637	December 2020	None	Manufacturing and Offices

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	Square Feet	Ownership Or Expiration Date of Lease	Renewal Options	Use
Institutional Products Group
Maryland Heights, Missouri	10,786	November 2019	One (3 yr.)	Offices
Asia/Pacific Operations
Auckland, New Zealand	30,518	September 2017	None	Manufacturing, Warehouse and Offices
Christchurch, New Zealand	72,269	December 2020	One (3 yr.)	Manufacturing, Warehouse and Offices
Kidderminster, United Kingdom	6,200	January 2018	None	Warehouse and Offices
North Olmsted, Ohio	2,280	October 2016	One (3 yr.)	Warehouse and Offices
North Rocks, NSW, Australia	45,714	August 2017	Two (3 yr.)	Warehouse and Offices
Suzhou, China	41,290	November 2016	None	Manufacturing, Warehouse and Offices
European Operations
Albstadt, Germany	73,894	February 2018	Two (5 yr.)	Manufacturing, Warehouse and Offices
Albstadt, Germany	12,917	Month to Month	None	Warehouse
Albstadt, Germany	19,375	Month to Month	None	Warehouse and Offices
Albstadt, Germany	5,382	Month to Month	None	Warehouse and Offices
Backemarks, Sweden	35,521	December 2016	One (6 mos.)	Warehouse
Bergen, Norway	1,076	May 2016	One (6 mos.)	Warehouse and Offices
Bodo, Norway	2,153	May 2016	One (6 mos.)	Services and Offices
Brondby, Denmark	17,922	Month to Month	One (1 yr.)	Warehouse and Offices
Brondby, Denmark	3,767	Month to Month	One (1 yr.)	Warehouse
Dihult, Sweden	5,382	Month to Month	One (3 mos.)	Warehouse
Dio, Sweden	110,524	Own	—	Manufacturing, Warehouse and Offices
Dublin, Ireland	5,000	May 2024	Three (5 yr.)	Warehouse and Offices
Ede, The Netherlands	12,917	November 2021	One (75 mos.)	Warehouse
Ede, The Netherlands	9,257	November 2016	One (5 yr.)	Offices
Erniss, Sweden	17,502	Month to Month	One (3 mos.)	Warehouse
Fondettes, France	191,856	Own	—	Manufacturing and Warehouse
Girona, Spain	14,639	November 2018	One (1 yr.)	Warehouse and Offices
Gland, Switzerland	5,586	September 2016	One (1 yr.)	Offices
Gland, Switzerland	1,184	September 2016	One (1 yr.)	Offices
Goteborg, Sweden	2,691	September 2018	One (3 yr.)	Warehouse
Isny, Germany	47,232	Own	—	Manufacturing, Warehouse and Offices
Isny, Germany	1,615	Own	—	Warehouse
Kinross, United Kingdom	4,800	September 2016	One (6 mos.)	Warehouse and Offices
Kristiansand, Norway	646	January 2017	One (6 mos.)	Services and Offices
Landskrona, Sweden	5,382	January 2018	One (3 yr.)	Warehouse
Loppem, Belgium	4,036	March 2024	None	Warehouse and Offices
Mondsee, Austria	1,508	March 2017	None	Warehouse and Offices
Mondsee, Austria	767	December 2016	None	Offices
Mondsee, Austria	377	Month to Month	None	Warehouse
Mondsee, Austria	624	Month to Month	None	Warehouse
Neuville en Ferrain, France	1,399	April 2022	One (3 yr.)	Offices

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	Square Feet	Ownership Or Expiration Date of Lease	Renewal Options	Use
European Operations
Oakdale, Pennsylvania	5,543	September 2016	One (1 yr.)	Warehouse and Offices
Oporto, Portugal	88,270	November 2016	One (1 yr.)	Manufacturing, Warehouse and Offices
Oskarshamn, Sweden	1,076	December 2016	One (1 yr.)	Warehouse
Oslo, Norway	24,262	April 2016	One (6 mos.)	Manufacturing, Warehouse and Offices
Pencoed, United Kingdom	150,000	December 2019	None	Manufacturing and Offices
Porta Westfalica, Germany	134,563	November 2021	Two (5yr.)	Manufacturing, Warehouse and Offices
Porta Westfalica, Germany	8,930	Month to Month	One (1 yr.)	Warehouse
Porta Westfalica, Germany	13,455	Month to Month	None	Warehouse and Offices
Sandes, Norway	807	July 2016	One (6 mos.)	Offices
Spanga, Sweden	16,146	Own	—	Warehouse and Offices
Thiene, Italy	21,528	Own	—	Warehouse and Offices
Trondheim, Norway	5,027	December 2018	One (6 mos.)	Services and Offices
Warwick, United Kingdom	135,413	May 2017	One (3 yr.)	Warehouse and Offices
Wien, Austria	215	Month to Month	None	Warehouse
Witterswil, Switzerland	40,343	March 2018	One (1 yr.)	Manufacturing, Warehouse and Offices
Witterswil, Switzerland	2,241	Month to Month	None	Warehouse
Witterswil, Switzerland	2,241	Month to Month	None	Warehouse
Witterswil, Switzerland	4,306	Month to Month	One (3 mos.)	Warehouse

Item 3.        Legal Proceedings.

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. Management does not believe that the outcome of any of these actions will have a material adverse effect upon the company's business or financial condition.

In December 2012, the company reached agreement with the FDA on the terms of the consent decree of injunction with respect to the company's Corporate facility and its Taylor Street wheelchair manufacturing facility in Elyria, Ohio. A complaint and consent decree were filed in the U.S. District Court for the Northern District of Ohio, and on December 21, 2012, the Court approved the consent decree and it became effective. The consent decree limits the company's manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility. The decree also initially limited design activities related to wheelchairs and power beds that take place at the impacted Elyria, Ohio facilities. The company is entitled to continue to produce from the Taylor Street manufacturing facility certain medically necessary wheelchairs provided that documentation and record-keeping requirements are followed, as well as ongoing replacement, service and repair of products already in use, under terms delineated in the consent decree. Under the terms of the consent decree, in order to resume full operations at the impacted facilities, the company must successfully complete a third-party expert certification audit at the impacted Elyria facilities, which is comprised of three distinct reports that must be submitted to, and accepted by, the FDA. During 2013, the company completed the first two of the third-party expert certification audits, and the FDA found the results of both to be acceptable. In these reports, the third-party expert certified that the company's equipment and process validation procedures and its design control systems are compliant with the FDA's QSR. As a result of the FDA's acceptance of the first certification report on May 13, 2013, the Taylor Street facility was able to resume supplying parts and components for the further manufacturing of medical devices at other company facilities. The company's receipt of the FDA's acceptance of the second certification report on July 15, 2013, resulted in the company being able to resume design activities at the impacted facilities related to power wheelchairs and power beds. In February 2016, the independent expert auditor issued its certification report for the third phase of the consent decree indicating substantial compliance with the FDA's QSR, and the report has been submitted to the FDA.

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Per the terms of the consent decree, the company must submit its own report to the FDA regarding its compliance status together with its written responses to any observations in the independent expert's report. The independent third-party expert auditor's third certification report, as well as the company's own report, both must be accepted by the FDA before the agency reinspects the impacted Elyria facilities. If the FDA is satisfied with the company's compliance, the FDA will provide written notification that the company is permitted to resume full operations at the impacted facilities. The company cannot predict the acceptance of these reports by the FDA, nor any remaining work that may be needed to meet the FDA's requirements. The FDA has the authority to inspect any FDA registered facility at any time.

After resumption of full operations, the company must undergo five years of audits by a third-party expert auditor to determine whether the facilities are in continuous compliance with FDA regulations and the consent decree. The auditor will inspect the Corporate and Taylor Street facilities’ activities every six months during the first year following the resumption of full operations and then once every 12 months for the next four years thereafter.

Under the consent decree, the FDA has the authority to inspect the Corporate and Taylor Street facilities at any time. The FDA also has the authority to order the company to take a wide variety of actions if the FDA finds that the company is not in compliance with the consent decree or FDA regulations, including requiring the company to cease all operations relating to Taylor Street products. The FDA also can order the company to undertake a partial cessation of operations or a recall, issue a safety alert, public health advisory, or press release, or to take any other corrective action the FDA deems necessary with respect to Taylor Street products.

The FDA also has authority under the consent decree to assess liquidated damages of $15,000 per violation per day for any violations of the consent decree, FDA regulations or the federal Food, Drug, and Cosmetic Act. The FDA also may assess liquidated damages for shipments of adulterated or misbranded devices, except as permitted by the consent decree, in the amount of twice the sale price of any such adulterated or misbranded device. The liquidated damages are capped at $7,000,000 for each calendar year. The liquidated damages are in addition to any other remedies otherwise available to the FDA, including civil money penalties.

For additional information regarding the consent decree, please see the following sections of this Annual Report on Form 10-K: Item 1. Business - Government Regulation; Item 1A. Risk Factors; and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook and - Liquidity and Capital Resources.

In December 2010, the company received a warning letter from the FDA related to quality system processes and procedures at the company's Sanford, Florida facility. In January 2014, the FDA conducted inspections at the company’s manufacturing facility in Suzhou, China and at the company’s electronic components subsidiary in Christchurch, New Zealand, covering quality systems and current Good Manufacturing Practice regulations. In August 2014, the FDA inspected Alber GmbH in Albstadt, Germany. The FDA issued its inspectional observations on Forms 483 to the company after these inspections, and the company submitted its responses to the agency in a timely manner. In October 2014, the FDA conducted an inspection at the Sanford facility and, at the conclusion, issued its Form 483 inspectional observations. In December 2015, the FDA issued Form 483 observations following a 2015 inspection of approximately 5 months at the Corporate and Taylor Street facilities in Elyria, Ohio which included a review of the company’s compliance with terms of the consent decree and the matters covered by the first and second expert certification reports previously accepted in 2013. The company has timely filed its responses to these Forms 483 with the FDA and continues to work on addressing the FDA's observations. The results of regulatory claims, proceedings, investigations, or litigation are difficult to predict. An unfavorable resolution or outcome of the FDA warning letter or other FDA enforcement related to the Sanford facility or other company facilities could materially and adversely affect the company's business, financial condition, and results of operations. See Item Item 1. Business - Government Regulation - Other FDA Matters and 1A. Risk Factors in this Annual Report on Form 10-K.

On November 15, 2013, an amended complaint, in a lawsuit originally instituted on May 24, 2013, was filed against Invacare Corporation, former officer and director Gerald B. Blouch and former officer and director A. Malachi Mixon III in the U.S. District Court for the Northern District of Ohio, alleging that the defendants violated federal securities laws by failing to properly disclose the issues that the company faced with the FDA. The lawsuit sought class certification and unspecified damages and attorneys' fees for purchasers of the company's common shares between February 27, 2009 and December 7, 2011. After mediation, the parties agreed to settle the matter, which agreement was fully and finally approved by the Court on November 19, 2015, and the case was dismissed. The settlement amount was paid entirely by the company’s insurance carriers.

On September 12, 2014, a second amended complaint, in a lawsuit originally instituted on August 26, 2013, was filed against Invacare Corporation, former officer and director Gerald B. Blouch, former officer and director A. Malachi Mixon III, and the company's Senior Vice President, Human Resources, Patricia Stumpp, as well as outside directors Dale C. LaPorte and Michael F. Delaney and former outside director Charles S. Robb, in the U.S. District Court for the Northern District of Ohio, alleging that the defendants breached their fiduciary duties and violated the Employee Retirement Income Security Act (ERISA) in the

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administration and maintenance of the company stock fund in the company’s Retirement Savings Plan (401(k) Plan). The lawsuit seeks class certification and unspecified damages and attorneys' fees for participants in the company's stock fund of the 401(k) Plan between July 22, 2010 and the present. On August 28, 2015, the Court limited plaintiff’s claim to the time period between July 22, 2010 and December 8, 2011. This lawsuit has been referred to the company's insurance carriers. The company intends to vigorously defend this lawsuit.

Additional information regarding the company's commitments and contingencies is included in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and in Contingencies in the Notes to the Condensed Consolidated Financial Statements included in this Annual Report on Form 10-K.

Item 4.        Mine Safety Disclosures.

None.

Executive Officers of the Registrant.*

The following table sets forth the names of the executive officers of the company, each of whom serves at the pleasure of the Board of Directors, as well as certain other information.

Name	Age	Position
Matthew E. Monaghan	48	Chairman, President and Chief Executive Officer
Robert K. Gudbranson	52	Senior Vice President and Chief Financial Officer
Dean J. Childers	49	Senior Vice President and General Manager, North America
Anthony C. LaPlaca	57	Senior Vice President, General Counsel and Secretary
Patricia A. Stumpp	54	Senior Vice President, Human Resources
Gordon Sutherland	57	Senior Vice President and General Manager, Europe, Middle East & Africa

 ________________________

* The description of executive officers is included pursuant to Instruction 3 to Section (b) of Item 401 of Regulation S-K.

Matthew E. Monaghan was appointed as the company’s President and Chief Executive Officer effective April 1, 2015 and was elected Chairman of the Board in May 2015. Prior to joining Invacare, Mr. Monaghan served as a business unit leader at Zimmer Holdings (now Zimmer Biomet NYSE: ZBH), a major orthopedic implant company, serving first as Vice President and General Manager of the company's Global Hips business (December 2009 to January 2014) and later as Senior Vice President of Hips and Reconstructive Research (January 2014 until joining Invacare). Prior to joining Zimmer in 2009, Mr. Monaghan spent eight years as an operating executive for two leading private equity firms, Texas Pacific Group (TPG) and Cerberus Capital Management, where he led acquisitions and operational improvements of portfolio companies. For the first 13 years of his career, Mr. Monaghan held various engineering, financial and management positions at General Electric (NYSE: GE).

Robert K. Gudbranson has been the Senior Vice President and Chief Financial Officer since April 2008 and served as Interim President and Chief Executive Officer from August 1, 2014 until April 1, 2015. From October 2005 until his appointment at Invacare, Mr. Gudbranson served as Vice President of Strategic Planning and Acquisitions at Lincoln Electric Holdings, Inc. (NASDAQ: LECO), a global manufacturer of welding, brazing and soldering products located in Cleveland, Ohio. Prior to joining Lincoln Electric, Mr. Gudbranson served as Director of Business Development and Investor Relations at Invacare from June 2002 to October 2005. Mr. Gudbranson has also served as Invacare’s Assistant Treasurer and as the European Finance Director.

Dean J. Childers joined the company as Senior Vice President - Strategic Initiatives in May 2015 and was appointed Senior Vice President and General Manager, North America in June 2015. Prior to joining Invacare, Mr. Childers served as Vice President, Business Operations at Integra Lifesciences, Inc. (NASDAQ: IART), a life science company focused on regenerative technologies and orthopedics, from September 2014 until May 2015. From 2010 through September 2014, Mr. Childers served as Vice President, Logistics at Zimmer Holdings (now Zimmer Biomet NYSE: ZBH), a major orthopedic implant company. Mr. Childers holds a B.S. Accountancy from the University of Missouri-Columbia and an MBA with concentration in International Business from St. Louis University.

Anthony C. LaPlaca was appointed Senior Vice President, General Counsel and Secretary effective January 2009. Previously, Mr. LaPlaca served as Vice President and General Counsel for six and a half years with Bendix Commercial Vehicle Systems LLC, a member of the Knorr-Bremse group, a supplier of commercial vehicle safety systems. Prior to that, he served as Vice President and General Counsel to Honeywell Transportation & Power Systems and General Counsel to Honeywell Commercial Vehicle Systems LLC.

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Patricia A. Stumpp has been the Senior Vice President, Human Resources since September 2009. Mrs. Stumpp joined Invacare in 1991 and was promoted to her current position in 2009. Previously, Mrs. Stumpp served as Director of Compensation & Benefits from January 2001 to August 2006 and as Director of the Human Resources Group from August 2006 until August 2009. She also has prior experience in healthcare, small business and the services industry. She holds a BA in Psychology and an MBA from The University of Toledo.

Gordon Sutherland was appointed as Senior Vice President and General Manager, Europe, Middle East & Africa in June 2015 and previously served from October 2012 to June 2015 as Vice President & General Manager, Europe, Middle East & Africa. Prior to joining Invacare in October 2012, Mr. Sutherland served as Vice President, Global Marketing-Chronic at Gambro Renal Products, now part of Baxter International Inc. (NYSE: BAX), where he also previously served in various senior level positions in general management, business strategy and operations. Mr. Sutherland has medical device experience with an international business career including service with Baxter Healthcare, Bristol-Myers Squib (NYSE: BMY), C.R. Bard (NYSE: BCR) and Johnson & Johnson (NYSE: JNJ). Mr. Sutherland holds a B.Sc. (Hons) degree from Edinburgh Napier University and an MBA, Marketing, from the University of Warwick - Warwick Business School.

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PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Invacare’s Common Shares, without par value, trade on the New York Stock Exchange (NYSE) under the symbol “IVC.” Ownership of the company’s Class B Common Shares (which are not listed on NYSE) cannot be transferred, except, in general, to family members without first being converted into Common Shares. Class B Common Shares may be converted into Common Shares at any time on a share-for-share basis. The number of record holders of the company Common Shares and Class B Common Shares at March 1, 2016 was 2,360 and 26, respectively. The closing sale price for the Common Shares on March 1, 2016 as reported by NYSE was $12.60. The prices set forth below do not include retail markups, markdowns or commissions.

The following table sets forth, for each of the quarterly periods indicated, the high and low intraday sales prices of the company’s common shares and dividends declared on the company’s common shares for the periods indicated.

	2015						2014
	High		Low		Cash Dividends Declared		High		Low		Cash Dividends Declared
Quarter Ended:
December 31	$	20.41	$	14.00	$	0.0125	$	17.52	$	11.65	$	0.0125
September 30	22.22		14.24		0.0125		19.20		11.79		0.0125
June 30	23.59		18.85		0.0125		19.82		15.51		0.0125
March 31	20.35		14.33		0.0125		25.96		18.35		0.0125

During 2015 and 2014, the Board of Directors also declared annualized dividends of $0.0455 per Class B Common Share. For information regarding limitations on the payment of dividends in the company's credit facilities and debt agreements, see Long Term Debt in the Notes to the Consolidated Financial Statements included in this report. The Common Shares are entitled to receive cash dividends at a rate of at least 110% of cash dividends paid on the Class B Common Shares. See Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources, regarding covenants in the company's senior credit facilities with respect to the payment of dividends.

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SHAREHOLDER RETURN PERFORMANCE GRAPH

The following graph compares the yearly cumulative total return on Invacare’s Common Shares against the yearly cumulative total return of the companies listed on the Standard & Poor’s 500 Stock Index, the Russell 2000 Stock Index and the S&P Healthcare Equipment & Supplies Index*.

	12/10		12/11		12/12		12/13		12/14		12/15
Invacare Corporation	$	100.00	$	50.83	$	54.32	$	77.64	$	56.24	$	58.52
S&P 500	100.00		102.11		118.45		156.82		178.29		180.75
Russell 2000	100.00		95.82		111.49		154.78		162.35		155.18
S&P Healthcare Equipment & Supplies	100.00		104.48		123.56		157.43		191.76		207.06

Copyright© 2016 S&P, a division of McGraw Hill Financial. All rights reserved.

Copyright© 2016 Russell Investment Group. All rights reserved.

________________________

* The S&P Healthcare Equipment & Supplies Index is a capitalization-weighted average index comprised of health care companies in the S&P 500 Index.

The graph assumes $100 invested on December 31, 2010 in the Common Shares of Invacare Corporation, S&P 500 Index, Russell 2000 Index and the S&P Healthcare Equipment & Supplies Index, including reinvestment of dividends, through December 31, 2015.

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The following table presents information with respect to repurchases of Common Shares made by the company during the three months ended December 31, 2015.

Period			Total Number of Shares  Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (2)
10/1/2015	-	10/31/15	—	$	—	—	2,453,978
11/1/2015	-	11/30/15	5,811	18.28		—	2,453,978
12/1/2015	-	12/31/15	—	—		—	2,453,978
Total			5,811	$	18.28	—	2,453,978

________________________ 

(1) All 5,811 shares repurchased between October 1, 2015 and December 31, 2015 were surrendered to the company by employees for minimum tax withholding purposes in conjunction with the vesting of restricted shares awarded to the employees under the company’s equity compensation plans.

(2) In 2001, the Board of Directors authorized the company to purchase up to 2,000,000 Common Shares, excluding any shares acquired from employees or directors as a result of the exercise of options or vesting of restricted shares pursuant to the company’s performance plans. The Board of Directors reaffirmed its authorization of this repurchase program on November 5, 2010, and on August 17, 2011 authorized an additional 2,046,500 shares for repurchase under the plan. To date, the company has purchased 1,592,522 shares under this program, with authorization remaining to purchase 2,453,978 shares. The company did not purchase any shares pursuant to this Board authorized program during 2015.

The company used a portion of the net proceeds of its offering of 5.00% convertible senior notes due 2021in February 2016 to repurchase $5,000,000 of the company's common shares in negotiated transactions with institutional investors in the offering. In February, 2016, the company repurchased a total of 390,320 Common Shares at $12.81 per share, which was the company's closing stock price on the pricing date of the offering.

The equity compensation plan information required under Item 201(d) of Regulation S-K is incorporated by reference to the information under the caption "Equity Compensation Plan Information" in the company's definitive Proxy Statement on Schedule 14A for the 2016 Annual Meeting of Shareholders.

Item 6.        Selected Financial Data.

The selected consolidated financial data set forth below with respect to the company’s consolidated statements of comprehensive income (loss), cash flows and shareholders’ equity for the fiscal years ended December 31, 2015, 2014 and 2013, and the consolidated balance sheets as of December 31, 2015 and 2014 are derived from the Consolidated Financial Statements included elsewhere in this Form 10-K or as adjusted to reflect the impact of discontinued operations. The consolidated statements of comprehensive income (loss), cash flows and shareholders’ equity data for the fiscal years ended December 31, 2012 and 2011 and consolidated balance sheet data for the fiscal years ended December 31, 2013, 2012 and 2011 are derived from the company’s previously filed Consolidated Financial Statements or as adjusted to reflect the impact of discontinued operations. The data set forth below should be read in conjunction with Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the company’s Consolidated Financial Statements and Notes thereto included elsewhere in this Form 10-K. The Balance Sheet, Other Data and Key Ratios reflect the impact of discontinued operations to the extent included in the Consolidated Balance Sheets and Consolidated Statement of Cash Flows.

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	2015 *			2014 **			2013 ***			2012 ****			2011 *****
	(In thousands, except per share and ratio data)
Earnings
Net Sales from continuing operations	$	1,142,338		$	1,270,163		$	1,334,505		$	1,415,818		$	1,466,092
Net Earnings (loss) from continuing operations	(26,450		)	(68,760		)	(54,334		)	(14,083		)	(26,684		)
Net Earnings from discontinued operations	260			12,690			87,385			15,910			22,571
Net Earnings (loss)	(26,190		)	(56,070		)	33,051			1,827			(4,113		)
Net Earnings (loss) per Share—Basic:
Net Earnings (loss) from Continuing Operations	(0.82		)	(2.15		)	(1.70		)	(0.45		)	(0.83		)
Net Earnings from Discontinued Operations	0.01			0.40			2.74			0.50			0.71
Net Earnings (loss) per Share—Basic	(0.81		)	(1.75		)	1.04			0.06			(0.13		)
Net Earnings (loss) per Share—Assuming Dilution:
Net Earnings (loss) from Continuing Operations	(0.82		)	(2.15		)	(1.70		)	(0.45		)	(0.83		)
Net Earnings from Discontinued Operations	0.01			0.39			2.73			0.50			0.70
Net Earnings (loss) per Share—Assuming Dilution	(0.81		)	(1.75		)	1.03			0.06			(0.13		)
Dividends per Common Share	0.05			0.05			0.05			0.05			0.05
Dividends per Class B Common Share	0.04545			0.04545			0.04545			0.04545			0.04545
Balance Sheet
Current Assets	$	362,121		$	405,987		$	419,539		$	567,949		$	528,770
Total Assets	838,143			963,731			1,096,434			1,262,294			1,281,054
Current Liabilities	247,644			290,232			276,165			299,735			287,939
Working Capital	114,477			115,755			143,374			268,214			240,831
Long-Term Debt	45,092			19,372			31,184			229,375			260,440
Other Long-Term Obligations	82,589			88,805			118,276			112,195			106,150
Shareholders’ Equity	462,818			565,322			670,809			620,989			626,525
Other Data
Research and Development Expenditures	$	18,677		$	23,149		$	24,075		$	23,851		$	27,556
Capital Expenditures	7,522			12,327			14,158			20,091			22,160
Depreciation and Amortization	19,430			32,789			36,789			38,593			38,883
Key Ratios
Return on Sales % from continuing operations	(2.3		)	(5.4		)	(4.1		)	(1.0		)	(1.8		)
Return on Average Assets %	(2.9		)	(5.4		)	2.8			0.1			(0.3		)
Return on Beginning Shareholders’ Equity %	(4.6		)	(8.4		)	5.3			0.3			(0.6		)
Current Ratio	1.5:1			1.4:1			1.5:1			1.9:1			1.8:1
Debt-to-Equity Ratio	0.10:1			0.04:1			0.07:1			0.38:1			0.42:1

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________________________

* Reflects charges related to restructuring from continuing operations of $1,971,000 ($1,843,000 after-tax expense or $0.06 per share assuming dilution), net warranty reversals of $2,325,000 ($2,325,000 after-tax expense or $0.07 per share assuming dilution related to three product recalls) and the positive impact of an intraperiod tax allocation associated with discontinued operations of $140,000 or $0.00 per share assuming dilution.

** Reflects charges related to restructuring from continuing operations of $11,112,000 ($10,096,000 after-tax expense or $0.32 per share assuming dilution), incremental warranty expense of $11,493,000 ($10,801,000 after-tax expense or $0.34 per share assuming dilution related to three product recalls), asset write-downs to intangible assets of $13,041,000 ($13,041,000 after-tax expense or $0.41 per share assuming dilution) and the positive impact of an intraperiod tax allocation associated with discontinued operations of $7,175,000 or $0.22 per share assuming dilution.

*** Reflects charges related to restructuring from continuing operations of $9,336,000 ($7,493,000 after-tax expense or $0.23 per share assuming dilution), incremental warranty expense of $7,264,000 ($7,170,000 after-tax expense or $0.22 per share assuming dilution related to the power wheelchair joystick recall), asset write-downs to intangible assets of $1,523,000 ($1,322,000 after-tax expense or $0.04 per share assuming dilution) and the positive impact of an intraperiod tax allocation associated with discontinued operations of $3,445,000 or $0.11 per share assuming dilution.

**** Reflects charges related to restructuring from continuing operations of $11,395,000 ($11,255,000 after-tax expense or $0.36 per share assuming dilution), a discrete 2012 tax expense related to prior years of $9,336,000 or $0.30 per share assuming dilution which is a non-cash charge in 2012 for a matter that was under audit and contested by the company, early debt extinguishment charges of $312,000 ($312,000 after-tax expense or $0.01 per share assuming dilution), asset write-downs to intangible assets of $773,000 ($698,000 after-tax expense or $0.02 per share assuming dilution) and the positive impact of an intraperiod tax allocation associated with discontinued operations of $7,126,000 or $0.23 per share assuming dilution.

***** Reflects asset write-downs for goodwill and intangibles of $49,480,000 ($48,719,000 after tax or $1.52 per share assuming dilution), loss on debt extinguishment including debt finance charges and associated fees of $24,200,000 ($24,200,000 after tax or $0.76 per share assuming dilution) as a result of the company’s extinguishment of higher interest rate debt, restructuring charge of $10,534,000 ($10,263,000 after tax or $0.32 per share assuming dilution) and a tax benefit in Germany of $4,947,000 ($4,947,000 after tax or $0.15 per share assuming dilution).

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Item 7.        Management's Discussion and Analysis of Financial Condition and Results of Operations.

OUTLOOK

Invacare is a company in the midst of a transformation in a growing market that has its own challenges and opportunities. To capitalize on this potential, in 2015 the company established two long-term objectives intended to ensure it becomes sustainably competitive and profitable. The company's first objective is to excel at designing, producing and distributing products based on a thorough application of the principles of quality. Secondly, the company will apply its resources on specific activities that it believes will drive greater profit and cash.

The focus on quality is paramount. By embracing quality in all aspects of the company’s activities, the company believes that its products will be better aligned to customer needs, more quickly brought to market and ultimately will result in a better customer experience and economic return. The company expects its investments in quality to be a competitive advantage.

Through a legacy of acquisition and organic growth, the company had expanded its product portfolio to be one of the biggest in the industry. Products range from highly differentiated clinically complex products with proprietary advantages to basic aids for daily living. This has historically been an advantage, as customers have desired to work with companies that have the broadest portfolio to simplify their purchasing and make their own offering more consistent. More recently, two challenges have emerged that make success with this strategy increasingly difficult. As a result of economic pressures, markets have been reshaped with lower healthcare reimbursement to pay the company’s customers for its products; commercial channels have been disintermediated and consolidated; and there are more competitors and customers with easier access to low cost supply alternatives.

As a specific example of reimbursement reductions, the company’s U.S. customers have been exposed to the National Competitive Bidding (NCB) program from the Centers for Medicare and Medicaid Services (CMS), which began in 2011 and will continue with major reimbursement reductions in 2016. These are precedent-setting price reductions, which are expected to influence other non-CMS payors’ reimbursement rates in these same categories. Because the company sells its products to medical equipment providers who in turn seek reimbursement, and because the company does not itself seek direct reimbursement, the company does not know which specific products, local markets or share of sales are affected by any particular payor. However, it is useful to estimate the effect the NCB program may have, because it is potentially of significant influence on the company’s customers.

The company estimates that, for the full year of 2015, approximately $263,000,000 in net sales of its U.S. HME equipment business, the major division within the North America/HME segment, were sales of products sold to homecare providers that were included in NCB product categories. When the company's products are ordered by homecare providers, the company is not informed as to whether the provider is paid for the product through Medicare, Medicaid or private pay reimbursement or through direct cash sales. However, the company estimates historically that approximately 40% of HME providers' revenues on average are from sales paid by Medicare. Additionally, it is estimated that the first 100 metropolitan statistical areas (MSAs) that implemented NCB account for approximately 50% of Medicare's spending on durable medical equipment. Taking the $263,000,000 of U.S. HME net sales for the full year of 2015 of NCB bid-categorized product and applying the previously mentioned 40% and then the 50% estimates, the company's revenues from products potentially exposed to NCB could be approximately $52,600,000. This estimate does not include other potential pricing pressures that also could impact homecare providers from other payors. The company also continues to closely monitor the 2016 rural roll-out of NCB that expanded to the remaining Medicare population that had not yet been impacted by NCB starting in January. The reimbursement reductions to the rural areas are scheduled to be completed in July 2016. Further reductions may occur if private payors elect to adopt their own reimbursement changes. Regardless, judicious healthcare spending is a continuous pressure in this industry driving the need for ongoing improvement for cost-effective supply of clinically relevant solutions.

At the same time reimbursement pressures persist, the standards of production, record-keeping and product performance have increased the cost of each active product line a company markets. These opposing effects have led the company to examine its vast product portfolio and its many competing priorities. A strategy based on having the broadest product portfolio without regard to clinical utility is no longer a competitive advantage. As a result, the company is beginning to shift its focus to areas that have a greater clinical impact, where the company has an opportunity to create a sustainable competitive advantage with its investment in technology and to excel by applying high standards to product features, performance and production methods. The company will focus on areas where it believes better returns can be made for its resources and will look for more efficient ways to convey lower margin less differentiated products or seek alternatives in those areas. This may result in periods of lower net sales, but with improved contribution from a higher gross margin as a result of a favorable mix of products.

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As the company continues to shift its strategic focus, it expects its financial results will continue to be pressured in 2016 as a result of its consent decree with the United States Food and Drug Administration (FDA) affecting operations at the Corporate and Taylor Street facilities in Elyria, Ohio. The consent decree limits production at the Taylor Street manufacturing facility to orders meeting certain documentation requirements. See Item 3, Legal Proceedings. Regarding products manufactured at the Taylor Street facility, which have been impacted by the company's consent decree with the FDA and sold primarily in the North America/HME segment, net sales were approximately $41,600,000 in 2015 compared to approximately $43,200,000 in 2014. Even if the company receives the FDA notification that it may resume full operations at its Taylor Street facility, it is uncertain as to whether, or how quickly the company would be able to rebuild net sales, irrespective of market conditions, to typical historical levels such as when Taylor Street production accounted for approximately $172,000,000 and $147,000,000 in net sales in 2011 and 2012, respectively. The company ultimately expects a positive outcome from the company’s investments in quality improvements, and it is optimistic about its ability to grow its results from the impacted facilities over time. Additionally, the company sees opportunities to develop other complex rehabilitation solutions from its subsidiaries that also operate in this space.

As part of the company’s strategic priorities of establishing a quality culture and driving greater profit and cash, the company will take steps to deepen the deployment of quality initiatives throughout the company and it will accelerate the transformation and, it anticipates, the growth of its business. The company plans to continue investments in global quality improvements, which it expects will be a competitive advantage. The company also expects to increase the size of its sales force and support it to be more focused on clinically complex products, including complex rehabilitation technology, therapeutic support surfaces and wound prevention, safe patient handling, respiratory therapy technology, and bariatric products. This change will require more training, an expanded clinical staff and more investment in commercial and marketing activities to increase awareness and provide more access to these products. The company expects its accounts receivable balance to increase throughout its transformation, as there is a longer order-to-cash cycle on clinically complex products, which is likely to have a negative impact on cash flow. The company may also explore streamlining its operations and better aligning its infrastructure to efficiently deliver an improved mix of clinically complex products. The company will look for opportunities to invest in clinically differentiating technology and expertise. To finance this transformation, grow related working capital, fund ongoing quality initiatives, and to support the company through historic seasonal performance cycles and continued foreign currency pressure, the company completed the issuance in February 2016 of $130,000,000 aggregate principal amount of 5.00% convertible senior notes, which mature in 2021. See “Subsequent Events” in the Notes to the Condensed Consolidated Financial Statements included in this Annual Report on Form 10-K.

On balance, the company sees opportunities to grow, continue its transformation and make progress against industry headwinds and strong competition for long-term results. See “Contingencies” in the Notes to the Condensed Consolidated Financial Statements and “Forward-Looking Statements” included in this Annual Report on Form 10-K.

DISCONTINUED AND DIVESTED OPERATIONS

On December 21, 2012, in order to focus on its core equipment product lines, the company entered into an agreement to sell ISG and determined on that date that the "held for sale" criteria of ASC 360-10-45-9 were met. On January 18, 2013, the company completed the sale of the ISG medical supplies business to AssuraMed, Inc. for a purchase price of $150,800,000 in cash, which was subject to final post-closing adjustments. ISG had been operated on a stand-alone basis and reported as a reportable segment of the company. The company recorded a gain of $59,402,000 pre-tax in 2013 which represented the excess of the net sales price over the book value of the assets and liabilities of ISG, excluding cash. The sale of this business is dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the first quarter of 2013. In 2013, the net sales of the discontinued operation of ISG were $18,498,000 and earnings before income taxes were $402,000.

On August 6, 2013, the company sold Champion, its domestic medical recliner business for dialysis clinics, to Champion Equity Holdings, LLC for $45,000,000 in cash, which was subject to final post-closing adjustments. Champion had been operated on a stand-alone basis and reported as part of the IPG segment of the company. The company recorded a gain of $22,761,000 pre-tax in the third quarter of 2013, which represented the excess of the net sales price over the book value of the assets and liabilities of Champion. The sale of this business was dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the third quarter of 2013. The gain recorded by the company reflects the company's estimated final purchase adjustments. See "Discontinued Operations" in the Notes to the Condensed Financial Statements included in this Form 10-K for the assets and liabilities sold.

In 2013, the net sales of the discontinued operation of Champion were $15,857,000 and earnings before income taxes were $3,156,000. Results for Champion include an interest expense allocation from continuing operations to discontinued operations of $449,000 in 2013, as proceeds from the sale were required to be utilized to pay down debt. The interest allocation was based on the net proceeds assumed to pay down debt applying the company's average interest rates for the periods presented.

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In addition, in accordance with ASC 350, when a portion of a reporting entity that constitutes a business is disposed of, goodwill associated with that business should be included in the carrying amount of the net assets of the business sold in determining the gain or loss on the disposal. As such, the company allocated additional goodwill of $16,205,000 to Champion from the continuing operations of the IPG segment based on the relative fair value of Champion as compared to the remaining IPG reporting unit.

On August 29, 2014, the company sold Altimate Medical, Inc. (Altimate), its manufacturer of stationary standing assistive devices for use in patient rehabilitation, to REP Acquisition Corporation for $23,000,000 in cash, which was subject to final post-closing adjustments. Altimate had been operated on a stand-alone basis and reported as part of the North America/HME segment of the company. The company recorded a gain of $17,069,000 pre-tax in the third quarter of 2014, which represented the excess of the net sales price over the book value of the assets and liabilities of Altimate. The sale of this business was dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the third quarter of 2014. The gain recorded by the company reflects the company's final purchase adjustments.

The net sales of the Altimate discontinued operations were $11,778,000 and $17,854,000 for 2014 and 2013, respectively, and earnings before income taxes were $2,796,000 and $5,118,000, respectively for the same periods. Results for Altimate include an interest expense allocation from continuing operations to discontinued operations of $202,000 and $323,000 for 2014 and 2013, respectively, as proceeds from the sale were required to be utilized to pay down debt. The interest allocation was based on the net proceeds assumed to pay down debt applying the company's average interest rates for the periods presented. See "Discontinued Operations" in the Notes to the Condensed Financial Statements included in this Form 10-K for the assets and liabilities sold.

The company recorded total expenses related to the discontinued operations noted above of $8,801,000, of which $8,405,000 were paid as of December 31, 2015.

The company recorded an incremental intra-period tax allocation expense to discontinued operations for 2014 and 2013 representing the cumulative intra-period allocation expense to discontinued operations based on the company's domestic taxable loss related to continuing operations for 2014 and 2013.

The company has classified ISG, Champion and Altimate as a discontinued operations for all periods presented.

On July 2, 2015, the company sold its rentals businesses to Joerns Healthcare Parent, LLC, for approximately $15,500,000 in cash, which was subject to final post-closing adjustments. The rentals businesses had been operated on a stand-alone basis and reported as part of the IPG segment of the company. The company recorded a pre-tax gain of approximately $24,000 in the third quarter of 2015, which represents the excess of the net sales price over the book value of the assets and liabilities of the rentals businesses, as of the date of completion of the disposition. The company recorded expenses related to the sale of the rentals businesses totaling $1,792,000, of which $1,244,000 have been paid as of December 31, 2015. The sale of the rentals businesses was not dilutive to the company's results. The company utilized the net proceeds from the sale to reduce debt outstanding under its credit agreement. The company determined that the sale of the rentals businesses did not meet the criteria for classification as a discontinued operation in accordance with ASU 2014-08. The rentals businesses were treated as held for sale as of June 30, 2015 until sold on July 2, 2015. As a result, the December 31, 2014 Balance Sheet was restated to reflect this treatment. As such, the results of the rentals businesses are included in the Results from Continuing Operations discussion below.

RESULTS OF CONTINUING OPERATIONS

2015 Versus 2014

Net Sales. Consolidated net sales for 2015decreased10.1% for the year, to $1,142,338,000 from $1,270,163,000 in 2014. Foreign currency translation decreased net sales by 8.7 percentage points. Constant currency net sales decreased 1.4% compared to 2014. Higher constant currency net sales in the Europe and Asia/Pacific segments were offset by lower constant currency net sales in the North America/HME and IPG segments. Constant currency net sales for the company, excluding the impact of the divested rentals businesses in the IPG segment, were flat for the year ended December 31, 2015, compared to the prior year. Constant currency net sales is a non-GAAP financial measure - see "Business Segment Net Sales" on page I-52.

Europe

European net sales decreased12.1% in 2015 compared to the prior year to $536,463,000 from $610,555,000 as foreign currency translation decreased net sales by 15.6 percentage points. Constant currency net sales increased3.5% compared to 2014 principally due to increases in mobility and seating, respiratory and lifestyle products.

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North America/Home Medical Equipment (North America/HME)

North America/HME net sales decreased6.6% in 2015 versus the prior year to $474,196,000 from $507,867,000 with foreign currency translation decreasing net sales by 1.0 percentage point. Constant currency net sales decreased 5.6% compared to the prior year, as increases in mobility and seating products were more than offset by declines in respiratory and lifestyle products. Net sales in the mobility and seating product category continue to be impacted by the FDA consent decree, which limits production of custom power wheelchairs and seating systems at the Taylor Street manufacturing facility to products having properly completed verification of medical necessity (VMN) documentation. The VMN is a signed document from a clinician, and in some instances a physician, that certifies that the product is deemed medically necessary for a particular patient's condition, which cannot be adequately addressed by another manufacturer's product or which is a replacement of the patient's existing product. In an effort to position the company for improved sales results in the future, during 2015, the company began a transformation of its generalist sales force to one more focused on clinically complex products, which includes the mobility and seating product category. As a result, lifestyle and respiratory product net sales were de-emphasized contributing to lower net sales for these products.

Institutional Products Group (IPG)

IPG net sales decreased15.2% in 2015 over the prior year to $87,137,000 from $102,796,000 as foreign currency translation decreased sales by 0.8 of a percentage point. Excluding the net sales impact of the divested rentals businesses, constant currency net sales increased3.7% driven primarily by increases in beds and interior design projects. These increases were partially offset by declines in therapeutic support surfaces.

Asia/Pacific

Asia/Pacific net sales decreased9.0% in 2015 from the prior year to $44,542,000 from $48,945,000. Foreign currency translation decreased net sales by 16.5 percentage points. Constant currency net sales increased7.5% primarily due to increases at the company's New Zealand and Australian distribution businesses, and at the company's subsidiary that produces microprocessor controllers. Changes in exchange rates, particularly with the euro and U.S. dollar, have had, and may continue to have, a significant impact on sales in this segment.

Gross Profit. Consolidated gross profit as a percentage of net sales was 27.4% in 2015 as compared to 27.3% in 2014. The 2015 gross margin reflects a warranty expense reversal related to recalls of $2,325,000 or 0.2 of a percentage point, recorded in the North America/HME segment. The company's warranty reserve is subject to adjustment as new developments change the company's estimates. The 2014 gross margin reflected an incremental warranty expense for three previously disclosed recalls of $11,493,000 or 0.9 of a percentage point. The incremental warranty expense was recorded in the North America/HME, Europe and Asia/Pacific reporting segments. Excluding the impact of the warranty expense amounts noted previously, the gross margin as a percentage of net sales was 27.2% in 2015 as compared to 28.2% in 2014. The margin decrease was principally related to unfavorable sales mix, foreign exchange and the result of the divested rentals businesses. The rentals businesses had a higher than average gross margin as a percentage of net sales compared to the overall company. Gross profit as a percentage of net sales for the North America/HME and Asia/Pacific segments was favorable as compared to the prior year with the Europe and IPG segments unfavorable compared to the prior year.

Gross profit in Europe as a percentage of net sales decreased 1.8 percentage points in 2015 from the prior year. The decrease in margin was principally due to unfavorable foreign exchange and negative sales mix, partially offset by reduced warranty expense. The 2014 gross margin reflected an incremental warranty expense of $3,395,000 or 0.6 of a percentage point for a previously disclosed recall.

North America/HME gross profit as a percentage of net sales increased 4.0 percentage points in 2015 from the prior year. The increase in margins was principally due to favorable warranty, sales mix and manufacturing costs. The 2015 gross margin reflects a warranty recall expense reversal of $2,325,000 or 0.5 of a percentage point for three recalls compared to incremental warranty recall expense of $6,833,000 or 1.3 of a percentage point in 2014.

IPG gross profit as a percentage of net sales decreased 9.9 percentage points in 2015 from the prior year. The decrease in margin is primarily attributable to the sale of the rentals businesses (5.6 percentage points) and increased freight costs.

Gross profit in Asia/Pacific as a percentage of net sales increased 5.4 percentage points in 2015 from the prior year. The increase was primarily as a result of reduced warranty expense and a favorable manufacturing costs. The 2014 gross margin included an incremental warranty expense for the power wheelchair joystick recall of $1,265,000, or 2.6 percentage points.

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See “Current Liabilities” in the Notes to the Consolidated Financial Statements included elsewhere in this report for the total provision amounts and a reconciliation of the changes in the warranty accrual.

Selling, General and Administrative. Consolidated selling, general and administrative (SG&A) expenses as a percentage of net sales were 28.0% in 2015 and 30.2% in 2014. The overall dollar decrease was $64,066,000, or 16.7%, with foreign currency translation decreasing expense by $23,891,000 or 6.2% percentage points. Excluding the impact of foreign currency translation, SG&A expenses decreased $40,175,000, or 10.5%. This decrease is primarily attributable to the sale of the rentals businesses in the third quarter of 2015 which lowered SG&A expenses by $15,626,000 and by reduced consulting expense (including regulatory and compliance costs related to quality system improvements), employment costs and product liability expense. These were partially offset by a $4,031,000 write-off of costs associated with a canceled legacy software program based on a change in the North America/HME IT strategy.

European SG&A expenses decreased by 15.9%, or $22,254,000, in 2015 compared to 2014. Foreign currency translation decreased expense by approximately $18,709,000 or 13.4 percentage points. Excluding the foreign currency translation impact, SG&A expenses decreased by $3,545,000, or 2.5%, primarily in depreciation and amortization expense partially offset by increased employment costs.

SG&A expenses for North America/HME decreased9.8%, or $15,296,000, in 2015 compared to 2014 with foreign currency translation decreasing expense by $2,313,000 or 1.5 percentage points. Excluding the foreign currency translation, SG&A expense decreased $12,983,000, or 8.3%, due principally to reduced employment costs, product liability expense and consulting expense, including lower regulatory and compliance costs related to quality systems improvements. These were partially offset by a $4,031,000 write-off of costs associated with a canceled legacy software program based on a change in the North America/HME IT strategy. In addition, 2014 included an incremental expense of $958,000 related to the retirement of an executive officer of the company.

SG&A expenses for IPG decreased by 43.2%, or $17,898,000, in 2015 compared to 2014 with foreign currency translation having an immaterial impact. Excluding the impact of foreign currency translation, SG&A expenses decreased by $17,905,000, or 43.2%, primarily due to the sale of the rentals businesses which reduced SG&A expenses by $15,626,000 as well as reduced employment costs.

Asia/Pacific SG&A expenses decreased21.5%, or $4,580,000, in 2015 compared to 2014. Foreign currency translation decreased expense by $2,876,000 or 13.5 percentage points. Excluding the foreign currency translation impact, SG&A expenses decreased $1,704,000, or 8.0%, principally as a result of reduced employment costs and depreciation expense.

SG&A expenses related to the Other Segment decreased by 16.3% or $4,038,000 in 2015 as compared to 2014. The decrease is attributable to lower legal and professional costs as well as decreased employment costs. In addition, 2014 included an incremental expense of $1,800,000 related to the retirement of an executive officer of the company.

Asset write-downs to intangible assets. In accordance with ASC 350, Intangibles - Goodwill and Other, the company reviews intangibles for impairment. As a result of the company's 2015 intangible review, the company did not recognize any intangible write-down charges.

As a result of the company's review of intangible assets for 2014, the company recognized intangible write-down charges in the IPG segment of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement of $215,000 as the actual and remaining cash flows associated with the intangibles were less than the cash flows originally used to value the intangibles, primarily driven by reduced net sales. The after-tax and pre-tax impairment amounts were the same for each of the above impairments.

Charge Related to Restructuring Activities. The company's restructuring charges 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 impacted by the FDA consent decree. 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.

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Charges for the year ended December 31, 2015 totaled $1,971,000 including charges for severance ($1,678,000) and charges principally related to a building lease termination primarily in the North America/HME segment ($293,000). Severance charges were incurred in the North America/HME segment ($1,069,000), Europe segment ($510,000), IPG segment ($73,000) and Asia/Pacific segment ($26,000) related to the elimination of certain positions as a result of general restructuring efforts. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. Payments for the year ended December 31, 2015 were $3,723,000 and were funded with operating cash flows and cash on hand. The majority of the 2015 charges are expected to be paid out within the next 12 months.

Charges for the year ended December 31, 2014 totaled $11,112,000 including charges for severance ($9,841,000), other charges in IPG and Europe ($1,286,000) principally related to building write-downs and lease termination cost reversals ($15,000). Severance charges were incurred in the North America/HME segment ($4,404,000), Other ($2,978,000), IPG segment ($1,163,000), Asia/Pacific segment ($769,000) and Europe segment ($527,000). The North America/HME segment severance charges were principally related to additional positions eliminated due to lost sales volumes resulting from the impact of the FDA consent decree. The Other severance charges related to the elimination of two senior corporate executive positions. IPG segment severance charges related principally to the closure of the London, Ontario facility. Europe and Asia/Pacific severance charges related to the elimination of certain positions as a result of general restructuring efforts. The costs related to the building write-downs related to two plant closures. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. Payments for the year ended December 31, 2014 were $11,131,000 and were funded with operating cash flows and the company's revolving credit facility. The majority of the 2014 charges have been paid out as of December 31, 2015 except for a majority of the charges related to the elimination of two senior corporate executive positions.

To date, the company's liquidity has not been materially impacted; however, the company's disclosure in Liquidity and Capital Resources highlights risks that could negatively impact the company's liquidity. See also "Charges Related to Restructuring Activities" in the Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K.

Interest. Interest expense decreased to $2,911,000 in 2015 from $3,039,000 in 2014, representing a 4.2%decrease. This decrease was attributable primarily to lower average borrowings in 2015 versus 2014, despite an increase in interest expense related to capital leases. Interest income in 2015 was $165,000 as compared to $507,000 in 2014, primarily due to interest income earned in Europe on a VAT receivable in 2014 that did not occur in 2015.

Income Taxes. The company had an effective tax rate of 125.3% in 2015 compared to an expected benefit of 35% on the continuing operations pre-tax loss and 8.8% in 2014 compared to an expected benefit of 35% on the pre-tax loss from continuing operations. The company's effective tax rate in 2015 was unfavorable to the expected U.S. federal statutory rate benefit due to the negative impact of the company not being able to record tax benefits related to losses in countries which had tax valuation allowances for the year, more than offsetting the benefit of foreign income taxed at rates below the U.S. statutory rate. The company's effective tax rate in 2014 was unfavorable to the expected U.S. federal statutory rate benefit due to the negative impact of the company not being able to record tax benefits related to losses in countries which had tax valuation allowances for the year, except in the U.S. where a benefit of $7,175,000 was recognized as an intra-period allocation with discontinued operations against a portion of the domestic taxable loss from continuing operations, more than offsetting the benefit of foreign income taxed at rates below the U.S. statutory rate. See “Income Taxes” in the Notes to the Consolidated Financial Statements included elsewhere in this report for more detail.

Research and Development. The company continues to invest in research and development activities. The company dedicates funds to applied research activities to ensure that new and enhanced design concepts are available to its businesses. Research and development expenditures, which are included in costs of products sold, decreased to $18,677,000 in 2015 from $23,149,000 in 2014. The expenditures, as a percentage of net sales, were 1.6% and 1.8% in 2015 and 2014, respectively.

2014 Versus 2013

Net Sales. Consolidated net sales for 2014 decreased 4.8% for the year, to $1,270,163,000 from $1,334,505,000 in 2013. Foreign currency translation increased net sales by 0.2 of a percentage point. Constant currency net sales decreased 5.0% as a result of declines in the North America/HME, IPG and Asia/Pacific segments being offset by increases in the European segment.

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Europe

European net sales increased 4.7% in 2014 compared to the prior year to $610,555,000 from $583,143,000 as foreign currency translation increased net sales by 1.1 percentage points. Constant currency net sales increased 3.6% principally due to increases in lifestyle and mobility and seating products, which were partially offset by declines in respiratory products.

North America/Home Medical Equipment (North America/HME)

North America/HME net sales decreased 13.8% in 2014 versus the prior year to $507,867,000 from $589,240,000 with foreign currency translation decreasing net sales by 0.5 of a percentage point. The constant currency net sales decrease of 13.3% was driven by declines in all product categories. The net sales decline in respiratory products was primarily attributable to a significant shipment of Invacare^® HomeFill^® oxygen systems to a large national account in 2013 that did not repeat in 2014. The net sales decline in lifestyle products was primarily impacted by a shift toward lower cost products for certain lifestyle products that are subject to the Centers for Medicare and Medicaid Services' National Competitive Bidding program and pre- and post-payment audits. The net sales decline in mobility and seating products was primarily driven by reduced net sales of scooter products, which the company decided to exit domestically. In addition, the mobility and seating product category continued to be impacted by the FDA consent decree, which limits production of custom power wheelchairs and seating systems at the Taylor Street manufacturing facility to products having properly completed verification of medical necessity (VMN) documentation. The VMN is a signed document from a clinician, and in some instances a physician, that certifies that the product is deemed medically necessary for a particular patient's condition, which cannot be adequately addressed by another manufacturer's product or which is a replacement of the patient's existing product.

Institutional Products Group (IPG)

IPG net sales decreased 8.5% in 2014 over the prior year to $102,796,000 from $112,290,000 with foreign currency translation decreasing sales by 0.3 of a percentage point. The constant currency net sales decrease of 8.2% was driven primarily by declines in all product categories except therapeutic support surfaces and patient transport products.

Asia/Pacific

Asia/Pacific net sales decreased 1.8% in 2014 from the prior year to $48,945,000 from $49,832,000. Foreign currency translation decreased net sales by 1.4 percentage points. Constant currency net sales decreased 0.4% largely due to declines at the company's subsidiary that produces microprocessor controllers primarily related to its decision to exit the contract manufacturing business for customers outside of the healthcare industry. This was partially offset by growth in the company's Australian distribution business. Changes in exchange rates, particularly with the euro and U.S. dollar had a significant impact on sales in this segment.

Gross Profit. Consolidated gross profit as a percentage of net sales was 27.3% in 2014 as compared to 27.5% in 2013. The margin decline was principally related to reduced volumes, sales mix favoring lower margin product lines and lower margin customers and an incremental warranty expense related to three recalls. Gross profit as a percentage of net sales for the Europe, IPG and Asia/Pacific segments was favorable as compared to the prior year with the North America/HME segment unfavorable compared to the prior year. The 2014 gross margin reflected an incremental warranty expense for three previously disclosed recalls of $11,493,000 or 0.9 of a percentage point. The incremental warranty expense was recorded in the North America/HME, Europe and Asia/Pacific reporting segments. The company's warranty reserve is subject to adjustment as new developments change the company's estimates. The 2013 gross margin reflected an incremental warranty expense for a power wheelchair joystick recall of $7,264,000 or 0.5 of a percentage point. The incremental warranty expense was recorded in the North America/HME and Asia/Pacific reporting segments. In addition, the 2013 gross margin benefited by $1,389,000 or 0.1 of a percentage point, related to an amended value added tax (VAT) filing recognized in the European segment.

Gross profit in Europe as a percentage of net sales increased 1.0 percentage point in 2014 from the prior year. The increase in margin was principally due to favorable customer and product mix and lower product costs partially offset by increased warranty and freight expense. The 2014 gross margin reflected an incremental warranty expense of $3,395,000 pre-tax or 0.6 of a percentage point for a previously disclosed recall. Gross margin in 2013 benefited by $1,389,000 or 0.2 of a percentage point, related to an amended VAT filing recognized in the fourth quarter of 2013.

North America/HME gross profit as a percentage of net sales decreased 2.5 percentage points in 2014 from the prior year. The decline in margins was principally due to an unfavorable sales mix favoring lower margin products, increased warranty expense and asset write-offs attributable to canceled product launches. The 2014 gross margin reflected an incremental recall expense of $6,833,000 or 1.3 of a percentage point for three recalls compared to $2,625,000 or 0.4 of a percentage point for the joystick recall initiated in 2013.

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IPG gross profit as a percentage of net sales increased 0.9 of a percentage point in 2014 from the prior year. The increase in margin was primarily attributable to lower R&D and warranty expense.

Gross profit in Asia/Pacific as a percentage of net sales increased 2.4 percentage points in 2014 from the prior year. The increase was primarily as a result of reduced warranty expense and a favorable product mix related to the company's decision to exit the contract manufacturing business for customers outside of the healthcare industry partially offset by unfavorable absorption of fixed costs at the company's subsidiary which produces microprocessor controllers. The 2014 gross margin reflected an incremental warranty expense for the power wheelchair joystick recall of $1,265,000 pre-tax, or 2.6 percentage points compared an incremental warranty expense for the power wheelchair joystick recall of $4,639,000 pre-tax, or 9.3 percentage points, recorded in 2013.

See “Current Liabilities” in the Notes to the Consolidated Financial Statements included elsewhere in this report for the total provision amounts and a reconciliation of the changes in the warranty accrual.

Selling, General and Administrative. Consolidated selling, general and administrative (SG&A) expenses as a percentage of net sales were 30.2% in 2014 and 29.8% in 2013. The overall dollar decrease was $13,419,000, or 3.4%, with foreign currency translation increasing expense by $85,000. Excluding the impact of foreign currency translation, SG&A expenses decreased $13,504,000, or 3.4%. This decrease was primarily attributable to reduced employment, bad debt and consulting expense, including lower regulatory and compliance costs related to quality systems improvements.

European SG&A expenses increased by 5.2%, or $6,917,000, in 2014 compared to 2013. Foreign currency translation increased expense by approximately $1,569,000 or 1.2 percentage points. Excluding the foreign currency translation impact, SG&A expenses increased by $5,348,000, or 4.0%, primarily due to higher employment costs.

SG&A expenses for North America/HME decreased 11.2%, or $19,626,000, in 2014 compared to 2013 with foreign currency translation decreasing expense by $1,009,000 or 0.6 of a percentage point. Excluding the foreign currency translation, SG&A expense decreased $18,617,000, or 10.6%, due principally to reduced employment, bad debt and consulting expense, including lower regulatory and compliance costs related to quality systems improvements.

SG&A expenses for IPG decreased by 6.5%, or $2,862,000, in 2014 compared to 2013 with foreign currency translation decreasing expense by $144,000, or 0.3 of a percentage point. Excluding the impact of foreign currency translation, SG&A expenses decreased by $2,718,000, or 6.2%, primarily due to reduced employment costs. 

Asia/Pacific SG&A expenses decreased 4.7%, or $1,059,000, in 2014 compared to 2013. Foreign currency translation decreased expense by $331,000 or 1.5 percentage points. Excluding the foreign currency translation impact, SG&A expenses decreased $728,000, or 3.2%, principally as a result of reduced associate costs and depreciation expense.

SG&A expenses related to the Other Segment increased by 14.9% or $3,211,000 in 2014 as compared to 2013. The increase is attributable to increased employment costs including $1,800,000 related to the retirement of an executive officer of the company.

Asset write-downs to intangible assets. In accordance with ASC 350, Intangibles - Goodwill and Other, the company reviews intangibles for impairment. As a result of the company's 2014 intangible review, the company recognized intangible write-down charges in the IPG segment of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement of $215,000 as the actual and remaining cash flows associated with the intangibles were less than the cash flows originally used to value the intangibles, primarily driven by reduced net sales. The after-tax and pre-tax impairment amounts were the same for each of the above impairments.

As a result of the company's 2013 intangible impairment review, the company recognized intangible write-down charges of $1,523,000 comprised of trademarks with indefinite lives impairment of $568,000, a trademark with a definite life impairment of $123,000, customer list impairment of $442,000 and developed technology impairment of $223,000 all recorded in the IPG segment and a customer list impairment of $167,000 recorded in the North America/HME segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the indefinite-lived trademark impairments in the IPG segment, which were $496,000 after-tax.

Charge Related to Restructuring Activities. The company's restructuring charges 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 segment impacted by the FDA consent decree. While the company's

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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.

Charges for the year ended December 31, 2014 totaled $11,112,000 including charges for severance ($9,841,000), other charges in IPG and Europe ($1,286,000) principally related to building write-downs and lease termination cost reversals ($15,000). Severance charges were incurred in the North America/HME segment ($4,404,000), Other ($2,978,000), IPG segment ($1,163,000), Asia/Pacific segment ($769,000) and Europe segment ($527,000). The North America/HME segment severance was principally related to additional positions eliminated due to lost sales volumes resulting from the impact of the FDA consent decree. The Other severance related to the elimination of two senior corporate executive positions. IPG segment severance related principally to the closure of the London, Ontario facility. Europe and Asia/Pacific severance related to the elimination of certain positions as a result of general restructuring efforts. The costs related to the building write-downs related to two plant closures. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. Payments for the year ended December 31, 2014 were $11,131,000 and were funded with operating cash flows and the company's revolving credit facility. The majority of the 2014 charges are expected to be paid out within the next 12 months.

Charges for the year ended December 31, 2013 totaled $9,336,000, including charges for severance ($8,282,000), lease termination costs ($698,000) and other miscellaneous charges ($356,000). Severance charges were primarily incurred in the North America/HME segment ($5,405,000), Europe segment ($1,640,000) and Asia/Pacific segment ($970,000). The charges were incurred as a result of the elimination of various positions as part of the company's globalization initiatives. North America/HME segment severance was principally related to positions eliminated due to lost sales volumes resulting from the impact of the FDA consent decree. In Europe, severance was incurred for elimination of certain sales and supply chain positions. In Asia/Pacific, severance was principally incurred at the company's subsidiary, which produces microprocessor controllers, as a result of the company's decision in 2012 to cease the contract manufacturing business for companies outside of the healthcare industry. The lease termination costs were principally related to Australia as a result of the restructuring announced in 2012. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. Payments for the year ended December 31, 2013 totaled were $11,844,000 and were funded with operating cash flows and the company's revolving credit facility. The 2013 charges have been paid out.

Interest. Interest expense decreased to $3,039,000 in 2014 from $3,078,000 in 2013, representing a 1.3% decrease. This decrease was attributable primarily to debt reduction during the year as proceeds from the sale of a business were utilized to reduce debt, which was principally offset by higher borrowing rates and reduced supplier cash discounts. Interest income in 2014 was $507,000 as compared to $384,000 in 2013, primarily due to interest income earned in Europe on a VAT receivable.

Income Taxes. The company had an effective tax rate of 8.8% in 2014 compared to an expected benefit of 35% on the continuing operations pre-tax loss and 25.0% in 2013 compared to an expected benefit of 35% on the pre-tax loss from continuing operations. The company's effective tax rate in 2014 was unfavorable to the expected U.S. federal statutory rate benefit due to the negative impact of the company not being able to record tax benefits related to losses in countries which had tax valuation allowances for the year, except in the U.S. where a benefit of $7,175,000 was recognized as an intra-period allocation with discontinued operations against a portion of the domestic taxable loss from continuing operations, more than offsetting the benefit of foreign income taxed at rates below the U.S. statutory rate. The company's effective tax rate in 2013 was unfavorable to the expected U.S. federal statutory rate benefit due to the negative impact of the company not being able to record tax benefits related to losses in countries which had tax valuation allowances for the year, except in the U.S. where a benefit of $3,445,000 was recognized as an intra-period allocation with discontinued operations, more than offsetting the benefit of foreign income taxed at rates below the U.S. statutory rate. In 2013, the company's losses without benefit and valuation allowances existed in the United States, Australia and New Zealand, and for 2014 also existed for one company in Switzerland. During 2013 a Danish valuation allowance of $390,000 was reversed due to a pattern of profitability. See “Income Taxes” in the Notes to the Consolidated Financial Statements included elsewhere in this report for more detail.

Research and Development. Research and development expenditures, which are included in costs of products sold, increased to $23,149,000 in 2014 from $24,075,000 in 2013. The expenditures, as a percentage of net sales, were 1.8% and 1.8% in 2014 and 2013, respectively.

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INFLATION

Although the company cannot determine the precise effects of inflation, management believes that inflation does continue to have an influence on the cost of materials, salaries and benefits, utilities and outside services. The company attempts to minimize or offset the effects through increased sales volumes, capital expenditure programs designed to improve productivity, alternative sourcing of material and other cost control measures.

LIQUIDITY AND CAPITAL RESOURCES

The company continues to maintain an adequate liquidity position through its unused bank lines of credit (see Long-Term Debt in the Notes to Consolidated Financial Statements included in this report), the net proceeds of the company's issuance in February 2016 of $130,000,000 aggregate principal amount of 5.00% convertible senior notes due in 2021 (see Subsequent Events in the Notes to Consolidated Financial Statements included in this report) and working capital management.

The company's total debt outstanding, inclusive of the debt discount included in equity in accordance with FSB APB 14-1, increased by $25,993,000 to $48,323,000 at December 31, 2015 from $22,330,000 as of December 31, 2014. The company's balance sheet reflects the impact of ASC 470-20, which reduced debt and increased equity by $1,203,000 and $1,999,000 as of December 31, 2015 and December 31, 2014, respectively. The debt discount decreased $796,000 during 2015, as a result of amortization of the convertible debt discount. The debt increase during the year was principally the result of the recording of $32,339,000 in capital lease liabilities as a result of the company's real estate sale and leaseback transaction completed in the second quarter of 2015. The company's cash and cash equivalents were $60,055,000 at December 31, 2015 compared to $38,931,000 at December 31, 2014. At December 31, 2015, the company had no borrowings outstanding on its revolving credit facility compared to $4,000,000 as of December 31, 2014.

The company's borrowing capacity and cash balances were utilized for normal operations during the period ended December 31, 2015. Debt repayments, acquisitions, divestitures, the timing of vendor payments, the granting of extended payment terms to significant national accounts and other activity can have a significant impact on the company's cash flow and borrowings outstanding such that the debt reported at the end of a given period may be materially different than debt levels during a given period. During 2015, the outstanding borrowings on the company's revolving credit facility varied from a low of zero to a high of $35,000,000. While the company has cash balances in various jurisdictions around the world, there are no material restrictions regarding the use of such cash for dividends within the company, loans or other purposes, except in China where the cash balance as of December 31, 2015 was approximately $5,500,000.

On January 16, 2015, the company entered into an asset-based lending Revolving Credit and Security Agreement (the “Prior Credit Agreement”), which was amended on April 22, 2015 and amended and restated on September 30, 2015 to provide for a new revolving line of credit, letter of credit and swing line facility for European borrowers (the “Amended and Restated Credit Agreement”). The initial borrowings under the Prior Credit Agreement were used to repay approximately $17,000,000 in aggregate principal amount of borrowings and terminate the company's previous credit agreement, which was scheduled to mature in October 2015. As determined pursuant to the borrowing base formula for the U.S. and Canadian borrowers, the company’s borrowing base including the period ending December 31, 2015 under the U.S. and Canadian Credit Facility of the Amended and Restated Credit Agreement was approximately $64,655,000, with aggregate borrowing availability of approximately $38,230,000, taking into account the then-applicable $10,000,000 minimum availability reserve, then-outstanding letters of credit, other reserves and the $11,250,000 dominion trigger amount noted below. As determined pursuant to the borrowing base formula for the European borrowers, the company’s borrowing base including the period ending December 31, 2015 under the European Credit Facility of the Amended and Restated Credit Agreement was approximately $21,528,000, with aggregate borrowing availability of approximately $15,153,000, taking into account the $3,000,000 minimum availability reserve, then-outstanding letters of credit, other reserves and the $3,375,000 dominion trigger amount noted below. See Long-Term Debt in the Notes to the Consolidated Financial Statements for more details regarding the Amended and Restated Credit Agreement.

As a result of entering into the Amended and Restated Credit Agreement, the company incurred $1,954,000 in fees, which were capitalized and are being amortized through January 2018. In addition, as a result of terminating the previous credit agreement, which was scheduled to mature in October 2015, the company wrote-off $668,000 in previously capitalized fees in the first quarter of 2015, which is reflected in the expense of the North America / HME segment.

As of December 31, 2015, the company was in compliance with all covenant requirements. The Amended and Restated Credit Agreement contains customary representations, warranties and covenants including dominion triggers requiring the company to maintain borrowing capacity of not less than $11,250,000 on an given business day or $12,500,000 for five consecutive days related to the U.S. and Canadian borrowers and $3,375,000 on an given business day or 12.5% of the maximum amount that may be drawn under the European Credit Facility for five consecutive days related to European borrowers in order to avoid triggering

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full control by an agent for the lenders of the company's cash receipts for application to the company's obligations under the agreement.

If the company is unable to comply with the provisions in the Amended and Restated Credit Agreement, it could result in a default, which could trigger acceleration of, or the right to accelerate, the related debt. Because of cross-default provisions in its agreements and instruments governing certain of the company's indebtedness, a default under the Amended and Restated Credit Agreement could result in a default under, and the acceleration of, certain other company indebtedness. In addition, the company's lenders would be entitled to proceed against the collateral securing the indebtedness.

Based on the company's current expectations, the company believes that its cash balances, cash generated by operations and available borrowing capacity under its Amended and Restated Credit Agreement should be sufficient to meet working capital needs, capital requirements, and commitments for at least the next twelve months, including payments of $9,379,000 to settle tax liabilities during the next twelve months. Notwithstanding the company's expectations, if the company's operating results decline as the result of pressures on the business due to, for example, currency fluctuations or regulatory issues or the company's failure to execute its business plans, the company may be unable to comply with its obligations under the Amended and Restated Credit Agreement, and its lenders could demand repayment of the amounts outstanding under the company's credit facilities.

On February 23, 2016, the company issued $130,000,000 aggregate principal amount of 5.00% convertible senior notes due 2021 in a private offering. The notes bear interest at a rate of 5.00% per year payable semi-annually and will mature in February 2021, unless repurchased or converted in accordance with their terms prior to such date. Prior to August 15, 2020, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Unless and until the company obtains shareholder approval under applicable New York Stock Exchange rules, the notes will be convertible, subject to certain conditions, into cash. If the company obtains such shareholder approval, the notes may be settled in cash, the company’s common shares or a combination of cash and the company’s common shares, at the company’s election.

In connection with the offering of the notes, the company entered into privately negotiated convertible note hedge transactions with two financial institutions (the “option counterparties”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the notes, and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the notes. The company entered into separate, privately negotiated warrant transactions with the option counterparties at a higher strike price relating to the same number of the company’s common shares, subject to customary anti-dilution adjustments, pursuant to which the company will sell warrants to the option counterparties. The warrants could have a dilutive effect on the company’s outstanding common shares and the company’s earnings per share to the extent that the price of the company’s common shares exceeds the strike price of those warrants.

The net proceeds from the offering were approximately $124,800,000, after deducting fees and estimated offering expenses payable by the company. Approximately $5,000,000 of the net proceeds from the offering was used to repurchase the company’s common shares, and $13,520,000 of the net proceeds was used to pay the net cost of the convertible note hedge and warrant transactions. The company intends to use the remaining net proceeds from the offering for working capital and general corporate purposes, which may include funding portions of the company’s ongoing turnaround and addressing potential risks and contingencies described in the “Risk Factors” contained in this Annual Report on Form 10-K. The net proceeds will allow the company to invest in new products, people, marketing initiatives and working capital to transform the business and pursue growth.

See Subsequent Events in the Notes to the Consolidated Financial Statements for more information regarding the 5.00% convertible senior notes due 2021 and the related convertible note hedge and warrant transactions.

The company also has an agreement with De Lage Landen, Inc. (“DLL”), a third party financing company, to provide the majority of future lease financing to the company's North America customers. Either party could terminate this agreement with 180 days' notice or 90 days' notice by DLL upon the occurrence of certain events. Should this agreement be terminated, the company's borrowing needs under the Amended and Restated Credit Agreement could increase.

While there is general concern in the company about the potential for rising interest rates, the company believes that its exposure to interest rate fluctuations is manageable as the company has the ability to utilize swaps to exchange variable rate debt for fixed rate debt, if needed, and the company expects that it will be able to absorb any modest rate increases in the months ahead without any material impact on its liquidity or capital resources. For 2015 and 2014, the weighted average interest rate on all borrowings, excluding capital leases, was 3.83% and 2.87%, respectively.

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CAPITAL EXPENDITURES

There are no individually material capital expenditure commitments outstanding as of December 31, 2015. The company estimates that capital investments for 2016 will be between $18,000,000 and $25,000,000 compared to actual capital expenditures of $7,522,000 in 2015. The anticipated increase considers the company's investments to transform the company. The company believes that its balances of cash and cash equivalents and existing borrowing facilities, will be sufficient to meet its operating cash requirements and fund required capital expenditures for the foreseeable future. The Amended and Restated Credit Agreement, as amended in February 2016, limits the company's annual capital expenditures to $35,000,000.

CASH FLOWS

Cash flows used by operating activities were $5,378,000 in 2015, compared to cash flows provided by operating activities of $8,892,000 in the previous year. The 2015 operating cash flows were impacted by a decline in accrued expenses, accounts payable and other long-term obligations, which was partially offset by the positive cash flow impact of a lower net loss and a reduction in inventory and accounts receivable. The current year decline in accrued expenses was largely driven by benefit payments of $24,651,000 related to the 2014 retirements of executive officers of the company.

Cash flows provided by investing activities were $44,376,000 in 2015, compared to $33,582,000 in 2014. Cash flows provided by investing activities in 2015 included the receipt of $23,000,000 in proceeds from the company's real estate sale leaseback transaction as well as the surrender of corporate-owned life insurance of $11,902,000 to fund payments in 2015 related to the retirement of certain executive officers of the company in 2014. In addition, the company received net proceeds of $13,700,000 from the sale of its rental businesses in July 2015. By comparison, cash flows provided by investing activities in 2014 were driven by the proceeds from the sale of a business of $21,870,000 and the sale of corporate-owned life insurance assets of $21,338,000.

Cash flows used by financing activities in 2015 were $14,346,000 compared to $32,158,000 in 2014. The decrease in cash used was principally the result of lower net repayments of debt. Cash used for financing in 2015 also included payment of financing costs related to the company's refinancing of debt in 2015.

During 2015, the company generated free cash flow of $13,940,000 compared to free cash flow of $8,412,000 in 2014. The increase was most significantly affected by the positive impact of $23,000,000 in proceeds related to the company's real estate sale leaseback transaction and the negative impact of benefit payments of $24,651,000 related to the 2014 retirements of executive officers of the company. 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,
	2015			2014
Net cash provided by operating activities	$	(5,378	)	$	8,892
Plus: Net cash impact related to restructuring activities	3,723			9,326
Sales of property and equipment	23,117			2,521
Less: Purchases of property and equipment—net	(7,522		)	(12,327		)
Free Cash Flow	$	13,940		$	8,412

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BUSINESS SEGMENT NET SALES

The following tables provide net sales change for continuing operations as reported and as adjusted to exclude the impact of foreign exchange translation (constant currency net sales) as well as net sales further adjusted to exclude the impact of the sale of the rentals businesses, which were sold in July 2015 and not deemed discontinued operations for financial reporting purposes.

Twelve months ended December 31, 2015 compared to December 31, 2014:

	Reported		Foreign Currency Translation Impact		Constant Currency
North America / HME	(6.6	)%	(1.0	)%	(5.6	)%
Institutional Products Group	(15.2	)%	(0.8	)%	(14.4	)%
Europe	(12.1	)%	(15.6	)%	3.5	%
Asia/Pacific	(9.0	)%	(16.5	)%	7.5	%
Consolidated	(10.1	)%	(8.7	)%	(1.4	)%
	Reported		Impact of Rentals Businesses		Reported excluding Rentals Businesses
Institutional Products Group	(15.2	)%	(17.7	)%	2.5	%
Consolidated	(10.1	)%	(1.2	)%	(8.9	)%
	Constant Currency		Impact of Rentals Businesses		Constant Currency excluding Rentals Businesses
Institutional Products Group	(14.4	)%	(18.1	)%	3.7	%
Consolidated	(1.4	)%	(1.4	)%	—	%

Twelve months ended December 31, 2014 compared to December 31, 2013:

	Reported		Foreign Currency Translation Impact		Constant Currency
North America / HME	(13.8	)%	(0.5	)%	(13.3	)%
Institutional Products Group	(8.5	)%	(0.3	)%	(8.2	)%
Europe	4.7	%	1.1	%	3.6	%
Asia/Pacific	(1.8	)%	(1.4	)%	(0.4	)%
Consolidated	(4.8	)%	0.2	%	(5.0	)%

CONTRACTUAL OBLIGATIONS

The company’s contractual obligations as of December 31, 2015 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	$	19,476	$	551	$	1,101	$	1,101	$	16,723
Operating lease obligations	32,623		15,067		13,809		3,479		268
Capital lease obligations	47,812		3,375		6,223		5,342		32,872
Purchase obligations (primarily computer systems contracts)	20,754		8,622		11,364		768		—
Product liability	17,709		3,127		6,935		3,206		4,441
Tax liability	10,857		9,379		1,478		—		—
Supplemental Executive Retirement Plan	6,209		1,279		782		782		3,366
Other, principally deferred compensation	4,321		155		310		141		3,715
Total	$	159,761	$	41,555	$	42,002	$	14,819	$	61,385

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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 the timing of any other payments. See Income Taxes in the Notes to the Consolidated Financial Statements included in this report.

DIVIDEND POLICY

It is the company’s policy to pay a nominal dividend in order for its stock to be more attractive to a broader range of investors. The current annual dividend rate remains at $0.05 per Common Share and $0.045 per Class B Common Share. It is not anticipated that this will change materially as the company believes that capital should be kept available for use in growth opportunities through internal development and acquisitions. For 2015, annualized dividends of $0.05 per Common Share and $0.045 per Class B Common Share were declared and paid.

CRITICAL ACCOUNTING ESTIMATES

The Consolidated Financial Statements included in the report include accounts of the company and all majority-owned subsidiaries. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying Consolidated Financial Statements and related footnotes. In preparing the financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ from these estimates.

The following critical accounting policies, among others, affect the more significant judgments and estimates used in preparation of the company’s consolidated financial statements.

Revenue Recognition

Invacare’s revenues are recognized when products are shipped or services provided to unaffiliated customers. Revenue Recognition, ASC 605, provides guidance on the application of generally accepted accounting principles to selected revenue recognition issues. The company has concluded that its revenue recognition policy is appropriate and in accordance with GAAP and ASC 605. Shipping and handling costs are included in cost of goods sold.

Sales are made only to customers with whom the company believes collection is reasonably assured based upon a credit analysis, which may include obtaining a credit application, a signed security agreement, personal guarantee and/or a cross corporate guarantee depending on the credit history of the customer. Credit lines are established for new customers after an evaluation of their credit report and/or other relevant financial information. Existing credit lines are regularly reviewed and adjusted with consideration given to any outstanding past due amounts.

The company offers discounts and rebates, which are accounted for as reductions to revenue in the period in which the sale is recognized. Discounts offered include: cash discounts for prompt payment, base and trade discounts based on contract level for specific classes of customers. Volume discounts and rebates are given based on large purchases and the achievement of certain sales volumes. Product returns are accounted for as a reduction to reported sales with estimates recorded for anticipated returns at the time of sale. The company does not ship any goods on consignment.

Distributed products sold by the company are accounted for in accordance with the revenue recognition guidance in ASC 605-45-05. The company records distributed product sales gross as a principal since the company takes title to the products and has the risks of loss for collections, delivery and returns.

Product sales that give rise to installment receivables are recorded at the time of sale when the risks and rewards of ownership are transferred. Interest income is recognized on installment agreements in accordance with the terms of the agreements. Installment accounts are monitored and if a customer defaults on payments, interest income is no longer recognized. All installment accounts are accounted for using the same methodology, regardless of duration of the installment agreements.

Allowance for Uncollectible Accounts Receivable

The estimated allowance for uncollectible amounts is based primarily on management's evaluation of the financial condition of the customer. In addition, as a result of the third party financing arrangement, management monitors the collection status of these contracts in accordance with the company's limited recourse obligations and provides amounts necessary for estimated losses in the allowance for doubtful accounts and establishing reserves for specific customers as needed.

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The company continues to closely monitor the credit-worthiness of its customers and adhere to tight credit policies. In 2013, the Centers for Medicare and Medicaid Services announced new Medicare prices which became effective in July 2013 for the second round of the NCB program, which was expanded to include 91 additional MSAs. In January 2016, CMS began expanding NCB to rural areas which would expand the program to 100% of the Medicare population. The company believes the changes could have a significant impact on the collectability of accounts receivable for those customers which are in the rural locations impacted and which have a portion of their revenues tied to Medicare reimbursement. As a result, this is an additional risk factor which the company considers when assessing the collectability of accounts receivable.

The company has an agreement with DLL, a third party financing company, to provide the majority of future lease financing to Invacare's North America customers. The DLL agreement provides for direct leasing between DLL and the Invacare customer. The company retains a recourse obligation for events of default under the contracts. The company monitors the collections status of these contracts and has provided amounts for estimated losses in its allowances for doubtful accounts.

Inventories and Related Allowance for Obsolete and Excess Inventory

Inventories are stated at the lower of cost or market with cost determined by the first-in, first-out method. Inventories have been reduced by an allowance for excess and obsolete inventories. The estimated allowance is based on management’s review of inventories on hand compared to estimated future usage and sales. A provision for excess and obsolete inventory is recorded as needed based upon the discontinuation of products, redesigning of existing products, new product introductions, market changes and safety issues. Both raw materials and finished goods are reserved for on the balance sheet.

In general, Invacare reviews inventory turns as an indicator of obsolescence or slow moving product as well as the impact of new product introductions. Depending on the situation, the company may partially or fully reserve for the individual item. The company continues to increase its overseas sourcing efforts, increase its emphasis on the development and introduction of new products, and decrease the cycle time to bring new product offerings to market. These initiatives are potential sources of inventory obsolescence for both raw material and finished goods.

Goodwill, Intangible and Other Long-Lived Assets

Property, equipment, intangibles and certain other long-lived assets are amortized over their useful lives. Useful lives are based on management's estimates of the period that the assets will generate revenue. Under Intangibles-Goodwill and Other, ASC 350, goodwill and intangible assets deemed to have indefinite lives are subject to annual impairment tests. The company's measurement date for its annual goodwill impairment test is October 1 and the analysis is completed in the fourth quarter. Furthermore, goodwill and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The majority of the company's goodwill and intangible assets relate to the company's Europe and IPG segments which are profitable in 2015.

To review goodwill for impairment in accordance with ASC 350, the company first estimates the fair value of each reporting unit and compares the calculated fair value to the carrying value of the each reporting unit. A reporting unit is defined as an operating segment or one level below. The company has determined that its reporting units are the same as its operating segments. The company completes its annual impairment tests in the fourth quarter of each year. To estimate the fair values of the reporting units, the company utilizes a discounted cash flow (DCF) method in which the company forecasts income statement and balance sheet amounts based on assumptions regarding future sales growth, profitability, inventory turns, days' sales outstanding, etc. to forecast future cash flows. The cash flows are discounted using a weighted average cost of capital discount rate where the cost of debt is based on quoted rates for 20-year debt of companies of similar credit risk and the cost of equity is based upon the 20-year treasury rate for the risk free rate, a market risk premium, the industry average beta and a small cap stock adjustment. The discount rates used have a significant impact upon the discounted cash flow methodology utilized in the company's annual impairment testing as higher discount rates decrease the fair value estimates. The assumptions used are based on a market participant's point of view and yielded a discount rate of 9.41% in 2015 for the company's annual impairment analysis compared to 9.89% in 2014 and 10.00% in 2013.

The company also utilizes an Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) Method to compute the fair value of its reporting units which considers potential acquirers and their EV to EBITDA multiples adjusted by an estimated premium. While more weight is given to the discounted cash flow method, the EV to EBITDA method does provide corroborative evidence of the reasonableness of the discounted cash flow method results.

In 2015, 2014 and 2013, the company performed a review for potential impairments of any other assets, including the company's Taylor Street facility which is subject to the FDA consent decree that limits the company's manufacture and distribution of custom power and manual wheelchairs, wheelchair components and wheelchair subassemblies at the Taylor Street facility. The

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company determined there was no impairment of the property, plant and equipment of the Taylor Street facility based on a comparison of the forecasted undiscounted cash flows to the carrying value of the net assets in accordance with ASC 360. In addition, the company determined there was no impairment of inventory associated with the facility.

While there was no indication of impairment in 2015 related to goodwill for the Europe or IPG segments, a future potential impairment is possible for any of the company's segments should actual results differ materially from forecasted results used in the valuation analysis. Furthermore, the company's annual valuation of goodwill can differ materially if the market inputs used to determine the discount rate change significantly. For instance, higher interest rates or greater stock price volatility would increase the discount rate and thus increase the chance of impairment. In consideration of this potential, the company reviewed the results if the discount rate used were 100 basis points higher for the 2015 impairment analysis and determined that there still would not be any indicator of potential impairment for the segments with goodwill which are Europe and IPG.

The company's intangible assets consist of intangible assets with defined lives as well as intangible assets with indefinite lives. Defined-lived intangible assets consist principally of customer lists, developed technology, license agreements, patents and other miscellaneous intangibles such as non-compete agreements. The company's indefinite lived intangible assets consist entirely of trademarks.

The company evaluates the carrying value of definite-lived assets whenever events or circumstances indicate possible impairment. Definite-lived assets are determined to be impaired if the future un-discounted cash flows expected to be generated by the asset are less than the carrying value. Actual impairment amounts for definite-lived assets are then calculated using a discounted cash flow calculation. The company reviews indefinite-lived assets for impairment annually in the fourth quarter of each year and whenever events or circumstances indicate possible impairment. Any impairment amounts for indefinite-lived assets are calculated as the difference between the future discounted cash flows expected to be generated by the asset less than the carrying value for the asset.

During 2014, the company recognized intangible write-down charges in the IPG segment of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement of $215,000 as the actual and remaining cash flows associated with the intangibles were less than the cash flows originally used to value the intangibles, primarily driven by reduced net sales. The after-tax and pre-tax impairment amounts were the same for each of the above impairments.

During 2013, the company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives impairment of $568,000, a trademark with a definite life impairment of $123,000, customer list impairment of $442,000 and developed technology impairment of $223,000 all recorded in the IPG segment and a customer list impairment of $167,000 recorded in the North America/HME segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the indefinite-lived trademark impairments in the IPG segment, which were $496,000 after-tax.

The fair values of the customer lists were calculated using an excess earnings method, using a discounted cash flow model. Estimated cash flow returns to the customer relationship were reduced by the cash flows required to satisfy the return requirements of each of the assets employed with the residual cash flow then discounted to value the customer list. The fair values of the trademarks and developed technology were calculated using a relief from royalty payment methodology which requires applying an estimated market royalty rate to forecasted net sales and discounting the resulting cash flows to determine fair value. The patent was impaired as the related product was discontinued.

Product Liability

The company is self-insured in North America for product liability exposures through its captive insurance company, Invatection Insurance Company, which currently has a policy year that runs from September 1 to August 31 and insures annual policy losses up to $10,000,000 per occurrence and $13,000,000 in the aggregate. The company also has additional layers of external insurance coverage, related to all lines of insurance coverage, insuring up to $75,000,000 in aggregate losses per policy year arising from individual claims anywhere in the world that exceed the captive insurance company policy limits or the limits of the company’s per country foreign liability limits, as applicable. There can be no assurance that Invacare’s current insurance levels will continue to be adequate or available at affordable rates.

Product liability reserves are recorded for individual claims based upon historical experience, industry expertise and other indicators. Additional reserves, in excess of the specific individual case reserves, are provided for 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 by the company in estimating 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

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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.

Warranty

Generally, the company’s products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sale to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company’s warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product recall, which could warrant additional warranty reserve provision. See Current Liabilities in the Notes to the Consolidated Financial Statements for a reconciliation of the changes in the warranty accrual.

Accounting for Stock-Based Compensation

The company accounts for share based compensation under the provisions of Compensation—Stock Compensation, ASC 718. The company has not made any modifications to the terms of any previously granted options and no changes have been made regarding the valuation methodologies or assumptions used to determine the fair value of options granted and the company continues to use a Black-Scholes valuation model. As of December 31, 2015, there was $10,535,000 of total unrecognized compensation cost from stock-based compensation arrangements, which is related to non-vested options and shares, and includes $9,476,000 related to restricted stock awards and $1,059,000 related to non-qualified stock options. 

The substantial majority of the options awarded have been granted at exercise prices equal to the market value of the underlying stock on the date of grant. Restricted stock awards granted without cost to the recipients are expensed on a straight-line basis over the vesting periods. Performance awards granted are expensed based on estimated achievement of the performance objectives over the relevant performance award periods.

Income Taxes

As part of the process of preparing its financial statements, the company is required to estimate income taxes in various jurisdictions. The process requires estimating the company’s current tax liability, including assessing uncertainties related to tax return filing positions, as well as estimating temporary differences due to the different treatment of items for tax and accounting policies. The temporary differences are reported as deferred tax assets and or liabilities. The company also must estimate whether it will more likely than not realize its deferred tax assets and whether a valuation allowance should be established. Substantially all of the company’s U.S., Australia and New Zealanddeferred tax assets are offset by a valuation allowance.  In the event that actual results differ from its estimates, the company’s provision for income taxes could be materially impacted. The company does not believe that there is a substantial likelihood that materially different amounts would be reported related to its critical accounting policies.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

For the company’s disclosure regarding recently issued accounting pronouncements, see Accounting Policies - Recent Accounting Pronouncements in the Notes to the Consolidated Financial Statements.

Item 7A.    Quantitative and Qualitative Disclosure about Market Risk.

The company is exposed to market risk through various financial instruments, including fixed rate and floating rate debt instruments. The company does at times use interest swap agreements to mitigate its exposure to interest rate fluctuations. Based on December 31, 2015 debt levels, a 1% change in interest rates would have no impact annual on interest expense as the company did not have any variable rate debt outstanding. Additionally, the company operates internationally and, as a result, is exposed to foreign currency fluctuations. Specifically, the exposure results from intercompany loans, intercompany sales or payments and third party sales or payments. In an attempt to reduce this exposure, foreign currency forward contracts are utilized to hedge intercompany purchases and sales as well as third party purchases and sales. The company does not believe that any potential loss related to these financial instruments would have a material adverse effect on the company’s financial condition or results of operations.

The company is party to the Amended and Restated Credit Agreement which was originally entered into on January 16, 2015 and matures in January 2018. Accordingly, while the company is exposed to increases in interest rates, its exposure to the volatility of the current market environment is limited as the company recently entered into its Amended and Restated Credit

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Agreement. The Amended and Restated Credit Agreement contains customary default provisions, with certain grace periods and exceptions, which provide that events of default that include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption of any material manufacturing facilities for more than ten consecutive days. Should the company fail to comply with these requirements, the company would potentially have to attempt to obtain alternative financing and thus likely be required to pay much higher interest rates.

As of December 31, 2015, the company had no borrowings outstanding under its Amended and Restated Credit Agreement, which provides for a senior secured revolving credit facility for U.S. and Canadian borrowers of up to $100,000,000 at variable rates, subject to availability based on a borrowing base formula, and in addition provides for a revolving credit, letter of credit and swing line loan facility for European borrowers allowing borrowing up to an aggregate principal amount of $30,000,000 at variable rates, subject to availability based on a borrowing base formula. As of December 31, 2015, the company had $13,350,000 outstanding in principal on its 4.125% Convertible Senior Subordinated Debentures due in February 2027, of which $1,203,000 is included in equity.

On February 23, 2016, the company issued $130,000,000 aggregate principal amount of 5.00% convertible senior notes due 2021 in a private offering. The notes bear interest at a rate of 5.00% per year payable semi-annually and will mature in February 2021, unless repurchased or converted in accordance with their terms prior to such date. See Subsequent Events in the Notes to the Consolidated Financial Statements for more information regarding the 5.00% convertible senior notes due 2021 and the related convertible note hedge and warrant transactions.

Item 8.        Financial Statements and Supplementary Data.

Reference is made to the Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Consolidated Statement of Comprehensive Income (Loss), Consolidated Statement of Cash Flows, Consolidated Statement of Shareholders’ Equity, Notes to Consolidated Financial Statements and Financial Statement Schedule, which appear on pages FS-1 to FS-61 of this Annual Report on Form 10-K.

Item 9.        Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A.    Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

As of December 31, 2015, an evaluation was performed, under the supervision and with the participation of the company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)). Based on that evaluation, the company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the company’s disclosure controls and procedures were effective as of December 31, 2015, in ensuring that information required to be disclosed by the company in the reports it files and submits under the Exchange Act is (1) recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms and (2) accumulated and communicated to the company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow for timely decisions regarding required disclosure.

(b) Management’s Annual Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining a system of adequate internal control over financial reporting that provides reasonable assurance that assets are safeguarded and that transactions are authorized, recorded and reported properly. The system includes self-monitoring mechanisms; regular testing by the company’s internal auditors; a Code of Conduct; written policies and procedures; and a careful selection and training of employees. Actions are taken to correct deficiencies as they are identified. An effective internal control system, no matter how well designed, has inherent limitations—including the possibility of the circumvention or overriding of controls—and therefore can provide only reasonable assurance that errors and fraud that can be material to the financial statements are prevented or would be detected on a timely basis. Further, because of changes in conditions, internal control system effectiveness may vary over time.

Management’s assessment of the effectiveness of the company’s internal control over financial reporting is based on the Internal Control—Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework).

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In management’s opinion, internal control over financial reporting is effective as of December 31, 2015.

(c) Attestation Report of the Independent Registered Public Accounting Firm

The company’s independent registered public accounting firm, Ernst & Young LLP, audited the company’s internal control over financial reporting and, based on that audit, issued an attestation report regarding the company’s internal control over financial reporting, which is included in this Annual Report on Form 10-K on page FS-2.

(d) Changes in Internal Control Over Financial Reporting

There have been no changes in the company’s internal control over financial reporting during the company’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company’s internal control over financial reporting.

Item 9B.    Other Information.

None.

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PART III

Item 10.        Directors, Executive Officers and Corporate Governance.

Information required by Item 10 as to the executive officers of the company is included in Part I of this Annual Report on Form 10-K. The other information required by Item 10 as to the directors of the company, the Audit Committee, the Audit Committee financial experts, the procedures by which security holders may recommend nominees to the Board of Directors, compliance with Section 16(a) of the Exchange Act, code of ethics and corporate governance is incorporated herein by reference to the information set forth under the captions “Election of Directors,” “Corporate Governance,” and “Section 16(a) Beneficial Ownership Compliance” in the company’s definitive Proxy Statement on Schedule 14A for the 2016 Annual Meeting of Shareholders.

Item 11.        Executive Compensation.

The information required by Item 11 is incorporated by reference to the information set forth under the captions “Executive Compensation” and “Corporate Governance” in the company’s definitive Proxy Statement on Schedule 14A for the 2016 Annual Meeting of Shareholders.

Item 12.        Security Ownership of Certain Beneficial Owners and Management.

The information required by Item 12 is incorporated by reference to the information set forth under the caption “Share Ownership of Principal Holders and Management” in the company’s definitive Proxy Statement on Schedule 14A for the 2016 Annual Meeting of Shareholders.

Information regarding the securities authorized for issuance under the company’s equity compensation plans is incorporated by reference to the information set forth under the captions “Equity Compensation Plan Information” in the company’s definitive Proxy Statement on Schedule 14A for the 2016 Annual Meeting of Shareholders.

Item 13.        Certain Relationships and Related Transactions, and Director Independence.

The information required by Item 13 is incorporated by reference to the information set forth under the caption “Certain Relationships and Related Transactions” in the company’s definitive Proxy Statement on Schedule 14A for the 2016 Annual Meeting of Shareholders.

Item 14.        Principal Accountant Fees and Services.

The information required by Item 14 is incorporated by reference to the information set forth under the caption “Independent Auditors” and “Pre-Approval Policies and Procedures” in the company’s definitive Proxy Statement on Schedule 14A for the 2016 Annual Meeting of Shareholders.

I-59

PART IV

Item 15.        Exhibits and Financial Statement Schedules.

(a)(1) Financial Statements.

The following financial statements of the company are included in Part II, Item 8:

Consolidated Statement of Comprehensive Income (Loss)—years ended December 31, 2015, 2014 and 2013

Consolidated Balance Sheet—December 31, 2015 and 2014

Consolidated Statement of Cash Flows—years ended December 31, 2015, 2014 and 2013

Consolidated Statement of Shareholders’ Equity—years ended December 31, 2015, 2014 and 2013

Notes to Consolidated Financial Statements

(a)(2) Financial Statement Schedules.

The following financial statement schedule of the company is included in Part II, Item 8:

Schedule II—Valuation and Qualifying Accounts

All other schedules have been omitted because they are not applicable or not required, or because the required information is included in the Consolidated Financial Statements or notes thereto.

(a)(3) Exhibits.

See Exhibit Index at page number I-62 of this Report on Form 10-K.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized as of March 3, 2016.

INVACARE CORPORATION
By:	/s/    MATTHEW E. MONAGHAN
	Matthew E. Monaghan
	Chairman of the Board of Directors, President and Chief Executive Officer

I-60

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities indicated as of March 3, 2016.

Signature	Title
/s/    MATTHEW E. MONAGHAN	Chairman of the Board of Directors, President and Chief Executive Officer (Principal Executive Officer)
Matthew E. Monaghan
/s/    ROBERT K. GUDBRANSON	Senior Vice President and Chief Financial Officer (Principal Finance and Accounting Officer)
Robert K. Gudbranson
/s/    MICHAEL F. DELANEY	Director
Michael F. Delaney
/s/    MARC M. GIBELEY	Director
Marc M. Gibeley
/s/    C. MARTIN HARRIS, M.D.	Director
C. Martin Harris, M.D.
/s/    JAMES L. JONES	Director
James L. Jones
/s/    DALE C. LAPORTE	Director
Dale C. LaPorte
/s/    MICHAEL J. MERRIMAN	Director
Michael J. Merriman
/s/    CLIFFORD D. NASTAS	Director
Clifford D. Nastas
/s/ BAIJU R. SHAH	Director
Baiju R. Shah

I-61

INVACARE CORPORATION

Report on Form 10-K for the fiscal year ended December 31, 2015.

