10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

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 001-15103

INVACARE CORPORATION

(Exact name of registrant as specified in its charter)

Ohio	95-2680965
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
One Invacare Way, Elyria, Ohio	44035
(Address of principal executive offices)	(Zip Code)

(440) 329-6000

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 (the “Exchange Act”) 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 such filing requirements for the past 90 days.  Yes x  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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x No ¨

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 the definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act. (Check One):    Large accelerated filer ¨    Accelerated filer x  Non-accelerated filer  ¨ (Do not check if a smaller reporting company) Smaller reporting company ¨ Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

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

As of August 3, 2018, the registrant had 33,229,658 Common Shares and 6,357 Class B Common Shares outstanding.

Table of Contents

	Item	Page
PART I: FINANCIAL INFORMATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations	2	1
Financial Statements (Unaudited)	1
Condensed Consolidated Statement of Comprehensive Income (Loss) - Three and Six Months Ended June 30, 2018 and June 30, 2017		18
Condensed Consolidated Balance Sheets - June 30, 2018 and December 31, 2017		19
Condensed Consolidated Statement of Cash Flows - Six Months Ended June 30, 2018 and June 30, 2017		20
Notes to Condensed Consolidated Financial Statements - June 30, 2018		21
Quantitative and Qualitative Disclosures About Market Risk	3	59
Controls and Procedures	4	59
PART II: OTHER INFORMATION
Legal Proceedings	1	60
Risk Factors	1A	60
Unregistered Sales of Equity Securities and Use of Proceeds	2	61
Exhibits	6	62
Signatures		63

About Invacare Corporation

Invacare Corporation (NYSE: IVC) ("Invacare" or the "company") 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 perform 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), age related, bariatric) conditions. The company's products are important parts of care for people with a wide range of challenges, from those who are active and heading to work or school each day and may need additional mobility or respiratory support, to those who are cared for in residential care settings, at home and in rehabilitation centers. The company sells its products principally to home medical equipment providers with retail and e-commerce channels, residential care operators, dealers and government health services in North America, Europe and Asia/Pacific. For more information about the company and its products, visit the company's website at www.invacare.com. The contents of the company's website are not part of this Quarterly Report on Form 10-Q and are not incorporated by reference herein.

MD&A Overview

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

The discussion and analysis presented below is concerned with material changes in financial condition and results of operations between the periods specified in the condensed consolidated balance sheets at June 30, 2018 and December 31, 2017, and in the condensed consolidated statement of comprehensive income (loss) for the three and six months endedJune 30, 2018 and June 30, 2017. All comparisons presented are with respect to the same period last year, unless otherwise stated. This discussion and analysis should be read in conjunction with the consolidated financial statements and accompanying notes that appear elsewhere in this Quarterly Report on Form 10-Q and the MD&A included in the company's Annual Report on Form 10-K for the year ended December 31, 2017 and for some matters, SEC filings from prior periods may be useful sources of information.

OVERVIEW

Invacare is a multi-national company with integrated capabilities to design, produce and distribute durable medical equipment. The company makes products that help people move, breathe, rest and perform essential hygiene, and with those products the company supports people with congenital, acquired and degenerative conditions. The company’s products and solutions are important parts of care for people with a range of challenges, from those who are active and go to work or school each day and may need additional mobility or respiratory support, to those who are cared for in residential care settings, at home and in rehabilitation centers. The company operates in facilities in North America, Europe and Asia/Pacific, which are the result of dozens of acquisitions made over the company’s nearly forty-year history. Some of these acquisitions have been combined into integrated operating units, while others remain relatively independent.

Strategy

The company had a strategy to be a leading provider of durable medical equipment to providers in global markets by providing the broadest portfolio available. This strategy had not kept pace with certain reimbursement changes, competitive dynamics and company-specific challenges in recent years. Since 2015, the company has made a major shift in its strategy. The company has since been aligning its resources to produce solutions that address the most clinically complex needs thereby increasing the value of the company's offering. By focusing the company’s efforts to provide the best possible assistance and outcomes to the people and caregivers who use its products, the company aims to improve its financial condition for sustainable profit and growth. To execute this transformation, the company is undertaking a substantial three-phase multi-year transformation plan.

Transformation

The company has been executing a multi-year transformation to shift to its new strategy, especially in North America. This is expected to yield better financial results from the application of the company’s resources to products and solutions that provide greater healthcare value in clinically complex rehabilitation and post-acute care. The transformation is divided into the following three phases:

Phase One - Assess and Reorient

• Increase commercial effectiveness;

• Shift and narrow the product portfolio;

• Focus innovation on clinically complex solutions;

• Accelerate quality efforts on quality and excellence; and

• Develop and expand talent.