Exhibit Index

Official Exhibit No.	Description	Sequential Page No.
1.1	Purchase Agreement, dated as of February 17, 2016, by and among Invacare Corporation and the several Initial Purchasers named in Schedule 1 thereto for whom J.P. Morgan Securities LLC acted as Representative.	(A)
2.1	Share Purchase Agreement among AssuraMed, Inc., Invacare Corporation and Invacare Supply Group, Inc., dated December 21, 2012. (Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby agrees to supplementally furnish to the Securities and Exchange Commission upon request any omitted schedule or exhibit to the agreement.)	(B)
2.2	Share Purchase Agreement among Champion Equity Holdings, LLC, Invacare Corporation and Champion Manufacturing Inc., dated August 7, 2013. (Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby agrees to supplementally furnish to the Securities and Exchange Commission upon request any omitted schedule or exhibit to the agreement.)	(C)
2.3	Share Purchase Agreement among REP Acquisition Corporation, Invacare Corporation and Altimate Medical, Inc., dated August 29, 2014. (Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby agrees to supplementally furnish to the Securities and Exchange Commission upon request any omitted schedule or exhibit to the agreement.)	(D)
2.4	Membership Interest Purchase Agreement among Invacare Continuing Care, Inc., Invacare Corporation and Joerns Healthcare Parent, LLC, dated July 2, 2015. (Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby agrees to supplementally furnish to the Securities and Exchange Commission upon request any omitted schedule or exhibit to the agreement.)	(E)
3(a)	Second Amended and Restated Articles of Incorporation	(F)
3(b)	Second Amended and Restated Code of Regulations of the company, as amended on February 13, 2014	(G)
4(a)	Specimen Share Certificate for Common Shares	(H)
4(b)	Specimen Share Certificate for Class B Common Shares	(H)
4(c)	Indenture, dated as of February 12, 2007, by and among Invacare Corporation, the Guarantors named therein and Wells Fargo Bank, N.A., as trustee (including the Form of 4.125% Convertible Senior Subordinated Debenture due 2027 and related Guarantee attached as Exhibit A)	(I)
4(d)	Indenture, dated as of February 23, 2016, by and between Invacare Corporation and Wells Fargo Bank, National Association (including the form of the 5.00% Convertible Senior Notes due 2021).	(A)
10(a)	Invacare Retirement Savings Plan, effective January 1, 2001, as amended	(J)*
10(b)	Invacare Corporation 401(K) Plus Benefit Equalization Plan, effective January 1, 2003, as amended and restated	(J)*
10(c)	Invacare Corporation Amended and Restated 2003 Performance Plan	(K)*
10(d)**	Form of Change of Control Agreement entered into by and between the company and certain of its executive officers and schedule of all such agreements with certain executive officers	*
10(e)**	Form of Indemnity Agreement entered into by and between the company and its directors and certain of its executive officers and schedule of all such agreements with directors and executive officers	*
10(f)	Invacare Corporation Deferred Compensation Plus Plan, effective January 1, 2005, as amended August 19, 2009 and on November 23, 2010	(L)*
10(g)	Invacare Corporation Death Benefit Only Plan, effective January 1, 2005, as amended	(J)*
10(h)	Supplemental Executive Retirement Plan, as amended and restated effective February 1, 2000	(M)*
10(i)	Form of Director Stock Option Award under Invacare Corporation 2003 Performance Plan	(J)*
10(j)	Form of Director Deferred Option Award under Invacare Corporation 2003 Performance Plan	(L)*

I-62

Official Exhibit No.	Description	Sequential Page No.
10(k)	Form of Restricted Stock Award under Invacare Corporation 2003 Performance Plan	(N)
10(l)	Form of Stock Option Award under Invacare Corporation 2003 Performance Plan	(J)*
10(m)	Form of Executive Stock Option Award under Invacare Corporation 2003 Performance Plan	(J)*
10(n)	Form of Switzerland Stock Option Award under Invacare Corporation 2003 Performance Plan	(J)*
10(o)	Form of Switzerland Executive Stock Option Award under Invacare Corporation 2003 Performance Plan	(J)*
10(p)**	Director Compensation Schedule	*
10(q)	Form of Rule 10b5-1 Sales Plan entered into between the company and certain of its executive officers and other employees and a schedule of all such agreements with executive officers and other employees	(L)
10(r)	Retirement Agreement and Release, dated as of November 14, 2014, by and between Invacare Corporation and A. Malachi Mixon, III.	(O)*
10(s)	Cash Balance Supplemental Executive Retirement Plan, as amended and restated, effective December 31, 2008	(P)*
10(t)**	Form of Participation Agreement, for current participants in the Cash Balance Supplemental Executive Retirement Plan, as of December 31, 2008, entered into by and between the company and certain participants and a schedule of all such agreements with participants	*
10(u)	Retirement Agreement and Release, dated as of July 23, 2014, by and between Invacare Corporation and Gerald B. Blouch	(Q)*
10(v)	Amendment No. 1 to the Cash Balance Supplemental Executive Retirement Plan, effective August 19, 2009	(R)*
10(w)**	Form of Change of Control Agreement entered into by and between the company and certain of its executive officers and schedule of all such agreements with executive officers	*
10(x)	Agreement entered into between the company and its former Executive Vice President and General Manager, North America and Global Product Development	(S)*
10(y)	2012 Non-employee Directors Deferred Compensation Plan, effective January 1, 2012	(N)*
10(z)	Amendment No. 3 to Invacare Corporation Deferred Compensation Plus Plan, effective January 1, 2005	(N)*
10(aa)	Invacare Corporation 2013 Equity Compensation Plan	(T)
10(ab)	Form of Executive Stock Option Award under the Invacare Corporation 2013 Equity Compensation Plan	(U)
10(ac)	Form of Stock Option Award under the Invacare Corporation 2013 Equity Compensation Plan	(U)
10(ad)	Form of Executive Stock Option Award for Swiss Employees under the Invacare Corporation 2013 Equity Compensation Plan	(U)
10(ae)	Form of Stock Option Award for Swiss Employees under the Invacare Corporation 2013 Equity Compensation Plan	(U)
10(af)	Form of Director Restricted Stock Award under the Invacare Corporation 2013 Equity Compensation Plan	(U)
10(ag)	Form of Restricted Stock Award under the Invacare Corporation 2013 Equity Compensation Plan	(U)
10(ah)	Form of Performance Share Award Agreement under the Invacare Corporation 2013 Equity Compensation Plan	(V)
10(ai)	Form of Restricted Stock Award Agreement for Employees under the Invacare Corporation 2013 Equity Compensation Plan	(W)
10(aj)	Retirement Agreement and Release by and between Invacare Corporation and Louis F.J. Slangen executed February 26, 2014.	(X)*
10(ak)	Employment Agreement, dated as of July 23, 2014, by and between Invacare Corporation and Robert K. Gudbranson.	(Q)*

I-63

Official Exhibit No.	Description	Sequential Page No.
10(al)	Retirement Agreement and Release, dated as of November 14, 2014, by and between Invacare Corporation and Joseph B. Richey, II.	(O)*
10(am)	Employment Agreement, dated as of January 21, 2015, by and between the company and Matthew E. Monaghan.	(Y)*
10(an)	Purchase and Sale Agreement, dated as of February 24, 2015, by and between the company and Industrial Realty Group, LLC.	(Z)
10(ao)	Form of Lease Agreement by and among the company and the affiliates of Industrial Realty Group, LLC named therein.	(Z)
10(ap)	Invacare Corporation Executive Incentive Bonus Plan, as amended and restated	(AA)*
10(aq)	Amendment No. 1 to the Invacare Corporation 2013 Equity Compensation Plan	(AA)*
10(ar)	Amended and Restated Revolving Credit and Security Agreement, dated as of September 30, 2015, by and among the company, the other Borrowers party thereto, the Guarantors party thereto, the Lenders party thereto, PNC Bank, National Association, as administrative agent, JP Morgan Chase Bank, N.A. and J.P. Morgan Europe Limited, as European agent.	(AB)
10(as)**	Indemnity Agreement, dated April 1, 2015, entered into by and between the company and Matthew E. Monaghan.	*
10(at)	First Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of February 16, 2016, by and among the company, the other borrowers party thereto, the guarantors party thereto, the lenders party thereto, PNC Bank, National Association, as administrative agent, and J.P. Morgan Europe Limited, as European agent.	(AC)
10(au)**	Employment Agreement, dated as of January 4, 2012, by and between the company and Gordon Sutherland.	*
10(av)**	Technical Information & Non-Competition Agreement, dated April 6, 2008, entered into by and between the company and Robert K. Gudbranson	*
10(aw)**	Technical Information & Non-Competition Agreement, dated April 1, 2015, entered into by and between the company and Matthew E. Monaghan	*
10(ax)**	Technical Information & Non-Competition Agreement entered into by and between the company and certain of its executive officers and schedule of all such agreements with executive officers	*
10(ay)**	Letter agreement, dated as of July 31, 2008, by and between the company and Anthony C. LaPlaca.	*
10(az)**	Letter agreement, dated as of April 15, 2015, by and between the company and Dean J. Childers.	*
10(ba)	Call option Transaction Confirmation entered into between JPMorgan Chase Bank, National Association, London Branch and Invacare Corporation as of February 17, 2016	(A)
10(bb)	Call option Transaction Confirmation entered into between Wells Fargo Bank, National Association and Invacare Corporation as of February 17, 2016	(A)
10(bc)	Warrants Confirmation between Invacare Corporation to JPMorgan Chase Bank, National Association, London Branch as of February 17, 2016	(A)
10(bd)	Warrants Confirmation between Invacare Corporation to Wells Fargo Bank, National Association as of February 17, 2016	(A)
21**	Subsidiaries of the company
23**	Consent of Independent Registered Public Accounting Firm
31.1**	Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2**	Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.1	Consent Decree of Permanent Injunction, as filed with the U.S. District Court for the Northern District of Ohio on December 20, 2012.	(AD)
101.INS**	XBRL instance document

I-64

Official Exhibit No.	Description	Sequential Page No.
101.SCH**	XBRL taxonomy extension schema
101.CAL**	XBRL taxonomy extension calculation linkbase
101.DEF**	XBRL taxonomy extension definition linkbase
101.LAB**	XBRL taxonomy extension label linkbase
101.PRE**	XBRL taxonomy extension presentation linkbase

________________________

* Management contract, compensatory plan or arrangement

** Filed herewith

(A) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated February 23, 2016, which Exhibit is incorporated herein by reference.

(B) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated December 21, 2012, which Exhibit is incorporated herein by reference.

(C) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated August 7, 2013, which Exhibit is incorporated herein by reference.

(D) Reference is made to Exhibit 2.1 of the company report on Form 8-K, dated August 29, 2014, which Exhibit is incorporated herein by reference.

(E) Reference is made to Exhibit 2.1 of the company report on Form 8-K, dated July 2, 2015, which Exhibit is incorporated herein by reference.

(F) Reference is made to Exhibit 3(a) of the company report on Form 10-K for the fiscal year ended December 31, 2008, which Exhibit is incorporated herein by reference.

(G) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated February 13, 2014, which Exhibit is incorporated herein by reference.

(H) Reference is made to the appropriate Exhibit of the company report on Form 10-K for the fiscal year ended December 31, 2005, which Exhibit is incorporated herein by reference.

(I) Reference is made to Exhibit 4.1 of the company report on Form 8-K, dated February 12, 2007, which Exhibit is incorporated herein by reference.

(J) Reference is made to the appropriate Exhibit of the company report on Form 10-K for the fiscal year ended December 31, 2007, which Exhibit is incorporated herein by reference.

(K) Reference is made to Exhibit 10.1 of the company report on Form 8-K, dated May 21, 2009, which Exhibit is incorporated herein by reference.

(L) Reference is made to the appropriate Exhibit of the company report on Form 10-K for the fiscal year ended December 31, 2010, which Exhibit is incorporated herein by reference.

(M) Reference is made to the appropriate Exhibit of the company report on Form 10-K for the fiscal year ended December 31, 2004, which Exhibit is incorporated herein by reference.

(N) Reference is made to the appropriate Exhibit of the company report on Form 10-K for the fiscal year ended December 31, 2011, which Exhibit is incorporated herein by reference.

(O) Reference is made to Exhibit 10.1 of the company report on Form 8-K, dated November 14, 2014, which Exhibit is incorporated herein by reference.

(P) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated December 31, 2008, which Exhibit is incorporated herein by reference.

(Q) Reference is made to Exhibit 10.1 of the company report on Form 8-K, dated July 23, 2014, which Exhibit is incorporated herein by reference.

(R) Reference is made to the Exhibit 10.2 of the company report on Form 10-Q, dated September 30, 2009, which Exhibit is incorporated herein by reference.

(S) Reference is made to the appropriate Exhibit of the company report on Form 10-K for the fiscal year ended December 31, 2014, which Exhibit is incorporated herein by reference.

(T) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated May 16, 2013, which Exhibit is incorporated herein by reference.

(U) Reference is made to the appropriate Exhibit of the company report on Form 10-Q, for the fiscal quarter ended September 30, 2013, which Exhibit is incorporated herein by reference.

(V) Reference is made to Exhibit 10.1 of the company report on Form 8-K, dated March 7, 2014, which Exhibit is incorporated herein by reference.

I-65

(W) Reference is made to Exhibit 10.2 of the company report on Form 8-K, dated March 7, 2014, which Exhibit is incorporated herein by reference.

(X) Reference is made to Exhibit 10.1 of the company report on Form 8-K, dated February 26, 2014, which Exhibit is incorporated herein by reference.

(Y) Reference is made to Exhibit 10.1 of the company report on Form 8-K, dated January 21, 2015, which Exhibit is incorporated herein by reference.

(Z) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated April 23, 2015, which Exhibit is incorporated herein by reference.

(AA) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated May 14, 2015, which Exhibit is incorporated herein by reference.

(AB) Reference is made to Exhibit 10.1 of the company report on Form 8-K, dated September 30, 2015, which Exhibit is incorporated herein by reference.

(AC) Reference is made to Exhibit 10.1 of the company report on Form 8-K, dated February 16, 2016, which Exhibit is incorporated herein by reference.

(AD) Reference is made to the appropriate Exhibit of the company report on Form 8-K, dated December 20, 2012, which Exhibit is incorporated herein by reference.

I-66

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Invacare Corporation and Subsidiaries

We have audited the accompanying consolidated balance sheets of Invacare Corporation and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of comprehensive income (loss), cash flows and shareholders’ equity for each of the three years in the period ended December 31, 2015. Our audits also included the financial statement schedule listed in the Index at Item 15(a)(2). These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Invacare Corporation and subsidiaries at December 31, 2015 and 2014, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2015, in conformity with U. S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Invacare Corporation’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 3, 2016 expressed an unqualified opinion thereon.

	/s/  Ernst & Young LLP
Cleveland, Ohio
March 3, 2016

FS-1

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Invacare Corporation and Subsidiaries

We have audited Invacare Corporation’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Invacare Corporation’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying “Management’s Annual Report on Internal Control over Financial Reporting” which is included in Item 9A. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, Invacare Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Invacare Corporation and subsidiaries as of December 31, 2015 and 2014 and the related consolidated statements of comprehensive income (loss), cash flows and shareholders’ equity for each of the three years in the period ended December 31, 2015 of Invacare Corporation and our report dated March 3, 2016 expressed an unqualified opinion thereon.

	/s/  Ernst & Young LLP
Cleveland, Ohio
March 3, 2016

FS-2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

INVACARE CORPORATION AND SUBSIDIARIES

	Years Ended December 31,
	2015			2014			2013
	(In thousands, except per share data)
Net sales	$	1,142,338		$	1,270,163		$	1,334,505
Cost of products sold	829,514			922,775			967,079
Gross Profit	312,824			347,388			367,426
Selling, general and administrative expenses	319,847			383,913			397,332
Charges related to restructuring activities	1,971			11,112			9,336
Asset write-downs to intangible assets	—			13,041			1,523
Interest expense	2,911			3,039			3,078
Interest income	(165		)	(507		)	(384		)
Loss from Continuing Operations Before Income Taxes	(11,740		)	(63,210		)	(43,459		)
Income taxes	14,710			5,550			10,875
Net Loss from Continuing Operations	(26,450		)	(68,760		)	(54,334		)
Net earnings from discontinued operations (net of tax of $0; $1,200 and $2,235)	—			1,596			6,442
Gain on sale (net of tax of $140; $5,975 and $1,220)	260			11,094			80,943
Total Net Earnings from Discontinued Operations	260			12,690			87,385
Net Earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Net Earnings (loss) per Share—Basic:
Net loss from continuing operations	$	(0.82	)	$	(2.15	)	$	(1.70	)
Net earnings from discontinued operations	$	0.01		$	0.40		$	2.74
Net Earnings (loss) per Share—Basic	$	(0.81	)	$	(1.75	)	$	1.04
Weighted Average Shares Outstanding—Basic	32,171			32,009			31,915
Net Earnings (loss) per Share—Assuming Dilution:
Net loss from continuing operations	$	(0.82	)	$	(2.15	)	$	(1.70	)
Net earnings from discontinued operations	$	0.01		$	0.39		$	2.73
Net Earnings (loss) per Share—Assuming Dilution	$	(0.81	)	$	(1.75	)	$	1.03
Weighted Average Shares Outstanding—Assuming Dilution	32,683			32,197			32,043
Net Earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Other comprehensive income (loss):
Foreign currency translation adjustments	(81,404		)	(51,508		)	10,969
Defined benefit plans:
Amortization of prior service costs and unrecognized gains (losses)	(1,375		)	(2,178		)	1,771
Amounts arising during the year, primarily addition of new participants	(784		)	—			(320		)
Deferred tax adjustment resulting from defined benefit plan activity	(44		)	213			(355		)
Valuation reserve (reversal) associated with defined benefit plan activity	47			(222		)	275
Current period gain (loss) on cash flow hedges	2,731			244			83
Deferred tax benefit (loss) related to gain (loss) on cash flow hedges	(177		)	(86		)	(10		)
Other Comprehensive Income (Loss)	(81,006		)	(53,537		)	12,413
Comprehensive Income (Loss)	$	(107,196	)	$	(109,607	)	$	45,464

See notes to consolidated financial statements.

FS-3

CONSOLIDATED BALANCE SHEETS

INVACARE CORPORATION AND SUBSIDIARIES

	December 31, 2015			December 31, 2014
	(In thousands)
Assets
Current Assets
Cash and cash equivalents	$	60,055		$	38,931
Trade receivables, net	133,655			154,207
Installment receivables, net	1,145			1,054
Inventories, net	132,807			155,561
Deferred income taxes	—			2,048
Other current assets	34,459			36,798
Assets held for sale	—			17,388
Total Current Assets	362,121			405,987
Other Assets	4,659			19,053
Intangibles	31,000			38,013
Property and Equipment, net	78,683			79,659
Goodwill	361,680			421,019
Total Assets	$	838,143		$	963,731
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	105,608		$	119,927
Accrued expenses	122,420			155,699
Current taxes, payable and deferred	17,588			12,634
Short-term debt and current maturities of long-term obligations	2,028			959
Liabilities held for sale	—			1,013
Total Current Liabilities	247,644			290,232
Long-Term Debt	45,092			19,372
Other Long-Term Obligations	82,589			88,805
Shareholders’ Equity
Preferred Shares (Authorized 300 shares; none outstanding)	—			—
Common Shares (Authorized 100,000 shares; 35,024 and 34,219 issued in 2015 and 2014, respectively)—no par	8,815			8,591
Class B Common Shares (Authorized 12,000 shares; 734 and 1,085 issued and outstanding in 2015 and 2014)—no par	184			272
Additional paid-in-capital	247,022			240,743
Retained earnings	310,583			338,362
Accumulated other comprehensive earnings	(9,387		)	71,619
Treasury shares (3,194 and 3,187 shares in 2015 and 2014, respectively)	(94,399		)	(94,265		)
Total Shareholders’ Equity	462,818			565,322
Total Liabilities and Shareholders’ Equity	$	838,143		$	963,731

See notes to consolidated financial statements.

FS-4

CONSOLIDATED STATEMENT OF CASH FLOWS

INVACARE CORPORATION AND SUBSIDIARIES

	Years Ended December 31,
	2015			2014			2013
Operating Activities	(In thousands)
Net earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Adjustments to reconcile net earnings to net cash provided by operating activities:
Gain on sale of business (pre-tax)	(424		)	(17,069		)	(82,163		)
Depreciation and amortization	19,430			32,789			36,789
Provision for losses on trade and installment receivables	754			1,775			3,689
Provision (benefit) for deferred income taxes	3,588			(2,387		)	2,017
Provision (benefit) for other deferred liabilities	266			1,393			(146		)
Provision for stock-based compensation	4,013			5,626			5,957
Loss on disposals of property and equipment	5,135			1,074			666
Asset write-downs to intangible assets	—			13,041			1,523
Asset write-downs related to restructuring activities	—			1,163			—
Amortization of convertible debt discount	796			710			633
Changes in operating assets and liabilities:
Trade receivables	9,164			17,211			9,706
Installment sales contracts, net	283			15			(3,773		)
Inventories	11,610			(9,527		)	23,797
Other current assets	5,283			1,950			(2,070		)
Accounts payable	(7,240		)	8,329			(19,013		)
Accrued expenses	(22,003		)	34,113			1,396
Other long-term liabilities	(9,843		)	(25,244		)	(2,005		)
Net Cash (Used) Provided by Operating Activities	(5,378		)	8,892			10,054
Investing Activities
Purchases of property and equipment	(7,522		)	(12,327		)	(14,158		)
Proceeds from sale of property and equipment	23,117			2,521			885
Proceeds from sale of businesses	13,700			21,870			187,552
Decrease in other long-term assets	15,003			20,949			1,001
Other	78			569			65
Net Cash Provided for Investing Activities	44,376			33,582			175,345
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	219,603			255,658			352,455
Payments on revolving lines of credit and long-term borrowings	(232,808		)	(286,712		)	(545,874		)
Proceeds from exercise of equity awards	2,402			480			512
Payment of financing costs	(1,954		)	—			—
Payment of dividends	(1,589		)	(1,584		)	(1,581		)
Net Cash Used by Financing Activities	(14,346		)	(32,158		)	(194,488		)
Effect of exchange rate changes on cash	(3,528		)	(1,170		)	83
Increase (decrease) in cash and cash equivalents	21,124			9,146			(9,006		)
Cash and cash equivalents at beginning of year	38,931			29,785			38,791
Cash and cash equivalents at end of year	$	60,055		$	38,931		$	29,785

See notes to consolidated financial statements.

FS-5

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

INVACARE CORPORATION AND SUBSIDIARIES

	Common Stock		Class B Stock			Additional Paid-in- Capital		Retained Earnings			Accumulated  Other Comprehensive Earnings			Treasury Stock			Total
	(In thousands)
January 1, 2013 Balance	$	8,503	$	272		$	228,187	$	364,546		$	112,743		$	(93,262	)	$	620,989
Exercise of stock options	7		—			505		—			—			—			512
Non-qualified stock option expense	—		—			3,925		—			—			—			3,925
Restricted stock awards	29		—			2,003		—			—			(532		)	1,500
Net earnings	—		—			—		33,051			—			—			33,051
Foreign currency translation adjustments	—		—			—		—			10,969			—			10,969
Unrealized gain on cash flow hedges	—		—			—		—			73			—			73
Defined benefit plans:
Amortization of prior service costs and unrecognized losses and credits	—		—			—		—			1,691			—			1,691
Additions - new participants	—		—			—		—			(320		)	—			(320		)
Total comprehensive income	—		—			—		—			—			—			45,464
Dividends	—		—			—		(1,581		)	—			—			(1,581		)
December 31, 2013 Balance	$	8,539	$	272		$	234,620	$	396,016		$	125,156		$	(93,794	)	$	670,809
Deferred equity compensation	—		—			69		—			—			—			69
Exercise of stock options	8		—			472		—			—			—			480
Non-qualified stock option expense	—		—			3,356		—			—			—			3,356
Restricted stock awards	44		—			2,226		—			—			(471		)	1,799
Net earnings	—		—			—		(56,070		)	—			—			(56,070		)
Foreign currency translation adjustments	—		—			—		—			(51,508		)	—			(51,508		)
Unrealized gain on cash flow hedges	—		—			—		—			158			—			158
Defined benefit plans:
Amortization of prior service costs and unrecognized losses and credits	—		—			—		—			(2,187		)	—			(2,187		)
Total comprehensive loss	—		—			—		—			—			—			(109,607		)
Dividends	—		—			—		(1,584		)	—			—			(1,584		)
December 31, 2014 Balance	$	8,591	$	272		$	240,743	$	338,362		$	71,619		$	(94,265	)	$	565,322
Exercise of stock options	43		—			2,359		—			—			—			2,402
Non-qualified stock option expense	—		—			1,228		—			—			—			1,228
Restricted stock awards	93		—			2,692		—			—			(134		)	2,651
Conversion from Class B Stock to Common Stock	88		(88		)												—
Net loss	—		—			—		(26,190		)	—			—			(26,190		)
Foreign currency translation adjustments	—		—			—		—			(81,404		)	—			(81,404		)
Unrealized gain on cash flow hedges	—		—			—		—			2,554			—			2,554
Defined benefit plans:
Amortization of prior service costs and unrecognized losses and credits	—		—			—		—			(1,372		)	—			(1,372		)
Additions - new participants	—		—			—		—			(784		)	—			(784		)
Total comprehensive loss	—		—			—		—			—			—			(107,196		)
Dividends	—		—			—		(1,589		)	—			—			(1,589		)
December 31, 2015 Balance	$	8,815	$	184		$	247,022	$	310,583		$	(9,387	)	$	(94,399	)	$	462,818

See notes to consolidated financial statements.

FS-6

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accounting Policies

Nature of Operations: Invacare Corporation is a leading manufacturer and distributor of medical equipment used in the home based upon the company’s distribution channels, breadth of product line and net sales. The company designs, manufactures and distributes an extensive line of health care products for the non-acute care environment, including the home health care, retail and continuing care markets.

Principles of Consolidation: The consolidated financial statements include the accounts of the company and its wholly owned subsidiaries and include all adjustments, which were of a normal recurring nature, necessary to present fairly the financial position of the company as of December 31, 2015 and the results of its operations and changes in its cash flow for the years ended December 31,2015, 2014 and 2013, respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using a November 30 fiscal year end in order to meet filing deadlines. No material subsequent events have occurred related to the European segment, which would require disclosure or adjustment to the company’s financial statements. All significant intercompany transactions are eliminated.

Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from these estimates.

Accounts Receivable: The company records accounts receivable when product ships or services are provided to its unaffiliated customers, risk of loss is passed and title is transferred. The estimated allowance for uncollectible amounts is based primarily on management's evaluation of the financial condition of specific customers. The company records accounts receivable reserves for amounts that may become uncollectible in the future. The company writes off accounts receivable when it becomes apparent, based upon customer circumstances, that such amounts will not be collected and legal remedies are exhausted.

Inventories: Inventories are stated at the lower of cost or market with cost determined by the first-in, first-out method. Market values are based on the lower of replacement cost or estimated net realizable value. Finished goods and work in process inventories include material, labor and manufacturing overhead costs. Inventories have been reduced by an allowance for excess and obsolete inventories. The estimated allowance is based on management’s review of inventories on hand compared to estimated future usage and sales.

Property and Equipment: Property and equipment are stated on the basis of cost. The company principally uses the straight-line method of depreciation for financial reporting purposes based on annual rates sufficient to amortize the cost of the assets over their estimated useful lives. Machinery and equipment as well as furniture and fixtures are generally depreciated using lives of 3 to 10 years, while buildings and improvements are depreciated using lives of 5 to 40 years. Accelerated methods of depreciation are used for federal income tax purposes. Expenditures for maintenance and repairs are charged to expense as incurred. Amortization of assets under capital leases is included in depreciation expense.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An asset would be considered impaired when the future net undiscounted cash flows generated by the asset are less than its carrying value. An impairment loss would be recognized based on the amount by which the carrying value of the asset exceeds its fair value.

Goodwill and Other Intangibles: In accordance with Intangibles—Goodwill and Other, ASC 350, goodwill and indefinite lived intangibles are subject to annual impairment testing. For purposes of the goodwill impairment test, the fair value of each reporting unit is estimated by forecasting cash flows and discounting those cash flows using appropriate discount rates. The fair values are then compared to the carrying value of the net assets of each reporting unit. Intangibles assets are also reviewed for impairment by estimating forecasted cash flows and discounting those cash flows as needed to calculate impairment amounts.

During 2014, the company recognized intangible write-down charges of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement impairment of $215,000 each recorded in the IPG segment.

During 2013, the company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives impairment of $568,000, a trademark with a definite life impairment of $123,000, customer list impairment of $442,000 and a developed technology impairment of $223,000 each recorded in the IPG segment and a customer list impairment of $167,000 recorded in the North America/HME segment.

FS-7

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Accrued Warranty Cost: Generally, the company’s products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sale to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company’s warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product recall, which could warrant additional warranty reserve provision. See Current Liabilities in the Notes to the Consolidated Financial Statements for a reconciliation of the changes in the warranty accrual.

Product Liability Cost: The company is self-insured in North America for product liability exposures through its captive insurance company, Invatection Insurance Company, which currently has a policy year that runs from September 1 to August 31 and insures annual policy losses up to $10,000,000 per occurrence and $13,000,000 in the aggregate. The company also has additional layers of external insurance coverage, related to all lines of insurance coverage, insuring up to $75,000,000 in aggregate losses per policy year arising from individual claims anywhere in the world that exceed the captive insurance company policy limits or the limits of the company’s per country foreign liability limits, as applicable. There can be no assurance that Invacare’s current insurance levels will continue to be adequate or available at affordable rates.

Product liability reserves are recorded for individual claims based upon historical experience, industry expertise and other indicators. Additional reserves, in excess of the specific individual case reserves, are provided for 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 by the company in estimating 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.

Revenue Recognition: Invacare’s revenues are recognized when products are shipped or service provided to unaffiliated customers, risk of loss is passed and title is transferred. Revenue Recognition, ASC 605, provides guidance on the application of generally accepted accounting principles to selected revenue recognition issues. Shipping and handling costs are included in cost of goods sold.

Sales are made only to customers with whom the company believes collection is reasonably assured based upon a credit analysis, which may include obtaining a credit application, a signed security agreement, personal guarantee and/or a cross corporate guarantee depending on the credit history of the customer. Credit lines are established for new customers after an evaluation of their credit report and/or other relevant financial information. Existing credit lines are regularly reviewed and adjusted with consideration given to any outstanding past due amounts.

The company offers discounts and rebates, which are accounted for as reductions to revenue in the period in which the sale is recognized. Discounts offered include: cash discounts for prompt payment, base and trade discounts based on contract level for specific classes of customers. Volume discounts and rebates are given based on large purchases and the achievement of certain sales volumes. Product returns are accounted for as a reduction to reported sales with estimates recorded for anticipated returns at the time of sale. The company does not sell any goods on consignment.

Distributed products sold by the company are accounted for in accordance with the revenue recognition guidance in ASC 605-45-05. The company records distributed product sales gross as a principal since the company takes title to the products and has the risks of loss for collections, delivery and returns.

Product sales that give rise to installment receivables are recorded at the time of sale when the risks and rewards of ownership are transferred. As such, interest income is recognized based on the terms of the installment agreements. Installment accounts are monitored and if a customer defaults on payments, interest income is no longer recognized. All installment accounts are accounted for using the same methodology, regardless of duration of the installment agreements. The company has entered into an agreement with De Lage Landen, Inc. (“DLL”), a third party financing company, to provide the majority of future lease financing to Invacare customers.

FS-8

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Research and Development: Research and development costs are expensed as incurred and included in cost of products sold. The company’s annual expenditures for product development and engineering were approximately $18,677,000, $23,149,000 and $24,075,000 for 2015, 2014 and 2013, respectively.

Advertising: Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising expenses amounted to $9,203,000, $13,463,000 and $15,026,000 for 2015, 2014 and 2013, respectively, the majority of which is incurred for advertising in the United States and Europe.

Income Taxes: The company uses the liability method in measuring the provision for income taxes and recognizing deferred tax assets and liabilities on the balance sheet. The liability method requires that deferred income taxes reflect the tax consequences of currently enacted rates for differences between the tax and financial reporting bases of assets and liabilities. With the exceptionof two subsidiaries, foreign subsidiaries with undistributed earnings are considered to have such earnings indefinitely reinvested and, accordingly with the exception of the two subsidiaries, no deferred tax liability has been provided for future repatriation of $24,100,000 of unremitted earnings of these foreign subsidiaries. The amount of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that are permanently reinvested is not practically determinable. The company has recorded the deferred tax impact of the unremitted earnings of the two subsidiaries for which the earnings are not permanently reinvested.

Value Added Taxes: The company operates internationally and is required to comply with value added tax (VAT) or goods and service tax (GST) regulations, particularly in Europe and Asia/Pacific. VAT and GST are taxes on consumption in which the company pays tax on its purchases of goods and services and charges customers on the sale of product. The difference between billings to customers and payments on purchases is then remitted or received from the government as filings are due. The company records tax assets and liabilities related to these taxes and the balances in these accounts can vary significantly from period to period based on the timing of the underlying transactions.

Derivative Instruments:Derivatives and Hedging, ASC 815, requires companies to recognize all derivative instruments in the consolidated balance sheet as either assets or liabilities at fair value. The accounting for changes in fair value of a derivative is dependent upon whether or not the derivative has been designated and qualifies for hedge accounting treatment and the type of hedging relationship. For derivatives designated and qualifying as hedging instruments, the company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

The company recognizes its derivative instruments as assets or liabilities in the consolidated balance sheet measured at fair value. A majority of the company’s derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the fair value of the hedged item, if any, is recognized in current earnings during the period of change.

Foreign Currency Translation: The functional currency of the company’s subsidiaries outside the United States is the applicable local currency. The assets and liabilities of the company’s foreign subsidiaries are translated into U.S. dollars at year-end exchange rates. Revenues and expenses are translated at monthly average exchange rates. Gains and losses resulting from translation of balance sheet items are included in accumulated other comprehensive earnings.

Net Earnings Per Share: Basic earnings per share are computed based on the weighted-average number of Common Shares and Class B Common Shares outstanding during the year. Diluted earnings per share are computed based on the weighted-average number of Common Shares and Class B Common Shares outstanding plus the effects of dilutive stock options and awards outstanding during the year. Diluted earnings per share can potentially be impacted by the convertible notes issued in 2007 should the conditions be met to make the notes convertible or if average market price of company stock for the period exceeds the conversion price of $24.79. For periods in which there was a net loss, loss per share assuming dilution utilized weighted average shares-basic.

Defined Benefit Plans: The company’s benefit plans are accounted for in accordance with Compensation-Retirement Benefits, ASC 715 which requires plan sponsors to recognize the funded status of their defined benefit postretirement benefit plans in the consolidated balance sheet, measure the fair value of plan assets and benefit obligations as of the balance sheet date and to recognize changes in that funded status in the year in which the changes occur through comprehensive income.

FS-9

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Reclassifications: In May 2015, the company's board of directors authorized the sale of the company's former rentals businesses. Accordingly, the rentals businesses were treated as held for sale. The company's December 31, 2014 Balance Sheet was restated to reflect this treatment. See Operations Held for Sale in the Notes to the Consolidated Financial Statements for a description of the impact on the consolidated balance sheet.

Recent Accounting Pronouncements: In April 2014, the FASB issued ASU 2014-08 changing the presentation of discontinued operations on the statements of income and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component meets the criteria to be classified as held for sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. This standard must be prospectively applied to all reporting periods presented in financial reports issued after the effective date. Early adoption was permitted for disposals that were not reported in financial statements previously issued or available for issuance. The new accounting guidance was effective for interim and annual periods beginning after December 15, 2014. This standard can impact the presentation of the company's financial statements but does not affect the calculation of net income, comprehensive income or earnings per share. The company adopted ASU 2014-08 effective January 1, 2015 which impacted the company’s Condensed Consolidated Statement of Comprehensive Income (Loss), Balance Sheets and Statement of Cash Flows. Specifically, the disposal of the United States Rentals businesses, in the third quarter of 2015, was not deemed to be a discontinued operation.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires a company to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance requires five steps to be applied: 1) identify the contract(s) with customers, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligation in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than existing revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. An entity can apply the new revenue standard retrospectively to each prior reporting period presented or retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. The new accounting guidance is effective for annual periods beginning after December 15, 2017, due to an approved one-year deferral, and early adoption is not permitted. The company is currently reviewing the impact of the adoption of ASU 2014-09 on the company's financial statements.

In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability, which is similar presentation of debt discounts or premiums. Debt issuance costs are currently reported on the balance sheet as assets and amortized as interest expense. ASU 2015-03 does not change the recognition and measurement guidance for debt issuance costs and requires retrospective application to all periods presented upon adoption. The new accounting guidance is effective for fiscal periods beginning after December 15, 2015 and early adoption is permitted. The company has determined the adoption of ASU 2015-03 will not have a material impact on the company's financial statements.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” to simplify the subsequent measurement of inventory. Entities are now required to subsequently measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, and early adoption is permitted. The company is currently reviewing the impact of the adoption of ASU 2015-11 on the company's financial statements.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." ASU 2015-17 requires deferred tax assets and liabilities to be classified as noncurrent amounts on the balance sheet. The new accounting guidance is effective for fiscal periods beginning after December 15, 2016 and early adoption is permitted. The company adopted ASU 2015-17, on a prospective basis, effective October 1, 2015 and thus the company's deferred tax assets and liabilities have been classified as long-term in its Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted.

In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet while recognizing expense in a manner similar to existing accounting. The new accounting guidance is effective for fiscal periods beginning after December 15, 2018 and early adoption is permitted. The company is currently reviewing the impact of the adoption of ASU 2016-02 on the company's financial statements.

FS-10

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Operations Held for Sale

On May 14, 2015, the company's board of directors authorized the company and Invacare Continuing Care, Inc., a Missouri Corporation and wholly-owned subsidiary of the company ("ICC") to enter into an agreement to sell all the issued and outstanding membership interests of Dynamic Medical Systems, LLC, a Nevada limited liability company, and Invacare Outcomes Management, LLC, a Delaware limited liability company, each a wholly-owned subsidiary of ICC (“collectively the rentals businesses”). The company determined on that date that the "held for sale" criteria of ASC 360-10-45-9 were met, and accordingly, the assets and liabilities of the rentals businesses (long-lived asset disposal group) were shown at their carrying amounts, which approximate their fair values. The rentals businesses had been operated on a stand-alone basis and reported as part of the Institutional Products Group (IPG) segment of the company.

On July 2, 2015, ICC completed the sale (the "Transaction") of all the issued and outstanding membership interests in the rentals businesses, pursuant to a Membership Interest Purchase Agreement (the “Purchase Agreement”) among the company, ICC and Joerns Healthcare Parent, LLC, a Delaware limited liability company. The price paid to ICC for the rentals businesses was approximately $15,500,000 in cash, which was subject to certain post-closing adjustments required by the Purchase Agreement. Net proceeds from the Transaction were approximately $13,700,000, net of taxes and expenses. The company recorded a pre-tax gain of approximately $24,000 in the third quarter of 2015, which represents the excess of the net sales price over the book value of the assets and liabilities of the rentals businesses, as of the date of completion of the disposition. The company recorded expenses related to the sale of the rentals businesses totaling $1,792,000, of which $1,244,000 have been paid as of December 31, 2015. The sale of the rentals businesses was not dilutive to the company's results. The company utilized the net proceeds from the sale to reduce debt outstanding under its credit agreement. The company determined that the sale of the rentals businesses did not meet the criteria for classification as a discontinued operation in accordance with ASU 2014-08. The rentals businesses were treated as held for sale as of June 30, 2015 until sold on July 2, 2015. As a result, the December 31, 2014 Balance Sheet was restated to reflect this treatment.

The assets and liabilities of the rentals businesses that were sold and shown as held for sale in the company's Consolidated Balance Sheets were comprised of the following (in thousands):

	July 2, 2015		December 31, 2014
Trade receivables, net	$	5,834	$	6,207
Inventories, net	412		315
Other current assets	212		221
Property and equipment, net	4,126		5,896
Goodwill	4,518		4,692
Intangibles	40		57
Assets sold	$	15,142	$	17,388
Accounts payable	$	410	$	225
Accrued expenses and other short-term obligations	1,056		788
Liabilities sold	$	1,466	$	1,013

Discontinued Operations

On December 21, 2012, in order to focus on its core equipment product lines, the company entered into an agreement to sell ISG and determined on that date that the "held for sale" criteria of ASC 360-10-45-9 were met. On January 18, 2013, the company completed the sale of the ISG medical supplies business to AssuraMed, Inc. for a purchase price of $150,800,000 in cash. ISG had been operated on a stand-alone basis and reported as a reportable segment of the company. The company recorded a gain of $59,402,000 pre-tax in 2013 which represented the excess of the net sales price over the book value of the assets and liabilities of ISG, excluding cash. The sale of this business is dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the first quarter of 2013. In 2013, the net sales of the discontinued operation of ISG were $18,498,000 and earnings before income taxes were $402,000,

FS-11

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

On August 6, 2013, the company sold Champion, its domestic medical recliner business for dialysis clinics, to Champion Equity Holdings, LLC for $45,000,000 in cash, which was subject to final post-closing adjustments. Champion had been operated on a stand-alone basis and reported as part of the IPG segment of the company. The company recorded a gain of $22,761,000 pre-tax in the third quarter of 2013, which represented the excess of the net sales price over the book value of the assets and liabilities of Champion. The sale of this business was dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the third quarter of 2013. The gain recorded by the company reflects the company's estimated final purchase adjustments.

In 2013, the net sales of the discontinued operation of Champion were $15,857,000 and earnings before income taxes were $3,156,000. Results for Champion include an interest expense allocation from continuing operations to discontinued operations of $449,000 in 2013, as proceeds from the sale were required to be utilized to pay down debt. The interest allocation was based on the net proceeds assumed to pay down debt applying the company's average interest rates for the periods presented.

In addition, in accordance with ASC 350, when a portion of a reporting entity that constitutes a business is disposed of, goodwill associated with that business should be included in the carrying amount of the net assets of the business sold in determining the gain or loss on the disposal. As such, the company allocated additional goodwill of $16,205,000 to Champion from the continuing operations of the IPG segment based on the relative fair value of Champion as compared to the remaining IPG reporting unit.

On August 29, 2014, the company sold Altimate Medical, Inc. (Altimate), its manufacturer of stationary standing assistive devices for use in patient rehabilitation, to REP Acquisition Corporation for $23,000,000 in cash, which was subject to final post-closing adjustments. Altimate had been operated on a stand-alone basis and reported as part of the North America/HME segment of the company. The company recorded a gain of $17,069,000 pre-tax in the third quarter of 2014, which represented the excess of the net sales price over the book value of the assets and liabilities of Altimate. The sale of this business was dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the third quarter of 2014. The gain recorded by the company reflects the company's estimated final purchase adjustments. The assets and liabilities of Altimate were the following as of the date of the sale, August 29, 2014, and as of December 31, 2013 (in thousands):

	August 29, 2014
Trade receivables, net	$	2,019
Inventories, net	1,954
Other current assets	246
Property and equipment, net	176
Other Intangibles	1,047
Assets sold	$	5,442
Accounts payable	$	425
Accrued expenses	316
Liabilities sold	$	741

The net sales of the Altimate discontinued operations were $11,778,000 and $17,854,000 for 2014 and 2013, respectively, and earnings before income taxes were $2,796,000 and $5,118,000, respectively for the same periods. Results for Altimate include an interest expense allocation from continuing operations to discontinued operations of $202,000 and $323,000 for 2014 and 2013, respectively, as proceeds from the sale were required to be utilized to pay down debt. The interest allocation was based on the net proceeds assumed to pay down debt applying the company's average interest rates for the periods presented.

The company recorded total expenses related to the discontinued operations noted above of $8,801,000, of which $8,405,000 were paid as of December 31, 2015.

The company recorded an incremental intra-period tax allocation expense to discontinued operations for 2015, 2014 and 2013 representing the cumulative intra-period allocation expense to discontinued operations based on the company's domestic taxable loss related to continuing operations for 2015, 2014 and 2013.

The company has classified ISG, Champion and Altimate as a discontinued operations for all periods presented.

FS-12

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Receivables

Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. Substantially all of the company’s receivables are due from health care, medical equipment providers and long term care facilities located throughout the United States, Australia, Canada, New Zealand, China and Europe. A significant portion of products sold to providers, both foreign and domestic, are ultimately funded through government reimbursement programs such as Medicare and Medicaid in the U.S. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability.

The estimated allowance for uncollectible amounts ($10,487,000 in 2015 and $11,970,000 in 2014) is based primarily on management’s evaluation of the financial condition of specific customers. In addition, as a result of the company's financing arrangement with DLL, a third party financing company which the company has worked with since 2000, management monitors the collection status of these contracts in accordance with the company’s limited recourse obligations and provides amounts necessary for estimated losses in the allowance for doubtful accounts and establishing reserves for specific customers as needed. The company charges off uncollectible trade accounts receivable after such receivables are moved to collection status and legal remedies are exhausted. See Concentration of Credit Risk in the Notes to the Consolidated Financial Statements for a description of the financing arrangement. Long-term installment receivables are included in “Other Assets” on the consolidated balance sheet.

The company’s U.S. customers electing to finance their purchases can do so using DLL. In addition, the company often provides financing directly for its Canadian customers for which DLL is not an option, as DLL typically provides financing to Canadian customers only on a limited basis. The installment receivables recorded on the books of the company represent a single portfolio segment of finance receivables to the independent provider channel and long-term care customers. The portfolio segment is comprised of two classes of receivables distinguished by geography and credit quality. The U.S. installment receivables are the first class and represent installment receivables re-purchased from DLL because the customers were in default. Default with DLL is defined as a customer being delinquent by 3 payments. The Canadian installment receivables represent the second class of installment receivables which were originally financed by the company because third party financing was not available to the HME providers. The Canadian installment receivables are typically financed for twelve months and historically have had a very low risk of default.

The estimated allowance for uncollectible amounts and evaluation for impairment for both classes of installment receivables is based on the company’s quarterly review of the financial condition of each individual customer with the allowance for doubtful accounts adjusted accordingly. Installments are individually and not collectively reviewed for impairment. The company assesses the bad debt reserve levels based upon the status of the customer’s adherence to a legally negotiated payment schedule and the company’s ability to enforce judgments, liens, etc.

For purposes of granting or extending credit, the company utilizes a scoring model to generate a composite score that considers each customer’s consumer credit score and or D&B credit rating, payment history, security collateral and time in business. Additional analysis is performed for most customers desiring credit greater than $250,000, which generally includes a detailed review of the customer’s financials as well as consideration of other factors such as exposure to changing reimbursement laws.

Interest income is recognized on installment receivables based on the terms of the installment agreements. Installment accounts are monitored and if a customer defaults on payments and is moved to collection, interest income is no longer recognized. Subsequent payments received once an account is put on non-accrual status are generally first applied to the principal balance and then to the interest. Accruing of interest on collection accounts would only be restarted if the account became current again.

All installment accounts are accounted for using the same methodology regardless of the duration of the installment agreements. When an account is placed in collection status, the company goes through a legal process for pursuing collection of outstanding amounts, the length of which typically approximates eighteen months. Any write-offs are made after the legal process has been completed. The company has not made any changes to either its accounting policies or methodology to estimate allowances for doubtful accounts in the last twelve months.

FS-13

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Installment receivables as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015									2014
	Current			Long- Term			Total			Current			Long- Term			Total
Installment receivables	$	2,309		$	2,318		$	4,627		$	2,692		$	5,117		$	7,809
Less:
Unearned interest	(42		)	—			(42		)	(46		)	—			(46		)
	2,267			2,318			4,585			2,646			5,117			7,763
Allowance for doubtful accounts	(1,122		)	(1,670		)	(2,792		)	(1,592		)	(4,260		)	(5,852		)
	$	1,145		$	648		$	1,793		$	1,054		$	857		$	1,911

Installment receivables purchased from DLL during the twelve months ended December 31, 2015 increased the gross installment receivables balance by $936,000 during the year compared to $2,123,000 in 2014. No sales of installment receivables were made by the company during the year.

The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands):

	2015			2014
Balance as of January 1	$	5,852		$	6,039
Current period (benefit) provision	(332		)	796
Direct write-offs charged against the allowance	(2,728		)	(983		)
Balance as of December 31	$	2,792		$	5,852

Installment receivables by class as of December 31, 2015 consist of the following (in thousands):

	Total Installment Receivables		Unpaid Principal Balance		Related Allowance for Doubtful Accounts		Interest Income Recognized
U.S.
Impaired installment receivables with a related allowance recorded	$	3,618	$	3,618	$	2,729	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	946		904		—		52
Impaired installment receivables with a related allowance recorded	63		63		63		—
Total Canadian installment receivables	$	1,009	$	967	$	63	$	52
Total
Non-Impaired installment receivables with no related allowance recorded	946		904		—		52
Impaired installment receivables with a related allowance recorded	3,681		3,681		2,792		—
Total installment receivables	$	4,627	$	4,585	$	2,792	$	52

FS-14

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Installment receivables by class as of December 31, 2014 consist of the following (in thousands):

	Total Installment Receivables		Unpaid Principal Balance		Related Allowance for Doubtful Accounts		Interest Income Recognized
U.S.
Impaired installment receivables with a related allowance recorded	$	6,735	$	6,735	$	5,786	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	1,008		962		—		82
Impaired installment receivables with a related allowance recorded	66		66		66		—
Total Canadian installment receivables	$	1,074	$	1,028	$	66	$	82
Total
Non-Impaired installment receivables with no related allowance recorded	1,008		962		—		82
Impaired installment receivables with a related allowance recorded	6,801		6,801		5,852		—
Total installment receivables	$	7,809	$	7,763	$	5,852	$	82

Installment receivables with a related allowance recorded as noted in the table above represent those installment receivables on a non-accrual basis in accordance with ASU 2010-20. As of December 31, 2015, the company had no U.S. installment receivables past due of 90 days or more for which the company is still accruing interest. Individually, all U.S. installment receivables are assigned a specific allowance for doubtful accounts based on management’s review when the company does not expect to receive both the contractual principal and interest payments as specified in the loan agreement. In Canada, the company had an immaterial amount of installment receivables which were past due of 90 days or more as of December 31, 2015 and December 31, 2014 for which the company is still accruing interest.

The aging of the company’s installment receivables was as follows as of December 31, 2015 and 2014 (in thousands):

	December 31, 2015						December 31, 2014
	Total		U.S.		Canada		Total		U.S.		Canada
Current	$	908	$	—	$	908	$	976	$	—	$	976
0-30 days past due	16		—		16		15		—		15
31-60 days past due	12		—		12		2		—		2
61-90 days past due	1		—		1		—		—		—
90+ days past due	3,690		3,618		72		6,816		6,735		81
	$	4,627	$	3,618	$	1,009	$	7,809	$	6,735	$	1,074

Inventories

Inventories, net of reserves, as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Finished goods	$	67,207	$	85,828
Raw materials	54,005		57,509
Work in process	11,595		12,224
	$	132,807	$	155,561

FS-15

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Other Current Assets

Other current assets as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Value added tax receivables	$	18,031	$	21,273
Recoverable income taxes	367		261
Derivatives (foreign currency forward contracts)	4,143		520
Prepaid insurance	2,538		2,713
Prepaid and other current assets	9,380		12,031
	$	34,459	$	36,798

Other Long-Term Assets

Other long-term assets as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Cash surrender value of life insurance policies	$	1,674	$	15,765
Deferred financing fees	1,088		408
Investments	160		249
Long-term installment receivables	648		857
Long-term deferred taxes	908		613
Other	181		1,161
	$	4,659	$	19,053

The company sold life insurance policies of $11,902,000 and $21,338,000 in 2015 and 2014, respectively, to fund payments as the result of the retirement of certain executive officers of the company.

Property and Equipment

Property and equipment as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015			2014
Machinery and equipment	$	299,721		$	318,286
Land, buildings and improvements	73,830			81,219
Furniture and fixtures	10,031			11,738
Leasehold improvements	11,966			14,517
	395,548			425,760
Less allowance for depreciation	(316,865		)	(346,101		)
	$	78,683		$	79,659

In the fourth quarter of 2015, the company wrote off $4,031,000 of costs previously capitalized associated with a canceled legacy software program based on a change in the North America/HME IT strategy.

FS-16

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Goodwill

The carrying amount of goodwill by operating segment is as follows (in thousands):

	Institutional Products Group			Europe			Consolidated
Balance at January 1, 2014	$	31,615		$	425,919		$	457,534
Foreign currency translation adjustments	(1,696		)	(34,819		)	(36,515		)
Balance at December 31, 2014	29,919			391,100			421,019
Foreign currency translation adjustments	(2,763		)	(56,576		)	(59,339		)
Balance at December 31, 2015	$	27,156		$	334,524		$	361,680

In accordance with Intangibles—Goodwill and Other, ASC 350, goodwill is reviewed annually for impairment. The company first estimates the fair value of each reporting unit and compares the calculated fair value to the carrying value of each reporting unit. A reporting unit is defined as an operating segment or one level below. The company has determined that its reporting units are the same as its operating segments. The company completes its annual impairment tests in the fourth quarter of each year or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. To estimate the fair values of the reporting units, the company utilizes a discounted cash flow method model in which the company forecasts income statement and balance sheet amounts based on assumptions regarding future sales growth, profitability, inventory turns, days' sales outstanding, etc. to forecast future cash flows. The cash flows are discounted using a weighted average cost of capital discount rate where the cost of debt is based on quoted rates for 20-year debt of companies of similar credit risk and the cost of equity is based upon the 20-year treasury rate for the risk free rate, a market risk premium, the industry average beta and a small cap stock adjustment. The discount rates used have a significant impact upon the discounted cash flow methodology utilized in the company's annual impairment testing as higher discount rates decrease the fair value estimates. The assumptions used are based on a market participant's point of view and yielded a discount rate of 9.41% in 2015 for the company's initial impairment analysis compared to 9.89% in 2014 and 10.00% in 2013.

The company also utilizes an Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) Method to compute the fair value of its reporting units which considers potential acquirers and their EV to EBITDA multiples adjusted by an estimated premium. While more weight is given to the discounted cash flow method, the EV to EBITDA Method does provide corroborative evidence of the reasonableness of the discounted cash flow method results.

While there was no indication of impairment in 2015 related to goodwill for the Europe or IPG segments, a future potential impairment is possible for these segments should actual results differ materially from forecasted results used in the valuation analysis. Furthermore, the company's annual valuation of goodwill can differ materially if the market inputs used to determine the discount rate change significantly. For instance, higher interest rates or greater stock price volatility would increase the discount rate and thus increase the chance of impairment. In consideration of this potential, the company reviewed the results if the discount rate used were 100 basis points higher for the 2015 impairment analysis and determined that there still would not be an indicator of potential impairment for the Europe or IPG segments.

As part of the company's review of goodwill for impairment, the company also considers the potential for impairment of any other assets. In 2015, 2014 and 2013, the company performed a review for potential impairments of any other assets, including the company's Taylor Street facility which is subject to the FDA consent decree that limits the company's manufacture and distribution of custom power and manual wheelchairs, wheelchair components and wheelchair subassemblies at the Taylor Street facility. The company determined there was no impairment of the property, plant and equipment of the Taylor Street facility based on a comparison of the forecasted undiscounted cash flows to the carrying value of the net assets in accordance with ASC 360. In addition, the company determined there was no impairment of net inventory associated with the facility.

FS-17

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Intangibles

All of the company’s other intangible assets have been assigned definite lives and continue to be amortized over their useful lives, except for $24,524,000 related to trademarks, which have indefinite lives. The changes in intangible balances reflected on the balance sheet from December 31, 2014 to December 31, 2015 were the result of foreign currency translation and amortization.

The company’s intangibles consist of the following (in thousands):

	December 31, 2015				December 31, 2014
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Customer lists	$	49,858	$	45,019	$	78,693	$	71,343
Trademarks	24,524		—		28,314		—
License agreements	1,098		1,098		1,290		1,290
Developed technology	7,405		5,921		8,297		6,340
Patents	5,959		5,843		6,102		5,804
Other	1,161		1,124		2,548		2,454
	$	90,005	$	59,005	$	125,244	$	87,231

Amortization expense related to other intangibles was $1,907,000, $20,358,000 and $10,567,000 for 2015, 2014 and 2013, respectively. Estimated amortization expense for each of the next five years is expected to be $1,626,000 for 2016, $1,549,000 in 2017, $1,530,000 in 2018, $992,000 in 2019 and $184,000 in 2020. Amortized intangibles are being amortized on a straight-line basis over remaining lives from 1 to 10 years with the majority of the intangibles being amortized over an average remaining life of approximately 5 years.

In accordance with ASC 350, Intangibles—Goodwill and Other, the company reviews intangibles for impairment. The company's intangible assets consist of intangible assets with defined lives as well as intangible assets with indefinite lives. Defined-lived intangible assets consist principally of customer lists, developed technology, license agreements, patents and other miscellaneous intangibles such as non-compete agreements. The company's indefinite lived intangible assets consist entirely of trademarks.

The company evaluates the carrying value of definite-lived assets whenever events or circumstances indicate possible impairment. Definite-lived assets are determined to be impaired if the future un-discounted cash flows expected to be generated by the asset are less than the carrying value. Actual impairment amounts for definite-lived assets are then calculated using a discounted cash flow calculation. The company reviews indefinite-lived assets for impairment annually in the fourth quarter of each year and whenever events or circumstances indicate possible impairment. Any impairment amounts for indefinite-lived assets are calculated as the difference between the future discounted cash flows expected to be generated by the asset less than the carrying value for the asset.

During 2014, the company recognized intangible write-down charges in the IPG segment of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement of $215,000 as the actual and remaining cash flows associated with the intangibles were less than the cash flows originally used to value the intangibles, primarily driven by reduced net sales. The after-tax and pre-tax impairment amounts were the same for each of the above impairments.

During 2013, the company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives impairment of $568,000, a trademark with a definite life impairment of $123,000, customer list impairment of $442,000 and developed technology impairment of $223,000 all recorded in the IPG segment and a customer list impairment of $167,000 recorded in the North America/HME segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the indefinite-lived trademark impairment in the IPG segment, which was $496,000 after-tax.

The fair values of the customer lists were calculated using an excess earnings method, using a discounted cash flow model. Estimated cash flow returns to the customer relationship were reduced by the cash flows required to satisfy the return requirements of each of the assets employed with the residual cash flow then discounted to value the customer list. The fair values of the trademarks and developed technology were calculated using a relief from royalty payment methodology which requires applying an estimated market royalty rate to forecasted net sales and discounting the resulting cash flows to determine fair value. The patent was impaired as the related product was discontinued.

FS-18

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Accrued Expenses

Accrued expenses as of December 31, 2015 and 2014 consisted of accruals for the following (in thousands):

	2015		2014
Salaries and wages	$	41,305	$	40,850
Taxes other than income taxes, primarily Value Added Taxes	21,424		24,743
Warranty cost	22,820		30,738
Supplemental Executive Retirement Plan (SERP)	1,279		21,517
Freight	6,153		6,202
Professional	5,774		6,613
Product liability, current portion	3,127		4,334
Rebates	1,791		1,722
Insurance	695		1,266
Interest	872		1,068
Derivatives (foreign currency forward exchange contracts)	2,014		2,526
Severance	2,477		4,209
Other items, principally trade accruals	12,689		9,911
	$	122,420	$	155,699

As a result of the retirement of certain executives of the company during 2015, Supplemental Executive Retirement Program (SERP) and deferred compensation payments of $21,126,000 and $3,525,000, respectively, were made in 2015.

Accrued rebates relate to several volume incentive programs the company offers its customers. The company accounts for these rebates as a reduction of revenue when the products are sold in accordance with the guidance in ASC 605-50, Customer Payments and Incentives.

Generally, the company's products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sales to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company's warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product field action and recalls, which could warrant additional warranty reserve provision.

Changes in accrued warranty costs were as follows (in thousands):

	2015			2014
Balance as of January 1	$	30,738		$	27,393
Warranties provided during the period	11,561			21,472
Settlements made during the period	(17,817		)	(22,752		)
Changes in liability for pre-existing warranties during the period, including expirations	(1,662		)	4,625
Balance as of December 31	$	22,820		$	30,738

The company's warranty expense for 2015 includes reversals of $2,325,000 principally driven by a $2,000,000 reversal as a result of changes in the company's estimate of costs related to a recall for a component in a stationary oxygen concentrator that was manufactured in the company’s facility in Suzhou, China, and sold globally, which is no longer used in production.

The company's warranty expense for 2014 includes $11,493,000 for three specific product issues. First, an expense of $6,559,000 for a recall related to a component in a stationary oxygen concentrator that was manufactured in the company’s facility in Suzhou, China, and sold globally, which is no longer used in production. This expense was recorded in the European segment ($3,395,000) and North America/HME segment ($3,164,000). Second, an expense of $2,057,000 for the recall of a sieve bed component used within stationary oxygen concentrators manufactured during August 2014, which was recorded in the North

FS-19

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

America/HME segment. Third, an incremental expense of $2,877,000 related to the company's joystick recall as a result of higher than previously anticipated response rates from larger customers in the U.S. and Canada and a shift in the product mix toward higher cost joysticks, which was recorded in the North America/HME segment ($1,612,000) and the Asia/Pacific segment ($1,265,000).

These warranty reserves are subject to adjustment in future periods as new developments change the company's estimate of the total cost of these matters.

Long-Term Debt

Debt as of December 31, 2015 and 2014 consisted of the following (in thousands):

	2015			2014
Senior secured revolving credit facility, due in October 2015	$	—		$	4,000
Convertible senior subordinated debentures at 4.125%, due in February 2027	12,147			11,351
Other notes and lease obligations	34,973			4,980
	47,120			20,331
Less current maturities of long-term debt	(2,028		)	(959		)
	$	45,092		$	19,372

The company had outstanding letters of credit of $3,230,000 and $7,063,000 as of December 31, 2015 and 2014, respectively.

On September 30, 2015 the company entered into an Amended and Restated Revolving Credit and Security Agreement (the “Amended and Restated Credit Agreement”), amending and restating the company’s existing Revolving Credit and Security Agreement which was originally entered into on January 16, 2015 and amended on April 22, 2015 (the “Prior Credit Agreement”) and which matures in January 2018. The Amended and Restated Credit Agreement was entered into by and among the company, certain of the company’s direct and indirect U.S. and Canadian subsidiaries and certain of the company’s European subsidiaries (together with the company, the “Borrowers”), certain other of the company’s direct and indirect U.S., Canadian and European subsidiaries (the “Guarantors”), and PNC Bank, National Association (“PNC”), JPMorgan Chase Bank, N.A., J.P. Morgan Europe Limited, KeyBank National Association, and Citizens Bank, National Association (the “Lenders”). PNC is the administrative agent (the “Administrative Agent”) and J.P. Morgan Europe Limited is the European agent (the “European Agent”) under the Amended and Restated Credit Agreement.

The Amended and Restated Credit Agreement contains customary representations, warranties and covenants. Exceptions to the operating covenants in the Amended and Restated Credit Agreement provide the company with flexibility to, among other things, enter into or undertake certain sale and leaseback transactions, dispositions of assets, additional credit facilities, sales of receivables, additional indebtedness and intercompany indebtedness, all subject to limitations set forth in the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement also contains a covenant requiring the company to maintain minimum availability under the U.S. and Canadian Credit Facility of not less than the greater of (i) 11.25% of the maximum amount that may be drawn under the U.S. and Canadian Credit Facility for five (5) consecutive business days, or (ii) $10,000,000 on any business day (which amount was reduced to $5,000,000 pursuant to an amendment in February 2016 -- see “Subsequent Events”). The company also is subject to dominion triggers under the U.S. and Canadian Credit Facility (as defined below) requiring the company to maintain borrowing capacity of not less than $11,250,000 on any business day or $12,500,000 for five consecutive days in order to avoid triggering full control by an agent for the lenders of the company's cash receipts for application to the company’s obligations under the agreement.

The Amended and Restated Credit Agreement contains customary default provisions, with certain grace periods and exceptions, which provide that events of default that include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption of any material manufacturing facilities for more than 10 consecutive days. The initial borrowings under the U.S. and Canadian Credit Facility were used to repay and terminate the company’s previous credit agreement, which was scheduled to mature in October 2015.

The Prior Credit Agreement was amended on April 22, 2015 to provide for certain technical amendments, including: (1) revising various provisions of the Prior Credit Agreement to allow the company to issue letters of credit denominated in foreign currencies other than those originally contemplated under the Prior Credit Agreement; and (2) amending certain covenants in the

FS-20

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Prior Credit Agreement to permit the company (i) to make a single acquisition of assets of a third-party for cash consideration not to exceed $500,000 on or before September 30, 2015 and (ii) to accept surrenders of company shares by employees to facilitate the payment of tax withholding obligations in connection with employee equity compensation.

In connection with entering into the Prior Credit Agreement and subsequent Amended and Restated Credit Agreement, the company incurred $1,954,000 in fees which were capitalized and are being amortized through January 2018. In addition, as a result of terminating the previous credit agreement, which was scheduled to mature in October 2015, the company wrote-off $668,000 in previously capitalized fees in the first quarter of 2015, which is reflected in the expense of the North America / HME segment. In comparison, the company wrote-off $1,070,000 in fees previously capitalized in the first quarter of 2014 as a result of a reduction in the borrowing capacity under the company's previous credit agreement, which was scheduled to mature in October 2015.

U.S. and Canadian Borrowers Credit Facility

For the company's U.S. and Canadian Borrowers, the Amended and Restated Credit Agreement provides for an asset-based-lending senior secured revolving credit facility which is secured by substantially all of the company’s U.S. and Canadian assets, other than real estate. The Amended and Restated Credit Agreement provides the company and the other Borrowers with a credit facility in an aggregate principal amount of $100,000,000, subject to availability based on a borrowing base formula, under a senior secured revolving credit, letter of credit and swing line loan facility (the “U.S. and Canadian Credit Facility”). Up to $25,000,000 of the U.S. and Canadian Credit Facility will be available for issuance of letters of credit. The aggregate principal amount of the U.S. and Canadian Credit Facility may be increased by up to $25,000,000 to the extent requested by the company and agreed to by any Lender or new financial institution approved by the Administrative Agent. The aggregate borrowing availability under the U.S. and Canadian Credit Facility is determined based on a borrowing base formula set forth in the Amended and Restated Credit Agreement and summarized below.

Under the Amended and Restated Credit Agreement, the aggregate usage under the U.S. and Canadian Credit Facility may not exceed an amount equal to the sum of (a) 85% of eligible U.S. accounts receivable plus (b) the lesser of (i) 70% of eligible U.S. inventory and eligible foreign in-transit inventory and (ii) 85% of the net orderly liquidation value of eligible U.S. inventory and eligible foreign in-transit inventory (not to exceed $4,000,000), plus (c) the lesser of (i) 85% of the net orderly liquidation value of U.S. eligible machinery and equipment and (ii) $2,485,000 (subject to reduction as provided in the Amended and Restated Credit Agreement), plus (d) 85% of eligible Canadian accounts receivable, plus (e) the lesser of (i) 70% of eligible Canadian inventory and (ii) 85% of the net orderly liquidation value of eligible Canadian inventory, less (f) swing loans outstanding under the U.S. and Canadian Credit Facility, less (g) letters of credit issued and undrawn under the U.S. and Canadian Credit Facility, less (h) a $10,000,000 minimum availability reserve, less (i) other reserves required by the Administrative Agent, and in each case subject to the definitions and limitations in the Amended and Restated Credit Agreement. As of December 31, 2015, the company was in compliance with all covenant requirements and had borrowing capacity on the U.S. and Canadian Credit Facility under the Amended and Restated Credit Agreement of $38,230,000, taking into account the $10,000,000 minimum availability reserve (which amount was reduced to $5,000,000 pursuant to an amendment in February 2016 - see "Subsequent Events"), then-outstanding letters of credit, other reserves and the $11,250,000 dominion trigger amount noted above.

Interest will accrue on outstanding indebtedness under the Amended and Restated Credit Agreement at the LIBOR rate, plus a margin ranging from 2.25% to 2.75%, or at the alternate base rate, plus a margin ranging from 1.25% to 1.75%, as selected by the company. Borrowings under the U.S. and Canadian Credit Facility are subject to commitment fees of 0.25% or 0.375% per year, depending on utilization.

European Credit Facility

The Amended and Restated Credit Agreement retains the existing asset-based lending senior secured revolving credit facility provided for the company and the U.S. and Canadian Borrowers under the Prior Credit Agreement (the “Existing Credit Facility”) and provides for a new revolving credit, letter of credit and swing line loan facility which gives the European Borrowers the ability to borrow up to an aggregate principal amount of $30,000,000, with a $5,000,000 sublimit for letters of credit and a $2,000,000 sublimit for swing line loans (the “European Credit Facility”). Up to $15,000,000 of the European Credit Facility will be available to each of Invacare Limited (the “UK Borrower”) and Invacare Poirier SAS (the “French Borrower” and, together with the UK Borrower, the “European Borrowers”). The European Credit Facility matures in January 2018, together with the Existing Credit Facility. The aggregate borrowing availability for each European Borrower under the European Credit Facility is determined based on a borrowing base formula set forth in the Amended and Restated Credit Agreement and summarized below. Under the Amended and Restated Credit Agreement, the aggregate borrowings of each of the European Borrowers under the European Credit Facility

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INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

may not exceed an amount equal to (a) 85% of the European Borrower’s eligible accounts receivable, less (b) the European Borrower’s borrowings and swing line loans outstanding under the European Credit Facility, less (c) the European Borrower’s letters of credit issued and undrawn under the European Credit Facility, less (d) a $3,000,000 minimum availability reserve, less (e) other reserves required by the European Agent, and in each case subject to the definitions and limitations in the Amended and Restated Credit Agreement. As of December 31, 2015, as determined pursuant to the borrowing base formula, the aggregate borrowing base available to the European Borrowers under the European Credit Facility was approximately $21,528,000, with aggregate borrowing availability of approximately $15,153,000, taking into account the $3,000,000 minimum availability reserve and a $3,375,000 dominion trigger amount described below.

The aggregate principal amount of the European Credit Facility may be increased by up to $10,000,000 to the extent requested by the company and agreed to by any Lender or Lenders that wish to increase their lending participation or, if not agreed to by any Lender, a new financial institution that agrees to join the European Credit Facility and that is approved by the Administrative Agent and the European Agent.

Interest will accrue on outstanding indebtedness under the European Credit Facility at an adjusted LIBOR rate, plus a margin ranging from 2.50% to 3.00%, or for swing line loans, at the overnight LIBOR rate, plus a margin ranging from 2.50% to 3.00%. The margin will be adjusted quarterly based on utilization. Borrowings under the European Credit Facility are subject to commitment fees of between 0.25% and 0.375% per year, depending on utilization.

The European Credit Facility is secured by substantially all of the personal property assets of the UK Borrower and its in-country subsidiaries, and all of the receivables of the French Borrower and its in-country subsidiaries. The UK and French facilities (which comprise the European Credit Facility) are cross collateralized, and the US personal property assets previously pledged under the Existing Credit Facility also serve as collateral for the European Credit Facility.

The European Credit Facility is subject to customary representations, warranties and covenants generally consistent with those applicable to the Existing Credit Facility. Exceptions to the operating covenants in the Amended and Restated Credit Agreement provide the company with flexibility to, among other things, enter into or undertake certain sale/leaseback transactions, dispositions of assets, additional credit facilities, sales of receivables, additional indebtedness and intercompany indebtedness, all subject to limitations set forth in the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement also contains a covenant requiring the European Borrowers to maintain undrawn availability under the European Credit Facility of not less than the greater of (i) 11.25% of the maximum amount that may be drawn under the European Credit Facility for five (5) consecutive business days, or (ii) $3,000,000 on any business day. The European Borrowers also are subject to cash dominion triggers under the European Credit Facility requiring the European Borrower to maintain borrowing capacity of not less than $3,375,000 on any business day or 12.50% of the maximum amount that may be drawn under the European Credit Facility for five (5) consecutive business days in order to avoid triggering full control by an agent for the Lenders of the European Borrower’s cash receipts for application to its obligations under the European Credit Facility.

The European Credit Facility is subject to customary default provisions, with certain grace periods and exceptions, consistent with those applicable to the Existing Credit Facility, which provide that events of default include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, cross-default, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption in the operations of any material manufacturing facility for more than 10 consecutive days.

The proceeds of the European Credit Facility will be used to finance the working capital and other business needs of the company.

Convertible senior subordinated debentures

In 2007, the company issued $135,000,000 principal amount of Convertible Senior Subordinated Debentures due 2027. The debentures are unsecured senior subordinated obligations of the company guaranteed by substantially all of the company’s domestic subsidiaries (which guarantees were released effective February 16, 2016, see "Subsequent Events"), pay interest at 4.125% per annum on each February 1 and August 1, and are convertible upon satisfaction of certain conditions into cash, common shares of the company, or a combination of cash and common shares of the company, subject to certain conditions. The debentures allow the company to satisfy the conversion using any combination of cash or stock, and at the company’s discretion. In the event of such a conversion, the company intends to satisfy the accreted value of the debentures using cash. Assuming adequate cash on hand at the time of conversion, the company also intends to satisfy the conversion spread using cash, as opposed to stock. As of

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INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

December 31, 2015, the principal amount of the company’s Convertible Notes exceeded the if-converted value of those notes by $3,379,000.

The company includes the dilutive effect of shares necessary to settle the conversion spread in the Net Earnings per Share- Assuming Dilution calculation unless such amounts are anti-dilutive as was the case in 2015, 2014 and 2013. The initial conversion rate is 40.3323 shares per $1,000 principal amount of debentures, which represents an initial conversion price of approximately $24.79 per share. Holders of the debentures can convert the debt to common stock if the company’s common stock price is at a level in excess of $32.23, a 30% premium to the initial conversion price for at least 20 trading days during a period of thirty consecutive trading days preceding the date on which the notice of conversion is given. At a conversion price of $32.23 (30% premium over $24.79), the full conversion of the convertible debt equates to 539,000 shares. The debentures are redeemable at the company’s option, subject to specified conditions, on or after February 6, 2012 through and including February 1, 2017. The company may redeem some or all of the debentures for cash on or after February 1, 2017. Holders have the right to require the company to repurchase all or some of their debentures upon the occurrence of certain circumstances on February 1, 2017 and 2022. The company evaluated the terms of the call, redemption and conversion features under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the features did not require separate accounting as derivatives. The notes, debentures and common shares issuable upon conversion of the debentures have been registered under the Securities Act.

The components of the company’s convertible debt as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015			2014
Carrying amount of equity component	$	25,381		$	25,381
Principal amount of liability component	$	13,350		$	13,350
Unamortized discount	(1,203		)	(1,999		)
Net carrying amount of liability component	$	12,147		$	11,351

The unamortized discount of $1,203,000 is to be amortized through February 2017. The effective interest rate on the liability component was 11.5% for 2007 through 2014. Non-cash interest expense of $796,000, $710,000 and $633,000 was recognized in 2015, 2014 and 2013, respectively, in comparison to actual interest expense paid of $551,000, $551,000 and $551,000 based on the stated coupon rate of 4.125%, for each of the same periods. The convertible debt was not convertible as of December 31, 2015 nor was the convertible debt conversion price threshold of $32.23 met during 2015.

There were no borrowings denominated in foreign currencies as of December 31, 2015 or December 31, 2014. For 2015 and 2014, the weighted average interest rate on all borrowings, excluding capital leases, was 3.83% and 2.87%, respectively.

The aggregate minimum maturities of long-term debt for each of the next five years are as follows: $2,028,000 in 2016, $2,169,000 in 2017, $1,784,000 in 2018, $1,632,000 in 2019, and $1,703,000 in 2020. Interest paid on all borrowings was $2,753,000, $3,302,000 and $4,046,000 in 2015, 2014 and 2013, respectively.

Other Long-Term Obligations

Other long-term obligations as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Supplemental Executive Retirement Plan liability	$	4,930	$	6,067
Product liability	14,582		18,860
Deferred income taxes	32,115		30,423
Deferred gain on sale leaseback	6,978		—
Deferred compensation	4,167		5,667
Uncertain tax obligation including interest	4,467		15,160
Other	15,350		12,628
Total long-term obligations	$	82,589	$	88,805

FS-23

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

On April 23, 2015, the company entered into a real estate sales leaseback transaction which resulted in the recording of an initial deferred gain of $7,414,000, the majority of which is included in Other Long-Term Obligations and will be recognized over the 20-year life of the leases. The gain realized in 2015 was $171,000. The decrease in the uncertain tax obligation was driven primarily by a reclassification from long term obligations to current taxes payable based on the amount expected be paid in the next twelve months.

Leases and Commitments

The company leases a portion of its facilities, transportation equipment, data processing equipment and certain other equipment. These leases have terms from 1 to 20 years and provide for renewal options. Generally, the company is required to pay taxes and normal expenses of operating the facilities and equipment. As of December 31, 2015, the company is committed under non-cancelable operating leases, which have initial or remaining terms in excess of one year and expire on various dates through 2024. Lease expenses were approximately $20,360,000 in 2015, $23,568,000 in 2014 and $24,726,000 in 2013.

On April 23, 2015, the company sold and leased back, under four separate lease agreements, four properties located in Ohio and one property in Florida for net proceeds of $23,000,000, which were used to reduce debt under the U.S. and Canadian Credit Facility. The total annual rent for the properties will be $2,275,000 for the first year, which can increase annually over the 20 year term of the leases based on the applicable geographical consumer price index (CPI). Each of the four lease agreements contains three 10-year renewals with the rent for each option term based on the greater of the then-current fair market rent for each property or the then- current rate and increasing annually by the applicable CPI. Under the terms of the lease agreements, the company is responsible for all taxes, insurance and utilities. The company is permitted to sublet the properties; however, the properties are currently being utilized exclusively by the company and there is no current subletting. The company is required to adequately maintain each of the properties and any leasehold improvements will be amortized over the lesser of the lives of the improvements or the remaining lease lives.

In connection with the transaction, the requirements for sale lease-back accounting were met. Accordingly, the company recorded the sale of the properties, removed the related property and equipment from the company's balance sheet, recognized an initial deferred gain of $7,414,000 and an immediate loss of $257,000 related to one property and recorded new lease liabilities. Specifically, the company recorded four capital leases totaling $32,339,000 and one operating lease related to leased land, which was not a material component of the transaction. The gains on the sales of the properties are required to be deferred and recognized over the life of the leases as the property sold is being leased back. The deferred gain is classified under Other Long-Term Obligations on the Condensed Consolidated Balance Sheet.

The amount of buildings and equipment capitalized in connection with capital leases was $42,640,000 and $12,123,000 at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, accumulated amortization was $7,667,000 and $7,143,000, respectively, which is included in depreciation expense.

Future minimum operating and capital lease commitments, as of December 31, 2015, are as follows (in thousands):

	Capital Leases			Operating Leases
2016	$	3,375		$	15,067
2017	3,375			8,804
2018	2,848			5,005
2019	2,671			2,378
2020	2,671			1,101
Thereafter	32,872			268
Total future minimum lease payments	47,812			$	32,623
Amounts representing interest	(12,839		)
Present value of minimum lease payments	$	34,973

FS-24

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Retirement and Benefit Plans

Substantially all full-time salaried and hourly domestic employees are included in the Invacare Retirement Savings Plan sponsored by the company. The company makes matching cash contributions up to 66.7% of employees’ contributions up to 3% of compensation. The company also makes quarterly contributions to this Plan equal to a percentage of qualified wages. In 2015, quarterly contributions were made at 1% of qualified wages. The company may make discretionary contributions to the domestic plans based on an annual resolution of the Board of Directors. Contribution expense for the Invacare Retirement Savings Plan in 2015, 2014 and 2013 was $2,573,000, $2,698,000 and $3,126,000, respectively.

The company sponsors a Deferred Compensation Plus Plan covering certain employees, which provides for elective deferrals and the company retirement deferrals so that the total retirement deferrals equal amounts that would have contributed to the company’s principal retirement plans if it were not for limitations imposed by income tax regulations.

The company sponsors a non-qualified defined benefit Supplemental Executive Retirement Plan (SERP) for certain key executives. Effective December 31, 2008, the SERP was amended, in part to comply with IRS Section 409A. As a result of the amendment, the plan became a defined benefit cash balance plan for the non-retired participants and thus, future payments by the company will be made based upon a cash balance formula with interest credited at a rate determined annually by the Compensation and Management Development Committee of the Board of Directors. In 2015 interest was credited at 0% for active participants in the SERP in accordance with a July 1, 2011 resolution of the Compensation and Management Development Committee of the Board of Directors. The plan continues to be unfunded with individual hypothetical accounts maintained for each participant.

The SERP projected benefit obligation related to this unfunded plan was $6,209,000 and $27,548,000 at December 31, 2015 and 2014, respectively, and the accumulated benefit obligation was $6,209,000 and $27,548,000 at December 31, 2015 and 2014, respectively. The projected benefit obligations were calculated using an assumed future salary increase of 4% at both December 31, 2015 and 2014. The assumed discount rate, relevant for three participants unaffected by the plan conversion was 4.34% and 3.95% for 2015 and 2014, respectively, based upon the discount rate on high-quality fixed-income investments without adjustment. The retirement age was 67 for 2015 and 67 for 2014. Expense for the plan in 2015 was $142,000 compared to expense of $539,000 in 2014 and income of $14,000 in 2013. The expense was comprised of interest income of $42,000 in 2015, interest expense of $377,000 in 2014 and income of $236,000 in 2013 with the remaining portion related to service costs, prior service costs and other gains/losses. Benefit payments in 2015, 2014 and 2013 were $21,517,000, $394,000 and $398,000, respectively.

The company also sponsors a Death Benefit Only Plan (DBO) for certain key executives that provides a benefit equal to three times the participant’s final target earnings should the participant’s death occur while an employee and a benefit equal to one times the participant’s final earnings upon the participant’s death after normal retirement or if a participant dies after his or her employment with the company is terminated following a change in control of the company. Expense for the plan in 2015 was $103,000 compared to expense of $808,000 and income of $259,000 in 2014 and 2013, respectively. The expense was comprised of service and accrual adjustment expense of $28,000 in 2015, expense of $692,000 in 2014 and income of $364,000 in 2013 with the remaining portion related to interest costs in each year, respectively. There were no benefit payments in 2015, 2014 or 2013.

In conjunction with these non-qualified and unfunded U.S. defined benefit plans, the company has invested in life insurance policies related to certain employees to help satisfy these obligations of which $11,902,000 and $21,338,000 in life insurance policies were sold during 2015 and 2014, respectively, to fund payments related to the retirement of certain executive officers of the company.

In Europe, the company maintains two defined benefit plans in Switzerland. In Switzerland, a statutory pension plan is maintained with a private insurance company and, in accordance with Swiss law, the plan functions as a defined contribution plan whereby employee and employer contributions are defined as a percentage of individual salary depending on the age of the employee and a guaranteed interest rate, which is annually defined by the Swiss Pension Fund. Under U.S. GAAP, the plans are treated as a defined benefit plans. During 2014, the company terminated its plan in the Netherlands which contained benefits and provisions for an Old Age Pension benefit that started at age 65 and were payable until death and a Survivors Pension that started immediately after the death of the insured and is payable until the death of the surviving spouse. Under U.S. GAAP the plan was treated as a defined benefit plan. Income for both the Switzerland and Netherlands plans was $19,000, $220,000 and $205,000 in 2015, 2014 and 2013, respectively.

Accumulated other comprehensive income associated with the SERP, DBO, Swiss and Netherlands pension plans combined was $9,757,000 and $7,601,000 as of December 31, 2015 and 2014, respectively for a net change of $2,156,000 with $226,000 in net periodic benefit income recognized during the year.

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INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Equity Compensation

The company’s Common Shares have a $.25 stated value. The Common Shares and the Class B Common Shares generally have identical rights, terms and conditions and vote together as a single class on most issues, except that the Class B Common Shares have ten votes per share, carry a 10% lower cash dividend rate and, in general, can only be transferred to family members. Holders of Class B Common Shares are entitled to convert their shares into Common Shares at any time on a share-for-share basis.

On May 16, 2013 shareholders approved the Invacare Corporation 2013 Equity Compensation Plan (the “2013 Plan”), which was adopted on March 27, 2013 by the company's Board of Directors (the “Board”). The Board adopted the 2013 Plan to replace the company's prior equity plan, the Invacare Corporation Amended and Restated 2003 Performance Plan (the “2003 Plan”), which expired on May 21, 2013. Due to its expiration, no new awards may be granted under the 2003 Plan; however, awards granted prior to its expiration will remain in effect under their original terms.

The 2013 Plan uses a fungible share-counting method, under which each common share underlying an award of stock options or stock appreciation rights ("SAR") will count against the number of total shares available under the 2013 Plan as one share; and each common share underlying any award other than a stock option or a SAR will count against the number of total shares available under the 2013 Plan as two shares. Any common shares that are added back to the 2013 Plan as the result of the cancellation or forfeiture of an award granted under the 2013 Plan will be added back in the same manner such shares were originally counted against the total number of shares available under the 2013 Plan. Each common share that is added back to the 2013 Plan due to a cancellation or forfeiture of an award granted under the 2003 Plan will be added back as one common share.

The Compensation and Management Development Committee of the Board (the “Compensation Committee”), in its discretion, may grant an award under the 2013 Plan to any director or employee of the company or an affiliate. The 2013 Plan initially allows the Compensation Committee to grant up to 4,460,337 common shares in connection with the following types of awards with respect to shares of the company's common shares: incentive stock options, nonqualified stock options, SARs, restricted stock, restricted stock units, unrestricted stock and performance shares. The Compensation Committee also may grant performance units that are payable in cash. The Compensation Committee has the authority to determine which participants will receive awards, the amount of the awards and the other terms and conditions of the awards. 

The 2013 Plan provides that shares granted come from the company’s authorized but unissued common shares or treasury shares. In addition, the company’s stock-based compensation plans allow participants to exchange mature shares for minimum withholding taxes, which results in the company acquiring treasury shares. Under these provisions, the company acquired approximately 7,000 treasury shares for $134,000 in 2015, 29,000 shares for $471,000 in 2014 and 23,000 shares for $532,000 in 2013.

The amounts of equity-based compensation expense recognized as part of selling, general and administrative expenses were as follows (in thousands):

	2015		2014		2013
Non-Qualified stock options	$	1,228	$	3,356	$	3,926
Restricted stock and restricted stock units	2,785		2,270		2,031
Performance shares and performance share units	—		—		—
Total stock-based compensation expense	$	4,013	$	5,626	$	5,957

As of December 31, 2015, unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2013 Plan and previous plans, which is related to non-vested options and shares, was as follows (in thousands):

	2015		2014		2013
Non-Qualified stock options	$	1,059	$	2,600	$	8,270
Restricted stock and restricted stock units	9,476		4,461		3,705
Performance shares and performance share units	—		—		—
Total stock-based compensation expense	$	10,535	$	7,061	$	11,975

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INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Total unrecognized compensation cost will be adjusted for future changes in actual and estimated forfeitures and for updated vesting assumptions for the performance share awards (see "Performance Shares and Performance Share Units" below). No tax benefit for share-based compensation was realized during 2015, 2014 and 2013 as a result of a valuation allowance against deferred tax assets. In accordance with ASC 718, any tax benefits resulting from tax deductions in excess of the compensation expense recognized is classified as a component of financing cash flows.

Stock Options

Generally, non-qualified stock option awards typically have a term of ten years and are granted at the fair market value of the company’s common shares on the date of grant. The company expects the compensation expense to be recognized over a weighted-average period of approximately 2 years.

The following table summarizes information about stock option activity for the three years ended 2015, 2014 and 2013:

	2015			Weighted Average Exercise Price		2014			Weighted Average Exercise Price		2013			Weighted Average Exercise Price
Options outstanding at January 1	3,600,132			$	22.74	4,533,782			$	23.86	4,664,634			$	26.21
Granted	—			0.00		8,977			16.71		756,700			14.47
Exercised	(172,218		)	13.95		(33,810		)	14.16		(30,166		)	16.94
Canceled	(485,131		)	34.98		(908,817		)	28.57		(857,386		)	28.63
Options outstanding at December 31	2,942,783			$	21.22	3,600,132			$	22.74	4,533,782			$	23.86
Options exercise price range at December 31	$ 13.37 to					$ 13.37 to					$ 13.35 to
	$	33.36				$	47.80				$	47.80
Options exercisable at December 31	2,656,983					2,954,082					2,985,175
Shares available for grant at December 31*	2,659,562					3,654,426					4,460,337

 ________________________

 * Shares available for grant as of December 31, 2015 reduced by net restricted stock / unit and performance share / unit award activity of 1,110,740 shares and 681,058 shares, respectively.

The following table summarizes information about stock options outstanding at December 31, 2015:

	Options Outstanding				Options Exercisable
Exercise Prices	Number Outstanding At 12/31/15	Weighted Average Remaining Contractual Life Years	Weighted Average Exercise Price		Number Exercisable At 12/31/15	Weighted Average Exercise Price
$ 13.37 – $20.00	778,159	6.7	$	14.12	493,671	$	14.11
$ 20.01 – $25.00	1,353,578	3.3	22.59		1,353,578	22.59
$ 25.01 – $30.00	783,738	3.7	25.55		783,738	25.55
$ 30.01 – $33.36	27,308	1.0	31.74		25,996	31.73
Total	2,942,783	4.3	$	21.22	2,656,983	$	21.98

Pursuant to the Plans, the Committee has established that grants may not be exercised within one year from the date granted and options must be exercised within ten years from the date granted. Accordingly, for the stock options issued in 2014 and 2013, 25% of such options vested in the year following issuance. The stock options awarded during such years provided a four-year vesting period whereby options vest equally in each year. Options granted with graded vesting are accounted for as single options. The 2015, 2014 and 2013 expense has been adjusted for estimated forfeitures of awards that will not vest because service or employment requirements have not been met.

FS-27

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for awards granted in 2014 and 2013 as no options were granted in 2015:

	2014		2013
Expected dividend yield	0.3	%	0.4	%
Expected stock price volatility	36.8	%	38.2	%
Risk-free interest rate	1.76	%	0.82	%
Expected life in years	6.1		6.1
Forfeiture percentage	13.0	%	9.2	%

Expected dividend yields are based on historical dividends as the company has no current intention of changing its dividend policy. Expected stock price volatility percentages are calculated at each date of grant based on historical stock prices for a period of time commensurate with the expected life of the option. The assumed expected lives and forfeiture percentages are based on the company's historical analysis of option history.

The weighted-average fair value of options granted during 2014 and 2013 was $6.23 and $5.33, respectively. The weighted-average remaining contractual life of options outstanding at December 31, 2015, 2014 and 2013 was 4.3, 5.0 and 5.8 years, respectively. The weighted-average contractual life of options exercisable at December 31, 2015 was 4.0 years. The total intrinsic value of stock awards exercised in 2015, 2014 and 2013 was $1,107,000, $101,000 and $158,000, respectively. As of December 31, 2015, the intrinsic value of all options outstanding and of all options exercisable was $2,562,000 and $1,636,000, respectively.

The exercise of stock awards in 2015, 2014 and 2013 resulted in cash received by the company totaling $2,413,000, $480,000 and $512,000 for each period, respectively with no tax benefits for any period. The total fair value of awards vested during 2015, 2014 and 2013 was $1,867,000, $3,436,000 and $3,778,000, respectively.

Restricted Stock and Restricted Stock Units

The following table summarizes information about restricted shares and restricted share units (for non-U.S. recipients):

	2015		Weighted Average Fair Value		2014		Weighted Average Fair Value		2013		Weighted Average Fair Value
Stock / Units unvested at January 1	312,423		$	17.91	264,878		$	16.69	260,548		$	19.15
Granted	480,839		19.09		218,276		19.36		114,700		14.49
Vested	(56,976	)	16.47		(93,140	)	17.62		(97,445	)	20.33
Canceled	(94,781	)	18.11		(77,591	)	17.58		(12,925	)	19.23
Stock / Units unvested at December 31	641,505		$	18.89	312,423		$	17.91	264,878		$	16.69

The restricted stock awards vest ratably over the three years after the award date, except for those awards granted in 2014, which vest after a three-year period. Unearned restricted stock compensation, determined as the market value of the shares at the date of grant, is being amortized on a straight-line basis over the vesting period.

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INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Performance Shares and Performance Share Units

The following table summarizes information about performance shares and performance share units (for non-U.S. recipients):

	2015		Weighted Average Fair Value		2014		Weighted Average Fair Value
Shares / Units unvested at January 1	121,644		$	20.05	—		$	—
Granted	114,257		18.95		152,800		20.05
Vested	—		—		—		—
Canceled	(37,500	)	19.62		(31,156	)	20.05
Shares / Units unvested at December 31	198,401		$	19.50	121,644		$	20.05

During 2015 and 2014, the performance shares and performance share units (for non-U.S. recipients) were granted as performance awards with a 3 year performance period with payouts based on achievement of certain performance goals. The awards are classified as equity awards as they will be settled in common shares upon vesting. The number of shares earned will be determined at the end of the performance period based on achievement of performance criteria for January 1, 2016 through December 31, 2016 established by the Compensation Committee at the time of grant. Recipients will be entitled to receive a number of common shares equal to the number of performance shares that vest based upon the levels of achievement which may range between 0% and 150% of the target number of shares with the target being 100% of the initial grant.

The fair value of the performance awards is based on the stock price on the date of grant discounted for the estimated value of dividends foregone as the awards are not eligible for dividends except to the extent vested. The company assesses the probability that the performance targets will be met with expense recognized whenever it is probable that at least the minimum performance criteria will be achieved. Depending upon the company's assessment of the probability of achievement of the goals, the company may not recognize any expense associated with performance awards in a given period, may reverse prior expense recorded or record additional expense to make up for expense not recorded in a prior period. Performance award compensation expense is generally expected to be recognized over 3 years. However, for the years ended December 31, 2015 and December 31, 2014, the company concluded that it was not probable that the performance goals, as defined in the agreements, would be achieved and thus no performance award expense was recognized in 2015 or 2014.

Rights Agreement

Effective July 8, 2005, the company adopted a Rights Agreement to replace the company’s previous shareholder rights plan, which expired on July 7, 2005. In order to implement the new Rights Agreement, the Board of Directors declared a dividend of one Right for each outstanding share of the company’s Common Shares and Class B Common Shares to shareholders of record at the close of business on July 19, 2005. Each Right entitled the registered holder to purchase from the company one one-thousandth of a Series A Participating Serial Preferred Share, without par value, at a Purchase Price of $180.00 in cash, subject to adjustment. The Rights were not exercisable until after a person (an “Acquiring ”) has acquired, or obtained the right to acquire, or commences a tender offer to acquire, shares representing 30% or more of the company’s outstanding voting power, subject to deferral by the Board of Directors. If the Rights became exercisable, under certain circumstances, the Rights may have been exercisable to purchase Common Shares of the company, or common shares of an acquiring company, at a price equal to the exercise price of the Right divided by 50% of the then current market price per Common Share or acquiring company common share, as the case may be. The Rights expired on July 18, 2015 and were not redeemed or exchanged by the company. The company could have redeemed and terminated the Rights in whole, but not in part, at a price of $0.001 per Right at any time prior to 10 days following a public announcement that an Acquiring Party has acquired beneficial ownership of shares representing 30% or more of the company’s outstanding voting power, and in certain other circumstances described in the Rights Agreement. The company's Board of Directors did not renew the Rights Agreement which expired on July 18, 2015.

FS-29

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Accumulated Other Comprehensive Income (Loss) by Component

Changes in accumulated other comprehensive income ("OCI") during the year ended December 31, 2015 were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
December 31, 2014	$	86,236		$	(6,465	)	$	(7,601	)	$	(551	)	$	71,619
OCI before reclassifications	(91,980		)	10,576			(2,292		)	3,545			(80,151		)
Amount reclassified from accumulated OCI	—			—			136			(991		)	(855		)
Net current-period OCI	(91,980		)	10,576			(2,156		)	2,554			(81,006		)
December 31, 2015	$	(5,744	)	$	4,111		$	(9,757	)	$	2,003		$	(9,387	)

Changes in OCI during the year ended December 31, 2014 were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
December 31, 2013	$	143,845		$	(12,566	)	$	(5,414	)	$	(709	)	$	125,156
OCI before reclassifications	(57,609		)	6,101			(3,223		)	562			(54,169		)
Amount reclassified from accumulated OCI	—			—			1,036			(404		)	632
Net current-period OCI	(57,609		)	6,101			(2,187		)	158			(53,537		)
December 31, 2014	$	86,236		$	(6,465	)	$	(7,601	)	$	(551	)	$	71,619

OCI activity related to Long-Term Notes represents currency translation on notes that are long-term in nature and not intended to be settled.

Reclassifications out of accumulated OCI for the year ended December 31, 2015 and December 31, 2014 were as follows (in thousands):

	Amount reclassified from OCI						Affected Statement of Comprehensive (Income) Loss line
	2015			2014
Defined Benefit Plans
Service and interest costs	$	133		$	1,045		Selling, General and Administrative
Tax	3			(9		)	Income Taxes
Total after tax	$	136		$	1,036
Derivatives
Foreign currency forward contracts hedging sales	$	2,778		$	657		Net Sales
Foreign currency forward contracts hedging purchases	(3,890		)	(995		)	Cost of Products Sold
Interest rate swaps	—			12			Interest Expense
Total before tax	(1,112		)	(326		)
Tax	121			(78		)	Income Taxes
Total after tax	$	(991	)	$	(404	)

FS-30

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Capital Stock

Capital stock activity for 2015, 2014 and 2013 consisted of the following (in thousands of shares):

	Common Stock Shares	Class B Shares		Treasury Shares
January 1, 2013 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	)
Conversion of Class B to Common	351	(351	)	—
Exercise of stock options	172	—		—
Restricted stock awards	282	—		(7	)
December 31, 2015 Balance	35,024	734		(3,194	)

Stock awards for 94,781, 77,591 and 12,925 shares were canceled in 2015, 2014 and 2013, respectively.  In 2015, 2014 and 2013, 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.

The company's restructuring commenced in the second quarter of 2011 with the company's decision to close the Hong, Denmark assembly facility as part of the company's ongoing globalization initiative to reduce complexity in the company's supply chain which is intended to reduce expenses to help offset pricing pressures. In the third quarter of 2011, the company continued to execute on the closure of the Hong, Denmark assembly facility and initiated the closure of a smaller facility in the U.S. Charges for the quarter ended December 31, 2011 were primarily incurred at the company's corporate headquarters for severance, with additional costs incurred as a result of the closure of the Hong, Denmark facility. The facility closures were completed in 2012 in addition to the elimination of various positions principally in the North America/Home Medical Equipment (HME) and Asia/Pacific segments.

Charges for the year ended December 31, 2011 totaled $10,534,000 including charges for severance ($8,352,000), contract exit costs primarily related to the closure of the Hong, Denmark assembly facility ($1,788,000) and inventory write-offs ($277,000), recorded in cost of products sold, and miscellaneous costs ($117,000). The majority of the 2011 North America/HME charges were incurred for severance, primarily at the corporate headquarters as the result of the elimination of various positions principally in sales and administration in Elyria, Ohio. These eliminations were permanent reductions in workforce which primarily resulted in reduced selling, general and administrative expenses. In Europe, the charges were the result of the closure of the company's Hong, Denmark facility. The assembly activities were transferred to other company facilities or outsourced to third parties. This closure enabled the company to reduce fixed operating costs related to the facility and reduce headcount with the transfer of a portion of the production to other company facilities. The 2011 charges have now been paid out and were funded with operating cash flows.

FS-31

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Charges for the year ended December 31, 2012 totaled $11,395,000 including charges for severance ($6,775,000), lease termination costs ($1,725,000), building and asset write-downs, primarily related to the closure of the Hong, Denmark assembly facility, and other miscellaneous charges in Europe and Asia/Pacific ($2,404,000) and inventory write-offs ($491,000) in Asia/Pacific recorded in cost of products sold. Severance charges were primarily incurred in the North America/HME segment ($4,242,000), Asia/Pacific segment ($1,681,000) and Europe segment ($817,000). In addition, a portion of the North America/HME segment severance was related to positions eliminated, principally in sales and marketing as well as manufacturing, at the company's Taylor Street facility as a result of the FDA consent decree. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. In Europe, positions were eliminated as a result of finalizing the exit from the manufacturing facility in Denmark and an elimination of a senior management position in Switzerland. In Asia/Pacific, at the end of October 2012, the company's management approved a plan to restructure the company's operations in this segment. In Australia, the company consolidated offices / warehouses, decreased staffing and exited various activities while returning to a focus on distribution. At the company's subsidiary, which produces microprocessor controllers, the company decided to cease the contract manufacturing business for companies outside of the healthcare industry. Payments for the year ended December 31, 2012 were $9,381,000 and were funded with operating cash flows. The 2012 charges have been paid out.

Charges for the year ended December 31, 2013 totaled $9,336,000 including charges for severance ($8,282,000), lease termination costs ($698,000) and other miscellaneous charges principally in North America/HME ($356,000). Severance charges were primarily incurred in the North America/HME segment ($5,405,000), Europe segment ($1,640,000) and Asia/Pacific segment ($970,000). The charges were incurred as a result of the elimination of various positions as part of the company's globalization initiatives. North America/HME segment severance was principally related to positions eliminated due to lost sales volumes resulting from the impact of the FDA consent decree. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. In Europe, severance incurred for elimination of certain sales and supply chain positions. In Asia/Pacific, severance principally incurred at the company's subsidiary, which produces microprocessor controllers, as a result of the company's decision in 2012 to cease the contract manufacturing business for companies outside of the healthcare industry. The lease termination costs were principally related to Australia as a result of the restructuring announced in 2012. Payments for the year ended December 31, 2013 were $11,844,000 and were funded with operating cash flows and cash on hand. The 2013 charges have been paid out.

Charges for the year ended December 31, 2014 totaled $11,112,000 including charges for severance ($9,841,000), other charges in IPG and Europe ($1,286,000) principally related to building write-downs and lease termination cost reversals ($15,000). Severance charges were incurred in the North America/HME segment ($4,404,000), Other ($2,978,000), IPG segment ($1,163,000), Asia/Pacific segment ($769,000) and Europe segment ($527,000). The North America/HME segment severance was principally related to additional positions eliminated due to lost sales volumes resulting from the continued impact of the FDA consent decree. The Other severance related to the elimination of two senior corporate executive positions. IPG segment severance related principally to the closure of the London, Canada facility. Europe and Asia/Pacific severance related to the elimination of certain positions as a result of general restructuring efforts. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. Payments for the year ended December 31, 2014 were $11,131,000 and were funded with operating cash flows and cash on hand. The majority of the 2014 charges have been paid out other than certain executive charge payments which will be paid out over next few years.

Charges for the year ended December 31, 2015 totaled $1,971,000 including charges for severance ($1,678,000) and charges primarily in the North America/HME segment ($293,000) principally related to a building lease termination. Severance charges were incurred in the North America/HME segment ($1,069,000), Europe segment ($510,000), IPG segment ($73,000) and Asia/Pacific segment ($26,000) related to the elimination of certain positions as a result of general restructuring efforts. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. Payments for the year ended December 31, 2015 were $3,723,000 and were funded with operating cash flows and cash on hand. The majority of the 2015 charges are expected to be paid out within the next 12 months. To date, the company's liquidity has not been materially impacted.

There have been no material changes in accrued balances related to the charges, either as a result of revisions in the plans or changes in estimates. In addition, the savings anticipated as a result of the company's restructuring plans have been or are expected to be achieved, primarily resulting in reduced salary and benefit costs principally impacting Selling, General and Administrative expenses, and to a lesser extent, Costs of Products Sold. However, these savings have been more than offset by continued margin decline, principally as a result of product mix, and higher regulatory and compliance costs related to quality system improvements as well as reduced net sales volumes.

FS-32

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

A progression by reporting segment of the accruals recorded as a result of the restructuring is as follows (in thousands):

	Severance			Inventory			Lease Terminations			Other			Total
December 31, 2010 Balance	$	—		$	—		$	—		$	—		$	—
Charges
North America/HME	4,755			—			—			4			4,759
IPG	123			—			—			—			123
Europe	3,288			277			1,788			113			5,466
Asia/Pacific	186			—			—			—			186
Total	8,352			277			1,788			117			10,534
Payments
North America/HME	(1,663		)	—			—			(4		)	(1,667		)
IPG	(52		)	—			—			—			(52		)
Europe	(1,546		)	(277		)	(1,714		)	(113		)	(3,650		)
Asia/Pacific	(186		)	—			—			—			(186		)
Total	(3,447		)	(277		)	(1,714		)	(117		)	(5,555		)
December 31, 2011 Balance
North America/HME	3,092			—			—			—			3,092
IPG	71			—			—			—			71
Europe	1,742			—			74			—			1,816
Asia/Pacific	—			—			—			—			—
Total	4,905			—			74			—			4,979
Charges
North America/HME	4,242			—			5			—			4,247
IPG	35			—			—			—			35
Europe	817			—			53			1,223			2,093
Asia/Pacific	1,681			491			1,667			1,181			5,020
Total	6,775			491			1,725			2,404			11,395
Payments
North America/HME	(3,587		)	—			(5		)	—			(3,592		)
IPG	(106		)	—			—			—			(106		)
Europe	(1,964		)	—			(127		)	(1,223		)	(3,314		)
Asia/Pacific	(812		)	(340		)	(42		)	(1,175		)	(2,369		)
Total	(6,469		)	(340		)	(174		)	(2,398		)	(9,381		)
December 31, 2012 Balance
North America/HME	3,747			—			—			—			3,747
Europe	595			—			—			—			595
Asia/Pacific	869			151			1,625			6			2,651
Total	5,211			151			1,625			6			6,993
Charges
North America/HME	5,405			—			164			353			5,922
IPG	267			—			—			—			267
Europe	1,640			—			—			—			1,640
Asia/Pacific	970			—			534			3			1,507
Total	8,282			—			698			356			9,336
Payments
North America/HME	(6,347		)	—			(164		)	(353		)	(6,864		)
IPG	(175		)	—			—			—			(175		)
Europe	(1,146		)	—			—			—			(1,146		)
Asia/Pacific	(1,839		)	(151		)	(1,660		)	(9		)	(3,659		)
Total	$	(9,507	)	$	(151	)	$	(1,824	)	$	(362	)	$	(11,844	)

FS-33

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

	Severance			Inventory		Lease Terminations			Other			Total
December 31, 2013 Balance
North America/HME	$	2,805		$	—	$	—		$	—		$	2,805
IPG	92			—		—			—			92
Europe	1,089			—		—			—			1,089
Asia/Pacific	—			—		499			—			499
Total	3,986			—		499			—			4,485
Charges
North America/HME	4,404			—		—			—			4,404
IPG	1,163			—		—			761			1,924
Europe	527			—		—			525			1,052
Asia/Pacific	769			—		(15		)	—			754
Other	2,978			—		—			—			2,978
Total	9,841			—		(15		)	1,286			11,112
Payments
North America/HME	(6,547		)	—		—			—			(6,547		)
IPG	(1,107		)	—		—			(761		)	(1,868		)
Europe	(1,195		)	—		—			(525		)	(1,720		)
Asia/Pacific	(769		)	—		(227		)	—			(996		)
Total	(9,618		)	—		(227		)	(1,286		)	(11,131		)
December 31, 2014 Balance
North America/HME	662			—		—			—			662
IPG	148			—		—			—			148
Europe	421			—		—			—			421
Asia/Pacific	—			—		257			—			257
Other	2,978			—		—			—			2,978
Total	4,209			—		257			—			4,466
Charges
North America/HME	1,069			—		292			—			1,361
IPG	73			—		—			—			73
Europe	510			—		—			—			510
Asia/Pacific	26			—		1			—			27
Total	1,678			—		293			—			1,971
Payments
North America/HME	(1,069		)	—		(55		)	—			(1,124		)
IPG	(221		)	—		—			—			(221		)
Europe	(619		)	—		—			—			(619		)
Asia/Pacific	(26		)	—		(258		)	—			(284		)
Other	(1,475		)	—		—			—			(1,475		)
Total	(3,410		)	—		(313		)	—			(3,723		)
December 31, 2015 Balance
North America/HME	662			—		237			—			899
Europe	312			—		—			—			312
Other	1,503			—		—			—			1,503
Total	$	2,477		$	—	$	237		$	—		$	2,714

FS-34

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Income Taxes

Earnings (loss) from continuing operations before income taxes consist of the following (in thousands):

	2015			2014			2013
Domestic	$	(54,812	)	$	(104,776	)	$	(73,529	)
Foreign	43,072			41,566			30,070
	$	(11,740	)	$	(63,210	)	$	(43,459	)

The company has provided for income taxes (benefits) from continuing operations as follows (in thousands):

	2015			2014			2013
Current:
Federal	$	(167	)	$	(7,105	)	$	(2,485	)
State	(150		)	(63		)	300
Foreign	11,439			15,105			11,043
	11,122			7,937			8,858
Deferred:
Federal	3,222			100			3,011
State	318			—			—
Foreign	48			(2,487		)	(994		)
	3,588			(2,387		)	2,017
Income Taxes	$	14,710		$	5,550		$	10,875

Included in the 2015, 2014 and 2013 Federal current tax benefit is a benefit of $140,000, $7,175,000 and $3,455,000, respectively, related to an intra-period allocation to continuing operations. A charge in an equal amount is in discontinued operations. A reconciliation to the effective income tax rate from the federal statutory rate is as follows:

	2015		2014		2013
Statutory federal income tax rate	(35.0	)%	(35.0	)%	(35.0	)%
State and local income taxes, net of federal income tax benefit	0.9		(0.1	)	0.5
Tax credits	(61.8	)	(5.1	)	(22.8	)
Foreign taxes at less than the federal statutory rate (including tax holidays)	(46.1	)	(10.7	)	(10.6	)
Federal and foreign valuation allowance	168.0		52.5		35.8
Withholding taxes	3.0		0.6		0.7
Compensation	0.6		0.1		0.5
Dividends	100.1		12.3		54.6
Life insurance	(2.7	)	4.1		(1.5	)
Foreign branch activity	(8.1	)	(1.8	)	(1.8	)
Uncertain tax positions	6.7		1.2		1.3
Other, net	(0.3	)	(9.3	)	3.3
	125.3	%	8.8	%	25.0	%

Effective October 1, 2015, the company adopted ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", on a prospective basis, and thus the company's deferred tax assets and liabilities have been classified as long-term in its Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted.

At December 31, 2015, total deferred tax assets were $154,401,000, total deferred tax liabilities were $33,636,000 and the tax valuation allowance total was $151,972,000 for a net deferred income tax liability of $31,207,000 compared to total deferred tax assets of $137,511,000, total deferred tax liabilities of $33,778,000 and a tax valuation allowance total of $133,912,000 for a

FS-35

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

net deferred income tax liability of $30,179,000 at December 31, 2014. Significant components of deferred income tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands):

	2015			2014
Current deferred income tax assets (liabilities), net:
Bad debt	$	—		$	5,364
Warranty	—			7,092
State and local taxes	—			2,240
Other accrued expenses and reserves	—			1,852
Inventory	—			3,096
Compensation and benefits	—			2,209
Product liability	—			594
Valuation allowance	—			(22,084		)
Other, net	—			(732		)
	$	—		$	(369	)
Long-term deferred income tax assets (liabilities), net:
Bad Debt	$	3,670		$	—
Warranty	5,357			—
Other accrued expenses and reserves	4,355			—
Inventory	2,395			—
Goodwill and intangibles	(25,008		)	(21,915		)
Convertible debt	(421		)	(700		)
Fixed assets	(8,207		)	(10,431		)
Compensation and benefits	7,136			14,630
Loss and credit carryforwards	102,194			65,123
Product liability	4,107			4,919
State and local taxes	19,932			17,745
Valuation allowance	(151,972		)	(111,828		)
Other, net	5,255			12,647
	$	(31,207	)	$	(29,810	)
Net Deferred Income Taxes	$	(31,207	)	$	(30,179	)

The company recorded a valuation allowance for its U.S. and certain foreign country net deferred tax assets where it is in a three year cumulative loss. The company made net payments for income taxes of $7,966,000, $6,384,000, and $6,349,000 during the years ended December 31, 2015, 2014 and 2013, respectively.

At December 31, 2015, the company had foreign tax loss carryforwards of approximately $61,330,000 which are non-expiring, of which $61,330,000 are offset by valuation allowances. At December 31, 2015, the company also had $563,000,000 of domestic state and local tax loss carryforwards, of which $206,000,000 expire between 2016 and 2019, $191,000,000 expire between 2020 and 2029 and $166,000,000 expire after 2029. The company has a federal domestic net operating loss carryforward of $131,130,000 which expires in 2034 and 2035 and federal tax credit carryforwards of $38,520,000 of which $4,169,000 expire between 2016 and 2018 and $32,522,000 expire between 2019 and 2025, $1,582,000 expire between 2031 and 2035, and $247,000 are indefinite.

As of December 31, 2015 and 2014, the company had a liability for uncertain tax positions, excluding interest and penalties of $8,366,000 and $10,030,000, respectively. The company expects payments over the next twelve months of $9,100,000 pursuant to a payment plan entered in a foreign country for an item being contested in the courts and an anticipated settlement of an audit. The total liabilities associated with unrecognized tax benefits that, if recognized, would impact the effective tax rates were $8,366,000 and $10,030,000 at December 31, 2015 and 2014, respectively.

FS-36

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):

	2015			2014
Balance at beginning of year	$	11,019		$	10,833
Additions to:
Positions taken during the current year	227			348
Positions taken during a prior year	270			418
Deductions due to:
Exchange rate impact	(1,197		)	(362		)
Positions taken during a prior year	(527		)	—
Lapse of statute of limitations	(239		)	(218		)
Balance at end of year	$	9,553		$	11,019

The company recognizes interest and penalties associated with uncertain tax positions in income tax expense. During 2015, 2014 and 2013 the (expense) benefit for interest and penalties was $(315,000), $(500,000) and $(676,000), respectively. The company had approximately $5,440,000 and $5,130,000 of accrued interest and penalties as of December 31, 2015 and 2014, respectively.

The company and its subsidiaries file income tax returns in the U.S. and certain foreign jurisdictions. The company is subject to U.S. federal income tax examinations for calendar years 2012 to 2015, and is subject to various U.S. state income tax examinations for 2011 to 2015. With regards to foreign income tax jurisdictions, the company is generally subject to examinations for the periods 2009 to 2015.

Net Earnings (Loss) Per Common Share

The following table sets forth the computation of basic and diluted net earnings (loss) per common share.

	2015			2014			2013
	(In thousands except per share data)
Basic
Average common shares outstanding	32,171			32,009			31,915
Net loss from continuing operations	$	(26,450	)	$	(68,760	)	$	(54,334	)
Net earnings from discontinued operations	$	260		$	12,690		$	87,385
Net earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Net loss per common share from continuing operations	$	(0.82	)	$	(2.15	)	$	(1.70	)
Net earnings per common share from discontinued operations	$	0.01		$	0.40		$	2.74
Net earnings (loss) per common share	$	(0.81	)	$	(1.75	)	$	1.04
Diluted
Average common shares outstanding	32,171			32,009			31,915
Stock options and awards	512			188			128
Average common shares assuming dilution	32,683			32,197			32,043
Net loss from continuing operations	$	(26,450	)	$	(68,760	)	$	(54,334	)
Net earnings from discontinued operations	$	260		$	12,690		$	87,385
Net earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Net loss per common share from continuing operations *	$	(0.82	)	$	(2.15	)	$	(1.70	)
Net earnings per common share from discontinued operations	$	0.01		$	0.39		$	2.73
Net earnings (loss) per common share *	$	(0.81	)	$	(1.75	)	$	1.03

* Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

FS-37

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

At December 31, 2015, 2014 and 2013, shares associated with stock options of 1,479,912, 2,857,590 and 4,307,458, respectively, were excluded from the average common shares assuming dilution, as they were anti-dilutive. At December 31, 2015, the majority of the anti-dilutive shares were granted at an exercise price of $18.51, which was lower than the average fair market value price of $25.24 for 2015. For the 2015, 2014 and 2013 net loss per share from continuing operations calculation, all of the shares associated with stock options were anti-dilutive because of the company's loss. In 2014, the majority of the anti-dilutive shares were granted at an exercise price of $41.87, which was higher than the average fair market value price of $16.95 for 2014. In 2013, the majority of the anti-dilutive shares were granted at an exercise price of $41.87, which was higher than the average fair market value price of $16.48 for 2013. Shares necessary to settle a conversion spread on the convertible notes issued in 2007 were not included in the common shares assuming dilution as the average market price of the company stock in 2015, 2014 and 2013 did not exceed the conversion price.

Concentration of Credit Risk

The company manufactures and distributes durable medical equipment and supplies to the home health care, retail and extended care markets. The company performs credit evaluations of its customers’ financial condition. The company utilizes De Lage Landen, Inc. (“DLL”), a third party financing company, to provide the majority of future lease financing to Invacare’s North America customers. The DLL agreement provides for direct leasing between DLL and the Invacare customer. The company retains a recourse obligation of $6,089,000 at December 31, 2015 to DLL for events of default under the contracts, which total $39,510,000 at December 31, 2015. Guarantees, ASC 460, requires the company to record a guarantee liability as it relates to the limited recourse obligation. As such, the company has recorded a liability of $109,000 for this guarantee obligation within accrued expenses. The company's recourse is re-evaluated by DLL biannually, considers activity between the biannual dates and excludes any receivables purchased by the company from DLL. The company monitors the collections status of these contracts and has provided amounts for estimated losses in its allowances for doubtful accounts in accordance with Receivables, ASC 310-10-05-4. Credit losses are provided for in the financial statements.

Substantially all of the company’s receivables are due from health care, medical equipment providers and long term care facilities located throughout the United States, Australia, Canada, New Zealand and Europe. A significant portion of products sold to dealers, both foreign and domestic, is ultimately funded through government reimbursement programs such as Medicare and Medicaid. The company has also seen a significant shift in reimbursement to customers from managed care entities. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability. In addition, reimbursement guidelines in the home health care industry have a substantial impact on the nature and type of equipment an end user can obtain as well as the timing of reimbursement and, thus, affect the product mix, pricing and payment patterns of the company’s customers.

The company’s top 10 customers accounted for approximately 16.4% of 2015 net sales. The loss of business of one or more of these customers may have a significant impact on the company, although no single customer accounted for more than 3.3% of the company’s 2015 net sales. Providers who are part of a buying group generally make individual purchasing decisions and are invoiced directly by the company.

Derivatives

ASC 815 requires companies to recognize all derivative instruments in the consolidated balance sheet as either assets or liabilities at fair value. The accounting for changes in fair value of a derivative is dependent upon whether or not the derivative has been designated and qualifies for hedge accounting treatment and the type of hedging relationship. For derivatives designated and qualifying as hedging instruments, the company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

Cash Flow Hedging Strategy

The company uses derivative instruments in an attempt to manage its exposure to transactional foreign currency exchange risk and interest rate risk. Foreign forward exchange contracts are used to manage the price risk associated with forecasted sales denominated in foreign currencies and the price risk associated with forecasted purchases of inventory over the next twelve months. Interest rate swaps are, at times, utilized to manage interest rate risk associated with the company’s fixed and floating-rate borrowings.

FS-38

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

The company recognizes its derivative instruments as assets or liabilities in the consolidated balance sheet measured at fair value. A majority of the company’s derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the fair value of the hedged item, if any, is recognized in current earnings during the period of change.

During a portion of 2014 and all of 2013, the company was a party to interest rate swap agreements that qualified as cash flow hedges and effectively converted floating-rate debt to fixed-rate debt, so the company could avoid the risk of changes in market interest rates. The gains or losses on interest rate swaps are reflected in interest expense on the consolidated statement of comprehensive income (loss).

To protect against increases/decreases in forecasted foreign currency cash flows resulting from inventory purchases/sales over the next year, the company utilizes foreign currency forward contracts to hedge portions of its forecasted purchases/sales denominated in foreign currencies. The gains and losses are included in cost of products sold and selling, general and administrative expenses on the consolidated statement of comprehensive income (loss). If it is later determined that a hedged forecasted transaction is unlikely to occur, any prospective gains or losses on the forward contracts would be recognized in earnings. The company does not expect any material amount of hedge ineffectiveness related to forward contract cash flow hedges during the next twelve months.

The company has historically not recognized any material amount of ineffectiveness related to forward contract cash flow hedges because the company generally limits its hedges to between 50% and 90% of total forecasted transactions for a given entity’s exposure to currency rate changes and the transactions hedged are recurring in nature. Furthermore, the majority of the hedged transactions are related to intercompany sales and purchases for which settlement occurs on a specific day each month. Forward contracts with a total notional amount in USD of $136,818,000 and $157,121,000 matured during the twelve months ended December 31, 2015 and 2014, respectively.

FS-39

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Foreign exchange forward contracts qualifying and designated for hedge accounting treatment were as follows (in thousands USD):

	December 31, 2015					December 31, 2014
	Notional Amount		Unrealized Net Gain (Loss)			Notional Amount		Unrealized Net Gain (Loss)
USD / AUD	$	2,910	$	(83	)	$	1,250	$	65
USD / CAD	3,893		181			3,570		(63		)
USD / CHF	—		—			111		—
USD / CNY	16,786		(282		)	—		—
USD / EUR	72,758		2,681			25,524		—
USD / GBP	3,862		22			1,199		3
USD / NZD	4,893		37			7,018		(55		)
USD / SEK	5,128		39			594		1
USD / MXP	8,494		(284		)	10,297		(657		)
EUR / AUD	669		(10		)	452		5
EUR / CAD	1,283		(17		)	580		(1		)
EUR / CHF	1,944		(17		)	505		(2		)
EUR / DKK	—		—			643		(3		)
EUR / GBP	36,567		(424		)	11,906		23
EUR / NOK	3,375		(55		)	1,490		43
EUR / SEK	2,464		(42		)	2,917		(9		)
EUR / NZD	3,609		476			7,074		60
GBP / AUD	830		(46		)	656		22
GBP / CHF	463		(7		)	331		(1		)
GBP / SEK	2,067		(1		)	1,035		(2		)
AUD / CAD	—		—			1,538		30
AUD / CHF	—		—			93		1
AUD / NZD	352		8			537		19
AUD / SEK	—		—			61		(1		)
CAD / SEK	—		—			182		(1		)
CHF / DKK	—		—			269		(2		)
DKK / SEK	37,293		46			2,497		(44		)
NOK / CHF	—		—			66		2
NOK / SEK	3,524		(39		)	1,547		19
	$	213,164	$	2,183		$	83,942	$	(548	)

FS-40

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Derivatives Not Qualifying or Designated for Hedge Accounting Treatment

The company utilizes foreign currency forward contracts that are not designated as hedges in accordance with ASC 815. These contracts are entered into to eliminate the risk associated with the settlement of short-term intercompany trading receivables and payables between Invacare Corporation and its foreign subsidiaries. The currency forward contracts are entered into at the same time as the intercompany receivables or payables are created so that upon settlement, the gain/loss on the settlement is offset by the gain/loss on the foreign currency forward contract. No material net gain or loss was realized by the company in 2015 or 2014 related to these contracts and the associated short-term intercompany trading receivables and payables.

Foreign exchange forward contracts not qualifying or designated for hedge accounting treatment entered into in 2015 and 2014, respectively, and outstanding were as follows (in thousands USD):

	December 31, 2015					December 31, 2014
	Notional Amount		Gain (Loss)			Notional Amount		Gain (Loss)
AUD / USD	$	8,051	$	337		$	7,300	$	117
CAD / USD	5,762		(4		)	6,016		$	(6	)
CNY / USD	9,943		(441		)	3,200		(14		)
EUR / USD	2,118		53			53,365		(1,585		)
DKK / USD	7,927		125			—		—
GBP / USD	4,526		(106		)	5,592		18
NZD / USD	—		—			4,500		12
NOK / USD	1,838		(18		)	—		—
	$	40,165	$	(54	)	$	79,973	$	(1,458	)

The fair values of the company’s derivative instruments were as follows (in thousands):

	December 31, 2015				December 31, 2014
	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	$	3,626	$	1,443	$	373	$	921
Derivatives not designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	517		571		147		1,605
Total derivatives	$	4,143	$	2,014	$	520	$	2,526

The fair values of the company’s foreign currency forward assets and liabilities are included in Other Current Assets and Accrued Expenses, respectively in the Consolidated Balance Sheets.

FS-41

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

The effect of derivative instruments on the Statement of Operations and Other Comprehensive Income (OCI) was as follows, net of tax (in thousands):

Derivatives in ASC 815 cash flow hedge relationships	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Amount of Loss Recognized in Income on Derivatives  (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Year ended December 31, 2015
Foreign currency forward exchange contracts	$	3,545	$	991		$	(11	)
Year ended December 31, 2014
Foreign currency forward exchange contracts	$	562	$	416		$	(11	)
Interest rate swap contracts	—		(12		)	—
	$	562	$	404		$	(11	)
Derivatives not designated as hedging instruments under ASC 815						Amount of Gain (Loss) Recognized in Income on Derivatives
Year ended December 31, 2015
Foreign currency forward contracts						$	(54	)
Year ended December 31, 2014
Foreign currency forward contracts						$	(1,458	)

The gains or losses recognized as the result of the settlement of cash flow hedge foreign currency forward contracts are recognized in net sales for hedges of inventory sales or cost of product sold for hedges of inventory purchases. In 2015, net sales were decreased by $2,778,000 and cost of product sold was decreased by $3,890,000 for a net realized gain of $1,112,000. In 2014, net sales were decreased by $657,000 and cost of product sold was decreased by $995,000 for a net realized gain of $338,000 compared to a net loss of $271,000 in 2013.

The company recognized incremental expense of $12,000 and $337,000 in 2014 and 2013, respectively, related to interest rate swap agreements which are reflected in interest expense on the consolidated statement of comprehensive income (loss).

Losses of $54,000 and $1,458,000 in 2015 and 2014, respectively, and a gain$370,000 in 2013 were recognized in selling, general and administrative (SG&A) expenses on ineffective foreign currency forward contracts as well as foreign currency forward contracts not designated as hedging instruments that are entered into to offset gains/losses on intercompany trade receivables or payables. The gains/losses on the non-designated hedging instruments were substantially offset by gains/losses also recorded in SG&A expenses on intercompany trade receivables or payables.

The company has entered into foreign currency forward exchange contracts and, at times, interest rate swap contracts (the “agreements”) with various bank counterparties, each of which are subject to provisions which are similar to a master netting agreement. The agreements provide for a net settlement payment in a single currency upon a default by the company. Furthermore, the agreements provide the counterparty with a right of set off in the event of a default that would enable the counterparty to offset any net payment due by the counterparty to the company under the applicable agreement by any amount due by the company to the counterparty under any other agreement. For example, the terms of the agreement would permit a counterparty to a derivative contract that is also a lender under the company's Amended and Restated Credit Agreement to reduce any derivative settlement amounts owed to the company under the derivative contract by any amounts owed to the counterparty by the company under the Amended and Restated Credit Agreement. In addition, the agreements contain cross-default provisions that could trigger a default by the company under the agreement in the event of a default by the company under another agreement with the same counterparty. The company does not present any derivatives on a net basis in its financial statements and all derivative balances presented are subject to provisions that are similar to master netting agreements.

FS-42

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Fair Values of Financial Instruments

Pursuant to ASC 820, the inputs used to derive the fair value of assets and liabilities are analyzed and assigned a level I, II or III priority, with level I being the highest and level III being the lowest in the hierarchy. Level I inputs are quoted prices in active markets for identical assets or liabilities. Level II inputs are quoted prices for similar assets or liabilities in active markets: quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level III inputs are based on valuations derived from valuation techniques in which one or more significant inputs are unobservable.

The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands).

				Basis for Fair Value Measurements at Reporting Date
				Quoted Prices in Active Markets for Identical Assets / (Liabilities)	Significant Other Observable Inputs			Significant Other Unobservable Inputs
	Total			Level I	Level II			Level III
December 31, 2015:
Forward Exchange Contracts—net	$	2,129		—	$	2,129		—
December 31, 2014:
Forward Exchange Contracts—net	$	(2,006	)	—	$	(2,006	)	—

Forward Contracts: The company operates internationally, and as a result, is exposed to foreign currency fluctuations. Specifically, the exposure includes intercompany loans and third party sales or payments. In an attempt to reduce this exposure, foreign currency forward contracts are utilized and accounted for as hedging instruments. The forward contracts are used to hedge the following currencies: AUD, CAD, CHF, CNY, DKK, EUR, GBP, MXP, NOK, NZD, SEK and USD. The company does not use derivative financial instruments for speculative purposes. Fair values for the company’s foreign exchange forward contracts are based on quoted market prices for contracts with similar maturities.

The gains and losses that result from the majority of the forward contracts are deferred and recognized when the offsetting gains and losses for the identified transactions are recognized. The company recognized a net gain of $1,112,000 in 2015, a net gain of $338,000 in 2014 and a net loss of $271,000 in 2013 related to ASC 815 designated derivatives. Gains or losses recognized as the result of the settlement of forward contracts are recognized in cost of products sold for hedges of inventory transactions, sales for hedges of forecasted sales or selling, general and administrative expenses for other hedged transactions. The company’s forward contracts are included in Other Current Assets or Accrued Expenses in the Consolidated Balance Sheets.

The carrying amounts and fair values of the company’s financial instruments at December 31, 2015 and 2014 are as follows (in thousands):

	2015						2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
Cash and cash equivalents	$	60,055		$	60,055		$	38,931		$	38,931
Other investments	160			160			249			249
Installment receivables, net of reserves	1,793			1,793			1,911			1,911
Long-term debt (including current maturities of long-term debt)	(47,120		)	(47,369		)	(20,331		)	(20,248		)
Forward contracts in other current assets	4,143			4,143			520			520
Forward contracts in accrued expenses	(2,014		)	(2,014		)	(2,526		)	(2,526		)

FS-43

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

The company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions:

Cash, cash equivalents: The carrying amount reported in the balance sheet for cash, cash equivalents equals its fair value.

Other investments: The company has made other investments in limited partnerships and non-marketable equity securities, which are accounted for using the cost method, adjusted for any estimated declines in value. These investments were acquired in private placements and there are no quoted market prices or stated rates of return. The company does not have the ability to easily sell these investments. The company completes an evaluation of the residual value related to these investments in the fourth quarter of each year. No impairment was recognized in 2015, 2014 or 2013.

Installment receivables: The carrying amount reported in the balance sheet for installment receivables approximates its fair value. The interest rates associated with these receivables have not varied significantly since inception. Management believes that after consideration of the credit risk, the net book value of the installment receivables approximates market value.

Long-term debt: Fair value for the company’s convertible debt is based on quoted market-based estimates as of the end of the year, while the revolving credit facility fair values are based upon the company’s estimate of the market for similar borrowing arrangements. These fair values are deemed to be categorized as Level 2 in the fair value hierarchy.

Intangibles and Goodwill: Under Intangibles—Goodwill and Other, ASC 350, goodwill and intangible assets deemed to have indefinite lives are subject to annual impairment tests. Furthermore, goodwill and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. To review goodwill for impairment in accordance with ASC 350, the company first estimates the fair value of each reporting unit and compares the calculated fair value to the carrying value of the each reporting unit. A reporting unit is defined as an operating segment or one level below. The company has determined that its reporting units are the same as its operating segments. The company completes its annual impairment tests in the fourth quarter of each year. To estimate the fair values of the reporting units, the company utilizes a discounted cash flow method model in which the company forecasts income statement and balance sheet amounts based on assumptions regarding future sales growth, profitability, inventory turns, days' sales outstanding, etc. to forecast future cash flows. The cash flows are discounted using a weighted average cost of capital discount rate where the cost of debt is based on quoted rates for 20-year debt of companies of similar credit risk and the cost of equity is based upon the 20-year treasury rate for the risk free rate, a market risk premium, the industry average beta and a small cap stock adjustment. The discount rates used have a significant impact upon the discounted cash flow methodology utilized in the company's annual impairment testing as higher discount rates decrease the fair value estimates. The assumptions used are based on a market participant view and yielded a discount rate of 9.41% in 2015 for the company's impairment analysis compared to 9.89% in 2014 and 10.00% in 2013.

The company also utilizes an Enterprise Value (EV) to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) Method to compute the fair value of its reporting units which considers potential acquirers and their EV to EBITDA multiples adjusted by an estimated premium. While more weight is given to the discounted cash flow method, the EV to EBITDA Method does provide corroborative evidence of the reasonableness of the discounted cash flow method results.

While there was no indication of impairment in 2015 related to goodwill for the Europe or IPG segments, a future potential impairment is possible for any of the company's segments should actual results differ materially from forecasted results used in the valuation analysis. Furthermore, the company's annual valuation of goodwill can differ materially if the market inputs used to determine the discount rate change significantly. For instance, higher interest rates or greater stock price volatility would increase the discount rate and thus increase the chance of impairment. In consideration of this potential, the company reviewed the results if the discount rate used were 100 basis points higher for the 2015 impairment analysis and determined that there still would not be any indicator of potential impairment for the segments with goodwill, which are Europe and IPG.

During 2014, the company recognized intangible write-down charges in the IPG segment of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement of $215,000 all recorded in the IPG segment as the actual and remaining cash flows associated with the intangibles were less than the cash flow originally used to value the intangibles, primarily driven by reduced net sales. The after-tax and pre-tax impairment amounts were the same for each of the above impairments.

In the fourth quarter of 2013, the company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives of $568,000, a trademark with a definite life of $123,000, a customer lists impairment of $442,000 and a developed technology of $223,000 all recorded in the IPG segment and a customer list intangible write-down charge of $167,000 recorded in the North America/HME segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the indefinite-lived trademark impairments in the IPG segment, which were $496,000 after-tax. The fair

FS-44

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

values of the trademarks and developed technology were calculated using a relief from royalty payment methodology which requires applying an estimated market royalty rate to forecasted net sales and discounting the resulting cash flows to determine fair value. The fair value of the customer lists were calculated using an excess earnings method, using a discounted cash flow model. Estimated cash flow returns to the customer relationship were reduced by the cash flows required to satisfy the return requirements of each of the assets employed with the residual cash flow then discounted to value the customer relationship. The write-down charges were the result of decisions to exit certain businesses as well as lower than anticipated sales.

The fair values of the company's intangible assets were calculated using inputs that are not observable in the market and included management’s own estimates regarding the assumptions that market participants would use and thus these inputs are deemed Level III inputs in regards to the fair value hierarchy.

Business Segments

The company operates in four primary business segments: North America/Home Medical Equipment (North America/HME), Institutional Products Group (IPG), Europe and Asia/Pacific.

The North America/HME segment sells each of the three primary product lines, which includes: lifestyle, mobility and seating and respiratory therapy products. IPG sells, and rented prior to the disposition of the rentals businesses, long-term care medical equipment, health care furnishings and accessory products. Europe and Asia/Pacific sell product lines similar to North America/HME and IPG.

The company evaluates performance and allocates resources based on profit or loss from operations before income taxes for each reportable segment. The accounting policies of each segment are the same as those described in the summary of significant accounting policies for the company’s consolidated financial statements. Intersegment sales and transfers are based on the costs to manufacture plus a reasonable profit element. Therefore, intercompany profit or loss on intersegment sales and transfers is not considered in evaluating segment performance except for Asia/Pacific due to its significant intercompany sales volume relative to the segment.

The information by segment is as follows (in thousands):

	2015		2014		2013
Revenues from external customers
North America/HME	$	474,196	$	507,867	$	589,240
Institutional Products Group	87,137		102,796		112,290
Europe	536,463		610,555		583,143
Asia/Pacific	44,542		48,945		49,832
Consolidated	$	1,142,338	$	1,270,163	$	1,334,505
Intersegment revenues
North America/HME	$	111,321	$	84,247	$	77,553
Institutional Products Group	997		6,711		5,304
Europe	9,958		8,938		8,272
Asia/Pacific	20,661		26,173		24,941
Consolidated	$	142,937	$	126,069	$	116,070
Depreciation and amortization
North America/HME	$	8,775	$	10,925	$	12,149
Institutional Products Group	1,980		7,656		8,310
Europe	7,183		11,111		12,123
Asia/Pacific	1,463		2,406		3,073
All Other (1)	29		173		275
Discontinued Operations	—		518		859
Consolidated	$	19,430	$	32,789	$	36,789

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	2015			2014			2013
Net interest expense (income)
North America/HME	$	2,080		$	348		$	(1,869	)
Institutional Products Group	1,028			2,244			3,656
Europe	(444		)	(209		)	(53		)
Asia/Pacific	82			149			960
Consolidated	$	2,746		$	2,532		$	2,694
Earnings (loss) before income taxes from continuing operations
North America/HME	$	(32,866	)	$	(63,601	)	$	(50,506	)
Institutional Products Group	6,757			(10,961		)	1,418
Europe	38,644			48,088			40,468
Asia/Pacific	(3,521		)	(9,485		)	(13,258		)
All Other (1)	(20,754		)	(27,251		)	(21,581		)
Consolidated	$	(11,740	)	$	(63,210	)	$	(43,459	)
Assets
North America/HME (2)	$	215,500		$	218,877		$	250,239
Institutional Products Group (3)	38,730			42,692			45,933
Europe	557,740			638,896			693,790
Asia/Pacific	24,421			30,231			31,034
All Other (1)	1,752			15,647			37,142
Assets Held for Sale (4)	—			17,388			38,296
Consolidated	$	838,143		$	963,731		$	1,096,434
Long-lived assets
North America/HME (2)	$	49,319		$	44,727		$	60,309
Institutional Products Group (3)	30,278			33,487			38,342
Europe	391,533			459,957			506,329
Asia/Pacific	3,140			4,046			5,238
All Other (1)	1,752			15,527			36,830
Consolidated	$	476,022		$	557,744		$	647,048
Expenditures for assets
North America/HME	$	1,232		$	2,960		$	5,017
Institutional Products Group	212			1,232			3,308
Europe	5,058			6,708			4,809
Asia/Pacific	969			1,417			830
All Other (1)	51			—			50
Discontinued Operations	—			10			144
Consolidated	$	7,522		$	12,327		$	14,158

  ________________________

(1) Consists of un-allocated corporate SG&A costs and intercompany profits, which do not meet the quantitative criteria for determining reportable segments.

(2) The 2013 North America/HME assets and long-lived assets include a decrease of $167,000 due to an intangible asset impairment write-off.

(3) Restated 2014 and 2013 for rentals businesses sold in July 2015 and classified as assets held for sale.

(4) Assets held for sale includes decreases of $13,041,000 and $1,356,000 in 2014 and 2013, respectively, due to intangible asset impairment write-offs.

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Net sales by product, are as follows (in thousands):

	2015		2014		2013
North America/HME
Lifestyle Products	$	222,944	$	239,625	$	267,934
Mobility and Seating	117,232		115,776		134,995
Respiratory Therapy	130,349		149,063		178,065
Other(1)	3,671		3,403		8,246
	$	474,196	$	507,867	$	589,240
Institutional Products Group
Continuing Care	$	87,137	$	102,796	$	112,290
Europe
Lifestyle Products	$	275,932	$	322,370	$	303,225
Mobility and Seating	208,730		228,163		216,152
Respiratory Therapy	36,373		40,661		40,885
Other(1)	15,428		19,361		22,881
	$	536,463	$	610,555	$	583,143
Asia/Pacific
Mobility and Seating	$	25,655	$	28,174	$	26,737
Lifestyle Products	10,277		11,772		12,023
Continuing Care	3,115		3,956		2,785
Respiratory Therapy	807		1,286		1,290
Other(1)	4,688		3,757		6,997
	$	44,542	$	48,945	$	49,832
Total Consolidated	$	1,142,338	$	1,270,163	$	1,334,505

  ________________________

(1) Includes various services, including repair services, equipment rentals and external contracting.

No single customer accounted for more than 3.3% 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, developing, testing, manufacturing, labeling, promoting, distributing and other practices of health care suppliers and medical device manufacturers are all subject to government scrutiny. Most of the company's facilities are subject to inspection at any time by the FDA or similar medical device regulatory agencies in other jurisdictions. Violations of law or regulations can result in administrative, civil and criminal penalties and sanctions, which could have a material adverse effect on the company's business.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

On November 15, 2013, an amended complaint, in a lawsuit originally instituted on May 24, 2013, was filed against Invacare Corporation, former officer and director Gerald B. Blouch and former officer and director A. Malachi Mixon III in the U.S. District Court for the Northern District of Ohio, alleging that the defendants violated federal securities laws by failing to properly disclose the issues that the company has faced with the FDA. The lawsuit sought class certification and unspecified damages and attorneys' fees for purchasers of the company's common shares between February 27, 2009 and December 7, 2011. After mediation, the parties agreed to settle the matter, which agreement was fully and finally approved by the Court on November 19, 2015, and the case was dismissed. The settlement was paid entirely by the company’s insurance carriers.

On September 12, 2014, a second amended complaint, in a lawsuit originally instituted on August 26, 2013, was filed against Invacare Corporation, former officer and director Gerald B. Blouch, former officer and director A. Malachi Mixon III and the Company's senior Vice President, Human Resources, Patricia Stumpp, as well as outside directors Dale C. LaPorte and Michael F. Delaney and former outside director Charles S. Robb, in the U.S. District Court for the Northern District of Ohio, alleging that the defendants breached their fiduciary duties and violated the Employee Retirement Income Security Act (ERISA) in the administration and maintenance of the company stock fund in the company’s Retirement Savings Plan (401(k) Plan). The lawsuit seeks class certification and unspecified damages and attorneys' fees for participants in the company's stock fund of the 401(k) Plan between July 22, 2010 and the present. On August 28, 2015, the Court limited plaintiff’s claim to the time period between July 22, 2010 and December 8, 2011. This lawsuit has been referred to the company's insurance carriers. The company intends to vigorously defend this lawsuit.

Medical Device Regulatory Matters

The FDA in the United States and comparable medical device regulatory authorities in other jurisdictions regulate virtually all aspects of the marketing, invoicing, documenting, development, testing, manufacturing, labeling, promotion, distribution and other practices regarding medical devices. The company and its products are subject to the laws and regulations of the FDA and other regulatory bodies in the various jurisdictions where the company's products are manufactured or sold. The company's failure to comply with the regulatory requirements of the FDA and other applicable medical device regulatory requirements can subject the company to administrative or judicially imposed sanctions or enforcement actions. These sanctions include injunctions, consent decrees, warning letters, civil penalties, criminal penalties, product seizure or detention, product recalls and total or partial suspension of production.

In December 2012, the company reached agreement with the FDA on the terms of the consent decree of injunction with respect to the company's Corporate facility and its Taylor Street wheelchair manufacturing facility in Elyria, Ohio. A complaint and consent decree were filed in the U.S. District Court for the Northern District of Ohio, and on December 21, 2012, the Court approved the consent decree and it became effective. The consent decree limits the company's manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility. The decree also initially limited design activities related to wheelchairs and power beds that take place at the impacted Elyria, Ohio facilities. The company is entitled to continue to produce from the Taylor Street manufacturing facility certain medically necessary wheelchairs provided that documentation and record-keeping requirements are followed, as well as ongoing replacement, service and repair of products already in use, under terms delineated in the consent decree. Under the terms of the consent decree, in order to resume full operations at the impacted facilities, the company must successfully complete a third-party expert certification audit at the impacted Elyria facilities, which is comprised of three distinct reports that must be submitted to, and accepted by, the FDA. During 2013, the company completed the first two of the third-party expert certification audits, and the FDA found the results of both to be acceptable. In these reports, the third-party expert certified that the company's equipment and process validation procedures and its design control systems are compliant with the FDA's QSR. As a result of the FDA's acceptance of the first certification report on May 13, 2013, the Taylor Street facility was able to resume supplying parts and components for the further manufacturing of medical devices at other company facilities. The company's receipt of the FDA's acceptance of the second certification report on July 15, 2013, resulted in the company being able to resume design activities at the impacted facilities related to power wheelchairs and power beds. In February, 2016, the independent expert auditor issued its certification report for the third phase of the consent decree indicating substantial compliance to the FDA's QSR, and the report has been submitted to the FDA.

Per the terms of the consent decree, the company must submit its own report to the FDA regarding its compliance status together with its written responses to any observations in the independent expert's report. Both the independent expert auditor's third certification report as well as the company's own report must be accepted by the FDA before the agency reinspects the impacted Elyria facilities. If the FDA is satisfied with the company's compliance, the FDA will provide written notification that the company is permitted to resume full operations at the impacted facilities. The company cannot predict the acceptance of these reports by the FDA, nor any remaining work that may be needed to meet the FDA's requirements. The FDA has the authority to inspect any FDA registered facility at any time.

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After resumption of full operations, the company must undergo five years of audits by a third-party expert auditor to determine whether the facilities are in continuous compliance with FDA's QSR and the consent decree. The auditor will inspect the Corporate and Taylor Street facilities’ activities every six months during the first year following the resumption of full operations and then every 12 months for the next four years thereafter.

As described above, because the limitations on production are not expected to be permanent in nature, and partial production is allowed, the company does not anticipate any major repair, replacement or scrapping of its fixed assets at the Taylor Street manufacturing facility. Based on the company's expectations at the time of filing of this Annual Report on Form 10-K with respect to the utilization of such raw material and with respect to expected future cash flows from production at the Taylor Street manufacturing facility, the company concluded that there is no impairment in the value of the fixed assets related to the Taylor Street manufacturing facility at December 31, 2015.

The majority of the production from the Taylor Street facility is "made to order" custom wheelchairs for customers and, as a result, there was not a significant amount of finished goods inventory on hand at December 31, 2015, and the inventory is expected to be fully utilized. Accordingly, the company concluded that there was not an impairment of the work in process and finished goods at the Taylor Street facility at December 31, 2015. Further, based on its analysis of the raw material inventory at the Taylor Street facility and the company's expectations at the time of filing of this Annual Report on Form 10-K with respect to the time frame for FDA's acceptance of the third-party expert certification audit and FDA inspection, the company concluded that the value of the inventory was not excessive nor impaired at December 31, 2015. However, if the company's expectations regarding the impacts of the limitations in the consent decree or the time frame for acceptance of the third-party expert certification audit and FDA inspection were to change, the company may, in future periods, conclude that an impairment exists with respect to its fixed assets or inventory at the Taylor Street facility.

Although the North America/HME segment is the segment primarily impacted by the limitations in the FDA consent decree, the Asia/Pacific segment also is negatively affected as a result of the consent decree due to the lower sales volume of microprocessor controllers. During 2012, before the effective date of the consent decree, the company started to experience decreases in net sales in the North America/HME and Asia/Pacific segments. The company believes that those decreases, which continued beyond 2012, were driven in large part by the consent decree which led to delays in new product introductions and to uncertainty regarding the timing of exiting the consent decree, which limited the company's ability to renegotiate and bid on certain customer contracts and otherwise led to a decline in customer orders. Separately, net sales in the North America/HME segment were likely impacted by uncertainty on the part of the company's customers as they coped with prepayment reviews and post-payment audits by the Centers for Medicare and Medicaid Services ("CMS") and contemplated their participation in the National Competitive Bidding ("NCB") process. The negative effect of the consent decree on customer orders and net sales in these segments has been considerable, and the company expects to continue to experience low levels of net sales in the North America/HME and Asia/Pacific segments at least until it has successfully completed the previously-described FDA re-inspection and has received written notification from the FDA that the company may resume full operations at the Corporate and Taylor Street facilities. Even after the company is permitted to resume full operations at the affected facilities, it is uncertain as to whether, or how quickly, the company will be able to rebuild net sales to more typical historical levels, irrespective of market conditions. Accordingly, when compared to the company's 2010 results, the limitations in the consent decree had, and likely will continue to have, a material adverse effect on the company's business, financial condition and results of operations.

For additional information regarding the consent decree, please see the following sections of this Annual Report on Form 10-K: Item 1. Business - Government Regulation and Item 1A. Risk Factors; Item 3. Legal Proceedings; and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook and - Liquidity and Capital Resources.

The company's warranty reserves are subject to adjustment in future periods as new developments change the company's estimate of the total cost of these matters. In 2015, the company's warranty expense includes reversals of $2,325,000 comprised of $2,000,000 related the company's stationary oxygen concentrator recall, $250,000 related to the recall of a sieve bed component and $75,000 related to the company's joystick recall, all of which impacted the North America/HME segment.

The company' recorded incremental warranty expense in 2014 totaling $11,493,000 for three specific product recalls. First, an expense of $6,559,000 for a recall related to a component in a stationary oxygen concentrator that was manufactured in the company’s facility in Suzhou, China, and sold globally. This expense was recorded in the European segment ($3,395,000) and North America/HME segment ($3,164,000). Second, an expense of $2,057,000 for the recall of a sieve bed component used within stationary oxygen concentrators manufactured in the company's Sanford, Florida facility during August 2014, which was recorded in the North America/HME segment. Third, an incremental expense of $2,877,000 related to the company's joystick recall as a result of higher than previously anticipated response rates from large customers in the U.S. and Canada and a product mix toward

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

higher cost joysticks, which was recorded in the North America/HME segment ($1,612,000) and the Asia/Pacific segment ($1,265,000).

In 2013, the company recorded an incremental warranty reserve of $7,264,000, which primarily impacted the Asia/Pacific ($4,639,000) and the North America/HME ($2,625,000) segments. The warranty accrual related to the power wheelchair joystick recall which was increased during the fourth quarter of 2013 principally as a result of the commencement of the recall in the quarter and the realization that the number of replacement units required was trending higher than the company's original estimates, which were based on historical experience related to previous recalls. See Current Liabilities in the Notes to the Consolidated Financial Statements for the total provision amounts and a reconciliation of the changes in the warranty accrual.

In December 2010, the company received a warning letter from the FDA related to quality system processes and procedures at the company's Sanford, Florida facility. In January 2014, the FDA conducted inspections at the company’s manufacturing facility in Suzhou, China and at the company’s electronic components subsidiary in Christchurch, New Zealand, covering quality systems and current Good Manufacturing Practice regulations. In August 2014, the FDA inspected Alber GmbH in Albstadt, Germany. The FDA issued its inspectional observations on Forms 483 to the company after these inspections, and the company submitted its responses to the agency in a timely manner. In October 2014, the FDA conducted an inspection at the Sanford facility and, at the conclusion, issued its Form 483 observations. In December 2015, the FDA issued Form 483 observations following a 2015 inspection of approximately 5 months at the Corporate and Taylor Street facilities in Elyria, Ohio which included a review of the company’s compliance with terms of the consent decree and the matters covered by the first and second expert certification reports previously accepted in 2013. The company has timely filed its responses to these Form 483 with the FDA and continues to work on addressing the FDA's observations. The results of regulatory claims, proceedings, investigations, or litigation are difficult to predict. An unfavorable resolution or outcome of the FDA warning letter or other FDA enforcement related to the Sanford or other company facilities could materially and adversely affect the company's business, financial condition, and results of operations.

Any of the above contingencies could have an adverse impact on the company's financial condition or results of operations.

Subsequent Event

On February 16, 2016, in connection with the commencement of the company's offering of 5.00% convertible senior notes due 2021 described below, the company entered into a First Amendment to Amended and Restated Revolving Credit and Security Agreement (the “Credit Agreement Amendment”), which amended the Amended and Restated Revolving Credit and Security Agreement (the “Credit Agreement”), dated as of September 30, 2015, by and among the company, certain of the company’s direct and indirect domestic, Canadian and European subsidiaries, the lenders party thereto, PNC Bank, National Association, as the administrative agent, and J.P. Morgan Europe Limited, as the European agent. The Credit Agreement Amendment provides for, among other things:

• the amendment of the negative covenant regarding indebtedness to permit the issuance of new convertible notes ;

• the amendment of various negative covenants to permit convertible bond hedge and warrant transactions to be entered into by the company in connection with the issuance of new convertible notes;

• the amendment of the mandatory prepayment provision to eliminate the prepayment requirement that would otherwise be required upon the receipt of proceeds from the issuance of the convertible notes and the sale of the warrants and the negative covenant regarding dividends to permit the issuance of certain equity interests, payment of interest on the notes and certain payments to be made upon conversion of the convertible notes, as well as upon the exercise, settlement or termination of the convertible bond hedge and warrant transactions, so long as the company is not, and would not after giving pro-forma effect to any such transaction be, in default under the Credit Agreement and has had undrawn availability equal to at least 20% of the maximum revolving advance amount under its North American-based credit facility (which maximum amount is currently $100,000,000) for the 30 consecutive days ending delivered by the company under the Credit Agreement;

• the amendment of the negative covenant to permit the repurchase by the company of up to $5,000,000 of its common shares, including any such shares that may be repurchased in connection with the issuance of the convertible notes so long as the company is not, and would not after giving pro-forma effect to any such repurchase be, in default under the Credit Agreement and has had undrawn availability equal to at least 20% of the maximum revolving advance amount under its North American-based credit facility (which maximum amount is currently $100,000,000) for the 30 consecutive days ending as of the date of the most recent North American borrowing base certificate delivered by the company under the Credit Agreement;

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• the amendment of the negative covenant regarding capital expenditures to increase the aggregate amount of permitted expenditures from $20,000,000 to $35,000,000;

• the amendment of the negative covenant regarding investments to permit certain qualifying acquisitions for total aggregate consideration of up to $30,000,000;

• the amendment of the negative covenant regarding sales of assets to increase the aggregate amount of permitted dispositions from $20,000,000 to $25,000,000 (calculated as of the date of the Credit Agreement Amendment), so long as the company is not, and would not after giving pro-forma effect to any such disposition be, in default under the Credit Agreement and has had undrawn availability equal to at least 20% of the maximum revolving advance amount under its North American-based credit facility (which maximum amount is currently $100,000,000) for the 30 consecutive days ending as of the date of the most recent North American borrowing base certificate delivered by the company under the Credit Agreement; and

• the amendment of the availability block (which affects the company’s borrowing base) by reducing the block from $10,000,000 to $5,000,000, the effect of which is to increase borrowing capacity.

Also on February 16, 2016, the company executed a release, acknowledged by Wells Fargo Bank, N.A., as trustee, effecting the release as guarantors of all of the company’s subsidiaries that were guarantors of the company’s 4.125% Convertible Senior Subordinated Debentures due 2027, issued pursuant to the terms of the indenture, dated as of February 12, 2007, between the company and the trustee. See “Supplemental Guarantor Information”.

On February 23, 2016, the company issued $130,000,000 aggregate principal amount of 5.00% convertible senior notes due 2021 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. In connection with the offering, the company granted the initial purchasers an option to purchase (solely to cover over-allotments, if any) up to an additional $20,000,000 aggregate principal amount of notes, for which notice of exercise shall be delivered to the company within a 13-day period beginning on, and including, the date the Company first issues the notes.

The notes bear interest at a rate of 5.00% per year payable semi-annually in arrears on February 15 and August 15 of each year, beginning August 15, 2016. The notes will mature on February 15, 2021, unless repurchased or converted in accordance with their terms prior to such date. Prior to August 15, 2020, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Unless and until the company obtains shareholder approval under applicable New York Stock Exchange rules, the notes will be convertible, subject to certain conditions, into cash. If the company obtains such shareholder approval, the notes may be settled in cash, the company’s common shares or a combination of cash and the company’s common shares, at the company’s election. Holders of the notes will have the right to require the company to repurchase all or some of their notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The conversion rate will initially be 60.0492 common shares per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $16.65 per common share).

In connection with the offering of the notes, the company entered into privately negotiated convertible note hedge transactions with two financial institutions (the “option counterparties”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the notes, and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the notes. The company entered into separate, privately negotiated warrant transactions with the option counterparties at a higher strike price relating to the same number of the company’s common shares, subject to customary anti-dilution adjustments, pursuant to which the company will sell warrants to the option counterparties. The warrants could have a dilutive effect on the company’s outstanding common shares and the company’s earnings per share to the extent that the price of the company’s common shares exceeds the strike price of those warrants. The strike price of the warrants will initially be $22.4175 per share and is subject to certain adjustments under the terms of the warrant transactions.

The net proceeds from the offering were approximately $124,800,000, after deducting fees and estimated offering expenses payable by the company and excluding the option by the purchasers to purchase an additional $20,000,000 aggregate principal amount of notes. Approximately $5,000,000 of the net proceeds from the offering were used to repurchase the company’s common shares from purchases of notes in the offering in privately negotiated transactions. A portion of the net proceeds from the offering were used to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to the company from the sale of the warrant transactions), which net cost was $13,520,000. The company intends to use the remaining net proceeds from the offering for working capital and general corporate purposes, which may include funding portions of the

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company’s ongoing turnaround and addressing potential risks and contingencies described in the company’s Risk Factors as included in this Form 10-K.

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. On February 16, 2016, all of the company’s subsidiaries were released as guarantors of the Debentures, pursuant to the terms of the Indenture, dated as of February 12, 2007, between the company and the trustee named therein. See "Subsequent Events".

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, 2015
Net sales	$	211,178		$	402,108		$	649,966		$	(120,914	)	$	1,142,338
Cost of products sold	187,272			305,592			457,634			(120,984		)	829,514
Gross Profit	23,906			96,516			192,332			70			312,824
Selling, general and administrative expenses	111,814			63,068			144,965			—			319,847
Charge related to restructuring activities	1,339			—			632			—			1,971
Income (loss) from equity investee	69,636			29,353			703			(99,692		)	—
Interest expense (income)—net	3,011			428			(693		)	—			2,746
Earnings (Loss) from Continuing Operations Before Income Taxes	(22,622		)	62,373			48,131			(99,622		)	(11,740		)
Income taxes	3,568			—			11,142			—			14,710
Net Earnings (Loss) from Continuing Operations	(26,190		)	62,373			36,989			(99,622		)	(26,450		)
Net Earnings from Discontinued Operations	—			260			—			—			260
Net Earnings (Loss)	(26,190		)	62,633			36,989			(99,622		)	(26,190		)
Other Comprehensive Income (Loss), net of Tax	(81,006		)	(15,037		)	(67,842		)	82,879			(81,006		)
Comprehensive Income (Loss)	$	(107,196	)	$	47,596		$	(30,853	)	$	(16,743	)	$	(107,196	)

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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	)

FS-53

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

CONSOLIDATING CONDENSED STATEMENTS OF OPERATIONS
	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
Year ended December 31, 2013
Net sales	$	241,871		$	460,960		$	720,978	$	(89,304	)	$	1,334,505
Cost of products sold	211,896			338,650			506,308		(89,775		)	967,079
Gross Profit	29,975			122,310			214,670		471			367,426
Selling, general and administrative expenses	123,377			93,731			177,530		2,694			397,332
Charge related to restructuring activities	6,356			79			2,901		—			9,336
Asset write-downs to intangibles and goodwill	—			1,250			273		—			1,523
Income (loss) from equity investee	133,350			29,644			286		(163,280		)	—
Interest (income) expense—net	(1,661		)	3,353			1,002		—			2,694
Earnings (Loss) from Continuing Operations Before Income Taxes	35,253			53,541			33,250		(165,503		)	(43,459		)
Income taxes (benefit)	2,202			(1,785		)	10,458		—			10,875
Net Earnings (Loss) from Continuing Operations	33,051			55,326			22,792		(165,503		)	(54,334		)
Net Earnings from Discontinued Operations	—			87,385			—		—			87,385
Net Earnings (Loss)	33,051			142,711			22,792		(165,503		)	33,051
Other Comprehensive Income (Loss), net of Tax	12,413			(2,309		)	17,797		(15,488		)	12,413
Comprehensive Income (Loss)	$	45,464		$	140,402		$	40,589	$	(180,991	)	$	45,464

FS-54

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

CONSOLIDATING CONDENSED BALANCE SHEETS

	The company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	14,047	$	314	$	45,694	$	—		$	60,055
Trade receivables, net	43,534		20,020		70,101		—			133,655
Installment receivables, net	—		361		784		—			1,145
Inventories, net	6,300		25,418		103,173		(2,084		)	132,807
Intercompany advances, net	8,392		109		49,022		(57,523		)	—
Other current assets	6,380		186		32,384		(4,491		)	34,459
Total Current Assets	78,653		46,408		301,158		(64,098		)	362,121
Investment in Subsidiaries	1,430,070		467,352		—		(1,897,422		)	—
Intercompany Advances, net	1,115,121		1,881,567		185,389		(3,182,077		)	—
Other Assets	3,095		727		837		—			4,659
Intangibles	123		388		30,489		—			31,000
Property and Equipment, net	32,382		10,170		36,131		—			78,683
Goodwill	—		12,142		349,538		—			361,680
Total Assets	$	2,659,444	$	2,418,754	$	903,542	$	(5,143,597	)	$	838,143
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	38,395	$	8,699	$	58,514	$	—		$	105,608
Accrued expenses	31,061		20,940		74,910		(4,491		)	122,420
Current taxes, payable and deferred	1,336		—		16,252		—			17,588
Intercompany advances, net	43,972		2,412		11,140		(57,524		)	—
Short-term debt and current maturities of long-term obligations	880		275		873		—			2,028
Total Current Liabilities	115,644		32,326		161,689		(62,015		)	247,644
Long-Term Debt	35,326		7,257		2,509		—			45,092
Other Long-Term Obligations	31,821		1,752		49,016		—			82,589
Intercompany Advances, net	2,013,835		1,116,834		51,407		(3,182,076		)	—
Total Shareholders’ Equity	462,818		1,260,585		638,921		(1,899,506		)	462,818
Total Liabilities and Shareholders’ Equity	$	2,659,444	$	2,418,754	$	903,542	$	(5,143,597	)	$	838,143

FS-55

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

CONSOLIDATING CONDENSED BALANCE SHEETS

	The company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
December 31, 2014
Assets
Current Assets
Cash and cash equivalents	$	7,340	$	355	$	31,236	$	—		$	38,931
Trade receivables, net	47,030		21,979		85,198		—			154,207
Installment receivables, net	—		292		762		—			1,054
Inventories, net	25,021		25,784		107,139		(2,383		)	155,561
Deferred income taxes	—		—		2,048		—			2,048
Intercompany advances, net	10,007		976		84,816		(95,799		)	—
Other current assets	8,082		228		33,123		(4,635		)	36,798
Assets held for sale - current	3,982		13,406		—		—			17,388
Total Current Assets	101,462		63,020		344,322		(102,817		)	405,987
Investment in Subsidiaries	1,409,482		491,541		—		(1,901,023		)	—
Intercompany Advances, net	1,049,235		1,685,366		184,652		(2,919,253		)	—
Other Assets	16,955		657		1,441		—			19,053
Intangibles	286		393		37,334		—			38,013
Property and Equipment, net	29,632		7,209		42,818		—			79,659
Goodwill	—		11,968		409,051		—			421,019
Total Assets	$	2,607,052	$	2,260,154	$	1,019,618	$	(4,923,093	)	$	963,731
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	48,815	$	6,363	$	64,749	$	—		$	119,927
Accrued expenses	51,613		20,533		88,188		(4,635		)	155,699
Current taxes, payable and deferred	1,632		—		11,002		—			12,634
Intercompany advances, net	81,141		1,738		12,921		(95,800		)	—
Short-term debt and current maturities of long-term obligations	—		—		959		—			959
Liabilities held for sale - current	632		381		—		—			1,013
Total Current Liabilities	183,833		29,015		177,819		(100,435		)	290,232
Long-Term Debt	15,351		—		4,021		—			19,372
Other Long-Term Obligations	28,551		—		60,254		—			88,805
Intercompany Advances, net	1,813,995		1,051,170		54,088		(2,919,253		)	—
Total Shareholders’ Equity	565,322		1,179,969		723,436		(1,903,405		)	565,322
Total Liabilities and Shareholders’ Equity	$	2,607,052	$	2,260,154	$	1,019,618	$	(4,923,093	)	$	963,731

FS-56

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2015
Net Cash Provided (Used) by Operating Activities	$	(26,382	)	$	2,125		$	18,774		$	105		$	(5,378	)
Investing Activities
Purchases of property and equipment	(464		)	(704		)	(6,354		)	—			(7,522		)
Proceeds from sale of property and equipment	23,040			52			25			—			23,117
Proceeds from sale of businesses	—			13,700			—			—			13,700
Decrease in other long-term assets	14,488			—			515			—			15,003
Other	—			5			178			(105		)	78
Net Cash Provided (Used) for Investing Activities	37,064			13,053			(5,636		)	(105		)	44,376
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	214,755			—			4,848			—			219,603
Payments on revolving lines of credit and long-term borrowings	(217,589		)	(15,219		)	—			—			(232,808		)
Proceeds from exercise of equity awards	2,402			—			—			—			2,402
Payment of financing costs	(1,954		)	—			—			—			(1,954		)
Payment of dividends	(1,589		)	—			—			—			(1,589		)
Net Cash Used (Provided) by Financing Activities	(3,975		)	(15,219		)	4,848			—			(14,346		)
Effect of exchange rate changes on cash	—			—			(3,528		)	—			(3,528		)
Increase (decrease) in cash and cash equivalents	6,707			(41		)	14,458			—			21,124
Cash and cash equivalents at beginning of year	7,340			355			31,236			—			38,931
Cash and cash equivalents at end of year	$	14,047		$	314		$	45,694		$	—		$	60,055

FS-57

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2014
Net Cash (Used) Provided by Operating Activities	$	(34,135	)	$	(511	)	$	14,105		$	29,433		$	8,892
Investing Activities
Purchases of property and equipment	(2,256		)	(1,811		)	(8,260		)	—			(12,327		)
Proceeds from sale of property and equipment	—			—			2,521			—			2,521
Proceeds from sale of businesses	—			21,870			—			—			21,870
Decrease in other long-term assets	20,926			—			23			—			20,949
Other	44,420			(14,393		)	(25		)	(29,433		)	569
Net Cash Provided (Used) for Investing Activities	63,090			5,666			(5,741		)	(29,433		)	33,582
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	255,658			—			—			—			255,658
Payments on revolving lines of credit and long-term borrowings	(277,570		)	(5,113		)	(4,029		)	—			(286,712		)
Proceeds from exercise of equity awards	480			—			—			—			480
Payment of dividends	(1,584		)	—			—			—			(1,584		)
Net Used by Financing Activities	(23,016		)	(5,113		)	(4,029		)	—			(32,158		)
Effect of exchange rate changes on cash	—			—			(1,170		)	—			(1,170		)
Increase in cash and cash equivalents	5,939			42			3,165			—			9,146
Cash and cash equivalents at beginning of year	1,401			313			28,071			—			29,785
Cash and cash equivalents at end of year	$	7,340		$	355		$	31,236		$	—		$	38,931

FS-58

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2013
Net Cash Provided (Used) by Operating Activities	$	11,566		$	(68,792	)	$	1,891		$	65,389		$	10,054
Investing Activities
Purchases of property and equipment	(3,601		)	(4,020		)	(6,537		)	—			(14,158		)
Proceeds from sale of property and equipment	4			13			868			—			885
Proceeds from sale of businesses	—			187,552			—			—			187,552
Decrease in other long-term assets	833			—			168			—			1,001
Other	181,195			(113,067		)	20			(68,083		)	65
Net Cash Provided (Used) for Investing Activities	178,431			70,478			(5,481		)	(68,083		)	175,345
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	323,187			—			29,268			—			352,455
Payments on revolving lines of credit and long-term borrowings	(516,488		)	(2,391		)	(26,995		)	—			(545,874		)
Proceeds from exercise of equity awards	512			—			—			—			512
Payment of dividends	(1,581		)	—			(2,694		)	2,694			(1,581		)
Net Cash (Used) Provided by Financing Activities	(194,370		)	(2,391		)	(421		)	2,694			(194,488		)
Effect of exchange rate changes on cash	—			—			83			—			83
Decrease in cash and cash equivalents	(4,373		)	(705		)	(3,928		)	—			(9,006		)
Cash and cash equivalents at beginning of year	5,774			1,018			31,999			—			38,791
Cash and cash equivalents at end of year	$	1,401		$	313		$	28,071		$	—		$	29,785

FS-59

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Interim Financial Information (unaudited)

	QUARTER ENDED (In thousands, except per share data)
	March 31,			June 30,			September 30,			December 31,
2015
Net sales	$	289,024		$	286,273		$	283,776		$	283,265
Gross profit	77,095			77,287			77,639			80,803
Earnings (loss) from continuing operations before income taxes	(5,039		)	(6,492		)	(790		)	581
Net loss from continuing operations	(7,514		)	(8,217		)	(7,790		)	(2,929		)
Net earnings from discontinued operations	260			—			—			—
Net loss	(7,254		)	(8,217		)	(7,790		)	(2,929		)
Net loss per share from continuing operations—basic	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Net earnings per share from discontinued operations—basic	0.01			—			—			—
Net loss per share—basic	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Loss per share from continuing operations—assuming dilution *	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Net earnings per share from discontinued operations—assuming dilution	0.01			—			—			—
Net loss per share—assuming dilution *	(0.23		)	(0.26		)	(0.24		)	(0.09		)
	March 31,			June 30,			September 30,			December 31,
2014
Net sales	$	304,501		$	326,943		$	320,520		$	318,199
Gross profit	82,793			91,578			84,647			88,370
Loss from continuing operations before income taxes	(16,870		)	(11,580		)	(26,375		)	(8,385		)
Net loss from continuing operations	(18,895		)	(14,455		)	(28,725		)	(6,685		)
Net earnings (loss) from discontinued operations	919			842			13,629			(2,700		)
Net loss	(17,976		)	(13,613		)	(15,096		)	(9,385		)
Net loss per share from continuing operations—basic	(0.59		)	(0.45		)	(0.90		)	(0.21		)
Net earnings (loss) per share from discontinued operations—basic	0.03			0.03			0.43			(0.08		)
Net loss per share—basic	(0.56		)	(0.43		)	(0.47		)	(0.29		)
Net loss per share from continuing operations—assuming dilution *	(0.59		)	(0.45		)	(0.90		)	(0.21		)
Net earnings (loss) per share from discontinued operations—assuming dilution	0.03			0.03			0.42			(0.08		)
Net loss per share—assuming dilution *	(0.56		)	(0.43		)	(0.47		)	(0.29		)

* Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

FS-60

INVACARE CORPORATION AND SUBSIDIAIRIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

The description of significant items affecting continuing operations for each quarter presented are detailed below. The company has classified Altimate as a discontinued operation for all periods presented.

Loss and loss per share for the quarter ended March 31, 2015 reflects restructuring charges of $240,000 ($240,000 after tax or $0.01 per share assuming dilution) and increased amortization expense related to the write-off of debt fees related to a debt amendment of $668,000 ($668,000 after tax or $0.02 per share assuming dilution).

Loss and loss per share for the quarter ended June 30, 2015 reflects restructuring charges of $689,000 ($635,000 after tax or $0.02 per share assuming dilution).

Loss and loss per share for the quarter ended September 30, 2015 reflects a tax expense impact as a result of goodwill deducted for tax purposes from the sale of the rentals business of $3,400,000 ($0.11 per share assuming dilution).

Loss and loss per share for the quarter ended December 31, 2015 reflects recall warranty expense reversal of $2,325,000 ($2,325,000 after tax or $0.07 per share assuming dilution) and restructuring charges of $1,031,000 pre-tax ($957,000 after tax or $0.03 per share assuming dilution).

Loss and loss per share for the quarter ended March 31, 2014 reflects restructuring charges of $2,240,000 ($1,811,000 after tax or $0.06 per share assuming dilution), incremental recall warranty expense of $2,237,000 ($2,100,000 after tax or $0.07 per share assuming dilution) and increased amortization expense related to the write-off of debt fees related to a debt amendment of $1,070,000 ($1,070,000 after tax or $0.03 per share assuming dilution).

Loss and loss per share for the quarter ended June 30, 2014 reflects restructuring charges of $2,090,000 ($1,711,000 after tax or $0.05 per share assuming dilution).

Loss and loss per share for the quarter ended September 30, 2014 reflects restructuring charge of $4,077,000 ($3,842,000 after tax or $0.12 per share assuming dilution), incremental recall warranty expense of $9,256,000 ($8,701,000 after tax or $0.27 per share assuming dilution), intangible asset write-downs of $8,253,000 ($8,253,000 after tax or $0.26 per share assuming dilution)and a positive impact of an intraperiod tax allocation associated with discontinued operations of $1,550,000 ($0.05 per share assuming dilution).

Loss and loss per share for the quarter ended December 31, 2014 reflects restructuring charges of $2,705,000 ($2,732,000 after tax or $0.09 per share assuming dilution), asset write-downs for intangibles of $4,788,000 ($4,788,000 after tax or $0.15 per share assuming dilution) and the positive impact of an intraperiod tax allocation associated with discontinued operations $2,700,000 ($0.08 per share assuming dilution).

FS-61

INVACARE CORPORATION AND SUBSIDIARIES

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

	COL A.		COL B.		COL C.				COL D.
	Balance At Beginning of Period		Charged To Cost And Expenses		Additions (Deductions) Describe				Balance At End of Period
			(In thousands)
Year Ended December 31, 2015
Deducted from asset accounts—
Allowance for doubtful accounts	$	17,822	$	754	$	(5,297	)	(A)	$	13,279
Inventory obsolescence reserve	17,617		5,054		(5,983		)	(B)	16,688
Tax valuation allowances	133,912		19,717		(1,657		)	(D)	151,972
Accrued warranty cost	30,738		9,899		(17,817		)	(B)	22,820
Accrued product liability	23,194		5,250		(10,735		)	(C)	17,709
Year Ended December 31, 2014
Deducted from asset accounts—
Allowance for doubtful accounts	$	23,144	$	1,765	$	(7,087	)	(A)	$	17,822
Inventory obsolescence reserve	15,135		5,993		(3,511		)	(B)	17,617
Tax valuation allowances	117,790		33,195		(17,073		)	(D)	133,912
Accrued warranty cost	27,393		26,097		(22,752		)	(B)	30,738
Accrued product liability	20,368		5,910		(3,084		)	(C)	23,194
Year Ended December 31, 2013
Deducted from asset accounts—
Allowance for doubtful accounts	$	25,232	$	3,684	$	(5,772	)	(A)	$	23,144
Inventory obsolescence reserve	13,085		5,310		(3,260		)	(B)	15,135
Tax valuation allowances	97,406		1,078		19,306			(D)	117,790
Accrued warranty cost	21,451		19,394		(13,452		)	(B)	27,393
Accrued product liability	20,334		7,039		(7,005		)	(C)	20,368

  ________________________

Note (A)—Uncollectible accounts written off, net of recoveries.

Note (B)—Amounts written off or payments incurred.

Note (C)—Loss and loss adjustment.

Note (D)—Other activity not affecting federal or foreign tax expense.

FS-62

EX-10.D

Exhibit 10(d)

AGREEMENT

This AGREEMENT (“Agreement”), is made as of the 31st day of December, 2008, between INVACARE CORPORATION, an Ohio corporation (“Invacare”), and (the “Executive”).

Invacare previously has entered into an agreement with Executive that is similar to this Agreement in recognition of the importance of the Executive’s services to the continuity of management of Invacare and based upon its determination that it will be in the best interests of Invacare to encourage the Executive’s continued attention and dedication to the Executive’s duties in the potentially disruptive circumstances of a possible Change of Control of Invacare. (As used in this Agreement, the term “Change of Control” and certain other capitalized terms have the meanings ascribed to them in Section 10 hereof.

Invacare has determined that it is necessary to amend and restate such previous agreement with Executive based on certain changes to the existing Change of Control Agreements between Invacare and certain of its executive officers, including Executive, that were reviewed and approved by the Compensation, Management Development and Corporate Governance Committee of Invacare including, without limitation, revisions intended to comply with Internal Revenue Code Section 409A.

Invacare and the Executive agree, effective as of the date first set forth above (the “Effective Date”), as follows:

1. Additional Payment if Executive is Employed by Invacare on First Anniversary of the Date of a Change of Control or if Employment is Terminated in Certain Circumstances Within One Year of a Change of Control. If, following the occurrence of a Change of Control, either (i) the Executive continues to be employed by Invacare or one of its Affiliates on the first anniversary of the date of the Change of Control, or (ii) the Executive’s employment with Invacare is terminated by Invacare for any reason other than Cause, Disability, or death, or is terminated by the Executive for Good Reason, within one year after the Change of Control, then Invacare shall pay to the Executive, within ten business days after the earlier of such events, a lump-sum amount equal to the sum of (a) the Executive’s Annual Base Salary plus (b) the Executive’s Target Bonus.

2. Severance Benefits if Employment is Terminated in Certain Circumstances Within Three Years of a Change of Control. If, within three years following the occurrence of a Change of Control, the Executive’s employment with Invacare is terminated by Invacare for any reason other than Cause, Disability, or death, or is terminated by the Executive for Good Reason, then the provisions of this Section 2 shall become applicable in all respects and Invacare shall pay to the Executive, in addition to any amount paid or payable pursuant to Section 1 above, the amounts specified in Sections 2.1, 2.2, 2.3, 2.4, and 2.5 on the dates indicated therein, shall provide to the Executive the benefits specified in Section 2.6 for the periods specified therein, and shall cause certain rights of the Executive (or his or her Beneficiary (or Beneficiaries), as applicable) to vest as provided in Sections 2.7, 2.8, 2.9, and 2.10:

2.1 Lump Sum Severance Benefit. Invacare shall pay to the Executive, within ten business days after the Termination Date, a lump sum severance benefit equal to two times the sum of (i) the Executive’s Annual Base Salary plus (ii) the Executive’s Target Bonus.

2.2 Invacare Retirement Savings Plan. Invacare shall pay to the Executive, within 60 days after the Termination Date, a lump sum amount equal to three times the highest amount of total contributions (including both matching contributions and other employer contributions) made by Invacare to the Invacare Retirement Savings Plan (or related successor plan or plans) with respect to the Executive for any single plan year ending on or after the date that is three years before the date of the Change of Control. In the event the Executive is not fully vested under the Invacare Retirement Savings Plan as of the Termination Date, the lump sum amount payable under this Section 2.2 shall be increased to include an amount equal to the non-vested portion of the Executive’s account under the Invacare Retirement Savings Plan.

2.3 401(k) Plus Plan. Invacare shall pay to the Executive, within 60 days after the Termination Date, a lump sum amount equal to three times the highest amount of the employer contributions (including both matching contributions and other employer contributions) credited to the Invacare 401(k) Plus Benefit Equalization Plan (or related successor plan or plans) (the “401(k) Plus Plan”) for the benefit of the Executive for any single plan year ending on or after the date that is three years before the date of the Change of Control.

2.4 Deferred Compensation Plus Plan. Invacare shall pay to the Executive, within 60 days after the Termination Date, a lump sum amount equal to three times the highest amount of the employer contributions (including both matching contributions and other employer contributions) credited to the Invacare Deferred Compensation Plus Plan (or related successor plan or

plans) for the benefit of the Executive for any single plan year ending on or after the date that is three years before the date of the Change of Control.

2.5 SERP. Invacare shall pay to the Executive, within 60 days after the Termination Date, a lump sum amount equal to the sum of the contributions and credited interest which were scheduled to be added to Executive’s account under the Invacare Cash Balance Supplemental Executive Retirement Plan (or related successor plan or plans), during the three year period immediately following the Termination Date (including prorated amounts, as applicable), if Executive had continued in the employ of Invacare through the third anniversary of the Termination Date, all as reflected on the attachment to the participation agreement executed by the Executive in connection with such plan

2.6 Insurance Benefits. Invacare shall provide to the Executive, from the Termination Date through the third anniversary of the Termination Date, continuing coverage under health, life, and disability insurance programs at least equal in all respects to the highest level of such coverage provided by Invacare to the Executive at any time during the period beginning one year before the Change of Control and ending on the Termination Date.

2.7 Stock Options and Restricted Stock. In respect of all options to purchase Invacare stock and all shares of restricted stock that have been granted to the Executive pursuant to any stock option or restricted stock agreement, plan or arrangement sponsored by Invacare and which remain outstanding as of the Termination Date, and notwithstanding any other provision to the contrary contained in any stock option or restricted stock agreement, plan or arrangement, Invacare shall:

(a) with respect to all options, cause such options:

(i)	to become exercisable in full as of the Termination Date;
(ii)	to continue to be exercisable until the earlier to occur of the second anniversary of the Termination Date or the expiration date of the option;
(iii)	to be exercisable (and/or to be eligible to satisfy any tax withholding requirements in connection with the exercise of the options) using shares of Invacare common stock previously owned by the Executive and/or shares subject to the options being exercised as consideration in lieu of a cash payment or other arrangement, but only to the extent that any such exercise of the option (and/or withholding tax payments) would not result in Invacare being required to take an additional charge in respect of such exercise in determining and reporting its net income for financial accounting purposes; and

(b) with respect to all restricted stock, cause such restricted stock:

(i)	to become vested in full as of the Termination Date; and
(ii)	to be eligible to satisfy any tax withholding requirements in connection with such vesting of the restricted stock using shares of Invacare common stock previously owned by the Executive and/or shares of restricted stock that become so vested as consideration (in lieu of a cash payment or other

arrangement) for the payment of withholding tax, but only to the extent that any such withholding tax payments would not result in Invacare being required to take an additional charge in respect of such accelerated vesting or withholding tax payment in determining and reporting its net income for financial accounting purposes.

2.8 Vesting of Certain Rights. Invacare shall cause the Executive’s rights under (a) the Invacare 401(k) Plus Plan, (b the Invacare Deferred Compensation Plus Plan and (c) the Invacare Cash Balance Supplemental Executive Retirement Plan, to become, as of the Termination Date, immediately vested in full.

2.9 Death of the Executive. In the event of the Executive’s death at any time after the Termination Date through the third anniversary of the Termination Date, then, assuming the Executive was, as of such time, entitled to receive payments and/or benefits pursuant to Sections 1 and/or 2 of this Agreement:

(a) the amounts described in Sections 1, 2.1, 2.2, 2.3, 2.4, and 2.5, to the extent not paid to the Executive, shall be paid to the Beneficiary as soon as practicable following the Executive’s death;

(b) any person who would have been entitled to coverage as the Executive’s dependent (or otherwise because of the Executive’s coverage) under any health insurance program maintained by Invacare (as described in Section 2.6) shall continue to be provided with such coverage as though the Executive had survived through the third anniversary of the Termination Date;

(c) such persons as may be entitled thereto shall receive such benefits as may be provided under any Employee Benefit Plans in accordance with the terms of such Employee Benefit Plans;

(d) such persons as may be entitled thereto shall receive such benefits as may be provided under any other agreement the Executive may have with Invacare or an Affiliate including, without limitation, any agreement relating to options to purchase Invacare stock.

2.10 Alternate Form of Benefit. Notwithstanding the preceding provisions of this Section 2, to the extent the Executive cannot, as a matter of law, or pursuant to the customs or policies of any insurance underwriter or the terms of any benefit plan, realize any benefit or advantage described above in this Section 2 (and especially Section 2.6), or if Invacare reasonably believes that providing the Executive with any such benefit or advantage would be economically disadvantageous because doing so would cause Invacare to lose tax or other benefits or would cause Executive to incur additional taxes or lose other benefits, Invacare shall notify the Executive and shall pay to the Executive an additional amount or provide a comparable benefit which shall, taking account of any federal, state and local income taxes incurred by the Executive in respect of such payments or benefits, place the Executive in the same, or substantially the same, position, on an after-tax basis, as though he had realized such benefit or advantage; provided, that the amount of any payment to the Executive pursuant to the preceding clause shall be calculated at Invacare’s cost and expense by the Accounting Firm, and its determination of such amount shall be final and binding upon both the Executive and Invacare, and the Executive and Invacare shall each provide the Accounting Firm with such information as it may reasonably request in order to calculate any such amount; provided further, that in no event shall any such additional amount or comparable benefit be provided to the Executive prior to or materially after the time the original payment or benefit would have been provided.

2.11 Later Time for Payment on Account of Termination. Notwithstanding the preceding provisions of Sections 1 and 2, solely to the extent required to comply with applicable provisions of Internal Revenue Code Section 409A (“Section 409A”) with respect to any amounts or benefits not exempt from 409A, payments made pursuant to Sections 1 (ii), 2.1, 2.2, 2.3, 2.4, 2.5 and 2.6 on account of the Executive’s termination of employment shall: (a) not commence until the date that is six months and a day following the Termination Date; and (b) upon commencement, include along with the initial payment an amount sufficient to reimburse the Executive for reasonable lost interest at a rate of 6% per annum, compounded annually, incurred during the period commencing on the date which is 60 days after the Termination Date through the date of payment by Invacare. In the event that Invacare, in the exercise of its reasonable discretion, determines that a delay in payments under this Section 2.11 is required in order to comply with Code Section 409A, Invacare shall, within two business days after the Termination Date, deposit the entire amount due and to become due under Sections 1(ii) and 2, in the trust established by Invacare with Wachovia Bank of North Carolina, N.A. pursuant to a Benefit Security Trust Agreement dated August 21, 1996, as such agreement may be amended from time to time in accordance with its terms. Payments to the Executive from such trust shall thereafter be made in accordance with this Section 2.11; provided, however, that Invacare shall remain fully obligated to the Executive for the full and complete satisfaction of its liabilities and obligations under this Agreement.

3. Excess Parachute Payment Gross-Up; Section 409A Gross-Up.

3.1 Potential for Excess Parachute Payments and for Section 409A Liability. Invacare and the Executive acknowledge that, upon or following a Change of Control, one or more payments or distributions or acceleration or alteration of rights or benefits to be made by Invacare to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, under some other plan, agreement, or arrangement, or otherwise) (a “Payment”) may be determined to be an “excess parachute payment” that is not deductible by Invacare for Federal income tax purposes and with respect to which the Executive will be subject to an excise tax, penalties or interest because of Sections 280G and 4999, respectively, of the Internal Revenue Code. Invacare and the Executive also acknowledge that, upon or following a Change of Control, one or more Payments may be determined to give rise to liability on the part of the Executive for accelerated or additional tax (or interest or penalties) under Section 409A of the Internal Revenue Code. If benefits become payable to the Executive under Sections 1 or 2 of this Agreement, the Accounting Firm, which shall make all determinations required to be made under this Section 3, shall determine whether any Payment would be an excess parachute payment and whether any Payment would give rise to Section 409A liability on the part of the Executive. The Accounting Firm shall communicate its determination, together with detailed supporting calculations, to Invacare and to the Executive within 30 days after the Termination Date or such earlier time as is requested by Invacare. Invacare and the Executive shall cooperate with each other and the Accounting Firm and shall provide necessary information so that the Accounting Firm may make all such

determinations. Invacare shall pay all of the fees of the Accounting Firm for services performed by the Accounting Firm as contemplated in this Section 3.

3.2 Excess Parachute Payment Gross-Up. If any Payment gives rise, directly or indirectly, to liability on the part of the Executive for excise tax, penalties or interest as a result of Section 4999 of the Internal Revenue Code, Invacare shall make additional cash payments to the Executive, from time to time and at the same time, as any Payment constituting an excess parachute payment is paid or provided to the Executive (or as soon thereafter as is practicable and, in any event, no later than March 15 of the calendar year which follows the calendar year in which the excess parachute payment was made or provided to the Executive), in such amounts as are necessary to put the Executive in the same position, after payment of all federal, state, and local taxes (whether income taxes, excise taxes under Section 4999 of the Internal Revenue Code or otherwise, or other taxes) and payment of penalties and interest arising as a result of Section 4999 of the Internal Revenue Code, as the Executive would have been in after payment of all federal, state, and local income taxes if the Payments had not given rise to an excise tax, penalties or interest as a result of Section 4999 of the Internal Revenue Code.

3.3 Section 409A Gross-Up. If any Payment gives rise, directly or indirectly, to liability on the part of the Executive for tax, penalties or interest as a result of 409A, Invacare shall make additional cash payments to the Executive, from time to time and at the same time, as any Payment giving rise to such liability is paid or provided to the Executive (or as soon thereafter as is practicable and, in any event, no later than March 15 of the calendar year which follows the calendar year in which the Payment giving rise to Section 409A liability was made or provided to the Executive), in such amounts as are necessary to put the Executive in the same position, after payment of all federal, state, and local taxes (whether income taxes, excise taxes under 409A or otherwise, or other taxes) and interest and penalties, as the Executive would have been in after payment of all federal, state, and local income taxes if the Payments had not given rise to excise taxes, penalties or interest under 409A; provided, however, that in no event shall Invacare be required to make additional cash payments under this Section 3.3 if the Accounting Firm determines that doing so would result in a windfall to the Executive due to duplicative gross-up provisions in this Agreement or in any other binding arrangement.

4. Other Benefits.

4.1 Reimbursement of Certain Expenses After a Change of Control. Invacare shall pay, as incurred (in no event later than the end of the Executive’s taxable year following the year in which such expenses were incurred), all expenses incurred by the Executive at any time during the longer of 20 years or the Executive’s lifetime, including the reasonable fees of counsel engaged by the Executive, in respect of enforcing the Executive’s rights hereunder and/or defending any action brought to have this Agreement declared invalid or unenforceable.

4.2 Sick Leave Pay for Executive. If, after a Change of Control and prior to the Termination Date, the Executive is unable to perform services for Invacare for any period by reason of accidental bodily injury or sickness, Invacare will pay and provide to the Executive, as sick leave pay, all compensation and benefits to which the Executive would have been entitled had the Executive continued to be actively employed by Invacare through the earliest of the following dates (the “Sick Leave Period”): (a) the first date on which the Executive is again capable of performing services for Invacare consistent with past practice, or (b) the date on which the Executive’s employment is terminated by Invacare by reason of Disability or otherwise, or (c) the date on which Invacare has paid and provided 29 months of compensation and benefits to the Executive during the period of the Executive’s incapacity, or (d) the date of the Executive’s death. Notwithstanding the foregoing, the Sick Leave Period may not be greater than 6 months unless the Executive’s injury or sickness can be expected to result in death or can be expected to last for a continuous period of not less than 6 months, and such injury or sickness renders the Executive unable to perform the duties of his position of employment or any substantially similar position of employment. The foregoing sick leave pay is intended to compensate Executive for compensation and benefits that he otherwise would have earned during the Sick Leave Period, and shall not reduce or otherwise have any effect on Executive’s rights to receive any other compensation, benefits or other Payments hereunder for any other reason, including as may be owed arising out of cessation of Executive’s employment.

5. No Set-Off; No Obligation to Seek Other Employment or to Otherwise Mitigate Damages; No Effect Upon Other Plans. Invacare’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense, or other claim whatsoever which Invacare may have against the Executive. The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise. The amount of any payment provided for under this Agreement shall not be reduced by any compensation or benefits earned by the Executive as the result of employment by another employer or otherwise after the termination of the Executive’s employment.

6. Taxes; Withholding of Taxes. Without limiting the right of Invacare to withhold taxes pursuant to this Section 6, the Executive shall be responsible (after taking into account all payments to be made by Invacare to or on behalf of the Executive

under Sections 1 or 2 hereof, and any gross-ups required under Section 3 hereof) for all income, excise, and other taxes (federal, state, city, or other) imposed on or incurred by the Executive as a result of receiving the payments provided in this Agreement, including, without limitation, the payments provided under Sections 1 or 2 of this Agreement. Subject to Section 3.1 hereof, Invacare may withhold from any amounts payable under this Agreement all federal, state, city, or other taxes as Invacare shall determine to be required pursuant to any law or government regulation or ruling. Without limiting the generality of the foregoing, Invacare may withhold from any amount payable under this Agreement amounts sufficient to satisfy any withholding requirements that may arise out of any benefit provided to or in respect of the Executive by Invacare under Section 2 of this Agreement.

7. Term of this Agreement. This Agreement shall be effective as of the date first above written and shall thereafter apply to any Change of Control occurring on or before December 31, 2009 or during any succeeding applicable term, and on December 31, 2009 and on December 31 of each succeeding year thereafter (a “Renewal Date”), the term of this Agreement, if not previously terminated, shall be automatically extended for an additional year unless either party has given notice to the other, at least one year in advance of that Renewal Date, that the Agreement shall not apply to any Change of Control occurring after that Renewal Date.

7.1 Termination of Agreement Upon Termination of Employment Before a Change of Control. This Agreement shall automatically terminate on the first date occurring before a Change of Control on which the Executive is no longer employed by Invacare, except that, for purposes of this Agreement, any involuntary termination of employment of the Executive or any termination by the Executive for Good Reason that is effected within 6 months before a Change in Control and primarily in contemplation of a Change of Control that actually occurs after the date of the termination shall be deemed to be a termination of the Executive’s employment as of the date immediately after that Change of Control, and in such case, the Change in Control shall constitute the date as of which the Executive’s right to payment hereunder shall become vested.

7.2 No Termination of Agreement During Three Year Period Beginning on Date of a Change of Control. After a Change of Control, this Agreement may not be terminated. However, if the Executive’s employment with Invacare continues for more than three years following the occurrence of a Change of Control, then, for all purposes of this Agreement other than Sections 1 and 4.1, that particular Change of Control shall thereafter be treated for purposes of this Agreement as if it never occurred; provided, however, that the foregoing shall not deprive Executive of any rights, benefits or payments (or allow Invacare to avoid any obligations) that were or became vested under this or any other agreement, plan or arrangement.

8. Internal Revenue Code Section 409A. This Agreement is intended to meet the requirements for exemption from (or to the extent not exempt, compliance with) Section 409A (including without limitation, the exemptions for short-term deferrals and separation pay arrangements), and this Agreement shall be so construed and administered. Notwithstanding anything in this Agreement to the contrary, at any time prior to a Change in Control, Invacare may unilaterally amend this Agreement, retroactively or prospectively, while maintaining the spirit of this Agreement and after consultation with Executive, to secure exemption from (or, to the extent not exempt, to ensure compliance with), the requirements of 409A and to avoid adverse tax consequences to Executive thereunder. Furthermore, at any time prior to a Change in Control, the Executive agrees to execute such further instruments and take such further action as may be necessary to comply with 409A or to avoid adverse tax consequences to Executive thereunder.

9. Miscellaneous.

9.1 Successor to Invacare. In the event that

(a)	Invacare transfers all or substantially all of its assets to another corporation or entity; or
(b)	(i) Invacare consolidates with or merges with or into any other corporation or entity and
	(ii) either (x) Invacare is not the surviving corporation or entity of such consolidation or merger or (y) Invacare is the surviving corporation or entity of such consolidation or merger but the shareholders of Invacare immediately prior to the consummation of such merger or consolidation do not own securities representing a majority of the outstanding voting power of such surviving corporation or entity or its parent after the consummation of the consolidation or merger,

then, in any of such events, the entity surviving such consolidation or merger and each Affiliate thereof having an individual net worth of $5 million or more shall assume joint and several liability for this Agreement in a signed writing and deliver a copy thereof to the Executive. Upon such assumption, the successor corporation or entity and each Affiliate thereof having an individual net worth of $5 million or more shall become obligated to perform the obligations of Invacare under this Agreement and the term “Invacare” as used in this Agreement shall be deemed to refer to such successor entity and such Affiliates jointly and severally. Any failure of Invacare to obtain the written agreement of such successor or surviving entity (including a parent successor entity) and the required Affiliates to assume this Agreement before the effectiveness of any such succession shall be deemed to be a material breach of this Agreement.

9.2 Notices. Notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person or by confirmed facsimile transmission (to the Senior Vice President of Human Resources of Invacare in the case of notices to Invacare and to the Executive in the case of notices to the Executive) or mailed by United States registered mail, return receipt requested, postage prepaid, addressed as follows:

If to Invacare:

Invacare Corporation

One Invacare Way

Elyria, OH 44035

Attention: Senior Vice President of Human Resources

If to the Executive:

or such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

9.3 Employment Rights. Nothing expressed or implied in this Agreement shall create any right or duty on the part of Invacare or the Executive to have the Executive continue as an officer of Invacare or an Affiliate of Invacare or to remain in the employment of Invacare or an Affiliate of Invacare.

9.4 Administration. Invacare shall be responsible for the general administration of this Agreement and for making payments under this Agreement. All fees and expenses billed by the Accounting Firm for services contemplated under this Agreement shall be the responsibility of Invacare.

9.5 Source of Payments. Any payment specified in this Agreement to be made by Invacare may be made directly by Invacare solely from its general assets, and the Executive shall have the rights of an unsecured general creditor of Invacare with respect thereto.

9.6 Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement which shall remain in full force and effect.

9.7 Modification; Waiver. No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in a writing signed by the Executive and Invacare. No waiver by either party hereto at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or at any prior or subsequent time.

9.8 Entire Agreement; Supercession. Except as otherwise specifically provided herein, this Agreement, including its attachments, contains the entire agreement between the parties concerning the subject matter hereof and incorporates and supersedes any and all prior discussions or agreements, written or oral, the parties may have had with respect to such subject matter, including without limitation that certain change of control agreement previously entered into by Invacare and the Executive, which is hereby amended and restated in its entirety; provided, however, that except as expressly provided otherwise herein, nothing in this Agreement shall affect any rights the Executive or anyone claiming through the Executive may have in respect of either (a) any Employee Benefit Plan which provides benefits to or in respect of the Executive or (b) any other agreements the Executive may have with Invacare or an Affiliate of Invacare, including without limitation any employment or severance protection agreements the Executive may have with Invacare or an Affiliate of Invacare.

9.9 Post-Mortem Payments; Designation of Beneficiary. As indicated in Section 2.9, in the event that, following the termination of the Executive’s employment with Invacare, the Executive is entitled to receive any payments pursuant to this

Agreement and the Executive dies, such payments shall be made to the Executive’s Beneficiary designated hereunder. At any time after the execution of this Agreement, the Executive may prepare, execute, and file with the Secretary of Invacare a copy of the Designation of Beneficiary form attached to this Agreement as Exhibit A. The Executive shall thereafter be free to amend, alter or change such form; provided, however, that any such amendment, alteration or change shall be made by filing a new Designation of Beneficiary form with the Secretary or the Senior Vice President of Human Resources of Invacare. In the event the Executive fails to designate a beneficiary, following the death of the Executive, all payments of the amounts specified by this Agreement which would have been paid to the Executive’s designated beneficiary pursuant to this Agreement shall instead be paid to the Executive’s spouse, if any, if she survives the Executive or, if there is no spouse or she does not survive the Executive, to the Executive’s estate.

9.10 Service with Affiliates. Any services the Executive performs for an Affiliate of Invacare shall be deemed performed for Invacare. Any transfer of the Executive’s employment from Invacare to an Affiliate of Invacare, or from an Affiliate of Invacare to Invacare, or from an Affiliate of Invacare to another Affiliate of Invacare shall be deemed not to constitute a termination of the Executive’s employment with Invacare.

9.11 Time Periods. Any action required to be taken under this Agreement within a certain number of days shall be taken within that number of calendar days; provided, however, that if the last day for taking such action falls on a weekend or a holiday, the period during which such action may be taken shall be automatically extended to the next business day. If the day for taking any action under this Agreement falls on a weekend or a holiday, such action may be taken on the next business day. Notwithstanding the foregoing, no such extension shall permit an action to be taken at a time that would cause an exempt payment to become subject to Section 409A or to cause a payment that would otherwise be compliant with Section 409A to cease to be so compliant.

9.12 Incorporation by Reference. The incorporation herein of any terms by reference to another document shall not be affected by the termination of any agreement set forth in such other document or the invalidity of any provisions thereof.

9.13 Binding Effect; Construction of Agreement. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representatives, executors, administrators, successors, heirs, and designees (including, without limitation, the Beneficiary). Upon the Executive’s death, for purposes of this Agreement, the term “Executive” shall be deemed to include, as applicable, any person (including, without limitation, the Beneficiary) who is entitled to benefits under this Agreement following the Executive’s death.

9.14 Governing Law. All questions concerning the construction, validity and interpretation of this Agreement and the exhibits hereto will be governed by and construed in accordance with the internal laws of the State of Ohio, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Ohio or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Ohio.