Phase Two - Build and Align

• Leverage commercial improvements;

• Optimize the business for cost and efficiency;

• Continue to improve quality systems;

• Launch new clinical product platforms; and

• Expand talent management and culture.

The company is currently in Phase Two of the transformation, focused primarily on North America, with gradual changes being undertaken in the Europe segment. By the end of this phase, the company expects growth in sales and gross profit, as well as an improvement in operating income and free cash flow. The company also is optimizing its infrastructure and improving efficiencies to streamline customer interactions and to reduce costs. The company expects Phase Two to extend through 2019 and to overlap with the beginning of Phase Three in certain areas.

Phase Three - Grow

• Lead in quality culture and operations excellence; and

• Grow above market.

By the end of phase three, the company expects continued improvements in net sales, operating margin, operating income and free cash flow.

1

MD&A Overview

STATUS OF THE CONSENT DECREE

On July 24, 2017, following its reinspection of the Corporate and Taylor Street facilities, the Food and Drug Administration ("FDA") notified the company that it was in substantial compliance with the Federal Food, Drug and Cosmetic Act ("FDA Act"), FDA regulations and the terms of the consent decree and, at that time, the company was permitted to resume full operations at those facilities including the resumption of unrestricted sales of products made in those facilities.

The consent decree will continue in effect for a minimum of five years from July 2017, during which time the company’s Corporate and Taylor Street facilities must complete two semi-annual audits in the first year and then annual audits over the next four years performed by a company-retained expert audit firm. The expert audit firm will determine whether the facilities remain in continuous compliance with the FDA Act, regulations and the terms of the consent decree. The FDA has the authority to inspect these facilities and any other FDA registered facility, at any time.

For a complete description of the consent decree, see the “Contingencies” note to the financial statements contained in Item 1 of this Quarterly Report on Form 10-Q and “Forward-Looking Statements” contained below in this Item.

OUTLOOK

As part of the company's transformation, the company expects to continue to make significant investments, strategically reduce sales in certain areas, refocus resources away from less accretive activities and evaluate its global infrastructure for opportunities to drive efficiency. The company expects to see improved results in 2018 from actions executed to date and additional actions as the company continues to streamline operations, resize and reshape the organization, especially in North America, around its new business mix and size. By executing this strategy and making these operational improvements, the company expects long-term benefits for the company’s stakeholders. The company’s pursuit of profitable sales growth and cost reductions are expected to drive its longer-term goal of improved operating income and positive Earnings Before Interest Taxes Depreciation and Amortization.

Positive sales growth in mobility and seating products, both year-over-year and sequentially, is a key metric and an indicator of the progress of the transformation of the North America/Home Medical Equipment (NA/HME) segment. The company expects to increase Selling, General and Administrative ("SG&A") investment for the remainder of the year to stimulate growth and brand awareness for its portable oxygen concentrator. In the Institutional Products Group (IPG) segment, the company does not anticipate sequential sales growth this year as it expects its new strategic selling approach to continue to take time to yield results. As noted previously, the company is gradually applying the transformation to the Europe segment, which may continue to reduce the segment's sales throughout the remainder of 2018 as it shifts its product mix toward more clinically valued, higher-margin products.

The company remains positive about the growth potential of its businesses. Results of mobility and seating and lifestyles product categories reflect this. Good products and stable markets in other areas support the transformation we are executing in Europe and IPG and in the respiratory product category. In the near-term, the company anticipates an unfavorable impact on its results due to increases in tariffs and freight costs. The specific impact is not currently estimated as policy and commodity prices are only beginning to be implemented and management has not estimated its ability to offset any increases with internal actions. SG&A will increase somewhat, especially in NA/HME as the company undertakes the promotion of certain product categories, including its respiratory products. The company will continue to make capital investments to grow the business. Working capital will expand as the business grows, especially in support of increases in mobility and seating sales, which require substantial working capital and demonstration units to be effective. The company continues to estimate that cash flow in 2018 will be similar to 2017 including increased capital spending. The company believes its cash balances and available borrowing capacity should be sufficient to fund its transformation.

The company will continue to emphasize a culture of quality excellence, profitable sales growth and the achievement of its long-term objectives.