9.15 Representations and Warranties of Invacare. Invacare represents and warrants to the Executive that (i) Invacare is a corporation duly organized, validly existing, and in good standing under the laws of the State of Ohio; (ii) Invacare has the power and authority to enter into and carry out this Agreement, and there exists no contractual or other restriction upon its so doing; (iii) Invacare has taken such corporate action as is necessary or appropriate to enable it to enter into and perform its obligations under this Agreement; and (iv) this Agreement constitutes the legal, valid and binding obligation of Invacare, enforceable against Invacare in accordance with its terms.

9.16 Gender. The use of the feminine, masculine or neuter pronoun shall not be restrictive as to gender and shall be interpreted in all cases as the context may require.

10. Definitions.

10.1 Accounting Firm. The term “Accounting Firm” means the independent auditors of Invacare for the fiscal year preceding the year in which the Change of Control occurred and such firm’s successor or successors; provided, however, if such firm is unable or unwilling to serve and perform in the capacity contemplated by this Agreement, Invacare shall select another national accounting firm of recognized standing to serve and perform in that capacity under this Agreement, except that such other accounting firm shall not be the then independent auditors for Invacare or any of its Affiliates.

10.2 Affiliate. The term “Affiliate” shall mean, with respect to any person or entity, any other person or entity which controls, is controlled by, or is under common control with such person or entity within the meaning of Section 414(b) or (c) of the Internal Revenue Code.

10.3 Annual Base Salary. “Annual Base Salary” means the highest annual rate of base salary payable by Invacare to the Executive at any time between the Effective Date and the Termination Date.

10.4 Beneficiary. “Beneficiary” means the person designated by the Executive as his beneficiary pursuant to Section 9.9 or such other person as determined pursuant to Section 9.9 hereof.

10.5 Cause. The employment of the Executive by Invacare shall have been terminated for “Cause” if, after a Change of Control and prior to the termination of employment, any of the following has occurred:

(a) the Executive shall have been convicted of a felony,

(b) the Executive commits an act or series of acts of dishonesty in the course of the Executive’s employment which are materially inimical to the best interests of Invacare and which constitutes the commission of a felony, all as determined by the vote of three-fourths of all of the members of the Board of Directors of Invacare (other than the Executive, if the Executive is a Director of Invacare), which determination is confirmed by a panel of three arbitrators appointed and acting in accordance with the rules of the American Arbitration Association for the purpose of reviewing that determination,

(c) any federal or state regulatory agency with jurisdiction over Invacare has issued a final order, with no further right of appeal, that has the effect of suspending, removing, or barring the Executive from continuing his service as an officer or director of Invacare, or

(d) after being notified in writing by the Board of Directors of Invacare to cease any particular Competitive Activity, the Executive shall intentionally continue to engage in such Competitive Activity more than thirty (30) days after receipt of such notice while the Executive remains in the employ of Invacare.

10.6 Change of Control. A “Change of Control” shall be deemed to have occurred at the first time on which, after the Effective Date:

(a) There is a report filed on Schedule 13D or Schedule 14D-1 (or any successor schedule, form, or report), each as adopted under the Securities Exchange Act of 1934, as amended, disclosing the acquisition, in a transaction or series of transactions, by any person (as the term “person” is used in Section 13(d) and Section 14(d)(2) of the Securities Exchange Act of 1934, as amended), other than (1) A. Malachi Mixon and/or any Affiliate of A. Malachi Mixon, (2) Invacare or any of its subsidiaries, (3) any employee benefit plan or employee stock ownership plan or related trust of Invacare or any of its subsidiaries, or (4) any person or entity organized, appointed or established by Invacare or any of its subisidiaries for or pursuant to the terms of any such plan or trust, of such number of shares of Invacare as entitles that person to exercise 30% or more of the voting power of Invacare in the election of Directors; or

(b) During any period of 24 consecutive calendar months, individuals who at the beginning of such period constitute the Directors of Invacare cease for any reason to constitute at least a majority of the Directors of Invacare unless the election of each new Director of Invacare (over such period) was approved or recommended by the vote of at least two-thirds of the Directors of Invacare then still in office who were Directors of Invacare at the beginning of the period; or

(c) There is a merger, consolidation, combination (as defined in Section 1701.01(Q), Ohio Revised Code), majority share acquisition (as defined in Section 1701.01(R), Ohio Revised Code), or control share acquisition (as defined in Section 1701.01(Z)(1), Ohio Revised Code, or in Invacare’s Articles of Incorporation) involving Invacare and, as a result of which, the holders of shares of Invacare prior to the transaction become, by reason of the transaction, the holders of such number of shares of the surviving or acquiring corporation or other entity as entitles them to exercise less than fifty percent (50%) of the voting power of the surviving or acquiring corporation or other entity in the election of Directors; or

(d) There is a sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of Invacare, but only if the transferee of the assets in such transaction is not a subsidiary of Invacare; or

(e) The shareholders of Invacare approve any plan or proposal for the liquidation or dissolution of Invacare, but only if the transferee of the assets of Invacare in such liquidation or dissolution is not a subsidiary of Invacare.

If an event described in any of Clauses (a), (b), (c), (d), and (e) occurs, a Change of Control shall be deemed to have occurred for all purposes of this Agreement and, except as provided in the last sentence of Section 7.2, that Change of Control shall be irrevocable.

10.7 Competitive Activity. The Executive shall be deemed to have engaged in “Competitive Activity” if the Executive engages in any business or business activity (other than as a director, officer, or employee of Invacare) in which Invacare engages as of the time of the notice provided in Section 10.5(d).

10.8 Demotion or Removal. The Executive shall be deemed to have been subjected to “Demotion or Removal” if, during the three year period commencing on the date of a Change of Control, other than by Voluntary Resignation or with the Executive’s written consent, the Executive ceases to hold the highest position held by him at any time during the one year period ending on the date of the Change of Control with all of the duties, authority, and responsibilities of that office as in effect at any time during the one year period ending on the date of the Change of Control.

10.9 Disability. For purposes of this Agreement, the Executive’s employment will have been terminated by Invacare by reason of “Disability” of the Executive only if (a) as a result of accidental bodily injury or sickness, the Executive has been unable to perform his normal duties for Invacare for a period of 180 consecutive days, and (b) the Executive begins to receive payments under the executive long term disability plan or its successor plan(s) sponsored by Invacare not later than 30 days after the Termination Date.

10.10 Employee Benefit Plan. “Employee Benefit Plan” means any plan or arrangement defined as such in 29 U.S.C. §1002 which provides benefits to the employees of Invacare or its Affiliates.

10.11 Good Reason. The Executive shall have “Good Reason” to terminate his employment under this Agreement if, at any time after a Change of Control has occurred and before the third anniversary of that Change of Control, one or more of the events listed in (a) through (f) of this Section 10.11 occurs and, based on that event, the Executive gives notice of such event (and of his intention to terminate his employment if Invacare does not cure such condition(s)) on a date that is both (i) within 90 days of the occurrence of that event and (ii) not later than the third anniversary of that Change of Control, and Invacare does not cure the condition(s) constituting the event within 30 days after such notice:

(a) The Executive is subjected to a Demotion or Removal involving a material diminution in the Executive’s authority, duties, or responsibilities or in those of the individual to whom the Executive is required to report; or

(b) The Executive’s Annual Base Salary is materially reduced (which for this purposes shall be deemed to occur if the reduction is five percent (5%) or greater); or

(c) The Executive’s opportunity for incentive compensation is materially reduced from the level of his opportunity for incentive compensation as in effect immediately before the date of the Change of Control or from time to time thereafter (which for this purposes shall be deemed to occur if the reduction is equivalent to a five percent (5%) or greater reduction in Executive’s Annual Base Salary); or

(d) The Executive is excluded (other than by his volitional action(s)) from full participation in any benefit plan or arrangement maintained for senior executives of Invacare generally, and such exclusion materially reduces the benefits provided to the Executive; or

(e) The Executive’s principal place of employment for Invacare is relocated a material distance (which for this purpose shall be deemed to be more than 35 miles) from One Invacare Way, Elyria, Ohio; or

(f) Any other action or inaction that constitutes a material breach by Invacare of this Agreement or any other agreement under which the Executive provides his services to Invacare.

10.12 Internal Revenue Code. A reference to any provision of the Internal Revenue Code means that provision of the Internal Revenue Code of 1986, as amended, and any successor provision, and any applicable regulations promulgated thereunder.

10.13 Target Bonus. “Target Bonus” means the Executive’s Annual Base Salary multiplied by the higher of (a) the target bonus percentage in effect for the Executive under Invacare’s bonus plan during the fiscal year immediately preceding the fiscal year in which the Change of Control occurs, or (b) the target bonus percentage in effect for the Executive under Invacare’s bonus plan during the fiscal year in which the Change of Control occurs.

10.14 Termination Date. “Termination Date” means the date on which (and related terms, such as “termination of employment” and “terminate employment” mean a situation in which) the Executive incurs a separation from service with Invacare and all of its Affiliates within the meaning of Section 409A. A separation from service under Section 409A includes a

quit, discharge, or retirement, or a leave of absence (including military leave, sick leave, or other bona fide leave of absence such as temporary employment by the government, at the point that such leave exceeds the greater of six months, the period for which the Participant’s right to reemployment is provided either by statute or by contract, or in the case of sick leave, 29 months, if the Executive’s injury or sickness can be expected to result in death or can be expected to last for a continuous period of not less than 6 months, and such injury or sickness renders the Executive unable to perform the duties of his position of employment or any substantially similar position of employment). A separation from service under Section 409A also occurs upon a permanent decrease in service to a level that is no more than twenty percent (20%) of its prior level. For this purpose, whether a separation from service has occurred is determined based on whether it is reasonably anticipated that no further services will be performed by the Executive after a certain date or that the level of bona fide services the Executive will perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services if the Executive has been providing services less than 36 months).

10.15 Voluntary Resignation. A “Voluntary Resignation” shall have occurred if the Executive terminates his employment with Invacare by voluntarily resigning at his own instance without having been requested to so resign by Invacare, except that any resignation by the Executive will not be deemed to be a Voluntary Resignation if, at the time of that resignation, the Executive had Good Reason to resign.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

INVACARE CORPORATION

(“Invacare”)

By  

(the “Executive”) 

Exhibit A

DESIGNATION OF BENEFICIARY

To: Invacare Corporation Attn: Secretary

I, the undersigned, , am a party to a certain Agreement with Invacare Corporation, an Ohio corporation, dated as of December 31, 2008 (the “Agreement”). Pursuant to the agreement, I have the right to designate a person or persons to receive, in the event of my death, any amounts that might become payable to me under the Agreement. I hereby exercise this right and direct that, upon my death, any amounts payable to me under the Agreement shall be distributed in the proportions set forth below to the following person(s) if he, she or they survive me, namely:

Beneficiary Relationship Percent Share

If none of the above-designated person (s) survives me, any amounts payable under the Agreement shall be distributed to .

     Any and all previous designations of beneficiary made by me are hereby revoked, and I hereby reserve the right to revoke this designation of beneficiary.

Date:
	(Signature)
	(Print name)

Schedule of Change of Control Agreements

Name	Position	Date of Agreement
Robert K. Gudbranson	Senior Vice President, Chief Financial Officer and Treasurer	December 31, 2008
Patricia A. Stumpp	Senior Vice President - Human Resources	September 1, 2009
Anthony C. LaPlaca	Senior Vice President, General Counsel and Secretary	December 31, 2008

EX-10.E

Exhibit 10(e)

INVACARE CORPORATION

FORM OF INDEMNITY AGREEMENT

THIS AGREEMENT is made as of the day of , 20, by and between INVACARE CORPORATION, an Ohio corporation (the “Corporation”), and (“Indemnitee”), a Director and an Officer of the Corporation.

WHEREAS, it is essential to the Corporation to retain and attract as Directors and/or Officers the most capable persons available, such as Indemnitee; and

WHEREAS, the prevalence of corporate litigation subjects directors and officers to expensive litigation risks, and it is the policy of the Corporation to indemnify its Directors and/or Officers so as to provide them with the maximum possible protection permitted by law; and

WHEREAS, in addition, because the statutory indemnification provisions of the Ohio Revised Code expressly provide that they are non-exclusive, it is the policy of the Corporation to indemnify Directors and Officers who, on behalf of the Corporation, have entered into settlements of derivative suits or have paid judgments, fines or penalties therefor, provided they have not breached the applicable statutory standard of conduct; and

WHEREAS, Indemnitee does not regard the protection available under the Corporation's Code of Regulations and insurance, if any, as adequate in the present circumstances, and considers it necessary and desirable to his or her service as a Director and/or Officer to have maximum protection, and the Corporation desires to provide such protection to induce Indemnitee to serve in such capacity; and

WHEREAS, the Ohio Revised Code Section 1701.13(E) and the Corporation's Code of Regulations Article V(a) provide that indemnification of Directors and Officers of the Corporation may be authorized by agreement, and thereby contemplates that contracts of this nature may be entered into between the Corporation and Indemnitee with respect to indemnification of Indemnitee as a Director or an Officer of the Corporation.

NOW, THEREFORE, for good and valuable consideration, the sufficiency and adequacy of which is hereby acknowledged, the Corporation and Indemnitee do hereby agree as follows:

1. Agreement to Serve. Indemnitee agrees to serve or continue to serve as a Director and/or Officer of the Corporation for so long as he or she is duly elected or appointed or until such time as he or she tenders his or her resignation in writing or is otherwise terminated or removed from office.

The Corporation expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on the Corporation hereby in order to induce Indemnitee to continue to serve as a Director and/or Officer of the Corporation, and acknowledges that Indemnitee is relying upon this Agreement in continuing in such capacity.

2. Definitions. As used in this Agreement:

The term “Proceeding” shall include any threatened, pending, or completed action, suit or proceeding, whether brought by or in the right of the Corporation or otherwise and whether of a civil, criminal, administrative or investigative nature, in which Indemnitee may be or may have been involved as a party or otherwise, by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or any subsidiary of the Corporation, by reason of any action taken by Indemnitee or of any inaction on his or her part while acting as such a Director and/or Officer, or by reason of the fact that he or she is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, employee or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise; in each case whether or not he or she is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification or reimbursement can be provided under this Agreement.

The term “Expenses” shall include, without limitation, expenses of investigations, judicial or administrative proceedings or appeals, attorneys' fees and disbursements and any expenses of establishing a right to indemnification under Paragraph 9 of this Agreement, but shall not include the amount of judgments, fines or penalties against or settlements paid by Indemnitee.

References to “other enterprise” shall include, without limitation, employee benefit plans; references to “fines” shall include, without limitation, any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Corporation” shall include, without limitation, any service as a Director or Officer of the Corporation which imposes duties on, or involves services by, such Director or Officer with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he or she reasonably believed to be in the best interests of

the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Corporation” as referred to in this Agreement.

3. Indemnity in Third-Party Proceedings. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 3 if Indemnitee is a party to or threatened to be made a party to or otherwise involved in any Proceeding (other than a Proceeding by or in the right of the Corporation to procure a judgment in its favor) by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or a subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, employee or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise, against all Expenses, judgments, settlements, fines and penalties, actually and reasonably incurred by Indemnitee in connection with the defense or settlement of such Proceeding, but only if Indemnitee acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation and, in the case of a criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful. The termination of any such Proceeding by judgment, order of court, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation, and with respect to any criminal proceeding, that such person had reasonable cause to believe that his or her conduct was unlawful.

4. Indemnity for Expenses in Proceedings by or in the Right of the Corporation. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 4 if Indemnitee is a party to or threatened to be made a party to any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or a subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, employee or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise, against all Expenses actually and reasonably incurred by Indemnitee in connection with the defense of such Proceeding, but only if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation, except that no indemnification for Expenses shall be made under this Paragraph 4 in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged by a court order or judgment, by a court of competent jurisdiction, to be liable to the Corporation, unless and only to the extent that any court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses as such court shall deem proper.

5. Indemnity for Amounts Paid in Settlement in Proceedings by or in the Right of the Corporation. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 5 if Indemnitee is a party to or threatened to be made a party to any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or a subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, officer, employee, or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise, against all amounts actually and reasonably paid in settlement by Indemnitee in connection with any such Proceeding, but only if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation.

6. Indemnity for Amounts Paid for in Judgments in Proceedings by or in the Right of the Corporation. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 6 if Indemnitee is a party to or threatened to be made a party to any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or a subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, officer, employee, or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise, against all judgments, fines and penalties actually and reasonably incurred by Indemnitee in connection with any such Proceeding, but only if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation.

7. Indemnification of Expenses of Successful Party. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding or in defense of any claim, issue or matter therein, including dismissal without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection therewith.

8. Advances of Expenses. Any Expenses incurred by or on behalf of Indemnitee pursuant to Paragraphs 3 or 4 in any Proceeding shall be paid by the Corporation in advance upon the written request of Indemnitee if Indemnitee shall undertake to (a) repay such amount to the extent that it is ultimately determined by clear and convincing evidence in a court that Indemnitee is not entitled to indemnification hereunder, and (b) reasonably cooperate with the Corporation concerning the action, suit or

proceeding giving rise to the Expenses. Any advances to be made under this Paragraph 8 shall be paid by the Corporation to Indemnitee within twenty (20) days following delivery of a written request therefor by Indemnitee to the Corporation.

9. Procedure. Any indemnification and advances provided for in Paragraph 3, 4, 5, 6, 7 and 8 shall be made no later than twenty (20) days after receipt of the written request of Indemnitee. If a claim under this Agreement, under any statute, or under any provision of the Corporation's Code of Regulations or Articles of Incorporation providing for indemnification, is not paid in full by the Corporation within twenty (20) days after a written request for payment thereof has been first received by the Corporation, Indemnitee may, but need not, at any time thereafter bring an action against the Corporation to recover the unpaid amount of the claim and, subject to the other provisions of this Agreement, Indemnitee also shall be entitled to be paid for the Expenses of bringing such action. It shall be a defense to any such action (other than an action brought to enforce a claim for Expenses incurred in connection with any action, suit or proceeding in advance of its final disposition) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Corporation to indemnify Indemnitee for the amount claimed, but the burden of proving such defense shall be on the Corporation and Indemnitee shall be entitled to receive advance payments of expenses pursuant to Paragraph 8 hereof unless and until such defense may be finally adjudicated by court order or judgment from which no further right of appeal exists. It is the parties' intention that if the Corporation contests Indemnitee's right to indemnification, the question of Indemnitee's right to indemnification shall be for the court to decide. There shall exist in such action a rebuttable presumption that Indemnitee has met the applicable standard(s) of conduct and is therefore entitled to indemnification pursuant to this Agreement. Neither the failure of the Corporation (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel or its shareholders) to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct as may be required by applicable law, nor any actual determination by the Corporation (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its shareholders) that Indemnitee has not met such applicable standard of conduct, shall (a) constitute a defense to such action, (b) create a presumption that Indemnitee has or has not met the applicable standard of conduct, or (c) otherwise alter the presumption in favor of Indemnitee referred to in the preceding sentence.

10. Allowance for Compliance with SEC Requirements. Indemnitee acknowledges that the Securities and Exchange Commission (“SEC”) has expressed the opinion that indemnification of directors and officers from liabilities under the Securities Act of 1933, as amended (the “Act”), is against public policy as expressed in the Act and is, therefore, unenforceable. Indemnitee hereby acknowledges and agrees that it will not be a breach of this Agreement for the Corporation to undertake with the SEC in connection with the registration for sale of any capital stock or other securities of the Corporation from time to time that, in the event a claim for indemnification against such liabilities (other than the payment by the Corporation of expenses incurred or paid by a director or officer of the Corporation in the successful defense of any action, suit or proceeding) is asserted in connection with such capital stock or other securities being registered, the Corporation will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of competent jurisdiction on the question of whether or not such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Indemnitee further agrees that such submission to a court of competent jurisdiction shall not be a breach of this Agreement.

11. Indemnification Hereunder Not Exclusive. The indemnification provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under the Articles of Incorporation or the Code of Regulations of the Corporation, any agreement, any vote of shareholders or disinterested directors, the Ohio General Corporation Laws, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office.

The indemnification under this Agreement for any action taken or not taken while serving in an indemnified capacity shall continue as to Indemnitee even though he or she may have ceased to be a Director and/or Officer and shall inure to the benefit of the heirs, executors and personal representatives of Indemnitee.

12. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Corporation for some claims, issues or matters, but not as to other claims, issues or matters, or for some or a portion of the Expenses, judgments, fines or penalties actually and reasonably incurred by Indemnitee or amounts actually and reasonably paid in settlement by Indemnitee in the investigation, defense, appeal or settlement of any Proceeding, but not for the total amount thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such claims, issues or matters or Expenses, judgments, fines, penalties or amounts paid in settlement to which Indemnitee is entitled.

13. No Rights of Continued Employment. Nothing contained in this Agreement is intended to create in Indemnitee any right to continued employment with the Corporation.

14. Reimbursement to Corporation by Indemnitee; Limitation on Amounts Paid by Corporation. To the extent Indemnitee has been indemnified by the Corporation hereunder and later receives payments from any insurance carrier covering the same

Expenses, judgments, fines, penalties or amounts paid in settlement so indemnified by the Corporation hereunder, Indemnitee shall immediately reimburse the Corporation hereunder for all such amounts received from the insurer.

Notwithstanding anything contained herein to the contrary, Indemnitee shall not be entitled to recover amounts under this Agreement which, when added to the amount of indemnification payments made to, or on behalf of, Indemnitee, under the Articles of Incorporation or Code of Regulations of the Corporation, in the aggregate exceed the Expenses, judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred by Indemnitee (“Excess Amounts”). To the extent the Corporation has paid Excess Amounts to Indemnitee, Indemnitee shall be obligated to immediately reimburse the Corporation for such Excess Amounts.

Notwithstanding anything contained herein to the contrary, the Corporation shall not be obligated under the terms of this Agreement to indemnify Indemnitee:

(a) or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to Proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise, but such indemnification or advancement of expenses may be provided by the Corporation in specific cases if the Board of Directors finds it appropriate;

(b) if it is proved by final judgment in a court of law or other final adjudication to have been based upon or attributable to the Indemnitee's in fact having gained any personal profit or advantage to which he or she was not legally entitled;

(c) for any expenses incurred by Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous;

(d) for a disgorgement of profits made from the purchase and sale by Indemnitee of securities pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of any state statutory law or common law; or

(e) for any Expenses, judgment, fine or penalty which the Corporation is prohibited by applicable law from paying as indemnity or for any other reason.

15. Scope. Notwithstanding any other provision of this Agreement, except Paragraph 14 hereof, the Corporation hereby agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Corporation's Code of Regulations or Articles of Incorporation, or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute or rule which expands the right of an Ohio corporation to indemnify a member of its board of directors or an officer, such change shall be deemed to be within the purview of the Indemnitee's rights and the Corporation's obligations under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of an Ohio corporation to indemnify a member of its board of directors or an officer, such change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties' rights and obligations hereunder.

16. Notice to Insurers. If, at the time of the receipt of a written request of Indemnitee pursuant to Paragraph 9 hereof, the Corporation has director and officer liability insurance in effect, the Corporation shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Corporation shall thereafter take all necessary or desirable action, using commercially reasonable efforts, to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

17. Continuation of Rights and Obligations. All rights and obligations of the Corporation and Indemnitee hereunder shall continue in full force and effect despite the subsequent amendment or modification of the Corporation's Articles of Incorporation or Code of Regulations, as such are in effect on the date hereof, and such rights and obligations shall not be affected by any such amendment or modification, any resolution of directors or shareholders of the Corporation, or by any other corporate action which conflicts with or purports to amend, modify, limit or eliminate any of the rights or obligations of the Corporation and/or Indemnitee hereunder.

18. Amendment and Modification. This Agreement may only be amended, modified or supplemented by the written agreement of the Corporation and Indemnitee.

19. Assignment. This Agreement shall not be assigned by the Corporation or Indemnitee without the prior written consent of the other party thereto, except that the Corporation may freely assign its rights and obligations under this Agreement to any subsidiary for whom Indemnitee is serving as a director and/or officer thereof; provided, however, that no permitted assignment shall release the assignor from its obligations hereunder. Subject to the foregoing, this Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, including,

without limitation, any successor to the Corporation by way of merger, consolidation and/or sale or disposition of all or substantially all of the capital stock of the Corporation.

20. Saving Clause. If this Agreement or any portion thereof shall be invalidated on any ground by any court of competent jurisdiction, the Corporation shall nevertheless indemnify Indemnitee as to Expenses, judgments, fines, penalties and amounts paid in settlement with respect to any Proceeding to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated or by any other applicable law.

21. Counterparts. This Agreement may be executed in two or more fully or partially executed counterparts each of which shall be deemed an original binding the signer thereof against the other signing parties, but all counterparts together shall constitute one and the same instrument. Executed signature pages may be removed from counterpart agreements and attached to one or more fully executed copies of this Agreement. The parties may execute and deliver this Agreement by facsimile signature, which shall have the same binding effect as an original ink signature.

22. Notice. Indemnitee shall, as a condition precedent to his or her right to be indemnified under this Agreement, give to the Corporation notice in writing as soon as practicable of any claim made against him or her for which indemnity will or could be sought under this Agreement. Notice to the Corporation shall be directed to the Corporation at its headquarters located at One Invacare Way, Elyria, Ohio 44035, Attention: Chairman (or such other address as the Corporation shall designate in writing to Indemnitee). Notice shall be deemed received three days after the date postmarked if sent by prepaid mail, properly addressed. In addition, Indemnitee shall give the Corporation such information and cooperation as it may reasonably require within Indemnitee's power.

23. Applicable Law. All matters with respect to this Agreement, including, without limitation, matters of validity, construction, effect and performance, shall be governed by and construed in accordance with the laws of the State of Ohio applicable to contracts made and to be performed therein between the residents thereof (regardless of the laws that might otherwise be applicable under principles of conflict of law).

IN WITNESS WHEREOF, the parties hereby have caused this Agreement to be duly executed and signed as of the day and year first above written.

INVACARE CORPORATION

THE “CORPORATION”

By

Its:

“INDEMNITEE”

Schedule of Indemnity Agreements with Current Directors and Executive Officers

Schedule of Agreements

Person	Position	Date of Agreement
A. Malachi Mixon, III	Former Chairman of the Board and Director	May 24, 2001
Gerald B. Blouch	Former President & Chief Executive Officer and Director	May 24, 2001
Louis F.J. Slangen	Former Senior Vice President - Corporate Marketing and Chief Product Officer	May 24, 2001
Robert K. Gudbranson	Senior Vice President, Chief Financial Officer and Treasurer	April 1, 2008
Anthony C. LaPlaca	Senior Vice President, General Counsel and Secretary	December 29, 2008
Patricia A. Stumpp	Senior Vice President - Human Resources	September 1, 2009
Carl E. Will	Former Senior Vice President - Global Commercial Operations	November 19, 2010
James C. Boland	Former Director	May 24, 2001
Michael F. Delaney	Director	May 24, 2001
Dan T. Moore, III	Former Director	May 24, 2001
William M. Weber	Former Director	May 24, 2001
Dr. C. Martin Harris	Director	January 24, 2003
Dale C. LaPorte	Director	February 12, 2009
Charles S. Robb	Former Director	March 1, 2010
James L. Jones	Director	December 1, 2010
Baiju R. Shah	Director	May 19, 2011
Ellen O. Tauscher	Former Director	Februrary 9, 2012
Michael J. Merriman	Director	May 14, 2014
Clifford D. Nastas	Director	May 14, 2015
Marc M. Gibeley	Director	November 20, 2015
Dean J. Childers	Senior Vice President and General Manager, North America	September 1, 2015
Gordon Sutherland	Senior Vice President and General Manager, Europe, Middle East & Africa	September 1, 2015

EX-10.P

Exhibit 10(p)

	Non-Employee Director Compensation
	December 2015
	Board Member Fees:
	Annual Retainer:	$	60,000
	Annual Equity Award:	$	90,000	(1)(2)
		$	150,000
	Lead Director Fee:	$	20,000
	Committee Chair Fees:
	Audit	$	15,000
	Compensation & Management Development	$	15,000
	Nominating & Governance	$	10,000
	Regulatory & Compliance	$	15,000
	Meeting Fees:	$	1,500	(3)
(1)	Target Value of restricted stock units on the date of annual grant
(2)	100% of the number of shares in annual grant is awarded to a new director who joins the Board between January and June, and 50% of the number of shares is awarded if he or she joins Board between July and December
(3)	For meetings attended in excess of 24 in a year

EX-10.T

Exhibit 10(t)

INVACARE CORPORATION CASH BALANCESUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Participation Agreement

Agreement to Participate

I,                                         , hereby agree, effective December 31, 2008, to continue my participation in the Invacare Corporation Cash Balance Supplemental Executive Retirement Plan, as amended and restated effective December 31, 2008 (the “Plan”). I agree to be bound by the terms of the Plan as so amended and restated (or as it may be amended in the future in accordance with its terms) and the terms of this Participation Agreement. In addition, I consent to the amendment and restatement of the Invacare Corporation Supplemental Executive Retirement Plan in the form of the Plan.

Amount of Benefits under the Plan

I understand that the Plan generally provides for credits to an account in my name as follows:

(i)	an initial credit equal to my accumulated benefit obligation under the Plan as of December 31, 2008, determined in accordance with the assumptions used in preparing the Company’s audited financial statements for 2008; plus
(ii)	annual credits made on or about December 31 of each calendar year beginning with 2009 equal to such amounts as may be determined from time to time by the Compensation Committee of Invacare Corporation (“Invacare” or the “Company”) for each year that I am both an Employee and a Participant. I understand that it is the present intention of the Committee (which intention, although not binding, shall not be changed except (x) in accordance with the terms of the Plan and (y) unless and until the Committee advises me in writing of any such change) that such annual credits will be in accordance with the column titled “Scheduled SERP Contribution” in the chart attached as Exhibit A to this Participation Agreement and will be provided for the number of years indicated in such Exhibit (such credits to be ratably reduced in any year in which I am not an Employee and Participant for the full year); plus
(iii)	an interest credit, which unless and until changed by the Committee in accordance with the terms of the Plan, will be computed in the manner set forth in the Plan and at the rate of six percent (6%), compounded annually; plus
(iv)	the possibility of special credits in the event of my death, termination of employment due to disability or termination of employment within the two (2) years following a change in control.

I have been given an estimate of my initial credit amount under (i), which is reflected as the Beginning Account Balance on Exhibit A and understand I will be advised of the final confirmed figure after the Company’s audited financial statements are finalized. I understand that each year’s Scheduled SERP Contribution will become final and binding as of December 31 of such year and that interest will be credited to my account quarterly throughout each year unless and until changed by the Committee.

I understand that (a) my Account will be charged periodically in an amount necessary to pay my share of the FICA tax on credits received from the Company and the income tax withholding associated with such FICA tax, (b) that the payment schedule contained on Exhibit A does not reflect the amounts to be charged for FICA and income tax withholding and (c) that my benefits will be taxable at ordinary income rates in effect at the time they are paid.

Election of Form of Payment

I understand that payment of my benefits under the Plan may be subject to satisfaction of a vesting requirement and will be made at the time and in the form provided under the Plan. If my benefit is payable due to my Retirement or Termination of Employment, I hereby elect to receive such benefits under the Plan in the form of:         

________a single lump sum paymentOR         

________annual installments over a period of          years [Note, cannot exceed 15 years].

Tax Impact

I understand that I (and not the Company) am responsible for tax or legal consequences to me or any of my Beneficiaries resulting from the terms or operation of this Plan. Payments to me from the Plan will be subject to applicable income and employment taxes and withholding, at or before the time paid.

I specifically acknowledge that:

(i)	as a result of the amendment and restatement of the Plan, I will incur FICA tax liabilities as of December 31, 2008 or, if later, the time I am vested in my rights under the Plan (the “vesting date”);
(ii)	as of my vesting date, the Company may use such portion of my Account as is necessary to satisfy such FICA obligations (and related income tax withholding arising from such deemed distribution); and
(iii)	thereafter, further FICA tax obligations (and related income tax withholding) will be incurred each year that I am an Employee and a Participant in the Plan and receive credits to my account in accordance with the terms of the Plan and this Participation Agreement. I understand the Company will use such portion of my Account as is necessary to satisfy such further FICA and income tax withholding obligations.

Acknowledgments

I acknowledge that (i) I have received a copy of the Plan and a Memorandum Regarding Principal Changes in SERP dated December 12, 2008 explaining the principal revisions to the Plan, (ii) I have reviewed those documents and have had the opportunity to discuss any questions with a representative of Invacare and have received satisfactory answers to those questions and (iii) I have been encouraged by the Company to discuss the terms of the amended Plan with my financial and legal advisors and have been provided sufficient time to do so.

I understand that while the Company presently intends to continue the Plan indefinitely, it specifically reserves the right to revise or amend the Plan at any time in accordance with its terms, including the right to reduce the amount of annual credits and the interest crediting rate at any time on a prospective basis, or to eliminate all future credits, including interest, at any time. Further, I understand that this Participation Agreement will be read and interpreted in accordance with and subject to the terms of the Plan and that any inconsistencies between this Participation Agreement and the Plan will be resolved in favor of the Plan. All terms used in this Participation Agreement shall have the same meaning as under the Plan.

Signed this                      day of .

	PARTICIPANT:
	Print Name
ACKNOWLEDGED FOR THE COMPANY:By:
By:
Its:

Schedule of Participation Agreements

Name	Position	Date of Agreement
A. Malachi Mixon, III	Former Chairman of the Board of Directors and Chief Executive Officer	December 31, 2008
Gerald B. Blouch	Former President and Chief Operating Officer	December 31, 2008
Robert K. Gudbranson	Senior Vice President, Chief Financial Officer and Treasurer	December 31, 2008
Joseph B. Richey, II	Former President - Invacare Technologies Division and Senior Vice President - Electronics and Design Engineering	December 31, 2008
Louis F. J. Slangen	Former Senior Vice President - Global Market Development	December 31, 2008
Joseph S. Usaj	Former Senior Vice President - Human Resources	December 31, 2008
Anthony C. LaPlaca	Senior Vice President, General Counsel and Secretary	December 31, 2008
Patricia A. Stumpp	Senior Vice President—Human Resources	March 30, 2010

EX-10.W

Exhibit 10(w)

AGREEMENT

This AGREEMENT (“Agreement”), is made as of the __ day of ______, 201_, between INVACARE CORPORATION, an Ohio corporation (“Invacare”), and (the “Executive”).

Invacare desires to enter into an agreement with Executivein recognition of the importance of the Executive’s services to the continuity of management of Invacare and based upon its determination that it will be in the best interests of Invacare to encourage the Executive’s continued attention and dedication to the Executive’s duties in the potentially disruptive circumstances of a possible Change of Control of Invacare. (As used in this Agreement, the term “Change of Control” and certain other capitalized terms have the meanings ascribed to them in Section 8 hereof.)

Invacare and the Executive agree, effective as of the date first set forth above (the “Effective Date”), as follows:

1.Severance Benefits if Employment is Terminated in Certain Circumstances Within Two Years of a Change of Control. If, within two years following the occurrence of a Change of Control, the Executive’s employment with Invacare is terminated by Invacare for any reason other than Cause, Disability, or death, or is terminated by the Executive for Good Reason, then the provisions of this Section 1 shall become applicable in all respects and Invacare shall pay to the Executive the amounts specified in Sections 1.1 and 1.2 on the dates indicated therein, and shall cause certain rights of the Executive to vest as provided in Section 1.3:

1.1Lump Sum Severance Benefit. Subject to Section 1.6, Invacare shall pay to the Executive, on the sixtieth (60th) day after the Termination Date, a lump sum severance benefit in an amount equal to two times: (i) the Executive’s Annual Base Salary plus (ii) the Executive’s Prior Bonus Amount. In addition, Invacare shall pay to the Executive, on the sixtieth (60th) day after the Termination Date, an amount equal to the Executive’s Prorated Bonus Amount.

1.2Insurance Benefits. Subject to Section 1.6, Invacare shall pay to the Executive, on the sixtieth (60th) day after the Termination Date, a lump sum amount equal to twenty-four (24) times the current COBRA premium rate in effect as of the Termination Date for the level of coverage in which the Executive and his or her eligible dependents were enrolled under Invacare’s medical plan immediately prior to the Termination Date.

1.3Vesting of Certain Rights. Subject to Section 1.6, Invacare shall cause the Executive’s rights under the Invacare Deferred Compensation Plus Plan to become, as of the Termination Date, immediately vested in full.    

1.4Equity Awards.

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(a)Invacare Remains the Surviving Entity or the Post-CIC Entity Assumes Equity Awards.If, upon the occurrence of a Change of Control (i) Invacare is the surviving entity following such Change of Control or (ii) all outstanding equity awards held by the Executive are Assumed by the Post-CIC Entity, and if the Executive’s employment is terminated by Invacare or the Post-CIC Entity for any reason other than Cause, Disability, or death, or is terminated by the Executive for Good Reason within two years following the occurrence of the Change of Control, then in respect of all options to purchase Invacare stock, all shares of restricted stock, all restricted stock units and all performance shares that have been granted to the Executive pursuant to any award agreement, plan or arrangement sponsored by Invacare (or any corresponding replacement awards granted by a Post-CIC Entity) and which remain outstanding as of the Termination Date, and notwithstanding any other provision to the contrary contained in any award agreement, plan or arrangement, and subject to Section 1.6, Invacare shall:

(i)         with respect to all options, cause such options:

(A) to become exercisable in full as of the Termination Date;

(B) to continue to be exercisable until the earlier of (1) the expiration date of the option or (2) the second anniversary of the Termination Date; provided that, if the award agreement underlying such option provides for a longer period of exercisability following the Termination Date, then this clause (2) shall be the end of such longer period; and

(C) to be exercisable (and/or to be eligible to satisfy any tax withholding requirements in connection with the exercise of the options) using shares of Invacare common stock previously owned by the Executive and/or shares subject to the options being exercised as consideration in lieu of a cash payment or other arrangement, but only to the extent that any such exercise of the option (and/or withholding tax payments) would not result in Invacare being required to take an additional charge in respect of such exercise in determining and reporting its net income for financial accounting purposes; and

(ii) with respect to any awards of restricted stock or restricted stock units that are not subject to the attainment of performance goals, cause such awards:

(A) to become vested in full as of the Termination Date; and

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(B) to be eligible to satisfy any tax withholding requirements in connection with such vesting of the restricted stock or restricted stock units by using shares of Invacare common stock previously owned by the Executive and/or shares of restricted stock or restricted stock units that become so vested as consideration (in lieu of a cash payment or other arrangement) for the payment of withholding tax, but only to the extent that any such withholding tax payments would not result in Invacare being required to take an additional charge in respect of such accelerated vesting or withholding tax payment in determining and reporting its net income for financial accounting purposes.

(iii) with respect to any awards of restricted stock, restricted stock units or performance shares that are subject to the attainment of performance goals, cause such awards:

(A) to be earned or vest in accordance with their terms as if all of the performance goals applicable to such awards had been achieved at their target levels as of the Termination Date; and

(B) to be eligible to satisfy any tax withholding requirements in connection with such vesting of the restricted stock, restricted stock units or performance shares by using shares of Invacare common stock previously owned by the Executive and/or shares of restricted stock, restricted stock units or performance shares that become so vested as consideration (in lieu of a cash payment or other arrangement) for the payment of withholding tax, but only to the extent that any such withholding tax payments would not result in Invacare being required to take an additional charge in respect of such accelerated vesting or withholding tax payment in determining and reporting its net income for financial accounting purposes.

(b)    Post-CIC Entity Does Not Assume Equity Awards. If, upon the occurrence of a Change of Control, the Post-CIC Entity does not Assume all options to purchase Invacare stock, all shares of restricted stock, all restricted stock units or all performance shares that have been granted

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to the Executive pursuant to any award agreement, plan or arrangement sponsored by Invacare and which remain outstanding as of the date of the Change of Control, and notwithstanding any other provision to the contrary contained in any award agreement, plan or arrangement, then:

(i) any such options, shares of restricted stock, restricted stock units or performance shares not Assumed by the Post-CIC Entity shall become fully vested and exercisable and any restrictions that apply to such awards shall lapse;

(ii) any awards of restricted stock, restricted stock units or performance shares that are subject to the attainment of performance goals and not Assumed by the Post-CIC Entity shall immediately vest and become immediately payable in accordance with their terms, subject to the last paragraph of this Section 1.4, as if all of the performance goals applicable to such awards had been achieved at their the target levels as of the date of the Change of Control;

(iii) for each stock option not Assumed by the Post-CIC Entity, the Executive shall receive a payment equal to the difference between the consideration (consisting of cash or other property (including securities of a successor or parent corporation)) received by holders of Invacare’s common stock in the Change of Control transaction and the exercise price of the applicable stock option, if such difference is positive. Such payment shall be made in the same form as the consideration received by holders of Invacare’s common stock. Any stock option with an exercise price that is higher than the per share consideration received by holders of Invacare’s common stock in connection with the Change of Control shall be cancelled for no additional consideration;

(iv) with respect to any awards of restricted stock or restricted stock units that are not Assumed by the Post-CIC Entity and are not subject to the attainment of performance goals, the Executive shall receive the consideration (consisting of cash or other property (including securities of a successor or parent corporation)) that the Executive would have received in the Change of Control transaction had he or she been, immediately prior to such transaction, a holder of the number of shares of Invacare’s common stock equal to the number of shares of restricted stock or number of restricted stock units held by the Executive; and

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(v) subject to the last paragraph of this Section 1.4, the payments contemplated by Sections 1.3(b)(iii) and (iv) shall be made at the same time as consideration is paid to the holders of Invacare’s common stock in connection with the Change of Control.

Notwithstanding anything to the contrary in this Agreement, if the payment or benefit of any award constitutes a deferral of compensation under Code Section 409A, then to the extent necessary to comply with Code Section 409A, payment or delivery with respect to such award shall be made on the date of payment or delivery originally provided for such payment or benefit.

1.5Later Time for Payment on Account of Termination. Notwithstanding the preceding provisions of Section 1, solely to the extent required to comply with applicable provisions of Code Section 409A with respect to any amounts or benefits not exempt from Code Section 409A, payments made pursuant to Sections 1.1, 1.2, 1.3 or 1.4, on account of the Executive’s termination of employment shall: (a) not commence until the date that is six months and a day following the Termination Date; and (b) upon commencement, include along with the initial payment an amount sufficient to reimburse the Executive for reasonable lost interest at a rate of Prime Plus One per annum, compounded annually, incurred during the period commencing on the date which is sixty (60) days after the Termination Date through the date of payment by Invacare. In the event that Invacare, in the exercise of its reasonable discretion, determines that a delay in payments under this Section 1.5 is required in order to comply with Code Section 409A, Invacare shall, within two business days after the Termination Date, deposit the entire amount due and to become due under Section 1, in the trust established by Invacare with Wachovia Bank of North Carolina, N.A. pursuant to a Benefit Security Trust Agreement dated August 21, 1996, as such agreement may be amended from time to time in accordance with its terms. Payments to the Executive from such trust shall thereafter be made in accordance with this Section 1.5; provided, however, that Invacare shall remain fully obligated to the Executive for the full and complete satisfaction of its liabilities and obligations under this Agreement.

1.6Release Requirement. Notwithstanding any provision herein to the contrary, as a condition to the Executive’s receipt of any post-termination benefits pursuant to this Agreement, (i) the Executive shall execute a release of all claims in favor of Invacare in the form attached hereto as Exhibit A (the “Release”) within the sixty (60) day period following the Termination Date and (ii) any applicable revocation period has expired during such sixty (60) day period without the Executive’s revocation of the Release. In the event the Executive does not sign, or signs and revokes the Release, within the sixty (60) day period following the Termination Date, the Executive shall not be entitled to the aforesaid payments and benefits.

1.7Best Pay Provision. If any payment or benefit the Executive would receive under this Agreement, when combined with any other payment or benefit Executive receives in connection with the termination of Executive's employment with the Company (a "Payment"), would,

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after taking into account any shareholder approval satisfying Section 280G of the Internal Revenue Code of any such payment or benefit, or of any other payment or benefit with respect to the Executive (a) constitute a "parachute payment" within the meaning of Section 280G of the Internal Revenue Code, and (b) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (the "Excise Tax"), then such Payment shall be either (i) the full amount of such Payment or (ii) such lesser amount (with cash payments being reduced before stock option compensation) as would result in no portion of the Payment being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state and local employment taxes, income taxes, and the Excise Tax, results in the Executive's receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax.

All determinations required to be made under this Section 1.7, including whether and to what extent the Payments shall be reduced and the assumptions to be used in arriving at such determination, shall be made by the Accounting Firm in good faith. The Accounting Firm shall provide detailed supporting calculations both to the Executive and the Company at such time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Executive and the Company. For purposes of making the calculations required by this Section 1.7, the Accounting Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and 4999 of the Internal Revenue Code.

2.Other Benefits.

2.1Reimbursement of Certain Expenses After a Change of Control. Invacare shall pay, as incurred (in no event later than the end of the Executive’s taxable year following the year in which such expenses were incurred), all expenses incurred by the Executive at any time during the longer of 20 years or the Executive’s lifetime, including the reasonable fees of counsel engaged by the Executive, in respect of enforcing the Executive’s rights hereunder and/or defending any action brought to have this Agreement, or any provision hereof, declared invalid or unenforceable.

2.2Sick Leave Pay for Executive. If, after a Change of Control and prior to the Termination Date, (i) Invacare or the Post-CIC Entity does not maintain a disability plan covering the Executive that is no less favorable than the disability plan sponsored by Invacare immediately prior to the Change of Control, and (ii) the Executive is unable to perform services for Invacare for any period by reason of accidental bodily injury or sickness, then Invacare will pay and provide to the Executive, as sick leave pay, all compensation and benefits to which the Executive would have been entitled had the Executive continued to be actively employed by Invacare through the earliest of the following dates (the “Sick Leave Period”): (a) the first date on which the Executive is again

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capable of performing ongoing services for Invacare consistent with past practice, or (b) the date on which the Executive’s employment is terminated by Invacare by reason of Disability or otherwise, or (c) the date on which Invacare has paid and provided 29 months of compensation and benefits to the Executive during the period of the Executive’s incapacity, or (d) the date of the Executive’s death. Notwithstanding the foregoing, the Sick Leave Period may not be greater than 6 months unless the Executive’s injury or sickness can be expected to result in death or can be expected to last for a continuous period of not less than 6 months, and such injury or sickness renders the Executive unable to perform the duties of his position of employment or any substantially similar position of employment. The foregoing sick leave pay is intended to compensate Executive for compensation and benefits that he otherwise would have earned during the Sick Leave Period, and shall not reduce or otherwise have any effect on Executive’s rights to receive any other compensation, benefits or other Payments hereunder for any other reason, including as may be owed arising out of cessation of Executive’s employment.

3.No Set-Off; No Obligation to Seek Other Employment or to Otherwise Mitigate Damages; No Effect Upon Other Plans. Invacare’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense, or other claim whatsoever which Invacare may have against the Executive. The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise. The amount of any payment provided for under this Agreement shall not be reduced by any compensation or benefits earned by the Executive as the result of employment by another employer or otherwise after the termination of the Executive’s employment.

4.Taxes; Withholding of Taxes. Without limiting the right of Invacare to withhold taxes pursuant to this Section 4, the Executive shall be responsible (after taking into account all payments to be made by Invacare to or on behalf of the Executive under Section 1 hereof,) for all income, excise, and other taxes (federal, state, city, or other) imposed on or incurred by the Executive as a result of receiving the payments provided in this Agreement, including, without limitation, the payments provided under Section 1 of this Agreement. Invacare may withhold from any amounts payable under this Agreement all federal, state, city, or other taxes as Invacare shall determine to be required pursuant to any law or government regulation or ruling. Without limiting the generality of the foregoing, Invacare may withhold from any amount payable under this Agreement amounts sufficient to satisfy any withholding requirements that may arise out of any benefit provided to or in respect of the Executive by Invacare under Section 1 of this Agreement.

5.Term of this Agreement. This Agreement shall be effective as of the date first above written and shall thereafter apply to any Change of Control occurring on or before [March __, 2014] or during any succeeding applicable term, and on [March __, 2014] and on [March __] of each succeeding year thereafter (a “Renewal Date”), the term of this Agreement, if not previously terminated, shall be automatically extended for an additional year unless either party has given notice to the other, at least one year in advance of that Renewal Date, that the Agreement shall not apply to any Change of Control occurring after that Renewal Date.

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5.1Termination of Agreement Upon Termination of Employment Before a Change of Control. This Agreement shall automatically terminate on the first date occurring before a Change of Control on which the Executive is no longer employed by Invacare, except that, for purposes of this Agreement, any involuntary termination of employment of the Executive or any termination by the Executive for Good Reason that is effected within 6 months before a Change in Control and primarily in contemplation of a Change of Control that actually occurs after the date of the termination shall be deemed to be a termination of the Executive’s employment as of the date immediately after that Change of Control, and in such case, the Change in Control shall constitute the Termination Date and the date as of which the Executive’s right to payment hereunder shall become vested and this Agreement shall not be deemed to be terminated for such purpose.

5.2No Termination of Agreement During Two-Year Period Beginning on Date of a Change of Control. After a Change of Control, this Agreement may not be terminated. However, if the Executive’s employment with Invacare continues for more than two years following the occurrence of a Change of Control, then, for all purposes of this Agreement other than Section 1, that particular Change of Control shall thereafter be treated for purposes of this Agreement as if it never occurred; provided, however, that the foregoing shall not deprive Executive of any rights, benefits or payments (or allow Invacare to avoid any obligations) that were or became vested under this or any other agreement, plan or arrangement.

6.Code Section 409A.

6.1Code Section 409A Compliance. This Agreement is intended to meet the requirements for exemption from (or to the extent not exempt, compliance with) Code Section 409A (including without limitation, the exemptions for short-term deferrals and separation pay arrangements), and this Agreement shall be so construed and administered. Notwithstanding anything in this Agreement to the contrary, at any time prior to a Change in Control, Invacare and the Executive may amend this Agreement, retroactively or prospectively, while maintaining the spirit of this Agreement and after consultation with Executive, to secure exemption from (or, to the extent not exempt, to ensure compliance with), the requirements of 409A and to avoid adverse tax consequences to Executive thereunder. Furthermore, at any time prior to a Change in Control, the Executive agrees to execute such further instruments and take such further action as may be necessary to comply with 409A or to avoid adverse tax consequences to Executive thereunder.

6.2Reimbursements. Any reimbursement paid to Executive by Invacare, either pursuant to this Agreement or under any reimbursement arrangement or policy of Invacare shall be made

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within ninety (90) days following Executive’s submitting evidence of the incurrence of expenses, and in all events prior to the last day of the calendar year following the calendar year in which Executive incurred the expense.  In no event will the amount of expenses so reimbursed by the Company in one year affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

7.Miscellaneous.

7.1    Successor to Invacare. In the event that

(a) Invacare transfers all or substantially all of its assets to another corporation or entity; or

(b) (i) Invacare consolidates with or merges with or into any other corporation or entity and

(ii) either (x) Invacare is not the surviving corporation or entity of such consolidation or merger or (y) Invacare is the surviving corporation or entity of such consolidation or merger but the shareholders of Invacare immediately prior to the consummation of such merger or consolidation do not own securities representing a majority of the outstanding voting power of such surviving corporation or entity or its parent after the consummation of the consolidation or merger, then, in any of such events, the entity surviving such consolidation or merger and each Affiliate thereof having an individual net worth of $5 million or more shall assume joint and several liability for this Agreement in a signed writing and deliver a copy thereof to the Executive. Upon such assumption, the successor corporation or entity and each Affiliate thereof having an individual net worth of $5 million or more shall become obligated to perform the obligations of Invacare under this Agreement and the term “Invacare” as used in this Agreement shall be deemed to refer to such successor entity and such Affiliates jointly and severally. Any failure of Invacare to obtain the written agreement of such successor or surviving entity (including a parent successor entity) and the required Affiliates to assume this Agreement before the effectiveness of any such succession shall be deemed to be a material breach of this Agreement.

7.2    Notices. Notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person or by confirmed facsimile transmission (to the Senior Vice President of Human Resources of Invacare in the case of notices to Invacare and to the Executive in the case of notices to the Executive) or three business

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days after being mailed by United States registered mail, return receipt requested, postage prepaid, addressed as follows:

If to the Company:	Invacare Corporation One Invacare Way Elyria, Ohio 44035
	Attention: Senior Vice President of Human Resources
If to Executive:

or such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

7.3    Employment Rights. Nothing expressed or implied in this Agreement shall create any right or duty on the part of Invacare or the Executive to have the Executive continue as an officer of Invacare or an Affiliate of Invacare or to remain in the employment of Invacare or an Affiliate of Invacare.

7.4    Administration. Invacare shall be responsible for the general administration of this Agreement and for making payments under this Agreement. All fees and expenses billed by the Accounting Firm for services contemplated under this Agreement shall be the responsibility of Invacare.

7.5    Source of Payments. Any payment specified in this Agreement to be made by Invacare may be made directly by Invacare solely from its general assets, and the Executive shall have the rights of an unsecured general creditor of Invacare with respect thereto. In the event that Invacare establishes a rabbi trust and/or purchases an insurance policy insuring the life of the Executive to recover the cost of providing benefits hereunder, neither the Executive nor his or her Beneficiary shall have any rights whatsoever in the assets of such rabbi trust or such policy or the proceeds therefrom.

7.6    Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement which shall remain in full force and effect.

7.7    Modification; Waiver. No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in a writing signed by the Executive and Invacare. No waiver by either party hereto at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by such other

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party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or at any prior or subsequent time.

7.8    Entire Agreement; Supercession. Except as otherwise specifically provided herein, this Agreement, including its attachments, contains the entire agreement between the parties concerning the subject matter hereof and incorporates and supersedes any and all prior discussions or agreements, written or oral, the parties may have had with respect to such subject matter; provided, however, that except as expressly provided otherwise herein, nothing in this Agreement shall affect any rights the Executive or anyone claiming through the Executive may have in respect of either (a) any Employee Benefit Plan which provides benefits to or in respect of the Executive or (b) any other agreements the Executive may have with Invacare or an Affiliate of Invacare, including without limitation any employment or severance protection agreements the Executive may have with Invacare or an Affiliate of Invacare.

7.9    Post-Mortem Payments; Designation of Beneficiary. In the event that, following the termination of the Executive’s employment with Invacare, the Executive is entitled to receive any payments pursuant to this Agreement and the Executive dies, such payments shall be made to the Executive’s Beneficiary designated hereunder. At any time after the execution of this Agreement, the Executive may prepare, execute, and file with the Secretary of Invacare a copy of the Designation of Beneficiary form attached to this Agreement as Exhibit A; provided, that if the Executive has already filed a similar beneficiary form with Invacare, then such form shall remain in effect for purposes of this Agreement until the Executive files an amended form. The Executive shall thereafter be free to amend, alter or change such form; provided, however, that any such amendment, alteration or change shall be made by filing a new Designation of Beneficiary form with the Secretary or the Senior Vice President of Human Resources of Invacare. In the event the Executive fails to designate a beneficiary, following the death of the Executive, all payments of the amounts specified by this Agreement which would have been paid to the Executive’s designated beneficiary pursuant to this Agreement shall instead be paid to the Executive’s spouse, if any, if she survives the Executive or, if there is no spouse or he or she does not survive the Executive, to the Executive’s estate.

7.10    Service with Affiliates. Any services the Executive performs for an Affiliate of Invacare shall be deemed performed for Invacare. Any transfer of the Executive’s employment from Invacare to an Affiliate of Invacare, or from an Affiliate of Invacare to Invacare, or from an Affiliate of Invacare to another Affiliate of Invacare shall be deemed not to constitute a termination of the Executive’s employment with Invacare.

7.11    Time Periods. Any action required to be taken under this Agreement within a certain number of days shall be taken within that number of calendar days; provided, however, that if the last day for taking such action falls on a weekend or a holiday, the period during which such action

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may be taken shall be automatically extended to the next business day. If the day for taking any action under this Agreement falls on a weekend or a holiday, such action may be taken on the next business day. Notwithstanding the foregoing, no such extension shall permit an action to be taken at a time that would cause an exempt payment to become subject to Code Section 409A or to cause a payment that would otherwise be compliant with Code Section 409A to cease to be so compliant.

7.12    Incorporation by Reference. The incorporation herein of any terms by reference to another document shall not be affected by the termination of any agreement set forth in such other document or the invalidity of any provisions thereof.

7.13    Binding Effect; Construction of Agreement. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representatives, executors, administrators, successors, heirs, and designees (including, without limitation, the Beneficiary). Upon the Executive’s death, for purposes of this Agreement, the term “Executive” shall be deemed to include, as applicable, any person (including, without limitation, the Beneficiary) who is entitled to benefits under this Agreement following the Executive’s death.

7.14    Governing Law. All questions concerning the construction, validity and interpretation of this Agreement and the exhibits hereto will be governed by and construed in accordance with the internal laws of the State of Ohio, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Ohio or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Ohio.

7.15    Representations and Warranties of Invacare. Invacare represents and warrants to the Executive that (i) Invacare is a corporation duly organized, validly existing, and in good standing under the laws of the State of Ohio; (ii) Invacare has the power and authority to enter into and carry out this Agreement, and there exists no contractual or other restriction upon its so doing; (iii) Invacare has taken such corporate action as is necessary or appropriate to enable it to enter into and perform its obligations under this Agreement; and (iv) this Agreement constitutes the legal, valid and binding obligation of Invacare, enforceable against Invacare in accordance with its terms.

7.16     Gender. The use of the feminine, masculine or neuter pronoun shall not be restrictive as to gender and shall be interpreted in all cases as the context may require.

8.Definitions.

8.1Accounting Firm. The term “Accounting Firm” means the independent auditors of Invacare for the fiscal year preceding the year in which the Change of Control occurred and such firm’s successor or successors; provided, however, if such firm is unable or unwilling to

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serve and perform in the capacity contemplated by this Agreement, Invacare shall select another national accounting firm of recognized standing to serve and perform in that capacity under this Agreement, except that such other accounting firm shall not be the then independent auditors for Invacare or any of its Affiliates.

8.2Affiliate. The term “Affiliate” shall mean, with respect to any person or entity, any other person or entity which controls, is controlled by, or is under common control with such person or entity within the meaning of Section 414(b) or (c) of the Internal Revenue Code.

8.3Annual Base Salary. “Annual Base Salary” means the highest annual rate of base salary payable by Invacare to the Executive at any time between the Effective Date and the Termination Date.

8.4Assumed. For purposes of this Agreement, a stock option, share of restricted stock, restricted stock unit or performance share shall be considered “Assumed” if all of the following conditions are met:

(a) stock options are converted into replacement awards in a manner that complies with Code Section 409A;

(b) awards of restricted stock and restricted stock units that are not subject to performance goals are converted into replacement awards covering a number of shares of the Post-CIC Entity, as determined in a manner substantially similar to how the same number of common shares underlying the awards of restricted stock or restricted stock units would be treated in the Change of Control transaction; provided that, to the extent that any portion of the consideration received by holders of Invacare’s common stock in the Change of Control transaction is not in the form of the common stock of the Post-CIC Entity, the number of shares covered by the replacement awards shall be based on the average of the high and low selling prices of the common stock of such Post-CIC Entity on the established stock exchange on the trading day immediately preceding the date of the Change of Control;

(c) awards of restricted stock, restricted stock units and performance shares that are subject to performance goals are converted into replacement awards that preserve the value of such awards at the time of the Change of Control;

(d) the replacement awards contain provisions for scheduled vesting and treatment on termination of employment (including the definitions of Cause and Good Reason, if applicable) that are no less favorable to the Executive than the underlying awards being replaced, and all other terms of the replacement awards (other than the security and number of shares represented by the replacement awards) are substantially similar to, or more favorable to the Executive than, the terms of the underlying awards; and

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(e) the security represented by the replacement awards, if any, is of a class that is publicly held and widely traded on an established stock exchange.

8.5Beneficiary. “Beneficiary” means the person designated by the Executive as his beneficiary pursuant to Section 7.9 or such other person as determined pursuant to Section 7.9 hereof.

8.6Cause. The employment of the Executive by Invacare shall have been terminated for “Cause” if, after a Change of Control and prior to the termination of employment, any of the following has occurred:

(a)    the Executive shall have been convicted of a felony,

(b)    the Executive commits an act or series of acts of dishonesty in the course of the Executive’s employment which are materially inimical to the best interests of Invacare and which constitutes the commission of a crime, all as determined by the vote of three-fourths of all of the members of the Board of Directors of Invacare (other than the Executive, if the Executive is a Director of Invacare), which determination is confirmed by a panel of three arbitrators appointed and acting in accordance with the rules of the American Arbitration Association for the purpose of reviewing that determination,

(c)    any federal or state regulatory agency with jurisdiction over Invacare has issued a final order, with no further right of appeal, that has the effect of suspending, removing, or barring the Executive from continuing his service as an officer or director of Invacare, or

(d)    the Executive’s breach of any Technical Information Agreement & Non-Competition Agreement entered into by the Executive.

8.7Change of Control. A “Change of Control” shall be deemed to have occurred at the first time on which, after the Effective Date:

(a)    There is a report filed on Schedule 13D or Schedule 14D1 (or any successor schedule, form, or report), each as adopted under the Securities Exchange Act of 1934, as amended, disclosing the acquisition, in a transaction or series of transactions, by any person (as the term “person” is used in Section 13(d) and Section 14(d)(2) of the Securities Exchange Act of 1934, as amended), other than (1) A. Malachi Mixon and/or any Affiliate of A. Malachi Mixon, (2) Invacare or any of its subsidiaries, (3) any employee benefit plan or employee stock ownership plan or related trust of Invacare or any of its subsidiaries, or (4) any person or entity organized, appointed or established by Invacare or any of its subsidiaries for or pursuant to the terms of any such plan or trust, of such number of shares of Invacare as entitles that person to exercise 30% or more of the voting power of Invacare in the election of Directors; or

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(b)    During any period of twenty-four (24) consecutive calendar months, individuals who at the beginning of such period constitute the Directors of Invacare cease for any reason to constitute at least a majority of the Directors of Invacare unless the election of each new Director of Invacare (over such period) was approved or recommended by the vote of at least two-thirds of the Directors of Invacare then still in office who were Directors of Invacare at the beginning of the period; or

(c)    There is a merger, consolidation, combination (as defined in Section 1701.01(Q), Ohio Revised Code), majority share acquisition (as defined in Section 1701.01(R), Ohio Revised Code), or control share acquisition (as defined in Section 1701.01(Z)(1), Ohio Revised Code, or in Invacare’s Articles of Incorporation) involving Invacare and, as a result of which, the holders of shares of Invacare prior to the transaction become, by reason of the transaction, the holders of such number of shares of the surviving or acquiring corporation or other entity as entitles them to exercise in the aggregate less than fifty percent (50%) of the voting power of the surviving or acquiring corporation or other entity in the election of Directors; or

(d)    There is a sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of Invacare, but only if the transferee of the assets in such transaction is not a subsidiary of Invacare; or

(e)    The shareholders of Invacare approve any plan or proposal for the liquidation or dissolution of Invacare, but only if the transferee of the assets of Invacare in such liquidation or dissolution is not a subsidiary of Invacare.

If an event described in any of Clauses (a), (b), (c), (d), and (e) occurs, a Change of Control shall be deemed to have occurred for all purposes of this Agreement and, except as provided in the last sentence of Section 5.2, that Change of Control shall be irrevocable.

8.8Code. “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.    

8.9Demotion or Removal. The Executive shall be deemed to have been subjected to “Demotion or Removal” if, during the two-year period commencing on the date of a Change of Control, other than by Voluntary Resignation or with the Executive’s written consent, the Executive ceases to hold the highest position held by him at any time during the one year period ending on the date of the Change of Control with all of the duties, authority, and responsibilities of that office as in effect at any time during the one year period ending on the date of the Change of Control.

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8.10Disability. For purposes of this Agreement, the Executive’s employment will have been terminated by Invacare by reason of “Disability” of the Executive only if (a) as a result of accidental bodily injury or sickness, the Executive has been unable to perform his normal duties for Invacare for a period of 180 consecutive days, and (b) the Executive begins to receive payments under the executive long term disability plan or its successor plan(s) sponsored by Invacare not later than 30 days after the Termination Date.

8.11Employee Benefit Plan. “Employee Benefit Plan” means any plan or arrangement defined as such in 29 U.S.C. §1002 which provides benefits to the employees of Invacare or its Affiliates.

8.12Good Reason. The Executive shall have “Good Reason” to terminate his employment under this Agreement if, at any time after a Change of Control has occurred and before the second anniversary of that Change of Control, one or more of the events listed in (a) through (f) of this Section 8.12 occurs and, based on that event, the Executive gives notice of such event (and of his intention to terminate his employment if Invacare does not cure such condition(s)) on a date that is both (i) within 90 days of the occurrence of that event and (ii) not later than the second anniversary of that Change of Control, and Invacare does not cure the condition(s) constituting the event within 30 days after such notice:

(a)    The Executive is subjected to a Demotion or Removal involving a material diminution in the Executive’s authority, duties, or responsibilities or in those of the individual to whom the Executive is required to report; or

(b)    The Executive’s Annual Base Salary is materially reduced (which for this purposes shall be deemed to occur if the reduction is five percent (5%) or greater); or

(c)    The Executive’s opportunity for incentive compensation is materially reduced from the level of his opportunity for incentive compensation as in effect immediately before the date of the Change of Control or from time to time thereafter (which for this purposes shall be deemed to occur if the reduction is equivalent to a five percent (5%) or greater reduction in Executive’s Annual Base Salary); or

(d)    The Executive is excluded (other than by his volitional action(s)) from full participation in any benefit plan or arrangement maintained for senior executives of Invacare generally, and such exclusion materially reduces the benefits provided to the Executive; or

(e)    The Executive’s principal place of employment for Invacare is relocated a material distance (which for this purpose shall be deemed to be more than 35 miles) from One Invacare Way, Elyria, Ohio; or

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(f)    Any other action or inaction that constitutes a material breach by Invacare of this Agreement or any other agreement under which the Executive provides his services to Invacare.

8.13Post-CIC Entity. “Post-CIC Entity” means any entity (or any successor or parent thereof) that effects a Change of Control pursuant to Section 8.7.

8.14Prime Plus One. “Prime Plus One” means the prime rate of interest, as reported by the Wall Street Journal or its successors, plus 1%.

8.15Prior Bonus Amount “Prior Bonus Amount” means an amount equal to the average of the bonuses earned by the Executive under Invacare’s annual bonus plan with respect to the three fiscal years immediately preceding the fiscal year in which a Change of Control occurs, provided however, if the Change of Control occurs prior to completing three full years of employment, then the average of the bonuses earned for the actual number of fiscal years employed by the Executive.

8.16Prorated Bonus Amount. “Prorated Bonus Amount” means an amount equal to (a) times (b), in which (a) equals the Executive’s Annual Base Salary multiplied by the higher of (i) the target bonus percentage in effect for the Executive under Invacare’s bonus plan during the fiscal year immediately preceding the fiscal year in which the Change of Control occurs, or (ii) the target bonus percentage in effect for the Executive under Invacare’s bonus plan during the fiscal year in which the Termination Date occurs; and (b) equals a quotient, in which the numerator is the number of days the Executive was employed by Invacare during the year in which the Termination Date occurs and the denominator is 365.

8.17Termination Date. “Termination Date” means the date on which (and related terms, such as “termination of employment” and “terminate employment” mean a situation in which) the Executive incurs a separation from service with Invacare and all of its Affiliates within the meaning of Code Section 409A. A separation from service under Code Section 409A includes a quit, discharge, or retirement, or a leave of absence (including military leave, sick leave, or other bona fide leave of absence such as temporary employment by the government, at the point that such leave exceeds the greater of: (i) six months; (ii) the period for which the Participant’s right to reemployment is provided either by statute or by contract, or (iii) in the case of sick leave, twenty-nine (29) months, if the Executive’s injury or sickness can be expected to result in death or can be expected to last for a continuous period of not less than 6 months, and such injury or sickness renders the Executive unable to perform the duties of his position of employment or any substantially similar position of

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employment). A separation from service under Code Section 409A also occurs upon a permanent decrease in service to a level that is no more than twenty percent (20%) of its prior level. For this purpose, whether a separation from service has occurred is determined based on whether it is reasonably anticipated that no further services will be performed by the Executive after a certain date or that the level of bona fide services the Executive will perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services if the Executive has been providing services less than 36 months).

8.18Voluntary Resignation. A “Voluntary Resignation” shall have occurred if the Executive terminates his employment with Invacare by voluntarily resigning at his own instance without having been requested to so resign by Invacare, except that any resignation by the Executive will not be deemed to be a Voluntary Resignation if, at the time of that resignation, the Executive had Good Reason to resign, which had not been waived in writing by the Executive.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

INVACARE CORPORATION

("Invacare")

By:

Name:

Title:

(the "Executive")

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Exhibit A

DESIGNATION OF BENEFICIARY

To: Invacare Corporation

Attn: Secretary

I, the undersigned, ______________________, am a party to a certain Agreement with Invacare Corporation, an Ohio corporation, dated as of March __, 2013 (the “Agreement”). Pursuant to the agreement, I have the right to designate a person or persons to receive, in the event of my death, any amounts that might become payable to me under the Agreement. I hereby exercise this right and direct that, upon my death, any amounts payable to me under the Agreement shall be distributed in the proportions set forth below to the following person(s) if he, she or they survive me, namely:

Beneficiary Relationship Percent Share

If none of the above-designated person (s) survives me, any amounts payable under the Agreement shall be distributed to ___________________________________.

Any and all previous designations of beneficiary made by me are hereby revoked, and I hereby reserve the right to revoke this designation of beneficiary.

Date:
	(Signature)
	(Print Name)

Exhibit B

RELEASE AND WAIVER OF CLAIMS

THIS RELEASE AND WAIVER OF CLAIMS (“Release”), is made and entered into by and between Invacare Corporation ("the Company") and John M. Remmers ("Executive") with an Effective Date as described below.

W I T N E S S E T H:

WHEREAS, Executive has entered into a Change of Control Agreement with the Company, dated May 16, 2013, (the “Change of Control Agreement”); and

WHEREAS, pursuant to the terms of the Change of Control Agreement, Executive is eligible to receive severance payments and the accelerated vesting of equity awards and retirement benefits (collectively, the “Severance Benefits”) upon a termination of Executive’s employment under certain conditions; and

WHEREAS, pursuant to the terms of the Change of Control Agreement, in order for Executive to receive any of the Severance Benefits under the Change of Control Agreement, Executive must execute and deliver this Release and not revoke any release or waiver of claims provided herein.

NOW, THEREFORE, in consideration of, and subject to, the Severance Benefits payable to Executive pursuant to the Change of Control Agreement, adequacy of which is hereby acknowledged by Executive, and which Executive acknowledges that he or she would not otherwise be entitled to receive, Executive and the Company hereby agree as follows:

1.Executive's Release. In consideration of the promises and agreements set forth in the Change of Control Agreement, Executive does hereby for himself/herself and for his/her heirs, executors, successors and assigns, release and forever discharge the Company, its parents, subsidiaries, divisions, and affiliated businesses, direct or indirect, if any, together with its and their respective officers, directors, shareholders, management, representatives, agents, employees, successors, assigns, and attorneys, both known and unknown, in both their personal and agency capacities (collectively, “the Company Entities”) of and from any and all claims, demands, damages, actions or causes of action, suits, claims, charges, complaints, contracts, whether oral or written, express or implied and promises, at law or in equity, of whatsoever kind or nature, including but not limited to any alleged violation of any state or federal anti-discrimination statutes or regulations, including but not limited to Title VII of The Civil Rights Act of 1964, as amended, the Employee Retirement Income Security Act of 1974, as amended (ERISA), the Americans With Disabilities Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, breach of any express or implied contract or promise, wrongful discharge, violation of public policy, or tort, all demands for attorney's fees, back pay, holiday pay, vacation pay, bonus, group insurance, any claims for reinstatement, all employee benefits and claims for money, out of pocket expenses, and any claims for emotional distress,

degradation or humiliation, that Executive might now have or may subsequently have, whether known or unknown, suspected or unsuspected, by reason of any matter or thing, arising out of or in any way connected with, directly or indirectly, any acts or omissions of the Company or any of its directors, officers, shareholders, employees and/or agents arising out of Executive's employment and termination from employment that have occurred prior to and including the Effective Date of this Release, except those matters specifically set forth herein and except for (i) any pension or retirement benefits that may have vested on Executive's behalf and (ii) any claim Executive may have with respect to the Severance Benefits or the Change of Control Agreement.

2.Executives Who Are Age Forty and Above. The following provisions of this Section 2 apply only if Executive is age forty (40) or above as of the Effective Date:

(a)Older Workers Benefit Protection Act (“OWBPA”). Executive recognizes and understands that, by executing this Release, he/she shall be releasing the Company Entities from any claims that he/she now has, may have, or subsequently may have under the Age Discrimination in Employment Act of 1967, 29 U.S.C. §§621, etseq., as amended, by reason of any matter or thing arising out of, or in any way connected with, directly or indirectly, any acts or omissions which have occurred prior to and including the Effective Date of this Release. In other words, Executive will have none of the legal rights against the aforementioned that he/she would otherwise have under the Age Discrimination in Employment Act of 1967, 29 U.S.C. §§621, etseq., as amended, by his/her signing this Release.

(b)Consideration Period. The Company hereby notifies Executive of his/her right to consult with his/her chosen legal counsel before signing this Release. The Company shall afford, and Executive acknowledges receiving, not less than twenty-one (21) calendar daysin which to consider this Release to ensure that Executive’s execution of this Release is knowing and voluntary. In signing below, Executive expressly acknowledges that he/she has been afforded the opportunity to take at least twenty-one (21) days to consider this Release and that his/her execution of same is with full knowledge of the consequences thereof and is of his/her own free will.

Notwithstanding the fact that the Company has allowed Executive twenty-one (21)days to consider this Release, Executive may elect to execute this Release prior to the end of such 21 day period. If Executive elects to execute this Release prior to the end of such 21 day period, then by his/her signature below, Executive represents that his/her decision to accept this shortening of the time was knowing and voluntary and was not induced by fraud, misrepresentation, or any threat to withdraw or alter the benefits provided by the Company herein, or by the Company providing different terms to any similarly-situated Executive executing this Release prior to end of such 21 day consideration period.

(c)Revocation Period. Both the Company and Executive agree and recognize that, for a period of seven (7) calendar days following Executive’s execution of this Release, Executive may revoke this Release by providing written notice revoking the same, within this seven (7) day period, delivered by

hand or by certified mail, addressed to Invacare Corporation, One Invacare Way, Elyria, Ohio 44036 delivered or postmarked within such seven (7) day period. In the event Executive so revokes this Release, each party will receive only those entitlements and/or benefits that he/it would have received regardless of this Release.

3.Acknowledgments. Executive acknowledges that Executive has carefully read and fully understands all of the provisions of this Release, that Executive has not relied on any representations of the Company or any of its representatives, directors, officers, employees and/or agents to induce Executive to enter into this Release, other than as specifically set forth herein and that Executive is fully competent to enter into this Release and has not been pressured, coerced or otherwise unduly influenced to enter into this Release and that Executive has voluntarily entered into this Release of Executive's own free will.

4.Warranty/Representation. Executive and the Company each warrant and represent that, prior to and including the Effective Date of this Release, no claim, demand, cause of action, or obligation that is subject to this Release has been assigned or transferred to any other person or entity, and no other person or entity has or has had any interest in any such claims, demands, causes of action or obligations, and that each has the sole right to execute this Release.

5.Invalidity. The parties to this Release agree that the invalidity or unenforceability of any one (1) provision or part of this Release shall not render any other provision(s) or part(s) hereof invalid or unenforceable and that such other provision(s) or part(s) shall remain in full force and effect.

6.No Assignment. This Release is personal in nature and shall not be assigned by Executive. All payments and benefits provided Executive herein shall be made to his/her estate in the event of his/her death prior to his/her receipt thereof.

7.Governing Law. This Release shall be governed under the laws of the State of Ohio.

8.Effective Date. This Release shall become effective upon execution of this Release by Executive; provided, however, that, if Executive is age forty (40) or above, this Release shall become effective only upon (a) execution of this Release by Executive after the expiration of the twenty-one (21)dayconsideration period described in Section 2(b) of this Release, unless such consideration period is voluntarily shortened as provided by law; and (b) the expiration of the seven (7) day period for revocation of this Release by Executive described in Section 2(c) of this Release.

NOTICE TO EXECUTIVE: READ BEFORE SIGNING. THIS DOCUMENT CONTAINS A RELEASE OF ALL CLAIMS AGAINST THE COMPANY ENTITIES PRIOR TO AND INCLUDING THE DATE OF EXECUTIVE’S EXECUTION OF THIS AGREEMENT.

IN WITNESS WHEREOF, Executive and the Company agree as set forth above:

RECEIPT WITNESSED BY:

__________________________________________________________

SIGNATURE OF EXECUTIVE

ACKNOWLEDGING DATE OF RECEIPT

DATE________________________

EXECUTION ACCEPTED BY:AGREED TO AND ACCEPTED BY:

____________________________________________________________

EXECUTIVE NAME

EXECUTION WITNESSED BY:AGREED TO AND ACCEPTED BY COMPANY

___________________________________________________________

BY:___________________________

TITLE_________________________

Schedule of Change of Control Agreements with Current Executive Officers

Name	Position	Date of Agreement
Matthew E. Monaghan	Chairman, President and Chief Executive Officer	April 1, 2015
Dean J. Childers	Senior Vice President and General Manager, North America	September 1, 2015
Gordon Sutherland	Senior Vice President and General Manager, Europe, Middle East & Africa	September 1, 2015

EX-10.AS

Exhibit 10(as)

INVACARE CORPORATION

INDEMNITY AGREEMENT

    THIS AGREEMENT is made as of the 1st day of April, 2015, by and between INVACARE CORPORATION, an Ohio corporation (the "Corporation"), and Matthew E. Monaghan ("Indemnitee"), a Director and/or an Officer of the Corporation.

     WHEREAS, it is essential to the Corporation to retain and attract as Directors and/or Officers the most capable persons available, such as Indemnitee; and

     WHEREAS, the prevalence of corporate litigation subjects directors and officers to expensive litigation risks, and it is the policy of the Corporation to indemnify its Directors and/or Officers so as to provide them with the maximum possible protection permitted by law; and

    WHEREAS, in addition, because the statutory indemnification provisions of the Ohio Revised Code expressly provide that they are non-exclusive, it is the policy of the Corporation to indemnify Directors and Officers who, on behalf of the Corporation, have entered into settlements of derivative suits or have paid judgments, fines or penalties therefor, provided they have not breached the applicable statutory standard of conduct; and

     WHEREAS, Indemnitee does not regard the protection available under the Corporation's Code of Regulations and insurance, if any, as adequate in the present circumstances, and considers it necessary and desirable to his or her service as a Director and/or Officer to have maximum protection, and the Corporation desires to provide such protection to induce Indemnitee to serve in such capacity; and

    WHEREAS, the Ohio Revised Code Section 1701.13(E) and the Corporation's Code of Regulations Article V(a) provide that indemnification of Directors and Officers of the Corporation may be authorized by agreement, and thereby contemplates that contracts of this nature may be entered into between the Corporation and Indemnitee with respect to indemnification of Indemnitee as a Director or an Officer of the Corporation.

    NOW, THEREFORE, for good and valuable consideration, the sufficiency and adequacy of which is hereby acknowledged, the Corporation and Indemnitee do hereby agree as follows:

1.     Agreement to Serve. Indemnitee agrees to serve or continue to serve as a Director and/or Officer of the Corporation for so long as he or she is duly elected or appointed or until such time as he or she tenders his or her resignation in writing or is otherwise terminated or removed from office.

    The Corporation expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on the Corporation hereby in order to induce Indemnitee to serve or continue to serve as a Director and/or Officer of the Corporation, and acknowledges that Indemnitee is relying upon this Agreement in continuing in such capacity.

2.     Definitions. As used in this Agreement:

    The term "Proceeding" shall include any threatened, pending, or completed action, suit or proceeding, whether brought by or in the right of the Corporation or otherwise and whether of a civil, criminal, administrative or investigative nature, in which Indemnitee may be or may have been involved as a party, a participant (such as a witness) in or otherwise, by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or any subsidiary of the Corporation, by reason of any action taken by Indemnitee or of any inaction on his or her part while acting as such a Director and/or Officer, or by reason of the fact that he or she is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, employee or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise; in each case whether or not he or she is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification or reimbursement can be provided under this Agreement.

    The term "Expenses" shall include, without limitation, expenses of investigations, judicial or administrative proceedings or appeals, attorneys' fees and disbursements, any expenses of establishing a right to indemnification under Paragraph 10 of this Agreement and all other costs and expenses incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Proceeding. However, Expenses shall not include the amount of judgments, fines or penalties against or settlements paid by Indemnitee.

    References to "other enterprise" shall include, without limitation, employee benefit plans; references to "fines" shall include, without limitation, any excise tax assessed with respect to any employee benefit plan; references to "serving at the request of the Corporation" shall include, without limitation, any service as a Director or Officer of the Corporation which imposes duties on, or involves services by, such Director or Officer with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he or she reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the Corporation" as referred to in this Agreement.

3.     Indemnity in Third-Party Proceedings. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 3 if Indemnitee is a party to or threatened to be made a party to or otherwise involved in any Proceeding (other than a Proceeding by or in the right of the Corporation to procure a judgment in its favor) by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or a subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, employee or agent of another corporation, domestic or foreign, non-profit or for-profit, a

limited liability company or a partnership, joint venture, trust or other enterprise, against all Expenses, judgments, settlements, fines and penalties, actually and reasonably incurred by Indemnitee in connection with the defense or settlement of such Proceeding, but only if Indemnitee acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation and, in the case of a criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful. The termination of any such Proceeding by judgment, order of court, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation, and with respect to any criminal proceeding, that such person had reasonable cause to believe that his or her conduct was unlawful.

4.     Indemnity for Expenses in Proceedings by or in the Right of the Corporation. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 4 if Indemnitee is a party to or threatened to be made a party to any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or a subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, employee or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise, against all Expenses actually and reasonably incurred by Indemnitee in connection with the defense of such Proceeding, but only if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation, except that no indemnification for Expenses shall be made under this Paragraph 4 in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged by a court order or judgment, by a court of competent jurisdiction, to be liable to the Corporation, unless and only to the extent that any court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses as such court shall deem proper.

5.     Indemnity for Amounts Paid in Settlement in Proceedings by or in the Right of the Corporation. The Corporation shall indemnify Indemnitee in accordance with the provisions of this Paragraph 5 if Indemnitee is a party to or threatened to be made a party to any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or a subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, officer, employee, or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise, against all amounts actually and reasonably paid in settlement by Indemnitee in connection with any such Proceeding, but only if he or she acted in good faith and in a manner which he or she reasonably

believed to be in or not opposed to the best interests of the Corporation.

6.     Indemnity for Amounts Paid for in Judgments in Proceedings by or in the Right of the Corporation. The Corporation shall indemnify Indemnitee in accordance with the provisions

of this Paragraph 6 if Indemnitee is a party to or threatened to be made a party to any Proceeding by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that Indemnitee is or was a Director and/or Officer of the Corporation or a subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, member or manager, partner, trustee, officer, employee, or agent of another corporation, domestic or foreign, non-profit or for-profit, a limited liability company or a partnership, joint venture, trust or other enterprise, against all judgments, fines and penalties actually and reasonably incurred by Indemnitee in connection with any such Proceeding, but only if he or she acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation.

7.     Indemnification of Expenses as a Witness in a Proceeding. The Corporation shall indemnify the Indemnitee in accordance with the provisions of this Paragraph 7 if the Indemnitee's involvement in a Proceeding is to prepare to serve and serve as a witness, and not as a party, against all Expenses actually and reasonably incurred in connection therewith. As a condition to any such indemnification provided by the Corporation under this Paragraph 7, Indemnitee agrees to use his or her best efforts to cooperate and coordinate with the Corporation in his or her preparation for, and participation in, any Proceeding. Notwithstanding anything contained in this Paragraph 7 to the contrary, the Corporation shall not be obligated to indemnify Indemnitee or advance any expenses in connection with the service by Indemnitee as a witness if it is determined that Indemnitee’s service is or will be adverse or hostile to the Corporation (an “Adverse Witness”), as determined by an Independent Law Firm (as that term is defined in Paragraph 11). In making such determination, the Independent Law Firm shall take into account all factors that it considers to be relevant, including, but not limited to, the nature of the claim or Proceeding; the position or involvement of Indemnitee; the level of cooperation between Indemnitee and the Corporation prior to, during and in connection with the Proceeding at issue; and other factors the Independent Law Firm considers relevant.

8. Indemnification of Expenses of Successful Party. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding or in defense of any claim, issue or matter therein, including dismissal without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection therewith.

9.     Advances of Expenses. Any Expenses incurred by or on behalf of Indemnitee pursuant to Paragraphs 3, 4 or 7 in any Proceeding shall be paid by the Corporation as incurred by Indemnitee and in advance of the final disposition of the applicable Proceeding upon the written request of Indemnitee if Indemnitee shall undertake in writing to repay such amount to the extent that it is ultimately determined by clear and convincing evidence in a court that Indemnitee is not entitled to indemnification hereunder, and (b) reasonably cooperate with the Corporation concerning the action, suit or proceeding giving rise to the Expenses. Any advances to be made under this Paragraph 9 shall be paid by the Corporation to Indemnitee within twenty (20) days following delivery of a written request therefor by Indemnitee to the Corporation.

10. Procedure. Any indemnification and advances provided for in Paragraph 3, 4, 5, 6, 7, 8 and 9 shall be made no later than twenty (20) days after receipt of the written request of Indemnitee.

If a claim under this Agreement, under any statute, or under any provision of the Corporation's Code of Regulations or Articles of Incorporation providing for indemnification, is not paid in full by the Corporation within twenty (20) days after a written request for payment thereof has been first received by the Corporation, Indemnitee may, but need not, at any time thereafter bring an action against the Corporation to recover the unpaid amount of the claim and, subject to the other provisions of this Agreement, Indemnitee also shall be entitled to be paid for the Expenses of bringing such action. It shall be a defense to any such action (other than any claim for indemnification for Expenses pursuant to Paragraph 7 or an action brought to enforce a claim for Expenses incurred in connection with any action, suit or proceeding in advance of its final disposition) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Corporation to indemnify Indemnitee for the amount claimed, but the burden of proving such defense shall be on the Corporation and Indemnitee shall be entitled to receive advance payments of expenses pursuant to Paragraph 9 hereof unless and until such defense may be finally adjudicated by court order or judgment from which no further right of appeal exists. It is the parties' intention that if the Corporation contests Indemnitee's right to indemnification, the question of Indemnitee's right to indemnification shall be for the court to decide. There shall exist in such action a rebuttable presumption that Indemnitee has met the applicable standard(s) of conduct and is therefore entitled to indemnification pursuant to this Agreement. Neither the failure of the Corporation (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel or its shareholders) to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct as may be required by applicable law, nor any actual determination by the Corporation (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its shareholders) that Indemnitee has not met such applicable standard of conduct, shall (a) constitute a defense to such action, (b) create a presumption that Indemnitee has or has not met the applicable standard of conduct, or (c) otherwise alter the presumption in favor of Indemnitee referred to in the preceding sentence.

11. Allowance for Compliance with SEC Requirements. Indemnitee acknowledges that the Securities and Exchange Commission ("SEC") has expressed the opinion that indemnification of directors and officers from liabilities under the Securities Act of 1933, as amended (the "Act"), is against public policy as expressed in the Act and is, therefore, unenforceable. Indemnitee hereby acknowledges and agrees that it will not be a breach of this Agreement for the Corporation to undertake with the SEC in connection with the registration for sale of any capital stock or other securities of the Corporation from time to time that, in the event a claim for indemnification against such liabilities (other than the payment by the Corporation of expenses incurred or paid by a director or officer of the Corporation in the successful defense of any action, suit or proceeding) is asserted in connection with such capital stock or other securities being registered, the Corporation will, unless in the written opinion of a competent outside law firm that has not provided any services to the Corporation or Indemnitee (or their respective affiliates) (“Independent Law Firm”) at any time over the prior twenty-four month period, the matter has been settled by controlling precedent, submit to a court of competent jurisdiction on the question of whether or not such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.; provided that, unless the aforementioned Opinion is rendered, Indemnitee shall be entitled to receive advance payments of expenses pursuant to Paragraph 9 hereof unless and

until such determination with respect to public policy may be finally adjudicated by court order or judgment. The Corporation shall provide Indemnitee a copy of all pleadings in such action and not object to Indemnitee joining such action as a party at his or her own expense (and without rights to indemnity under this agreement, including as an adverse party. Indemnitee further agrees that such submission to a court of competent jurisdiction shall not be a breach of this Agreement.

12. Indemnification Hereunder Not Exclusive. The indemnification provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under the Articles of Incorporation or the Code of Regulations of the Corporation, any agreement, any vote of shareholders or disinterested directors, the Ohio General Corporation Laws, or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding such office.

    The indemnification under this Agreement for any action taken or not taken while serving in an indemnified capacity shall continue as to Indemnitee even though he or she may have ceased to be a Director and/or Officer and shall inure to the benefit of the heirs, executors and personal representatives of Indemnitee.

13. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Corporation for some claims, issues or matters, but not as to other claims, issues or matters, or for some or a portion of the Expenses, judgments, fines or penalties actually and reasonably incurred by Indemnitee or amounts actually and reasonably paid in settlement by Indemnitee in the investigation, defense, appeal or settlement of any Proceeding, but not for the total amount thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such claims, issues or matters or Expenses, judgments, fines, penalties or amounts paid in settlement to which Indemnitee is entitled.

14. No Rights of Continued Employment. Nothing contained in this Agreement is intended to create in Indemnitee any right to continued employment with the Corporation.

15. Reimbursement to Corporation by Indemnitee; Limitation on Amounts Paid by Corporation. To the extent Indemnitee has been indemnified by the Corporation hereunder and later receives payments from any insurance carrier covering the same Expenses, judgments, fines, penalties or amounts paid in settlement so indemnified by the Corporation hereunder, Indemnitee shall immediately reimburse the Corporation hereunder for all such amounts received from the insurer.

     Notwithstanding anything contained herein to the contrary, Indemnitee shall not be entitled to recover amounts under this Agreement which, when added to the amount of indemnification payments made to, or on behalf of, Indemnitee, under the Articles of Incorporation or Code of Regulations of the Corporation, in the aggregate exceed the Expenses, judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred by Indemnitee ("Excess Amounts"). To the extent the Corporation has paid Excess Amounts to Indemnitee, Indemnitee shall be obligated to immediately reimburse the Corporation for such Excess Amounts.

    Notwithstanding anything contained herein to the contrary, the Corporation shall not be obligated under the terms of this Agreement to indemnify Indemnitee:

(a) or advance expenses to Indemnitee with respect to either (i) proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, or (ii) under Paragraph 7 herein if Indemnitee is determined to be an Adverse Witnessexcept with respect to Proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise, but such indemnification or advancement of expenses may be provided by the Corporation in specific cases if the Board of Directors finds it appropriate;

(b) subject to Paragraph 10, if it is proved by final judgment or adjudication by a court of competent jurisdiction to have been based upon or attributable to the Indemnitee's in fact having gained any personal profit or advantage to which he or she was not legally entitled;

(c) for any expenses incurred by Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous;

(d) for a disgorgement of profits made from the purchase and sale by Indemnitee of securities pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of any state statutory law or common law; or

(e) subject to Paragraph 10, for any Expenses, judgment, fine or penalty in which there is either an opinion complying with the requirements of Paragraph 11 hereof, or a final judgment or adjudication by a court of competent jurisdiction, that the Corporation is prohibited by applicable law from paying as indemnity or for any other reason.

16. Scope. Notwithstanding any other provision of this Agreement, except Paragraph 15 hereof, the Corporation hereby agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Corporation's Code of Regulations or Articles of Incorporation, or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute or rule which expands the right of an Ohio corporation to indemnify a member of its board of directors or an officer, such change shall be deemed to be within the purview of the Indemnitee's rights and the Corporation's obligations under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of an Ohio corporation to indemnify a member of its board of directors or an officer, such change, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties' rights and obligations hereunder.

17. Notice to Insurers. If, at the time of the receipt of a written request of Indemnitee pursuant to Paragraph 9 hereof, the Corporation has director and officer liability insurance in effect, the Corporation shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Corporation shall thereafter take all necessary or desirable action, using commercially reasonable efforts, to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

18. Continuation of Rights and Obligations. All rights and obligations of the Corporation and Indemnitee hereunder shall continue in full force and effect despite the subsequent amendment or modification of the Corporation's Articles of Incorporation or Code of Regulations, as such are in effect on the date hereof, and such rights and obligations shall not be affected by any such amendment or modification, any resolution of directors or shareholders of the Corporation, or by any other corporate action which conflicts with or purports to amend, modify, limit or eliminate any of the rights or obligations of the Corporation and/or Indemnitee hereunder.

19. Amendment and Modification. This Agreement may only be amended, modified or supplemented by the written agreement of the Corporation and Indemnitee.

20. Assignment. This Agreement shall not be assigned by the Corporation or Indemnitee without the prior written consent of the other party thereto, except that the Corporation may freely assign its rights and obligations under this Agreement to any subsidiary for whom Indemnitee is serving as a director and/or officer thereof; provided, however, that no permitted assignment shall release the assignor from its obligations hereunder. Subject to the foregoing, this Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, including, without limitation, any successor to the Corporation by way of merger, consolidation and/or sale or disposition of all or substantially all of the capital stock of the Corporation.

21. Saving Clause. If this Agreement or any portion thereof shall be invalidated on any ground by any court of competent jurisdiction, the Corporation shall nevertheless indemnify Indemnitee as to Expenses, judgments, fines, penalties and amounts paid in settlement with respect to any Proceeding to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated or by any other applicable law.

22. Counterparts. This Agreement may be executed in two or more fully or partially executed counterparts each of which shall be deemed an original binding the signer thereof against the other signing parties, but all counterparts together shall constitute one and the same instrument. Executed signature pages may be removed from counterpart agreements and attached to one or more fully executed copies of this Agreement. The parties may execute and deliver this Agreement by facsimile signature, which shall have the same binding effect as an original ink signature.

23. Notice. Indemnitee shall, as a condition precedent to his or her right to be indemnified under this Agreement, give to the Corporation notice in writing as soon as practicable of any claim made against him or her for which indemnity will or could be sought under this Agreement.

Notice to the Corporation shall be directed to the Corporation at its headquarters located at One Invacare Way, Elyria, Ohio 44035, Attention: Chairman (or such other address as the Corporation shall designate in writing to Indemnitee). Notice shall be deemed received three days after the date postmarked if sent by prepaid mail, properly addressed. In addition, Indemnitee shall give the Corporation such information and cooperation as it may reasonably require within Indemnitee's power.

24. Applicable Law. All matters with respect to this Agreement, including, without limitation, matters of validity, construction, effect and performance, shall be governed by and construed in accordance with the laws of the State of Ohio applicable to contracts made and to be performed therein between the residents thereof (regardless of the laws that might otherwise be applicable under principles of conflict of law).

[signature page to follow]

IN WITNESS WHEREOF, the parties hereby have caused this Agreement to be duly executed and signed as of the day and year first above written.

INVACARE CORPORATION

THE "CORPORATION"

By:    /s/ Anthony C. LaPlaca

Its:    Senior Vice President & General Counsel

“INDEMNITEE”

/s/ Matthew E. Monaghan

EX-10.AU

Exhibit 10(au)

REGISTERED

Mr. Gordon SUTHERLAND

Gland Wednesday, 04 January 2012

SUBJECT: EMPLOYMENT CONTRACT

Dear Gordon,

Following our discussions we have the pleasure in confirming your fixed employment contract with our Company at the following terms and conditions:

BetweenInvacare International Sari, Switzerland

AndGordon Sutherland

1. THE EMPI, OYMENT

1.1    POSITION:You are employed with the Company on the terms provided in this contract as VP, GENERAL MANAGER, COMMERCIAL OPERATIONS EMEA (job description attached). You will perform all acts, duties and obligations which are reasonably consistent with your job description and comply with all reasonable instructionsgiven from time to time by the Company. The Company may require you to undertake other duties or special projects from time to time, it being understood that you will not be required to perform duties which are not reasonably within your capabilities.

1.2    CANTON OF RESIDENCE:Due to the tax concessions of the legal entity Invacare International Sari., you are required to fiscally reside in the Canton of Vaud. It is expected that you move your fiscal residence to Vaud within a period of 3 months after the start of your employment contract. This will entail a search for accommodation and the Company will provide assistance for this. During those 3 months, we will pay for hotel accommodation as necessary. The Company will also pay for the shipment of any personal belongings to the new residence.

1.3    REPORTING TO: You will report to Sr. VP Commercial Operations, currently Mr. Carl Will, based at our Corporate Headquarters in the USA.

1.4    COMMENCEMENT: 1^st September 2012 latest, earlier if possible (perhaps as early as 1^st April 2012), at 09:00 a.m. Please bring a copy of your passport and the Company willprepare the necessary paperwork for the establishment of your Swiss Social Security number (AVS) and working permit. You will also have to set up a Swiss bank account for salary payments and we will assist you with this too.

1.5    TRIAL PERIOD: 3 months. In this time, in the event of any restructuring, transfer of ownership or any reason not related to performance, you will be paid 12 months of salary including notice period.

1.6    WORKING HOURS: The normal weekly working hours are 40, excluding lunch breaks. You shall devote your full working capacity to the Company and may not engage in other paid work without the written consent of the Company. Employees should work during core hours but flexibility can be agreed with the Manager.

1.7    WORK ENVIRONMENT: In order that the Company maintain a positive work environment, you mustnot engage in nor permit any fellowemployee (s) to engage in any form of harassment or unlawful discrimination against another person (whether a Company employee or not). This includes harassment and discrimination on the basis of age, sex, race, disability, religion or belief, marriage and civil partnership, pregnancy and maternity, gender reassignment and sexual orientation.

1.8    POLICIES AND PROCEDURES: You will adhere to all policies and procedures located in the Company Share-point Database.

2. RENUMERATION

2.1    SALARY: You shall be remunerated in line with the Swiss market for similar positions, with a yearly gross

salary of SFr 393'000- (three hundred and ninety thousand Swiss Francs per annum) paid in 12 installments per year i.e. SFr 32'500 per month. Your Gross Fixed Annual Salary will be reviewed annually based on performance in the job. Please note that you have no automatic entitlement to a salary increase in any year.

2.2    BONUS PLAN MBO: In addition you will be entitled to a bonus target of 40% of Gross Fixed Annual Salary. This bonus is subject to the Invacare MBO Scheme and will be dependent upon the achievement of agreed objectives, based on Company and personal objectives. Should an employee resign prior to the end of the plan year i.e. not be on the payroll until the 30^th of November each year, no bonus will be paid. In the first year of employment, the bonus will be calculated on a prorated basis for the months worked and the average salary during the plan year, provided youjoined the Company no later than l" September of the starting year. Should you be eligible in year 1, your payout for this period is guaranteed at 75% of the target (40% prorated).

2.3    STOCK OPTIONS: You will also be "considered" for a stock option grant each year with no guarantee that such grants will be made.

2.4    ONE TIME SIGN ON BONUS: You are eligible for a lump sum payment of SFr 10'000 which will be paid together with your l" salary payment.

2.5    TEMPORARY LIVING: You will receive an allowance of SFr 2'500 per month for 12 months renewable. Such renewal will be agreed within the last 3 months of each applicable year. Please note this is a taxable benefit.

2.6    INTEREST FREE LOAN: in order to assist you with tax obligations in the UK, you will be provided with an interest free loan in Swiss Francs to be repaid by latest 24 months after receipt. We will base this loan on an estimate of tax to be paid by you in Switzerland for your first 12 months of employment or upon actual tax bill received from the UK after you have joined Invacare.

2.7    FLIGHT ALLOWANCE: You will be entitled to receive 2 home trips to the UK per month for 12 months

renewable. Such renewal will be agreed within the last 3 months of each applicable year. If possible such trips should be tied into a business trip. For additional personal trips you should provide a personal credit card with details to the Reception should you wish for them to organize the flights. Please note that non business related return trips are a taxable benefit.

2.8    COMPANY CAR: You are eligible to receive a Company Car in line with our Car Policy. An example of such a car is an AUDI A6 or BMW 5 series with a maximum lease price of SFr 1'500 per month inclusive of everything except petrol which will be reimbursed through expense reporting. Please note that a company car is a taxable benefit in line with Swiss Fiscal Legislation. Should you leave the company the Company Car shall be returned no later than the end of your employment contract. Should you fall ill for a period of more than I month, you will return your Company Car and at this time you; will be provided with a low cost low maintenance car until such time as you return to full physical capacity or your employment contract ends.

2.9    TAXATION: In line with the fiscal legislation for the Canton of Vaud as a "B" permit holder your taxes will be deducted at source each month.

2.10    SUPPLEMENTARY HOURS: As a VP and due to your job level, there will be no compensation for overtime either in the form of payment or time off in lieu.

2.11    INSURANCES: The usual Employee's contribution to Swiss Social Security (AVS/Al/APG), unemployment benefits, loss of wages insurance in case of illness and pension fund shall be deducted from gross fixed salary.

2.11.1    ACCIDENT INSURANCE: The Company pays the premiums for the accident insurance, whether professional or non-professional (providing you work a minimum of 8 hours per week).

2.11.2    LOSS IN SALARY INSURA NCE: The Company pays the premiums for loss in salary insurance in case of sickness.

2.11.3    PENSION: You will be part of our LPP Pension Plan (plan I) and Management Pension Plan (plan 2). The remuneration used for benefits is your Gross Fixed Annual Salary pay exclusive of bonuses.

2.11.4    MEDICAL: You will receive a contribution towards your medical insurance of SFr 250.-- per month. It is a legal obligation in Switzerland to take medical insurance coverage and we will help you obtain this.

2.12    TRANSFER OF DATA: You give permission to the Company to transfer personal and confidential data to other Invacare companies either in Europe or outside of Europe that may be required for the normal running of the business or the remuneration conditions of your contract of employment.

2.13    TRAVEL EXPENSES: You will be paid or reimbursed for any reasonable expenses properly incurred by you while performing your duties on behalf of the Company, subject to the production of receipts in respect of such expenses and subject to compliance with the Company's rules and policies relating to expenses. The Company will not reimburse expenses related to home trips to the United Kingdom and this includes flights, meals, parking, petrol tolls etc. which are non-work related (see article 2.4). Expense reports should be submitted no later than 30 days after the closing of the2.14    SMOKING: The Offices of Invacare International Sari are designated as a no smoking area. You are permitted to smoke outside the building or on the terrace outside the offices.

2.15    MOBILE PHONE: The Company will provide a mobile phone for business purposes, during the course of the

employment for as long as you are physically required to work. You may also use the mobile phone for personal calls, providing such use is reasonable. Hence such a privilege may be withdrawn without redress, should the Company have reasonable cause to believe the facility is being abused.

3. HOLIDAYS

Legal entitlement in Switzerland is 20 days. Invacare employees are entitled to paid holidays of 25 working days per annum (these compensate for the first 5 additional hours worked each week). In the case of sick leave or maternity leave vacation entitlement will be reduced in accordance with Swiss legislation. You will adhere to the Invacare public holiday and Company holiday schedule for security reasons. Upon termination, any vacation taken but not accrued up to the date of the end of the contract will be deducted from the final salary payment. You must obtain the prior written approval from you Manager before booking holiday dates, through completion of a vacation entitlement sheet, to be found on our Sharepoint data base.

4. TERMINATION

4.1    NOTICE PERIOD: Both parties can terminate the contract of employment in writing. After the end of the trial period the length of the notice period is 3 months for the end of a month.

4.2    REDUNDANCY PAYMENT: Should your employment be terminated for economic reasons (restructuring, take-over etc. i.e. not your fault or performance related), the Company will pay you 9 months of base annual pay in a lump sum to be paid with your last salary as an Employee of the Company. As per policy, you will also be entitled to receive a prorated payment of your bonus (based on months worked in bonus plan year and known achievement levels v targets). This will be paid within 2 months of your departure when results are known.

4.3    At the end of the month in which you reach the age of 65 the employment will stop. The Company shall be entitled at any time during your employment, or in any event on termination, to deduct from your salary (or any other monies due to you) any monies due from you to the Company including (but not limited to) any cash advances, training costs (in accordance with the Company Training funding policy and agreement), any sums to be deducted in accordance with the Company's vehicle policy, the cost of repairing any damage or loss to the Company’s property caused by you (and of recovering the same), any sums due from you and any other monies owed by you to the Company including replacement of car park remote control and loaned equipment.

4.4    The Company reserves the right to terminate your contract without any notice or payment in lieu of notice if it has reasonable grounds to believe that:

• You have committed gross misconduct;

• You have committed gross negligence;

• You have taken leave without authorization (except in the case of illness or accident);

• You are in material breach of one of the terms of this agreement;

• You are convicted of any criminal offence (other than minor offences under the Road Traffic Acts or the Road Safety

Acts for which a fine or non-custodial penalty is imposed) which might reasonably be thought to affect adversely the performance of your duties; and/or

• You have committed any fraud, dishonesty or conduct tending to bring yourself, the Company or any Associated Company into disrepute.

Further examples of gross misconduct are set out under Swiss Labor laws.

The Company reserves the right to require you not to attend work and/or not to undertake all or any of your duties of employment and/or not to contact any client, customer, supplier, contractor, officer or employee of the Company or any Associated Company at any time or times during any period of notice served under this Agreement (whether given by you or the Company), provided always that the Company shall continue to pay your salary and contractual benefits whilst you remain employed by the Company ("Garden Leave"). During any such period of Garden Leave you shall remain readily contactable and available for work.

4.5    The Company shall retain the right to suspend you on full pay and benefits pending any investigation into potential dishonesty gross misconduct or other circumstances which (if proved) would entitle the Company to dismiss you summarily.

5. SECRECY: You shall neither during your employment (except in the proper performance of your duties) nor at any time (without limit) after its termination directly or indirectly

• use for your own purposes or those of any other person, company, business entity or

other organization whatsoever; or

• disclose to any person, company, business entity or other organization whatsoever; any trade secrets or confidential information relating or belonging to the Company or any of its Associated Companies including but not limited to any such information relating to customers, customer lists or requirements. price lists or pricing structures, marketing and sales information, business plans or dealings, employees or officers, financial information and plans, designs, formulae, product lines, prototypes, services, research activities, source codes and computer systems, software, any document marked “Confidential” (or with a similar expression), or any information which you have been told is confidential or which you might reasonably expect the Company would regard as confidential, or any information which has been given to the Company or any Associated Company in confidence by customers, suppliers and other persons or any information.

• at any time during the continuance of your employment with the Company make any notes or memoranda relating to any matter within the scope of the Company's or any Associated Company's business, dealings or affairs otherwise than for the benefit of the Company or any Associated Company.

The obligations contained in this article shall not apply to any disclosures required by law, and shall cease to apply to any information or knowledge which may subsequently come into the public domain after the termination of your employment, other than by way of un- authorized disclosure.

You must not make or communicate (or cause or facilitate the making or communication of)

any oral or written statement to any representative of the press, television, radio or other media on any matter connected

with or relating to the Company or any of its Associated Companies, without the prior written consent of the Company.

6. EXCLUSIVITY OF SERVICE (WITH THE EXCEPTION OF WORK RELATED TO NON EXECUTIVE BOARD ROLE WITH TISSUEMED)

You are required to devote your full time, attention and abilities to your job duties during working hours, and to act in the best interests of the Company and its Associated Companies at all times. You must not, without the prior written consent of the Company, in any way directly or indirectly (i) be engaged or employed in, or (ii) concerned with (in any capacity whatsoever) or (iii) provide services to any other business or organization where this is, or is likely to be, in conflict or competition with the interests of the Company or its Associated Companies or where this may adversely affect the efficient discharge of your duties. The company agrees that you continue your role as Non Executive Board Member of the Company Tissuemed with an annual commitment of approximately 5 days and that any time taken for such duties will be deducted from annual vacation entitlement.

7. COPYRIGHT, INVENTIONS AND PATENTS: All records, documents, papers (including copies and summaries thereof) and other copyright protected works made or acquired by you in the course of your employment shall, together with all the worldwide copyright and design rights in all such works, be and at all times remain the absolute property of the Company. The cost of applications to secure patents or register designs of inventions will be borne by the Company and you are expected to communicate immediately any invention, improvement discovery, process or design copyright which you create or obtain in the course of your duties, which will become the absolute property of the Company. You and the Company acknowledge the provisions of current legislation related to Patents. If you make any inventions that do not belong to the Company under the law, (with the exception of any inventions which are not made under or are not related to your duties of employment under these Terms and Conditions). You agree that you will forthwith license or assign (as determined by the Company) to the Company their rights in relation to such inventions and will deliver to the Company all documents and other materials relating to them.

Any controversy about interpretation of this contract and all other disputes between the parties that might stem from this contract must be settled in accordance with Swiss law. This contract has been executed in two original copies, one given to each of the parties. Please confirm acceptance of our offer by signing all original documents (signature on the last page and initials on all other pages) and returning one full set of signed documents to the undersigned.

Yours sincerely,
/s/ Theo Vassiloudis	/s/ Carolyn Garcia Parris
Invacare International	Invacare International
Theo Vassiloudis	Carolyn Garcia Parris
VP Finance Europe	Director HR Europe

DECLARATION

I acknowledge receipt of, and agree to be bound by, the terms of this Contract of Employment.

Read and agreed	/s/ Gordan Sutherland	Date:	January 10, 2012
Gordan Sutherland

INVACARE CORPORATION

Invacare International Sari

Route de Cite Ouest 2 - 11% Gland -- Swit7zerland

Reception Tel: {41)22 354 6010- E-mail hqeuropc@ invacare.com

EX-10.AV

Exhibit 10(av)

Senior Executive’s Form

TECHNICAL INFORMATION & NON-COMPETITION AGREEMENT

THIS AGREEMENT (“Agreement”) is made and entered into as of this 6th day of April, 2008, between Invacare Corporation, an Ohio corporation, or any subsidiary or affiliate thereof now existing or existing at any time while Employee (as hereinafter defined) is employed or any successor-in-interest thereto (“Employer”) and Robert K. Gudbranson (“Employee”).

1. DEFINITIONS: As used herein the following words have the meanings specified:

(a)    “Intellectual Property” means designs, derivations, works of authorship, discoveries, improvements, innovations and ideas, or any other intellectual property right, whether or not patentable or copyrightable or otherwise registrable, relating to any part of the business or activities of Employer, including without limitation, novel or improved products, processes, machines, promotional or advertising materials, schemes and other manufacturing and sales techniques.

(b)    “Confidential Information” means financial information, marketing strategies, pricing policies or characteristics, user identification, passwords, computer software, screens, user interfaces, system designs and documentation, supplier information, customer information, product information or specifications, designs, drawings, plans or alterations, manufacturing, testing or assembly processes, costs of materials, business or business prospects, proposals, codes, research, reports, investigations, Intellectual Property, equipment, compositions, technology, formulas, trade secrets, know-how, research and development programs, sales methods, costs of production and overhead, and other confidential, technical or business information and data or other information of similar character which relate to Employer, its business or Employee’s employment.

(c)    “Competitor” means any person, firm or organization (and/or parent, subsidiary or affiliate thereof) engaged in or about to become engaged in research on, or the production and/or sale or distribution of any Competitive Product.

(d)    “Competitive Product” means a product which is similar to or competitive with a product manufactured and/or sold by Employer, or with respect to which Employer has conducted research, during the three (3) years immediately preceding termination of Employee’s employment.

2.    OBLIGATIONS OF EMPLOYEE: Employee is employed with or desirous of being employed by Employer in a capacity such that Employee has access to or expects to become informed of Confidential Information. In consideration of and as part of the terms of Employee’s employment by Employer and the payment of compensation to him/her by Employer, Employee agrees as follows:

(a)    Ownership of Intellectual Property: With respect to all Intellectual Property made, created or conceived by Employee, either alone or jointly with others, during or arising out of his or her employment with Employer or, based upon or derived from Confidential Information, all such Intellectual Property shall be the sole property of Employer and Employee agrees:

(I)    to promptly disclose in writing any such Intellectual Property to Employer;

(II)    to treat such Intellectual Property as the trade secrets and Confidential Information of Employer;

(III)    not to disclose such Intellectual Property to anyone; and

(IV)    not to use any such Intellectual Property for any other purpose other than in connection with Employee’s employment or for Employer’s sole benefit.

(b)    Assignment and Protection of Ownership Rights. Except as listed at the end of this Section 2(b), Employee hereby assigns to Employer all of his or her right, title and interest in and to any such Intellectual Propertyand to any and all patents or applications (design or otherwise), trademarks or service marks or applications therefor, copyright registrations or applications based thereon or any other Intellectual Property right. Employee agrees to execute, without further consideration, all documents requested by Employer:

(I)    to vest full title in the invention, design, discovery, derivation, improvement or work of authorship in Employer; and

(II)    to enable Employer to seek, register, maintain or enforce patent, design, copyright or other intellectual property protection thereon anywhere in the world.

Employee acknowledges and agrees that each work of authorship created by him or her and relating to Employee’s employment has been prepared for Employer as a work for hire. Employee agrees that in the event that any such work is not considered a work for hire under U.S. Copyright Law, Employee hereby assigns all copyrights in and to such work of authorship to Employer.

List of Intellectual Property excepted from this Section 2(b): ___________________________________________________________ (If none, so indicate).

(c)    Representations Regarding Deliverables. Employee represents and warrants that:

(I) all work products, deliverables, services, products and all other Intellectual Property delivered to Employer by Employee in connection with Employee’s performance of Employee’s work for Employer (“Deliverables”) do not infringe any Intellectual Property rights of any third parties and are not based on any Confidential Information of any third parties;

(II) that Employee has all rights necessary to provide such Deliverables to Employer under the terms of this Agreement;

(III) that such Deliverables are the original works of the Employee;

(IV) that such Deliverables do not belong to others; and

(V) that employment with Employer does not violate any restrictive covenants in any agreement previously entered into by Employee.

(d)Non-Disclosure of Confidential Information. Employee covenants and agrees that:

(I)    he or she will not transfer or disclose any Confidential Information;

(II)    Confidential Information will be kept confidential by Employee, will not be used in any manner which is detrimental to Employer, will only be used in connection with Employee’s employment, and will be safeguarded by Employee from unauthorized disclosure; and

(III)    he or she will not copy Confidential Information in whole or in part or use all or any part of Confidential Information to, without limitation, reverse engineer, duplicate the function, sequence or organization of Confidential Information for any purpose without the prior written permission of Employer.

(IV) he or she may not use or disclose without written authorization of any other company or entity or former employer any information that is considered confidential or is a trade secret of such other party.

(e)    Exclusions from Confidential Information. Employee will not be prevented from using or disclosing Confidential Information:

(I)    which Employee can demonstrate, by written records, was known to Employee before the disclosure to Employee by Employer or observation of Confidential Information by Employee; or

(II)    which is now, or becomes in the future, public knowledge other than by breach of this Agreement by Employee; or

(III)    which is lawfully obtained by Employee from a source independent of Employer, which source was lawfully in possession of the Confidential Information and which source had the unrestricted right to disclose or display the Confidential Information to Employee; or

(IV)    which is required by order of a court or regulatory authority having competent jurisdiction to be disclosed, provided that Employee shall inform Employer of the requirement for disclosure, shall permit Employer to attempt, by appropriate legal means, to limit such disclosure and Employee shall use appropriate efforts to limit the disclosure and maintain confidentiality to the extent possible.

(V)    which was independently developed by Employee without any use, knowledge or benefit of Confidential Information.

The confidentiality and non-use obligations of Employee with respect to Confidential Information under the terms of this Agreement shall remain in effect after termination of employment and until such Confidential Information is no longer confidential or proprietary to Employer or no longer nonpublic.

(f)    Return of Information. Immediately upon Employer’s request, Employee will return to Employer all Confidential Information and all memoranda, notes, records, reports, photographs, drawings, plans, papers and all other documents made or compiled by Employee or made available to him or her during the course of his or her employment, or copies, reproductions or abstracts thereof, whether or not such documents contain Confidential Information, and/or Employee will destroy, and certify to Employer as to such destruction, all Confidential Information and other materials.

(g)Post-Employment Non-Competition. For a period of two (2) years following the date Employee ceases to work for Employer, Employee shall not, anywhere in the world, directly or indirectly,

on his or her own behalf or on behalf of any other person or entity, render services or act as an officer, director, partner, agent, consultant or employee of, or otherwise assist any Competitor (excluding ownership of less than five percent (5%) of the stock of a publicly-held corporation whose stock is traded on a national securities exchange or in the over-the-counter market).

(h)    Post-Employment Non-Interference with Customer and Supplier Relationships. Employee covenants and agrees that he or she shall not, for a period of two (2) years following the date Employee ceases to work for Employer, directly or indirectly, on his or her own behalf or on behalf of any other person or entity, contact or do business with any customer or supplier of Employer with respect to any Competitive Product. This covenant applies to those customers and suppliers, and their respective affiliates, to which Employer has sold its products or services prior to the date Employee ceases to work for Employer, and those prospective customers and suppliers with which Employer has actively pursued sales or supply opportunities prior to the date Employee ceases to work for Employer.

(i)    Post-Employment Non-Recruitment. Employee agrees that Employer has and will invest substantial time and effort in acquiring and maintaining its workforce. Accordingly, Employee agrees that for a period of two (2) years following the date Employee ceases to work for Employer, Employee shall not: (I) hire away, or cause any other person or entity to hire away, any employee of Employer as of the date Employee ceases to work for Employer or, (II) directly or indirectly, on his or her own behalf or on behalf of any other person or entity, entice or solicit, or seek to induce or influence any such employee to leave his or her employment.

(j)    Disclosure of Conflicts of Interest. Employee agrees to promptly and fully disclose, and unless the Board of Directors of Employer consents, to refrain from engaging in, any activity which creates a conflict between Employee’s personal interests and the interests of Employer. Employee agrees and acknowledges that such conflicts may arise in the following illustrative situations as well as others: (I) ownership by Employee or by a relative of Employee of a substantial financial interest in any outside concern which does business with, or is a Competitor of Employer (except where such interest consists of an insubstantial percentage of a publicly owned corporation); (II) rendition of services to any outside concern, including Employee’s own or that of a close relative, which does business with, or is a Competitor of, Employer; (III) acceptance by Employee or a close relative of Employee of a gift (of more than token value), a loan (other than from an established financial institution), excessive entertainment, or other substantial favors from any outside concern which does business with, or is seeking to do business with, or is a Competitor of, Employer; (IV) representation of Employer in any transaction in which Employee has, or a close relative of Employee has, a substantial interest; (V) competition with Employer, directly or indirectly, in the purchase or sale of property or property rights or interest; and (VI) transaction of personal business with third persons in such a manner or under such circumstances as may cause the third person to believe he or she is dealing with Employer rather than Employee individually, such as by transacting personal business on stationery with Employer’s letterhead.

3.    EQUITABLE REMEDIES. Employee acknowledges that should he or she violate any of the covenants contained in this Agreement, it will be difficult to determine the resulting damages to Employer and, in addition to any other remedies Employer may have, Employer will be entitled to temporary injunctive relief without being required to post a bond and permanent injunctive relief without the necessity of proving actual damage. Employer may elect to seek any remedy at its sole discretion on a case by case basis. Failure to seek any remedy in one case will not restrict Employer from seeking any other remedy in another case nor will such action constitute a waiver of any of Employer’s rights.

4.    AT-WILL EMPLOYMENT. Employee’s employment is at-will. Subject to Employer’s policies and practices, either Employee or Employer may terminate Employee’s employment at any time, with or without cause or reason. The relationship between Employee and Employer is and shall be specifically limited to an employer/employee relationship. As a result, nothing contained in this Agreement or relating to any past, present or future relationship of the parties shall be construed as creating a partnership, joint venture, trustee/beneficiary or other type of fiduciary or business relationship.

5.    MISCELLANEOUS. This Agreement constitutes the entire agreement between the parties respecting the subject matter hereof and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written or oral. This Agreement may be modified only by written agreement signed by both parties. If any one or more of the provisions of this Agreement shall be held invalid or unenforceable, then such paragraph or provision shall become divisible and shall be amended immediately to include only such term and area as shall be considered reasonable and enforceable by the court properly construing such provision. No waiver of a breach of any term or terms of this Agreement will be effective unless such waiver is in writing and signed by the non-breaching party. No waiver of any breach will be deemed a waiver of any other or subsequent breach. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. This Agreement may be assigned by Employer without Employee’s consent. The validity, construction and effect of this Agreement shall be governed by the laws of the State of Ohio, and each of the parties hereto hereby submits to the jurisdiction of any federal court located in the State of Ohio for the purpose of enforcing this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.

Print Name: Robert K. Gudbranson

Signed: /s/ Robert K. Gudbranson

Employee Signature

Social Security Number: __________________

Employee Home Address:

______________________________________

                        ______________________________________

                        ______________________________________

Accepted for Employer this 8th day of April, 2008

INVACARE CORPORATION

By: /s/ Audrey White

Title: Corp HR Administrator

EX-10.AW

Exhibit 10(aw)

Two Year Form

TECHNICAL INFORMATION & NON-COMPETITION AGREEMENT

THIS AGREEMENT (“Agreement”) is made and entered into as of this 01 day of April, 2015, between Invacare Corporation, an Ohio corporation, or any subsidiary or affiliate thereof now existing or existing at any time while Employee (as hereinafter defined) is employed or any successor-in-interest thereto (“Employer”) and Matthew E. Monaghan (“Employee”). This Agreement is meant to supersede and replace the prior Technical Information and Non-Competition Agreement and any and all other agreements entered into and related to post-employment competition.

1. DEFINITIONS: As used herein the following words have the meanings specified:

(a)    “Intellectual Property” means designs, derivations, works of authorship, discoveries, improvements, innovations and ideas, or any other intellectual property right, whether or not patentable or copyrightable or otherwise registrable, relating to any part of the business or activities of Employer, including without limitation, novel or improved products, processes, machines, promotional or advertising materials, schemes and other manufacturing and sales techniques.

(b)    “Confidential Information” means financial information, marketing strategies, pricing policies or characteristics, user identification, passwords, computer software, screens, user interfaces, system designs and documentation, supplier information, customer information, product information or specifications, designs, drawings, plans or alterations, manufacturing, testing or assembly processes, costs of materials, business or business prospects, proposals, codes, research, reports, investigations, Intellectual Property, equipment, compositions, technology, formulas, trade secrets, know-how, research and development programs, sales methods, costs of production and overhead, and other confidential, technical or business information and data or other information of similar character which relate to Employer, its business or Employee’s employment.

(c)    “Competitor” means any person, firm or organization (and/or parent, subsidiary or affiliate thereof) engaged in or about to become engaged in research on, or the production and/or sale or distribution of any Competitive Product.

(d)    “Competitive Product” means a product which is similar to or competitive with a product manufactured and/or sold by Employer, or with respect to which Employer has conducted research, during the three (3) years immediately preceding termination of Employee’s employment.

2.    OBLIGATIONS OF EMPLOYEE: Employee is employed with or desirous of being employed by Employer in a capacity such that Employee has access to or expects to become informed of Confidential Information. In consideration of and as part of the terms of Employee’s employment by Employer and the payment of compensation to him/her by Employer, Employee agrees as follows:

(a)    Ownership of Intellectual Property: With respect to all Intellectual Property made, created or conceived by Employee, either alone or jointly with others, during or arising out of his or her employment

with Employer or, based upon or derived from Confidential Information, all such Intellectual Property shall be the sole property of Employer and Employee agrees:

(I)    to promptly disclose in writing any such Intellectual Property to Employer;

(II)    to treat such Intellectual Property as the trade secrets and Confidential Information of Employer;

(III)    not to disclose such Intellectual Property to anyone; and

(IV)    not to use any such Intellectual Property for any other purpose other than in connection with Employee’s employment or for Employer’s sole benefit.

(b)    Assignment and Protection of Ownership Rights. Except as listed at the end of this Section 2(b), Employee hereby assigns to Employer all of his or her right, title and interest in and to any such Intellectual Propertyand to any and all patents or applications (design or otherwise), trademarks or service marks or applications therefor, copyright registrations or applications based thereon or any other Intellectual Property right. Employee agrees to execute, without further consideration, all documents requested by Employer:

(I)    to vest full title in the invention, design, discovery, derivation, improvement or work of authorship in Employer; and

(II)    to enable Employer to seek, register, maintain or enforce patent, design, copyright or other intellectual property protection thereon anywhere in the world.

Employee acknowledges and agrees that each work of authorship created by him or her and relating to Employee’s employment has been prepared for Employer as a work for hire. Employee agrees that in the event that any such work is not considered a work for hire under U.S. Copyright Law, Employee hereby assigns all copyrights in and to such work of authorship to Employer.

List of Intellectual Property excepted from this Section 2(b): ___________________________________________________________ (If none, so indicate).

(c)    Representations Regarding Deliverables. Employee represents and warrants that:

(I) all work products, deliverables, services, products and all other Intellectual Property delivered to Employer by Employee in connection with Employee’s performance of Employee’s work for Employer (“Deliverables”) do not infringe any Intellectual Property rights of any third parties and are not based on any Confidential Information of any third parties;

(II) that Employee has all rights necessary to provide such Deliverables to Employer under the terms of this Agreement;

(III) that such Deliverables are the original works of the Employee;

(IV) that such Deliverables do not belong to others; and

(V) that employment with Employer does not violate any restrictive covenants in any agreement previously entered into by Employee.

(d)Non-Disclosure of Confidential Information. Employee covenants and agrees that:

(I)    he or she will not transfer or disclose any Confidential Information;

(II)    Confidential Information will be kept confidential by Employee, will not be used in any manner which is detrimental to Employer, will only be used in connection with Employee’s employment, and will be safeguarded by Employee from unauthorized disclosure;

(III)    he or she will not copy Confidential Information in whole or in part or use all or any part of Confidential Information to, without limitation, reverse engineer, duplicate the function, sequence or organization of Confidential Information for any purpose without the prior written permission of Employer; and

(IV)    he or she will not use or disclose the confidential information or trade secrets of any other company or entity, including, without limitation, vendors, customers or former employers, without their written authorization.

(e)    Exclusions from Confidential Information. Employee will not be prevented from using or disclosing Confidential Information:

(I)    which Employee can demonstrate, by written records, was known to Employee before the disclosure to Employee by Employer or observation of Confidential Information by Employee; or

(II)    which is now, or becomes in the future, public knowledge other than by breach of this Agreement by Employee; or

(III)    which is lawfully obtained by Employee from a source independent of Employer, which source was lawfully in possession of the Confidential Information and which source had the unrestricted right to disclose or display the Confidential Information to Employee; or

(IV)    which is required by order of a court or regulatory authority having competent jurisdiction to be disclosed, provided that Employee shall inform Employer of the requirement for disclosure, shall permit Employer to attempt, by appropriate legal means, to limit such disclosure and Employee shall use appropriate efforts to limit the disclosure and maintain confidentiality to the extent possible.

(V)    which was independently developed by Employee without any use, knowledge or benefit of Confidential Information.

The confidentiality and non-use obligations of Employee with respect to Confidential Information under the terms of this Agreement shall remain in effect after termination of employment and until such Confidential Information is no longer confidential or proprietary to Employer or no longer nonpublic.

(f)    Return of Information. Immediately upon Employer’s request, Employee will return to Employer all Confidential Information and all memoranda, notes, records, reports, photographs, drawings, plans, papers and all other documents made or compiled by Employee or made available to him or her during the course of his or her employment, or copies, reproductions or abstracts thereof, whether or not such documents contain Confidential Information, and/or Employee will destroy, and certify to Employer as to such destruction, all Confidential Information and other materials.

(g)Post-Employment Non-Competition. For a period of two (2) years following the date Employee ceases to work for Employer, Employee shall not, anywhere in the world in which Employer conducts business activity, directly or indirectly, on his or her own behalf or on behalf of any other person or entity, render services or act as an officer, director, partner, agent, consultant or employee of, or otherwise assist any Competitor (excluding ownership of less than five percent (5%) of the stock of a publicly-held corporation whose stock is traded on a national securities exchange or in the over-the-counter market).

(h)    Post-Employment Non-Interference with Customer and Supplier Relationships. Employee covenants and agrees that he or she shall not, for a period of two (2) years following the date Employee ceases to work for Employer, directly or indirectly, on his or her own behalf or on behalf of any other person or entity, contact or do business with any customer or supplier of Employer with respect to any Competitive Product. This covenant applies to those customers and suppliers, and their respective affiliates, to which Employer has sold its products or services prior to the date Employee ceases to work for Employer, and those prospective customers and suppliers with which Employer has actively pursued sales or supply opportunities prior to the date Employee ceases to work for Employer.

(i)    Post-Employment Non-Recruitment. Employee agrees that Employer has and will invest substantial time and effort in acquiring and maintaining its workforce. Accordingly, Employee agrees that for a period of two (2) years following the date Employee ceases to work for Employer, Employee shall not: (I) hire away, or cause any other person or entity to hire away, any employee of Employer as of the date Employee ceases to work for Employer or, (II) directly or indirectly, on his or her own behalf or on behalf of any other person or entity, entice or solicit, or seek to induce or influence any such employee to leave his or her employment.

(j)    Disclosure of Conflicts of Interest. Employee agrees to promptly and fully disclose, and unless the Board of Directors of Employer consents, to refrain from engaging in, any activity which creates a conflict between Employee’s personal interests and the interests of Employer. Employee agrees and acknowledges that such conflicts may arise in the following illustrative situations as well as others: (I) ownership by Employee or by a relative of Employee of a substantial financial interest in any outside concern which does business with, or is a Competitor of Employer (except where such interest consists of an insubstantial percentage of a publicly owned corporation); (II) rendition of services to any outside concern, including Employee’s own or that of a close relative, which does business with, or is a Competitor of, Employer; (III) acceptance by Employee or a close relative of Employee of a gift (of more than token value), a loan (other than from an established financial institution), excessive entertainment, or other substantial favors from any outside concern which does business with, or is seeking to do business with, or is a Competitor of, Employer; (IV) representation of Employer in any transaction in which Employee has, or a close relative of Employee has, a substantial interest; (V) competition with Employer, directly or indirectly, in the purchase or sale of property or property rights or interest; and (VI) transaction of personal business with third persons in such a manner or under such circumstances as may cause the third person to believe he or she is dealing with Employer rather than Employee individually, such as by transacting personal business on stationery with Employer’s letterhead.

3.    REASONABLE RESTRICTIONS: Employer and Employee expressly agree that the restrictions and covenants contained in this Agreement are needed to protect the valuable business interests of Employer and are reasonable as to time and geographic scope because of the nature of Employer’s business and the location of its competitors.

4.    REMEDIES. Employee acknowledges that should he or she violate or threaten to violate any of the covenants contained in this Agreement, it will be difficult to determine the resulting damages to Employer. In addition to any other remedies Employer may have, Employer will be entitled to temporary or preliminary injunctive relief without being required to post a bond and permanent injunctive relief without the necessity of proving actual damage. Employer may elect to seek any remedy at its sole discretion on a case by case basis. Failure to seek any remedy in one case will not restrict Employer from seeking any other remedy in another case nor will such action constitute a waiver of any of Employer’s rights. The prevailing party in an action filed to seek enforcement of or damages from a breach of this Agreement will be entitled to recover its attorneys’ fees and expenses.

5.    AT-WILL EMPLOYMENT. Employee’s employment is at-will. Subject to Employer’s policies and practices, either Employee or Employer may terminate Employee’s employment at any time, with or without cause or reason. The relationship between Employee and Employer is and shall be specifically limited to an employer/employee relationship. As a result, nothing contained in this Agreement or relating to any past, present or future relationship of the parties shall be construed as creating a partnership, joint venture, trustee/beneficiary or other type of fiduciary or business relationship.

6.    CHOICE OF FORUM AND LAW: Employer has its world headquarters located in Lorain County, Ohio. The parties therefore agree that to the extent permitted by law, any action to enforce or seek a declaration of rights under this Agreement shall be filed in state court in Lorain County, Ohio or federal court in the Northern District of Ohio. Additionally, because the parties have significant contacts in Ohio, to the extent permitted by law, the laws of the State of Ohio shall govern the enforcement and interpretation of this Agreement.

7.    MISCELLANEOUS. This Agreement constitutes the entire agreement between the parties respecting the subject matter hereof and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written or oral. This Agreement may be modified only by written agreement signed by both parties. If any one or more of the provisions of this Agreement shall be held invalid or unenforceable, then such paragraph or provision shall become divisible and shall be amended immediately to include only such term and area as shall be considered reasonable and enforceable by the court properly construing such provision. No waiver of a breach of any term or terms of this Agreement will be effective unless such waiver is in writing and signed by the non-breaching party. No waiver of any breach will be deemed a waiver of any other or subsequent breach. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. This Agreement may be assigned by Employer without Employee’s consent.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.

Print Name: Matthew E. Monaghan

Signed: /s/ Matthew E. Monaghan

Employee Signature

Social Security Number: __________________

Employee Home Address:

______________________________________

______________________________________

______________________________________

Accepted for Employer this 1st day of April, 2015

INVACARE CORPORATION

By: /s/ Anthony C. LaPlaca

Title: SVP & General Counsel

EX-10.AX

Exhibit 10(ax)

Two Year Form

TECHNICAL INFORMATION & NON-COMPETITION AGREEMENT

THIS AGREEMENT (“Agreement”) is made and entered into as of this _____ day of _________, 20___, between Invacare Corporation, an Ohio corporation, or any subsidiary or affiliate thereof now existing or existing at any time while Employee (as hereinafter defined) is employed or any successor-in-interest thereto (“Employer”) and ____________________________________ (“Employee”). This Agreement is meant to supersede and replace the prior Technical Information and Non-Competition Agreement and any and all other agreements entered into and related to post-employment competition.

1. DEFINITIONS: As used herein the following words have the meanings specified:

(a)    “Intellectual Property” means designs, derivations, works of authorship, discoveries, improvements, innovations and ideas, or any other intellectual property right, whether or not patentable or copyrightable or otherwise registrable, relating to any part of the business or activities of Employer, including without limitation, novel or improved products, processes, machines, promotional or advertising materials, schemes and other manufacturing and sales techniques.

(b)    “Confidential Information” means financial information, marketing strategies, pricing policies or characteristics, user identification, passwords, computer software, screens, user interfaces, system designs and documentation, supplier information, customer information, product information or specifications, designs, drawings, plans or alterations, manufacturing, testing or assembly processes, costs of materials, business or business prospects, proposals, codes, research, reports, investigations, Intellectual Property, equipment, compositions, technology, formulas, trade secrets, know-how, research and development programs, sales methods, costs of production and overhead, and other confidential, technical or business information and data or other information of similar character which relate to Employer, its business or Employee’s employment.

(c)    “Competitor” means any person, firm or organization (and/or parent, subsidiary or affiliate thereof) engaged in or about to become engaged in research on, or the production and/or sale or distribution of any Competitive Product.

(d)    “Competitive Product” means a product which is similar to or competitive with a product manufactured and/or sold by Employer, or with respect to which Employer has conducted research, during the three (3) years immediately preceding termination of Employee’s employment.

2.    OBLIGATIONS OF EMPLOYEE: Employee is employed with or desirous of being employed by Employer in a capacity such that Employee has access to or expects to become informed of Confidential Information. In consideration of and as part of the terms of Employee’s employment by Employer and the payment of compensation to him/her by Employer, Employee agrees as follows:

(a)    Ownership of Intellectual Property: With respect to all Intellectual Property made, created or conceived by Employee, either alone or jointly with others, during or arising out of his or her employment

with Employer or, based upon or derived from Confidential Information, all such Intellectual Property shall be the sole property of Employer and Employee agrees:

(I)    to promptly disclose in writing any such Intellectual Property to Employer;

(II)    to treat such Intellectual Property as the trade secrets and Confidential Information of Employer;

(III)    not to disclose such Intellectual Property to anyone; and

(IV)    not to use any such Intellectual Property for any other purpose other than in connection with Employee’s employment or for Employer’s sole benefit.

(b)    Assignment and Protection of Ownership Rights. Except as listed at the end of this Section 2(b), Employee hereby assigns to Employer all of his or her right, title and interest in and to any such Intellectual Propertyand to any and all patents or applications (design or otherwise), trademarks or service marks or applications therefor, copyright registrations or applications based thereon or any other Intellectual Property right. Employee agrees to execute, without further consideration, all documents requested by Employer:

(I)    to vest full title in the invention, design, discovery, derivation, improvement or work of authorship in Employer; and

(II)    to enable Employer to seek, register, maintain or enforce patent, design, copyright or other intellectual property protection thereon anywhere in the world.

Employee acknowledges and agrees that each work of authorship created by him or her and relating to Employee’s employment has been prepared for Employer as a work for hire. Employee agrees that in the event that any such work is not considered a work for hire under U.S. Copyright Law, Employee hereby assigns all copyrights in and to such work of authorship to Employer.

List of Intellectual Property excepted from this Section 2(b): ___________________________________________________________ (If none, so indicate).

(c)    Representations Regarding Deliverables. Employee represents and warrants that:

(I) all work products, deliverables, services, products and all other Intellectual Property delivered to Employer by Employee in connection with Employee’s performance of Employee’s work for Employer (“Deliverables”) do not infringe any Intellectual Property rights of any third parties and are not based on any Confidential Information of any third parties;

(II) that Employee has all rights necessary to provide such Deliverables to Employer under the terms of this Agreement;

(III) that such Deliverables are the original works of the Employee;

(IV) that such Deliverables do not belong to others; and

(V) that employment with Employer does not violate any restrictive covenants in any agreement previously entered into by Employee.

(d)Non-Disclosure of Confidential Information. Employee covenants and agrees that:

(I)    he or she will not transfer or disclose any Confidential Information;

(II)    Confidential Information will be kept confidential by Employee, will not be used in any manner which is detrimental to Employer, will only be used in connection with Employee’s employment, and will be safeguarded by Employee from unauthorized disclosure;

(III)    he or she will not copy Confidential Information in whole or in part or use all or any part of Confidential Information to, without limitation, reverse engineer, duplicate the function, sequence or organization of Confidential Information for any purpose without the prior written permission of Employer; and

(IV)    he or she will not use or disclose the confidential information or trade secrets of any other company or entity, including, without limitation, vendors, customers or former employers, without their written authorization.

(e)    Exclusions from Confidential Information. Employee will not be prevented from using or disclosing Confidential Information:

(I)    which Employee can demonstrate, by written records, was known to Employee before the disclosure to Employee by Employer or observation of Confidential Information by Employee; or

(II)    which is now, or becomes in the future, public knowledge other than by breach of this Agreement by Employee; or

(III)    which is lawfully obtained by Employee from a source independent of Employer, which source was lawfully in possession of the Confidential Information and which source had the unrestricted right to disclose or display the Confidential Information to Employee; or

(IV)    which is required by order of a court or regulatory authority having competent jurisdiction to be disclosed, provided that Employee shall inform Employer of the requirement for disclosure, shall permit Employer to attempt, by appropriate legal means, to limit such disclosure and Employee shall use appropriate efforts to limit the disclosure and maintain confidentiality to the extent possible.

(V)    which was independently developed by Employee without any use, knowledge or benefit of Confidential Information.

The confidentiality and non-use obligations of Employee with respect to Confidential Information under the terms of this Agreement shall remain in effect after termination of employment and until such Confidential Information is no longer confidential or proprietary to Employer or no longer nonpublic.

(f)    Return of Information. Immediately upon Employer’s request, Employee will return to Employer all Confidential Information and all memoranda, notes, records, reports, photographs, drawings, plans, papers and all other documents made or compiled by Employee or made available to him or her during the course of his or her employment, or copies, reproductions or abstracts thereof, whether or not such documents contain Confidential Information, and/or Employee will destroy, and certify to Employer as to such destruction, all Confidential Information and other materials.

(g)Post-Employment Non-Competition. For a period of two (2) years following the date Employee ceases to work for Employer, Employee shall not, anywhere in the world in which Employer conducts business activity, directly or indirectly, on his or her own behalf or on behalf of any other person or entity, render services or act as an officer, director, partner, agent, consultant or employee of, or otherwise assist any Competitor (excluding ownership of less than five percent (5%) of the stock of a publicly-held corporation whose stock is traded on a national securities exchange or in the over-the-counter market).

(h)    Post-Employment Non-Interference with Customer and Supplier Relationships. Employee covenants and agrees that he or she shall not, for a period of two (2) years following the date Employee ceases to work for Employer, directly or indirectly, on his or her own behalf or on behalf of any other person or entity, contact or do business with any customer or supplier of Employer with respect to any Competitive Product. This covenant applies to those customers and suppliers, and their respective affiliates, to which Employer has sold its products or services prior to the date Employee ceases to work for Employer, and those prospective customers and suppliers with which Employer has actively pursued sales or supply opportunities prior to the date Employee ceases to work for Employer.

(i)    Post-Employment Non-Recruitment. Employee agrees that Employer has and will invest substantial time and effort in acquiring and maintaining its workforce. Accordingly, Employee agrees that for a period of two (2) years following the date Employee ceases to work for Employer, Employee shall not: (I) hire away, or cause any other person or entity to hire away, any employee of Employer as of the date Employee ceases to work for Employer or, (II) directly or indirectly, on his or her own behalf or on behalf of any other person or entity, entice or solicit, or seek to induce or influence any such employee to leave his or her employment.

(j)    Disclosure of Conflicts of Interest. Employee agrees to promptly and fully disclose, and unless the Board of Directors of Employer consents, to refrain from engaging in, any activity which creates a conflict between Employee’s personal interests and the interests of Employer. Employee agrees and acknowledges that such conflicts may arise in the following illustrative situations as well as others: (I) ownership by Employee or by a relative of Employee of a substantial financial interest in any outside concern which does business with, or is a Competitor of Employer (except where such interest consists of an insubstantial percentage of a publicly owned corporation); (II) rendition of services to any outside concern, including Employee’s own or that of a close relative, which does business with, or is a Competitor of, Employer; (III) acceptance by Employee or a close relative of Employee of a gift (of more than token value), a loan (other than from an established financial institution), excessive entertainment, or other substantial favors from any outside concern which does business with, or is seeking to do business with, or is a Competitor of, Employer; (IV) representation of Employer in any transaction in which Employee has, or a close relative of Employee has, a substantial interest; (V) competition with Employer, directly or indirectly, in the purchase or sale of property or property rights or interest; and (VI) transaction of personal business with third persons in such a manner or under such circumstances as may cause the third person to believe he or she is dealing with Employer rather than Employee individually, such as by transacting personal business on stationery with Employer’s letterhead.

3.    REASONABLE RESTRICTIONS: Employer and Employee expressly agree that the restrictions and covenants contained in this Agreement are needed to protect the valuable business interests of Employer and are reasonable as to time and geographic scope because of the nature of Employer’s business and the location of its competitors.

4.    REMEDIES. Employee acknowledges that should he or she violate or threaten to violate any of the covenants contained in this Agreement, it will be difficult to determine the resulting damages to Employer. In addition to any other remedies Employer may have, Employer will be entitled to temporary or preliminary injunctive relief without being required to post a bond and permanent injunctive relief without the necessity of proving actual damage. Employer may elect to seek any remedy at its sole discretion on a case by case basis. Failure to seek any remedy in one case will not restrict Employer from seeking any other remedy in another case nor will such action constitute a waiver of any of Employer’s rights. The prevailing party in an action filed to seek enforcement of or damages from a breach of this Agreement will be entitled to recover its attorneys’ fees and expenses.

5.    AT-WILL EMPLOYMENT. Employee’s employment is at-will. Subject to Employer’s policies and practices, either Employee or Employer may terminate Employee’s employment at any time, with or without cause or reason. The relationship between Employee and Employer is and shall be specifically limited to an employer/employee relationship. As a result, nothing contained in this Agreement or relating to any past, present or future relationship of the parties shall be construed as creating a partnership, joint venture, trustee/beneficiary or other type of fiduciary or business relationship.

6.    CHOICE OF FORUM AND LAW: Employer has its world headquarters located in Lorain County, Ohio. The parties therefore agree that to the extent permitted by law, any action to enforce or seek a declaration of rights under this Agreement shall be filed in state court in Lorain County, Ohio or federal court in the Northern District of Ohio. Additionally, because the parties have significant contacts in Ohio, to the extent permitted by law, the laws of the State of Ohio shall govern the enforcement and interpretation of this Agreement.

7.    MISCELLANEOUS. This Agreement constitutes the entire agreement between the parties respecting the subject matter hereof and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written or oral. This Agreement may be modified only by written agreement signed by both parties. If any one or more of the provisions of this Agreement shall be held invalid or unenforceable, then such paragraph or provision shall become divisible and shall be amended immediately to include only such term and area as shall be considered reasonable and enforceable by the court properly construing such provision. No waiver of a breach of any term or terms of this Agreement will be effective unless such waiver is in writing and signed by the non-breaching party. No waiver of any breach will be deemed a waiver of any other or subsequent breach. This Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. This Agreement may be assigned by Employer without Employee’s consent.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.

Print Name: ___________________________

Signed: _______________________________

Employee Signature

Social Security Number: __________________

Employee Home Address:

______________________________________

______________________________________

______________________________________

Accepted for Employer this ________ day of ______________________________, 20 ___

INVACARE CORPORATION

By: __________________________________

Title: _________________________________

Schedule of Technical Information & Non-Competition Agreement with Current Executive Officers

Name	Position	Date of Agreement
Patricia A. Stumpp	Senior Vice President—Human Resources	January 28, 2011
Anthony C. LaPlaca	Senior Vice President, General Counsel and Secretary	April 19, 2011
Dean J. Childers	Senior Vice President and General Manager, North America	August 25, 2015

EX-10.AY

Exhibit 10(ay)

July 31, 2008

Mr. Anthony LaPlaca

343 Cheyenne Falls

Avon Lake, Ohio 44012

Dear Anthony:

We are pleased to confirm our offer of the position of Senior Vice President and General Counsel reporting directly to A. Malachi Mixon, III, Chairman and CEO.

The following represents the terms and conditions of your employment:

1. Salary

Your starting base salary for this position will be $26,250 per month, which is $315,000 when calculated on an annual basis.

2. Bonus

Beginning in January, 2009, as a member of Invacare’s senior management group, your target bonus eligibility will be at the seventy-fifth (75th) percent bonus level. This bonus will be based on corporate performance. For Plan Year 2009, we will guarantee a half payout of your bonus, payable in early 2010. We will also pay you the one-time bonus make up of $88,025 no later than March, 2009.

3. Stock Option Program

Upon acceptance of our offer, you will be eligible to receive non-qualified options to purchase 20,000 shares, without par value, of Invacare stock pursuant to the Company’s Executive Stock Option Plan. Stock options vest at a rate of 25% per year with an exercise period of ten (10) years. Options are granted and priced based on your start date.

4. Restricted Stock

Upon acceptance of our offer, you will be eligible to receive a restricted stock grant in the amount of 3,000 shares. Restrictions lapse at 25% per year. Shares are granted and priced on your start date.

5. Benefits

Medical - You will be eligible to participate in Invacare’s flexible benefits program, which includes medical, dental and vision coverage, as well as increased term life insurance for eligible dependents. This program will be available to you on the first day of the month following employment. In addition, you will be eligible for the Company’s Life Insurance, Short and Long Term Disability, Retirement Plan and Educational Assistance programs. The average benefit package adds approximately 28% to your base salary.

Retirement Plan - Invacare offers a qualified plan, The Invacare Retirement Savings Plan, and a non-qualified plan, The dcPlus Plan (“Plus Plan”). The Invacare Retirement Savings Plan includes a 401(k) program, Employer Match and Invacare Quarterly Contribution (IQC). The Plus Plan is offered to those individuals whose annual income exceeds $100,000 and includes an enhanced employee contribution plan along with the Employer Match and Invacare Quarterly Contribution. The Plus Plan allows you to contribute up to 50% of your salary and 100% of bonus. Invacare will make matching contributions equal to 100% of the first 1% of your salary deferrals, plus 50% of the next 2% of your salary deferrals after you have completed six months of service. The Quarterly Contribution is equal to 4% of your eligible quarterly earnings and will be made at the conclusion of each calendar quarter after you have completed six months of service. You do not have to contribute to either Plan to receive the Quarterly Contribution.

Vacation - You are eligible for five (5) weeks vacation beginning in January, 2009.

6. Executive Benefits (Additional details of each of these plans are enclosed)

Supplemental Executive Retirement Plan (SERP) - You will be eligible to participate in the Invacare SERP. The SERP is a non-qualified plan that provides retirement income to supplement income available from Invacare’s qualified plans and to supplement The dcPlus Plan. The Target Retirement Ratio is 50% of final compensation.

Life Insurance Plan - You will be eligible to participate in the Executive Life Insurance plan. This plan provides a level of death benefit equal to three (3) times compensation at pre-retirement and one (1) times final compensation at post-retirement.

Disability Income Plan - You will be eligible to participate in the Executive Disability Income Plan. This disability plan, combined with the Invacare Group Long Term Disability Income plan, can provide disability income of up to 70% of your compensation.

Health Management Program - You will be eligible to participate in the Executive Health Management Program. Through this program, you will be entitled to one physical exam every two years performed at the Cleveland Clinic Department of Preventative Medicine.

Personal Liability - Invacare will also provide 5 million dollars of personal umbrella coverage over certain underlying retention amounts. This coverage provides you with liability coverage anywhere in the world subject to the terms and conditions of the policy.

7. Severance

If you are terminated for any reason other than cause during your employment, you will be provided one year of salary continuation as severance pay. You will also receive a prorata portion of your target bonus based on the date of termination. In addition, Invacare will continue to provide health insurance during your severance period, or until you obtain employment that provides you with such coverage, whichever comes first.

Termination for cause is defined as fraud, misrepresentation, theft or embezzlement of company assets, intentional violations of law or company policies or a substantial failure to perform assigned duties.

8. Change of Control

The Change in Control agreement would include provisions for a lump sum cash amount equal to three (3) times annual base salary plus target bonus and continued participation in the Company’s employee benefit plans, as described in more detail in our Annual Proxy Statement.

This offer is contingent upon verification of employment under the provisions of the Immigration Reform and Control Act of 1986. Upon reporting to work, you will be required to present your Social Security card or birth certificate and state-issued photo identification.

You will be required to review and sign a non-compete agreement and a conflict of interest document as a condition of your employment.

This offer is also contingent upon you successfully completing a pre-employment drug screen, post-offer physical examination and reference-checking process. Please contact Ann Wilgor at 440/329-6906 to arrange for your drug screen and post-offer physical examination.

Anthony, we are excited at the prospect of you joining the Invacare team. Upon signing this offer, a mutually agreed upon start date will be determined. In the interim, if there are any questions regarding this offer, please contact me at 440/329-6427.

Sincerely,

/s/ Joseph Usaj

Joseph Usaj

Senior Vice President - Human Resources

cc: Mal Mixon

Dale LaPorte

I acknowledge acceptance of this offer and its conditions for the position of Senior Vice President and General Counsel, and have signed two copies of this letter and am returning one to your attention.

/s/ Anthony C. LaPlacaAugust 5, 2018

Signature                            Date

EX-10.AZ

Exhibit 10(az)

PERSONAL AND CONFIDENTIAL

April 15, 2015

Mr. Dean Childers

217 Eagle Cliff Cove

Huntertown, IN 46748

Dear Dean:

We are pleased to confirm our offer for the position of Senior Vice President – Strategic Initiatives with Invacare Corporation, reporting directly to me.

The following represents the terms and conditions of your employment:

Compensation

Salary – Your starting base salary for this position will be $350,000.00 when calculated on an annual basis. This rate is calculated for convenience purposes only and is not intended to be construed as a contract of employment for any fixed period of time.

Bonus – You are eligible to participate in the Key Management Incentive Plan at the 62.50% level. Evaluation of your performance will be made on a pro-rata basis, determined by your length of service in 2015. Payment of any bonus earned under this plan will be made by March 15, 2016.

Sign-On Bonus – You will receive a sign-on bonus in the amount of $100,000; $70,000 of which will be paid on the first day of employment with Invacare. The balance of which, $30,000, to be paid within sixty days of your first day of employment with Invacare. You are responsible for all applicable taxes associated with this payment. This Sign-On Bonus is also intended offset the approximately $75,000 you will owe your previous employer upon resignation. In the event that you leave Invacare prior to one year from your hire date, you will be responsible to pay back this amount, paid in full to Invacare.

Restricted stock

Upon acceptance of our offer, you will be eligible to receive a restricted stock grant in the amount of 11,000 shares.  Restrictions will lapse on one-third of the grant each year over the next three years.  Restricted Shares are granted on your start date.  Once granted, you will receive certificates with additional details about the restricted shares.  Subject to review and approval by the Compensation Committee of the Board of Directors of Invacare Corporation, you will be eligible to receive restricted stock grants on an annual basis.

Severance Payment

In the event that your employment is terminated by Invacare without cause, you will receive a severance benefit in the amount equal to six months of your base salary in effect at the time of termination. For purposes of this paragraph, termination by Invacare without cause shall mean termination by Invacare for any reason other

than (a) death, (b) disability, (c) failure by you to perform the duties and responsibilities of your position, (d) conduct by you which adversely affects Invacare’s business reputation or which is otherwise contrary to the best interests of Invacare and/or (e) a breach by you of the terms of this letter or the Technical Information and Non-Competition Agreement and conflict of interest documents referred to below. Termination by Invacare for any of the reasons set forth in (a)-(e) of the preceding sentence shall be termination for cause.

Change of Control

Invacare will provide a Change of Control Agreement within 30 days of hire. This Agreement will specify that if your employment is terminated as the result of a change of control you will receive 12 months of severance.

Benefits

Health Benefits – You will be eligible to participate in Invacare’s comprehensive benefits program whichincludes: medical, prescription, dental, and vision coverage; life insurance; and short- and long-term disability. This program will be available to you on the first day of the month following employment.

Retirement Plan – The Invacare Retirement Savings Plan includes a 401(k) program, Employer Match and a Discretionary Invacare Quarterly Contribution (IQC). You may begin contributing to the 401(k) program immediately and will be eligible to receive the Employer Match after six months of service. Should you choose to participate in the 401(k) program, Invacare will make matching contributions equal to 100% of the first 1% of your salary deferrals, plus 50% of the next 2% of your salary deferrals after you have completed six months of service.

Enhanced Retirement Plan – Additionally, because your annual income meets or exceeds the IRS Highly Compensated Limit, you will be eligible to participate in our non-qualified retirement savings plan, the Deferred Compensation Plan (“dcPlus Plan), effective January 1, 2016. This plan allows you to maximize salary deferrals and employer contributions on compensation that exceeds annual limits.

Vacation – You are eligible for three weeks of vacation.

Health Management Program – You will be eligible to participate in the Executive Health Management Program at the Cleveland Clinic Department of Preventative Medicine.

Relocation & Related Taxes

You will be eligible for the Invacare’s relocation program. Per the guidelines in the attached Relocation Policy, if you voluntarily terminate employment or are terminated for cause within twenty-four (24) months from the effective date of relocation or hire, relocation benefits will cease immediately and you must repay all or a prorated amount of the relocation expenses previously reimbursed or paid by the Company. Details of the package are provided in the attached Relocation Policy and Benefit Package. To participate in the Company’s program, please contact Ann Wilgor, Invacare’s Relocation Administrator, at 440/329-6006 to begin the process. Please do not contact a realtor or related party prior to contacting Ann.

This offer is contingent upon verification of your eligibility for employment under the provisions of the Immigration Reform and Control Act of 1986. Prior to the first day you report for work, you will receive an email directing you to complete Section I of the Federal I-9 form on-line. On the first day you report for work, please bring with you a valid driver’s license and original Social Security card, or other identification acceptable for employment identification, and present it to your Human Resources representative.

You will be required to review and sign a technical information and non-competition agreement, and a conflict of interest document as a condition of your employment.

This offer is also contingent upon you successfully completing a pre-employment drug screen, background investigation and reference-checking process. Upon accepting this offer, you will receive an email instructing you how to initiate the background investigation through our on-line vendor. You will receive a second email with instructions for completing your pre-employment drug screen at a local drug screening facility.

Dean, we are excited about having you join the Invacare team. Upon signing this offer, a mutually agreed upon start date will be determined. In the interim, if there are any questions regarding this offer, please contact me at (440) 329-6101.

Sincerely,

/s/ Matthew E. Monaghan

Matthew E. Monaghan

President and Chief Executive Officer

To acknowledge acceptance of this offer, please sign below and return one copy to me.

/s/ Dean J. Childers	April 19, 2015
Signature	Date

EX-21

Exhibit 21

Invacare Corporation Subsidiaries

1	Adaptive Switch Laboratories, Inc., a Texas corporation.
2	Alber GmbH, a German limited liability company.
3	Alber GmbH, a Swiss corporation.
4	Alber USA, LLC, an Ohio limited liability company.
5	Aquatec Operations GmbH, a German limited liability company.
6	Carroll Healthcare General Partner Inc., an Ontario corporation.
7	Carroll Healthcare, Inc., an Ontario corporation.
8	Carroll Healthcare, LP, an Ontario limited partnership.
9	Dolomite AB, a Swedish corporation.
10	Dynamic Connect (Suzhou) Hi-Tech Electronics Co., Ltd., a Chinese company.
11	Dynamic Controls, a New Zealand corporation.
12	Dynamic Europe Ltd., a UK corporation.
13	Dynamic Suzhou Holdings New Zealand, a New Zealand corporation.
14	Freedom Designs, Inc., a California corporation.
15	Garden City Medical Inc., a Delaware corporation.
16	Invacare AB, a Swedish corporation.
17	Invacare AG, a Swiss corporation.
18	Invacare A/S, a Danish corporation.
19	Invacare AS, a Norwegian corporation.
20	Invacare GmbH, a German corporation.
21	Invacare Asia Ltd., a Hong Kong company.
22	Invacare Australia Pty Limited, an Australian corporation.
23	Invacare Austria GmbH, an Austrian corporation.
24	Invacare B.V., a Netherlands corporation.
25	Invacare Canada Finance LLC, a Delaware limited liability company.
26	Invacare Canada General Partners Inc., a Canadian corporation.
27	Invacare Canada LP, an Ontario partnership.
28	Invacare Canadian Holdings, Inc., a Delaware corporation.
29	Invacare Canadian Holdings, LLC, a Delaware limited liability company.
30	Invacare Continuing Care, Inc., a Missouri corporation.
31	Invacare Credit Corporation, an Ohio corporation.
32	Invacare Dolomite AB, a Swedish corporation.
33	Invacare (Deutschland) GmbH, a German corporation.
34	Invacare Florida Corporation, a Delaware corporation.
35	Invacare Florida Holdings, LLC, a Delaware limited liability company.
36	Invacare France Operations SAS, a French corporation.
37	Invacare Germany Holding GmbH, a German corporation.
38	Invacare Holdings AS, a Norwegian corporation.
39	Invacare Holdings C.V., a Netherlands partnership.
40	Invacare Holdings LLC, an Ohio limited liability corporation.
41	Invacare Holdings New Zealand, a New Zealand corporation.
42	Invacare Holdings SARL, a Luxembourg corporation.
43	Invacare Holdings Two AB, a Swedish corporation.
44	Invacare Holdings Two B.V., a Netherlands corporation.

45	Invacare Holdings Two SARL, a Luxembourg corporation.
46	Invacare Ireland Ltd., an Ireland corporation.
47	Invacare International Corporation, an Ohio corporation.
48	Invacare International SARL, a Swiss corporation.
49	Invacare Limited, a UK corporation.
50	Invacare Mauritius Holdings, a Republic of Mauritius company.
51	Invacare MeccSan Srl, an Italian corporation.
52	Invacare New Zealand, a New Zealand corporation.
53	Invacare NV, a Belgium corporation.
54	Invacare Rehabilitation Equipment (Suzhou) Company, Ltd., a Chinese company.
55	Invacare Poirier SAS, a French corporation.
56	Invacare (Portugal)—Sociedade Industrial e Comercial de Ortopedia, Lda., a Portuguese company.
57	Invacare (Portugal) II—Material Ortopedico, Lda., a Portuguese company.
58	Invacare Rea AB, a Swedish corporation.
59	Invacare S.A., a Spanish corporation.
60	Invacare UK Operations Ltd., a UK corporation.
61	Invacare Verwaltungs GmbH, A German limited liability company.
62	Invamex Holdings LLC, a Delaware limited liability company.
63	Invamex S.A. de R.L. de C.V., a Mexican corporation.
64	Invatection Insurance Company, a Vermont corporation.
65	Kuschall AG, a Swiss corporation.
66	Medbloc, Inc., a Delaware corporation.
67	Motion Concepts, L.P., an Ontario limited partnership.
68	Perpetual Motion Enterprises Limited, an Ontario corporation.
69	Scandinavian Mobility International ApS, a Danish corporation.
70	The Aftermarket Group, Inc., a Delaware corporation.
71	The Helixx Group, Inc., an Ohio corporation.

Note that all entities are direct or indirect wholly owned subsidiaries.

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement (Form S-8, No. 33-87052) dated December 5, 1994 pertaining to the Invacare Corporation stock option plans,

(2) Registration Statement (Form S-8, No. 333-57978) dated March 30, 2001 pertaining to the Invacare Corporation stock option plans,

(3) Registration Statement (Form S-8, No. 333-109794) dated October 17, 2003 pertaining to the Invacare Corporation stock option plans,

(4) Registration Statement (Form S-8, No. 333-136391) dated August 8, 2006 pertaining to the Invacare Corporation stock option plans,

(5) Registration Statement (Form S-3/A, No. 333-142311) of Invacare Corporation dated May 24, 2007,

(6) Registration Statement (Form S-8, No. 333-161109) dated August 6, 2009 pertaining to the Invacare Corporation stock option plans; and

(7) Registration Statement (Form S-8, No. 333-188803) dated May 23, 2013 pertaining to the Invacare Corporation equity compensation plan;

of our reports dated March 3, 2016, with respect to the consolidated financial statements and schedule of Invacare Corporation and subsidiaries and the effectiveness of internal control over financial reporting of Invacare Corporation, included in this Annual Report (Form 10-K) of Invacare Corporation for the year ended December 31, 2015.

/s/  Ernst & Young LLP

Cleveland, Ohio

March 3, 2016

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Matthew E. Monaghan, certify that:

1. I have reviewed this annual report on Form 10-K of Invacare Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

		INVACARE CORPORATION
		/s/    MATTHEW E. MONAGHAN
Date:	March 3, 2016	Matthew E. Monaghan Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Robert K. Gudbranson, certify that:

1. I have reviewed this annual report on Form 10-K of Invacare Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

		INVACARE CORPORATION
		/s/    ROBERT K. GUDBRANSON
Date:	March 3, 2016	Chief Financial Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification

Pursuant to Section 18 U.S.C. Section 1350,

as adopted pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Invacare Corporation (the “company”) on Form 10-K for the period ending December 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew E. Monaghan, Chief Executive Officer of the company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.

		/s/    MATTHEW E. MONAGHAN
Date:	March 3, 2016	Matthew E. Monaghan Chief Executive Officer (Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Invacare Corporation and will be retained by Invacare Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

Certification

Pursuant to Section 18 U.S.C. Section 1350,

as adopted pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Invacare Corporation (the “company”) on Form 10-K for the period ending December 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert K. Gudbranson, Chief Financial Officer of the company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.

		/s/    ROBERT K. GUDBRANSON
Date:	March 3, 2016	Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Invacare Corporation and will be retained by Invacare Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 01, 2016	Jun. 30, 2015
Entity Information [Line Items]
Entity Registrant Name	INVACARE CORPORATION
Entity Central Index Key	0000742112
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 660,426,735
Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		31,834,488
Class B Common Shares
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		733,309

XML

Consolidated Statement Of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Net sales		$ 1,142,338	$ 1,270,163	$ 1,334,505
Cost of products sold		829,514	922,775	967,079
Gross Profit		312,824	347,388	367,426
Selling, general and administrative expenses		319,847	383,913	397,332
Charges related to restructuring activities		1,971	11,112	9,336
Asset write-downs to intangible assets		0	13,041	1,523
Interest expense		2,911	3,039	3,078
Interest income		(165)	(507)	(384)
Loss from Continuing Operations Before Income Taxes		(11,740)	(63,210)	(43,459)
Income taxes		14,710	5,550	10,875
Net Loss from Continuing Operations		(26,450)	(68,760)	(54,334)
Net earnings from discontinued operations (net of tax of $0; $1,200 and $2,235)		0	1,596	6,442
Gain on sale (net of tax of $140; $5,975 and $1,220)		260	11,094	80,943
Total Net Earnings from Discontinued Operations		260	12,690	87,385
Net Earnings (loss)		$ (26,190)	$ (56,070)	$ 33,051
Net Earnings (loss) per Share—Basic:
Net loss from continuing operations - Basic (in dollars per share)		$ (0.82)	$ (2.15)	$ (1.70)
Net earnings (loss) from discontinued operations - Basic (in dollars per share		0.01	0.40	2.74
Net Earnings (loss) per Share - Basic (in dollars per share)		$ (0.81)	$ (1.75)	$ 1.04
Weighted Average Shares Outstanding - Basic (in shares)		32,171	32,009	31,915
Net Earnings (loss) per Share—Assuming Dilution:
Net loss from continuing operations assuming dilution (in dollars per share)	[1]	$ (0.82)	$ (2.15)	$ (1.70)
Net earnings (loss) from discontinued operations assuming dilution (in dollars per share)		0.01	0.39	2.73
Net Earnings (loss) per Share - Assuming Dilution (in dollars per share)	[1]	$ (0.81)	$ (1.75)	$ 1.03
Weighted Average Shares Outstanding - Assuming Dilution (in shares)		32,683	32,197	32,043
Other comprehensive income (loss):
Foreign currency translation adjustments		$ (81,404)	$ (51,508)	$ 10,969
Defined benefit plans:
Amortization of prior service costs and unrecognized gains (losses)		(1,375)	(2,178)	1,771
Amounts arising during the year, primarily addition of new participants		(784)	0	(320)
Deferred tax adjustment resulting from defined benefit plan activity		(44)	213	(355)
Valuation reserve (reversal) associated with defined benefit plan activity		47	(222)	275
Current period gain (loss) on cash flow hedges		2,731	244	83
Deferred tax benefit (loss) related to gain (loss) on cash flow hedges		(177)	(86)	(10)
Other Comprehensive Income (Loss)		(81,006)	(53,537)	12,413
Comprehensive Income (Loss)		$ (107,196)	$ (109,607)	$ 45,464

[1] Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

XML

Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Income Tax Expense (Benefit), Discontinued Operations	$ 0	$ 1,200	$ 2,235
Income Tax Expense (Benefit) on Gain (Loss), Discontinued Operations	$ 140	$ 5,975	$ 1,220

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 60,055	$ 38,931
Trade receivables, net	133,655	154,207
Installment receivables, net	1,145	1,054
Inventories, net	132,807	155,561
Deferred income taxes	0	2,048
Other current assets	34,459	36,798
Disposal Group, Including Discontinued Operation, Assets, Current	0	17,388
Total Current Assets	362,121	405,987
Other Assets	4,659	19,053
Intangibles	31,000	38,013
Property and Equipment, net	78,683	79,659
Goodwill	361,680	421,019
Total Assets	838,143	963,731
Current Liabilities
Accounts payable	105,608	119,927
Accrued expenses	122,420	155,699
Current taxes, payable and deferred	17,588	12,634
Short-term debt and current maturities of long-term obligations	2,028	959
Disposal Group, Including Discontinued Operation, Liabilities	0	1,013
Total Current Liabilities	247,644	290,232
Long-Term Debt	45,092	19,372
Other Long-Term Obligations	82,589	88,805
Shareholders’ Equity
Preferred Shares (Authorized 300 shares; none outstanding)	0	0
Additional paid-in-capital	247,022	240,743
Retained earnings	310,583	338,362
Accumulated other comprehensive earnings	(9,387)	71,619
Treasury shares (3,194 and 3,187 shares in 2015 and 2014, respectively)	(94,399)	(94,265)
Total Shareholders’ Equity	462,818	565,322
Total Liabilities and Shareholders’ Equity	838,143	963,731
Common Shares (Authorized 100,000 shares; 35,024 and 34,219 issued in 2015 and 2014, respectively)—no par
Shareholders’ Equity
Common shares	8,815	8,591
Class B Common Shares (Authorized 12,000 shares; 734 and 1,085 issued and outstanding in 2015 and 2014)—no par
Shareholders’ Equity
Common shares	184	272
Total Shareholders’ Equity	$ 184	$ 272

XML

Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands	Dec. 31, 2015	Dec. 31, 2014
Preferred Stock, Shares Authorized	300	300
Preferred Stock, Shares Outstanding	0	0
Treasury Stock, Shares	3,194	3,187
Common Stock
Common Stock, Shares Authorized	100,000	100,000
Common Stock, Shares, Issued	35,024	34,219
Class B Common Shares
Common Stock, Shares Authorized	12,000	12,000
Common Stock, Shares, Issued	734	1,085

XML

Consolidated Statement Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Activities
Net earnings (loss)	$ (26,190)	$ (56,070)	$ 33,051
Adjustments to reconcile net earnings to net cash provided by operating activities:
Gain on sale of business (pre-tax)	(424)	(17,069)	(82,163)
Depreciation and amortization	19,430	32,789	36,789
Provision for losses on trade and installment receivables	754	1,775	3,689
Provision (benefit) for deferred income taxes	3,588	(2,387)	2,017
Provision (benefit) for other deferred liabilities	266	1,393	(146)
Provision for stock-based compensation	4,013	5,626	5,957
Loss on disposals of property and equipment	5,135	1,074	666
Asset write-downs to intangible assets	0	13,041	1,523
Asset write-downs related to restructuring activities	0	1,163	0
Amortization of convertible debt discount	796	710	633
Changes in operating assets and liabilities:
Trade receivables	9,164	17,211	9,706
Installment sales contracts, net	283	15	(3,773)
Inventories	11,610	(9,527)	23,797
Other current assets	5,283	1,950	(2,070)
Accounts payable	(7,240)	8,329	(19,013)
Accrued expenses	(22,003)	34,113	1,396
Other long-term liabilities	(9,843)	(25,244)	(2,005)
Net Cash (Used) Provided by Operating Activities	(5,378)	8,892	10,054
Investing Activities
Purchases of property and equipment	(7,522)	(12,327)	(14,158)
Proceeds from sale of property and equipment	23,117	2,521	885
Proceeds from sale of businesses	13,700	21,870	187,552
Decrease in other long-term assets	15,003	20,949	1,001
Other	78	569	65
Net Cash Provided for Investing Activities	44,376	33,582	175,345
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	219,603	255,658	352,455
Payments on revolving lines of credit and long-term borrowings	(232,808)	(286,712)	(545,874)
Proceeds from exercise of equity awards	2,402	480	512
Payment of financing costs	(1,954)	0	0
Payment of dividends	(1,589)	(1,584)	(1,581)
Net Cash Used by Financing Activities	(14,346)	(32,158)	(194,488)
Effect of exchange rate changes on cash	(3,528)	(1,170)	83
Increase (decrease) in cash and cash equivalents	21,124	9,146	(9,006)
Cash and cash equivalents at beginning of year	38,931	29,785	38,791
Cash and cash equivalents at end of year	$ 60,055	$ 38,931	$ 29,785

XML

Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Class B Common Stock	Additional Paid-in- Capital	Retained Earnings	Accumulated Other Comprehensive Earnings	Treasury Stock	Class B Common Shares
Beginning Balance at Dec. 31, 2012	$ 620,989	$ 8,503		$ 228,187	$ 364,546	$ 112,743	$ (93,262)	$ 272
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options	512	7		505
Non-qualified stock option expense	3,925			3,925
Restricted stock awards	1,500	29		2,003			(532)
Net earnings (loss)	33,051				33,051
Foreign currency translation adjustments	10,969					10,969
Unrealized gain on cash flow hedges	73					73
Defined benefit plans:
Amortization of prior service costs and unrecognized losses and credits	1,691					1,691
Amounts arising during the year, primarily due to the addition of new participants	(320)					(320)
Comprehensive Income (Loss)	45,464
Dividends	(1,581)				(1,581)
Ending Balance at Dec. 31, 2013	670,809	8,539		234,620	396,016	125,156	(93,794)	272
Stock Issued During Period, Deferred Equity Compensation	69
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options	480	8		472
Non-qualified stock option expense	3,356			3,356
Restricted stock awards	1,799	44		2,226			(471)
Net earnings (loss)	(56,070)				(56,070)
Foreign currency translation adjustments	(51,508)					(51,508)
Unrealized gain on cash flow hedges	158					158
Defined benefit plans:
Amortization of prior service costs and unrecognized losses and credits	(2,187)					(2,187)
Comprehensive Income (Loss)	(109,607)
Dividends	(1,584)				(1,584)
Ending Balance at Dec. 31, 2014	565,322	8,591		240,743	338,362	71,619	(94,265)	272
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options	2,402	43		2,359
Non-qualified stock option expense	1,228			1,228
Restricted stock awards	2,651	93		2,692			(134)
Conversion from Class B Stock to Common Stock	0	88	$ (88)
Net earnings (loss)	(26,190)				(26,190)
Foreign currency translation adjustments	(81,404)					(81,404)
Unrealized gain on cash flow hedges	2,554					2,554
Defined benefit plans:
Amortization of prior service costs and unrecognized losses and credits	(1,372)					(1,372)
Amounts arising during the year, primarily due to the addition of new participants	(784)					(784)
Comprehensive Income (Loss)	(107,196)
Dividends	(1,589)				(1,589)
Ending Balance at Dec. 31, 2015	$ 462,818	$ 8,815		$ 247,022	$ 310,583	$ (9,387)	$ (94,399)	$ 184

XML

Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Accounting Policies

Nature of Operations: Invacare Corporation is a leading manufacturer and distributor of medical equipment used in the home based upon the company’s distribution channels, breadth of product line and net sales. The company designs, manufactures and distributes an extensive line of health care products for the non-acute care environment, including the home health care, retail and continuing care markets.

Principles of Consolidation: The consolidated financial statements include the accounts of the company and its wholly owned subsidiaries and include all adjustments, which were of a normal recurring nature, necessary to present fairly the financial position of the company as of December 31, 2015 and the results of its operations and changes in its cash flow for the years ended December 31,2015, 2014 and 2013, respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using a November 30 fiscal year end in order to meet filing deadlines. No material subsequent events have occurred related to the European segment, which would require disclosure or adjustment to the company’s financial statements. All significant intercompany transactions are eliminated.

Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from these estimates.

Accounts Receivable: The company records accounts receivable when product ships or services are provided to its unaffiliated customers, risk of loss is passed and title is transferred. The estimated allowance for uncollectible amounts is based primarily on management's evaluation of the financial condition of specific customers. The company records accounts receivable reserves for amounts that may become uncollectible in the future. The company writes off accounts receivable when it becomes apparent, based upon customer circumstances, that such amounts will not be collected and legal remedies are exhausted.

Inventories: Inventories are stated at the lower of cost or market with cost determined by the first-in, first-out method. Market values are based on the lower of replacement cost or estimated net realizable value. Finished goods and work in process inventories include material, labor and manufacturing overhead costs. Inventories have been reduced by an allowance for excess and obsolete inventories. The estimated allowance is based on management’s review of inventories on hand compared to estimated future usage and sales.

Property and Equipment: Property and equipment are stated on the basis of cost. The company principally uses the straight-line method of depreciation for financial reporting purposes based on annual rates sufficient to amortize the cost of the assets over their estimated useful lives. Machinery and equipment as well as furniture and fixtures are generally depreciated using lives of 3 to 10 years, while buildings and improvements are depreciated using lives of 5 to 40 years. Accelerated methods of depreciation are used for federal income tax purposes. Expenditures for maintenance and repairs are charged to expense as incurred. Amortization of assets under capital leases is included in depreciation expense.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An asset would be considered impaired when the future net undiscounted cash flows generated by the asset are less than its carrying value. An impairment loss would be recognized based on the amount by which the carrying value of the asset exceeds its fair value.

Goodwill and Other Intangibles: In accordance with Intangibles—Goodwill and Other, ASC 350, goodwill and indefinite lived intangibles are subject to annual impairment testing. For purposes of the goodwill impairment test, the fair value of each reporting unit is estimated by forecasting cash flows and discounting those cash flows using appropriate discount rates. The fair values are then compared to the carrying value of the net assets of each reporting unit. Intangibles assets are also reviewed for impairment by estimating forecasted cash flows and discounting those cash flows as needed to calculate impairment amounts.

During 2014, the company recognized intangible write-down charges of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement impairment of $215,000 each recorded in the IPG segment.

During 2013, the company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives impairment of $568,000, a trademark with a definite life impairment of $123,000, customer list impairment of $442,000 and a developed technology impairment of $223,000 each recorded in the IPG segment and a customer list impairment of $167,000 recorded in the North America/HME segment.

Accrued Warranty Cost: Generally, the company’s products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sale to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company’s warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product recall, which could warrant additional warranty reserve provision. See Current Liabilities in the Notes to the Consolidated Financial Statements for a reconciliation of the changes in the warranty accrual.

Product Liability Cost: The company is self-insured in North America for product liability exposures through its captive insurance company, Invatection Insurance Company, which currently has a policy year that runs from September 1 to August 31 and insures annual policy losses up to $10,000,000 per occurrence and $13,000,000 in the aggregate. The company also has additional layers of external insurance coverage, related to all lines of insurance coverage, insuring up to $75,000,000 in aggregate losses per policy year arising from individual claims anywhere in the world that exceed the captive insurance company policy limits or the limits of the company’s per country foreign liability limits, as applicable. There can be no assurance that Invacare’s current insurance levels will continue to be adequate or available at affordable rates.

Product liability reserves are recorded for individual claims based upon historical experience, industry expertise and other indicators. Additional reserves, in excess of the specific individual case reserves, are provided for 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 by the company in estimating 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.

Revenue Recognition: Invacare’s revenues are recognized when products are shipped or service provided to unaffiliated customers, risk of loss is passed and title is transferred. Revenue Recognition, ASC 605, provides guidance on the application of generally accepted accounting principles to selected revenue recognition issues. Shipping and handling costs are included in cost of goods sold.

Sales are made only to customers with whom the company believes collection is reasonably assured based upon a credit analysis, which may include obtaining a credit application, a signed security agreement, personal guarantee and/or a cross corporate guarantee depending on the credit history of the customer. Credit lines are established for new customers after an evaluation of their credit report and/or other relevant financial information. Existing credit lines are regularly reviewed and adjusted with consideration given to any outstanding past due amounts.

The company offers discounts and rebates, which are accounted for as reductions to revenue in the period in which the sale is recognized. Discounts offered include: cash discounts for prompt payment, base and trade discounts based on contract level for specific classes of customers. Volume discounts and rebates are given based on large purchases and the achievement of certain sales volumes. Product returns are accounted for as a reduction to reported sales with estimates recorded for anticipated returns at the time of sale. The company does not sell any goods on consignment.

Distributed products sold by the company are accounted for in accordance with the revenue recognition guidance in ASC 605-45-05. The company records distributed product sales gross as a principal since the company takes title to the products and has the risks of loss for collections, delivery and returns.

Product sales that give rise to installment receivables are recorded at the time of sale when the risks and rewards of ownership are transferred. As such, interest income is recognized based on the terms of the installment agreements. Installment accounts are monitored and if a customer defaults on payments, interest income is no longer recognized. All installment accounts are accounted for using the same methodology, regardless of duration of the installment agreements. The company has entered into an agreement with De Lage Landen, Inc. (“DLL”), a third party financing company, to provide the majority of future lease financing to Invacare customers.

Research and Development: Research and development costs are expensed as incurred and included in cost of products sold. The company’s annual expenditures for product development and engineering were approximately $18,677,000, $23,149,000 and $24,075,000 for 2015, 2014 and 2013, respectively.

Advertising: Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising expenses amounted to $9,203,000, $13,463,000 and $15,026,000 for 2015, 2014 and 2013, respectively, the majority of which is incurred for advertising in the United States and Europe.

Income Taxes: The company uses the liability method in measuring the provision for income taxes and recognizing deferred tax assets and liabilities on the balance sheet. The liability method requires that deferred income taxes reflect the tax consequences of currently enacted rates for differences between the tax and financial reporting bases of assets and liabilities. With the exceptionof two subsidiaries, foreign subsidiaries with undistributed earnings are considered to have such earnings indefinitely reinvested and, accordingly with the exception of the two subsidiaries, no deferred tax liability has been provided for future repatriation of $24,100,000 of unremitted earnings of these foreign subsidiaries. The amount of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that are permanently reinvested is not practically determinable. The company has recorded the deferred tax impact of the unremitted earnings of the two subsidiaries for which the earnings are not permanently reinvested.

Value Added Taxes: The company operates internationally and is required to comply with value added tax (VAT) or goods and service tax (GST) regulations, particularly in Europe and Asia/Pacific. VAT and GST are taxes on consumption in which the company pays tax on its purchases of goods and services and charges customers on the sale of product. The difference between billings to customers and payments on purchases is then remitted or received from the government as filings are due. The company records tax assets and liabilities related to these taxes and the balances in these accounts can vary significantly from period to period based on the timing of the underlying transactions.

Derivative Instruments:Derivatives and Hedging, ASC 815, requires companies to recognize all derivative instruments in the consolidated balance sheet as either assets or liabilities at fair value. The accounting for changes in fair value of a derivative is dependent upon whether or not the derivative has been designated and qualifies for hedge accounting treatment and the type of hedging relationship. For derivatives designated and qualifying as hedging instruments, the company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

The company recognizes its derivative instruments as assets or liabilities in the consolidated balance sheet measured at fair value. A majority of the company’s derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the fair value of the hedged item, if any, is recognized in current earnings during the period of change.

Foreign Currency Translation: The functional currency of the company’s subsidiaries outside the United States is the applicable local currency. The assets and liabilities of the company’s foreign subsidiaries are translated into U.S. dollars at year-end exchange rates. Revenues and expenses are translated at monthly average exchange rates. Gains and losses resulting from translation of balance sheet items are included in accumulated other comprehensive earnings.

Net Earnings Per Share: Basic earnings per share are computed based on the weighted-average number of Common Shares and Class B Common Shares outstanding during the year. Diluted earnings per share are computed based on the weighted-average number of Common Shares and Class B Common Shares outstanding plus the effects of dilutive stock options and awards outstanding during the year. Diluted earnings per share can potentially be impacted by the convertible notes issued in 2007 should the conditions be met to make the notes convertible or if average market price of company stock for the period exceeds the conversion price of $24.79. For periods in which there was a net loss, loss per share assuming dilution utilized weighted average shares-basic.

Defined Benefit Plans: The company’s benefit plans are accounted for in accordance with Compensation-Retirement Benefits, ASC 715 which requires plan sponsors to recognize the funded status of their defined benefit postretirement benefit plans in the consolidated balance sheet, measure the fair value of plan assets and benefit obligations as of the balance sheet date and to recognize changes in that funded status in the year in which the changes occur through comprehensive income.

Reclassifications: In May 2015, the company's board of directors authorized the sale of the company's former rentals businesses. Accordingly, the rentals businesses were treated as held for sale. The company's December 31, 2014 Balance Sheet was restated to reflect this treatment. See Operations Held for Sale in the Notes to the Consolidated Financial Statements for a description of the impact on the consolidated balance sheet.

Recent Accounting Pronouncements: In April 2014, the FASB issued ASU 2014-08 changing the presentation of discontinued operations on the statements of income and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component meets the criteria to be classified as held for sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. This standard must be prospectively applied to all reporting periods presented in financial reports issued after the effective date. Early adoption was permitted for disposals that were not reported in financial statements previously issued or available for issuance. The new accounting guidance was effective for interim and annual periods beginning after December 15, 2014. This standard can impact the presentation of the company's financial statements but does not affect the calculation of net income, comprehensive income or earnings per share. The company adopted ASU 2014-08 effective January 1, 2015 which impacted the company’s Condensed Consolidated Statement of Comprehensive Income (Loss), Balance Sheets and Statement of Cash Flows. Specifically, the disposal of the United States Rentals businesses, in the third quarter of 2015, was not deemed to be a discontinued operation.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires a company to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance requires five steps to be applied: 1) identify the contract(s) with customers, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligation in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than existing revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. An entity can apply the new revenue standard retrospectively to each prior reporting period presented or retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. The new accounting guidance is effective for annual periods beginning after December 15, 2017, due to an approved one-year deferral, and early adoption is not permitted. The company is currently reviewing the impact of the adoption of ASU 2014-09 on the company's financial statements.

In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability, which is similar presentation of debt discounts or premiums. Debt issuance costs are currently reported on the balance sheet as assets and amortized as interest expense. ASU 2015-03 does not change the recognition and measurement guidance for debt issuance costs and requires retrospective application to all periods presented upon adoption. The new accounting guidance is effective for fiscal periods beginning after December 15, 2015 and early adoption is permitted. The company has determined the adoption of ASU 2015-03 will not have a material impact on the company's financial statements.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” to simplify the subsequent measurement of inventory. Entities are now required to subsequently measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, and early adoption is permitted. The company is currently reviewing the impact of the adoption of ASU 2015-11 on the company's financial statements.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." ASU 2015-17 requires deferred tax assets and liabilities to be classified as noncurrent amounts on the balance sheet. The new accounting guidance is effective for fiscal periods beginning after December 15, 2016 and early adoption is permitted. The company adopted ASU 2015-17, on a prospective basis, effective October 1, 2015 and thus the company's deferred tax assets and liabilities have been classified as long-term in its Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted.

In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet while recognizing expense in a manner similar to existing accounting. The new accounting guidance is effective for fiscal periods beginning after December 15, 2018 and early adoption is permitted. The company is currently reviewing the impact of the adoption of ASU 2016-02 on the company's financial statements.

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Operations Held for Sale (Notes)

12 Months Ended

Dec. 31, 2015

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontinued Operations

Operations Held for Sale

On May 14, 2015, the company's board of directors authorized the company and Invacare Continuing Care, Inc., a Missouri Corporation and wholly-owned subsidiary of the company ("ICC") to enter into an agreement to sell all the issued and outstanding membership interests of Dynamic Medical Systems, LLC, a Nevada limited liability company, and Invacare Outcomes Management, LLC, a Delaware limited liability company, each a wholly-owned subsidiary of ICC (“collectively the rentals businesses”). The company determined on that date that the "held for sale" criteria of ASC 360-10-45-9 were met, and accordingly, the assets and liabilities of the rentals businesses (long-lived asset disposal group) were shown at their carrying amounts, which approximate their fair values. The rentals businesses had been operated on a stand-alone basis and reported as part of the Institutional Products Group (IPG) segment of the company.

On July 2, 2015, ICC completed the sale (the "Transaction") of all the issued and outstanding membership interests in the rentals businesses, pursuant to a Membership Interest Purchase Agreement (the “Purchase Agreement”) among the company, ICC and Joerns Healthcare Parent, LLC, a Delaware limited liability company. The price paid to ICC for the rentals businesses was approximately $15,500,000 in cash, which was subject to certain post-closing adjustments required by the Purchase Agreement. Net proceeds from the Transaction were approximately $13,700,000, net of taxes and expenses. The company recorded a pre-tax gain of approximately $24,000 in the third quarter of 2015, which represents the excess of the net sales price over the book value of the assets and liabilities of the rentals businesses, as of the date of completion of the disposition. The company recorded expenses related to the sale of the rentals businesses totaling $1,792,000, of which $1,244,000 have been paid as of December 31, 2015. The sale of the rentals businesses was not dilutive to the company's results. The company utilized the net proceeds from the sale to reduce debt outstanding under its credit agreement. The company determined that the sale of the rentals businesses did not meet the criteria for classification as a discontinued operation in accordance with ASU 2014-08. The rentals businesses were treated as held for sale as of June 30, 2015 until sold on July 2, 2015. As a result, the December 31, 2014 Balance Sheet was restated to reflect this treatment.

The assets and liabilities of the rentals businesses that were sold and shown as held for sale in the company's Consolidated Balance Sheets were comprised of the following (in thousands):

	July 2, 2015		December 31, 2014
Trade receivables, net	$	5,834	$	6,207
Inventories, net	412		315
Other current assets	212		221
Property and equipment, net	4,126		5,896
Goodwill	4,518		4,692
Intangibles	40		57
Assets sold	$	15,142	$	17,388
Accounts payable	$	410	$	225
Accrued expenses and other short-term obligations	1,056		788
Liabilities sold	$	1,466	$	1,013

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Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On December 21, 2012, in order to focus on its core equipment product lines, the company entered into an agreement to sell ISG and determined on that date that the "held for sale" criteria of ASC 360-10-45-9 were met. On January 18, 2013, the company completed the sale of the ISG medical supplies business to AssuraMed, Inc. for a purchase price of $150,800,000 in cash. ISG had been operated on a stand-alone basis and reported as a reportable segment of the company. The company recorded a gain of $59,402,000 pre-tax in 2013 which represented the excess of the net sales price over the book value of the assets and liabilities of ISG, excluding cash. The sale of this business is dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the first quarter of 2013. In 2013, the net sales of the discontinued operation of ISG were $18,498,000 and earnings before income taxes were $402,000,

On August 6, 2013, the company sold Champion, its domestic medical recliner business for dialysis clinics, to Champion Equity Holdings, LLC for $45,000,000 in cash, which was subject to final post-closing adjustments. Champion had been operated on a stand-alone basis and reported as part of the IPG segment of the company. The company recorded a gain of $22,761,000 pre-tax in the third quarter of 2013, which represented the excess of the net sales price over the book value of the assets and liabilities of Champion. The sale of this business was dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the third quarter of 2013. The gain recorded by the company reflects the company's estimated final purchase adjustments.

In 2013, the net sales of the discontinued operation of Champion were $15,857,000 and earnings before income taxes were $3,156,000. Results for Champion include an interest expense allocation from continuing operations to discontinued operations of $449,000 in 2013, as proceeds from the sale were required to be utilized to pay down debt. The interest allocation was based on the net proceeds assumed to pay down debt applying the company's average interest rates for the periods presented.

In addition, in accordance with ASC 350, when a portion of a reporting entity that constitutes a business is disposed of, goodwill associated with that business should be included in the carrying amount of the net assets of the business sold in determining the gain or loss on the disposal. As such, the company allocated additional goodwill of $16,205,000 to Champion from the continuing operations of the IPG segment based on the relative fair value of Champion as compared to the remaining IPG reporting unit.

On August 29, 2014, the company sold Altimate Medical, Inc. (Altimate), its manufacturer of stationary standing assistive devices for use in patient rehabilitation, to REP Acquisition Corporation for $23,000,000 in cash, which was subject to final post-closing adjustments. Altimate had been operated on a stand-alone basis and reported as part of the North America/HME segment of the company. The company recorded a gain of $17,069,000 pre-tax in the third quarter of 2014, which represented the excess of the net sales price over the book value of the assets and liabilities of Altimate. The sale of this business was dilutive to the company's results. The company utilized the proceeds from the sale to reduce debt outstanding under its revolving credit facility in the third quarter of 2014. The gain recorded by the company reflects the company's estimated final purchase adjustments. The assets and liabilities of Altimate were the following as of the date of the sale, August 29, 2014, and as of December 31, 2013 (in thousands):

	August 29, 2014
Trade receivables, net	$	2,019
Inventories, net	1,954
Other current assets	246
Property and equipment, net	176
Other Intangibles	1,047
Assets sold	$	5,442
Accounts payable	$	425
Accrued expenses	316
Liabilities sold	$	741

The net sales of the Altimate discontinued operations were $11,778,000 and $17,854,000 for 2014 and 2013, respectively, and earnings before income taxes were $2,796,000 and $5,118,000, respectively for the same periods. Results for Altimate include an interest expense allocation from continuing operations to discontinued operations of $202,000 and $323,000 for 2014 and 2013, respectively, as proceeds from the sale were required to be utilized to pay down debt. The interest allocation was based on the net proceeds assumed to pay down debt applying the company's average interest rates for the periods presented.

The company recorded total expenses related to the discontinued operations noted above of $8,801,000, of which $8,405,000 were paid as of December 31, 2015.

The company recorded an incremental intra-period tax allocation expense to discontinued operations for 2015, 2014 and 2013 representing the cumulative intra-period allocation expense to discontinued operations based on the company's domestic taxable loss related to continuing operations for 2015, 2014 and 2013.

The company has classified ISG, Champion and Altimate as a discontinued operations for all periods presented.

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Receivables

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Receivables

Receivables

Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. Substantially all of the company’s receivables are due from health care, medical equipment providers and long term care facilities located throughout the United States, Australia, Canada, New Zealand, China and Europe. A significant portion of products sold to providers, both foreign and domestic, are ultimately funded through government reimbursement programs such as Medicare and Medicaid in the U.S. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability.

The estimated allowance for uncollectible amounts ($10,487,000 in 2015 and $11,970,000 in 2014) is based primarily on management’s evaluation of the financial condition of specific customers. In addition, as a result of the company's financing arrangement with DLL, a third party financing company which the company has worked with since 2000, management monitors the collection status of these contracts in accordance with the company’s limited recourse obligations and provides amounts necessary for estimated losses in the allowance for doubtful accounts and establishing reserves for specific customers as needed. The company charges off uncollectible trade accounts receivable after such receivables are moved to collection status and legal remedies are exhausted. See Concentration of Credit Risk in the Notes to the Consolidated Financial Statements for a description of the financing arrangement. Long-term installment receivables are included in “Other Assets” on the consolidated balance sheet.

The company’s U.S. customers electing to finance their purchases can do so using DLL. In addition, the company often provides financing directly for its Canadian customers for which DLL is not an option, as DLL typically provides financing to Canadian customers only on a limited basis. The installment receivables recorded on the books of the company represent a single portfolio segment of finance receivables to the independent provider channel and long-term care customers. The portfolio segment is comprised of two classes of receivables distinguished by geography and credit quality. The U.S. installment receivables are the first class and represent installment receivables re-purchased from DLL because the customers were in default. Default with DLL is defined as a customer being delinquent by 3 payments. The Canadian installment receivables represent the second class of installment receivables which were originally financed by the company because third party financing was not available to the HME providers. The Canadian installment receivables are typically financed for twelve months and historically have had a very low risk of default.

The estimated allowance for uncollectible amounts and evaluation for impairment for both classes of installment receivables is based on the company’s quarterly review of the financial condition of each individual customer with the allowance for doubtful accounts adjusted accordingly. Installments are individually and not collectively reviewed for impairment. The company assesses the bad debt reserve levels based upon the status of the customer’s adherence to a legally negotiated payment schedule and the company’s ability to enforce judgments, liens, etc.

For purposes of granting or extending credit, the company utilizes a scoring model to generate a composite score that considers each customer’s consumer credit score and or D&B credit rating, payment history, security collateral and time in business. Additional analysis is performed for most customers desiring credit greater than $250,000, which generally includes a detailed review of the customer’s financials as well as consideration of other factors such as exposure to changing reimbursement laws.

Interest income is recognized on installment receivables based on the terms of the installment agreements. Installment accounts are monitored and if a customer defaults on payments and is moved to collection, interest income is no longer recognized. Subsequent payments received once an account is put on non-accrual status are generally first applied to the principal balance and then to the interest. Accruing of interest on collection accounts would only be restarted if the account became current again.

All installment accounts are accounted for using the same methodology regardless of the duration of the installment agreements. When an account is placed in collection status, the company goes through a legal process for pursuing collection of outstanding amounts, the length of which typically approximates eighteen months. Any write-offs are made after the legal process has been completed. The company has not made any changes to either its accounting policies or methodology to estimate allowances for doubtful accounts in the last twelve months.

Installment receivables as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015									2014
	Current			Long- Term			Total			Current			Long- Term			Total
Installment receivables	$	2,309		$	2,318		$	4,627		$	2,692		$	5,117		$	7,809
Less:
Unearned interest	(42		)	—			(42		)	(46		)	—			(46		)
	2,267			2,318			4,585			2,646			5,117			7,763
Allowance for doubtful accounts	(1,122		)	(1,670		)	(2,792		)	(1,592		)	(4,260		)	(5,852		)
	$	1,145		$	648		$	1,793		$	1,054		$	857		$	1,911

Installment receivables purchased from DLL during the twelve months ended December 31, 2015 increased the gross installment receivables balance by $936,000 during the year compared to $2,123,000 in 2014. No sales of installment receivables were made by the company during the year.

The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands):

	2015			2014
Balance as of January 1	$	5,852		$	6,039
Current period (benefit) provision	(332		)	796
Direct write-offs charged against the allowance	(2,728		)	(983		)
Balance as of December 31	$	2,792		$	5,852

Installment receivables by class as of December 31, 2015 consist of the following (in thousands):

	Total Installment Receivables		Unpaid Principal Balance		Related Allowance for Doubtful Accounts		Interest Income Recognized
U.S.
Impaired installment receivables with a related allowance recorded	$	3,618	$	3,618	$	2,729	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	946		904		—		52
Impaired installment receivables with a related allowance recorded	63		63		63		—
Total Canadian installment receivables	$	1,009	$	967	$	63	$	52
Total
Non-Impaired installment receivables with no related allowance recorded	946		904		—		52
Impaired installment receivables with a related allowance recorded	3,681		3,681		2,792		—
Total installment receivables	$	4,627	$	4,585	$	2,792	$	52

Installment receivables by class as of December 31, 2014 consist of the following (in thousands):

	Total Installment Receivables		Unpaid Principal Balance		Related Allowance for Doubtful Accounts		Interest Income Recognized
U.S.
Impaired installment receivables with a related allowance recorded	$	6,735	$	6,735	$	5,786	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	1,008		962		—		82
Impaired installment receivables with a related allowance recorded	66		66		66		—
Total Canadian installment receivables	$	1,074	$	1,028	$	66	$	82
Total
Non-Impaired installment receivables with no related allowance recorded	1,008		962		—		82
Impaired installment receivables with a related allowance recorded	6,801		6,801		5,852		—
Total installment receivables	$	7,809	$	7,763	$	5,852	$	82

Installment receivables with a related allowance recorded as noted in the table above represent those installment receivables on a non-accrual basis in accordance with ASU 2010-20. As of December 31, 2015, the company had no U.S. installment receivables past due of 90 days or more for which the company is still accruing interest. Individually, all U.S. installment receivables are assigned a specific allowance for doubtful accounts based on management’s review when the company does not expect to receive both the contractual principal and interest payments as specified in the loan agreement. In Canada, the company had an immaterial amount of installment receivables which were past due of 90 days or more as of December 31, 2015 and December 31, 2014 for which the company is still accruing interest.