2

MD&A Net Sales

RESULTS OF OPERATION - NET SALES

($ in thousands USD)	2Q18*	2Q17	Reported % Change		Foreign Exchange % Impact	Constant Currency % Change
Europe	138,896	128,485	8.1		10.4	(2.3	)
NA/HME	79,867	77,689	2.8		0.5	2.3
IPG	13,704	15,320	(10.6	)	0.2	(10.8	)
Asia/Pacific	13,685	12,023	13.8		0.7	13.1
Consolidated	246,152	233,517	5.4		5.9	(0.5	)

($ in thousands USD)	YTD 2Q18	YTD 2Q17	Reported % Change		Foreign Exchange % Impact	Constant Currency % Change
Europe	270,210	247,993	9.0		11.4	(2.4	)
NA/HME	159,649	161,951	(1.4	)	0.4	(1.8	)
IPG	28,591	31,693	(9.8	)	0.2	(10.0	)
Asia/Pacific	24,762	23,603	4.9		1.9	3.0
Consolidated	483,212	465,240	3.9		6.4	(2.5	)

*Date format is quarter and year in each instance. “YTD” means the first six months of the year.

The table above provides net sales change as reported and as adjusted to exclude the impact of foreign exchange translation (constant currency net sales). “Constant currency net sales" is a non-Generally Accepted Accounting Principles ("GAAP") financial measure, which is defined as net sales excluding the impact of foreign currency translation. The current year's functional currency net sales are translated using the prior year's foreign exchange rates. These amounts are then compared to the prior year's sales to calculate the constant currency net sales change. “Constant currency sequential net sales” is a non-GAAP financial measure in which a given quarter’s net sales are compared to the most recent prior quarter’s net sales with each quarter’s net sales translated at the foreign exchange rates for the quarter ended March 31, 2018. Management believes that both financial measures provide meaningful information for evaluating the core operating performance of the company.

Constant currency net sales performance drivers by segment:

Europe - The 2Q18 and YTD 2Q18 declines in constant currency net sales compared to the same periods last year were driven by all product categories as the company gradually applies its transformation strategy to this segment to focus on more clinically valued, higher-margin products.

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

Constant currency net sales for 2Q18 increased, driven largely by increases in mobility and seating products as the company continued to benefit from exiting the injunctive phase of the consent decree. Respiratory product sales declined compared to 2Q17 in stationary concentrators and HomeFill^® systems partially offset by an increase in portable oxygen concentrators. The YTD 2Q18 decline in constant currency net sales compared to the first half last year was driven by all product categories except for mobility and seating products.

Institutional Products Group (IPG) - Constant currency 2Q18 and YTD 2Q18 net sales decreased compared to the same periods last year principally due to lower bed product sales which were negatively impacted by a 2Q18 supply disruption that was resolved by the end of 2Q18.

Asia/Pacific - Constant currency net sales increased for 2Q18 and YTD 2Q18 compared to the same periods last year principally driven by net sales increases for mobility and seating products.

3

MD&A Net Sales

The following tables provide net sales at reported rates for the quarters ended June 30, 2018 and March 31, 2018, respectively, and net sales for the quarter ended June 30, 2018 as translated at the foreign exchange rates for the quarter ended March 31, 2018 with each then compared to each other (constant

currency sequential net sales). The company began this disclosure in 2017 to illustrate the effect of its transformation on its segments and continues to do so while the transformation continues, and this is useful.

	2Q18 at Reported Foreign Exchange Rates		Foreign Exchange Translation Impact		2Q18 at 1Q18 Foreign Exchange Rates		1Q18 at 1Q18 Foreign Exchange Rates		Sequential Growth $			Sequential Growth %
Europe	$	138,896	$	197	$	139,093	$	131,251	$	7,842		6.0	%
NA/HME	79,867		186		80,053		79,794		259			0.3
IPG	13,704		15		13,719		14,887		(1,168		)	(7.8	)
Asia Pacific	13,685		443		14,128		11,066		3,062			27.7
Consolidated	$	246,152	$	841	$	246,993	$	236,998	$	9,995		4.2	%

The net sales amounts in the above table are converted at Q1 2018 foreign exchange rates so that the sequential change in net sales can be shown, excluding the impact of changes in foreign currency exchange rates.

As indicative of the progress of the company's transformation, sequential net sales improved for all segments except the IPG segment. The Europe sequential improvement

was due to increased net sales in all product categories except respiratory, which was down slightly. The NA/HME sequential improvement was the fourth consecutive quarter of flat to increasing sequential growth in the segment, driven by a greater than 10% increase in mobility and seating products principally offset by respiratory product sales declines. The IPG decline was driven by most product categories.

4

MD&A Net Sales

The company realized a favorable impact from sales mix attributable to increased mobility and seating products, which comprise most of the company's clinically complex product portfolio. Sales mix increased to 40% from 38% for constant currency net sales by product for the second quarter of 2018 as compared to same period last year.