The aging of the company’s installment receivables was as follows as of December 31, 2015 and 2014 (in thousands):

	December 31, 2015						December 31, 2014
	Total		U.S.		Canada		Total		U.S.		Canada
Current	$	908	$	—	$	908	$	976	$	—	$	976
0-30 days past due	16		—		16		15		—		15
31-60 days past due	12		—		12		2		—		2
61-90 days past due	1		—		1		—		—		—
90+ days past due	3,690		3,618		72		6,816		6,735		81
	$	4,627	$	3,618	$	1,009	$	7,809	$	6,735	$	1,074

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Inventories

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories, net of reserves, as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Finished goods	$	67,207	$	85,828
Raw materials	54,005		57,509
Work in process	11,595		12,224
	$	132,807	$	155,561

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Other Current Assets

12 Months Ended

Dec. 31, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

Other Current Assets

Other current assets as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Value added tax receivables	$	18,031	$	21,273
Recoverable income taxes	367		261
Derivatives (foreign currency forward contracts)	4,143		520
Prepaid insurance	2,538		2,713
Prepaid and other current assets	9,380		12,031
	$	34,459	$	36,798

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Other Long-Term Assets

12 Months Ended

Dec. 31, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Long-Term Assets

Other Long-Term Assets

Other long-term assets as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Cash surrender value of life insurance policies	$	1,674	$	15,765
Deferred financing fees	1,088		408
Investments	160		249
Long-term installment receivables	648		857
Long-term deferred taxes	908		613
Other	181		1,161
	$	4,659	$	19,053

The company sold life insurance policies of $11,902,000 and $21,338,000 in 2015 and 2014, respectively, to fund payments as the result of the retirement of certain executive officers of the company.

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Property And Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Property And Equipment

Property and Equipment

Property and equipment as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015			2014
Machinery and equipment	$	299,721		$	318,286
Land, buildings and improvements	73,830			81,219
Furniture and fixtures	10,031			11,738
Leasehold improvements	11,966			14,517
	395,548			425,760
Less allowance for depreciation	(316,865		)	(346,101		)
	$	78,683		$	79,659

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Goodwill

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The carrying amount of goodwill by operating segment is as follows (in thousands):

	Institutional Products Group			Europe			Consolidated
Balance at January 1, 2014	$	31,615		$	425,919		$	457,534
Foreign currency translation adjustments	(1,696		)	(34,819		)	(36,515		)
Balance at December 31, 2014	29,919			391,100			421,019
Foreign currency translation adjustments	(2,763		)	(56,576		)	(59,339		)
Balance at December 31, 2015	$	27,156		$	334,524		$	361,680

In accordance with Intangibles—Goodwill and Other, ASC 350, goodwill is reviewed annually for impairment. The company first estimates the fair value of each reporting unit and compares the calculated fair value to the carrying value of each reporting unit. A reporting unit is defined as an operating segment or one level below. The company has determined that its reporting units are the same as its operating segments. The company completes its annual impairment tests in the fourth quarter of each year or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. To estimate the fair values of the reporting units, the company utilizes a discounted cash flow method model in which the company forecasts income statement and balance sheet amounts based on assumptions regarding future sales growth, profitability, inventory turns, days' sales outstanding, etc. to forecast future cash flows. The cash flows are discounted using a weighted average cost of capital discount rate where the cost of debt is based on quoted rates for 20-year debt of companies of similar credit risk and the cost of equity is based upon the 20-year treasury rate for the risk free rate, a market risk premium, the industry average beta and a small cap stock adjustment. The discount rates used have a significant impact upon the discounted cash flow methodology utilized in the company's annual impairment testing as higher discount rates decrease the fair value estimates. The assumptions used are based on a market participant's point of view and yielded a discount rate of 9.41% in 2015 for the company's initial impairment analysis compared to 9.89% in 2014 and 10.00% in 2013.

The company also utilizes an Enterprise Value (EV) to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) Method to compute the fair value of its reporting units which considers potential acquirers and their EV to EBITDA multiples adjusted by an estimated premium. While more weight is given to the discounted cash flow method, the EV to EBITDA Method does provide corroborative evidence of the reasonableness of the discounted cash flow method results.

While there was no indication of impairment in 2015 related to goodwill for the Europe or IPG segments, a future potential impairment is possible for these segments should actual results differ materially from forecasted results used in the valuation analysis. Furthermore, the company's annual valuation of goodwill can differ materially if the market inputs used to determine the discount rate change significantly. For instance, higher interest rates or greater stock price volatility would increase the discount rate and thus increase the chance of impairment. In consideration of this potential, the company reviewed the results if the discount rate used were 100 basis points higher for the 2015 impairment analysis and determined that there still would not be an indicator of potential impairment for the Europe or IPG segments.

As part of the company's review of goodwill for impairment, the company also considers the potential for impairment of any other assets. In 2015, 2014 and 2013, the company performed a review for potential impairments of any other assets, including the company's Taylor Street facility which is subject to the FDA consent decree that limits the company's manufacture and distribution of custom power and manual wheelchairs, wheelchair components and wheelchair subassemblies at the Taylor Street facility. The company determined there was no impairment of the property, plant and equipment of the Taylor Street facility based on a comparison of the forecasted undiscounted cash flows to the carrying value of the net assets in accordance with ASC 360. In addition, the company determined there was no impairment of net inventory associated with the facility.

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Intangibles

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles

Intangibles

All of the company’s other intangible assets have been assigned definite lives and continue to be amortized over their useful lives, except for $24,524,000 related to trademarks, which have indefinite lives. The changes in intangible balances reflected on the balance sheet from December 31, 2014 to December 31, 2015 were the result of foreign currency translation and amortization.

The company’s intangibles consist of the following (in thousands):

	December 31, 2015				December 31, 2014
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Customer lists	$	49,858	$	45,019	$	78,693	$	71,343
Trademarks	24,524		—		28,314		—
License agreements	1,098		1,098		1,290		1,290
Developed technology	7,405		5,921		8,297		6,340
Patents	5,959		5,843		6,102		5,804
Other	1,161		1,124		2,548		2,454
	$	90,005	$	59,005	$	125,244	$	87,231

Amortization expense related to other intangibles was $1,907,000, $20,358,000 and $10,567,000 for 2015, 2014 and 2013, respectively. Estimated amortization expense for each of the next five years is expected to be $1,626,000 for 2016, $1,549,000 in 2017, $1,530,000 in 2018, $992,000 in 2019 and $184,000 in 2020. Amortized intangibles are being amortized on a straight-line basis over remaining lives from 1 to 10 years with the majority of the intangibles being amortized over an average remaining life of approximately 5 years.

In accordance with ASC 350, Intangibles—Goodwill and Other, the company reviews intangibles for impairment. The company's intangible assets consist of intangible assets with defined lives as well as intangible assets with indefinite lives. Defined-lived intangible assets consist principally of customer lists, developed technology, license agreements, patents and other miscellaneous intangibles such as non-compete agreements. The company's indefinite lived intangible assets consist entirely of trademarks.

The company evaluates the carrying value of definite-lived assets whenever events or circumstances indicate possible impairment. Definite-lived assets are determined to be impaired if the future un-discounted cash flows expected to be generated by the asset are less than the carrying value. Actual impairment amounts for definite-lived assets are then calculated using a discounted cash flow calculation. The company reviews indefinite-lived assets for impairment annually in the fourth quarter of each year and whenever events or circumstances indicate possible impairment. Any impairment amounts for indefinite-lived assets are calculated as the difference between the future discounted cash flows expected to be generated by the asset less than the carrying value for the asset.

During 2014, the company recognized intangible write-down charges in the IPG segment of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement of $215,000 as the actual and remaining cash flows associated with the intangibles were less than the cash flows originally used to value the intangibles, primarily driven by reduced net sales. The after-tax and pre-tax impairment amounts were the same for each of the above impairments.

During 2013, the company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives impairment of $568,000, a trademark with a definite life impairment of $123,000, customer list impairment of $442,000 and developed technology impairment of $223,000 all recorded in the IPG segment and a customer list impairment of $167,000 recorded in the North America/HME segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the indefinite-lived trademark impairment in the IPG segment, which was $496,000 after-tax.

The fair values of the customer lists were calculated using an excess earnings method, using a discounted cash flow model. Estimated cash flow returns to the customer relationship were reduced by the cash flows required to satisfy the return requirements of each of the assets employed with the residual cash flow then discounted to value the customer list. The fair values of the trademarks and developed technology were calculated using a relief from royalty payment methodology which requires applying an estimated market royalty rate to forecasted net sales and discounting the resulting cash flows to determine fair value. The patent was impaired as the related product was discontinued.

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Accrued Expenses

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued expenses as of December 31, 2015 and 2014 consisted of accruals for the following (in thousands):

	2015		2014
Salaries and wages	$	41,305	$	40,850
Taxes other than income taxes, primarily Value Added Taxes	21,424		24,743
Warranty cost	22,820		30,738
Supplemental Executive Retirement Plan (SERP)	1,279		21,517
Freight	6,153		6,202
Professional	5,774		6,613
Product liability, current portion	3,127		4,334
Rebates	1,791		1,722
Insurance	695		1,266
Interest	872		1,068
Derivatives (foreign currency forward exchange contracts)	2,014		2,526
Severance	2,477		4,209
Other items, principally trade accruals	12,689		9,911
	$	122,420	$	155,699

As a result of the retirement of certain executives of the company during 2015, Supplemental Executive Retirement Program (SERP) and deferred compensation payments of $21,126,000 and $3,525,000, respectively, were made in 2015.

Accrued rebates relate to several volume incentive programs the company offers its customers. The company accounts for these rebates as a reduction of revenue when the products are sold in accordance with the guidance in ASC 605-50, Customer Payments and Incentives.

Generally, the company's products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sales to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company's warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product field action and recalls, which could warrant additional warranty reserve provision.

Changes in accrued warranty costs were as follows (in thousands):

	2015			2014
Balance as of January 1	$	30,738		$	27,393
Warranties provided during the period	11,561			21,472
Settlements made during the period	(17,817		)	(22,752		)
Changes in liability for pre-existing warranties during the period, including expirations	(1,662		)	4,625
Balance as of December 31	$	22,820		$	30,738

The company's warranty expense for 2015 includes reversals of $2,325,000 principally driven by a $2,000,000 reversal as a result of changes in the company's estimate of costs related to a recall for a component in a stationary oxygen concentrator that was manufactured in the company’s facility in Suzhou, China, and sold globally, which is no longer used in production.

The company's warranty expense for 2014 includes $11,493,000 for three specific product issues. First, an expense of $6,559,000 for a recall related to a component in a stationary oxygen concentrator that was manufactured in the company’s facility in Suzhou, China, and sold globally, which is no longer used in production. This expense was recorded in the European segment ($3,395,000) and North America/HME segment ($3,164,000). Second, an expense of $2,057,000 for the recall of a sieve bed component used within stationary oxygen concentrators manufactured during August 2014, which was recorded in the North America/HME segment. Third, an incremental expense of $2,877,000 related to the company's joystick recall as a result of higher than previously anticipated response rates from larger customers in the U.S. and Canada and a shift in the product mix toward higher cost joysticks, which was recorded in the North America/HME segment ($1,612,000) and the Asia/Pacific segment ($1,265,000).

These warranty reserves are subject to adjustment in future periods as new developments change the company's estimate of the total cost of these matters.

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Long-Term Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Debt as of December 31, 2015 and 2014 consisted of the following (in thousands):

	2015			2014
Senior secured revolving credit facility, due in October 2015	$	—		$	4,000
Convertible senior subordinated debentures at 4.125%, due in February 2027	12,147			11,351
Other notes and lease obligations	34,973			4,980
	47,120			20,331
Less current maturities of long-term debt	(2,028		)	(959		)
	$	45,092		$	19,372

The company had outstanding letters of credit of $3,230,000 and $7,063,000 as of December 31, 2015 and 2014, respectively.

On September 30, 2015 the company entered into an Amended and Restated Revolving Credit and Security Agreement (the “Amended and Restated Credit Agreement”), amending and restating the company’s existing Revolving Credit and Security Agreement which was originally entered into on January 16, 2015 and amended on April 22, 2015 (the “Prior Credit Agreement”) and which matures in January 2018. The Amended and Restated Credit Agreement was entered into by and among the company, certain of the company’s direct and indirect U.S. and Canadian subsidiaries and certain of the company’s European subsidiaries (together with the company, the “Borrowers”), certain other of the company’s direct and indirect U.S., Canadian and European subsidiaries (the “Guarantors”), and PNC Bank, National Association (“PNC”), JPMorgan Chase Bank, N.A., J.P. Morgan Europe Limited, KeyBank National Association, and Citizens Bank, National Association (the “Lenders”). PNC is the administrative agent (the “Administrative Agent”) and J.P. Morgan Europe Limited is the European agent (the “European Agent”) under the Amended and Restated Credit Agreement.

The Amended and Restated Credit Agreement contains customary representations, warranties and covenants. Exceptions to the operating covenants in the Amended and Restated Credit Agreement provide the company with flexibility to, among other things, enter into or undertake certain sale and leaseback transactions, dispositions of assets, additional credit facilities, sales of receivables, additional indebtedness and intercompany indebtedness, all subject to limitations set forth in the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement also contains a covenant requiring the company to maintain minimum availability under the U.S. and Canadian Credit Facility of not less than the greater of (i) 11.25% of the maximum amount that may be drawn under the U.S. and Canadian Credit Facility for five (5) consecutive business days, or (ii) $10,000,000 on any business day (which amount was reduced to $5,000,000 pursuant to an amendment in February 2016 -- see “Subsequent Events”). The company also is subject to dominion triggers under the U.S. and Canadian Credit Facility (as defined below) requiring the company to maintain borrowing capacity of not less than $11,250,000 on any business day or $12,500,000 for five consecutive days in order to avoid triggering full control by an agent for the lenders of the company's cash receipts for application to the company’s obligations under the agreement.

The Amended and Restated Credit Agreement contains customary default provisions, with certain grace periods and exceptions, which provide that events of default that include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption of any material manufacturing facilities for more than 10 consecutive days. The initial borrowings under the U.S. and Canadian Credit Facility were used to repay and terminate the company’s previous credit agreement, which was scheduled to mature in October 2015.

The Prior Credit Agreement was amended on April 22, 2015 to provide for certain technical amendments, including: (1) revising various provisions of the Prior Credit Agreement to allow the company to issue letters of credit denominated in foreign currencies other than those originally contemplated under the Prior Credit Agreement; and (2) amending certain covenants in the Prior Credit Agreement to permit the company (i) to make a single acquisition of assets of a third-party for cash consideration not to exceed $500,000 on or before September 30, 2015 and (ii) to accept surrenders of company shares by employees to facilitate the payment of tax withholding obligations in connection with employee equity compensation.

In connection with entering into the Prior Credit Agreement and subsequent Amended and Restated Credit Agreement, the company incurred $1,954,000 in fees which were capitalized and are being amortized through January 2018. In addition, as a result of terminating the previous credit agreement, which was scheduled to mature in October 2015, the company wrote-off $668,000 in previously capitalized fees in the first quarter of 2015, which is reflected in the expense of the North America / HME segment. In comparison, the company wrote-off $1,070,000 in fees previously capitalized in the first quarter of 2014 as a result of a reduction in the borrowing capacity under the company's previous credit agreement, which was scheduled to mature in October 2015.

U.S. and Canadian Borrowers Credit Facility

For the company's U.S. and Canadian Borrowers, the Amended and Restated Credit Agreement provides for an asset-based-lending senior secured revolving credit facility which is secured by substantially all of the company’s U.S. and Canadian assets, other than real estate. The Amended and Restated Credit Agreement provides the company and the other Borrowers with a credit facility in an aggregate principal amount of $100,000,000, subject to availability based on a borrowing base formula, under a senior secured revolving credit, letter of credit and swing line loan facility (the “U.S. and Canadian Credit Facility”). Up to $25,000,000 of the U.S. and Canadian Credit Facility will be available for issuance of letters of credit. The aggregate principal amount of the U.S. and Canadian Credit Facility may be increased by up to $25,000,000 to the extent requested by the company and agreed to by any Lender or new financial institution approved by the Administrative Agent. The aggregate borrowing availability under the U.S. and Canadian Credit Facility is determined based on a borrowing base formula set forth in the Amended and Restated Credit Agreement and summarized below.

Under the Amended and Restated Credit Agreement, the aggregate usage under the U.S. and Canadian Credit Facility may not exceed an amount equal to the sum of (a) 85% of eligible U.S. accounts receivable plus (b) the lesser of (i) 70% of eligible U.S. inventory and eligible foreign in-transit inventory and (ii) 85% of the net orderly liquidation value of eligible U.S. inventory and eligible foreign in-transit inventory (not to exceed $4,000,000), plus (c) the lesser of (i) 85% of the net orderly liquidation value of U.S. eligible machinery and equipment and (ii) $2,485,000 (subject to reduction as provided in the Amended and Restated Credit Agreement), plus (d) 85% of eligible Canadian accounts receivable, plus (e) the lesser of (i) 70% of eligible Canadian inventory and (ii) 85% of the net orderly liquidation value of eligible Canadian inventory, less (f) swing loans outstanding under the U.S. and Canadian Credit Facility, less (g) letters of credit issued and undrawn under the U.S. and Canadian Credit Facility, less (h) a $10,000,000 minimum availability reserve, less (i) other reserves required by the Administrative Agent, and in each case subject to the definitions and limitations in the Amended and Restated Credit Agreement. As of December 31, 2015, the company was in compliance with all covenant requirements and had borrowing capacity on the U.S. and Canadian Credit Facility under the Amended and Restated Credit Agreement of $38,230,000, taking into account the $10,000,000 minimum availability reserve (which amount was reduced to $5,000,000 pursuant to an amendment in February 2016 - see "Subsequent Events"), then-outstanding letters of credit, other reserves and the $11,250,000 dominion trigger amount noted above.

Interest will accrue on outstanding indebtedness under the Amended and Restated Credit Agreement at the LIBOR rate, plus a margin ranging from 2.25% to 2.75%, or at the alternate base rate, plus a margin ranging from 1.25% to 1.75%, as selected by the company. Borrowings under the U.S. and Canadian Credit Facility are subject to commitment fees of 0.25% or 0.375% per year, depending on utilization.

European Credit Facility

The Amended and Restated Credit Agreement retains the existing asset-based lending senior secured revolving credit facility provided for the company and the U.S. and Canadian Borrowers under the Prior Credit Agreement (the “Existing Credit Facility”) and provides for a new revolving credit, letter of credit and swing line loan facility which gives the European Borrowers the ability to borrow up to an aggregate principal amount of $30,000,000, with a $5,000,000 sublimit for letters of credit and a $2,000,000 sublimit for swing line loans (the “European Credit Facility”). Up to $15,000,000 of the European Credit Facility will be available to each of Invacare Limited (the “UK Borrower”) and Invacare Poirier SAS (the “French Borrower” and, together with the UK Borrower, the “European Borrowers”). The European Credit Facility matures in January 2018, together with the Existing Credit Facility. The aggregate borrowing availability for each European Borrower under the European Credit Facility is determined based on a borrowing base formula set forth in the Amended and Restated Credit Agreement and summarized below. Under the Amended and Restated Credit Agreement, the aggregate borrowings of each of the European Borrowers under the European Credit Facility may not exceed an amount equal to (a) 85% of the European Borrower’s eligible accounts receivable, less (b) the European Borrower’s borrowings and swing line loans outstanding under the European Credit Facility, less (c) the European Borrower’s letters of credit issued and undrawn under the European Credit Facility, less (d) a $3,000,000 minimum availability reserve, less (e) other reserves required by the European Agent, and in each case subject to the definitions and limitations in the Amended and Restated Credit Agreement. As of December 31, 2015, as determined pursuant to the borrowing base formula, the aggregate borrowing base available to the European Borrowers under the European Credit Facility was approximately $21,528,000, with aggregate borrowing availability of approximately $15,153,000, taking into account the $3,000,000 minimum availability reserve and a $3,375,000 dominion trigger amount described below.

The aggregate principal amount of the European Credit Facility may be increased by up to $10,000,000 to the extent requested by the company and agreed to by any Lender or Lenders that wish to increase their lending participation or, if not agreed to by any Lender, a new financial institution that agrees to join the European Credit Facility and that is approved by the Administrative Agent and the European Agent.

Interest will accrue on outstanding indebtedness under the European Credit Facility at an adjusted LIBOR rate, plus a margin ranging from 2.50% to 3.00%, or for swing line loans, at the overnight LIBOR rate, plus a margin ranging from 2.50% to 3.00%. The margin will be adjusted quarterly based on utilization. Borrowings under the European Credit Facility are subject to commitment fees of between 0.25% and 0.375% per year, depending on utilization.

The European Credit Facility is secured by substantially all of the personal property assets of the UK Borrower and its in-country subsidiaries, and all of the receivables of the French Borrower and its in-country subsidiaries. The UK and French facilities (which comprise the European Credit Facility) are cross collateralized, and the US personal property assets previously pledged under the Existing Credit Facility also serve as collateral for the European Credit Facility.

The European Credit Facility is subject to customary representations, warranties and covenants generally consistent with those applicable to the Existing Credit Facility. Exceptions to the operating covenants in the Amended and Restated Credit Agreement provide the company with flexibility to, among other things, enter into or undertake certain sale/leaseback transactions, dispositions of assets, additional credit facilities, sales of receivables, additional indebtedness and intercompany indebtedness, all subject to limitations set forth in the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement also contains a covenant requiring the European Borrowers to maintain undrawn availability under the European Credit Facility of not less than the greater of (i) 11.25% of the maximum amount that may be drawn under the European Credit Facility for five (5) consecutive business days, or (ii) $3,000,000 on any business day. The European Borrowers also are subject to cash dominion triggers under the European Credit Facility requiring the European Borrower to maintain borrowing capacity of not less than $3,375,000 on any business day or 12.50% of the maximum amount that may be drawn under the European Credit Facility for five (5) consecutive business days in order to avoid triggering full control by an agent for the Lenders of the European Borrower’s cash receipts for application to its obligations under the European Credit Facility.

The European Credit Facility is subject to customary default provisions, with certain grace periods and exceptions, consistent with those applicable to the Existing Credit Facility, which provide that events of default include, among other things, failure to pay amounts due, breach of covenants, representations or warranties, cross-default, bankruptcy, the occurrence of a material adverse effect, exclusion from any medical reimbursement program, and an interruption in the operations of any material manufacturing facility for more than 10 consecutive days.

The proceeds of the European Credit Facility will be used to finance the working capital and other business needs of the company.

Convertible senior subordinated debentures

In 2007, the company issued $135,000,000 principal amount of Convertible Senior Subordinated Debentures due 2027. The debentures are unsecured senior subordinated obligations of the company guaranteed by substantially all of the company’s domestic subsidiaries (which guarantees were released effective February 16, 2016, see "Subsequent Events"), pay interest at 4.125% per annum on each February 1 and August 1, and are convertible upon satisfaction of certain conditions into cash, common shares of the company, or a combination of cash and common shares of the company, subject to certain conditions. The debentures allow the company to satisfy the conversion using any combination of cash or stock, and at the company’s discretion. In the event of such a conversion, the company intends to satisfy the accreted value of the debentures using cash. Assuming adequate cash on hand at the time of conversion, the company also intends to satisfy the conversion spread using cash, as opposed to stock. As of December 31, 2015, the principal amount of the company’s Convertible Notes exceeded the if-converted value of those notes by $3,379,000.

The company includes the dilutive effect of shares necessary to settle the conversion spread in the Net Earnings per Share- Assuming Dilution calculation unless such amounts are anti-dilutive as was the case in 2015, 2014 and 2013. The initial conversion rate is 40.3323 shares per $1,000 principal amount of debentures, which represents an initial conversion price of approximately $24.79 per share. Holders of the debentures can convert the debt to common stock if the company’s common stock price is at a level in excess of $32.23, a 30% premium to the initial conversion price for at least 20 trading days during a period of thirty consecutive trading days preceding the date on which the notice of conversion is given. At a conversion price of $32.23 (30% premium over $24.79), the full conversion of the convertible debt equates to 539,000 shares. The debentures are redeemable at the company’s option, subject to specified conditions, on or after February 6, 2012 through and including February 1, 2017. The company may redeem some or all of the debentures for cash on or after February 1, 2017. Holders have the right to require the company to repurchase all or some of their debentures upon the occurrence of certain circumstances on February 1, 2017 and 2022. The company evaluated the terms of the call, redemption and conversion features under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the features did not require separate accounting as derivatives. The notes, debentures and common shares issuable upon conversion of the debentures have been registered under the Securities Act.

The components of the company’s convertible debt as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015			2014
Carrying amount of equity component	$	25,381		$	25,381
Principal amount of liability component	$	13,350		$	13,350
Unamortized discount	(1,203		)	(1,999		)
Net carrying amount of liability component	$	12,147		$	11,351

The unamortized discount of $1,203,000 is to be amortized through February 2017. The effective interest rate on the liability component was 11.5% for 2007 through 2014. Non-cash interest expense of $796,000, $710,000 and $633,000 was recognized in 2015, 2014 and 2013, respectively, in comparison to actual interest expense paid of $551,000, $551,000 and $551,000 based on the stated coupon rate of 4.125%, for each of the same periods. The convertible debt was not convertible as of December 31, 2015 nor was the convertible debt conversion price threshold of $32.23 met during 2015.

There were no borrowings denominated in foreign currencies as of December 31, 2015 or December 31, 2014. For 2015 and 2014, the weighted average interest rate on all borrowings, excluding capital leases, was 3.83% and 2.87%, respectively.

The aggregate minimum maturities of long-term debt for each of the next five years are as follows: $2,028,000 in 2016, $2,169,000 in 2017, $1,784,000 in 2018, $1,632,000 in 2019, and $1,703,000 in 2020. Interest paid on all borrowings was $2,753,000, $3,302,000 and $4,046,000 in 2015, 2014 and 2013, respectively.

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Other Long-Term Obligations

12 Months Ended

Dec. 31, 2015

Other Liabilities Disclosure [Abstract]

Other Liabilities Disclosure

Other Long-Term Obligations

Other long-term obligations as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Supplemental Executive Retirement Plan liability	$	4,930	$	6,067
Product liability	14,582		18,860
Deferred income taxes	32,115		30,423
Deferred gain on sale leaseback	6,978		—
Deferred compensation	4,167		5,667
Uncertain tax obligation including interest	4,467		15,160
Other	15,350		12,628
Total long-term obligations	$	82,589	$	88,805

On April 23, 2015, the company entered into a real estate sales leaseback transaction which resulted in the recording of an initial deferred gain of $7,414,000, the majority of which is included in Other Long-Term Obligations and will be recognized over the 20-year life of the leases. The gain realized in 2015 was $171,000. The decrease in the uncertain tax obligation was driven primarily by a reclassification from long term obligations to current taxes payable based on the amount expected be paid in the next twelve months.

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Leases and Commitments

12 Months Ended

Dec. 31, 2015

Leases [Abstract]

Leases and Commitments

Leases and Commitments

The company leases a portion of its facilities, transportation equipment, data processing equipment and certain other equipment. These leases have terms from 1 to 20 years and provide for renewal options. Generally, the company is required to pay taxes and normal expenses of operating the facilities and equipment. As of December 31, 2015, the company is committed under non-cancelable operating leases, which have initial or remaining terms in excess of one year and expire on various dates through 2024. Lease expenses were approximately $20,360,000 in 2015, $23,568,000 in 2014 and $24,726,000 in 2013.

On April 23, 2015, the company sold and leased back, under four separate lease agreements, four properties located in Ohio and one property in Florida for net proceeds of $23,000,000, which were used to reduce debt under the U.S. and Canadian Credit Facility. The total annual rent for the properties will be $2,275,000 for the first year, which can increase annually over the 20 year term of the leases based on the applicable geographical consumer price index (CPI). Each of the four lease agreements contains three 10-year renewals with the rent for each option term based on the greater of the then-current fair market rent for each property or the then- current rate and increasing annually by the applicable CPI. Under the terms of the lease agreements, the company is responsible for all taxes, insurance and utilities. The company is permitted to sublet the properties; however, the properties are currently being utilized exclusively by the company and there is no current subletting. The company is required to adequately maintain each of the properties and any leasehold improvements will be amortized over the lesser of the lives of the improvements or the remaining lease lives.

In connection with the transaction, the requirements for sale lease-back accounting were met. Accordingly, the company recorded the sale of the properties, removed the related property and equipment from the company's balance sheet, recognized an initial deferred gain of $7,414,000 and an immediate loss of $257,000 related to one property and recorded new lease liabilities. Specifically, the company recorded four capital leases totaling $32,339,000 and one operating lease related to leased land, which was not a material component of the transaction. The gains on the sales of the properties are required to be deferred and recognized over the life of the leases as the property sold is being leased back. The deferred gain is classified under Other Long-Term Obligations on the Condensed Consolidated Balance Sheet.

The amount of buildings and equipment capitalized in connection with capital leases was $42,640,000 and $12,123,000 at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, accumulated amortization was $7,667,000 and $7,143,000, respectively, which is included in depreciation expense.

Future minimum operating and capital lease commitments, as of December 31, 2015, are as follows (in thousands):

	Capital Leases			Operating Leases
2016	$	3,375		$	15,067
2017	3,375			8,804
2018	2,848			5,005
2019	2,671			2,378
2020	2,671			1,101
Thereafter	32,872			268
Total future minimum lease payments	47,812			$	32,623
Amounts representing interest	(12,839		)
Present value of minimum lease payments	$	34,973

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Retirement and Benefit Plans

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement and Benefit Plans

Retirement and Benefit Plans

Substantially all full-time salaried and hourly domestic employees are included in the Invacare Retirement Savings Plan sponsored by the company. The company makes matching cash contributions up to 66.7% of employees’ contributions up to 3% of compensation. The company also makes quarterly contributions to this Plan equal to a percentage of qualified wages. In 2015, quarterly contributions were made at 1% of qualified wages. The company may make discretionary contributions to the domestic plans based on an annual resolution of the Board of Directors. Contribution expense for the Invacare Retirement Savings Plan in 2015, 2014 and 2013 was $2,573,000, $2,698,000 and $3,126,000, respectively.

The company sponsors a Deferred Compensation Plus Plan covering certain employees, which provides for elective deferrals and the company retirement deferrals so that the total retirement deferrals equal amounts that would have contributed to the company’s principal retirement plans if it were not for limitations imposed by income tax regulations.

The company sponsors a non-qualified defined benefit Supplemental Executive Retirement Plan (SERP) for certain key executives. Effective December 31, 2008, the SERP was amended, in part to comply with IRS Section 409A. As a result of the amendment, the plan became a defined benefit cash balance plan for the non-retired participants and thus, future payments by the company will be made based upon a cash balance formula with interest credited at a rate determined annually by the Compensation and Management Development Committee of the Board of Directors. In 2015 interest was credited at 0% for active participants in the SERP in accordance with a July 1, 2011 resolution of the Compensation and Management Development Committee of the Board of Directors. The plan continues to be unfunded with individual hypothetical accounts maintained for each participant.

The SERP projected benefit obligation related to this unfunded plan was $6,209,000 and $27,548,000 at December 31, 2015 and 2014, respectively, and the accumulated benefit obligation was $6,209,000 and $27,548,000 at December 31, 2015 and 2014, respectively. The projected benefit obligations were calculated using an assumed future salary increase of 4% at both December 31, 2015 and 2014. The assumed discount rate, relevant for three participants unaffected by the plan conversion was 4.34% and 3.95% for 2015 and 2014, respectively, based upon the discount rate on high-quality fixed-income investments without adjustment. The retirement age was 67 for 2015 and 67 for 2014. Expense for the plan in 2015 was $142,000 compared to expense of $539,000 in 2014 and income of $14,000 in 2013. The expense was comprised of interest income of $42,000 in 2015, interest expense of $377,000 in 2014 and income of $236,000 in 2013 with the remaining portion related to service costs, prior service costs and other gains/losses. Benefit payments in 2015, 2014 and 2013 were $21,517,000, $394,000 and $398,000, respectively.

The company also sponsors a Death Benefit Only Plan (DBO) for certain key executives that provides a benefit equal to three times the participant’s final target earnings should the participant’s death occur while an employee and a benefit equal to one times the participant’s final earnings upon the participant’s death after normal retirement or if a participant dies after his or her employment with the company is terminated following a change in control of the company. Expense for the plan in 2015 was $103,000 compared to expense of $808,000 and income of $259,000 in 2014 and 2013, respectively. The expense was comprised of service and accrual adjustment expense of $28,000 in 2015, expense of $692,000 in 2014 and income of $364,000 in 2013 with the remaining portion related to interest costs in each year, respectively. There were no benefit payments in 2015, 2014 or 2013.

In conjunction with these non-qualified and unfunded U.S. defined benefit plans, the company has invested in life insurance policies related to certain employees to help satisfy these obligations of which $11,902,000 and $21,338,000 in life insurance policies were sold during 2015 and 2014, respectively, to fund payments related to the retirement of certain executive officers of the company.

In Europe, the company maintains two defined benefit plans in Switzerland. In Switzerland, a statutory pension plan is maintained with a private insurance company and, in accordance with Swiss law, the plan functions as a defined contribution plan whereby employee and employer contributions are defined as a percentage of individual salary depending on the age of the employee and a guaranteed interest rate, which is annually defined by the Swiss Pension Fund. Under U.S. GAAP, the plans are treated as a defined benefit plans. During 2014, the company terminated its plan in the Netherlands which contained benefits and provisions for an Old Age Pension benefit that started at age 65 and were payable until death and a Survivors Pension that started immediately after the death of the insured and is payable until the death of the surviving spouse. Under U.S. GAAP the plan was treated as a defined benefit plan. Income for both the Switzerland and Netherlands plans was $19,000, $220,000 and $205,000 in 2015, 2014 and 2013, respectively.

Accumulated other comprehensive income associated with the SERP, DBO, Swiss and Netherlands pension plans combined was $9,757,000 and $7,601,000 as of December 31, 2015 and 2014, respectively for a net change of $2,156,000 with $226,000 in net periodic benefit income recognized during the year.

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Equity Compensation

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Equity Compensation

Equity Compensation

The company’s Common Shares have a $.25 stated value. The Common Shares and the Class B Common Shares generally have identical rights, terms and conditions and vote together as a single class on most issues, except that the Class B Common Shares have ten votes per share, carry a 10% lower cash dividend rate and, in general, can only be transferred to family members. Holders of Class B Common Shares are entitled to convert their shares into Common Shares at any time on a share-for-share basis.

On May 16, 2013 shareholders approved the Invacare Corporation 2013 Equity Compensation Plan (the “2013 Plan”), which was adopted on March 27, 2013 by the company's Board of Directors (the “Board”). The Board adopted the 2013 Plan to replace the company's prior equity plan, the Invacare Corporation Amended and Restated 2003 Performance Plan (the “2003 Plan”), which expired on May 21, 2013. Due to its expiration, no new awards may be granted under the 2003 Plan; however, awards granted prior to its expiration will remain in effect under their original terms.

The 2013 Plan uses a fungible share-counting method, under which each common share underlying an award of stock options or stock appreciation rights ("SAR") will count against the number of total shares available under the 2013 Plan as one share; and each common share underlying any award other than a stock option or a SAR will count against the number of total shares available under the 2013 Plan as two shares. Any common shares that are added back to the 2013 Plan as the result of the cancellation or forfeiture of an award granted under the 2013 Plan will be added back in the same manner such shares were originally counted against the total number of shares available under the 2013 Plan. Each common share that is added back to the 2013 Plan due to a cancellation or forfeiture of an award granted under the 2003 Plan will be added back as one common share.

The Compensation and Management Development Committee of the Board (the “Compensation Committee”), in its discretion, may grant an award under the 2013 Plan to any director or employee of the company or an affiliate. The 2013 Plan initially allows the Compensation Committee to grant up to 4,460,337 common shares in connection with the following types of awards with respect to shares of the company's common shares: incentive stock options, nonqualified stock options, SARs, restricted stock, restricted stock units, unrestricted stock and performance shares. The Compensation Committee also may grant performance units that are payable in cash. The Compensation Committee has the authority to determine which participants will receive awards, the amount of the awards and the other terms and conditions of the awards. 

The 2013 Plan provides that shares granted come from the company’s authorized but unissued common shares or treasury shares. In addition, the company’s stock-based compensation plans allow participants to exchange mature shares for minimum withholding taxes, which results in the company acquiring treasury shares. Under these provisions, the company acquired approximately 7,000 treasury shares for $134,000 in 2015, 29,000 shares for $471,000 in 2014 and 23,000 shares for $532,000 in 2013.

The amounts of equity-based compensation expense recognized as part of selling, general and administrative expenses were as follows (in thousands):

	2015		2014		2013
Non-Qualified stock options	$	1,228	$	3,356	$	3,926
Restricted stock and restricted stock units	2,785		2,270		2,031
Performance shares and performance share units	—		—		—
Total stock-based compensation expense	$	4,013	$	5,626	$	5,957

As of December 31, 2015, unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2013 Plan and previous plans, which is related to non-vested options and shares, was as follows (in thousands):

	2015		2014		2013
Non-Qualified stock options	$	1,059	$	2,600	$	8,270
Restricted stock and restricted stock units	9,476		4,461		3,705
Performance shares and performance share units	—		—		—
Total stock-based compensation expense	$	10,535	$	7,061	$	11,975

Total unrecognized compensation cost will be adjusted for future changes in actual and estimated forfeitures and for updated vesting assumptions for the performance share awards (see "Performance Shares and Performance Share Units" below). No tax benefit for share-based compensation was realized during 2015, 2014 and 2013 as a result of a valuation allowance against deferred tax assets. In accordance with ASC 718, any tax benefits resulting from tax deductions in excess of the compensation expense recognized is classified as a component of financing cash flows.

Stock Options

Generally, non-qualified stock option awards typically have a term of ten years and are granted at the fair market value of the company’s common shares on the date of grant. The company expects the compensation expense to be recognized over a weighted-average period of approximately 2 years.

The following table summarizes information about stock option activity for the three years ended 2015, 2014 and 2013:

	2015			Weighted Average Exercise Price		2014			Weighted Average Exercise Price		2013			Weighted Average Exercise Price
Options outstanding at January 1	3,600,132			$	22.74	4,533,782			$	23.86	4,664,634			$	26.21
Granted	—			0.00		8,977			16.71		756,700			14.47
Exercised	(172,218		)	13.95		(33,810		)	14.16		(30,166		)	16.94
Canceled	(485,131		)	34.98		(908,817		)	28.57		(857,386		)	28.63
Options outstanding at December 31	2,942,783			$	21.22	3,600,132			$	22.74	4,533,782			$	23.86
Options exercise price range at December 31	$ 13.37 to					$ 13.37 to					$ 13.35 to
	$	33.36				$	47.80				$	47.80
Options exercisable at December 31	2,656,983					2,954,082					2,985,175
Shares available for grant at December 31*	2,659,562					3,654,426					4,460,337

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 * Shares available for grant as of December 31, 2015 reduced by net restricted stock / unit and performance share / unit award activity of 1,110,740 shares and 681,058 shares, respectively.

The following table summarizes information about stock options outstanding at December 31, 2015:

	Options Outstanding				Options Exercisable
Exercise Prices	Number Outstanding At 12/31/15	Weighted Average Remaining Contractual Life Years	Weighted Average Exercise Price		Number Exercisable At 12/31/15	Weighted Average Exercise Price
$ 13.37 – $20.00	778,159	6.7	$	14.12	493,671	$	14.11
$ 20.01 – $25.00	1,353,578	3.3	22.59		1,353,578	22.59
$ 25.01 – $30.00	783,738	3.7	25.55		783,738	25.55
$ 30.01 – $33.36	27,308	1.0	31.74		25,996	31.73
Total	2,942,783	4.3	$	21.22	2,656,983	$	21.98

Pursuant to the Plans, the Committee has established that grants may not be exercised within one year from the date granted and options must be exercised within ten years from the date granted. Accordingly, for the stock options issued in 2014 and 2013, 25% of such options vested in the year following issuance. The stock options awarded during such years provided a four-year vesting period whereby options vest equally in each year. Options granted with graded vesting are accounted for as single options. The 2015, 2014 and 2013 expense has been adjusted for estimated forfeitures of awards that will not vest because service or employment requirements have not been met.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for awards granted in 2014 and 2013 as no options were granted in 2015:

	2014		2013
Expected dividend yield	0.3	%	0.4	%
Expected stock price volatility	36.8	%	38.2	%
Risk-free interest rate	1.76	%	0.82	%
Expected life in years	6.1		6.1
Forfeiture percentage	13.0	%	9.2	%

Expected dividend yields are based on historical dividends as the company has no current intention of changing its dividend policy. Expected stock price volatility percentages are calculated at each date of grant based on historical stock prices for a period of time commensurate with the expected life of the option. The assumed expected lives and forfeiture percentages are based on the company's historical analysis of option history.

The weighted-average fair value of options granted during 2014 and 2013 was $6.23 and $5.33, respectively. The weighted-average remaining contractual life of options outstanding at December 31, 2015, 2014 and 2013 was 4.3, 5.0 and 5.8 years, respectively. The weighted-average contractual life of options exercisable at December 31, 2015 was 4.0 years. The total intrinsic value of stock awards exercised in 2015, 2014 and 2013 was $1,107,000, $101,000 and $158,000, respectively. As of December 31, 2015, the intrinsic value of all options outstanding and of all options exercisable was $2,562,000 and $1,636,000, respectively.

The exercise of stock awards in 2015, 2014 and 2013 resulted in cash received by the company totaling $2,413,000, $480,000 and $512,000 for each period, respectively with no tax benefits for any period. The total fair value of awards vested during 2015, 2014 and 2013 was $1,867,000, $3,436,000 and $3,778,000, respectively.

Restricted Stock and Restricted Stock Units

The following table summarizes information about restricted shares and restricted share units (for non-U.S. recipients):

	2015		Weighted Average Fair Value		2014		Weighted Average Fair Value		2013		Weighted Average Fair Value
Stock / Units unvested at January 1	312,423		$	17.91	264,878		$	16.69	260,548		$	19.15
Granted	480,839		19.09		218,276		19.36		114,700		14.49
Vested	(56,976	)	16.47		(93,140	)	17.62		(97,445	)	20.33
Canceled	(94,781	)	18.11		(77,591	)	17.58		(12,925	)	19.23
Stock / Units unvested at December 31	641,505		$	18.89	312,423		$	17.91	264,878		$	16.69

The restricted stock awards vest ratably over the three years after the award date, except for those awards granted in 2014, which vest after a three-year period. Unearned restricted stock compensation, determined as the market value of the shares at the date of grant, is being amortized on a straight-line basis over the vesting period.

Performance Shares and Performance Share Units

The following table summarizes information about performance shares and performance share units (for non-U.S. recipients):

	2015		Weighted Average Fair Value		2014		Weighted Average Fair Value
Shares / Units unvested at January 1	121,644		$	20.05	—		$	—
Granted	114,257		18.95		152,800		20.05
Vested	—		—		—		—
Canceled	(37,500	)	19.62		(31,156	)	20.05
Shares / Units unvested at December 31	198,401		$	19.50	121,644		$	20.05

During 2015 and 2014, the performance shares and performance share units (for non-U.S. recipients) were granted as performance awards with a 3 year performance period with payouts based on achievement of certain performance goals. The awards are classified as equity awards as they will be settled in common shares upon vesting. The number of shares earned will be determined at the end of the performance period based on achievement of performance criteria for January 1, 2016 through December 31, 2016 established by the Compensation Committee at the time of grant. Recipients will be entitled to receive a number of common shares equal to the number of performance shares that vest based upon the levels of achievement which may range between 0% and 150% of the target number of shares with the target being 100% of the initial grant.

The fair value of the performance awards is based on the stock price on the date of grant discounted for the estimated value of dividends foregone as the awards are not eligible for dividends except to the extent vested. The company assesses the probability that the performance targets will be met with expense recognized whenever it is probable that at least the minimum performance criteria will be achieved. Depending upon the company's assessment of the probability of achievement of the goals, the company may not recognize any expense associated with performance awards in a given period, may reverse prior expense recorded or record additional expense to make up for expense not recorded in a prior period. Performance award compensation expense is generally expected to be recognized over 3 years. However, for the years ended December 31, 2015 and December 31, 2014, the company concluded that it was not probable that the performance goals, as defined in the agreements, would be achieved and thus no performance award expense was recognized in 2015 or 2014.

Rights Agreement

Effective July 8, 2005, the company adopted a Rights Agreement to replace the company’s previous shareholder rights plan, which expired on July 7, 2005. In order to implement the new Rights Agreement, the Board of Directors declared a dividend of one Right for each outstanding share of the company’s Common Shares and Class B Common Shares to shareholders of record at the close of business on July 19, 2005. Each Right entitled the registered holder to purchase from the company one one-thousandth of a Series A Participating Serial Preferred Share, without par value, at a Purchase Price of $180.00 in cash, subject to adjustment. The Rights were not exercisable until after a person (an “Acquiring ”) has acquired, or obtained the right to acquire, or commences a tender offer to acquire, shares representing 30% or more of the company’s outstanding voting power, subject to deferral by the Board of Directors. If the Rights became exercisable, under certain circumstances, the Rights may have been exercisable to purchase Common Shares of the company, or common shares of an acquiring company, at a price equal to the exercise price of the Right divided by 50% of the then current market price per Common Share or acquiring company common share, as the case may be. The Rights expired on July 18, 2015 and were not redeemed or exchanged by the company. The company could have redeemed and terminated the Rights in whole, but not in part, at a price of $0.001 per Right at any time prior to 10 days following a public announcement that an Acquiring Party has acquired beneficial ownership of shares representing 30% or more of the company’s outstanding voting power, and in certain other circumstances described in the Rights Agreement. The company's Board of Directors did not renew the Rights Agreement which expired on July 18, 2015.

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Accumulated Other Comprehensive Income (Loss) by Component

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss) by Component

Accumulated Other Comprehensive Income (Loss) by Component

Changes in accumulated other comprehensive income ("OCI") during the year ended December 31, 2015 were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
December 31, 2014	$	86,236		$	(6,465	)	$	(7,601	)	$	(551	)	$	71,619
OCI before reclassifications	(91,980		)	10,576			(2,292		)	3,545			(80,151		)
Amount reclassified from accumulated OCI	—			—			136			(991		)	(855		)
Net current-period OCI	(91,980		)	10,576			(2,156		)	2,554			(81,006		)
December 31, 2015	$	(5,744	)	$	4,111		$	(9,757	)	$	2,003		$	(9,387	)

Changes in OCI during the year ended December 31, 2014 were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
December 31, 2013	$	143,845		$	(12,566	)	$	(5,414	)	$	(709	)	$	125,156
OCI before reclassifications	(57,609		)	6,101			(3,223		)	562			(54,169		)
Amount reclassified from accumulated OCI	—			—			1,036			(404		)	632
Net current-period OCI	(57,609		)	6,101			(2,187		)	158			(53,537		)
December 31, 2014	$	86,236		$	(6,465	)	$	(7,601	)	$	(551	)	$	71,619

OCI activity related to Long-Term Notes represents currency translation on notes that are long-term in nature and not intended to be settled.

Reclassifications out of accumulated OCI for the year ended December 31, 2015 and December 31, 2014 were as follows (in thousands):

	Amount reclassified from OCI						Affected Statement of Comprehensive (Income) Loss line
	2015			2014
Defined Benefit Plans
Service and interest costs	$	133		$	1,045		Selling, General and Administrative
Tax	3			(9		)	Income Taxes
Total after tax	$	136		$	1,036
Derivatives
Foreign currency forward contracts hedging sales	$	2,778		$	657		Net Sales
Foreign currency forward contracts hedging purchases	(3,890		)	(995		)	Cost of Products Sold
Interest rate swaps	—			12			Interest Expense
Total before tax	(1,112		)	(326		)
Tax	121			(78		)	Income Taxes
Total after tax	$	(991	)	$	(404	)

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Capital Stock

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Capital Stock

Capital Stock

Capital stock activity for 2015, 2014 and 2013 consisted of the following (in thousands of shares):

	Common Stock Shares	Class B Shares		Treasury Shares
January 1, 2013 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	)
Conversion of Class B to Common	351	(351	)	—
Exercise of stock options	172	—		—
Restricted stock awards	282	—		(7	)
December 31, 2015 Balance	35,024	734		(3,194	)

Stock awards for 94,781, 77,591 and 12,925 shares were canceled in 2015, 2014 and 2013, respectively.  In 2015, 2014 and 2013, dividends of $0.05 per Common Share and $0.045 per Class B Common Share were declared and paid, respectively.

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Charges Related To Restructuring Activities

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Charges Related To Restructuring Activities

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.

The company's restructuring commenced in the second quarter of 2011 with the company's decision to close the Hong, Denmark assembly facility as part of the company's ongoing globalization initiative to reduce complexity in the company's supply chain which is intended to reduce expenses to help offset pricing pressures. In the third quarter of 2011, the company continued to execute on the closure of the Hong, Denmark assembly facility and initiated the closure of a smaller facility in the U.S. Charges for the quarter ended December 31, 2011 were primarily incurred at the company's corporate headquarters for severance, with additional costs incurred as a result of the closure of the Hong, Denmark facility. The facility closures were completed in 2012 in addition to the elimination of various positions principally in the North America/Home Medical Equipment (HME) and Asia/Pacific segments.

Charges for the year ended December 31, 2011 totaled $10,534,000 including charges for severance ($8,352,000), contract exit costs primarily related to the closure of the Hong, Denmark assembly facility ($1,788,000) and inventory write-offs ($277,000), recorded in cost of products sold, and miscellaneous costs ($117,000). The majority of the 2011 North America/HME charges were incurred for severance, primarily at the corporate headquarters as the result of the elimination of various positions principally in sales and administration in Elyria, Ohio. These eliminations were permanent reductions in workforce which primarily resulted in reduced selling, general and administrative expenses. In Europe, the charges were the result of the closure of the company's Hong, Denmark facility. The assembly activities were transferred to other company facilities or outsourced to third parties. This closure enabled the company to reduce fixed operating costs related to the facility and reduce headcount with the transfer of a portion of the production to other company facilities. The 2011 charges have now been paid out and were funded with operating cash flows.

Charges for the year ended December 31, 2012 totaled $11,395,000 including charges for severance ($6,775,000), lease termination costs ($1,725,000), building and asset write-downs, primarily related to the closure of the Hong, Denmark assembly facility, and other miscellaneous charges in Europe and Asia/Pacific ($2,404,000) and inventory write-offs ($491,000) in Asia/Pacific recorded in cost of products sold. Severance charges were primarily incurred in the North America/HME segment ($4,242,000), Asia/Pacific segment ($1,681,000) and Europe segment ($817,000). In addition, a portion of the North America/HME segment severance was related to positions eliminated, principally in sales and marketing as well as manufacturing, at the company's Taylor Street facility as a result of the FDA consent decree. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. In Europe, positions were eliminated as a result of finalizing the exit from the manufacturing facility in Denmark and an elimination of a senior management position in Switzerland. In Asia/Pacific, at the end of October 2012, the company's management approved a plan to restructure the company's operations in this segment. In Australia, the company consolidated offices / warehouses, decreased staffing and exited various activities while returning to a focus on distribution. At the company's subsidiary, which produces microprocessor controllers, the company decided to cease the contract manufacturing business for companies outside of the healthcare industry. Payments for the year ended December 31, 2012 were $9,381,000 and were funded with operating cash flows. The 2012 charges have been paid out.

Charges for the year ended December 31, 2013 totaled $9,336,000 including charges for severance ($8,282,000), lease termination costs ($698,000) and other miscellaneous charges principally in North America/HME ($356,000). Severance charges were primarily incurred in the North America/HME segment ($5,405,000), Europe segment ($1,640,000) and Asia/Pacific segment ($970,000). The charges were incurred as a result of the elimination of various positions as part of the company's globalization initiatives. North America/HME segment severance was principally related to positions eliminated due to lost sales volumes resulting from the impact of the FDA consent decree. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. In Europe, severance incurred for elimination of certain sales and supply chain positions. In Asia/Pacific, severance principally incurred at the company's subsidiary, which produces microprocessor controllers, as a result of the company's decision in 2012 to cease the contract manufacturing business for companies outside of the healthcare industry. The lease termination costs were principally related to Australia as a result of the restructuring announced in 2012. Payments for the year ended December 31, 2013 were $11,844,000 and were funded with operating cash flows and cash on hand. The 2013 charges have been paid out.

Charges for the year ended December 31, 2014 totaled $11,112,000 including charges for severance ($9,841,000), other charges in IPG and Europe ($1,286,000) principally related to building write-downs and lease termination cost reversals ($15,000). Severance charges were incurred in the North America/HME segment ($4,404,000), Other ($2,978,000), IPG segment ($1,163,000), Asia/Pacific segment ($769,000) and Europe segment ($527,000). The North America/HME segment severance was principally related to additional positions eliminated due to lost sales volumes resulting from the continued impact of the FDA consent decree. The Other severance related to the elimination of two senior corporate executive positions. IPG segment severance related principally to the closure of the London, Canada facility. Europe and Asia/Pacific severance related to the elimination of certain positions as a result of general restructuring efforts. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. Payments for the year ended December 31, 2014 were $11,131,000 and were funded with operating cash flows and cash on hand. The majority of the 2014 charges have been paid out other than certain executive charge payments which will be paid out over next few years.

Charges for the year ended December 31, 2015 totaled $1,971,000 including charges for severance ($1,678,000) and charges primarily in the North America/HME segment ($293,000) principally related to a building lease termination. Severance charges were incurred in the North America/HME segment ($1,069,000), Europe segment ($510,000), IPG segment ($73,000) and Asia/Pacific segment ($26,000) related to the elimination of certain positions as a result of general restructuring efforts. The savings from these charges will be reflected primarily in reduced selling, general and administrative expenses and manufacturing expenses for the company. Payments for the year ended December 31, 2015 were $3,723,000 and were funded with operating cash flows and cash on hand. The majority of the 2015 charges are expected to be paid out within the next 12 months. To date, the company's liquidity has not been materially impacted.

There have been no material changes in accrued balances related to the charges, either as a result of revisions in the plans or changes in estimates. In addition, the savings anticipated as a result of the company's restructuring plans have been or are expected to be achieved, primarily resulting in reduced salary and benefit costs principally impacting Selling, General and Administrative expenses, and to a lesser extent, Costs of Products Sold. However, these savings have been more than offset by continued margin decline, principally as a result of product mix, and higher regulatory and compliance costs related to quality system improvements as well as reduced net sales volumes.

A progression by reporting segment of the accruals recorded as a result of the restructuring is as follows (in thousands):

	Severance			Inventory			Lease Terminations			Other			Total
December 31, 2010 Balance	$	—		$	—		$	—		$	—		$	—
Charges
North America/HME	4,755			—			—			4			4,759
IPG	123			—			—			—			123
Europe	3,288			277			1,788			113			5,466
Asia/Pacific	186			—			—			—			186
Total	8,352			277			1,788			117			10,534
Payments
North America/HME	(1,663		)	—			—			(4		)	(1,667		)
IPG	(52		)	—			—			—			(52		)
Europe	(1,546		)	(277		)	(1,714		)	(113		)	(3,650		)
Asia/Pacific	(186		)	—			—			—			(186		)
Total	(3,447		)	(277		)	(1,714		)	(117		)	(5,555		)
December 31, 2011 Balance
North America/HME	3,092			—			—			—			3,092
IPG	71			—			—			—			71
Europe	1,742			—			74			—			1,816
Asia/Pacific	—			—			—			—			—
Total	4,905			—			74			—			4,979
Charges
North America/HME	4,242			—			5			—			4,247
IPG	35			—			—			—			35
Europe	817			—			53			1,223			2,093
Asia/Pacific	1,681			491			1,667			1,181			5,020
Total	6,775			491			1,725			2,404			11,395
Payments
North America/HME	(3,587		)	—			(5		)	—			(3,592		)
IPG	(106		)	—			—			—			(106		)
Europe	(1,964		)	—			(127		)	(1,223		)	(3,314		)
Asia/Pacific	(812		)	(340		)	(42		)	(1,175		)	(2,369		)
Total	(6,469		)	(340		)	(174		)	(2,398		)	(9,381		)
December 31, 2012 Balance
North America/HME	3,747			—			—			—			3,747
Europe	595			—			—			—			595
Asia/Pacific	869			151			1,625			6			2,651
Total	5,211			151			1,625			6			6,993
Charges
North America/HME	5,405			—			164			353			5,922
IPG	267			—			—			—			267
Europe	1,640			—			—			—			1,640
Asia/Pacific	970			—			534			3			1,507
Total	8,282			—			698			356			9,336
Payments
North America/HME	(6,347		)	—			(164		)	(353		)	(6,864		)
IPG	(175		)	—			—			—			(175		)
Europe	(1,146		)	—			—			—			(1,146		)
Asia/Pacific	(1,839		)	(151		)	(1,660		)	(9		)	(3,659		)
Total	$	(9,507	)	$	(151	)	$	(1,824	)	$	(362	)	$	(11,844	)

	Severance			Inventory		Lease Terminations			Other			Total
December 31, 2013 Balance
North America/HME	$	2,805		$	—	$	—		$	—		$	2,805
IPG	92			—		—			—			92
Europe	1,089			—		—			—			1,089
Asia/Pacific	—			—		499			—			499
Total	3,986			—		499			—			4,485
Charges
North America/HME	4,404			—		—			—			4,404
IPG	1,163			—		—			761			1,924
Europe	527			—		—			525			1,052
Asia/Pacific	769			—		(15		)	—			754
Other	2,978			—		—			—			2,978
Total	9,841			—		(15		)	1,286			11,112
Payments
North America/HME	(6,547		)	—		—			—			(6,547		)
IPG	(1,107		)	—		—			(761		)	(1,868		)
Europe	(1,195		)	—		—			(525		)	(1,720		)
Asia/Pacific	(769		)	—		(227		)	—			(996		)
Total	(9,618		)	—		(227		)	(1,286		)	(11,131		)
December 31, 2014 Balance
North America/HME	662			—		—			—			662
IPG	148			—		—			—			148
Europe	421			—		—			—			421
Asia/Pacific	—			—		257			—			257
Other	2,978			—		—			—			2,978
Total	4,209			—		257			—			4,466
Charges
North America/HME	1,069			—		292			—			1,361
IPG	73			—		—			—			73
Europe	510			—		—			—			510
Asia/Pacific	26			—		1			—			27
Total	1,678			—		293			—			1,971
Payments
North America/HME	(1,069		)	—		(55		)	—			(1,124		)
IPG	(221		)	—		—			—			(221		)
Europe	(619		)	—		—			—			(619		)
Asia/Pacific	(26		)	—		(258		)	—			(284		)
Other	(1,475		)	—		—			—			(1,475		)
Total	(3,410		)	—		(313		)	—			(3,723		)
December 31, 2015 Balance
North America/HME	662			—		237			—			899
Europe	312			—		—			—			312
Other	1,503			—		—			—			1,503
Total	$	2,477		$	—	$	237		$	—		$	2,714

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Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Earnings (loss) from continuing operations before income taxes consist of the following (in thousands):

	2015			2014			2013
Domestic	$	(54,812	)	$	(104,776	)	$	(73,529	)
Foreign	43,072			41,566			30,070
	$	(11,740	)	$	(63,210	)	$	(43,459	)

The company has provided for income taxes (benefits) from continuing operations as follows (in thousands):

	2015			2014			2013
Current:
Federal	$	(167	)	$	(7,105	)	$	(2,485	)
State	(150		)	(63		)	300
Foreign	11,439			15,105			11,043
	11,122			7,937			8,858
Deferred:
Federal	3,222			100			3,011
State	318			—			—
Foreign	48			(2,487		)	(994		)
	3,588			(2,387		)	2,017
Income Taxes	$	14,710		$	5,550		$	10,875

Included in the 2015, 2014 and 2013 Federal current tax benefit is a benefit of $140,000, $7,175,000 and $3,455,000, respectively, related to an intra-period allocation to continuing operations. A charge in an equal amount is in discontinued operations. A reconciliation to the effective income tax rate from the federal statutory rate is as follows:

	2015		2014		2013
Statutory federal income tax rate	(35.0	)%	(35.0	)%	(35.0	)%
State and local income taxes, net of federal income tax benefit	0.9		(0.1	)	0.5
Tax credits	(61.8	)	(5.1	)	(22.8	)
Foreign taxes at less than the federal statutory rate (including tax holidays)	(46.1	)	(10.7	)	(10.6	)
Federal and foreign valuation allowance	168.0		52.5		35.8
Withholding taxes	3.0		0.6		0.7
Compensation	0.6		0.1		0.5
Dividends	100.1		12.3		54.6
Life insurance	(2.7	)	4.1		(1.5	)
Foreign branch activity	(8.1	)	(1.8	)	(1.8	)
Uncertain tax positions	6.7		1.2		1.3
Other, net	(0.3	)	(9.3	)	3.3
	125.3	%	8.8	%	25.0	%

Effective October 1, 2015, the company adopted ASU 2015-17, "Balance Sheet Classification of Deferred Taxes", on a prospective basis, and thus the company's deferred tax assets and liabilities have been classified as long-term in its Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted.

At December 31, 2015, total deferred tax assets were $154,401,000, total deferred tax liabilities were $33,636,000 and the tax valuation allowance total was $151,972,000 for a net deferred income tax liability of $31,207,000 compared to total deferred tax assets of $137,511,000, total deferred tax liabilities of $33,778,000 and a tax valuation allowance total of $133,912,000 for a net deferred income tax liability of $30,179,000 at December 31, 2014. Significant components of deferred income tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands):

	2015			2014
Current deferred income tax assets (liabilities), net:
Bad debt	$	—		$	5,364
Warranty	—			7,092
State and local taxes	—			2,240
Other accrued expenses and reserves	—			1,852
Inventory	—			3,096
Compensation and benefits	—			2,209
Product liability	—			594
Valuation allowance	—			(22,084		)
Other, net	—			(732		)
	$	—		$	(369	)
Long-term deferred income tax assets (liabilities), net:
Bad Debt	$	3,670		$	—
Warranty	5,357			—
Other accrued expenses and reserves	4,355			—
Inventory	2,395			—
Goodwill and intangibles	(25,008		)	(21,915		)
Convertible debt	(421		)	(700		)
Fixed assets	(8,207		)	(10,431		)
Compensation and benefits	7,136			14,630
Loss and credit carryforwards	102,194			65,123
Product liability	4,107			4,919
State and local taxes	19,932			17,745
Valuation allowance	(151,972		)	(111,828		)
Other, net	5,255			12,647
	$	(31,207	)	$	(29,810	)
Net Deferred Income Taxes	$	(31,207	)	$	(30,179	)

The company recorded a valuation allowance for its U.S. and certain foreign country net deferred tax assets where it is in a three year cumulative loss. The company made net payments for income taxes of $7,966,000, $6,384,000, and $6,349,000 during the years ended December 31, 2015, 2014 and 2013, respectively.

At December 31, 2015, the company had foreign tax loss carryforwards of approximately $61,330,000 which are non-expiring, of which $61,330,000 are offset by valuation allowances. At December 31, 2015, the company also had $563,000,000 of domestic state and local tax loss carryforwards, of which $206,000,000 expire between 2016 and 2019, $191,000,000 expire between 2020 and 2029 and $166,000,000 expire after 2029. The company has a federal domestic net operating loss carryforward of $131,130,000 which expires in 2034 and 2035 and federal tax credit carryforwards of $38,520,000 of which $4,169,000 expire between 2016 and 2018 and $32,522,000 expire between 2019 and 2025, $1,582,000 expire between 2031 and 2035, and $247,000 are indefinite.

As of December 31, 2015 and 2014, the company had a liability for uncertain tax positions, excluding interest and penalties of $8,366,000 and $10,030,000, respectively. The company expects payments over the next twelve months of $9,100,000 pursuant to a payment plan entered in a foreign country for an item being contested in the courts and an anticipated settlement of an audit. The total liabilities associated with unrecognized tax benefits that, if recognized, would impact the effective tax rates were $8,366,000 and $10,030,000 at December 31, 2015 and 2014, respectively.

A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):

	2015			2014
Balance at beginning of year	$	11,019		$	10,833
Additions to:
Positions taken during the current year	227			348
Positions taken during a prior year	270			418
Deductions due to:
Exchange rate impact	(1,197		)	(362		)
Positions taken during a prior year	(527		)	—
Lapse of statute of limitations	(239		)	(218		)
Balance at end of year	$	9,553		$	11,019

The company recognizes interest and penalties associated with uncertain tax positions in income tax expense. During 2015, 2014 and 2013 the (expense) benefit for interest and penalties was $(315,000), $(500,000) and $(676,000), respectively. The company had approximately $5,440,000 and $5,130,000 of accrued interest and penalties as of December 31, 2015 and 2014, respectively.

The company and its subsidiaries file income tax returns in the U.S. and certain foreign jurisdictions. The company is subject to U.S. federal income tax examinations for calendar years 2012 to 2015, and is subject to various U.S. state income tax examinations for 2011 to 2015. With regards to foreign income tax jurisdictions, the company is generally subject to examinations for the periods 2009 to 2015.

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Net Earnings (Loss) Per Common Share

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Net Earnings (Loss) Per Common Share

Net Earnings (Loss) Per Common Share

The following table sets forth the computation of basic and diluted net earnings (loss) per common share.

	2015			2014			2013
	(In thousands except per share data)
Basic
Average common shares outstanding	32,171			32,009			31,915
Net loss from continuing operations	$	(26,450	)	$	(68,760	)	$	(54,334	)
Net earnings from discontinued operations	$	260		$	12,690		$	87,385
Net earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Net loss per common share from continuing operations	$	(0.82	)	$	(2.15	)	$	(1.70	)
Net earnings per common share from discontinued operations	$	0.01		$	0.40		$	2.74
Net earnings (loss) per common share	$	(0.81	)	$	(1.75	)	$	1.04
Diluted
Average common shares outstanding	32,171			32,009			31,915
Stock options and awards	512			188			128
Average common shares assuming dilution	32,683			32,197			32,043
Net loss from continuing operations	$	(26,450	)	$	(68,760	)	$	(54,334	)
Net earnings from discontinued operations	$	260		$	12,690		$	87,385
Net earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Net loss per common share from continuing operations *	$	(0.82	)	$	(2.15	)	$	(1.70	)
Net earnings per common share from discontinued operations	$	0.01		$	0.39		$	2.73
Net earnings (loss) per common share *	$	(0.81	)	$	(1.75	)	$	1.03

* Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

At December 31, 2015, 2014 and 2013, shares associated with stock options of 1,479,912, 2,857,590 and 4,307,458, respectively, were excluded from the average common shares assuming dilution, as they were anti-dilutive. At December 31, 2015, the majority of the anti-dilutive shares were granted at an exercise price of $18.51, which was lower than the average fair market value price of $25.24 for 2015. For the 2015, 2014 and 2013 net loss per share from continuing operations calculation, all of the shares associated with stock options were anti-dilutive because of the company's loss. In 2014, the majority of the anti-dilutive shares were granted at an exercise price of $41.87, which was higher than the average fair market value price of $16.95 for 2014. In 2013, the majority of the anti-dilutive shares were granted at an exercise price of $41.87, which was higher than the average fair market value price of $16.48 for 2013. Shares necessary to settle a conversion spread on the convertible notes issued in 2007 were not included in the common shares assuming dilution as the average market price of the company stock in 2015, 2014 and 2013 did not exceed the conversion price.

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Concentration Of Credit Risk

12 Months Ended

Dec. 31, 2015

Risks and Uncertainties [Abstract]

Concentration Of Credit Risk

Concentration of Credit Risk

The company manufactures and distributes durable medical equipment and supplies to the home health care, retail and extended care markets. The company performs credit evaluations of its customers’ financial condition. The company utilizes De Lage Landen, Inc. (“DLL”), a third party financing company, to provide the majority of future lease financing to Invacare’s North America customers. The DLL agreement provides for direct leasing between DLL and the Invacare customer. The company retains a recourse obligation of $6,089,000 at December 31, 2015 to DLL for events of default under the contracts, which total $39,510,000 at December 31, 2015. Guarantees, ASC 460, requires the company to record a guarantee liability as it relates to the limited recourse obligation. As such, the company has recorded a liability of $109,000 for this guarantee obligation within accrued expenses. The company's recourse is re-evaluated by DLL biannually, considers activity between the biannual dates and excludes any receivables purchased by the company from DLL. The company monitors the collections status of these contracts and has provided amounts for estimated losses in its allowances for doubtful accounts in accordance with Receivables, ASC 310-10-05-4. Credit losses are provided for in the financial statements.

Substantially all of the company’s receivables are due from health care, medical equipment providers and long term care facilities located throughout the United States, Australia, Canada, New Zealand and Europe. A significant portion of products sold to dealers, both foreign and domestic, is ultimately funded through government reimbursement programs such as Medicare and Medicaid. The company has also seen a significant shift in reimbursement to customers from managed care entities. As a consequence, changes in these programs can have an adverse impact on dealer liquidity and profitability. In addition, reimbursement guidelines in the home health care industry have a substantial impact on the nature and type of equipment an end user can obtain as well as the timing of reimbursement and, thus, affect the product mix, pricing and payment patterns of the company’s customers.

The company’s top 10 customers accounted for approximately 16.4% of 2015 net sales. The loss of business of one or more of these customers may have a significant impact on the company, although no single customer accounted for more than 3.3% of the company’s 2015 net sales. Providers who are part of a buying group generally make individual purchasing decisions and are invoiced directly by the company.

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Derivatives

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

ASC 815 requires companies to recognize all derivative instruments in the consolidated balance sheet as either assets or liabilities at fair value. The accounting for changes in fair value of a derivative is dependent upon whether or not the derivative has been designated and qualifies for hedge accounting treatment and the type of hedging relationship. For derivatives designated and qualifying as hedging instruments, the company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

Cash Flow Hedging Strategy

The company uses derivative instruments in an attempt to manage its exposure to transactional foreign currency exchange risk and interest rate risk. Foreign forward exchange contracts are used to manage the price risk associated with forecasted sales denominated in foreign currencies and the price risk associated with forecasted purchases of inventory over the next twelve months. Interest rate swaps are, at times, utilized to manage interest rate risk associated with the company’s fixed and floating-rate borrowings.

The company recognizes its derivative instruments as assets or liabilities in the consolidated balance sheet measured at fair value. A majority of the company’s derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the fair value of the hedged item, if any, is recognized in current earnings during the period of change.

During a portion of 2014 and all of 2013, the company was a party to interest rate swap agreements that qualified as cash flow hedges and effectively converted floating-rate debt to fixed-rate debt, so the company could avoid the risk of changes in market interest rates. The gains or losses on interest rate swaps are reflected in interest expense on the consolidated statement of comprehensive income (loss).

To protect against increases/decreases in forecasted foreign currency cash flows resulting from inventory purchases/sales over the next year, the company utilizes foreign currency forward contracts to hedge portions of its forecasted purchases/sales denominated in foreign currencies. The gains and losses are included in cost of products sold and selling, general and administrative expenses on the consolidated statement of comprehensive income (loss). If it is later determined that a hedged forecasted transaction is unlikely to occur, any prospective gains or losses on the forward contracts would be recognized in earnings. The company does not expect any material amount of hedge ineffectiveness related to forward contract cash flow hedges during the next twelve months.

The company has historically not recognized any material amount of ineffectiveness related to forward contract cash flow hedges because the company generally limits its hedges to between 50% and 90% of total forecasted transactions for a given entity’s exposure to currency rate changes and the transactions hedged are recurring in nature. Furthermore, the majority of the hedged transactions are related to intercompany sales and purchases for which settlement occurs on a specific day each month. Forward contracts with a total notional amount in USD of $136,818,000 and $157,121,000 matured during the twelve months ended December 31, 2015 and 2014, respectively.

Foreign exchange forward contracts qualifying and designated for hedge accounting treatment were as follows (in thousands USD):

	December 31, 2015					December 31, 2014
	Notional Amount		Unrealized Net Gain (Loss)			Notional Amount		Unrealized Net Gain (Loss)
USD / AUD	$	2,910	$	(83	)	$	1,250	$	65
USD / CAD	3,893		181			3,570		(63		)
USD / CHF	—		—			111		—
USD / CNY	16,786		(282		)	—		—
USD / EUR	72,758		2,681			25,524		—
USD / GBP	3,862		22			1,199		3
USD / NZD	4,893		37			7,018		(55		)
USD / SEK	5,128		39			594		1
USD / MXP	8,494		(284		)	10,297		(657		)
EUR / AUD	669		(10		)	452		5
EUR / CAD	1,283		(17		)	580		(1		)
EUR / CHF	1,944		(17		)	505		(2		)
EUR / DKK	—		—			643		(3		)
EUR / GBP	36,567		(424		)	11,906		23
EUR / NOK	3,375		(55		)	1,490		43
EUR / SEK	2,464		(42		)	2,917		(9		)
EUR / NZD	3,609		476			7,074		60
GBP / AUD	830		(46		)	656		22
GBP / CHF	463		(7		)	331		(1		)
GBP / SEK	2,067		(1		)	1,035		(2		)
AUD / CAD	—		—			1,538		30
AUD / CHF	—		—			93		1
AUD / NZD	352		8			537		19
AUD / SEK	—		—			61		(1		)
CAD / SEK	—		—			182		(1		)
CHF / DKK	—		—			269		(2		)
DKK / SEK	37,293		46			2,497		(44		)
NOK / CHF	—		—			66		2
NOK / SEK	3,524		(39		)	1,547		19
	$	213,164	$	2,183		$	83,942	$	(548	)

Derivatives Not Qualifying or Designated for Hedge Accounting Treatment

The company utilizes foreign currency forward contracts that are not designated as hedges in accordance with ASC 815. These contracts are entered into to eliminate the risk associated with the settlement of short-term intercompany trading receivables and payables between Invacare Corporation and its foreign subsidiaries. The currency forward contracts are entered into at the same time as the intercompany receivables or payables are created so that upon settlement, the gain/loss on the settlement is offset by the gain/loss on the foreign currency forward contract. No material net gain or loss was realized by the company in 2015 or 2014 related to these contracts and the associated short-term intercompany trading receivables and payables.

Foreign exchange forward contracts not qualifying or designated for hedge accounting treatment entered into in 2015 and 2014, respectively, and outstanding were as follows (in thousands USD):

	December 31, 2015					December 31, 2014
	Notional Amount		Gain (Loss)			Notional Amount		Gain (Loss)
AUD / USD	$	8,051	$	337		$	7,300	$	117
CAD / USD	5,762		(4		)	6,016		$	(6	)
CNY / USD	9,943		(441		)	3,200		(14		)
EUR / USD	2,118		53			53,365		(1,585		)
DKK / USD	7,927		125			—		—
GBP / USD	4,526		(106		)	5,592		18
NZD / USD	—		—			4,500		12
NOK / USD	1,838		(18		)	—		—
	$	40,165	$	(54	)	$	79,973	$	(1,458	)

The fair values of the company’s derivative instruments were as follows (in thousands):

	December 31, 2015				December 31, 2014
	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	$	3,626	$	1,443	$	373	$	921
Derivatives not designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	517		571		147		1,605
Total derivatives	$	4,143	$	2,014	$	520	$	2,526

The fair values of the company’s foreign currency forward assets and liabilities are included in Other Current Assets and Accrued Expenses, respectively in the Consolidated Balance Sheets.

The effect of derivative instruments on the Statement of Operations and Other Comprehensive Income (OCI) was as follows, net of tax (in thousands):

Derivatives in ASC 815 cash flow hedge relationships	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Amount of Loss Recognized in Income on Derivatives  (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Year ended December 31, 2015
Foreign currency forward exchange contracts	$	3,545	$	991		$	(11	)
Year ended December 31, 2014
Foreign currency forward exchange contracts	$	562	$	416		$	(11	)
Interest rate swap contracts	—		(12		)	—
	$	562	$	404		$	(11	)
Derivatives not designated as hedging instruments under ASC 815						Amount of Gain (Loss) Recognized in Income on Derivatives
Year ended December 31, 2015
Foreign currency forward contracts						$	(54	)
Year ended December 31, 2014
Foreign currency forward contracts						$	(1,458	)

The gains or losses recognized as the result of the settlement of cash flow hedge foreign currency forward contracts are recognized in net sales for hedges of inventory sales or cost of product sold for hedges of inventory purchases. In 2015, net sales were decreased by $2,778,000 and cost of product sold was decreased by $3,890,000 for a net realized gain of $1,112,000. In 2014, net sales were decreased by $657,000 and cost of product sold was decreased by $995,000 for a net realized gain of $338,000 compared to a net loss of $271,000 in 2013.

The company recognized incremental expense of $12,000 and $337,000 in 2014 and 2013, respectively, related to interest rate swap agreements which are reflected in interest expense on the consolidated statement of comprehensive income (loss).

Losses of $54,000 and $1,458,000 in 2015 and 2014, respectively, and a gain$370,000 in 2013 were recognized in selling, general and administrative (SG&A) expenses on ineffective foreign currency forward contracts as well as foreign currency forward contracts not designated as hedging instruments that are entered into to offset gains/losses on intercompany trade receivables or payables. The gains/losses on the non-designated hedging instruments were substantially offset by gains/losses also recorded in SG&A expenses on intercompany trade receivables or payables.

The company has entered into foreign currency forward exchange contracts and, at times, interest rate swap contracts (the “agreements”) with various bank counterparties, each of which are subject to provisions which are similar to a master netting agreement. The agreements provide for a net settlement payment in a single currency upon a default by the company. Furthermore, the agreements provide the counterparty with a right of set off in the event of a default that would enable the counterparty to offset any net payment due by the counterparty to the company under the applicable agreement by any amount due by the company to the counterparty under any other agreement. For example, the terms of the agreement would permit a counterparty to a derivative contract that is also a lender under the company's Amended and Restated Credit Agreement to reduce any derivative settlement amounts owed to the company under the derivative contract by any amounts owed to the counterparty by the company under the Amended and Restated Credit Agreement. In addition, the agreements contain cross-default provisions that could trigger a default by the company under the agreement in the event of a default by the company under another agreement with the same counterparty. The company does not present any derivatives on a net basis in its financial statements and all derivative balances presented are subject to provisions that are similar to master netting agreements.

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Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Values of Financial Instruments

Pursuant to ASC 820, the inputs used to derive the fair value of assets and liabilities are analyzed and assigned a level I, II or III priority, with level I being the highest and level III being the lowest in the hierarchy. Level I inputs are quoted prices in active markets for identical assets or liabilities. Level II inputs are quoted prices for similar assets or liabilities in active markets: quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level III inputs are based on valuations derived from valuation techniques in which one or more significant inputs are unobservable.

The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands).

				Basis for Fair Value Measurements at Reporting Date
				Quoted Prices in Active Markets for Identical Assets / (Liabilities)	Significant Other Observable Inputs			Significant Other Unobservable Inputs
	Total			Level I	Level II			Level III
December 31, 2015:
Forward Exchange Contracts—net	$	2,129		—	$	2,129		—
December 31, 2014:
Forward Exchange Contracts—net	$	(2,006	)	—	$	(2,006	)	—

Forward Contracts: The company operates internationally, and as a result, is exposed to foreign currency fluctuations. Specifically, the exposure includes intercompany loans and third party sales or payments. In an attempt to reduce this exposure, foreign currency forward contracts are utilized and accounted for as hedging instruments. The forward contracts are used to hedge the following currencies: AUD, CAD, CHF, CNY, DKK, EUR, GBP, MXP, NOK, NZD, SEK and USD. The company does not use derivative financial instruments for speculative purposes. Fair values for the company’s foreign exchange forward contracts are based on quoted market prices for contracts with similar maturities.

The gains and losses that result from the majority of the forward contracts are deferred and recognized when the offsetting gains and losses for the identified transactions are recognized. The company recognized a net gain of $1,112,000 in 2015, a net gain of $338,000 in 2014 and a net loss of $271,000 in 2013 related to ASC 815 designated derivatives. Gains or losses recognized as the result of the settlement of forward contracts are recognized in cost of products sold for hedges of inventory transactions, sales for hedges of forecasted sales or selling, general and administrative expenses for other hedged transactions. The company’s forward contracts are included in Other Current Assets or Accrued Expenses in the Consolidated Balance Sheets.

The carrying amounts and fair values of the company’s financial instruments at December 31, 2015 and 2014 are as follows (in thousands):

	2015						2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
Cash and cash equivalents	$	60,055		$	60,055		$	38,931		$	38,931
Other investments	160			160			249			249
Installment receivables, net of reserves	1,793			1,793			1,911			1,911
Long-term debt (including current maturities of long-term debt)	(47,120		)	(47,369		)	(20,331		)	(20,248		)
Forward contracts in other current assets	4,143			4,143			520			520
Forward contracts in accrued expenses	(2,014		)	(2,014		)	(2,526		)	(2,526		)

The company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions:

Cash, cash equivalents: The carrying amount reported in the balance sheet for cash, cash equivalents equals its fair value.

Other investments: The company has made other investments in limited partnerships and non-marketable equity securities, which are accounted for using the cost method, adjusted for any estimated declines in value. These investments were acquired in private placements and there are no quoted market prices or stated rates of return. The company does not have the ability to easily sell these investments. The company completes an evaluation of the residual value related to these investments in the fourth quarter of each year. No impairment was recognized in 2015, 2014 or 2013.

Installment receivables: The carrying amount reported in the balance sheet for installment receivables approximates its fair value. The interest rates associated with these receivables have not varied significantly since inception. Management believes that after consideration of the credit risk, the net book value of the installment receivables approximates market value.

Long-term debt: Fair value for the company’s convertible debt is based on quoted market-based estimates as of the end of the year, while the revolving credit facility fair values are based upon the company’s estimate of the market for similar borrowing arrangements. These fair values are deemed to be categorized as Level 2 in the fair value hierarchy.

Intangibles and Goodwill: Under Intangibles—Goodwill and Other, ASC 350, goodwill and intangible assets deemed to have indefinite lives are subject to annual impairment tests. Furthermore, goodwill and other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. To review goodwill for impairment in accordance with ASC 350, the company first estimates the fair value of each reporting unit and compares the calculated fair value to the carrying value of the each reporting unit. A reporting unit is defined as an operating segment or one level below. The company has determined that its reporting units are the same as its operating segments. The company completes its annual impairment tests in the fourth quarter of each year. To estimate the fair values of the reporting units, the company utilizes a discounted cash flow method model in which the company forecasts income statement and balance sheet amounts based on assumptions regarding future sales growth, profitability, inventory turns, days' sales outstanding, etc. to forecast future cash flows. The cash flows are discounted using a weighted average cost of capital discount rate where the cost of debt is based on quoted rates for 20-year debt of companies of similar credit risk and the cost of equity is based upon the 20-year treasury rate for the risk free rate, a market risk premium, the industry average beta and a small cap stock adjustment. The discount rates used have a significant impact upon the discounted cash flow methodology utilized in the company's annual impairment testing as higher discount rates decrease the fair value estimates. The assumptions used are based on a market participant view and yielded a discount rate of 9.41% in 2015 for the company's impairment analysis compared to 9.89% in 2014 and 10.00% in 2013.

The company also utilizes an Enterprise Value (EV) to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) Method to compute the fair value of its reporting units which considers potential acquirers and their EV to EBITDA multiples adjusted by an estimated premium. While more weight is given to the discounted cash flow method, the EV to EBITDA Method does provide corroborative evidence of the reasonableness of the discounted cash flow method results.

While there was no indication of impairment in 2015 related to goodwill for the Europe or IPG segments, a future potential impairment is possible for any of the company's segments should actual results differ materially from forecasted results used in the valuation analysis. Furthermore, the company's annual valuation of goodwill can differ materially if the market inputs used to determine the discount rate change significantly. For instance, higher interest rates or greater stock price volatility would increase the discount rate and thus increase the chance of impairment. In consideration of this potential, the company reviewed the results if the discount rate used were 100 basis points higher for the 2015 impairment analysis and determined that there still would not be any indicator of potential impairment for the segments with goodwill, which are Europe and IPG.

During 2014, the company recognized intangible write-down charges in the IPG segment of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement of $215,000 all recorded in the IPG segment as the actual and remaining cash flows associated with the intangibles were less than the cash flow originally used to value the intangibles, primarily driven by reduced net sales. The after-tax and pre-tax impairment amounts were the same for each of the above impairments.

In the fourth quarter of 2013, the company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives of $568,000, a trademark with a definite life of $123,000, a customer lists impairment of $442,000 and a developed technology of $223,000 all recorded in the IPG segment and a customer list intangible write-down charge of $167,000 recorded in the North America/HME segment. The after-tax and pre-tax impairment amounts were the same for each of the above impairments except for the indefinite-lived trademark impairments in the IPG segment, which were $496,000 after-tax. The fair values of the trademarks and developed technology were calculated using a relief from royalty payment methodology which requires applying an estimated market royalty rate to forecasted net sales and discounting the resulting cash flows to determine fair value. The fair value of the customer lists were calculated using an excess earnings method, using a discounted cash flow model. Estimated cash flow returns to the customer relationship were reduced by the cash flows required to satisfy the return requirements of each of the assets employed with the residual cash flow then discounted to value the customer relationship. The write-down charges were the result of decisions to exit certain businesses as well as lower than anticipated sales.

The fair values of the company's intangible assets were calculated using inputs that are not observable in the market and included management’s own estimates regarding the assumptions that market participants would use and thus these inputs are deemed Level III inputs in regards to the fair value hierarchy.

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Business Segments

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

The company operates in four primary business segments: North America/Home Medical Equipment (North America/HME), Institutional Products Group (IPG), Europe and Asia/Pacific.

The North America/HME segment sells each of the three primary product lines, which includes: lifestyle, mobility and seating and respiratory therapy products. IPG sells, and rented prior to the disposition of the rentals businesses, long-term care medical equipment, health care furnishings and accessory products. Europe and Asia/Pacific sell product lines similar to North America/HME and IPG.

The company evaluates performance and allocates resources based on profit or loss from operations before income taxes for each reportable segment. The accounting policies of each segment are the same as those described in the summary of significant accounting policies for the company’s consolidated financial statements. Intersegment sales and transfers are based on the costs to manufacture plus a reasonable profit element. Therefore, intercompany profit or loss on intersegment sales and transfers is not considered in evaluating segment performance except for Asia/Pacific due to its significant intercompany sales volume relative to the segment.

The information by segment is as follows (in thousands):

	2015		2014		2013
Revenues from external customers
North America/HME	$	474,196	$	507,867	$	589,240
Institutional Products Group	87,137		102,796		112,290
Europe	536,463		610,555		583,143
Asia/Pacific	44,542		48,945		49,832
Consolidated	$	1,142,338	$	1,270,163	$	1,334,505
Intersegment revenues
North America/HME	$	111,321	$	84,247	$	77,553
Institutional Products Group	997		6,711		5,304
Europe	9,958		8,938		8,272
Asia/Pacific	20,661		26,173		24,941
Consolidated	$	142,937	$	126,069	$	116,070
Depreciation and amortization
North America/HME	$	8,775	$	10,925	$	12,149
Institutional Products Group	1,980		7,656		8,310
Europe	7,183		11,111		12,123
Asia/Pacific	1,463		2,406		3,073
All Other (1)	29		173		275
Discontinued Operations	—		518		859
Consolidated	$	19,430	$	32,789	$	36,789

	2015			2014			2013
Net interest expense (income)
North America/HME	$	2,080		$	348		$	(1,869	)
Institutional Products Group	1,028			2,244			3,656
Europe	(444		)	(209		)	(53		)
Asia/Pacific	82			149			960
Consolidated	$	2,746		$	2,532		$	2,694
Earnings (loss) before income taxes from continuing operations
North America/HME	$	(32,866	)	$	(63,601	)	$	(50,506	)
Institutional Products Group	6,757			(10,961		)	1,418
Europe	38,644			48,088			40,468
Asia/Pacific	(3,521		)	(9,485		)	(13,258		)
All Other (1)	(20,754		)	(27,251		)	(21,581		)
Consolidated	$	(11,740	)	$	(63,210	)	$	(43,459	)
Assets
North America/HME (2)	$	215,500		$	218,877		$	250,239
Institutional Products Group (3)	38,730			42,692			45,933
Europe	557,740			638,896			693,790
Asia/Pacific	24,421			30,231			31,034
All Other (1)	1,752			15,647			37,142
Assets Held for Sale (4)	—			17,388			38,296
Consolidated	$	838,143		$	963,731		$	1,096,434
Long-lived assets
North America/HME (2)	$	49,319		$	44,727		$	60,309
Institutional Products Group (3)	30,278			33,487			38,342
Europe	391,533			459,957			506,329
Asia/Pacific	3,140			4,046			5,238
All Other (1)	1,752			15,527			36,830
Consolidated	$	476,022		$	557,744		$	647,048
Expenditures for assets
North America/HME	$	1,232		$	2,960		$	5,017
Institutional Products Group	212			1,232			3,308
Europe	5,058			6,708			4,809
Asia/Pacific	969			1,417			830
All Other (1)	51			—			50
Discontinued Operations	—			10			144
Consolidated	$	7,522		$	12,327		$	14,158

  ________________________

(1) Consists of un-allocated corporate SG&A costs and intercompany profits, which do not meet the quantitative criteria for determining reportable segments.

(2) The 2013 North America/HME assets and long-lived assets include a decrease of $167,000 due to an intangible asset impairment write-off.

(3) Restated 2014 and 2013 for rentals businesses sold in July 2015 and classified as assets held for sale.

(4) Assets held for sale includes decreases of $13,041,000 and $1,356,000 in 2014 and 2013, respectively, due to intangible asset impairment write-offs.

Net sales by product, are as follows (in thousands):

	2015		2014		2013
North America/HME
Lifestyle Products	$	222,944	$	239,625	$	267,934
Mobility and Seating	117,232		115,776		134,995
Respiratory Therapy	130,349		149,063		178,065
Other(1)	3,671		3,403		8,246
	$	474,196	$	507,867	$	589,240
Institutional Products Group
Continuing Care	$	87,137	$	102,796	$	112,290
Europe
Lifestyle Products	$	275,932	$	322,370	$	303,225
Mobility and Seating	208,730		228,163		216,152
Respiratory Therapy	36,373		40,661		40,885
Other(1)	15,428		19,361		22,881
	$	536,463	$	610,555	$	583,143
Asia/Pacific
Mobility and Seating	$	25,655	$	28,174	$	26,737
Lifestyle Products	10,277		11,772		12,023
Continuing Care	3,115		3,956		2,785
Respiratory Therapy	807		1,286		1,290
Other(1)	4,688		3,757		6,997
	$	44,542	$	48,945	$	49,832
Total Consolidated	$	1,142,338	$	1,270,163	$	1,334,505

  ________________________

(1) Includes various services, including repair services, equipment rentals and external contracting.

No single customer accounted for more than 3.3% of the company’s sales.

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Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Contingencies

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, developing, testing, manufacturing, labeling, promoting, distributing and other practices of health care suppliers and medical device manufacturers are all subject to government scrutiny. Most of the company's facilities are subject to inspection at any time by the FDA or similar medical device regulatory agencies in other jurisdictions. Violations of law or regulations can result in administrative, civil and criminal penalties and sanctions, which could have a material adverse effect on the company's business.

On November 15, 2013, an amended complaint, in a lawsuit originally instituted on May 24, 2013, was filed against Invacare Corporation, former officer and director Gerald B. Blouch and former officer and director A. Malachi Mixon III in the U.S. District Court for the Northern District of Ohio, alleging that the defendants violated federal securities laws by failing to properly disclose the issues that the company has faced with the FDA. The lawsuit sought class certification and unspecified damages and attorneys' fees for purchasers of the company's common shares between February 27, 2009 and December 7, 2011. After mediation, the parties agreed to settle the matter, which agreement was fully and finally approved by the Court on November 19, 2015, and the case was dismissed. The settlement was paid entirely by the company’s insurance carriers.

On September 12, 2014, a second amended complaint, in a lawsuit originally instituted on August 26, 2013, was filed against Invacare Corporation, former officer and director Gerald B. Blouch, former officer and director A. Malachi Mixon III and the Company's senior Vice President, Human Resources, Patricia Stumpp, as well as outside directors Dale C. LaPorte and Michael F. Delaney and former outside director Charles S. Robb, in the U.S. District Court for the Northern District of Ohio, alleging that the defendants breached their fiduciary duties and violated the Employee Retirement Income Security Act (ERISA) in the administration and maintenance of the company stock fund in the company’s Retirement Savings Plan (401(k) Plan). The lawsuit seeks class certification and unspecified damages and attorneys' fees for participants in the company's stock fund of the 401(k) Plan between July 22, 2010 and the present. On August 28, 2015, the Court limited plaintiff’s claim to the time period between July 22, 2010 and December 8, 2011. This lawsuit has been referred to the company's insurance carriers. The company intends to vigorously defend this lawsuit.

Medical Device Regulatory Matters

The FDA in the United States and comparable medical device regulatory authorities in other jurisdictions regulate virtually all aspects of the marketing, invoicing, documenting, development, testing, manufacturing, labeling, promotion, distribution and other practices regarding medical devices. The company and its products are subject to the laws and regulations of the FDA and other regulatory bodies in the various jurisdictions where the company's products are manufactured or sold. The company's failure to comply with the regulatory requirements of the FDA and other applicable medical device regulatory requirements can subject the company to administrative or judicially imposed sanctions or enforcement actions. These sanctions include injunctions, consent decrees, warning letters, civil penalties, criminal penalties, product seizure or detention, product recalls and total or partial suspension of production.

In December 2012, the company reached agreement with the FDA on the terms of the consent decree of injunction with respect to the company's Corporate facility and its Taylor Street wheelchair manufacturing facility in Elyria, Ohio. A complaint and consent decree were filed in the U.S. District Court for the Northern District of Ohio, and on December 21, 2012, the Court approved the consent decree and it became effective. The consent decree limits the company's manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility. The decree also initially limited design activities related to wheelchairs and power beds that take place at the impacted Elyria, Ohio facilities. The company is entitled to continue to produce from the Taylor Street manufacturing facility certain medically necessary wheelchairs provided that documentation and record-keeping requirements are followed, as well as ongoing replacement, service and repair of products already in use, under terms delineated in the consent decree. Under the terms of the consent decree, in order to resume full operations at the impacted facilities, the company must successfully complete a third-party expert certification audit at the impacted Elyria facilities, which is comprised of three distinct reports that must be submitted to, and accepted by, the FDA. During 2013, the company completed the first two of the third-party expert certification audits, and the FDA found the results of both to be acceptable. In these reports, the third-party expert certified that the company's equipment and process validation procedures and its design control systems are compliant with the FDA's QSR. As a result of the FDA's acceptance of the first certification report on May 13, 2013, the Taylor Street facility was able to resume supplying parts and components for the further manufacturing of medical devices at other company facilities. The company's receipt of the FDA's acceptance of the second certification report on July 15, 2013, resulted in the company being able to resume design activities at the impacted facilities related to power wheelchairs and power beds. In February, 2016, the independent expert auditor issued its certification report for the third phase of the consent decree indicating substantial compliance to the FDA's QSR, and the report has been submitted to the FDA.

Per the terms of the consent decree, the company must submit its own report to the FDA regarding its compliance status together with its written responses to any observations in the independent expert's report. Both the independent expert auditor's third certification report as well as the company's own report must be accepted by the FDA before the agency reinspects the impacted Elyria facilities. If the FDA is satisfied with the company's compliance, the FDA will provide written notification that the company is permitted to resume full operations at the impacted facilities. The company cannot predict the acceptance of these reports by the FDA, nor any remaining work that may be needed to meet the FDA's requirements. The FDA has the authority to inspect any FDA registered facility at any time.

After resumption of full operations, the company must undergo five years of audits by a third-party expert auditor to determine whether the facilities are in continuous compliance with FDA's QSR and the consent decree. The auditor will inspect the Corporate and Taylor Street facilities’ activities every six months during the first year following the resumption of full operations and then every 12 months for the next four years thereafter.

As described above, because the limitations on production are not expected to be permanent in nature, and partial production is allowed, the company does not anticipate any major repair, replacement or scrapping of its fixed assets at the Taylor Street manufacturing facility. Based on the company's expectations at the time of filing of this Annual Report on Form 10-K with respect to the utilization of such raw material and with respect to expected future cash flows from production at the Taylor Street manufacturing facility, the company concluded that there is no impairment in the value of the fixed assets related to the Taylor Street manufacturing facility at December 31, 2015.

The majority of the production from the Taylor Street facility is "made to order" custom wheelchairs for customers and, as a result, there was not a significant amount of finished goods inventory on hand at December 31, 2015, and the inventory is expected to be fully utilized. Accordingly, the company concluded that there was not an impairment of the work in process and finished goods at the Taylor Street facility at December 31, 2015. Further, based on its analysis of the raw material inventory at the Taylor Street facility and the company's expectations at the time of filing of this Annual Report on Form 10-K with respect to the time frame for FDA's acceptance of the third-party expert certification audit and FDA inspection, the company concluded that the value of the inventory was not excessive nor impaired at December 31, 2015. However, if the company's expectations regarding the impacts of the limitations in the consent decree or the time frame for acceptance of the third-party expert certification audit and FDA inspection were to change, the company may, in future periods, conclude that an impairment exists with respect to its fixed assets or inventory at the Taylor Street facility.

Although the North America/HME segment is the segment primarily impacted by the limitations in the FDA consent decree, the Asia/Pacific segment also is negatively affected as a result of the consent decree due to the lower sales volume of microprocessor controllers. During 2012, before the effective date of the consent decree, the company started to experience decreases in net sales in the North America/HME and Asia/Pacific segments. The company believes that those decreases, which continued beyond 2012, were driven in large part by the consent decree which led to delays in new product introductions and to uncertainty regarding the timing of exiting the consent decree, which limited the company's ability to renegotiate and bid on certain customer contracts and otherwise led to a decline in customer orders. Separately, net sales in the North America/HME segment were likely impacted by uncertainty on the part of the company's customers as they coped with prepayment reviews and post-payment audits by the Centers for Medicare and Medicaid Services ("CMS") and contemplated their participation in the National Competitive Bidding ("NCB") process. The negative effect of the consent decree on customer orders and net sales in these segments has been considerable, and the company expects to continue to experience low levels of net sales in the North America/HME and Asia/Pacific segments at least until it has successfully completed the previously-described FDA re-inspection and has received written notification from the FDA that the company may resume full operations at the Corporate and Taylor Street facilities. Even after the company is permitted to resume full operations at the affected facilities, it is uncertain as to whether, or how quickly, the company will be able to rebuild net sales to more typical historical levels, irrespective of market conditions. Accordingly, when compared to the company's 2010 results, the limitations in the consent decree had, and likely will continue to have, a material adverse effect on the company's business, financial condition and results of operations.

For additional information regarding the consent decree, please see the following sections of this Annual Report on Form 10-K: Item 1. Business - Government Regulation and Item 1A. Risk Factors; Item 3. Legal Proceedings; and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook and - Liquidity and Capital Resources.