This favorable net sales mix shift is the result of the company's continued transformation efforts, especially where the company has shifted the product portfolio and alignment of resources to focus on clinically complex solutions.

5

MD&A Gross Profit

GROSS PROFIT

Gross profit dollars for 2Q18 increased compared to 2Q17 principally due to favorable foreign currency and reduced warranty expense partially offset by increased freight expense and to a lesser extent R&D expense. Gross profit as a percentage of net sales was lower by 40 basis points compared to 2Q17 primarily as a result of higher freight costs in the NA/HME and Europe segments incurred to expedite the resolution of backorders, which in Europe were the result of facility consolidation.

Gross profit dollars for YTD 2Q18 increased compared to YTD 2Q17 principally due to favorable foreign currency and reduced R&D and warranty expense, partially offset by increased freight expense. Gross profit as a percentage of net sales was lower by 30 basis points compared to the same period last year due to freight costs increases offset by reduced warranty and R&D costs.

Gross profit and gross margin drivers by segment:

Europe - Gross margin as a percentage of net sales for 2Q18decreased0.9 of a percentage point, while gross profit dollars increased $2,006,000, compared to 2Q17. The increase in gross profit dollars was driven by favorable foreign currency, partially offset by unfavorable manufacturing variances, increased freight costs related to product transfers associated with facility consolidation and increased R&D expense.

Gross margin as a percentage of net sales for YTD 2Q18decreased0.2 of a percentage point, while gross profit dollars increased $6,025,000, compared to the same period last year. The increase in gross profit dollars was driven by favorable foreign currency partially offset by unfavorable manufacturing variances, increased R&D and freight expense.

NA/HME - Gross margin as a percentage of net sales for 2Q18decreased1.4 percentage points, while gross profit dollars decreased $477,000, compared to 2Q17. The decrease in gross profit dollars was primarily due to increased freight costs partially offset by lower warranty and R&D expenses.

Gross margin as a percentage of net sales for YTD 2Q18decreased2.0 percentage points, while gross profit dollars decreased $3,778,000, compared to YTD 2Q17. The decrease in gross profit dollars was primarily due to unfavorable net sales mix, net sales volume declines and increased freight costs.

IPG - Gross margin as a percentage of net sales for 2Q18increased0.2 of a percentage point, and gross profit dollars decreased $580,000, compared to 2Q17. The decrease in gross profit dollars was driven principally by lower net sales partially offset by reduced warranty expense.

Gross margin as a percentage of net sales for YTD 2Q18decreased0.3 of a percentage point, and gross profit dollars decreased $1,293,000, compared to YTD 2Q17. The decrease in gross profit dollars was driven by lower net sales partially offset by reduced warranty expense.

Asia/Pacific - Gross margin as a percentage of net sales for 2Q18increased5.8 percentage points, while gross profit dollars increased $1,782,000, compared to 2Q17. The increase in gross profit dollars was primarily due to higher net sales, favorable manufacturing variance and reduced R&D expense.

Gross margin as a percentage of net sales for YTD 2Q18increased6.4 percentage points, while gross profit dollars increased $3,250,000, compared to YTD 2Q17. The increase in gross profit dollars was primarily due to increased net sales, favorable net sales mix and reduced research and development expenses.

6

MD&A Gross Profit

Sequential quarterly gross margin as a percentage of net sales decreased 0.7 of a percentage point. The decrease in gross margin percentage was driven by unfavorable sales mix, as a result of reduced Europe net sales and increased freight and R&D expense, partially offset by favorable foreign currency and reduced warranty expense. Sequential gross profit as a percentage of net sales declined in all segments except NA/HME.

Sequential quarterly gross profit dollars increased $829,000. The increase in gross profit dollars was primarily attributable to favorable foreign currency and lower warranty expense, partially offset by increased freight and R&D expense. Sequential gross profit dollars increased in all segments except IPG.

7

MD&A SG&A

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

($ in thousands USD)	2Q18	2Q17	Reported Change		Foreign Exchange Impact	Constant Currency Change
SG&A Expenses - $	73,763	75,721	(1,958	)	3,103	(5,061	)
SG&A Expenses - % change			(2.6	)	4.1	(6.7	)
% to net sales	30.0	32.4

($ in thousands USD)	YTD 2Q18	YTD 2Q17	Reported Change		Foreign Exchange Impact	Constant Currency Change
SG&A Expenses - $	145,027	148,234	(3,207	)	6,657	(9,864	)
SG&A Expenses - % change			(2.2	)	4.5	(6.7	)
% to net sales	30.0	31.9

SG&A expense excluding the impact of foreign currency translation, which is referred to as "constant currency SG&A", decreased for 2Q18 and YTD 2Q18 compared to the same periods last year primarily due to reduced employment costs.

SG&A expense drivers by segment:

Europe - SG&A expenses for 2Q18increased by 12.8%, or $3,913,000, compared to 2Q17 with foreign currency translation increasing SG&A expenses by approximately $2,920,000, or 9.6%. Constant currency SG&A expenses increased $993,000, or 3.2%. The increased expense was primarily attributable to unfavorable foreign currency transactions as well as higher employment costs and depreciation expense.

SG&A expenses for YTD 2Q18increased by 10.7%, or $6,437,000, compared to YTD 2Q17 with foreign currency translation increasing SG&A expenses by approximately $6,192,000, or 10.3%. Constant currency SG&A expenses increased $245,000, or 0.4%. The increased expense was primarily attributable to higher consulting and depreciation expense partially offset by favorable foreign currency transactions.

NA/HME - SG&A expenses for 2Q18decreased13.8%, or $4,454,000, compared to 2Q17 with foreign currency translation having an immaterial impact. Constant currency SG&A expenses decreased $4,609,000, or 14.2% driven primarily by decreased employment costs and favorable foreign currency transactions.

SG&A expenses for YTD 2Q18decreased14.0%, or $9,042,000, compared to YTD 2Q17 with foreign currency translation having an immaterial impact. Constant currency SG&A expenses decreased $9,357,000, or 14.5% driven primarily by decreased employment costs.

IPG - SG&A expenses for 2Q18decreased10.0%, or $272,000, compared to 2Q17 with foreign currency translation having an immaterial impact. Constant currency SG&A expenses decreased $273,000 or 10.1%. The decline in expense was primarily related to lower employment costs.

SG&A expenses for YTD 2Q18decreased12.4%, or $684,000, compared to YTD 2Q17 with foreign currency translation having an immaterial impact. Constant currency SG&A expenses decreased $690,000 or 12.5%. The decline in expense was primarily related to lower employment costs.

Asia/Pacific - SG&A expenses for 2Q18increased2.5%, or $94,000, compared to 2Q17 with foreign currency translation increasing SG&A expenses $27,000, or 0.7%. Constant currency SG&A expenses increased $67,000, or 1.8%. The increase in expense was primarily related to unfavorable foreign currency transactions.

SG&A expenses for YTD 2Q18increased2.2%, or $160,000, compared to YTD 2Q17 with foreign currency translation increasing SG&A expenses $144,000, or 2.0%. Constant currency SG&A expenses increased $16,000, or 0.2%. The increase in expense was primarily related to unfavorable foreign currency transactions principally offset by lower employment costs.

Other - SG&A expenses for 2Q18decreased19.7%, or $1,239,000, compared to 2Q17. SG&A expenses for YTD 2Q18decreased0.7%, or $78,000, compared to YTD 2Q17. Both the quarter and year-to-date decreases were driven primarily by decreased employment costs, including equity compensation expense.

8

MD&A Operating Income (Loss)

OPERATING INCOME (LOSS)

($ in thousands USD)	2Q18		2Q17		$ Change		% Change		YTD 2Q18		YTD 2Q17		$ Change		% Change
Europe	5,171		7,077		(1,906	)	(26.9	)	11,765		12,177		(412	)	(3.4	)
NA/HME	(8,420	)	(12,395	)	3,975		32.1		(16,558	)	(21,821	)	5,263		24.1
IPG	1,163		1,472		(309	)	(21.0	)	2,761		3,370		(609	)	(18.1	)
Asia/Pacific	1,570		(118	)	1,688		1,430.5		2,542		(548	)	3,090		563.9
All Other	(5,901	)	(6,735	)	834		12.4		(11,674	)	(11,245	)	(429	)	(3.8	)
Charges related to restructuring	(344	)	(4,987	)	4,643		93.1		(745	)	(8,270	)	7,525		91.0
Consolidated Operating Loss	(6,761	)	(15,686	)	8,925		56.9		(11,909	)	(26,337	)	14,428		54.8

For 2Q18 and YTD 2Q18, the decrease in consolidated operating loss was impacted by improved segment operating income (loss) in NA/HME and Asia Pacific segments and reduced restructuring charges.