The company's warranty reserves are subject to adjustment in future periods as new developments change the company's estimate of the total cost of these matters. In 2015, the company's warranty expense includes reversals of $2,325,000 comprised of $2,000,000 related the company's stationary oxygen concentrator recall, $250,000 related to the recall of a sieve bed component and $75,000 related to the company's joystick recall, all of which impacted the North America/HME segment.

The company' recorded incremental warranty expense in 2014 totaling $11,493,000 for three specific product recalls. First, an expense of $6,559,000 for a recall related to a component in a stationary oxygen concentrator that was manufactured in the company’s facility in Suzhou, China, and sold globally. This expense was recorded in the European segment ($3,395,000) and North America/HME segment ($3,164,000). Second, an expense of $2,057,000 for the recall of a sieve bed component used within stationary oxygen concentrators manufactured in the company's Sanford, Florida facility during August 2014, which was recorded in the North America/HME segment. Third, an incremental expense of $2,877,000 related to the company's joystick recall as a result of higher than previously anticipated response rates from large customers in the U.S. and Canada and a product mix toward higher cost joysticks, which was recorded in the North America/HME segment ($1,612,000) and the Asia/Pacific segment ($1,265,000).

In 2013, the company recorded an incremental warranty reserve of $7,264,000, which primarily impacted the Asia/Pacific ($4,639,000) and the North America/HME ($2,625,000) segments. The warranty accrual related to the power wheelchair joystick recall which was increased during the fourth quarter of 2013 principally as a result of the commencement of the recall in the quarter and the realization that the number of replacement units required was trending higher than the company's original estimates, which were based on historical experience related to previous recalls. See Current Liabilities in the Notes to the Consolidated Financial Statements for the total provision amounts and a reconciliation of the changes in the warranty accrual.

In December 2010, the company received a warning letter from the FDA related to quality system processes and procedures at the company's Sanford, Florida facility. In January 2014, the FDA conducted inspections at the company’s manufacturing facility in Suzhou, China and at the company’s electronic components subsidiary in Christchurch, New Zealand, covering quality systems and current Good Manufacturing Practice regulations. In August 2014, the FDA inspected Alber GmbH in Albstadt, Germany. The FDA issued its inspectional observations on Forms 483 to the company after these inspections, and the company submitted its responses to the agency in a timely manner. In October 2014, the FDA conducted an inspection at the Sanford facility and, at the conclusion, issued its Form 483 observations. In December 2015, the FDA issued Form 483 observations following a 2015 inspection of approximately 5 months at the Corporate and Taylor Street facilities in Elyria, Ohio which included a review of the company’s compliance with terms of the consent decree and the matters covered by the first and second expert certification reports previously accepted in 2013. The company has timely filed its responses to these Form 483 with the FDA and continues to work on addressing the FDA's observations. The results of regulatory claims, proceedings, investigations, or litigation are difficult to predict. An unfavorable resolution or outcome of the FDA warning letter or other FDA enforcement related to the Sanford or other company facilities could materially and adversely affect the company's business, financial condition, and results of operations.

Any of the above contingencies could have an adverse impact on the company's financial condition or results of operations.

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Subsequent Event

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On February 16, 2016, in connection with the commencement of the company's offering of 5.00% convertible senior notes due 2021 described below, the company entered into a First Amendment to Amended and Restated Revolving Credit and Security Agreement (the “Credit Agreement Amendment”), which amended the Amended and Restated Revolving Credit and Security Agreement (the “Credit Agreement”), dated as of September 30, 2015, by and among the company, certain of the company’s direct and indirect domestic, Canadian and European subsidiaries, the lenders party thereto, PNC Bank, National Association, as the administrative agent, and J.P. Morgan Europe Limited, as the European agent. The Credit Agreement Amendment provides for, among other things:

• the amendment of the negative covenant regarding indebtedness to permit the issuance of new convertible notes ;

• the amendment of various negative covenants to permit convertible bond hedge and warrant transactions to be entered into by the company in connection with the issuance of new convertible notes;

• the amendment of the mandatory prepayment provision to eliminate the prepayment requirement that would otherwise be required upon the receipt of proceeds from the issuance of the convertible notes and the sale of the warrants and the negative covenant regarding dividends to permit the issuance of certain equity interests, payment of interest on the notes and certain payments to be made upon conversion of the convertible notes, as well as upon the exercise, settlement or termination of the convertible bond hedge and warrant transactions, so long as the company is not, and would not after giving pro-forma effect to any such transaction be, in default under the Credit Agreement and has had undrawn availability equal to at least 20% of the maximum revolving advance amount under its North American-based credit facility (which maximum amount is currently $100,000,000) for the 30 consecutive days ending delivered by the company under the Credit Agreement;

• the amendment of the negative covenant to permit the repurchase by the company of up to $5,000,000 of its common shares, including any such shares that may be repurchased in connection with the issuance of the convertible notes so long as the company is not, and would not after giving pro-forma effect to any such repurchase be, in default under the Credit Agreement and has had undrawn availability equal to at least 20% of the maximum revolving advance amount under its North American-based credit facility (which maximum amount is currently $100,000,000) for the 30 consecutive days ending as of the date of the most recent North American borrowing base certificate delivered by the company under the Credit Agreement;

• the amendment of the negative covenant regarding capital expenditures to increase the aggregate amount of permitted expenditures from $20,000,000 to $35,000,000;

• the amendment of the negative covenant regarding investments to permit certain qualifying acquisitions for total aggregate consideration of up to $30,000,000;

• the amendment of the negative covenant regarding sales of assets to increase the aggregate amount of permitted dispositions from $20,000,000 to $25,000,000 (calculated as of the date of the Credit Agreement Amendment), so long as the company is not, and would not after giving pro-forma effect to any such disposition be, in default under the Credit Agreement and has had undrawn availability equal to at least 20% of the maximum revolving advance amount under its North American-based credit facility (which maximum amount is currently $100,000,000) for the 30 consecutive days ending as of the date of the most recent North American borrowing base certificate delivered by the company under the Credit Agreement; and

• the amendment of the availability block (which affects the company’s borrowing base) by reducing the block from $10,000,000 to $5,000,000, the effect of which is to increase borrowing capacity.

Also on February 16, 2016, the company executed a release, acknowledged by Wells Fargo Bank, N.A., as trustee, effecting the release as guarantors of all of the company’s subsidiaries that were guarantors of the company’s 4.125% Convertible Senior Subordinated Debentures due 2027, issued pursuant to the terms of the indenture, dated as of February 12, 2007, between the company and the trustee. See “Supplemental Guarantor Information”.

On February 23, 2016, the company issued $130,000,000 aggregate principal amount of 5.00% convertible senior notes due 2021 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. In connection with the offering, the company granted the initial purchasers an option to purchase (solely to cover over-allotments, if any) up to an additional $20,000,000 aggregate principal amount of notes, for which notice of exercise shall be delivered to the company within a 13-day period beginning on, and including, the date the Company first issues the notes.

The notes bear interest at a rate of 5.00% per year payable semi-annually in arrears on February 15 and August 15 of each year, beginning August 15, 2016. The notes will mature on February 15, 2021, unless repurchased or converted in accordance with their terms prior to such date. Prior to August 15, 2020, the notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Unless and until the company obtains shareholder approval under applicable New York Stock Exchange rules, the notes will be convertible, subject to certain conditions, into cash. If the company obtains such shareholder approval, the notes may be settled in cash, the company’s common shares or a combination of cash and the company’s common shares, at the company’s election. Holders of the notes will have the right to require the company to repurchase all or some of their notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The conversion rate will initially be 60.0492 common shares per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $16.65 per common share).

In connection with the offering of the notes, the company entered into privately negotiated convertible note hedge transactions with two financial institutions (the “option counterparties”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the notes, and are expected generally to reduce the potential equity dilution, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the notes. The company entered into separate, privately negotiated warrant transactions with the option counterparties at a higher strike price relating to the same number of the company’s common shares, subject to customary anti-dilution adjustments, pursuant to which the company will sell warrants to the option counterparties. The warrants could have a dilutive effect on the company’s outstanding common shares and the company’s earnings per share to the extent that the price of the company’s common shares exceeds the strike price of those warrants. The strike price of the warrants will initially be $22.4175 per share and is subject to certain adjustments under the terms of the warrant transactions.

The net proceeds from the offering were approximately $124,800,000, after deducting fees and estimated offering expenses payable by the company and excluding the option by the purchasers to purchase an additional $20,000,000 aggregate principal amount of notes. Approximately $5,000,000 of the net proceeds from the offering were used to repurchase the company’s common shares from purchases of notes in the offering in privately negotiated transactions. A portion of the net proceeds from the offering were used to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to the company from the sale of the warrant transactions), which net cost was $13,520,000. The company intends to use the remaining net proceeds from the offering for working capital and general corporate purposes, which may include funding portions of the company’s ongoing turnaround and addressing potential risks and contingencies described in the company’s Risk Factors as included in this Form 10-K.

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Supplemental Guarantor Information

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Supplemental Guarantor Information

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. On February 16, 2016, all of the company’s subsidiaries were released as guarantors of the Debentures, pursuant to the terms of the Indenture, dated as of February 12, 2007, between the company and the trustee named therein. See "Subsequent Events".

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, 2015
Net sales	$	211,178		$	402,108		$	649,966		$	(120,914	)	$	1,142,338
Cost of products sold	187,272			305,592			457,634			(120,984		)	829,514
Gross Profit	23,906			96,516			192,332			70			312,824
Selling, general and administrative expenses	111,814			63,068			144,965			—			319,847
Charge related to restructuring activities	1,339			—			632			—			1,971
Income (loss) from equity investee	69,636			29,353			703			(99,692		)	—
Interest expense (income)—net	3,011			428			(693		)	—			2,746
Earnings (Loss) from Continuing Operations Before Income Taxes	(22,622		)	62,373			48,131			(99,622		)	(11,740		)
Income taxes	3,568			—			11,142			—			14,710
Net Earnings (Loss) from Continuing Operations	(26,190		)	62,373			36,989			(99,622		)	(26,450		)
Net Earnings from Discontinued Operations	—			260			—			—			260
Net Earnings (Loss)	(26,190		)	62,633			36,989			(99,622		)	(26,190		)
Other Comprehensive Income (Loss), net of Tax	(81,006		)	(15,037		)	(67,842		)	82,879			(81,006		)
Comprehensive Income (Loss)	$	(107,196	)	$	47,596		$	(30,853	)	$	(16,743	)	$	(107,196	)

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	)

CONSOLIDATING CONDENSED STATEMENTS OF OPERATIONS
	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
Year ended December 31, 2013
Net sales	$	241,871		$	460,960		$	720,978	$	(89,304	)	$	1,334,505
Cost of products sold	211,896			338,650			506,308		(89,775		)	967,079
Gross Profit	29,975			122,310			214,670		471			367,426
Selling, general and administrative expenses	123,377			93,731			177,530		2,694			397,332
Charge related to restructuring activities	6,356			79			2,901		—			9,336
Asset write-downs to intangibles and goodwill	—			1,250			273		—			1,523
Income (loss) from equity investee	133,350			29,644			286		(163,280		)	—
Interest (income) expense—net	(1,661		)	3,353			1,002		—			2,694
Earnings (Loss) from Continuing Operations Before Income Taxes	35,253			53,541			33,250		(165,503		)	(43,459		)
Income taxes (benefit)	2,202			(1,785		)	10,458		—			10,875
Net Earnings (Loss) from Continuing Operations	33,051			55,326			22,792		(165,503		)	(54,334		)
Net Earnings from Discontinued Operations	—			87,385			—		—			87,385
Net Earnings (Loss)	33,051			142,711			22,792		(165,503		)	33,051
Other Comprehensive Income (Loss), net of Tax	12,413			(2,309		)	17,797		(15,488		)	12,413
Comprehensive Income (Loss)	$	45,464		$	140,402		$	40,589	$	(180,991	)	$	45,464

CONSOLIDATING CONDENSED BALANCE SHEETS

	The company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	14,047	$	314	$	45,694	$	—		$	60,055
Trade receivables, net	43,534		20,020		70,101		—			133,655
Installment receivables, net	—		361		784		—			1,145
Inventories, net	6,300		25,418		103,173		(2,084		)	132,807
Intercompany advances, net	8,392		109		49,022		(57,523		)	—
Other current assets	6,380		186		32,384		(4,491		)	34,459
Total Current Assets	78,653		46,408		301,158		(64,098		)	362,121
Investment in Subsidiaries	1,430,070		467,352		—		(1,897,422		)	—
Intercompany Advances, net	1,115,121		1,881,567		185,389		(3,182,077		)	—
Other Assets	3,095		727		837		—			4,659
Intangibles	123		388		30,489		—			31,000
Property and Equipment, net	32,382		10,170		36,131		—			78,683
Goodwill	—		12,142		349,538		—			361,680
Total Assets	$	2,659,444	$	2,418,754	$	903,542	$	(5,143,597	)	$	838,143
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	38,395	$	8,699	$	58,514	$	—		$	105,608
Accrued expenses	31,061		20,940		74,910		(4,491		)	122,420
Current taxes, payable and deferred	1,336		—		16,252		—			17,588
Intercompany advances, net	43,972		2,412		11,140		(57,524		)	—
Short-term debt and current maturities of long-term obligations	880		275		873		—			2,028
Total Current Liabilities	115,644		32,326		161,689		(62,015		)	247,644
Long-Term Debt	35,326		7,257		2,509		—			45,092
Other Long-Term Obligations	31,821		1,752		49,016		—			82,589
Intercompany Advances, net	2,013,835		1,116,834		51,407		(3,182,076		)	—
Total Shareholders’ Equity	462,818		1,260,585		638,921		(1,899,506		)	462,818
Total Liabilities and Shareholders’ Equity	$	2,659,444	$	2,418,754	$	903,542	$	(5,143,597	)	$	838,143

CONSOLIDATING CONDENSED BALANCE SHEETS

	The company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
December 31, 2014
Assets
Current Assets
Cash and cash equivalents	$	7,340	$	355	$	31,236	$	—		$	38,931
Trade receivables, net	47,030		21,979		85,198		—			154,207
Installment receivables, net	—		292		762		—			1,054
Inventories, net	25,021		25,784		107,139		(2,383		)	155,561
Deferred income taxes	—		—		2,048		—			2,048
Intercompany advances, net	10,007		976		84,816		(95,799		)	—
Other current assets	8,082		228		33,123		(4,635		)	36,798
Assets held for sale - current	3,982		13,406		—		—			17,388
Total Current Assets	101,462		63,020		344,322		(102,817		)	405,987
Investment in Subsidiaries	1,409,482		491,541		—		(1,901,023		)	—
Intercompany Advances, net	1,049,235		1,685,366		184,652		(2,919,253		)	—
Other Assets	16,955		657		1,441		—			19,053
Intangibles	286		393		37,334		—			38,013
Property and Equipment, net	29,632		7,209		42,818		—			79,659
Goodwill	—		11,968		409,051		—			421,019
Total Assets	$	2,607,052	$	2,260,154	$	1,019,618	$	(4,923,093	)	$	963,731
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	48,815	$	6,363	$	64,749	$	—		$	119,927
Accrued expenses	51,613		20,533		88,188		(4,635		)	155,699
Current taxes, payable and deferred	1,632		—		11,002		—			12,634
Intercompany advances, net	81,141		1,738		12,921		(95,800		)	—
Short-term debt and current maturities of long-term obligations	—		—		959		—			959
Liabilities held for sale - current	632		381		—		—			1,013
Total Current Liabilities	183,833		29,015		177,819		(100,435		)	290,232
Long-Term Debt	15,351		—		4,021		—			19,372
Other Long-Term Obligations	28,551		—		60,254		—			88,805
Intercompany Advances, net	1,813,995		1,051,170		54,088		(2,919,253		)	—
Total Shareholders’ Equity	565,322		1,179,969		723,436		(1,903,405		)	565,322
Total Liabilities and Shareholders’ Equity	$	2,607,052	$	2,260,154	$	1,019,618	$	(4,923,093	)	$	963,731

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2015
Net Cash Provided (Used) by Operating Activities	$	(26,382	)	$	2,125		$	18,774		$	105		$	(5,378	)
Investing Activities
Purchases of property and equipment	(464		)	(704		)	(6,354		)	—			(7,522		)
Proceeds from sale of property and equipment	23,040			52			25			—			23,117
Proceeds from sale of businesses	—			13,700			—			—			13,700
Decrease in other long-term assets	14,488			—			515			—			15,003
Other	—			5			178			(105		)	78
Net Cash Provided (Used) for Investing Activities	37,064			13,053			(5,636		)	(105		)	44,376
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	214,755			—			4,848			—			219,603
Payments on revolving lines of credit and long-term borrowings	(217,589		)	(15,219		)	—			—			(232,808		)
Proceeds from exercise of equity awards	2,402			—			—			—			2,402
Payment of financing costs	(1,954		)	—			—			—			(1,954		)
Payment of dividends	(1,589		)	—			—			—			(1,589		)
Net Cash Used (Provided) by Financing Activities	(3,975		)	(15,219		)	4,848			—			(14,346		)
Effect of exchange rate changes on cash	—			—			(3,528		)	—			(3,528		)
Increase (decrease) in cash and cash equivalents	6,707			(41		)	14,458			—			21,124
Cash and cash equivalents at beginning of year	7,340			355			31,236			—			38,931
Cash and cash equivalents at end of year	$	14,047		$	314		$	45,694		$	—		$	60,055

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2014
Net Cash (Used) Provided by Operating Activities	$	(34,135	)	$	(511	)	$	14,105		$	29,433		$	8,892
Investing Activities
Purchases of property and equipment	(2,256		)	(1,811		)	(8,260		)	—			(12,327		)
Proceeds from sale of property and equipment	—			—			2,521			—			2,521
Proceeds from sale of businesses	—			21,870			—			—			21,870
Decrease in other long-term assets	20,926			—			23			—			20,949
Other	44,420			(14,393		)	(25		)	(29,433		)	569
Net Cash Provided (Used) for Investing Activities	63,090			5,666			(5,741		)	(29,433		)	33,582
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	255,658			—			—			—			255,658
Payments on revolving lines of credit and long-term borrowings	(277,570		)	(5,113		)	(4,029		)	—			(286,712		)
Proceeds from exercise of equity awards	480			—			—			—			480
Payment of dividends	(1,584		)	—			—			—			(1,584		)
Net Used by Financing Activities	(23,016		)	(5,113		)	(4,029		)	—			(32,158		)
Effect of exchange rate changes on cash	—			—			(1,170		)	—			(1,170		)
Increase in cash and cash equivalents	5,939			42			3,165			—			9,146
Cash and cash equivalents at beginning of year	1,401			313			28,071			—			29,785
Cash and cash equivalents at end of year	$	7,340		$	355		$	31,236		$	—		$	38,931

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2013
Net Cash Provided (Used) by Operating Activities	$	11,566		$	(68,792	)	$	1,891		$	65,389		$	10,054
Investing Activities
Purchases of property and equipment	(3,601		)	(4,020		)	(6,537		)	—			(14,158		)
Proceeds from sale of property and equipment	4			13			868			—			885
Proceeds from sale of businesses	—			187,552			—			—			187,552
Decrease in other long-term assets	833			—			168			—			1,001
Other	181,195			(113,067		)	20			(68,083		)	65
Net Cash Provided (Used) for Investing Activities	178,431			70,478			(5,481		)	(68,083		)	175,345
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	323,187			—			29,268			—			352,455
Payments on revolving lines of credit and long-term borrowings	(516,488		)	(2,391		)	(26,995		)	—			(545,874		)
Proceeds from exercise of equity awards	512			—			—			—			512
Payment of dividends	(1,581		)	—			(2,694		)	2,694			(1,581		)
Net Cash (Used) Provided by Financing Activities	(194,370		)	(2,391		)	(421		)	2,694			(194,488		)
Effect of exchange rate changes on cash	—			—			83			—			83
Decrease in cash and cash equivalents	(4,373		)	(705		)	(3,928		)	—			(9,006		)
Cash and cash equivalents at beginning of year	5,774			1,018			31,999			—			38,791
Cash and cash equivalents at end of year	$	1,401		$	313		$	28,071		$	—		$	29,785

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Interim Financial Information

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Information

Interim Financial Information (unaudited)

	QUARTER ENDED (In thousands, except per share data)
	March 31,			June 30,			September 30,			December 31,
2015
Net sales	$	289,024		$	286,273		$	283,776		$	283,265
Gross profit	77,095			77,287			77,639			80,803
Earnings (loss) from continuing operations before income taxes	(5,039		)	(6,492		)	(790		)	581
Net loss from continuing operations	(7,514		)	(8,217		)	(7,790		)	(2,929		)
Net earnings from discontinued operations	260			—			—			—
Net loss	(7,254		)	(8,217		)	(7,790		)	(2,929		)
Net loss per share from continuing operations—basic	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Net earnings per share from discontinued operations—basic	0.01			—			—			—
Net loss per share—basic	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Loss per share from continuing operations—assuming dilution *	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Net earnings per share from discontinued operations—assuming dilution	0.01			—			—			—
Net loss per share—assuming dilution *	(0.23		)	(0.26		)	(0.24		)	(0.09		)
	March 31,			June 30,			September 30,			December 31,
2014
Net sales	$	304,501		$	326,943		$	320,520		$	318,199
Gross profit	82,793			91,578			84,647			88,370
Loss from continuing operations before income taxes	(16,870		)	(11,580		)	(26,375		)	(8,385		)
Net loss from continuing operations	(18,895		)	(14,455		)	(28,725		)	(6,685		)
Net earnings (loss) from discontinued operations	919			842			13,629			(2,700		)
Net loss	(17,976		)	(13,613		)	(15,096		)	(9,385		)
Net loss per share from continuing operations—basic	(0.59		)	(0.45		)	(0.90		)	(0.21		)
Net earnings (loss) per share from discontinued operations—basic	0.03			0.03			0.43			(0.08		)
Net loss per share—basic	(0.56		)	(0.43		)	(0.47		)	(0.29		)
Net loss per share from continuing operations—assuming dilution *	(0.59		)	(0.45		)	(0.90		)	(0.21		)
Net earnings (loss) per share from discontinued operations—assuming dilution	0.03			0.03			0.42			(0.08		)
Net loss per share—assuming dilution *	(0.56		)	(0.43		)	(0.47		)	(0.29		)

* Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

The description of significant items affecting continuing operations for each quarter presented are detailed below. The company has classified Altimate as a discontinued operation for all periods presented.

Loss and loss per share for the quarter ended March 31, 2015 reflects restructuring charges of $240,000 ($240,000 after tax or $0.01 per share assuming dilution) and increased amortization expense related to the write-off of debt fees related to a debt amendment of $668,000 ($668,000 after tax or $0.02 per share assuming dilution).

Loss and loss per share for the quarter ended June 30, 2015 reflects restructuring charges of $689,000 ($635,000 after tax or $0.02 per share assuming dilution).

Loss and loss per share for the quarter ended September 30, 2015 reflects a tax expense impact as a result of goodwill deducted for tax purposes from the sale of the rentals business of $3,400,000 ($0.11 per share assuming dilution).

Loss and loss per share for the quarter ended December 31, 2015 reflects recall warranty expense reversal of $2,325,000 ($2,325,000 after tax or $0.07 per share assuming dilution) and restructuring charges of $1,031,000 pre-tax ($957,000 after tax or $0.03 per share assuming dilution).

Loss and loss per share for the quarter ended March 31, 2014 reflects restructuring charges of $2,240,000 ($1,811,000 after tax or $0.06 per share assuming dilution), incremental recall warranty expense of $2,237,000 ($2,100,000 after tax or $0.07 per share assuming dilution) and increased amortization expense related to the write-off of debt fees related to a debt amendment of $1,070,000 ($1,070,000 after tax or $0.03 per share assuming dilution).

Loss and loss per share for the quarter ended June 30, 2014 reflects restructuring charges of $2,090,000 ($1,711,000 after tax or $0.05 per share assuming dilution).

Loss and loss per share for the quarter ended September 30, 2014 reflects restructuring charge of $4,077,000 ($3,842,000 after tax or $0.12 per share assuming dilution), incremental recall warranty expense of $9,256,000 ($8,701,000 after tax or $0.27 per share assuming dilution), intangible asset write-downs of $8,253,000 ($8,253,000 after tax or $0.26 per share assuming dilution)and a positive impact of an intraperiod tax allocation associated with discontinued operations of $1,550,000 ($0.05 per share assuming dilution).

Loss and loss per share for the quarter ended December 31, 2014 reflects restructuring charges of $2,705,000 ($2,732,000 after tax or $0.09 per share assuming dilution), asset write-downs for intangibles of $4,788,000 ($4,788,000 after tax or $0.15 per share assuming dilution) and the positive impact of an intraperiod tax allocation associated with discontinued operations $2,700,000 ($0.08 per share assuming dilution).

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2015

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

	COL A.		COL B.		COL C.				COL D.
	Balance At Beginning of Period		Charged To Cost And Expenses		Additions (Deductions) Describe				Balance At End of Period
			(In thousands)
Year Ended December 31, 2015
Deducted from asset accounts—
Allowance for doubtful accounts	$	17,822	$	754	$	(5,297	)	(A)	$	13,279
Inventory obsolescence reserve	17,617		5,054		(5,983		)	(B)	16,688
Tax valuation allowances	133,912		19,717		(1,657		)	(D)	151,972
Accrued warranty cost	30,738		9,899		(17,817		)	(B)	22,820
Accrued product liability	23,194		5,250		(10,735		)	(C)	17,709
Year Ended December 31, 2014
Deducted from asset accounts—
Allowance for doubtful accounts	$	23,144	$	1,765	$	(7,087	)	(A)	$	17,822
Inventory obsolescence reserve	15,135		5,993		(3,511		)	(B)	17,617
Tax valuation allowances	117,790		33,195		(17,073		)	(D)	133,912
Accrued warranty cost	27,393		26,097		(22,752		)	(B)	30,738
Accrued product liability	20,368		5,910		(3,084		)	(C)	23,194
Year Ended December 31, 2013
Deducted from asset accounts—
Allowance for doubtful accounts	$	25,232	$	3,684	$	(5,772	)	(A)	$	23,144
Inventory obsolescence reserve	13,085		5,310		(3,260		)	(B)	15,135
Tax valuation allowances	97,406		1,078		19,306			(D)	117,790
Accrued warranty cost	21,451		19,394		(13,452		)	(B)	27,393
Accrued product liability	20,334		7,039		(7,005		)	(C)	20,368

  ________________________

Note (A)—Uncollectible accounts written off, net of recoveries.

Note (B)—Amounts written off or payments incurred.

Note (C)—Loss and loss adjustment.

Note (D)—Other activity not affecting federal or foreign tax expense.

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Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Nature of Operations

Nature of Operations: Invacare Corporation is a leading manufacturer and distributor of medical equipment used in the home based upon the company’s distribution channels, breadth of product line and net sales. The company designs, manufactures and distributes an extensive line of health care products for the non-acute care environment, including the home health care, retail and continuing care markets.

Principles of Consolidation

Principles of Consolidation: The consolidated financial statements include the accounts of the company and its wholly owned subsidiaries and include all adjustments, which were of a normal recurring nature, necessary to present fairly the financial position of the company as of December 31, 2015 and the results of its operations and changes in its cash flow for the years ended December 31,2015, 2014 and 2013, respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using a November 30 fiscal year end in order to meet filing deadlines. No material subsequent events have occurred related to the European segment, which would require disclosure or adjustment to the company’s financial statements. All significant intercompany transactions are eliminated.

Use of Estimates

Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from these estimates.

Accounts Receivables

Accounts Receivable: The company records accounts receivable when product ships or services are provided to its unaffiliated customers, risk of loss is passed and title is transferred. The estimated allowance for uncollectible amounts is based primarily on management's evaluation of the financial condition of specific customers. The company records accounts receivable reserves for amounts that may become uncollectible in the future. The company writes off accounts receivable when it becomes apparent, based upon customer circumstances, that such amounts will not be collected and legal remedies are exhausted.

Inventories

Inventories: Inventories are stated at the lower of cost or market with cost determined by the first-in, first-out method. Market values are based on the lower of replacement cost or estimated net realizable value. Finished goods and work in process inventories include material, labor and manufacturing overhead costs. Inventories have been reduced by an allowance for excess and obsolete inventories. The estimated allowance is based on management’s review of inventories on hand compared to estimated future usage and sales.

Property and Equipment

Property and Equipment: Property and equipment are stated on the basis of cost. The company principally uses the straight-line method of depreciation for financial reporting purposes based on annual rates sufficient to amortize the cost of the assets over their estimated useful lives. Machinery and equipment as well as furniture and fixtures are generally depreciated using lives of 3 to 10 years, while buildings and improvements are depreciated using lives of 5 to 40 years. Accelerated methods of depreciation are used for federal income tax purposes. Expenditures for maintenance and repairs are charged to expense as incurred. Amortization of assets under capital leases is included in depreciation expense.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An asset would be considered impaired when the future net undiscounted cash flows generated by the asset are less than its carrying value. An impairment loss would be recognized based on the amount by which the carrying value of the asset exceeds its fair value.

Goodwill and Other Intangibles

Goodwill and Other Intangibles: In accordance with Intangibles—Goodwill and Other, ASC 350, goodwill and indefinite lived intangibles are subject to annual impairment testing. For purposes of the goodwill impairment test, the fair value of each reporting unit is estimated by forecasting cash flows and discounting those cash flows using appropriate discount rates. The fair values are then compared to the carrying value of the net assets of each reporting unit. Intangibles assets are also reviewed for impairment by estimating forecasted cash flows and discounting those cash flows as needed to calculate impairment amounts.

During 2014, the company recognized intangible write-down charges of $13,041,000 comprised of a customer list impairment of $12,826,000 and a non-compete agreement impairment of $215,000 each recorded in the IPG segment.

During 2013, the company recognized intangible write-down charges of $1,523,000 comprised of: trademarks with indefinite lives impairment of $568,000, a trademark with a definite life impairment of $123,000, customer list impairment of $442,000 and a developed technology impairment of $223,000 each recorded in the IPG segment and a customer list impairment of $167,000 recorded in the North America/HME segment.

Accrued Warranty Cost

Accrued Warranty Cost: Generally, the company’s products are covered by warranties against defects in material and workmanship for various periods depending on the product from the date of sale to the customer. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company’s warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product recall, which could warrant additional warranty reserve provision. See Current Liabilities in the Notes to the Consolidated Financial Statements for a reconciliation of the changes in the warranty accrual.

Product Liability Cost

Product Liability Cost: The company is self-insured in North America for product liability exposures through its captive insurance company, Invatection Insurance Company, which currently has a policy year that runs from September 1 to August 31 and insures annual policy losses up to $10,000,000 per occurrence and $13,000,000 in the aggregate. The company also has additional layers of external insurance coverage, related to all lines of insurance coverage, insuring up to $75,000,000 in aggregate losses per policy year arising from individual claims anywhere in the world that exceed the captive insurance company policy limits or the limits of the company’s per country foreign liability limits, as applicable. There can be no assurance that Invacare’s current insurance levels will continue to be adequate or available at affordable rates.

Product liability reserves are recorded for individual claims based upon historical experience, industry expertise and other indicators. Additional reserves, in excess of the specific individual case reserves, are provided for 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 by the company in estimating 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.

Revenue Recognition

Revenue Recognition: Invacare’s revenues are recognized when products are shipped or service provided to unaffiliated customers, risk of loss is passed and title is transferred. Revenue Recognition, ASC 605, provides guidance on the application of generally accepted accounting principles to selected revenue recognition issues. Shipping and handling costs are included in cost of goods sold.

Sales are made only to customers with whom the company believes collection is reasonably assured based upon a credit analysis, which may include obtaining a credit application, a signed security agreement, personal guarantee and/or a cross corporate guarantee depending on the credit history of the customer. Credit lines are established for new customers after an evaluation of their credit report and/or other relevant financial information. Existing credit lines are regularly reviewed and adjusted with consideration given to any outstanding past due amounts.

The company offers discounts and rebates, which are accounted for as reductions to revenue in the period in which the sale is recognized. Discounts offered include: cash discounts for prompt payment, base and trade discounts based on contract level for specific classes of customers. Volume discounts and rebates are given based on large purchases and the achievement of certain sales volumes. Product returns are accounted for as a reduction to reported sales with estimates recorded for anticipated returns at the time of sale. The company does not sell any goods on consignment.

Distributed products sold by the company are accounted for in accordance with the revenue recognition guidance in ASC 605-45-05. The company records distributed product sales gross as a principal since the company takes title to the products and has the risks of loss for collections, delivery and returns.

Product sales that give rise to installment receivables are recorded at the time of sale when the risks and rewards of ownership are transferred. As such, interest income is recognized based on the terms of the installment agreements. Installment accounts are monitored and if a customer defaults on payments, interest income is no longer recognized. All installment accounts are accounted for using the same methodology, regardless of duration of the installment agreements. The company has entered into an agreement with De Lage Landen, Inc. (“DLL”), a third party financing company, to provide the majority of future lease financing to Invacare customers.

Research and Development

Research and Development: Research and development costs are expensed as incurred and included in cost of products sold. The company’s annual expenditures for product development and engineering were approximately $18,677,000, $23,149,000 and $24,075,000 for 2015, 2014 and 2013, respectively.

Advertising

Advertising: Advertising costs are expensed as incurred and included in selling, general and administrative expenses. Advertising expenses amounted to $9,203,000, $13,463,000 and $15,026,000 for 2015, 2014 and 2013, respectively, the majority of which is incurred for advertising in the United States and Europe.

Income Taxes

Income Taxes: The company uses the liability method in measuring the provision for income taxes and recognizing deferred tax assets and liabilities on the balance sheet. The liability method requires that deferred income taxes reflect the tax consequences of currently enacted rates for differences between the tax and financial reporting bases of assets and liabilities. With the exceptionof two subsidiaries, foreign subsidiaries with undistributed earnings are considered to have such earnings indefinitely reinvested and, accordingly with the exception of the two subsidiaries, no deferred tax liability has been provided for future repatriation of $24,100,000 of unremitted earnings of these foreign subsidiaries. The amount of the unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that are permanently reinvested is not practically determinable. The company has recorded the deferred tax impact of the unremitted earnings of the two subsidiaries for which the earnings are not permanently reinvested.

Derivative Instruments

Derivative Instruments:Derivatives and Hedging, ASC 815, requires companies to recognize all derivative instruments in the consolidated balance sheet as either assets or liabilities at fair value. The accounting for changes in fair value of a derivative is dependent upon whether or not the derivative has been designated and qualifies for hedge accounting treatment and the type of hedging relationship. For derivatives designated and qualifying as hedging instruments, the company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation.

The company recognizes its derivative instruments as assets or liabilities in the consolidated balance sheet measured at fair value. A majority of the company’s derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the fair value of the hedged item, if any, is recognized in current earnings during the period of change.

Foreign Currency Translation

Foreign Currency Translation: The functional currency of the company’s subsidiaries outside the United States is the applicable local currency. The assets and liabilities of the company’s foreign subsidiaries are translated into U.S. dollars at year-end exchange rates. Revenues and expenses are translated at monthly average exchange rates. Gains and losses resulting from translation of balance sheet items are included in accumulated other comprehensive earnings.

Net Earnings Per Share

Net Earnings Per Share: Basic earnings per share are computed based on the weighted-average number of Common Shares and Class B Common Shares outstanding during the year. Diluted earnings per share are computed based on the weighted-average number of Common Shares and Class B Common Shares outstanding plus the effects of dilutive stock options and awards outstanding during the year. Diluted earnings per share can potentially be impacted by the convertible notes issued in 2007 should the conditions be met to make the notes convertible or if average market price of company stock for the period exceeds the conversion price of $24.79. For periods in which there was a net loss, loss per share assuming dilution utilized weighted average shares-basic.

Defined Benefit Plans

Defined Benefit Plans: The company’s benefit plans are accounted for in accordance with Compensation-Retirement Benefits, ASC 715 which requires plan sponsors to recognize the funded status of their defined benefit postretirement benefit plans in the consolidated balance sheet, measure the fair value of plan assets and benefit obligations as of the balance sheet date and to recognize changes in that funded status in the year in which the changes occur through comprehensive income.

Reclassifications

Reclassifications: In May 2015, the company's board of directors authorized the sale of the company's former rentals businesses. Accordingly, the rentals businesses were treated as held for sale. The company's December 31, 2014 Balance Sheet was restated to reflect this treatment. See Operations Held for Sale in the Notes to the Consolidated Financial Statements for a description of the impact on the consolidated balance sheet.

Recent Accounting Pronouncements

Recent Accounting Pronouncements: In April 2014, the FASB issued ASU 2014-08 changing the presentation of discontinued operations on the statements of income and other requirements for reporting discontinued operations. Under the new standard, a disposal of a component or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component meets the criteria to be classified as held for sale or is disposed. The amendments in this update also require additional disclosures about discontinued operations and disposal of an individually significant component of an entity that does not qualify for discontinued operations. This standard must be prospectively applied to all reporting periods presented in financial reports issued after the effective date. Early adoption was permitted for disposals that were not reported in financial statements previously issued or available for issuance. The new accounting guidance was effective for interim and annual periods beginning after December 15, 2014. This standard can impact the presentation of the company's financial statements but does not affect the calculation of net income, comprehensive income or earnings per share. The company adopted ASU 2014-08 effective January 1, 2015 which impacted the company’s Condensed Consolidated Statement of Comprehensive Income (Loss), Balance Sheets and Statement of Cash Flows. Specifically, the disposal of the United States Rentals businesses, in the third quarter of 2015, was not deemed to be a discontinued operation.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 requires a company to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. The guidance requires five steps to be applied: 1) identify the contract(s) with customers, 2) identify the performance obligations in the contract, 3) determine the transaction price, 4) allocate the transaction price to the performance obligation in the contract and 5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also requires both quantitative and qualitative disclosures, which are more comprehensive than existing revenue standards. The disclosures are intended to enable financial statement users to understand the nature, timing and uncertainty of revenue and the related cash flow. An entity can apply the new revenue standard retrospectively to each prior reporting period presented or retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application in retained earnings. The new accounting guidance is effective for annual periods beginning after December 15, 2017, due to an approved one-year deferral, and early adoption is not permitted. The company is currently reviewing the impact of the adoption of ASU 2014-09 on the company's financial statements.

In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires debt issuance costs to be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability, which is similar presentation of debt discounts or premiums. Debt issuance costs are currently reported on the balance sheet as assets and amortized as interest expense. ASU 2015-03 does not change the recognition and measurement guidance for debt issuance costs and requires retrospective application to all periods presented upon adoption. The new accounting guidance is effective for fiscal periods beginning after December 15, 2015 and early adoption is permitted. The company has determined the adoption of ASU 2015-03 will not have a material impact on the company's financial statements.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” to simplify the subsequent measurement of inventory. Entities are now required to subsequently measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. This update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, and early adoption is permitted. The company is currently reviewing the impact of the adoption of ASU 2015-11 on the company's financial statements.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." ASU 2015-17 requires deferred tax assets and liabilities to be classified as noncurrent amounts on the balance sheet. The new accounting guidance is effective for fiscal periods beginning after December 15, 2016 and early adoption is permitted. The company adopted ASU 2015-17, on a prospective basis, effective October 1, 2015 and thus the company's deferred tax assets and liabilities have been classified as long-term in its Balance Sheet as of December 31, 2015. No prior periods were retrospectively adjusted.

In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 requires lessees to put most leases on their balance sheet while recognizing expense in a manner similar to existing accounting. The new accounting guidance is effective for fiscal periods beginning after December 15, 2018 and early adoption is permitted. The company is currently reviewing the impact of the adoption of ASU 2016-02 on the company's financial statements.

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Operations Held for Sale (Tables)

12 Months Ended

Dec. 31, 2015

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The assets and liabilities of the rentals businesses that were sold and shown as held for sale in the company's Consolidated Balance Sheets were comprised of the following (in thousands):

	July 2, 2015		December 31, 2014
Trade receivables, net	$	5,834	$	6,207
Inventories, net	412		315
Other current assets	212		221
Property and equipment, net	4,126		5,896
Goodwill	4,518		4,692
Intangibles	40		57
Assets sold	$	15,142	$	17,388
Accounts payable	$	410	$	225
Accrued expenses and other short-term obligations	1,056		788
Liabilities sold	$	1,466	$	1,013

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Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2015

Altimate Medical, Inc.

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The assets and liabilities of Altimate were the following as of the date of the sale, August 29, 2014, and as of December 31, 2013 (in thousands):

	August 29, 2014
Trade receivables, net	$	2,019
Inventories, net	1,954
Other current assets	246
Property and equipment, net	176
Other Intangibles	1,047
Assets sold	$	5,442
Accounts payable	$	425
Accrued expenses	316
Liabilities sold	$	741

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Receivables (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Schedule of Installment Receivables

Installment receivables as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015									2014
	Current			Long- Term			Total			Current			Long- Term			Total
Installment receivables	$	2,309		$	2,318		$	4,627		$	2,692		$	5,117		$	7,809
Less:
Unearned interest	(42		)	—			(42		)	(46		)	—			(46		)
	2,267			2,318			4,585			2,646			5,117			7,763
Allowance for doubtful accounts	(1,122		)	(1,670		)	(2,792		)	(1,592		)	(4,260		)	(5,852		)
	$	1,145		$	648		$	1,793		$	1,054		$	857		$	1,911

Schedule of Installment Receivables Allowance for Doubtful Accounts

The movement in the installment receivables allowance for doubtful accounts was as follows (in thousands):

	2015			2014
Balance as of January 1	$	5,852		$	6,039
Current period (benefit) provision	(332		)	796
Direct write-offs charged against the allowance	(2,728		)	(983		)
Balance as of December 31	$	2,792		$	5,852

Schedule of Installment Receivables by Class

Installment receivables by class as of December 31, 2015 consist of the following (in thousands):

	Total Installment Receivables		Unpaid Principal Balance		Related Allowance for Doubtful Accounts		Interest Income Recognized
U.S.
Impaired installment receivables with a related allowance recorded	$	3,618	$	3,618	$	2,729	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	946		904		—		52
Impaired installment receivables with a related allowance recorded	63		63		63		—
Total Canadian installment receivables	$	1,009	$	967	$	63	$	52
Total
Non-Impaired installment receivables with no related allowance recorded	946		904		—		52
Impaired installment receivables with a related allowance recorded	3,681		3,681		2,792		—
Total installment receivables	$	4,627	$	4,585	$	2,792	$	52

Installment receivables by class as of December 31, 2014 consist of the following (in thousands):

	Total Installment Receivables		Unpaid Principal Balance		Related Allowance for Doubtful Accounts		Interest Income Recognized
U.S.
Impaired installment receivables with a related allowance recorded	$	6,735	$	6,735	$	5,786	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	1,008		962		—		82
Impaired installment receivables with a related allowance recorded	66		66		66		—
Total Canadian installment receivables	$	1,074	$	1,028	$	66	$	82
Total
Non-Impaired installment receivables with no related allowance recorded	1,008		962		—		82
Impaired installment receivables with a related allowance recorded	6,801		6,801		5,852		—
Total installment receivables	$	7,809	$	7,763	$	5,852	$	82

Schedule of Financing Receivables

Installment receivables by class as of December 31, 2015 consist of the following (in thousands):

	Total Installment Receivables		Unpaid Principal Balance		Related Allowance for Doubtful Accounts		Interest Income Recognized
U.S.
Impaired installment receivables with a related allowance recorded	$	3,618	$	3,618	$	2,729	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	946		904		—		52
Impaired installment receivables with a related allowance recorded	63		63		63		—
Total Canadian installment receivables	$	1,009	$	967	$	63	$	52
Total
Non-Impaired installment receivables with no related allowance recorded	946		904		—		52
Impaired installment receivables with a related allowance recorded	3,681		3,681		2,792		—
Total installment receivables	$	4,627	$	4,585	$	2,792	$	52

Installment receivables by class as of December 31, 2014 consist of the following (in thousands):

	Total Installment Receivables		Unpaid Principal Balance		Related Allowance for Doubtful Accounts		Interest Income Recognized
U.S.
Impaired installment receivables with a related allowance recorded	$	6,735	$	6,735	$	5,786	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	1,008		962		—		82
Impaired installment receivables with a related allowance recorded	66		66		66		—
Total Canadian installment receivables	$	1,074	$	1,028	$	66	$	82
Total
Non-Impaired installment receivables with no related allowance recorded	1,008		962		—		82
Impaired installment receivables with a related allowance recorded	6,801		6,801		5,852		—
Total installment receivables	$	7,809	$	7,763	$	5,852	$	82

Schedule of Aging of Installment Receivables

The aging of the company’s installment receivables was as follows as of December 31, 2015 and 2014 (in thousands):

	December 31, 2015						December 31, 2014
	Total		U.S.		Canada		Total		U.S.		Canada
Current	$	908	$	—	$	908	$	976	$	—	$	976
0-30 days past due	16		—		16		15		—		15
31-60 days past due	12		—		12		2		—		2
61-90 days past due	1		—		1		—		—		—
90+ days past due	3,690		3,618		72		6,816		6,735		81
	$	4,627	$	3,618	$	1,009	$	7,809	$	6,735	$	1,074

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Inventories (Tables)

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories, net of reserves, as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Finished goods	$	67,207	$	85,828
Raw materials	54,005		57,509
Work in process	11,595		12,224
	$	132,807	$	155,561

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Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

Other current assets as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Value added tax receivables	$	18,031	$	21,273
Recoverable income taxes	367		261
Derivatives (foreign currency forward contracts)	4,143		520
Prepaid insurance	2,538		2,713
Prepaid and other current assets	9,380		12,031
	$	34,459	$	36,798

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Other Long-Term Assets (Tables)

12 Months Ended

Dec. 31, 2015

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets, Noncurrent

Other long-term assets as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Cash surrender value of life insurance policies	$	1,674	$	15,765
Deferred financing fees	1,088		408
Investments	160		249
Long-term installment receivables	648		857
Long-term deferred taxes	908		613
Other	181		1,161
	$	4,659	$	19,053

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Property And Equipment (Tables)

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property and equipment as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015			2014
Machinery and equipment	$	299,721		$	318,286
Land, buildings and improvements	73,830			81,219
Furniture and fixtures	10,031			11,738
Leasehold improvements	11,966			14,517
	395,548			425,760
Less allowance for depreciation	(316,865		)	(346,101		)
	$	78,683		$	79,659

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Goodwill (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The carrying amount of goodwill by operating segment is as follows (in thousands):

	Institutional Products Group			Europe			Consolidated
Balance at January 1, 2014	$	31,615		$	425,919		$	457,534
Foreign currency translation adjustments	(1,696		)	(34,819		)	(36,515		)
Balance at December 31, 2014	29,919			391,100			421,019
Foreign currency translation adjustments	(2,763		)	(56,576		)	(59,339		)
Balance at December 31, 2015	$	27,156		$	334,524		$	361,680

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Intangibles (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived Intangible Assets

The company’s intangibles consist of the following (in thousands):

	December 31, 2015				December 31, 2014
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Customer lists	$	49,858	$	45,019	$	78,693	$	71,343
Trademarks	24,524		—		28,314		—
License agreements	1,098		1,098		1,290		1,290
Developed technology	7,405		5,921		8,297		6,340
Patents	5,959		5,843		6,102		5,804
Other	1,161		1,124		2,548		2,454
	$	90,005	$	59,005	$	125,244	$	87,231

Schedule of Finite Lived Intangible Assets

The company’s intangibles consist of the following (in thousands):

	December 31, 2015				December 31, 2014
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Customer lists	$	49,858	$	45,019	$	78,693	$	71,343
Trademarks	24,524		—		28,314		—
License agreements	1,098		1,098		1,290		1,290
Developed technology	7,405		5,921		8,297		6,340
Patents	5,959		5,843		6,102		5,804
Other	1,161		1,124		2,548		2,454
	$	90,005	$	59,005	$	125,244	$	87,231

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Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Accrued Expenses

Accrued expenses as of December 31, 2015 and 2014 consisted of accruals for the following (in thousands):

	2015		2014
Salaries and wages	$	41,305	$	40,850
Taxes other than income taxes, primarily Value Added Taxes	21,424		24,743
Warranty cost	22,820		30,738
Supplemental Executive Retirement Plan (SERP)	1,279		21,517
Freight	6,153		6,202
Professional	5,774		6,613
Product liability, current portion	3,127		4,334
Rebates	1,791		1,722
Insurance	695		1,266
Interest	872		1,068
Derivatives (foreign currency forward exchange contracts)	2,014		2,526
Severance	2,477		4,209
Other items, principally trade accruals	12,689		9,911
	$	122,420	$	155,699

Accrued Warranty Costs

Changes in accrued warranty costs were as follows (in thousands):

	2015			2014
Balance as of January 1	$	30,738		$	27,393
Warranties provided during the period	11,561			21,472
Settlements made during the period	(17,817		)	(22,752		)
Changes in liability for pre-existing warranties during the period, including expirations	(1,662		)	4,625
Balance as of December 31	$	22,820		$	30,738

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Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Debt as of December 31, 2015 and 2014 consisted of the following (in thousands):

	2015			2014
Senior secured revolving credit facility, due in October 2015	$	—		$	4,000
Convertible senior subordinated debentures at 4.125%, due in February 2027	12,147			11,351
Other notes and lease obligations	34,973			4,980
	47,120			20,331
Less current maturities of long-term debt	(2,028		)	(959		)
	$	45,092		$	19,372

Schedule of Debt

The components of the company’s convertible debt as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015			2014
Carrying amount of equity component	$	25,381		$	25,381
Principal amount of liability component	$	13,350		$	13,350
Unamortized discount	(1,203		)	(1,999		)
Net carrying amount of liability component	$	12,147		$	11,351

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Other Long-Term Obligations (Tables)

12 Months Ended

Dec. 31, 2015

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities, Noncurrent

Other long-term obligations as of December 31, 2015 and 2014 consist of the following (in thousands):

	2015		2014
Supplemental Executive Retirement Plan liability	$	4,930	$	6,067
Product liability	14,582		18,860
Deferred income taxes	32,115		30,423
Deferred gain on sale leaseback	6,978		—
Deferred compensation	4,167		5,667
Uncertain tax obligation including interest	4,467		15,160
Other	15,350		12,628
Total long-term obligations	$	82,589	$	88,805

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Leases and Commitments (Tables)

12 Months Ended

Dec. 31, 2015

Leases [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum operating and capital lease commitments, as of December 31, 2015, are as follows (in thousands):

	Capital Leases			Operating Leases
2016	$	3,375		$	15,067
2017	3,375			8,804
2018	2,848			5,005
2019	2,671			2,378
2020	2,671			1,101
Thereafter	32,872			268
Total future minimum lease payments	47,812			$	32,623
Amounts representing interest	(12,839		)
Present value of minimum lease payments	$	34,973

Schedule of Future Minimum Lease Payments for Capital Leases

Future minimum operating and capital lease commitments, as of December 31, 2015, are as follows (in thousands):

	Capital Leases			Operating Leases
2016	$	3,375		$	15,067
2017	3,375			8,804
2018	2,848			5,005
2019	2,671			2,378
2020	2,671			1,101
Thereafter	32,872			268
Total future minimum lease payments	47,812			$	32,623
Amounts representing interest	(12,839		)
Present value of minimum lease payments	$	34,973

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Equity Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan

The amounts of equity-based compensation expense recognized as part of selling, general and administrative expenses were as follows (in thousands):

	2015		2014		2013
Non-Qualified stock options	$	1,228	$	3,356	$	3,926
Restricted stock and restricted stock units	2,785		2,270		2,031
Performance shares and performance share units	—		—		—
Total stock-based compensation expense	$	4,013	$	5,626	$	5,957

Schedule of Unrecognized Compensation Cost, Nonvested Awards

As of December 31, 2015, unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2013 Plan and previous plans, which is related to non-vested options and shares, was as follows (in thousands):

	2015		2014		2013
Non-Qualified stock options	$	1,059	$	2,600	$	8,270
Restricted stock and restricted stock units	9,476		4,461		3,705
Performance shares and performance share units	—		—		—
Total stock-based compensation expense	$	10,535	$	7,061	$	11,975

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes information about stock option activity for the three years ended 2015, 2014 and 2013:

	2015			Weighted Average Exercise Price		2014			Weighted Average Exercise Price		2013			Weighted Average Exercise Price
Options outstanding at January 1	3,600,132			$	22.74	4,533,782			$	23.86	4,664,634			$	26.21
Granted	—			0.00		8,977			16.71		756,700			14.47
Exercised	(172,218		)	13.95		(33,810		)	14.16		(30,166		)	16.94
Canceled	(485,131		)	34.98		(908,817		)	28.57		(857,386		)	28.63
Options outstanding at December 31	2,942,783			$	21.22	3,600,132			$	22.74	4,533,782			$	23.86
Options exercise price range at December 31	$ 13.37 to					$ 13.37 to					$ 13.35 to
	$	33.36				$	47.80				$	47.80
Options exercisable at December 31	2,656,983					2,954,082					2,985,175
Shares available for grant at December 31*	2,659,562					3,654,426					4,460,337

 ________________________

 * Shares available for grant as of December 31, 2015 reduced by net restricted stock / unit and performance share / unit award activity of 1,110,740 shares and 681,058 shares, respectively.

Schedule of Share-based Compensation, Stock Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2015:

	Options Outstanding				Options Exercisable
Exercise Prices	Number Outstanding At 12/31/15	Weighted Average Remaining Contractual Life Years	Weighted Average Exercise Price		Number Exercisable At 12/31/15	Weighted Average Exercise Price
$ 13.37 – $20.00	778,159	6.7	$	14.12	493,671	$	14.11
$ 20.01 – $25.00	1,353,578	3.3	22.59		1,353,578	22.59
$ 25.01 – $30.00	783,738	3.7	25.55		783,738	25.55
$ 30.01 – $33.36	27,308	1.0	31.74		25,996	31.73
Total	2,942,783	4.3	$	21.22	2,656,983	$	21.98

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for awards granted in 2014 and 2013 as no options were granted in 2015:

	2014		2013
Expected dividend yield	0.3	%	0.4	%
Expected stock price volatility	36.8	%	38.2	%
Risk-free interest rate	1.76	%	0.82	%
Expected life in years	6.1		6.1
Forfeiture percentage	13.0	%	9.2	%

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

The following table summarizes information about restricted shares and restricted share units (for non-U.S. recipients):

	2015		Weighted Average Fair Value		2014		Weighted Average Fair Value		2013		Weighted Average Fair Value
Stock / Units unvested at January 1	312,423		$	17.91	264,878		$	16.69	260,548		$	19.15
Granted	480,839		19.09		218,276		19.36		114,700		14.49
Vested	(56,976	)	16.47		(93,140	)	17.62		(97,445	)	20.33
Canceled	(94,781	)	18.11		(77,591	)	17.58		(12,925	)	19.23
Stock / Units unvested at December 31	641,505		$	18.89	312,423		$	17.91	264,878		$	16.69

Share-based Compensation, Performance Shares Award Unvested Activity

The following table summarizes information about performance shares and performance share units (for non-U.S. recipients):

	2015		Weighted Average Fair Value		2014		Weighted Average Fair Value
Shares / Units unvested at January 1	121,644		$	20.05	—		$	—
Granted	114,257		18.95		152,800		20.05
Vested	—		—		—		—
Canceled	(37,500	)	19.62		(31,156	)	20.05
Shares / Units unvested at December 31	198,401		$	19.50	121,644		$	20.05

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Accumulated Other Comprehensive Income (Loss) by Component (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income ("OCI") during the year ended December 31, 2015 were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
December 31, 2014	$	86,236		$	(6,465	)	$	(7,601	)	$	(551	)	$	71,619
OCI before reclassifications	(91,980		)	10,576			(2,292		)	3,545			(80,151		)
Amount reclassified from accumulated OCI	—			—			136			(991		)	(855		)
Net current-period OCI	(91,980		)	10,576			(2,156		)	2,554			(81,006		)
December 31, 2015	$	(5,744	)	$	4,111		$	(9,757	)	$	2,003		$	(9,387	)

Changes in OCI during the year ended December 31, 2014 were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
December 31, 2013	$	143,845		$	(12,566	)	$	(5,414	)	$	(709	)	$	125,156
OCI before reclassifications	(57,609		)	6,101			(3,223		)	562			(54,169		)
Amount reclassified from accumulated OCI	—			—			1,036			(404		)	632
Net current-period OCI	(57,609		)	6,101			(2,187		)	158			(53,537		)
December 31, 2014	$	86,236		$	(6,465	)	$	(7,601	)	$	(551	)	$	71,619

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Reclassifications out of accumulated OCI for the year ended December 31, 2015 and December 31, 2014 were as follows (in thousands):

	Amount reclassified from OCI						Affected Statement of Comprehensive (Income) Loss line
	2015			2014
Defined Benefit Plans
Service and interest costs	$	133		$	1,045		Selling, General and Administrative
Tax	3			(9		)	Income Taxes
Total after tax	$	136		$	1,036
Derivatives
Foreign currency forward contracts hedging sales	$	2,778		$	657		Net Sales
Foreign currency forward contracts hedging purchases	(3,890		)	(995		)	Cost of Products Sold
Interest rate swaps	—			12			Interest Expense
Total before tax	(1,112		)	(326		)
Tax	121			(78		)	Income Taxes
Total after tax	$	(991	)	$	(404	)

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Capital Stock (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Schedule of Capital Stock

Capital stock activity for 2015, 2014 and 2013 consisted of the following (in thousands of shares):

	Common Stock Shares	Class B Shares		Treasury Shares
January 1, 2013 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	)
Conversion of Class B to Common	351	(351	)	—
Exercise of stock options	172	—		—
Restricted stock awards	282	—		(7	)
December 31, 2015 Balance	35,024	734		(3,194	)

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Charges Related To Restructuring Activities (Tables)

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Costs

A progression by reporting segment of the accruals recorded as a result of the restructuring is as follows (in thousands):

	Severance			Inventory			Lease Terminations			Other			Total
December 31, 2010 Balance	$	—		$	—		$	—		$	—		$	—
Charges
North America/HME	4,755			—			—			4			4,759
IPG	123			—			—			—			123
Europe	3,288			277			1,788			113			5,466
Asia/Pacific	186			—			—			—			186
Total	8,352			277			1,788			117			10,534
Payments
North America/HME	(1,663		)	—			—			(4		)	(1,667		)
IPG	(52		)	—			—			—			(52		)
Europe	(1,546		)	(277		)	(1,714		)	(113		)	(3,650		)
Asia/Pacific	(186		)	—			—			—			(186		)
Total	(3,447		)	(277		)	(1,714		)	(117		)	(5,555		)
December 31, 2011 Balance
North America/HME	3,092			—			—			—			3,092
IPG	71			—			—			—			71
Europe	1,742			—			74			—			1,816
Asia/Pacific	—			—			—			—			—
Total	4,905			—			74			—			4,979
Charges
North America/HME	4,242			—			5			—			4,247
IPG	35			—			—			—			35
Europe	817			—			53			1,223			2,093
Asia/Pacific	1,681			491			1,667			1,181			5,020
Total	6,775			491			1,725			2,404			11,395
Payments
North America/HME	(3,587		)	—			(5		)	—			(3,592		)
IPG	(106		)	—			—			—			(106		)
Europe	(1,964		)	—			(127		)	(1,223		)	(3,314		)
Asia/Pacific	(812		)	(340		)	(42		)	(1,175		)	(2,369		)
Total	(6,469		)	(340		)	(174		)	(2,398		)	(9,381		)
December 31, 2012 Balance
North America/HME	3,747			—			—			—			3,747
Europe	595			—			—			—			595
Asia/Pacific	869			151			1,625			6			2,651
Total	5,211			151			1,625			6			6,993
Charges
North America/HME	5,405			—			164			353			5,922
IPG	267			—			—			—			267
Europe	1,640			—			—			—			1,640
Asia/Pacific	970			—			534			3			1,507
Total	8,282			—			698			356			9,336
Payments
North America/HME	(6,347		)	—			(164		)	(353		)	(6,864		)
IPG	(175		)	—			—			—			(175		)
Europe	(1,146		)	—			—			—			(1,146		)
Asia/Pacific	(1,839		)	(151		)	(1,660		)	(9		)	(3,659		)
Total	$	(9,507	)	$	(151	)	$	(1,824	)	$	(362	)	$	(11,844	)

	Severance			Inventory		Lease Terminations			Other			Total
December 31, 2013 Balance
North America/HME	$	2,805		$	—	$	—		$	—		$	2,805
IPG	92			—		—			—			92
Europe	1,089			—		—			—			1,089
Asia/Pacific	—			—		499			—			499
Total	3,986			—		499			—			4,485
Charges
North America/HME	4,404			—		—			—			4,404
IPG	1,163			—		—			761			1,924
Europe	527			—		—			525			1,052
Asia/Pacific	769			—		(15		)	—			754
Other	2,978			—		—			—			2,978
Total	9,841			—		(15		)	1,286			11,112
Payments
North America/HME	(6,547		)	—		—			—			(6,547		)
IPG	(1,107		)	—		—			(761		)	(1,868		)
Europe	(1,195		)	—		—			(525		)	(1,720		)
Asia/Pacific	(769		)	—		(227		)	—			(996		)
Total	(9,618		)	—		(227		)	(1,286		)	(11,131		)
December 31, 2014 Balance
North America/HME	662			—		—			—			662
IPG	148			—		—			—			148
Europe	421			—		—			—			421
Asia/Pacific	—			—		257			—			257
Other	2,978			—		—			—			2,978
Total	4,209			—		257			—			4,466
Charges
North America/HME	1,069			—		292			—			1,361
IPG	73			—		—			—			73
Europe	510			—		—			—			510
Asia/Pacific	26			—		1			—			27
Total	1,678			—		293			—			1,971
Payments
North America/HME	(1,069		)	—		(55		)	—			(1,124		)
IPG	(221		)	—		—			—			(221		)
Europe	(619		)	—		—			—			(619		)
Asia/Pacific	(26		)	—		(258		)	—			(284		)
Other	(1,475		)	—		—			—			(1,475		)
Total	(3,410		)	—		(313		)	—			(3,723		)
December 31, 2015 Balance
North America/HME	662			—		237			—			899
Europe	312			—		—			—			312
Other	1,503			—		—			—			1,503
Total	$	2,477		$	—	$	237		$	—		$	2,714

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Earnings (loss) from continuing operations before income taxes consist of the following (in thousands):

	2015			2014			2013
Domestic	$	(54,812	)	$	(104,776	)	$	(73,529	)
Foreign	43,072			41,566			30,070
	$	(11,740	)	$	(63,210	)	$	(43,459	)

Schedule of Components of Income Tax Expense (Benefit)

The company has provided for income taxes (benefits) from continuing operations as follows (in thousands):

	2015			2014			2013
Current:
Federal	$	(167	)	$	(7,105	)	$	(2,485	)
State	(150		)	(63		)	300
Foreign	11,439			15,105			11,043
	11,122			7,937			8,858
Deferred:
Federal	3,222			100			3,011
State	318			—			—
Foreign	48			(2,487		)	(994		)
	3,588			(2,387		)	2,017
Income Taxes	$	14,710		$	5,550		$	10,875

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation to the effective income tax rate from the federal statutory rate is as follows:

	2015		2014		2013
Statutory federal income tax rate	(35.0	)%	(35.0	)%	(35.0	)%
State and local income taxes, net of federal income tax benefit	0.9		(0.1	)	0.5
Tax credits	(61.8	)	(5.1	)	(22.8	)
Foreign taxes at less than the federal statutory rate (including tax holidays)	(46.1	)	(10.7	)	(10.6	)
Federal and foreign valuation allowance	168.0		52.5		35.8
Withholding taxes	3.0		0.6		0.7
Compensation	0.6		0.1		0.5
Dividends	100.1		12.3		54.6
Life insurance	(2.7	)	4.1		(1.5	)
Foreign branch activity	(8.1	)	(1.8	)	(1.8	)
Uncertain tax positions	6.7		1.2		1.3
Other, net	(0.3	)	(9.3	)	3.3
	125.3	%	8.8	%	25.0	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred income tax assets and liabilities at December 31, 2015 and 2014 are as follows (in thousands):

	2015			2014
Current deferred income tax assets (liabilities), net:
Bad debt	$	—		$	5,364
Warranty	—			7,092
State and local taxes	—			2,240
Other accrued expenses and reserves	—			1,852
Inventory	—			3,096
Compensation and benefits	—			2,209
Product liability	—			594
Valuation allowance	—			(22,084		)
Other, net	—			(732		)
	$	—		$	(369	)
Long-term deferred income tax assets (liabilities), net:
Bad Debt	$	3,670		$	—
Warranty	5,357			—
Other accrued expenses and reserves	4,355			—
Inventory	2,395			—
Goodwill and intangibles	(25,008		)	(21,915		)
Convertible debt	(421		)	(700		)
Fixed assets	(8,207		)	(10,431		)
Compensation and benefits	7,136			14,630
Loss and credit carryforwards	102,194			65,123
Product liability	4,107			4,919
State and local taxes	19,932			17,745
Valuation allowance	(151,972		)	(111,828		)
Other, net	5,255			12,647
	$	(31,207	)	$	(29,810	)
Net Deferred Income Taxes	$	(31,207	)	$	(30,179	)

Summary of Deferred Tax Liability Not Recognized

A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows (in thousands):

	2015			2014
Balance at beginning of year	$	11,019		$	10,833
Additions to:
Positions taken during the current year	227			348
Positions taken during a prior year	270			418
Deductions due to:
Exchange rate impact	(1,197		)	(362		)
Positions taken during a prior year	(527		)	—
Lapse of statute of limitations	(239		)	(218		)
Balance at end of year	$	9,553		$	11,019

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Net Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net earnings (loss) per common share.

	2015			2014			2013
	(In thousands except per share data)
Basic
Average common shares outstanding	32,171			32,009			31,915
Net loss from continuing operations	$	(26,450	)	$	(68,760	)	$	(54,334	)
Net earnings from discontinued operations	$	260		$	12,690		$	87,385
Net earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Net loss per common share from continuing operations	$	(0.82	)	$	(2.15	)	$	(1.70	)
Net earnings per common share from discontinued operations	$	0.01		$	0.40		$	2.74
Net earnings (loss) per common share	$	(0.81	)	$	(1.75	)	$	1.04
Diluted
Average common shares outstanding	32,171			32,009			31,915
Stock options and awards	512			188			128
Average common shares assuming dilution	32,683			32,197			32,043
Net loss from continuing operations	$	(26,450	)	$	(68,760	)	$	(54,334	)
Net earnings from discontinued operations	$	260		$	12,690		$	87,385
Net earnings (loss)	$	(26,190	)	$	(56,070	)	$	33,051
Net loss per common share from continuing operations *	$	(0.82	)	$	(2.15	)	$	(1.70	)
Net earnings per common share from discontinued operations	$	0.01		$	0.39		$	2.73
Net earnings (loss) per common share *	$	(0.81	)	$	(1.75	)	$	1.03

* Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

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Derivatives (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

Foreign exchange forward contracts qualifying and designated for hedge accounting treatment were as follows (in thousands USD):

	December 31, 2015					December 31, 2014
	Notional Amount		Unrealized Net Gain (Loss)			Notional Amount		Unrealized Net Gain (Loss)
USD / AUD	$	2,910	$	(83	)	$	1,250	$	65
USD / CAD	3,893		181			3,570		(63		)
USD / CHF	—		—			111		—
USD / CNY	16,786		(282		)	—		—
USD / EUR	72,758		2,681			25,524		—
USD / GBP	3,862		22			1,199		3
USD / NZD	4,893		37			7,018		(55		)
USD / SEK	5,128		39			594		1
USD / MXP	8,494		(284		)	10,297		(657		)
EUR / AUD	669		(10		)	452		5
EUR / CAD	1,283		(17		)	580		(1		)
EUR / CHF	1,944		(17		)	505		(2		)
EUR / DKK	—		—			643		(3		)
EUR / GBP	36,567		(424		)	11,906		23
EUR / NOK	3,375		(55		)	1,490		43
EUR / SEK	2,464		(42		)	2,917		(9		)
EUR / NZD	3,609		476			7,074		60
GBP / AUD	830		(46		)	656		22
GBP / CHF	463		(7		)	331		(1		)
GBP / SEK	2,067		(1		)	1,035		(2		)
AUD / CAD	—		—			1,538		30
AUD / CHF	—		—			93		1
AUD / NZD	352		8			537		19
AUD / SEK	—		—			61		(1		)
CAD / SEK	—		—			182		(1		)
CHF / DKK	—		—			269		(2		)
DKK / SEK	37,293		46			2,497		(44		)
NOK / CHF	—		—			66		2
NOK / SEK	3,524		(39		)	1,547		19
	$	213,164	$	2,183		$	83,942	$	(548	)

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

Foreign exchange forward contracts not qualifying or designated for hedge accounting treatment entered into in 2015 and 2014, respectively, and outstanding were as follows (in thousands USD):

	December 31, 2015					December 31, 2014
	Notional Amount		Gain (Loss)			Notional Amount		Gain (Loss)
AUD / USD	$	8,051	$	337		$	7,300	$	117
CAD / USD	5,762		(4		)	6,016		$	(6	)
CNY / USD	9,943		(441		)	3,200		(14		)
EUR / USD	2,118		53			53,365		(1,585		)
DKK / USD	7,927		125			—		—
GBP / USD	4,526		(106		)	5,592		18
NZD / USD	—		—			4,500		12
NOK / USD	1,838		(18		)	—		—
	$	40,165	$	(54	)	$	79,973	$	(1,458	)

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

The fair values of the company’s derivative instruments were as follows (in thousands):

	December 31, 2015				December 31, 2014
	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	$	3,626	$	1,443	$	373	$	921
Derivatives not designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	517		571		147		1,605
Total derivatives	$	4,143	$	2,014	$	520	$	2,526

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The effect of derivative instruments on the Statement of Operations and Other Comprehensive Income (OCI) was as follows, net of tax (in thousands):

Derivatives in ASC 815 cash flow hedge relationships	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Amount of Loss Recognized in Income on Derivatives  (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Year ended December 31, 2015
Foreign currency forward exchange contracts	$	3,545	$	991		$	(11	)
Year ended December 31, 2014
Foreign currency forward exchange contracts	$	562	$	416		$	(11	)
Interest rate swap contracts	—		(12		)	—
	$	562	$	404		$	(11	)
Derivatives not designated as hedging instruments under ASC 815						Amount of Gain (Loss) Recognized in Income on Derivatives
Year ended December 31, 2015
Foreign currency forward contracts						$	(54	)
Year ended December 31, 2014
Foreign currency forward contracts						$	(1,458	)

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Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table provides a summary of the company’s assets and liabilities that are measured on a recurring basis (in thousands).

				Basis for Fair Value Measurements at Reporting Date
				Quoted Prices in Active Markets for Identical Assets / (Liabilities)	Significant Other Observable Inputs			Significant Other Unobservable Inputs
	Total			Level I	Level II			Level III
December 31, 2015:
Forward Exchange Contracts—net	$	2,129		—	$	2,129		—
December 31, 2014:
Forward Exchange Contracts—net	$	(2,006	)	—	$	(2,006	)	—

Fair Value, by Balance Sheet Grouping

The carrying amounts and fair values of the company’s financial instruments at December 31, 2015 and 2014 are as follows (in thousands):

	2015						2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
Cash and cash equivalents	$	60,055		$	60,055		$	38,931		$	38,931
Other investments	160			160			249			249
Installment receivables, net of reserves	1,793			1,793			1,911			1,911
Long-term debt (including current maturities of long-term debt)	(47,120		)	(47,369		)	(20,331		)	(20,248		)
Forward contracts in other current assets	4,143			4,143			520			520
Forward contracts in accrued expenses	(2,014		)	(2,014		)	(2,526		)	(2,526		)

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Business Segments (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The information by segment is as follows (in thousands):

	2015		2014		2013
Revenues from external customers
North America/HME	$	474,196	$	507,867	$	589,240
Institutional Products Group	87,137		102,796		112,290
Europe	536,463		610,555		583,143
Asia/Pacific	44,542		48,945		49,832
Consolidated	$	1,142,338	$	1,270,163	$	1,334,505
Intersegment revenues
North America/HME	$	111,321	$	84,247	$	77,553
Institutional Products Group	997		6,711		5,304
Europe	9,958		8,938		8,272
Asia/Pacific	20,661		26,173		24,941
Consolidated	$	142,937	$	126,069	$	116,070
Depreciation and amortization
North America/HME	$	8,775	$	10,925	$	12,149
Institutional Products Group	1,980		7,656		8,310
Europe	7,183		11,111		12,123
Asia/Pacific	1,463		2,406		3,073
All Other (1)	29		173		275
Discontinued Operations	—		518		859
Consolidated	$	19,430	$	32,789	$	36,789

	2015			2014			2013
Net interest expense (income)
North America/HME	$	2,080		$	348		$	(1,869	)
Institutional Products Group	1,028			2,244			3,656
Europe	(444		)	(209		)	(53		)
Asia/Pacific	82			149			960
Consolidated	$	2,746		$	2,532		$	2,694
Earnings (loss) before income taxes from continuing operations
North America/HME	$	(32,866	)	$	(63,601	)	$	(50,506	)
Institutional Products Group	6,757			(10,961		)	1,418
Europe	38,644			48,088			40,468
Asia/Pacific	(3,521		)	(9,485		)	(13,258		)
All Other (1)	(20,754		)	(27,251		)	(21,581		)
Consolidated	$	(11,740	)	$	(63,210	)	$	(43,459	)
Assets
North America/HME (2)	$	215,500		$	218,877		$	250,239
Institutional Products Group (3)	38,730			42,692			45,933
Europe	557,740			638,896			693,790
Asia/Pacific	24,421			30,231			31,034
All Other (1)	1,752			15,647			37,142
Assets Held for Sale (4)	—			17,388			38,296
Consolidated	$	838,143		$	963,731		$	1,096,434
Long-lived assets
North America/HME (2)	$	49,319		$	44,727		$	60,309
Institutional Products Group (3)	30,278			33,487			38,342
Europe	391,533			459,957			506,329
Asia/Pacific	3,140			4,046			5,238
All Other (1)	1,752			15,527			36,830
Consolidated	$	476,022		$	557,744		$	647,048
Expenditures for assets
North America/HME	$	1,232		$	2,960		$	5,017
Institutional Products Group	212			1,232			3,308
Europe	5,058			6,708			4,809
Asia/Pacific	969			1,417			830
All Other (1)	51			—			50
Discontinued Operations	—			10			144
Consolidated	$	7,522		$	12,327		$	14,158

  ________________________

(1) Consists of un-allocated corporate SG&A costs and intercompany profits, which do not meet the quantitative criteria for determining reportable segments.

(2) The 2013 North America/HME assets and long-lived assets include a decrease of $167,000 due to an intangible asset impairment write-off.

Revenue from External Customers by Products and Services

Net sales by product, are as follows (in thousands):

	2015		2014		2013
North America/HME
Lifestyle Products	$	222,944	$	239,625	$	267,934
Mobility and Seating	117,232		115,776		134,995
Respiratory Therapy	130,349		149,063		178,065
Other(1)	3,671		3,403		8,246
	$	474,196	$	507,867	$	589,240
Institutional Products Group
Continuing Care	$	87,137	$	102,796	$	112,290
Europe
Lifestyle Products	$	275,932	$	322,370	$	303,225
Mobility and Seating	208,730		228,163		216,152
Respiratory Therapy	36,373		40,661		40,885
Other(1)	15,428		19,361		22,881
	$	536,463	$	610,555	$	583,143
Asia/Pacific
Mobility and Seating	$	25,655	$	28,174	$	26,737
Lifestyle Products	10,277		11,772		12,023
Continuing Care	3,115		3,956		2,785
Respiratory Therapy	807		1,286		1,290
Other(1)	4,688		3,757		6,997
	$	44,542	$	48,945	$	49,832
Total Consolidated	$	1,142,338	$	1,270,163	$	1,334,505

  ________________________

(1) Includes various services, including repair services, equipment rentals and external contracting.

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Supplemental Guarantor Information (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Statements

CONSOLIDATING CONDENSED STATEMENTS OF OPERATIONS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2015
Net sales	$	211,178		$	402,108		$	649,966		$	(120,914	)	$	1,142,338
Cost of products sold	187,272			305,592			457,634			(120,984		)	829,514
Gross Profit	23,906			96,516			192,332			70			312,824
Selling, general and administrative expenses	111,814			63,068			144,965			—			319,847
Charge related to restructuring activities	1,339			—			632			—			1,971
Income (loss) from equity investee	69,636			29,353			703			(99,692		)	—
Interest expense (income)—net	3,011			428			(693		)	—			2,746
Earnings (Loss) from Continuing Operations Before Income Taxes	(22,622		)	62,373			48,131			(99,622		)	(11,740		)
Income taxes	3,568			—			11,142			—			14,710
Net Earnings (Loss) from Continuing Operations	(26,190		)	62,373			36,989			(99,622		)	(26,450		)
Net Earnings from Discontinued Operations	—			260			—			—			260
Net Earnings (Loss)	(26,190		)	62,633			36,989			(99,622		)	(26,190		)
Other Comprehensive Income (Loss), net of Tax	(81,006		)	(15,037		)	(67,842		)	82,879			(81,006		)
Comprehensive Income (Loss)	$	(107,196	)	$	47,596		$	(30,853	)	$	(16,743	)	$	(107,196	)

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	)

CONSOLIDATING CONDENSED STATEMENTS OF OPERATIONS
	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
Year ended December 31, 2013
Net sales	$	241,871		$	460,960		$	720,978	$	(89,304	)	$	1,334,505
Cost of products sold	211,896			338,650			506,308		(89,775		)	967,079
Gross Profit	29,975			122,310			214,670		471			367,426
Selling, general and administrative expenses	123,377			93,731			177,530		2,694			397,332
Charge related to restructuring activities	6,356			79			2,901		—			9,336
Asset write-downs to intangibles and goodwill	—			1,250			273		—			1,523
Income (loss) from equity investee	133,350			29,644			286		(163,280		)	—
Interest (income) expense—net	(1,661		)	3,353			1,002		—			2,694
Earnings (Loss) from Continuing Operations Before Income Taxes	35,253			53,541			33,250		(165,503		)	(43,459		)
Income taxes (benefit)	2,202			(1,785		)	10,458		—			10,875
Net Earnings (Loss) from Continuing Operations	33,051			55,326			22,792		(165,503		)	(54,334		)
Net Earnings from Discontinued Operations	—			87,385			—		—			87,385
Net Earnings (Loss)	33,051			142,711			22,792		(165,503		)	33,051
Other Comprehensive Income (Loss), net of Tax	12,413			(2,309		)	17,797		(15,488		)	12,413
Comprehensive Income (Loss)	$	45,464		$	140,402		$	40,589	$	(180,991	)	$	45,464

CONSOLIDATING CONDENSED BALANCE SHEETS

	The company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
December 31, 2015
Assets
Current Assets
Cash and cash equivalents	$	14,047	$	314	$	45,694	$	—		$	60,055
Trade receivables, net	43,534		20,020		70,101		—			133,655
Installment receivables, net	—		361		784		—			1,145
Inventories, net	6,300		25,418		103,173		(2,084		)	132,807
Intercompany advances, net	8,392		109		49,022		(57,523		)	—
Other current assets	6,380		186		32,384		(4,491		)	34,459
Total Current Assets	78,653		46,408		301,158		(64,098		)	362,121
Investment in Subsidiaries	1,430,070		467,352		—		(1,897,422		)	—
Intercompany Advances, net	1,115,121		1,881,567		185,389		(3,182,077		)	—
Other Assets	3,095		727		837		—			4,659
Intangibles	123		388		30,489		—			31,000
Property and Equipment, net	32,382		10,170		36,131		—			78,683
Goodwill	—		12,142		349,538		—			361,680
Total Assets	$	2,659,444	$	2,418,754	$	903,542	$	(5,143,597	)	$	838,143
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	38,395	$	8,699	$	58,514	$	—		$	105,608
Accrued expenses	31,061		20,940		74,910		(4,491		)	122,420
Current taxes, payable and deferred	1,336		—		16,252		—			17,588
Intercompany advances, net	43,972		2,412		11,140		(57,524		)	—
Short-term debt and current maturities of long-term obligations	880		275		873		—			2,028
Total Current Liabilities	115,644		32,326		161,689		(62,015		)	247,644
Long-Term Debt	35,326		7,257		2,509		—			45,092
Other Long-Term Obligations	31,821		1,752		49,016		—			82,589
Intercompany Advances, net	2,013,835		1,116,834		51,407		(3,182,076		)	—
Total Shareholders’ Equity	462,818		1,260,585		638,921		(1,899,506		)	462,818
Total Liabilities and Shareholders’ Equity	$	2,659,444	$	2,418,754	$	903,542	$	(5,143,597	)	$	838,143

CONSOLIDATING CONDENSED BALANCE SHEETS

	The company (Parent)		Combined Guarantor Subsidiaries		Combined Non-Guarantor Subsidiaries		Eliminations			Total
	(in thousands)
December 31, 2014
Assets
Current Assets
Cash and cash equivalents	$	7,340	$	355	$	31,236	$	—		$	38,931
Trade receivables, net	47,030		21,979		85,198		—			154,207
Installment receivables, net	—		292		762		—			1,054
Inventories, net	25,021		25,784		107,139		(2,383		)	155,561
Deferred income taxes	—		—		2,048		—			2,048
Intercompany advances, net	10,007		976		84,816		(95,799		)	—
Other current assets	8,082		228		33,123		(4,635		)	36,798
Assets held for sale - current	3,982		13,406		—		—			17,388
Total Current Assets	101,462		63,020		344,322		(102,817		)	405,987
Investment in Subsidiaries	1,409,482		491,541		—		(1,901,023		)	—
Intercompany Advances, net	1,049,235		1,685,366		184,652		(2,919,253		)	—
Other Assets	16,955		657		1,441		—			19,053
Intangibles	286		393		37,334		—			38,013
Property and Equipment, net	29,632		7,209		42,818		—			79,659
Goodwill	—		11,968		409,051		—			421,019
Total Assets	$	2,607,052	$	2,260,154	$	1,019,618	$	(4,923,093	)	$	963,731
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	48,815	$	6,363	$	64,749	$	—		$	119,927
Accrued expenses	51,613		20,533		88,188		(4,635		)	155,699
Current taxes, payable and deferred	1,632		—		11,002		—			12,634
Intercompany advances, net	81,141		1,738		12,921		(95,800		)	—
Short-term debt and current maturities of long-term obligations	—		—		959		—			959
Liabilities held for sale - current	632		381		—		—			1,013
Total Current Liabilities	183,833		29,015		177,819		(100,435		)	290,232
Long-Term Debt	15,351		—		4,021		—			19,372
Other Long-Term Obligations	28,551		—		60,254		—			88,805
Intercompany Advances, net	1,813,995		1,051,170		54,088		(2,919,253		)	—
Total Shareholders’ Equity	565,322		1,179,969		723,436		(1,903,405		)	565,322
Total Liabilities and Shareholders’ Equity	$	2,607,052	$	2,260,154	$	1,019,618	$	(4,923,093	)	$	963,731

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2015
Net Cash Provided (Used) by Operating Activities	$	(26,382	)	$	2,125		$	18,774		$	105		$	(5,378	)
Investing Activities
Purchases of property and equipment	(464		)	(704		)	(6,354		)	—			(7,522		)
Proceeds from sale of property and equipment	23,040			52			25			—			23,117
Proceeds from sale of businesses	—			13,700			—			—			13,700
Decrease in other long-term assets	14,488			—			515			—			15,003
Other	—			5			178			(105		)	78
Net Cash Provided (Used) for Investing Activities	37,064			13,053			(5,636		)	(105		)	44,376
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	214,755			—			4,848			—			219,603
Payments on revolving lines of credit and long-term borrowings	(217,589		)	(15,219		)	—			—			(232,808		)
Proceeds from exercise of equity awards	2,402			—			—			—			2,402
Payment of financing costs	(1,954		)	—			—			—			(1,954		)
Payment of dividends	(1,589		)	—			—			—			(1,589		)
Net Cash Used (Provided) by Financing Activities	(3,975		)	(15,219		)	4,848			—			(14,346		)
Effect of exchange rate changes on cash	—			—			(3,528		)	—			(3,528		)
Increase (decrease) in cash and cash equivalents	6,707			(41		)	14,458			—			21,124
Cash and cash equivalents at beginning of year	7,340			355			31,236			—			38,931
Cash and cash equivalents at end of year	$	14,047		$	314		$	45,694		$	—		$	60,055

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2014
Net Cash (Used) Provided by Operating Activities	$	(34,135	)	$	(511	)	$	14,105		$	29,433		$	8,892
Investing Activities
Purchases of property and equipment	(2,256		)	(1,811		)	(8,260		)	—			(12,327		)
Proceeds from sale of property and equipment	—			—			2,521			—			2,521
Proceeds from sale of businesses	—			21,870			—			—			21,870
Decrease in other long-term assets	20,926			—			23			—			20,949
Other	44,420			(14,393		)	(25		)	(29,433		)	569
Net Cash Provided (Used) for Investing Activities	63,090			5,666			(5,741		)	(29,433		)	33,582
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	255,658			—			—			—			255,658
Payments on revolving lines of credit and long-term borrowings	(277,570		)	(5,113		)	(4,029		)	—			(286,712		)
Proceeds from exercise of equity awards	480			—			—			—			480
Payment of dividends	(1,584		)	—			—			—			(1,584		)
Net Used by Financing Activities	(23,016		)	(5,113		)	(4,029		)	—			(32,158		)
Effect of exchange rate changes on cash	—			—			(1,170		)	—			(1,170		)
Increase in cash and cash equivalents	5,939			42			3,165			—			9,146
Cash and cash equivalents at beginning of year	1,401			313			28,071			—			29,785
Cash and cash equivalents at end of year	$	7,340		$	355		$	31,236		$	—		$	38,931

CONSOLIDATING CONDENSED STATEMENTS OF CASH FLOWS

	The company (Parent)			Combined Guarantor Subsidiaries			Combined Non-Guarantor Subsidiaries			Eliminations			Total
	(in thousands)
Year ended December 31, 2013
Net Cash Provided (Used) by Operating Activities	$	11,566		$	(68,792	)	$	1,891		$	65,389		$	10,054
Investing Activities
Purchases of property and equipment	(3,601		)	(4,020		)	(6,537		)	—			(14,158		)
Proceeds from sale of property and equipment	4			13			868			—			885
Proceeds from sale of businesses	—			187,552			—			—			187,552
Decrease in other long-term assets	833			—			168			—			1,001
Other	181,195			(113,067		)	20			(68,083		)	65
Net Cash Provided (Used) for Investing Activities	178,431			70,478			(5,481		)	(68,083		)	175,345
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	323,187			—			29,268			—			352,455
Payments on revolving lines of credit and long-term borrowings	(516,488		)	(2,391		)	(26,995		)	—			(545,874		)
Proceeds from exercise of equity awards	512			—			—			—			512
Payment of dividends	(1,581		)	—			(2,694		)	2,694			(1,581		)
Net Cash (Used) Provided by Financing Activities	(194,370		)	(2,391		)	(421		)	2,694			(194,488		)
Effect of exchange rate changes on cash	—			—			83			—			83
Decrease in cash and cash equivalents	(4,373		)	(705		)	(3,928		)	—			(9,006		)
Cash and cash equivalents at beginning of year	5,774			1,018			31,999			—			38,791
Cash and cash equivalents at end of year	$	1,401		$	313		$	28,071		$	—		$	29,785

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Interim Financial Information (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

Interim Financial Information (unaudited)

	QUARTER ENDED (In thousands, except per share data)
	March 31,			June 30,			September 30,			December 31,
2015
Net sales	$	289,024		$	286,273		$	283,776		$	283,265
Gross profit	77,095			77,287			77,639			80,803
Earnings (loss) from continuing operations before income taxes	(5,039		)	(6,492		)	(790		)	581
Net loss from continuing operations	(7,514		)	(8,217		)	(7,790		)	(2,929		)
Net earnings from discontinued operations	260			—			—			—
Net loss	(7,254		)	(8,217		)	(7,790		)	(2,929		)
Net loss per share from continuing operations—basic	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Net earnings per share from discontinued operations—basic	0.01			—			—			—
Net loss per share—basic	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Loss per share from continuing operations—assuming dilution *	(0.23		)	(0.26		)	(0.24		)	(0.09		)
Net earnings per share from discontinued operations—assuming dilution	0.01			—			—			—
Net loss per share—assuming dilution *	(0.23		)	(0.26		)	(0.24		)	(0.09		)
	March 31,			June 30,			September 30,			December 31,
2014
Net sales	$	304,501		$	326,943		$	320,520		$	318,199
Gross profit	82,793			91,578			84,647			88,370
Loss from continuing operations before income taxes	(16,870		)	(11,580		)	(26,375		)	(8,385		)
Net loss from continuing operations	(18,895		)	(14,455		)	(28,725		)	(6,685		)
Net earnings (loss) from discontinued operations	919			842			13,629			(2,700		)
Net loss	(17,976		)	(13,613		)	(15,096		)	(9,385		)
Net loss per share from continuing operations—basic	(0.59		)	(0.45		)	(0.90		)	(0.21		)
Net earnings (loss) per share from discontinued operations—basic	0.03			0.03			0.43			(0.08		)
Net loss per share—basic	(0.56		)	(0.43		)	(0.47		)	(0.29		)
Net loss per share from continuing operations—assuming dilution *	(0.59		)	(0.45		)	(0.90		)	(0.21		)
Net earnings (loss) per share from discontinued operations—assuming dilution	0.03			0.03			0.42			(0.08		)
Net loss per share—assuming dilution *	(0.56		)	(0.43		)	(0.47		)	(0.29		)

* Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

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Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2015
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Building and building improvements | Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Building and building improvements | Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years

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Accounting Policies - Goodwill and Other Intangibles (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Impairment of intangible assets	$ 4,788,000	$ 8,253,000		$ 1,523,000
Institutional Products Group
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets			$ 13,041,000	1,356,000
Trademarks | Institutional Products Group
Indefinite-lived Intangible Assets [Line Items]
Impairment of indefinite-lived intangible assets				568,000
Customer lists | Institutional Products Group
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets			12,826,000	442,000
Customer lists | North America/HME
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets				167,000
Developed technology | Institutional Products Group
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets				223,000
Noncompete Agreements | Institutional Products Group
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets			$ 215,000
Trademarks with definite life | Institutional Products Group
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets				$ 123,000

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Accounting Policies - Product Liability Cost (Details)	12 Months Ended
	Dec. 31, 2015 USD ($)
Accounting Policies [Abstract]
Annual policy losses insured per occurence	$ 10,000,000
Annual policy losses, in aggregate	13,000,000
Annual policy losses, external insurance coverage, in aggregate	$ 75,000,000

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Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2015 USD ($) Facilities $ / shares	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Accounting Policies [Abstract]
Research and development expense	$ 18,677,000	$ 23,149,000	$ 24,075,000
Advertising expense	$ 9,203,000	$ 13,463,000	$ 15,026,000
Number of subsidiaries | Facilities	2
Unremitted earnings of foreign subsidiaries	$ 24,100,000
Convertible Subordinated Debt
Debt Conversion [Line Items]
Initial conversion price | $ / shares	$ 24.79

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Operations Held for Sale (Details) - USD ($)		3 Months Ended	12 Months Ended
	Jul. 02, 2015	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Liabilities			$ 0	$ 1,013,000
Rentals Businesses [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Trade receivables, net	$ 5,834,000			6,207,000
Proceeds from sale of business	15,500,000
Proceeds from sale of Business, net	13,700,000
Gain on sale of businesses (pre-tax)		$ 24,000
Operations Held For Sale, Costs Incurred During the Period			1,792,000
Operations Held for Sale, Payment of Sale Costs			$ 1,244,000
Inventories, net	412,000			315,000
Other current assets	212,000			221,000
Property and equipment, net	4,126,000			5,896,000
Goodwill	4,518,000			4,692,000
Other Intangibles	40,000			57,000
Disposal Group, Including Discontinued Operation, Assets	15,142,000			17,388,000
Accounts payable	410,000			225,000
Accrued expenses	1,056,000			788,000
Disposal Group, Including Discontinued Operation, Liabilities	$ 1,466,000			$ 1,013,000

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Discontinued Operations - Narrative (Details) - USD ($)				3 Months Ended		12 Months Ended
	Aug. 29, 2014	Aug. 06, 2013	Jan. 18, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Liabilities						$ 0	$ 1,013,000
Net earnings from discontinued operations						0	1,596,000	$ 6,442,000
Total expenses related to discontinued operations						8,801,000
Payments for expenses related to discontinued operations						$ 8,405,000
Invacare Supply Group
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses			$ 150,800,000
Gain on sale of businesses (pre-tax)								59,402,000
Net sales of discontinued operations								18,498,000
Net earnings from discontinued operations								402,000
Champion Manufacturing, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses		$ 45,000,000
Gain on sale of businesses (pre-tax)					$ 22,761,000
Net sales of discontinued operations								15,857,000
Net earnings from discontinued operations								3,156,000
Interest expense allocated to discontinued operations								449,000
Goodwill allocated to discontinued operations		$ 16,205,000
Altimate Medical, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Liabilities	$ 741,000
Trade receivables, net	2,019,000
Property and equipment, net	176,000
Proceeds from divestiture of businesses	23,000,000
Gain on sale of businesses (pre-tax)				$ 17,069,000
Net sales of discontinued operations							11,778,000	17,854,000
Net earnings from discontinued operations							2,796,000	5,118,000
Interest expense allocated to discontinued operations							$ 202,000	$ 323,000
Inventories, net	1,954,000
Disposal Group, Including Discontinued Operation, Assets	$ 5,442,000

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Discontinued Operations - Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Aug. 29, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Liabilities sold	$ 0	$ 1,013
Altimate Medical, Inc.
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Trade receivables, net			$ 2,019
Inventories, net			1,954
Other current assets			246
Property and equipment, net			176
Other Intangibles			1,047
Assets sold			5,442
Accounts payable			425
Accrued expenses			316
Liabilities sold			$ 741

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Receivables - Narrative (Details)	12 Months Ended
	Dec. 31, 2015 USD ($) payment	Dec. 31, 2014 USD ($)
Receivables [Abstract]
Allowance for doubtful accounts receivable	$ 10,487,000	$ 11,970,000
Number of missed payments before delinquent | payment	3
Typical financing period	12 months
Credit amount requiring additional analysis	$ 250,000
Average period of adjudication	18 months
Installment receivable purchased from DLL	$ 936,000	$ 2,123,000

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Receivables - Installment Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Installment receivables, current	$ 2,309	$ 2,692
Installment receivables, long-term	2,318	5,117
Total Installment Receivables	4,627	7,809
Unearned interest, current	(42)	(46)
Unearned interest, long-term	0	0
Total Unearned Interest	42	46
Installment receivables net of unearned interest, current	2,267	2,646
Installment receivables net of unearned interest, long-term	2,318	5,117
Total installment receivables net of unearned interest	4,585	7,763
Allowance for doubtful accounts, current	(1,122)	(1,592)
Allowance for doubtful accounts, long-term	(1,670)	(4,260)
Allowance for doubtful accounts	(2,792)	(5,852)	$ (6,039)
Installment receivables, net	1,145	1,054
Installment receivables, long-term	648	857
Total installment receivables, net	$ 1,793	$ 1,911

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Receivables - Rollforward of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Allowance for Doubtful Accounts [Roll Forward]
Balance as of January 1	$ 5,852	$ 6,039
Current period (benefit) provision	(332)	796
Direct write-offs charged against the allowance	(2,728)	(983)
Balance as of December 31	$ 2,792	$ 5,852

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Receivables - Installment Receivables by Class (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Total Installment Receivables
Non-Impaired installment receivables with no related allowance recorded	$ 946	$ 1,008
Impaired installment receivables with a related allowance recorded	3,681	6,801
Total installment receivables	4,627	7,809
Unpaid Principal Balance
Non-Impaired installment receivables with no related allowance recorded	904	962
Impaired installment receivables with a related allowance recorded	3,681	6,801
Total installment receivables	4,585	7,763
Related Allowance for Doubtful Accounts
Impaired installment receivables with a related allowance recorded	2,792	5,852
Interest Income Recognized
Non-Impaired installment receivables with no related allowance recorded	52	82
Impaired installment receivables with a related allowance recorded	0	0
Total installment receivables	52	82
U.S.
Total Installment Receivables
Impaired installment receivables with a related allowance recorded	3,618	6,735
Unpaid Principal Balance
Impaired installment receivables with a related allowance recorded	3,618	6,735
Related Allowance for Doubtful Accounts
Impaired installment receivables with a related allowance recorded	2,729	5,786
Interest Income Recognized
Impaired installment receivables with a related allowance recorded	0	0
CANADA
Total Installment Receivables
Non-Impaired installment receivables with no related allowance recorded	946	1,008
Impaired installment receivables with a related allowance recorded	63	66
Total installment receivables	1,009	1,074
Unpaid Principal Balance
Non-Impaired installment receivables with no related allowance recorded	904	962
Impaired installment receivables with a related allowance recorded	63	66
Total installment receivables	967	1,028
Related Allowance for Doubtful Accounts
Impaired installment receivables with a related allowance recorded	63	66
Interest Income Recognized
Non-Impaired installment receivables with no related allowance recorded	52	82
Impaired installment receivables with a related allowance recorded	0	0
Total installment receivables	$ 52	$ 82

XML

Receivables - Aging of Installment Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 908	$ 976
0-30 days past due	16	15
31-60 days past due	12	2
61-90 days past due	1	0
90 days past due	3,690	6,816
Total	4,627	7,809
U.S.
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
0-30 days past due	0	0
31-60 days past due	0	0
61-90 days past due	0	0
90 days past due	3,618	6,735
Total	3,618	6,735
CANADA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	908	976
0-30 days past due	16	15
31-60 days past due	12	2
61-90 days past due	1	0
90 days past due	72	81
Total	$ 1,009	$ 1,074

XML

Inventories - (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Finished goods	$ 67,207	$ 85,828
Raw materials	54,005	57,509
Work in process	11,595	12,224
Inventory, Net	$ 132,807	$ 155,561

XML

Other Current Assets - Components of Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Value added tax receivables	$ 18,031	$ 21,273
Recoverable income taxes	367	261
Derivatives (foreign currency forward contracts)	4,143	520
Prepaid insurance	2,538	2,713
Prepaid and other current assets	9,380	12,031
Other current assets	$ 34,459	$ 36,798

XML

Other Long-Term Assets - (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Cash surrender value of life insurance policies	$ 1,674	$ 15,765
Deferred financing fees	1,088	408
Investments	160	249
Long-term installment receivables	648	857
Long-term deferred taxes	908	613
Other	181	1,161
Other Assets	$ 4,659	$ 19,053

XML

Other Long-Term Assets - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Proceeds from sale of life insurance policies	$ 11,902,000	$ 21,338,000

XML

Property And Equipment - (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Asset Disposals, Pretax	$ 4,031,000
Property and equipment, gross	395,548,000	$ 425,760,000
Less allowance for depreciation	(316,865,000)	(346,101,000)
Property and equipment, net	78,683,000	79,659,000
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	299,721,000	318,286,000
Land, buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	73,830,000	81,219,000
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,031,000	11,738,000
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 11,966,000	$ 14,517,000