Operating income (loss) by segment:

Europe - Operating income for 2Q18 decreased compared to 2Q17 principally due to unfavorable manufacturing variances and increased freight costs related to product transfers associated with the previously announced facility consolidations, and increased R&D and SG&A costs, partially offset by favorable foreign currency. Operating income for YTD 2Q18 decreased compared to YTD 2Q17 primarily driven by the same items noted for the quarter.

NA/HME - Operating loss for 2Q18 improved compared to 2Q17 primarily related to reduced SG&A, warranty and research and development expense, partially offset by increased freight costs. Operating loss for YTD 2Q18 decreased compared to YTD 2Q17 primarily due to reduced SG&A, R&D and warranty expense, partially offset by increased freight costs.

IPG - Operating income for 2Q18 and YTD 2Q18 declined compared to the same periods last year principally due to a net sales decline partially offset by reduced SG&A and warranty expense.

Asia/Pacific - Operating income for 2Q18 increased compared to 2Q17 as a result of net sales increase, reduced R&D and manufacturing expense. Operating income for YTD 2Q18 increased compared to YTD 2Q17 as a result of increased net sales and reduced R&D and manufacturing costs.

All Other - Operating loss for 2Q18 decreased compared to 2Q17 primarily due to reduced SG&A expense, driven by lower equity compensation expense, partially offset by unfavorable intercompany profit in inventory eliminations as a result of higher inventory levels. Operating loss for YTD 2Q18 increased compared to YTD 2Q17 primarily due to unfavorable intercompany profit in inventory eliminations as a result of higher inventory levels.

Charge Related to Restructuring Activities

Restructuring charges totaled $745,000 for YTD 2Q18 principally related to severance costs. Restructuring charges were incurred in the Europe ($401,000), Asia/Pacific ($258,000) and NA/HME ($86,000) segments.

Restructuring charges totaled $8,270,000 for YTD 2Q17 which related principally to severance and contract termination costs incurred in the NA/HME segment ($6,170,000) and severance in the Europe ($1,204,000) and Asia/Pacific ($896,000) segments. Significant charges were incurred YTD 2Q17 due to the company's decision to close one of its China locations. Most of the outstanding restructuring accruals at June 30, 2018 are expected to be paid out in the next twelve months.

9

MD&A Other Items

OTHER ITEMS

Net Gain (Loss) on Convertible Debt Derivatives

($ in thousands USD)	Change in Fair Value - Gain (Loss)
	2Q18		2Q17		YTD 2Q18		YTD 2Q17
Convertible Note Hedge Assets	11,467		11,591		15,753		5,761
Convertible Debt Conversion Liabilities	(11,446	)	(12,642	)	(15,629	)	(5,911	)
Net Gain (Loss) on Convertible Debt Derivatives	21		(1,051	)	124		(150	)

The company recognized net gains of $21,000 and $124,000 in 2Q18 and YTD 2Q18, respectively, compared to net losses of $1,051,000 and $150,000 in 2Q17 and YTD 2Q17, respectively, related to the fair value of convertible debt derivatives. See "Long-Term Debt" in the notes to the Consolidated Financial Statements included elsewhere in this report for more detail.

Interest

($ in thousands USD)	2Q18		2Q17		$ Change		% Change
Interest Expense	6,964		4,645		2,319		49.9
Interest Income	(136	)	(49	)	(87	)	177.6

($ in thousands USD)	YTD 2Q18		YTD 2Q17		$ Change		% Change
Interest Expense	13,926		9,163		4,763		52.0
Interest Income	(385	)	(137	)	(248	)	181.0

The increase in interest expense for 2Q18 and YTD 2Q18 compared to the same periods last year was primarily due to interest payable on the convertible notes issued in the second quarter of 2017.

Income Taxes

The company had an effective tax rate of 21.9% and 21.0% on losses before tax from continuing operations for 2Q18 and YTD 2Q18 compared to an expected benefit of 21.0% on the continuing operations pre-tax loss for each period. The company had an effective tax rate of 10.2% and 13.4% on losses before tax from continuing operations for 2Q17 and YTD 2Q17 compared to an expected benefit at the U.S. statutory rate of 35.0% on the continuing operations pre-tax loss for each period. The company's effective tax rate for the three and six months endedJune 30, 2018 and June 30, 2017 was unfavorable as compared to the U.S. federal statutory rate expected benefit, principally due to the negative impact of the company not being able to record tax benefits related to the significant losses in countries which had tax valuation allowances. The effective tax rate was increased for the three and six months endedJune 30, 2018 and decreased for the three months ended June 30, 2017 by certain taxes outside the United States, excluding countries with tax valuation allowances, that were at an effective rate higher than the U.S. statutory rate for the three and six months endedJune 30, 2018 and lower than the U.S. statutory rate for the three months ended June 30, 2017. See "Income Taxes" in the notes to the Consolidated Financial Statements included elsewhere in this report for more detail.

10

MD&A Liquidity and Capital Resources

LIQUIDITY AND CAPITAL RESOURCES

The company continues to maintain an adequate liquidity position through its cash balances and unused bank lines of credit (see Long-Term Debt in the Notes to Condensed Consolidated Financial Statements included in this report).

Key balances on the company's balance sheet and related metrics:

($ in thousands USD)	June 30, 2018	December 31, 2017	$ Change		% Change
Cash and cash equivalents	122,398	176,528	(54,130	)	(30.7	)
Working capital (1)	218,450	238,850	(20,400	)	(8.5	)
Total debt (2)	300,276	301,415	(1,139	)	(0.4	)
Long-term debt (2)	298,600	299,375	(775	)	(0.3	)
Total shareholders' equity	385,180	423,294	(38,114	)	(9.0	)
Credit agreement borrowing availability (3)	38,657	39,949	(1,292	)	(3.2	)

⁽¹⁾  Current assets less current liabilities.

⁽²⁾  Long-term debt and Total debt include debt issuance costs recognized as a deduction from the carrying amount of debt liability and debt discounts classified as debt.

⁽³⁾  Reflects the combined availability of the company's North American and European asset-based revolving credit facilities. The change in borrowing availability is due to changes in the calculated borrowing base.

The company's cash and cash equivalents balances were $122,398,000 and $176,528,000 at June 30, 2018 and December 31, 2017, respectively. The decrease in cash was the result of normal operations, which includes losses in certain areas and seasonal variations in operations. Debt repayments, acquisitions, divestitures, the timing of vendor payments, the timing of customer rebate 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 cash reported at the end of a given period may be materially different than cash levels during a given period. 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 June 30, 2018, was $2,243,000. The company continues the procedural discontinuation of its discontinued operations there, which until completed, restricts access to certain cash balances.

The company's total debt outstanding, inclusive of the debt discount related to debentures included in equity as well as the debt discount and fees associated with the company's Convertible Senior Notes due 2021 and 2022, decreased by $1,139,000 to $300,276,000 at June 30, 2018 from $301,415,000 as of December 31, 2017. See "Long-Term Debt" in the Notes to Condensed Consolidated Financial Statements for more details regarding the company's convertible notes and credit facilities.

Based on the company's current expectations, the company believes that its cash balances and available borrowing capacity under its credit facilities should be sufficient to meet working capital needs, capital requirements, and commitments for at least

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 or if the company's transformation takes longer than expected, the company may require additional financing, or may be unable to comply with its obligations under the credit facilities, and its lenders could demand repayment of any amounts outstanding under the company's credit facilities.

The company also has an agreement with De Lage Landen, Inc. (“DLL”), a third-party financing company, to provide lease financing to the company's U.S. 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 its credit facilities could increase.

While there is general concern about the potential for rising interest rates, the company expects that it will be able to absorb modest rate increases in the months ahead without any material impact on its liquidity or capital resources. The weighted average interest rate on revolving credit borrowings, excluding capital leases, was 4.78% for the for the three and six months endedJune 30, 2018 compared to 4.84% for the year ended December 31, 2017.

See "Long-Term Debt" in the Notes to the Consolidated Financial Statements for more details regarding the company's credit facilities.

11

MD&A Liquidity and Capital Resources

CAPITAL EXPENDITURES

The company estimates that capital investments for 2018 could approximate between $20,000,000 and $25,000,000, compared to actual capital expenditures of $14,569,000 in 2017. The anticipated increase relates primarily to the company's planned investments to transform the company. The terms of the company's credit facilities limit the company's annual capital expenditures to $35,000,000. As of June 30, 2018, the company has material capital expenditure commitments outstanding, consisting primarily of computer systems contracts. See Item 7. Contractual Obligations of the company's Annual Report on Form 10-K for the year ended December 31, 2017.

DIVIDEND POLICY

On May 17, 2018, the company's Board of Directors declared a quarterly cash dividend of $0.0125 per Common Share and $0.011364 per Class B Common Share to shareholders of record as of July 6, 2018, which was paid on July 20, 2018. At the current rate, the cash dividend will amount to $0.05 per Common Share and $0.045 per Class B Common Share on an annual basis, subject to Board of Directors approval of future dividend payments. The company is considering discontinuing the regular quarterly dividend on the Class B Common Shares, as less than 7,000 Class B Common Shares remain outstanding, which would allow the company to save on the administrative costs and compliance expenses associated with that dividend. Holders of Class B Common Shares are entitled to convert their shares into Common Shares at any time on a share-for-share basis and would be eligible for any Common Share dividends declared.