XML

Goodwill - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill [Roll Forward]
Beginning Balance	$ 421,019	$ 457,534
Foreign currency translation adjustments	(59,339)	(36,515)
Ending Balance	$ 361,680	$ 421,019	$ 457,534
Maturity of corporate debt with similar credit risk	20 years
US treasury bond maturity	20 years
Discounted cash flow, discount rate	9.41%	9.89%	10.00%
Institutional Products Group
Goodwill [Roll Forward]
Beginning Balance	$ 29,919	$ 31,615
Foreign currency translation adjustments	(2,763)	(1,696)
Ending Balance	$ 27,156	29,919	$ 31,615
Discounted cash flow sensitivity analysis discount rate rncrease	1.00%
Europe
Goodwill [Roll Forward]
Beginning Balance	$ 391,100	425,919
Foreign currency translation adjustments	(56,576)	(34,819)
Ending Balance	$ 334,524	$ 391,100	$ 425,919
Discounted cash flow sensitivity analysis discount rate rncrease	1.00%

XML

Intangibles - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets			$ 1,907,000	$ 20,358,000	$ 10,567,000
Impairment of intangible assets	$ 4,788,000	$ 8,253,000			1,523,000
Institutional Products Group
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets				13,041,000	1,356,000
Institutional Products Group | Customer lists
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets				12,826,000	442,000
Institutional Products Group | Noncompete Agreements
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets				215,000
Institutional Products Group | Trademarks with definite life
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets					123,000
Institutional Products Group | Developed technology
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets					223,000
North America/HME | Customer lists
Finite-Lived Intangible Assets [Line Items]
Impairment of finite-lived intangible assets					167,000
Trademarks
Finite-Lived Intangible Assets [Line Items]
Historical Cost	$ 28,314,000		$ 24,524,000	$ 28,314,000
Trademarks | Institutional Products Group
Finite-Lived Intangible Assets [Line Items]
Impairment of indefinite-lived intangible assets					568,000
Impairment indefinite-lived intangible assets, net of tax					$ 496,000
Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets			1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets			10 years
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets			5 years

XML

Intangibles - Finite and Indefinite Lived Intangibles (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	$ 90,005,000	$ 125,244,000
Accumulated Amortization	59,005,000	87,231,000
Customer lists
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	49,858,000	78,693,000
Accumulated Amortization	45,019,000	71,343,000
License agreements
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	1,098,000	1,290,000
Accumulated Amortization	1,098,000	1,290,000
Developed technology
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	7,405,000	8,297,000
Accumulated Amortization	5,921,000	6,340,000
Patents
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	5,959,000	6,102,000
Accumulated Amortization	5,843,000	5,804,000
Other
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	1,161,000	2,548,000
Accumulated Amortization	1,124,000	2,454,000
Trademarks
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	$ 24,524,000	$ 28,314,000

XML

Intangibles - Finite-Lived Intangible Asset Future Amortization Expense (Details)	Dec. 31, 2015 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Future amortization expense, 2016	$ 1,626,000
Future amortization expense, 2017	1,549,000
Future amortization expense, 2018	1,530,000
Future amortization expense, 2019	992,000
Future amortization expense, 2020	$ 184,000

XML

Accrued Expenses - Components of Current Liabilities (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]
Payments for Deferred Compensation, Cash Based Arrangement	$ 21,126,000
Salaries and wages	41,305,000	$ 40,850,000
Taxes other than income taxes, primarily Value Added Taxes	21,424,000	24,743,000
Warranty cost	22,820,000	30,738,000	$ 27,393,000
Supplemental Executive Retirement Plan (SERP)	1,279,000	21,517,000
Freight	6,153,000	6,202,000
Professional	5,774,000	6,613,000
Product liability, current portion	3,127,000	4,334,000
Rebates	1,791,000	1,722,000
Insurance	695,000	1,266,000
Interest	872,000	1,068,000
Derivatives (foreign currency forward exchange contracts)	2,014,000	2,526,000
Severance	2,477,000	4,209,000
Other items, principally trade accruals	12,689,000	9,911,000
Accrued expenses	122,420,000	$ 155,699,000
Payments for Deferred Compensation Arrangement	$ 3,525,000

XML

Accrued Expenses - Warranty Schedule (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Product Liability Contingency [Line Items]
Loss Contingency Accrual, Period Increase (Decrease)	$ (2,325,000)	$ 11,493,000	$ 7,264,000
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance as of January 1	30,738,000	27,393,000
Warranties provided during the period	11,561,000	21,472,000
Settlements made during the period	(17,817,000)	(22,752,000)
Changes in liability for pre-existing warranties during the period, including expirations	(1,662,000)	4,625,000
Balance as of December 31	22,820,000	30,738,000	27,393,000
Europe
Product Liability Contingency [Line Items]
Additional warranty expense related to recall		3,395,000
North America/HME
Product Liability Contingency [Line Items]
Additional warranty expense related to recall		3,164,000
Loss Contingency Accrual, Period Increase (Decrease)			2,625,000
North America [Member]
Product Liability Contingency [Line Items]
Loss Contingency Accrual, Period Increase (Decrease)			$ 4,639,000
Field Action Under Review
Product Liability Contingency [Line Items]
Additional warranty expense related to recall	(2,000,000)	6,559,000
Warranty Related Sieve Bed Recall
Product Liability Contingency [Line Items]
Additional warranty expense related to recall	(250,000)	2,057,000
Warranty Related Recall
Product Liability Contingency [Line Items]
Additional warranty expense related to recall		2,877,000
Warranty Related Recall | North America/HME
Product Liability Contingency [Line Items]
Additional warranty expense related to recall	$ (75,000)	1,612,000
Warranty Related Recall | North America [Member]
Product Liability Contingency [Line Items]
Additional warranty expense related to recall		$ 1,265,000

XML

Long-Term Debt - Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 47,120	$ 20,331
Less current maturities of long-term debt	(2,028)	(959)
Long-term debt of current maturities	45,092	19,372
Convertible Subordinated Debt | Convertible senior subordinated debentures at 4.125%, due in February 2027
Debt Instrument [Line Items]
Long-term debt	12,147	11,351
Other notes and lease obligations
Debt Instrument [Line Items]
Long-term debt	34,973	4,980
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 4,000

XML

Long-Term Debt - Convertible Debt (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 47,120,000	$ 20,331,000
Convertible senior subordinated debentures at 4.125%, due in February 2027 | Convertible Subordinated Debt
Debt Disclosure [Abstract]
Initial conversion price	$ 24.79
Debt Instrument [Line Items]
Interest rate (as a percent)	4.125%
Carrying amount of equity component	$ 25,381,000	25,381,000
Principal amount of liability component	13,350,000	13,350,000
Unamortized discount	(1,203,000)	(1,999,000)
Long-term debt	$ 12,147,000	$ 11,351,000

XML

Long-Term Debt - Narrative (Details)		3 Months Ended		12 Months Ended
	Jan. 16, 2015 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) shares d $ / shares	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Feb. 16, 2016 USD ($)	Apr. 22, 2015 USD ($)	Feb. 17, 2007 USD ($)
Debt Instrument [Line Items]
Write off of deferred debt issuance cost		$ 668,000	$ 1,070,000
Weighted average interest rate				3.83%	2.87%
Interest Paid				$ 2,753,000	$ 3,302,000	$ 4,046,000
Long-term Debt, Fiscal Year Maturity [Abstract]
Year One				2,028,000
Year Two				2,169,000
Year Three				1,784,000
Year Four				1,632,000
Year Five				1,703,000
Convertible Subordinated Debt | Convertible senior subordinated debentures at 4.125%, due in February 2027
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount				1,203,000	1,999,000
Write off of deferred debt issuance cost				$ 668,000	1,070,000
Interest rate (as a percent)				4.125%
Principal amount of liability component				$ 13,350,000	13,350,000
Principal Amount									$ 135,000,000
Principal in excess of if-converted value				3,379,000
Conversion par amount				$ 1,000
Initial conversion price | $ / shares				$ 24.79
Conversion price premium				30.00%
Convertible debt, stock price trigger | $ / shares				$ 32.23
Conversion ratio				40.3323
Trading days common stock above conversion price | d				20
Period of consecutive trading days preceding the date on which the notice of conversion is given				30 days
Number of equity instruments upon conversion of convertible debt | shares				539,000
Effective Interest Rate				11.50%
Interest Expense				$ 796,000	710,000	633,000
Interest Paid				551,000	551,000	$ 551,000
Letters of Credit
Debt Instrument [Line Items]
Letters of credit outstanding				3,230,000	$ 7,063,000
Letters of Credit | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Borrowing capacity				5,000,000
Letters of Credit | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Borrowing capacity	$ 25,000,000
Swing Line Loans [Domain] | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Borrowing capacity				2,000,000
Amount Available to Invacare Limited and Invacare Poirier SAS [Domain] | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Borrowing capacity				15,000,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Debt issuance cost				1,954,000
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Borrowing capacity				$ 30,000,000
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Trade Receivables, Europe, Percent				85.00%
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Availability Reserve, Minimum				$ 3,000,000
Line of Credit Facility, Covenant Feature, Dominion Trigger				$ 3,375,000
Line of Credit Facility, Covenant Feature, Dominion Trigger Maximum Percentage				12.50%
Line of Credit, Covenant Compliance, Consecutive Business Days for Undrawn Balance	5 years			5 days
Line of Credit, Covenant Compliance, Interruption of Manufacturing Facilities Period				10 days
Line of Credit Facility, Current Borrowing Capacity				$ 21,528,000
Line of Credit Facility, Remaining Borrowing Capacity				$ 15,153,000
Line of Credit, Covenant Compliance, Required Undrawn Balance, Minimum, Percent				11.25%
Line of Credit, Covenant Compliance, Required Undrawn Balance, Amount				$ 3,000,000
Remaining borrowing capacity				10,000,000
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Additional Long-Lived Asset Amount	$ 2,485,000
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Trade Receivables, Foreign, Percent	85.00%
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Inventories, Foreign, Percent	70.00%
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Inventories, Foreign, Liquidation Value, Percent	85.00%
Borrowing capacity	$ 100,000,000
Line of Credit Facility, Additional Borrowing Capacity	$ 25,000,000
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Trade Receivables, Domestic, Percent	85.00%
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Inventories, Domestic, Percent	70.00%
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Inventories, Liquidation Value, Percent	85.00%
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Inventories, Liquidation Value, Amount	$ 4,000,000
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Property, Plant and Equipment, Liquidation Value, Percent	85.00%
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Availability Reserve, Minimum	$ 10,000,000
Line of Credit Facility, Covenant Feature, Dominion Trigger				11,250,000
Line of Credit Facility, Covenant Feature, Dominion Trigger for Five Consecutive Days				12,500,000
Line of Credit, Covenant Compliance, Consecutive Business Days for Undrawn Balance	5 days
Line of Credit, Covenant Compliance, Interruption of Manufacturing Facilities Period	10 days
Line of Credit, Covenant Compliance, Single Acquisition Limit Maximum								$ 500,000
Line of Credit Facility, Current Borrowing Capacity				$ 38,230,000
Line of Credit, Covenant Compliance, Required Undrawn Balance, Minimum, Percent	11.25%
Line of Credit, Covenant Compliance, Required Undrawn Balance, Amount	$ 10,000,000
Base Rate | Revolving Credit Facility | Line of Credit | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate				0.25%
Maximum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.375%
Maximum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.375%
Maximum | Adjusted LIBOR | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Basis spread on variable rate				3.00%
Maximum | Adjusted LIBOR | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Maximum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Basis spread on variable rate				3.00%
Maximum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Minimum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.25%
Minimum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.25%
Minimum | Adjusted LIBOR | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Basis spread on variable rate				2.50%
Minimum | Adjusted LIBOR | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
Minimum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement) [Member] [Domain]
Debt Instrument [Line Items]
Basis spread on variable rate				2.50%
Minimum | Base Rate | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Subsequent Event [Member] | Convertible Subordinated Debt | Convertible senior subordinated debentures at 4.125%, due in February 2027
Debt Instrument [Line Items]
Interest rate (as a percent)							4.125%
Subsequent Event [Member] | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Debt Instrument [Line Items]
Borrowing capacity							$ 100,000,000
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Availability Reserve, Minimum							$ 5,000,000
Line of Credit, Covenant Compliance, Required Undrawn Balance, Minimum, Percent							20.00%
Line of Credit, Covenant Compliance, Required Undrawn Balance, Amount							$ 5,000,000

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Other Long-Term Obligations - (Details) - USD ($)	Dec. 31, 2015	Apr. 23, 2015	Dec. 31, 2014
Other Liabilities Disclosure [Abstract]
Supplemental Executive Retirement Plan liability	$ 4,930,000		$ 6,067,000
Product liability	14,582,000		18,860,000
Deferred income taxes	32,115,000		30,423,000
Sale Leaseback Transaction, Deferred Gain, Gross	6,978,000	$ 7,414,000	0
Deferred compensation	4,167,000		5,667,000
Uncertain tax obligation including interest	4,467,000		15,160,000
Other	15,350,000		12,628,000
Total long-term obligations	$ 82,589,000		$ 88,805,000

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Other Long-Term Obligations - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Apr. 23, 2015	Dec. 31, 2014
Income Tax Examination [Line Items]
Sale Leaseback Transaction, Deferred Gain, Gross	$ 6,978,000	$ 7,414,000	$ 0
Payments for Deferred Compensation Arrangement	3,525,000
Sale Leaseback Transaction, Current Period Gain Recognized	$ 171,000

XML

Leases and Commitments - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Leased Assets [Line Items]
Lease expense	$ 20,360,000	$ 23,568,000	$ 24,726,000
Buildings and equipment capitalized under capital leases	42,640,000	12,123,000
Accumulated amortization in connection with capital leases	$ 7,667,000	$ 7,143,000
Minimum
Operating Leased Assets [Line Items]
Lease term	1 year
Maximum
Operating Leased Assets [Line Items]
Lease term	20 years

XML

Leases and Commitments - Future Minimum Lease Commitments (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Capital Leases
Capital Leases - 2016	$ 3,375
Capital Leases - 2017	3,375
Capital Leases - 2018	2,848
Capital Leases - 2019	2,671
Capital Leases - 2020	2,671
Capital Leases - Thereafter	32,872
Total future minimum lease payments	47,812
Amounts representing interest	(12,839)
Present value of minimum lease payments	34,973
Operating Leases
Operating Leases - 2016	15,067
Operating Leases - 2017	8,804
Operating Leases - 2018	5,005
Operating Leases - 2019	2,378
Operating Leases - 2020	1,101
Operating Leases - Thereafter	268
Total future minimum lease payments	$ 32,623

XML

Leases and Commitments - Sale Leaseback Transactions (Details) - USD ($)		12 Months Ended
	Apr. 23, 2015	Dec. 31, 2015	Dec. 31, 2014
Sale Leaseback Transaction [Line Items]
Sale Leaseback Transaction, Net Proceeds, Investing Activities		$ 23,000,000
Sale Leaseback Transaction, Annual Rental Payments		$ 2,275,000
Sale Leaseback Transaction, Lease Term		20 years
Sale Leaseback Transaction, Lease Terms		Each of the four lease agreements contains three 10-year renewals with the rent for each option term based on the greater of the then-current fair market rent for each property or the then- current rate and increasing annually by the applicable CPI. Under the terms of the lease agreements, the company is responsible for all taxes, insurance and utilities. The company is permitted to sublet the properties; however, the properties are currently being utilized exclusively by the company and there is no current subletting. The company is required to adequately maintain each of the properties and any leasehold improvements will be amortized over the lesser of the lives of the improvements or the remaining lease lives.
Sale Leaseback Transaction, Deferred Gain, Gross	$ 7,414,000	$ 6,978,000	$ 0
Sale Leaseback Transaction, Immediate Loss Recognized	257,000
Capital Lease Obligations	$ 32,339,000
Buildings and equipment capitalized under capital leases		$ 42,640,000	$ 12,123,000

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Retirement and Benefit Plans - (Details)	12 Months Ended
	Dec. 31, 2015 USD ($) plan Participants Times yr	Dec. 31, 2014 USD ($) yr	Dec. 31, 2013 USD ($)
Compensation and Retirement Disclosure [Abstract]
Company matching employee contributions	66.70%
Maximum percentage of matching contribution for total compensation	3.00%
Discretionary contributions, percentage of qualified wages	1.00%
Contribution expense	$ 2,573,000	$ 2,698,000	$ 3,126,000
Defined Benefit Plan Disclosure [Line Items]
Number of participants unaffected by plan conversion | Participants	3
Death benefit only plan, benefit payment as multiplier of final earnings | Times	1
Net periodic benefit (income) costs	$ 226,000
Death benefit only plan, benefit payment as multiplier of final earnings, current employee | Times	3
Proceeds from life insurance policies	$ 11,902,000	21,338,000
Accumulated other comprehensive income (loss)	9,757,000	7,601,000
Accumulated other comprehensive income, net change	$ 2,156,000
Supplemental Executive Retirement Plan
Defined Benefit Plan Disclosure [Line Items]
Interest credited for active participants (as a percent)	0.00%
Accumulated benefit obligation	$ 6,209,000	$ 27,548,000
Assumption, future salary increase rate	4.00%
Assumed discount rate	4.34%	3.95%
Retirement age | yr	67	67
Projected benefit obligation	$ 6,209,000	$ 27,548,000
Interest (benefit) cost	(42,000)	(377,000)	(236,000)
Net periodic benefit (income) costs	142,000	539,000	(14,000)
Benefit payments	21,517,000	394,000	398,000
Death Benefit Only Plan
Defined Benefit Plan Disclosure [Line Items]
Net periodic benefit (income) costs	103,000	808,000	(259,000)
Service cost and accrual adjustments	$ 28,000	692,000	364,000
Switzerland | Foreign Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Number of plans | plan	2
Netherlands | Foreign Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Retirement age | yr	65
Europe | Foreign Postretirement Benefit Plan
Defined Benefit Plan Disclosure [Line Items]
Amounts recognized in other comprehensive income (loss)	$ 19,000	$ 220,000	$ 205,000

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Equity Compensation - Narrative (Details)	12 Months Ended
	Dec. 31, 2015 USD ($) votes $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	May. 16, 2013 shares	Jul. 19, 2005 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock par value (in dollars per share) | $ / shares	$ 0.25
Stock option related treasury stock, shares acquired | shares	7,000	29,000	23,000
Right to purchase series A participating serial preferred purchase price per share | $ / shares					$ 180.00
Percentage of voting power to be acquired at which point rights become exercisable	30.00%
Percentage of the current market price per common share to be used as denominator of rights used to acquire common stock	50.00%
Number of securities called by each warrant or right | $ / shares	$ 0.001
Number of days following a public announcement of beneficial ownership acquisition	10 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase of treasury stock	$ 134,000	$ 471,000	$ 532,000
Expiration period	10 years
Unrecognized compensation expense, period for recognition	2 years
Award vesting percentage	25.00%
Weighted-average fair value of options granted | $ / shares		$ 6.23	$ 5.33
Weighted average remaining contractual term of options outstanding	4 years 3 months	5 years	5 years 9 months
Weighted-average remaining contractual term of options exercisable	4 years
Intrinsic value of exercises in period	$ 1,107,000	$ 101,000	$ 158,000
Intrinsic value of options outstanding	2,562,000
Intrinsic value of options exercisable	1,636,000
Cash received from exercise of stock options	2,413,000	480,000	512,000
Fair value of awards vested in period	$ 1,867,000	$ 3,436,000	$ 3,778,000
Award vesting period	4 years
Restricted stock and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Decrease of shares available for grant due to award activity | shares	1,110,740
Award vesting period	3 years
Performance shares and performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Decrease of shares available for grant due to award activity | shares	681,058
Award requisite service period	3 years
Performance achievement level, lower range	0.00%
Performance achievement level, upper range	150.00%
Performance achievement level, target range	100.00%
2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized | shares				4,460,337
Weighted Average | Performance shares and performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, period for recognition	3 years
Class B Common Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Ratio of votes per share of Class B common stock to common stock | votes	10
Class B common shares dividend rate lower than common shares	10.00%
Cliff Vesting | Restricted stock and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years

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Equity Compensation - Share-based Compensation Expense (Details) - Selling, general and administrative expense - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 4,013	$ 5,626	$ 5,957
Non-qualified stock options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	1,228	3,356	3,926
Restricted stock and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	2,785	2,270	2,031
Performance shares and performance share units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 0	$ 0	$ 0

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Equity Compensation - Unrecognized Compensation Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 10,535	$ 7,061	$ 11,975
Non-qualified stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	1,059	2,600	8,270
Restricted stock and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	9,476	4,461	3,705
Performance shares and performance share units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 0	$ 0	$ 0

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Equity Compensation - Options Activity (Details) - $ / shares		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at beginning of period (in shares)		3,600,132	4,533,782	4,664,634
Granted (in shares)		0	8,977	756,700
Excercised (in shares)		(172,218)	(33,810)	(30,166)
Canceled (in shares)		(485,131)	(908,817)	(857,386)
Options outstanding at end of period (in shares)		2,942,783	3,600,132	4,533,782
Weighted Average Exercise Price
Options outstanding at beginning of period - Weighted Average Exercise Price (in dollars per share)		$ 22.74	$ 23.86	$ 26.21
Granted - Weighted Average Exercise Price (in dollars per share)		0.00	16.71	14.47
Excercised - Weighted Average Exercise Price (in dollars per share)		13.95	14.16	16.94
Canceled - Weighted Average Exercise Price (in dollars per share)		34.98	28.57	28.63
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share)		$ 21.22	$ 22.74	$ 23.86
Options exercisable at end of period (in shares)		2,656,983	2,954,082	2,985,175
Stock Options
Weighted Average Exercise Price
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share)		$ 21.22
Exercise price range, lower limit (in dollars per shares)		13.37	$ 13.37	$ 13.35
Exercise price range, upper limit (in dollars per shares)		$ 33.36	$ 47.80	$ 47.80
Options available for grant at end of period (in shares)	[1]	2,659,562	3,654,426	4,460,337

[1] *Shares available for grant as of December 31, 2015 reduced by net restricted stock / unit and performance share / unit award activity of 1,110,740 shares and 681,058 shares, respectively.

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Equity Compensation - Stock Options Outstanding by Exercise Price (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 21.22	$ 22.74	$ 23.86	$ 26.21
Stock Options
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollars per shares)	13.37	13.37	13.35
Exercise price range, upper limit (in dollars per shares)	$ 33.36	$ 47.80	$ 47.80
Options Outstanding - Number Outstanding at end of period (in shares)	2,942,783
Options Outstanding - Weighted Average Remaining Contractual Life	4 years 3 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 21.22
Options Exercisable - Number Exercisable at end of period (in shares)		2,656,983
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 21.98
Stock Options | $ 13.37 – $20.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollars per shares)	13.37
Exercise price range, upper limit (in dollars per shares)	$ 20
Options Outstanding - Number Outstanding at end of period (in shares)	778,159
Options Outstanding - Weighted Average Remaining Contractual Life	6 years 8 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 14.12
Options Exercisable - Number Exercisable at end of period (in shares)		493,671
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 14.11
Stock Options | $ 20.01 – $25.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollars per shares)	20.01
Exercise price range, upper limit (in dollars per shares)	$ 25.00
Options Outstanding - Number Outstanding at end of period (in shares)	1,353,578
Options Outstanding - Weighted Average Remaining Contractual Life	3 years 3 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 22.59
Options Exercisable - Number Exercisable at end of period (in shares)		1,353,578
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 22.59
Stock Options | $ 25.01 – $30.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollars per shares)	25.01
Exercise price range, upper limit (in dollars per shares)	$ 30
Options Outstanding - Number Outstanding at end of period (in shares)	783,738
Options Outstanding - Weighted Average Remaining Contractual Life	3 years 8 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 25.55
Options Exercisable - Number Exercisable at end of period (in shares)		783,738
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 25.55
Stock Options | $ 30.01 – $33.36
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollars per shares)	30.01
Exercise price range, upper limit (in dollars per shares)	$ 33.36
Options Outstanding - Number Outstanding at end of period (in shares)	27,308
Options Outstanding - Weighted Average Remaining Contractual Life	1 year
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 31.74
Options Exercisable - Number Exercisable at end of period (in shares)		25,996
Options Exercisable - Weighted Average Exercise Price (in dollars per share)		$ 31.73

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Equity Compensation - Assumptions (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividend yield	0.00%	0.40%
Expected stock price volatility	36.80%	38.20%
Risk free interest rate	1.76%	0.82%
Expected life in years	6 years 1 month 6 days	6 years 1 month 6 days
Forfeiture percentage	13.00%	9.20%

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Equity Compensation - Restricted Stock Activity (Details) - Restricted stock and restricted stock units - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Stock / Units unvested at beginning of period (in shares)	312,423	264,878	260,548
Granted (in shares)	480,839	218,276	114,700
Vested (in shares)	(56,976)	(93,140)	(97,445)
Canceled (in shares)	(94,781)	(77,591)	(12,925)
Stock / Units unvested at end of period (in shares)	641,505	312,423	264,878
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Stock / Units unvested at beginning of period - Weighted Average Fair Value (in dollars per share)	$ 17.91	$ 16.69	$ 19.15
Granted - Weighted Average Fair Value (in dollars per share)	19.09	19.36	14.49
Vested - Weighted Average Fair Value (in dollars per share)	16.47	17.62	20.33
Canceled - Weighted Average Fair Value (in dollars per share)	18.11	17.58	19.23
Stock / Units unvested at end of period - Weighted Average Fair Value (in dollars per share)	$ 18.89	$ 17.91	$ 16.69

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Equity Compensation - Performance Share Activity (Details) - Performance shares and performance share units - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Stock / Units unvested at beginning of period (in shares)	121,644	0
Granted (in shares)	114,257	152,800
Vested (in shares)	0	0
Canceled (in shares)	(37,500)	(31,156)
Stock / Units unvested at end of period (in shares)	198,401	121,644
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Stock / Units unvested at beginning of period - Weighted Average Fair Value (in dollars per share)	$ 20.05	$ 0.00
Granted - Weighted Average Fair Value (in dollars per share)	18.95	20.05
Vested - Weighted Average Fair Value (in dollars per share)	0	0.00
Canceled - Weighted Average Fair Value (in dollars per share)	19.62	20.05
Stock / Units unvested at end of period - Weighted Average Fair Value (in dollars per share)	$ 19.50	$ 20.05

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Accumulated Other Comprehensive Income (Loss) by Component - Changes in Accumulated Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 71,619	$ 125,156
OCI before reclassifications	(80,151)	(54,169)
Amount reclassified from accumulated OCI	(855)	632
Other Comprehensive Income (Loss)	(81,006)	(53,537)	$ 12,413
Ending balance	(9,387)	71,619	125,156
Foreign Currency
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	86,236	143,845
OCI before reclassifications	(91,980)	(57,609)
Amount reclassified from accumulated OCI	0	0
Other Comprehensive Income (Loss)	(91,980)	(57,609)
Ending balance	(5,744)	86,236	143,845
Long-Term Notes
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(6,465)	(12,566)
OCI before reclassifications	10,576	6,101
Amount reclassified from accumulated OCI	0	0
Other Comprehensive Income (Loss)	10,576	6,101
Ending balance	4,111	(6,465)	(12,566)
Defined Benefit Plans
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(7,601)	(5,414)
OCI before reclassifications	(2,292)	(3,223)
Amount reclassified from accumulated OCI	136	1,036
Other Comprehensive Income (Loss)	(2,156)	(2,187)
Ending balance	(9,757)	(7,601)	(5,414)
Derivatives
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(551)	(709)
OCI before reclassifications	3,545	562
Amount reclassified from accumulated OCI	(991)	(404)
Other Comprehensive Income (Loss)	2,554	158
Ending balance	$ 2,003	$ (551)	$ (709)

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Accumulated Other Comprehensive Income (Loss) by Component - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net sales	$ 283,265	$ 283,776	$ 286,273	$ 289,024	$ 318,199	$ 320,520	$ 326,943	$ 304,501	$ 1,142,338	$ 1,270,163	$ 1,334,505
Cost of products sold									(829,514)	(922,775)	(967,079)
Selling, general and administrative expenses									(319,847)	(383,913)	(397,332)
Earnings before income taxes	581	(790)	(6,492)	(5,039)	(8,385)	(26,375)	(11,580)	(16,870)	(11,740)	(63,210)	(43,459)
Income taxes									(14,710)	(5,550)	(10,875)
Net Loss from Continuing Operations	$ (2,929)	$ (7,790)	$ (8,217)	$ (7,514)	$ (6,685)	$ (28,725)	$ (14,455)	$ (18,895)	(26,450)	(68,760)	$ (54,334)
Defined Benefit Plans | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Selling, general and administrative expenses									133	1,045
Income taxes									3	(9)
Net Loss from Continuing Operations									136	1,036
Derivatives | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Earnings before income taxes									(1,112)	(326)
Income taxes									121	(78)
Net Loss from Continuing Operations									(991)	(404)
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | Foreign exchange forward
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net sales									2,778	657
Cost of products sold									(3,890)	(995)
Derivatives | Reclassification out of Accumulated Other Comprehensive Income | Interest rate swap
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Interest expense									$ 0	$ (12)

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Capital Stock - (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Capital Stock [Roll Forward]
Treasury Shares, Beginning Balance	(3,187,000)	(3,158,000)	(3,135,000)
Exercise of stock options	172,218	33,810	30,166
Treasury Shares, Ending Balance	(3,194,000)	(3,187,000)	(3,158,000)
Number of stock awards canceled	94,781	77,591	12,925
Common Stock
Class of Stock [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities	351,000
Capital Stock [Roll Forward]
Common Stock, Beginning Balance	34,219,000	34,084,000	33,952,000
Exercise of stock options	172,000	34,000	30,000
Restricted stock awards	282,000	101,000	102,000
Common Stock, Ending Balance	35,024,000	34,219,000	34,084,000
Dividends declared (in dollars per share)	$ 0.05	$ 0.05	$ 0.05
Dividends paid (in dollars per share)	$ 0.05	$ 0.05	$ 0.05
Class B Common Shares
Class of Stock [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities	(351,000)
Capital Stock [Roll Forward]
Common Stock, Beginning Balance	1,085,000	1,085,000	1,085,000
Exercise of stock options	0	0	0
Restricted stock awards	0	0	0
Common Stock, Ending Balance	734,000	1,085,000	1,085,000
Dividends declared (in dollars per share)	$ 0.045	$ 0.045	$ 0.045
Dividends paid (in dollars per share)	$ 0.045	$ 0.045	$ 0.045
Treasury Shares
Class of Stock [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities	0
Capital Stock [Roll Forward]
Exercise of stock options	0	0	0
Restricted stock awards	(7,000)	(29,000)	(23,000)

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Charges Related To Restructuring Activities - (Details) - USD ($)	3 Months Ended							12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Restructuring Reserve [Roll Forward]
Beginning Balance			$ 4,466,000				$ 4,485,000	$ 4,466,000	$ 4,485,000	$ 6,993,000	$ 4,979,000	$ 0
Charges	$ 1,031,000	$ 689,000	240,000	$ 2,705,000	$ 4,077,000	$ 2,090,000	2,240,000	1,971,000	11,112,000	9,336,000	11,395,000	10,534,000
Payments								(3,723,000)	(11,131,000)	(11,844,000)	(9,381,000)	(5,555,000)
Ending Balance	2,714,000			4,466,000				2,714,000	4,466,000	4,485,000	6,993,000	4,979,000
Severance
Restructuring Reserve [Roll Forward]
Beginning Balance			4,209,000				3,986,000	4,209,000	3,986,000	5,211,000	4,905,000	0
Charges								1,678,000	9,841,000	8,282,000	6,775,000	8,352,000
Payments								(3,410,000)	(9,618,000)	(9,507,000)	(6,469,000)	(3,447,000)
Ending Balance	2,477,000			4,209,000				2,477,000	4,209,000	3,986,000	5,211,000	4,905,000
Inventory
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	151,000	0	0
Charges								0	0	0	491,000	277,000
Payments								0	0	(151,000)	(340,000)	(277,000)
Ending Balance	0			0				0	0	0	151,000	0
Lease Terminations
Restructuring Reserve [Roll Forward]
Beginning Balance			257,000				499,000	257,000	499,000	1,625,000	74,000	0
Charges								293,000	(15,000)	698,000	1,725,000	1,788,000
Payments								(313,000)	(227,000)	(1,824,000)	(174,000)	(1,714,000)
Ending Balance	237,000			257,000				237,000	257,000	499,000	1,625,000	74,000
Other
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	6,000	0	0
Charges								0	1,286,000	356,000	2,404,000	117,000
Payments								0	(1,286,000)	(362,000)	(2,398,000)	(117,000)
Ending Balance	0			0				0	0	0	6,000	0
North America/HME
Restructuring Reserve [Roll Forward]
Beginning Balance			662,000				2,805,000	662,000	2,805,000	3,747,000	3,092,000
Charges								1,361,000	4,404,000	5,922,000	4,247,000	4,759,000
Payments								(1,124,000)	(6,547,000)	(6,864,000)	(3,592,000)	(1,667,000)
Ending Balance	899,000			662,000				899,000	662,000	2,805,000	3,747,000	3,092,000
North America/HME | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance			662,000				2,805,000	662,000	2,805,000	3,747,000	3,092,000
Charges								1,069,000	4,404,000	5,405,000	4,242,000	4,755,000
Payments								(1,069,000)	(6,547,000)	(6,347,000)	(3,587,000)	(1,663,000)
Ending Balance	662,000			662,000				662,000	662,000	2,805,000	3,747,000	3,092,000
North America/HME | Inventory
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	0	0
Charges								0	0	0	0	0
Payments								0	0	0	0	0
Ending Balance	0			0				0	0	0	0	0
North America/HME | Lease Terminations
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	0	0
Charges								292,000	0	164,000	5,000	0
Payments								(55,000)	0	(164,000)	(5,000)	0
Ending Balance	237,000			0				237,000	0	0	0	0
North America/HME | Other
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	0	0
Charges								0	0	353,000	0	4,000
Payments								0	0	(353,000)	0	(4,000)
Ending Balance	0			0				0	0	0	0	0
IPG
Restructuring Reserve [Roll Forward]
Beginning Balance			148,000				92,000	148,000	92,000		71,000
Charges								73,000	1,924,000	267,000	35,000	123,000
Payments								(221,000)	(1,868,000)	(175,000)	(106,000)	(52,000)
Ending Balance				148,000					148,000	92,000		71,000
IPG | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance			148,000				92,000	148,000	92,000		71,000
Charges								73,000	1,163,000	267,000	35,000	123,000
Payments								(221,000)	(1,107,000)	(175,000)	(106,000)	(52,000)
Ending Balance				148,000					148,000	92,000		71,000
IPG | Inventory
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0		0
Charges								0	0	0	0	0
Payments								0	0	0	0	0
Ending Balance				0					0	0		0
IPG | Lease Terminations
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0		0
Charges								0	0	0	0	0
Payments								0	0	0	0	0
Ending Balance				0					0	0		0
IPG | Other
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0		0
Charges								0	761,000	0	0	0
Payments								0	(761,000)	0	0	0
Ending Balance				0					0	0		0
Europe
Restructuring Reserve [Roll Forward]
Beginning Balance			421,000				1,089,000	421,000	1,089,000	595,000	1,816,000
Charges								510,000	1,052,000	1,640,000	2,093,000	5,466,000
Payments								(619,000)	(1,720,000)	(1,146,000)	(3,314,000)	(3,650,000)
Ending Balance	312,000			421,000				312,000	421,000	1,089,000	595,000	1,816,000
Europe | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance			421,000				1,089,000	421,000	1,089,000	595,000	1,742,000
Charges								510,000	527,000	1,640,000	817,000	3,288,000
Payments								(619,000)	(1,195,000)	(1,146,000)	(1,964,000)	(1,546,000)
Ending Balance	312,000			421,000				312,000	421,000	1,089,000	595,000	1,742,000
Europe | Inventory
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	0	0
Charges								0	0	0	0	277,000
Payments								0	0	0	0	(277,000)
Ending Balance	0			0				0	0	0	0	0
Europe | Lease Terminations
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	0	74,000
Charges								0	0	0	53,000	1,788,000
Payments								0	0	0	(127,000)	(1,714,000)
Ending Balance	0			0				0	0	0	0	74,000
Europe | Other
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	0	0
Charges								0	525,000	0	1,223,000	113,000
Payments								0	(525,000)	0	(1,223,000)	(113,000)
Ending Balance	0			0				0	0	0	0	0
Asia/Pacific
Restructuring Reserve [Roll Forward]
Beginning Balance			257,000				499,000	257,000	499,000	2,651,000	0
Charges								27,000	754,000	1,507,000	5,020,000	186,000
Payments								(284,000)	(996,000)	(3,659,000)	(2,369,000)	(186,000)
Ending Balance				257,000					257,000	499,000	2,651,000	0
Asia/Pacific | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	869,000	0
Charges								26,000	769,000	970,000	1,681,000	186,000
Payments								(26,000)	(769,000)	(1,839,000)	(812,000)	(186,000)
Ending Balance				0					0	0	869,000	0
Asia/Pacific | Inventory
Restructuring Reserve [Roll Forward]
Beginning Balance			0				0	0	0	151,000	0
Charges								0	0	0	491,000	0
Payments								0	0	(151,000)	(340,000)	0
Ending Balance				0					0	0	151,000	0
Asia/Pacific | Lease Terminations
Restructuring Reserve [Roll Forward]
Beginning Balance			257,000				499,000	257,000	499,000	1,625,000	0
Charges								1,000	(15,000)	534,000	1,667,000	0
Payments								(258,000)	(227,000)	(1,660,000)	(42,000)	0
Ending Balance				257,000					257,000	499,000	1,625,000	0
Asia/Pacific | Other
Restructuring Reserve [Roll Forward]
Beginning Balance			0				$ 0	0	0	6,000	0
Charges								0	0	3,000	1,181,000	0
Payments								0	0	(9,000)	(1,175,000)	0
Ending Balance				0					0	$ 0	$ 6,000	$ 0
Other
Restructuring Reserve [Roll Forward]
Beginning Balance			2,978,000					2,978,000
Charges									2,978,000
Payments								(1,475,000)
Ending Balance	1,503,000			2,978,000				1,503,000	2,978,000
Other | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance			2,978,000					2,978,000
Charges									2,978,000
Payments								(1,475,000)
Ending Balance	1,503,000			2,978,000				1,503,000	2,978,000
Other | Inventory
Restructuring Reserve [Roll Forward]
Beginning Balance			0					0
Charges									0
Payments								0
Ending Balance	0			0				0	0
Other | Lease Terminations
Restructuring Reserve [Roll Forward]
Beginning Balance			0					0
Charges									0
Payments								0
Ending Balance	0			0				0	0
Other | Other
Restructuring Reserve [Roll Forward]
Beginning Balance			$ 0					0
Charges									0
Payments								0
Ending Balance	$ 0			$ 0				$ 0	$ 0

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Charges Related To Restructuring Activities - Narrative (Details) - USD ($)	3 Months Ended							12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Restructuring Cost and Reserve [Line Items]
Charges	$ 1,031,000	$ 689,000	$ 240,000	$ 2,705,000	$ 4,077,000	$ 2,090,000	$ 2,240,000	$ 1,971,000	$ 11,112,000	$ 9,336,000	$ 11,395,000	$ 10,534,000
Payments								$ (3,723,000)	(11,131,000)	(11,844,000)	(9,381,000)	(5,555,000)
Expected payout period								12 months
Severance
Restructuring Cost and Reserve [Line Items]
Charges								$ 1,678,000	9,841,000	8,282,000	6,775,000	8,352,000
Payments								(3,410,000)	(9,618,000)	(9,507,000)	(6,469,000)	(3,447,000)
Lease Terminations
Restructuring Cost and Reserve [Line Items]
Charges								293,000	(15,000)	698,000	1,725,000	1,788,000
Payments								(313,000)	(227,000)	(1,824,000)	(174,000)	(1,714,000)
Other
Restructuring Cost and Reserve [Line Items]
Charges								0	1,286,000	356,000	2,404,000	117,000
Payments								0	(1,286,000)	(362,000)	(2,398,000)	(117,000)
Inventory
Restructuring Cost and Reserve [Line Items]
Charges								0	0	0	491,000	277,000
Payments								0	0	(151,000)	(340,000)	(277,000)
Europe
Restructuring Cost and Reserve [Line Items]
Charges								510,000	1,052,000	1,640,000	2,093,000	5,466,000
Payments								(619,000)	(1,720,000)	(1,146,000)	(3,314,000)	(3,650,000)
Europe | Severance
Restructuring Cost and Reserve [Line Items]
Charges								510,000	527,000	1,640,000	817,000	3,288,000
Payments								(619,000)	(1,195,000)	(1,146,000)	(1,964,000)	(1,546,000)
Europe | Lease Terminations
Restructuring Cost and Reserve [Line Items]
Charges								0	0	0	53,000	1,788,000
Payments								0	0	0	(127,000)	(1,714,000)
Europe | Other
Restructuring Cost and Reserve [Line Items]
Charges								0	525,000	0	1,223,000	113,000
Payments								0	(525,000)	0	(1,223,000)	(113,000)
Europe | Inventory
Restructuring Cost and Reserve [Line Items]
Charges								0	0	0	0	277,000
Payments								0	0	0	0	(277,000)
Asia/Pacific
Restructuring Cost and Reserve [Line Items]
Charges								27,000	754,000	1,507,000	5,020,000	186,000
Payments								(284,000)	(996,000)	(3,659,000)	(2,369,000)	(186,000)
Asia/Pacific | Severance
Restructuring Cost and Reserve [Line Items]
Charges								26,000	769,000	970,000	1,681,000	186,000
Payments								(26,000)	(769,000)	(1,839,000)	(812,000)	(186,000)
Asia/Pacific | Lease Terminations
Restructuring Cost and Reserve [Line Items]
Charges								1,000	(15,000)	534,000	1,667,000	0
Payments								(258,000)	(227,000)	(1,660,000)	(42,000)	0
Asia/Pacific | Other
Restructuring Cost and Reserve [Line Items]
Charges								0	0	3,000	1,181,000	0
Payments								0	0	(9,000)	(1,175,000)	0
Asia/Pacific | Inventory
Restructuring Cost and Reserve [Line Items]
Charges								0	0	0	491,000	0
Payments								0	0	(151,000)	(340,000)	0
North America/HME
Restructuring Cost and Reserve [Line Items]
Charges								1,361,000	4,404,000	5,922,000	4,247,000	4,759,000
Payments								(1,124,000)	(6,547,000)	(6,864,000)	(3,592,000)	(1,667,000)
North America/HME | Severance
Restructuring Cost and Reserve [Line Items]
Charges								1,069,000	4,404,000	5,405,000	4,242,000	4,755,000
Payments								(1,069,000)	(6,547,000)	(6,347,000)	(3,587,000)	(1,663,000)
North America/HME | Lease Terminations
Restructuring Cost and Reserve [Line Items]
Charges								292,000	0	164,000	5,000	0
Payments								(55,000)	0	(164,000)	(5,000)	0
North America/HME | Other
Restructuring Cost and Reserve [Line Items]
Charges								0	0	353,000	0	4,000
Payments								0	0	(353,000)	0	(4,000)
North America/HME | Inventory
Restructuring Cost and Reserve [Line Items]
Charges								0	0	0	0	0
Payments								0	0	0	0	0
Other
Restructuring Cost and Reserve [Line Items]
Charges									2,978,000
Payments								(1,475,000)
Other | Severance
Restructuring Cost and Reserve [Line Items]
Charges									2,978,000
Payments								(1,475,000)
Other | Lease Terminations
Restructuring Cost and Reserve [Line Items]
Charges									0
Payments								0
Other | Other
Restructuring Cost and Reserve [Line Items]
Charges									0
Payments								0
Other | Inventory
Restructuring Cost and Reserve [Line Items]
Charges									0
Payments								0
Institutional Products Group
Restructuring Cost and Reserve [Line Items]
Charges								73,000	1,924,000	267,000	35,000	123,000
Payments								(221,000)	(1,868,000)	(175,000)	(106,000)	(52,000)
Institutional Products Group | Severance
Restructuring Cost and Reserve [Line Items]
Charges								73,000	1,163,000	267,000	35,000	123,000
Payments								(221,000)	(1,107,000)	(175,000)	(106,000)	(52,000)
Institutional Products Group | Lease Terminations
Restructuring Cost and Reserve [Line Items]
Charges								0	0	0	0	0
Payments								0	0	0	0	0
Institutional Products Group | Other
Restructuring Cost and Reserve [Line Items]
Charges								0	761,000	0	0	0
Payments								0	(761,000)	0	0	0
Institutional Products Group | Inventory
Restructuring Cost and Reserve [Line Items]
Charges								0	0	0	0	0
Payments								$ 0	$ 0	$ 0	$ 0	$ 0

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Income Taxes - Income Before Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Domestic									$ (54,812)	$ (104,776)	$ (73,529)
Foreign									43,072	41,566	30,070
Earnings before income taxes	$ 581	$ (790)	$ (6,492)	$ (5,039)	$ (8,385)	$ (26,375)	$ (11,580)	$ (16,870)	$ (11,740)	$ (63,210)	$ (43,459)

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Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current:
Federal	$ (167)	$ (7,105)	$ (2,485)
State	(150)	(63)	300
Foreign	11,439	15,105	11,043
Current Income Tax Expense (Benefit)	11,122	7,937	8,858
Deferred:
Federal	3,222	100	3,011
State	318	0	0
Foreign	48	(2,487)	(994)
Deferred Income Tax Expense (Benefit)	3,588	(2,387)	2,017
Income Taxes	$ 14,710	$ 5,550	$ 10,875

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Income Taxes - Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract]
Statutory federal income tax rate	(35.00%)	(35.00%)	(35.00%)
State and local income taxes, net of federal income tax benefit	0.90%	(0.10%)	0.50%
Tax credits	(61.80%)	(5.10%)	(22.80%)
Foreign taxes at less than the federal statutory rate (including tax holidays)	(46.10%)	(10.70%)	(10.60%)
Federal and foreign valuation allowance	168.00%	52.50%	35.80%
Withholding taxes	3.00%	0.60%	0.70%
Compensation	0.60%	0.10%	0.50%
Dividends	100.10%	12.30%	54.60%
Life insurance	(2.70%)	4.10%	(1.50%)
Foreign branch activity	(8.10%)	(1.80%)	(1.80%)
Uncertain tax positions	6.70%	1.20%	1.30%
Other, net	(0.30%)	(9.30%)	3.30%
Effective Income Tax Rate, Continuing Operations	125.30%	8.80%	25.00%

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Income Taxes - Components of Deferred Income Tax (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current deferred income tax assets (liabilities), net:
Bad debt	$ 0	$ 5,364,000
Warranty	0	7,092,000
State and local taxes	0	2,240,000
Other accrued expenses and reserves	0	1,852,000
Inventory	0	(3,096,000)
Compensation and benefits	0	2,209,000
Product liability	0	594,000
Valuation allowance	0	(22,084,000)
Other, net	0	(732,000)
Deferred Tax Liabilities, Net, Current	0	(369,000)
Long-term deferred income tax assets (liabilities), net:
Bad debt	3,670,000	0
Warranty	5,357,000	0
Other accrued expenses and reserves	4,355,000	0
Inventory	2,395,000	0
Goodwill and intangibles	(25,008,000)	(21,915,000)
Convertible debt	(421,000)	(700,000)
Fixed assets	(8,207,000)	(10,431,000)
Compensation and benefits	7,136,000	14,630,000
Loss and credit carryforwards	102,194,000	65,123,000
Product liability	4,107,000	4,919,000
State and local taxes	19,932,000	17,745,000
Valuation allowance	(151,972,000)	(111,828,000)
Other, net	5,255,000	12,647,000
Deferred tax assets (Liabilities), net, noncurrent	(31,207,000)	(29,810,000)
Net Deferred Income Taxes	$ 31,207,000	$ 30,179,000

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Income Taxes - Unrecognized Tax Liability (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 11,019	$ 10,833
Additions to:
Positions taken during the current year	227	348
Positions taken during a prior year	270	418
Deductions due to:
Exchange rate impact	(1,197)	(362)
Positions taken during a prior year	(527)	0
Lapse of statute of limitations	(239)	(218)
Balance at end of year	$ 9,553	$ 11,019

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Income Taxes - (Narrative) (Details) - USD ($)	3 Months Ended			12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Tax Credit Carryforward [Line Items]
Tax benefit from intra-period allocation	$ (3,400,000)	$ 2,700,000	$ (1,550,000)	$ 140,000	$ 7,175,000	$ 3,455,000
Income taxes (benefit)				14,710,000	5,550,000	10,875,000
Deferred tax assets, gross		137,511,000		154,401,000	137,511,000
Deferred tax liabilities		33,778,000		33,636,000	33,778,000
Deferred tax assets, valuation allowance		133,912,000		151,972,000	133,912,000
Income Taxes Paid, Net				7,966,000	6,384,000	6,349,000
Domestic state and local tax loss carryforwards				563,000,000
Federal tax credit carryforwards				38,520,000
Unrecognized tax benefits, excluding interest and penalties		10,030,000		8,366,000	10,030,000
Expected Foreign Tax Payments Pursuant to Payment Plan, Current				9,100,000
Unrecognized tax benefits that would impact effective tax rate		10,030,000		8,366,000	10,030,000
Income tax penalties and interest expense				(315,000)	(500,000)	$ (676,000)
Income tax penalties and interest accrued		$ 5,130,000		5,440,000	$ 5,130,000
Foreign Tax Authority [Member]
Tax Credit Carryforward [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Foreign				61,330,000
Tax Year 2014 to 2017 | State and Local Jurisdiction [Member]
Tax Credit Carryforward [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration				206,000,000
Tax year 2018 to 2027 | State and Local Jurisdiction [Member]
Tax Credit Carryforward [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration				191,000,000
Tax Year 2014 to 2018 | Domestic tax authority
Tax Credit Carryforward [Line Items]
Tax credit carryforwards				4,169,000
Tax Year 2019 to 2022 | Domestic tax authority
Tax Credit Carryforward [Line Items]
Tax credit carryforwards				32,522,000
Tax Year 2028 and Thereafter | State and Local Jurisdiction [Member]
Tax Credit Carryforward [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration				166,000,000
Tax Year 2031 | Domestic tax authority
Tax Credit Carryforward [Line Items]
Tax credit carryforwards				1,582,000
Indefinite | Domestic tax authority
Tax Credit Carryforward [Line Items]
Tax credit carryforwards				247,000
Loss Carryforwards | Foreign Tax Authority [Member]
Tax Credit Carryforward [Line Items]
Deferred tax assets, valuation allowance				$ 61,330,000

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Net Earnings (Loss) Per Common Share - Computation of Basic and Diluted Net Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Net Earnings (loss) per Share—Basic:
Average common shares outstanding									32,171		32,009		31,915
Net Loss from Continuing Operations	$ (2,929)	$ (7,790)	$ (8,217)	$ (7,514)	$ (6,685)	$ (28,725)	$ (14,455)	$ (18,895)	$ (26,450)		$ (68,760)		$ (54,334)
Total Net Earnings from Discontinued Operations	0	0	0	260	(2,700)	13,629	842	919	260		12,690		87,385
Net Earnings (loss)	$ (2,929)	$ (7,790)	$ (8,217)	$ (7,254)	$ (9,385)	$ (15,096)	$ (13,613)	$ (17,976)	$ (26,190)		$ (56,070)		$ 33,051
Net loss from continuing operations - Basic (in dollars per share)	$ (0.09)	$ (0.24)	$ (0.26)	$ (0.23)	$ (0.21)	$ (0.90)	$ (0.45)	$ (0.59)	$ (0.82)		$ (2.15)		$ (1.70)
Net earnings (loss) from discontinued operations - Basic (in dollars per share	0.00	0.00	0	0.01	(0.08)	0.43	0.03	0.03	0.01		0.40		2.74
Net earnings per common share	$ (0.09)	$ (0.24)	$ (0.26)	$ (0.23)	$ (0.29)	$ (0.47)	$ (0.43)	$ (0.56)	$ (0.81)		$ (1.75)		$ 1.04
Diluted
Average common shares outstanding									32,171		32,009		31,915
Stock options and awards									512		188		128
Average common shares assuming dilution									32,683		32,197		32,043
Net Loss from Continuing Operations	$ (2,929)	$ (7,790)	$ (8,217)	$ (7,514)	$ (6,685)	$ (28,725)	$ (14,455)	$ (18,895)	$ (26,450)		$ (68,760)		$ (54,334)
Total Net Earnings from Discontinued Operations	0	0	0	260	(2,700)	13,629	842	919	260		12,690		87,385
Net Earnings (loss)	$ (2,929)	$ (7,790)	$ (8,217)	$ (7,254)	$ (9,385)	$ (15,096)	$ (13,613)	$ (17,976)	$ (26,190)		$ (56,070)		$ 33,051
Net loss from continuing operations assuming dilution (in dollars per share)	$ (0.09)	$ (0.24)	$ (0.26)	$ (0.23)	$ (0.21)	$ (0.90)	$ (0.45)	$ (0.59)	$ (0.82)	[1]	$ (2.15)	[1]	$ (1.70)	[1]
Net earnings (loss) from discontinued operations assuming dilution (in dollars per share)	0.00	0.00	0	0.01	(0.08)	0.42	0.03	0.03	0.01		0.39		2.73
Net Earnings (loss) per Share - Assuming Dilution (in dollars per share)	$ (0.09)	$ (0.24)	$ (0.26)	$ (0.23)	$ (0.29)	$ (0.47)	$ (0.43)	$ (0.56)	$ (0.81)	[1]	$ (1.75)	[1]	$ 1.03	[1]

[1] Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

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Net Earnings (Loss) Per Common Share - Narrative (Details) - Stock Options - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,479,912	2,857,590	4,307,458
Average exercise price	$ 18.51	$ 41.87	$ 41.87
Fair value stock price	$ 25.24	$ 16.95	$ 16.48

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Concentration Of Credit Risk - (Details)	12 Months Ended
	Dec. 31, 2015 USD ($) Customer
Net Sales | Customer Concentration Risk
Concentration Risk [Line Items]
Number of Customers Used For Concentration Risk Disclosure | Customer	10
Concentration risk, percentage	16.40%
Maximum percent of revenue from single customer	3.30%
Payment Guarantee
Concentration Risk [Line Items]
Retained recourse obligation	$ 6,089,000
Total contracts	39,510,000
Other Long-Term Obligations | Payment Guarantee
Concentration Risk [Line Items]
Guarantee obligation at carrying value	$ 109,000

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Derivatives - Notional Amounts - Designated as Hedges (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	$ 40,165,000	$ 79,973,000
Gain (Loss)	(54,000)	(1,458,000)
Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	213,164,000	83,942,000
Unrealized Gain (Loss)	2,183,000	(548,000)
Foreign exchange forward
Derivative [Line Items]
Gain (Loss)	1,112,000	338,000	$ (271,000)
Foreign exchange forward | Not Designated as Hedging Instrument
Derivative [Line Items]
Gain (Loss)	(54,000)	(1,458,000)
USD / AUD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	2,910,000	1,250,000
Unrealized Gain (Loss)	(83,000)	65,000
USD / CAD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	3,893,000	3,570,000
Unrealized Gain (Loss)	181,000	(63,000)
USD / CHF | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	111,000
Unrealized Gain (Loss)	0	0
USD / CNY | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	16,786,000	0
Unrealized Gain (Loss)	(282,000)	0
USD / EUR | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	72,758,000	25,524,000
Unrealized Gain (Loss)	2,681,000	0
USD / GBP | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	3,862,000	1,199,000
Unrealized Gain (Loss)	22,000	3,000
USD / NZD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	4,893,000	7,018,000
Unrealized Gain (Loss)	37,000	(55,000)
USD / SEK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	5,128,000	594,000
Unrealized Gain (Loss)	39,000	1,000
USD / MXP | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	8,494,000	10,297,000
Unrealized Gain (Loss)	(284,000)	(657,000)
EUR / AUD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	669,000	452,000
Unrealized Gain (Loss)	(10,000)	5,000
EUR / CAD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	1,283,000	580,000
Unrealized Gain (Loss)	(17,000)	(1,000)
EUR / CHF | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	1,944,000	505,000
Unrealized Gain (Loss)	(17,000)	(2,000)
EUR / DKK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	643,000
Unrealized Gain (Loss)	0	(3,000)
EUR / GBP | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	36,567,000	11,906,000
Unrealized Gain (Loss)	(424,000)	23,000
EUR / NOK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	3,375,000	1,490,000
Unrealized Gain (Loss)	(55,000)	43,000
EUR / SEK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	2,464,000	2,917,000
Unrealized Gain (Loss)	(42,000)	(9,000)
EUR / NZD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	3,609,000	7,074,000
Unrealized Gain (Loss)	476,000	60,000
GBP / AUD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	830,000	656,000
Unrealized Gain (Loss)	(46,000)	22,000
GBP / CHF | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	463,000	331,000
Unrealized Gain (Loss)	(7,000)	(1,000)
GBP / SEK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	2,067,000	1,035,000
Unrealized Gain (Loss)	(1,000)	(2,000)
AUD / CAD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	1,538,000
Unrealized Gain (Loss)	0	30,000
AUD / CHF | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	93,000
Unrealized Gain (Loss)	0	1,000
AUD / NZD | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	352,000	537,000
Unrealized Gain (Loss)	8,000	19,000
AUD / SEK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	61,000
Unrealized Gain (Loss)	0	(1,000)
CAD / SEK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	182,000
Unrealized Gain (Loss)	0	(1,000)
CHF / DKK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	269,000
Unrealized Gain (Loss)	0	(2,000)
DKK / SEK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	37,293,000	2,497,000
Unrealized Gain (Loss)	46,000	(44,000)
NOK / CHF | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	66,000
Unrealized Gain (Loss)	0	2,000
NOK / SEK | Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	3,524,000	1,547,000
Unrealized Gain (Loss)	$ (39,000)	$ 19,000

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Derivatives - Notional Amounts - Not Designated as Hedges (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	$ 40,165,000	$ 79,973,000
Gain (Loss)	(54,000)	(1,458,000)
Foreign exchange forward
Derivative [Line Items]
Gain (Loss)	1,112,000	338,000	$ (271,000)
Foreign exchange forward | Not Designated as Hedging Instrument
Derivative [Line Items]
Gain (Loss)	(54,000)	(1,458,000)
AUD / USD | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	8,051,000	7,300,000
Gain (Loss)	337,000	117,000
CAD / USD | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	5,762,000	6,016,000
Gain (Loss)	(4,000)	(6,000)
CNY / USD | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	9,943,000	3,200,000
Gain (Loss)	(441,000)	(14,000)
EUR / USD | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	2,118,000	53,365,000
Gain (Loss)	53,000	(1,585,000)
DKK / USD | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	7,927,000	0
Gain (Loss)	125,000	0
GBP / USD | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	4,526,000	5,592,000
Gain (Loss)	(106,000)	18,000
NZD / USD | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	0	4,500,000
Gain (Loss)	0	12,000
NOK / USD | Not Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount	1,838,000	0
Gain (Loss)	$ (18,000)	$ 0

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Derivatives - Balance Sheet Location (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Other Current Assets
Derivatives, Fair Value [Line Items]
Assets	$ 4,143	$ 520
Other Current Assets | Foreign exchange forward | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Assets	3,626	373
Other Current Assets | Foreign exchange forward | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Assets	517	147
Accrued Expenses
Derivatives, Fair Value [Line Items]
Liabilities	2,014	2,526
Accrued Expenses | Foreign exchange forward | Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Liabilities	1,443	921
Accrued Expenses | Foreign exchange forward | Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Liabilities	$ 571	$ 1,605

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Derivatives - Gain (Loss) in Statement of Finacial Position (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)		$ 562,000
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		404,000
Amount of Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)		(11,000)
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 1,112,000	338,000	$ (271,000)
Foreign exchange forward
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	1,112,000	338,000	$ (271,000)
Foreign exchange forward | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	3,545,000	562,000
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	991,000	416,000
Amount of Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	(11,000)	(11,000)
Interest rate swap | Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)		0
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		(12,000)
Amount of Loss Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)		0
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	(54,000)	(1,458,000)
Not Designated as Hedging Instrument | Foreign exchange forward
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ (54,000)	$ (1,458,000)

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Derivatives - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Minimum
Derivative [Line Items]
Percentage of forcasted transactions with currency rate exposure	50.00%
Maximum
Derivative [Line Items]
Percentage of forcasted transactions with currency rate exposure	90.00%
Foreign exchange forward
Derivative [Line Items]
Notional amount of derivatives, matured during period	$ 136,818,000	$ 157,121,000
Gain (Loss)	1,112,000	338,000	$ (271,000)
Interest expense | Interest rate swap
Derivative [Line Items]
Loss on derivative		12,000	337,000
Selling, general and administrative expense | Foreign exchange forward
Derivative [Line Items]
Gain on derivative			(370,000)
Loss on derivative	54,000	1,458,000
Cash Flow Hedging
Derivative [Line Items]
Gain (Loss)	1,112,000	338,000	$ (271,000)
Cash Flow Hedging | Net sales
Derivative [Line Items]
Loss on derivative	2,778,000	657,000
Cash Flow Hedging | Cost of products sold
Derivative [Line Items]
Gain on derivative	$ (3,890,000)	$ (995,000)

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Fair Values of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Foreign exchange forward - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	$ 2,129	$ (2,006)
Quoted Prices in Active Markets for Identical Assets / (Liabilities) - Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Significant Other Observable Inputs - Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	2,129	(2,006)
Significant Other Unobservable Inputs - Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	$ 0	$ 0

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Fair Values of Financial Instruments - Details of Book Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 60,055	$ 38,931
Other investments	160	249
Installment receivables, net of reserves	1,793	1,911
Long-term debt (including current maturities of long-term debt)	(47,120)	(20,331)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	60,055	38,931
Other investments	160	249
Installment receivables, net of reserves	1,793	1,911
Long-term debt (including current maturities of long-term debt)	(47,369)	(20,248)
Foreign exchange forward | Other Current Assets | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	4,143	520
Foreign exchange forward | Other Current Assets | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	4,143	520
Foreign exchange forward | Accrued Expenses | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	(2,014)	(2,526)
Foreign exchange forward | Accrued Expenses | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	$ (2,014)	$ (2,526)

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Fair Values of Financial Instruments - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity of corporate debt with similar credit risk			20 years
US treasury bond maturity			20 years
Discounted cash flow, discount rate			9.41%	9.89%	10.00%
Impairment of intangible assets	$ 4,788,000	$ 8,253,000			$ 1,523,000
Discounted cash flow, discount rate premium			1.00%
Institutional Products Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of finite-lived intangible assets				$ 13,041,000	1,356,000
Discounted cash flow sensitivity analysis discount rate rncrease			1.00%
Europe
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounted cash flow sensitivity analysis discount rate rncrease			1.00%
Customer lists | Institutional Products Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of finite-lived intangible assets				12,826,000	442,000
Customer lists | North America/HME
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of finite-lived intangible assets					167,000
Noncompete Agreements | Institutional Products Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of finite-lived intangible assets				215,000
Trademarks with definite life | Institutional Products Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of finite-lived intangible assets					123,000
Developed technology | Institutional Products Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of finite-lived intangible assets					223,000
Trademarks | Institutional Products Group
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of indefinite-lived intangible assets					568,000
Impairment indefinite-lived intangible assets, net of tax					496,000
Foreign exchange forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain (Loss)			$ 1,112,000	$ 338,000	$ (271,000)

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Business Segments - (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015
Institutional Products Group
Segment Reporting Information [Line Items]
Impairment of finite-lived intangible assets	$ 13,041,000	$ 1,356,000
Customer lists | Institutional Products Group
Segment Reporting Information [Line Items]
Impairment of finite-lived intangible assets	$ 12,826,000	442,000
Customer lists | North America/HME
Segment Reporting Information [Line Items]
Impairment of finite-lived intangible assets		$ 167,000
Customer Concentration Risk | Net Sales
Segment Reporting Information [Line Items]
Maximum percent of revenue from single customer			3.30%

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Business Segments - (Information by Segment) (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Net sales		$ 283,265	$ 283,776	$ 286,273	$ 289,024	$ 318,199	$ 320,520	$ 326,943	$ 304,501	$ 1,142,338	$ 1,270,163	$ 1,334,505
Depreciation and amortization										19,430	32,789	36,789
Net interest expense (income)										2,746	2,532	2,694
Earnings (loss) before income taxes										(11,740)	(63,210)	(43,459)
Assets		838,143				963,731				838,143	963,731	1,096,434
Long-lived assets		476,022				557,744				476,022	557,744	647,048
Expenditures for assets										7,522	12,327	14,158
North America/HME
Segment Reporting Information [Line Items]
Depreciation and amortization										8,775	10,925	12,149
Net interest expense (income)										2,080	348	(1,869)
Earnings (loss) before income taxes										(32,866)	(63,601)	(50,506)
Assets		215,500				218,877				215,500	218,877	250,239
Long-lived assets		49,319				44,727				49,319	44,727	60,309
Expenditures for assets										1,232	2,960	5,017
Institutional Products Group
Segment Reporting Information [Line Items]
Depreciation and amortization										1,980	7,656	8,310
Net interest expense (income)										1,028	2,244	3,656
Earnings (loss) before income taxes										6,757	(10,961)	1,418
Assets		38,730				42,692				38,730	42,692	45,933
Long-lived assets		30,278				33,487				30,278	33,487	38,342
Expenditures for assets										212	1,232	3,308
Europe
Segment Reporting Information [Line Items]
Depreciation and amortization										7,183	11,111	12,123
Net interest expense (income)										(444)	(209)	(53)
Earnings (loss) before income taxes										38,644	48,088	40,468
Assets		557,740				638,896				557,740	638,896	693,790
Long-lived assets		391,533				459,957				391,533	459,957	506,329
Expenditures for assets										5,058	6,708	4,809
Asia/Pacific
Segment Reporting Information [Line Items]
Depreciation and amortization										1,463	2,406	3,073
Net interest expense (income)										82	149	960
Earnings (loss) before income taxes										(3,521)	(9,485)	(13,258)
Assets		24,421				30,231				24,421	30,231	31,034
Long-lived assets		3,140				4,046				3,140	4,046	5,238
Expenditures for assets										969	1,417	830
All Other
Segment Reporting Information [Line Items]
Depreciation and amortization	[1]									29	173	275
Earnings (loss) before income taxes	[1]									(20,754)	(27,251)	(21,581)
Assets		1,752				15,647				1,752	15,647	37,142
Long-lived assets		1,752				15,527				1,752	15,527	36,830
Expenditures for assets										51	0	50
Discontinued Operations
Segment Reporting Information [Line Items]
Depreciation and amortization										0	518	859
Assets		$ 0				$ 17,388				0	17,388	38,296
Expenditures for assets										0	10	144
Operating Segments | North America/HME
Segment Reporting Information [Line Items]
Net sales										474,196	507,867	589,240
Operating Segments | Institutional Products Group
Segment Reporting Information [Line Items]
Net sales										87,137	102,796	112,290
Operating Segments | Europe
Segment Reporting Information [Line Items]
Net sales										536,463	610,555	583,143
Operating Segments | Asia/Pacific
Segment Reporting Information [Line Items]
Net sales										44,542	48,945	49,832
Intersegment Eliminations
Segment Reporting Information [Line Items]
Net sales										142,937	126,069	116,070
Intersegment Eliminations | North America/HME
Segment Reporting Information [Line Items]
Net sales										111,321	84,247	77,553
Intersegment Eliminations | Institutional Products Group
Segment Reporting Information [Line Items]
Net sales										997	6,711	5,304
Intersegment Eliminations | Europe
Segment Reporting Information [Line Items]
Net sales										9,958	8,938	8,272
Intersegment Eliminations | Asia/Pacific
Segment Reporting Information [Line Items]
Net sales										$ 20,661	$ 26,173	$ 24,941

[1] Consists of un-allocated corporate SG&A costs and intercompany profits, which do not meet the quantitative criteria for determining reportable segments.

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Business Segments - (Net Sales by Product) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenue from External Customer [Line Items]
Net sales by product		$ 1,142,338	$ 1,270,163	$ 1,334,505
North America/HME
Revenue from External Customer [Line Items]
Net sales by product		474,196	507,867	589,240
Institutional Products Group | Continuing Care
Revenue from External Customer [Line Items]
Net sales by product		87,137	102,796	112,290
Europe
Revenue from External Customer [Line Items]
Net sales by product		536,463	610,555	583,143
Asia/Pacific
Revenue from External Customer [Line Items]
Net sales by product		44,542	48,945	49,832
Operating Segments | North America/HME | Lifestyle Products
Revenue from External Customer [Line Items]
Net sales by product		222,944	239,625	267,934
Operating Segments | North America/HME | Mobility and Seating
Revenue from External Customer [Line Items]
Net sales by product		117,232	115,776	134,995
Operating Segments | North America/HME | Respiratory Therapy
Revenue from External Customer [Line Items]
Net sales by product		130,349	149,063	178,065
Operating Segments | North America/HME | Other Products and Services
Revenue from External Customer [Line Items]
Net sales by product	[1]	3,671	3,403	8,246
Operating Segments | Europe | Lifestyle Products
Revenue from External Customer [Line Items]
Net sales by product		275,932	322,370	303,225
Operating Segments | Europe | Mobility and Seating
Revenue from External Customer [Line Items]
Net sales by product		208,730	228,163	216,152
Operating Segments | Europe | Respiratory Therapy
Revenue from External Customer [Line Items]
Net sales by product		36,373	40,661	40,885
Operating Segments | Europe | Other Products and Services
Revenue from External Customer [Line Items]
Net sales by product	[1]	15,428	19,361	22,881
Operating Segments | Asia/Pacific | Lifestyle Products
Revenue from External Customer [Line Items]
Net sales by product		10,277	11,772	12,023
Operating Segments | Asia/Pacific | Mobility and Seating
Revenue from External Customer [Line Items]
Net sales by product		25,655	28,174	26,737
Operating Segments | Asia/Pacific | Respiratory Therapy
Revenue from External Customer [Line Items]
Net sales by product		807	1,286	1,290
Operating Segments | Asia/Pacific | Continuing Care
Revenue from External Customer [Line Items]
Net sales by product		3,115	3,956	2,785
Operating Segments | Asia/Pacific | Other Products and Services
Revenue from External Customer [Line Items]
Net sales by product	[1]	$ 4,688	$ 3,757	$ 6,997

[1] Includes various services, including repair services, equipment rentals and external contracting.

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Contingencies - (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loss Contingencies [Line Items]
Loss Contingency Accrual, Period Increase (Decrease)	$ (2,325,000)	$ 11,493,000	$ 7,264,000
Europe
Loss Contingencies [Line Items]
Additional warranty expense related to recall		3,395,000
North America/HME
Loss Contingencies [Line Items]
Additional warranty expense related to recall		3,164,000
Loss Contingency Accrual, Period Increase (Decrease)			2,625,000
Asia/Pacific
Loss Contingencies [Line Items]
Loss Contingency Accrual, Period Increase (Decrease)			$ 4,639,000
Field Action Under Review
Loss Contingencies [Line Items]
Additional warranty expense related to recall	(2,000,000)	6,559,000
Warranty Related Sieve Bed Recall
Loss Contingencies [Line Items]
Additional warranty expense related to recall	(250,000)	2,057,000
Warranty Related Recall
Loss Contingencies [Line Items]
Additional warranty expense related to recall		2,877,000
Warranty Related Recall | North America/HME
Loss Contingencies [Line Items]
Additional warranty expense related to recall	$ (75,000)	1,612,000
Warranty Related Recall | Asia/Pacific
Loss Contingencies [Line Items]
Additional warranty expense related to recall		$ 1,265,000

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Subsequent Event Subsequent Event (Details)	Feb. 16, 2016 USD ($) $ / shares $ / unit shares	Dec. 31, 2015 USD ($) $ / shares	Apr. 22, 2015 USD ($)	Jan. 16, 2015 USD ($)	Dec. 31, 2014 USD ($)
Convertible Subordinated Debt | Convertible senior subordinated debentures at 4.125%, due in February 2027
Subsequent Event [Line Items]
Interest rate (as a percent)		4.125%
Initial conversion price | $ / shares		$ 24.79
Principal amount of liability component		$ 13,350,000			$ 13,350,000
Convertible Subordinated Debt | Convertible senior subordinated debentures at 4.125%, due in February 2027 | Subsequent Event [Member]
Subsequent Event [Line Items]
Interest rate (as a percent)	4.125%
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 5.00% February 2021 [Domain] | Subsequent Event [Member]
Subsequent Event [Line Items]
Interest rate (as a percent)	5.00%
Debt Instrument, Convertible, Percentage of Principal Required to be Repurchased Upon the Occurrence of Certain Fundamental Changes	100.00%
Convertible Common Stock, Shares Issued upon Conversion | shares	60.0492
Debt Instrument, Convertible, Conversion Ratio Principal Amount	$ 1,000
Initial conversion price | $ / shares	$ 16.65
Derivative, Price Risk Option Strike Price | $ / unit	22.4175
Line of Credit, Covenant Compliance, Single Acquisition Limit Maximum	$ 30,000,000
Principal amount of liability component	130,000,000
Convertible Debt, Net Proceeds	124,800,000
Convertible Debt, Option to Purchase Solely to Cover Over-Allotments, Amount	20,000,000
Convertible Debt, Hedge Transaction Cost, net	$ 13,520,000
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member]
Subsequent Event [Line Items]
Line of Credit, Covenant Compliance, Required Undrawn Balance, Minimum, Percent				11.25%
Borrowing capacity				$ 100,000,000
Line of Credit, Covenant Compliance, Maximum Capital Expenditure, Amount				20,000,000
Line of Credit, Covenant Compliance, Single Acquisition Limit Maximum			$ 500,000
Line of Credit, Covenant Compliance, Aggregate Amount of Permitted Dispositions, Amount				20,000,000
Line of Credit, Covenant Compliance, Required Undrawn Balance, Amount				$ 10,000,000
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement) [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Line of Credit, Covenant Compliance, Required Undrawn Balance, Minimum, Percent	20.00%
Borrowing capacity	$ 100,000,000
Line of Credit, Covenant Compliance, Consecutive Business Days for Undrawn Balance	30 days
Line of Credit, Covenant Compliance, Common Stock Repurchase, Amount	$ 5,000,000
Line of Credit, Covenant Compliance, Maximum Capital Expenditure, Amount	35,000,000
Line of Credit, Covenant Compliance, Aggregate Amount of Permitted Dispositions, Amount	25,000,000
Line of Credit, Covenant Compliance, Required Undrawn Balance, Amount	$ 5,000,000

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Supplemental Guarantor Information - Consolidating Condensed Statements of Operations (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Feb. 17, 2007
Condensed Financial Statements, Captions [Line Items]
Net sales	$ 283,265,000	$ 283,776,000	$ 286,273,000	$ 289,024,000	$ 318,199,000	$ 320,520,000	$ 326,943,000	$ 304,501,000	$ 1,142,338,000	$ 1,270,163,000	$ 1,334,505,000
Cost of products sold									829,514,000	922,775,000	967,079,000
Gross Profit	80,803,000	77,639,000	77,287,000	77,095,000	88,370,000	84,647,000	91,578,000	82,793,000	312,824,000	347,388,000	367,426,000
Selling, general and administrative expenses									319,847,000	383,913,000	397,332,000
Charges related to restructuring activities									1,971,000	11,112,000	9,336,000
Asset write-downs to intangibles and goodwill									0	13,041,000	1,523,000
Income (loss) from equity investee									0	0	0
Interest expense, net									2,746,000	2,532,000	2,694,000
Earnings before income taxes	581,000	(790,000)	(6,492,000)	(5,039,000)	(8,385,000)	(26,375,000)	(11,580,000)	(16,870,000)	(11,740,000)	(63,210,000)	(43,459,000)
Income taxes (benefit)									14,710,000	5,550,000	10,875,000
Net Loss from Continuing Operations	(2,929,000)	(7,790,000)	(8,217,000)	(7,514,000)	(6,685,000)	(28,725,000)	(14,455,000)	(18,895,000)	(26,450,000)	(68,760,000)	(54,334,000)
Net Earnings from Discontinued Operations	0	0	0	260,000	(2,700,000)	13,629,000	842,000	919,000	260,000	12,690,000	87,385,000
Net Earnings (loss)	$ (2,929,000)	$ (7,790,000)	$ (8,217,000)	$ (7,254,000)	$ (9,385,000)	$ (15,096,000)	$ (13,613,000)	$ (17,976,000)	(26,190,000)	(56,070,000)	33,051,000
Other Comprehensive Income (Loss), net of Tax									(81,006,000)	(53,537,000)	12,413,000
Comprehensive Income (Loss)									(107,196,000)	(109,607,000)	45,464,000
The Company (Parent)
Condensed Financial Statements, Captions [Line Items]
Net sales									211,178,000	213,072,000	241,871,000
Cost of products sold									187,272,000	192,566,000	211,896,000
Gross Profit									23,906,000	20,506,000	29,975,000
Selling, general and administrative expenses									111,814,000	119,904,000	123,377,000
Charges related to restructuring activities									1,339,000	9,672,000	6,356,000
Asset write-downs to intangibles and goodwill										0	0
Income (loss) from equity investee									69,636,000	53,536,000	133,350,000
Interest expense, net									3,011,000	175,000	(1,661,000)
Earnings before income taxes									(22,622,000)	(55,709,000)	35,253,000
Income taxes (benefit)									3,568,000	361,000	2,202,000
Net Loss from Continuing Operations									(26,190,000)	(56,070,000)	33,051,000
Net Earnings from Discontinued Operations									0	0	0
Net Earnings (loss)									(26,190,000)	(56,070,000)	33,051,000
Other Comprehensive Income (Loss), net of Tax									(81,006,000)	(53,537,000)	12,413,000
Comprehensive Income (Loss)									(107,196,000)	(109,607,000)	45,464,000
Combined Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net sales									402,108,000	413,067,000	460,960,000
Cost of products sold									305,592,000	314,562,000	338,650,000
Gross Profit									96,516,000	98,505,000	122,310,000
Selling, general and administrative expenses									63,068,000	81,676,000	93,731,000
Charges related to restructuring activities									0	(1,326,000)	79,000
Asset write-downs to intangibles and goodwill										13,041,000	1,250,000
Income (loss) from equity investee									29,353,000	35,208,000	29,644,000
Interest expense, net									428,000	2,114,000	3,353,000
Earnings before income taxes									62,373,000	38,208,000	53,541,000
Income taxes (benefit)									0	0	(1,785,000)
Net Loss from Continuing Operations									62,373,000	38,208,000	55,326,000
Net Earnings from Discontinued Operations									260,000	12,690,000	87,385,000
Net Earnings (loss)									62,633,000	50,898,000	142,711,000
Other Comprehensive Income (Loss), net of Tax									(15,037,000)	(5,057,000)	(2,309,000)
Comprehensive Income (Loss)									47,596,000	45,841,000	140,402,000
Combined Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net sales									649,966,000	740,669,000	720,978,000
Cost of products sold									457,634,000	512,521,000	506,308,000
Gross Profit									192,332,000	228,148,000	214,670,000
Selling, general and administrative expenses									144,965,000	182,416,000	177,530,000
Charges related to restructuring activities									632,000	2,766,000	2,901,000
Asset write-downs to intangibles and goodwill										0	273,000
Income (loss) from equity investee									703,000	280,000	286,000
Interest expense, net									(693,000)	243,000	1,002,000
Earnings before income taxes									48,131,000	43,003,000	33,250,000
Income taxes (benefit)									11,142,000	5,189,000	10,458,000
Net Loss from Continuing Operations									36,989,000	37,814,000	22,792,000
Net Earnings from Discontinued Operations									0	0	0
Net Earnings (loss)									36,989,000	37,814,000	22,792,000
Other Comprehensive Income (Loss), net of Tax									(67,842,000)	(50,058,000)	17,797,000
Comprehensive Income (Loss)									(30,853,000)	(12,244,000)	40,589,000
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net sales									(120,914,000)	(96,645,000)	(89,304,000)
Cost of products sold									(120,984,000)	(96,874,000)	(89,775,000)
Gross Profit									70,000	229,000	471,000
Selling, general and administrative expenses									0	(83,000)	2,694,000
Charges related to restructuring activities									0	0	0
Asset write-downs to intangibles and goodwill										0	0
Income (loss) from equity investee									(99,692,000)	(89,024,000)	(163,280,000)
Interest expense, net									0	0	0
Earnings before income taxes									(99,622,000)	(88,712,000)	(165,503,000)
Income taxes (benefit)									0	0	0
Net Loss from Continuing Operations									(99,622,000)	(88,712,000)	(165,503,000)
Net Earnings from Discontinued Operations									0	0	0
Net Earnings (loss)									(99,622,000)	(88,712,000)	(165,503,000)
Other Comprehensive Income (Loss), net of Tax									82,879,000	55,115,000	(15,488,000)
Comprehensive Income (Loss)									$ (16,743,000)	$ (33,597,000)	$ (180,991,000)
Convertible Senior Subordinated Debentures February 2027 | Convertible Subordinated Debt
Condensed Financial Statements, Captions [Line Items]
Interest rate (as a percent)	4.125%								4.125%
Principal Amount												$ 135,000,000

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Supplemental Guarantor Information - Consolidating Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Current Assets
Cash and cash equivalents	$ 60,055	$ 38,931	$ 29,785	$ 38,791
Trade receivables, net	133,655	154,207
Installment receivables, net	1,145	1,054
Inventories, net	132,807	155,561
Deferred income taxes	0	2,048
Intercompany advance	0	0
Other current assets	34,459	36,798
Disposal Group, Including Discontinued Operation, Assets, Current	0	17,388
Total Current Assets	362,121	405,987
Investment in subsidiaries	0	0
Intercompany advances, net	0	0
Other Assets	4,659	19,053
Intangibles	31,000	38,013
Property and Equipment, net	78,683	79,659
Goodwill	361,680	421,019	457,534
Total Assets	838,143	963,731	1,096,434
Current Liabilities
Accounts payable	105,608	119,927
Accrued expenses	122,420	155,699
Current taxes, payable and deferred	17,588	12,634
Intercompany advances, net	0	0
Short-term debt and current maturities of long-term obligations	2,028	959
Disposal Group, Including Discontinued Operation, Liabilities	0	1,013
Total Current Liabilities	247,644	290,232
Long-Term Debt	45,092	19,372
Other Long-Term Obligations	82,589	88,805
Inercompany advances, net	0	0
Total Shareholders’ Equity	462,818	565,322	670,809	620,989
Total Liabilities and Shareholders’ Equity	838,143	963,731
The Company (Parent)
Current Assets
Cash and cash equivalents	14,047	7,340	1,401	5,774
Trade receivables, net	43,534	47,030
Installment receivables, net	0	0
Inventories, net	6,300	25,021
Deferred income taxes		0
Intercompany advance	8,392	10,007
Other current assets	6,380	8,082
Disposal Group, Including Discontinued Operation, Assets, Current		3,982
Total Current Assets	78,653	101,462
Investment in subsidiaries	1,430,070	1,409,482
Intercompany advances, net	1,115,121	1,049,235
Other Assets	3,095	16,955
Intangibles	123	286
Property and Equipment, net	32,382	29,632
Goodwill	0	0
Total Assets	2,659,444	2,607,052
Current Liabilities
Accounts payable	38,395	48,815
Accrued expenses	31,061	51,613
Current taxes, payable and deferred	1,336	1,632
Intercompany advances, net	43,972	81,141
Short-term debt and current maturities of long-term obligations	880	0
Disposal Group, Including Discontinued Operation, Liabilities		632
Total Current Liabilities	115,644	183,833
Long-Term Debt	35,326	15,351
Other Long-Term Obligations	31,821	28,551
Inercompany advances, net	2,013,835	1,813,995
Total Shareholders’ Equity	462,818	565,322
Total Liabilities and Shareholders’ Equity	2,659,444	2,607,052
Combined Guarantor Subsidiaries
Current Assets
Cash and cash equivalents	314	355	313	1,018
Trade receivables, net	20,020	21,979
Installment receivables, net	361	292
Inventories, net	25,418	25,784
Deferred income taxes		0
Intercompany advance	109	976
Other current assets	186	228
Disposal Group, Including Discontinued Operation, Assets, Current		13,406
Total Current Assets	46,408	63,020
Investment in subsidiaries	467,352	491,541
Intercompany advances, net	1,881,567	1,685,366
Other Assets	727	657
Intangibles	388	393
Property and Equipment, net	10,170	7,209
Goodwill	12,142	11,968
Total Assets	2,418,754	2,260,154
Current Liabilities
Accounts payable	8,699	6,363
Accrued expenses	20,940	20,533
Current taxes, payable and deferred	0	0
Intercompany advances, net	2,412	1,738
Short-term debt and current maturities of long-term obligations	275	0
Disposal Group, Including Discontinued Operation, Liabilities		381
Total Current Liabilities	32,326	29,015
Long-Term Debt	7,257	0
Other Long-Term Obligations	1,752	0
Inercompany advances, net	1,116,834	1,051,170
Total Shareholders’ Equity	1,260,585	1,179,969
Total Liabilities and Shareholders’ Equity	2,418,754	2,260,154
Combined Non-Guarantor Subsidiaries
Current Assets
Cash and cash equivalents	45,694	31,236	28,071	31,999
Trade receivables, net	70,101	85,198
Installment receivables, net	784	762
Inventories, net	103,173	107,139
Deferred income taxes		2,048
Intercompany advance	49,022	84,816
Other current assets	32,384	33,123
Disposal Group, Including Discontinued Operation, Assets, Current		0
Total Current Assets	301,158	344,322
Investment in subsidiaries	0	0
Intercompany advances, net	185,389	184,652
Other Assets	837	1,441
Intangibles	30,489	37,334
Property and Equipment, net	36,131	42,818
Goodwill	349,538	409,051
Total Assets	903,542	1,019,618
Current Liabilities
Accounts payable	58,514	64,749
Accrued expenses	74,910	88,188
Current taxes, payable and deferred	16,252	11,002
Intercompany advances, net	11,140	12,921
Short-term debt and current maturities of long-term obligations	873	959
Disposal Group, Including Discontinued Operation, Liabilities		0
Total Current Liabilities	161,689	177,819
Long-Term Debt	2,509	4,021
Other Long-Term Obligations	49,016	60,254
Inercompany advances, net	51,407	54,088
Total Shareholders’ Equity	638,921	723,436
Total Liabilities and Shareholders’ Equity	903,542	1,019,618
Eliminations
Current Assets
Cash and cash equivalents	0	0	$ 0	$ 0
Trade receivables, net	0	0
Installment receivables, net	0	0
Inventories, net	(2,084)	(2,383)
Deferred income taxes		0
Intercompany advance	(57,523)	(95,799)
Other current assets	(4,491)	(4,635)
Disposal Group, Including Discontinued Operation, Assets, Current		0
Total Current Assets	(64,098)	(102,817)
Investment in subsidiaries	(1,897,422)	(1,901,023)
Intercompany advances, net	(3,182,077)	(2,919,253)
Other Assets	0	0
Intangibles	0	0
Property and Equipment, net	0	0
Goodwill	0	0
Total Assets	(5,143,597)	(4,923,093)
Current Liabilities
Accounts payable	0	0
Accrued expenses	(4,491)	(4,635)
Current taxes, payable and deferred	0	0
Intercompany advances, net	(57,524)	(95,800)
Short-term debt and current maturities of long-term obligations	0	0
Disposal Group, Including Discontinued Operation, Liabilities		0
Total Current Liabilities	(62,015)	(100,435)
Long-Term Debt	0	0
Other Long-Term Obligations	0	0
Inercompany advances, net	(3,182,076)	(2,919,253)
Total Shareholders’ Equity	(1,899,506)	(1,903,405)
Total Liabilities and Shareholders’ Equity	$ (5,143,597)	$ (4,923,093)
Convertible Subordinated Debt | Convertible senior subordinated debentures at 4.125%, due in February 2027
Condensed Financial Statements, Captions [Line Items]
Interest rate (as a percent)	4.125%

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Supplemental Guarantor Information - Consolidating Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]
Net Cash Provided (Used) by Operating Activities	$ (5,378)	$ 8,892	$ 10,054
Investing Activities
Purchases of property and equipment	(7,522)	(12,327)	(14,158)
Proceeds from sale of property and equipment	23,117	2,521	885
Proceeds from sale of businesses	13,700	21,870	187,552
Other long-term assets	15,003	20,949	1,001
Other	78	569	65
Net Cash Provided for Investing Activities	44,376	33,582	175,345
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	219,603	255,658	352,455
Payments on revolving lines of credit and long-term borrowings	(232,808)	(286,712)	(545,874)
Proceeds from exercise of equity awards	2,402	480	512
Payments of Financing Costs	(1,954)	0	0
Payment of dividends	(1,589)	(1,584)	(1,581)
Net Cash Used by Financing Activities	(14,346)	(32,158)	(194,488)
Effect of exchange rate changes on cash	(3,528)	(1,170)	83
Increase (decrease) in cash and cash equivalents	21,124	9,146	(9,006)
Cash and cash equivalents at beginning of year	38,931	29,785	38,791
Cash and cash equivalents at end of year	60,055	38,931	29,785
The Company (Parent)
Condensed Financial Statements, Captions [Line Items]
Net Cash Provided (Used) by Operating Activities	(26,382)	(34,135)	11,566
Investing Activities
Purchases of property and equipment	(464)	(2,256)	(3,601)
Proceeds from sale of property and equipment	23,040	0	4
Proceeds from sale of businesses	0	0	0
Other long-term assets	14,488	20,926	833
Other	0	44,420	181,195
Net Cash Provided for Investing Activities	37,064	63,090	178,431
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	214,755	255,658	323,187
Payments on revolving lines of credit and long-term borrowings	(217,589)	(277,570)	(516,488)
Proceeds from exercise of equity awards	2,402	480	512
Payments of Financing Costs	(1,954)
Payment of dividends	(1,589)	(1,584)	(1,581)
Net Cash Used by Financing Activities	(3,975)	(23,016)	(194,370)
Effect of exchange rate changes on cash	0	0	0
Increase (decrease) in cash and cash equivalents	6,707	5,939	(4,373)
Cash and cash equivalents at beginning of year	7,340	1,401	5,774
Cash and cash equivalents at end of year	14,047	7,340	1,401
Combined Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net Cash Provided (Used) by Operating Activities	2,125	(511)	(68,792)
Investing Activities
Purchases of property and equipment	(704)	(1,811)	(4,020)
Proceeds from sale of property and equipment	52	0	13
Proceeds from sale of businesses	13,700	21,870	187,552
Other long-term assets	0	0	0
Other	5	(14,393)	(113,067)
Net Cash Provided for Investing Activities	13,053	5,666	70,478
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	0	0	0
Payments on revolving lines of credit and long-term borrowings	(15,219)	(5,113)	(2,391)
Proceeds from exercise of equity awards	0	0	0
Payments of Financing Costs	0
Payment of dividends	0	0	0
Net Cash Used by Financing Activities	(15,219)	(5,113)	(2,391)
Effect of exchange rate changes on cash	0	0	0
Increase (decrease) in cash and cash equivalents	(41)	42	(705)
Cash and cash equivalents at beginning of year	355	313	1,018
Cash and cash equivalents at end of year	314	355	313
Combined Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net Cash Provided (Used) by Operating Activities	18,774	14,105	1,891
Investing Activities
Purchases of property and equipment	(6,354)	(8,260)	(6,537)
Proceeds from sale of property and equipment	25	2,521	868
Proceeds from sale of businesses	0	0	0
Other long-term assets	515	23	168
Other	178	(25)	20
Net Cash Provided for Investing Activities	(5,636)	(5,741)	(5,481)
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	4,848	0	29,268
Payments on revolving lines of credit and long-term borrowings	0	(4,029)	(26,995)
Proceeds from exercise of equity awards	0	0	0
Payments of Financing Costs	0
Payment of dividends	0	0	(2,694)
Net Cash Used by Financing Activities	4,848	(4,029)	(421)
Effect of exchange rate changes on cash	(3,528)	(1,170)	83
Increase (decrease) in cash and cash equivalents	14,458	3,165	(3,928)
Cash and cash equivalents at beginning of year	31,236	28,071	31,999
Cash and cash equivalents at end of year	45,694	31,236	28,071
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net Cash Provided (Used) by Operating Activities	105	29,433	65,389
Investing Activities
Purchases of property and equipment	0	0	0
Proceeds from sale of property and equipment	0	0	0
Proceeds from sale of businesses	0	0	0
Other long-term assets	0	0	0
Other	(105)	(29,433)	(68,083)
Net Cash Provided for Investing Activities	(105)	(29,433)	(68,083)
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	0	0	0
Payments on revolving lines of credit and long-term borrowings	0	0	0
Proceeds from exercise of equity awards	0	0	0
Payments of Financing Costs	0
Payment of dividends	0	0	2,694
Net Cash Used by Financing Activities	0	0	2,694
Effect of exchange rate changes on cash	0	0	0
Increase (decrease) in cash and cash equivalents	0	0	0
Cash and cash equivalents at beginning of year	0	0	0
Cash and cash equivalents at end of year	$ 0	$ 0	$ 0

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Interim Financial Information - (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015		Dec. 31, 2014		Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 283,265	$ 283,776	$ 286,273	$ 289,024	$ 318,199	$ 320,520	$ 326,943	$ 304,501	$ 1,142,338		$ 1,270,163		$ 1,334,505
Gross profit	80,803	77,639	77,287	77,095	88,370	84,647	91,578	82,793	312,824		347,388		367,426
Earnings before income taxes	581	(790)	(6,492)	(5,039)	(8,385)	(26,375)	(11,580)	(16,870)	(11,740)		(63,210)		(43,459)
Net Loss from Continuing Operations	(2,929)	(7,790)	(8,217)	(7,514)	(6,685)	(28,725)	(14,455)	(18,895)	(26,450)		(68,760)		(54,334)
Net Earnings from Discontinued Operations	0	0	0	260	(2,700)	13,629	842	919	260		12,690		87,385
Net earnings (loss)	$ (2,929)	$ (7,790)	$ (8,217)	$ (7,254)	$ (9,385)	$ (15,096)	$ (13,613)	$ (17,976)	$ (26,190)		$ (56,070)		$ 33,051
Net loss from continuing operations - Basic (in dollars per share)	$ (0.09)	$ (0.24)	$ (0.26)	$ (0.23)	$ (0.21)	$ (0.90)	$ (0.45)	$ (0.59)	$ (0.82)		$ (2.15)		$ (1.70)
Net earnings (loss) from discontinued operations - Basic (in dollars per share	0.00	0.00	0	0.01	(0.08)	0.43	0.03	0.03	0.01		0.40		2.74
Net earnings (loss) per share - basic	(0.09)	(0.24)	(0.26)	(0.23)	(0.29)	(0.47)	(0.43)	(0.56)	(0.81)		(1.75)		1.04
Net loss from continuing operations assuming dilution (in dollars per share)	(0.09)	(0.24)	(0.26)	(0.23)	(0.21)	(0.90)	(0.45)	(0.59)	(0.82)	[1]	(2.15)	[1]	(1.70)	[1]
Net earnings (loss) from discontinued operations assuming dilution (in dollars per share)	0.00	0.00	0	0.01	(0.08)	0.42	0.03	0.03	0.01		0.39		2.73
Net Earnings (loss) per Share - Assuming Dilution (in dollars per share)	$ (0.09)	$ (0.24)	$ (0.26)	$ (0.23)	$ (0.29)	$ (0.47)	$ (0.43)	$ (0.56)	$ (0.81)	[1]	$ (1.75)	[1]	$ 1.03	[1]

[1] Net earnings (loss) per share assuming dilution calculated utilizing weighted average shares outstanding - basic in periods in which there is a net loss.

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Interim Financial Information - Narrative (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Quarterly Financial Information Disclosure [Abstract]
Loss Contingency Accrual, Net of Tax	$ (2,325,000)								$ (2,325,000)
Loss Contingency Accrual, Net of Tax, Per Diluted Share	$ (0.07)
Charges	$ 1,031,000		$ 689,000	$ 240,000	$ 2,705,000	$ 4,077,000	$ 2,090,000	$ 2,240,000	1,971,000	$ 11,112,000	$ 9,336,000	$ 11,395,000	$ 10,534,000
Restructuring charges, net of tax	$ 957,000		$ 635,000	$ 240,000	$ 2,732,000	$ 3,842,000	$ 1,711,000	$ 1,811,000
Restructuring charges, net of tax, per diluted share	$ 0.03		$ 0.02	$ 0.01	$ 0.09	$ 0.12	$ 0.05	$ 0.06
Product warranty expense						$ 9,256,000		$ 2,237,000
Product warranty expense, net of tax						$ 8,701,000		$ 2,100,000
Product warranty expense, net of tax, per diluted share						$ 0.27		$ 0.07
Write off of debt fees				$ 668,000				$ 1,070,000
Write off of debt fees, net of tax				$ 668,000				$ 1,070,000
Write off of debt fees per diluted share				$ 0.02				$ 0.03
Tax benefit (expense) from intra-period allocation		$ 3,400,000			$ (2,700,000)	$ 1,550,000			(140,000)	(7,175,000)	(3,455,000)
Tax benefit (expense) from intra-period allocation per diluted share		$ 0.11			$ (0.08)	$ 0.05
Loss Contingency Accrual, Period Increase (Decrease)									$ (2,325,000)	$ 11,493,000	7,264,000
Impairment of intangible assets					$ 4,788,000	$ 8,253,000					$ 1,523,000
Impairment of intangible assets, net of tax					$ 4,788,000	$ 8,253,000
Valuation tax expense per diluted share					$ 0.15	$ 0.26

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Schedule II - Valuation and Qualifying Accounts - (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance At Beginning of Period		$ 17,822	$ 23,144	$ 25,232
Charged To Cost And Expenses		754	1,765	3,684
Additions (Deductions) Describe	[1]	(5,297)	(7,087)	(5,772)
Balance At End of Period		13,279	17,822	23,144
Inventory obsolescense reserve [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance At Beginning of Period		17,617	15,135	13,085
Charged To Cost And Expenses		5,054	5,993	5,310
Additions (Deductions) Describe	[2]	(5,983)	(3,511)	(3,260)
Balance At End of Period		16,688	17,617	15,135
Tax valuation allowances [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance At Beginning of Period		133,912	117,790	97,406
Charged To Cost And Expenses		19,717	33,195	1,078
Additions (Deductions) Describe	[3]	(1,657)	(17,073)	19,306
Balance At End of Period		151,972	133,912	117,790
Accrued warranty cost [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance At Beginning of Period		30,738	27,393	21,451
Charged To Cost And Expenses		9,899	26,097	19,394
Additions (Deductions) Describe	[2]	(17,817)	(22,752)	(13,452)
Balance At End of Period		22,820	30,738	27,393
Accrued product liability [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance At Beginning of Period		23,194	20,368	20,334
Charged To Cost And Expenses		5,250	5,910	7,039
Additions (Deductions) Describe	[4]	(10,735)	(3,084)	(7,005)
Balance At End of Period		$ 17,709	$ 23,194	$ 20,368

[1] Uncollectible accounts written off, net of recoveries.

[2] Amounts written off or payments incurred.

[3] Other activity not affecting federal or foreign tax expense.

[4] Loss and loss adjustment.