12

MD&A Cash Flows

CASH FLOWS

The cash used by operating activities for the six months ended June 30, 2018 was driven by a net loss, decreased accrued expenses and increased inventory partially offset by increased accounts payable. The decrease in cash used by operating activities in the first six months of 2018 compared to the same period last year was principally driven by a reduced net loss partially offset by net changes in other working capital items.

The decrease in cash flows used by investing activities for the first six months of 2018 as compared to the same period last year was primarily related to lower purchases of property and equipment.

Cash flows used by financing activities in the first six months of 2018 are primarily attributable to dividends and payments on capital leases. Cash flows provided by financing activities in the first six months of 2017 reflect net proceeds received due to the issuance of the company's Convertible Senior Notes due 2022, including the net proceeds used for the related convertible note hedge transactions, payment of financing costs and warrants. These proceeds were partially offset by the repayment of $13,350,000 in aggregate principal amount of the company's convertible debentures due 2027.

13

MD&A Cash Flows

Free cash flow is a non-GAAP financial measure and is reconciled to the corresponding GAAP measure as follows:

($ in thousands USD)	2Q18		2Q17		YTD 2Q18		YTD 2Q17
Net cash used by operating activities	(22,447	)	(20,138	)	(47,098	)	(50,468	)
Plus: Sales or property and equipment	27		180		37		190
Less: Purchases of property and equipment	(2,162	)	(2,470	)	(4,227	)	(5,504	)
Free Cash Flow	(24,582	)	(22,428	)	(51,288	)	(55,782	)

Free cash flow for the first six months 2018 and 2017 was negatively impacted by the same items that affected cash flows used by operating activities. Free cash flow is a non-GAAP financial measure that is comprised of net cash used by operating activities plus purchases of property and equipment less 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.).

With the anticipation of commercial effectiveness and resulting sales growth, the company expects increased working capital which, if realized, would support investments for growth, especially growth of NA/HME mobility and seating products. This would include investments in demonstration units and SG&A expense, and support the extended quote to cash process for power wheelchairs. Generally, the first half of the year is cash consumptive and impacted by significant disbursements related to annual customer rebate payments which normally occur in the first quarter of the year and, to lesser extent, into the second quarter of the year. In addition, the second quarter of the year represents the period annual employee bonuses are paid, if earned. Investment in inventory is historically heavy in the first half of the year with planning around the company's supply chain to fulfill shipments in the second half of the year and can be impacted by footprint rationalization projects. The company also expects to increase its capital expenditures in 2018 as compared to the investment level in 2017. As a result, historically, the company realizes stronger cash flow in the second half of the year versus the first half of the year. On that basis and considering anticipated increased capital spending, the company anticipates its cash flow usage and seasonality for 2018 will be similar to 2017.

The company's approximate cash conversion days at June 30, 2018, December 31, 2017 and June 30, 2017 are as follows:

The increase in the most current days in receivables compared to prior periods was driven by higher receivables in the quarter ended June 30, 2018 compared to the prior periods shown and impacted by the sales growth in mobility and seating products, which can have extended collection terms than other products. The days in inventory increased from the seasonal low at December 31, 2017. The days in inventory for the quarter ended June 30, 2018 were favorable to the quarter ended June 30, 2017 due to better inventory velocity over the prior year.

Days in receivables are equal to current quarter net current receivables divided by trailing four quarters of net sales multiplied

by 365 days. Days in inventory and accounts payable are equal to current quarter net inventory and accounts payable, respectively, divided by trailing four quarters of cost of sales multiplied by 365 days. Total cash conversion days are equal to days in receivables plus days in inventory less days in accounts payable.

The company provides a summary of days of cash conversion for the components of working capital so investors may see the rate at which cash is disbursed, collected and how quickly inventory is converted and sold.

14

MD&A Accounting Estimates and Pronouncements

ACCOUNTING ESTIMATES AND PRONOUNCEMENTS

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, thus, actual results could differ from these estimates. Please refer to the Critical Accounting Estimates section within MD&A of company's Annual Report on Form 10-K for the period ending December 31, 2017 as well as the revenue recognition and warranty disclosure below.

Revenue Recognition

The company recognizes revenues when control of the product or service is transferred to unaffiliated customers. Revenues from Contracts with Customers, ASC 606, provides guidance on the application of generally accepted accounting principles to revenue recognition issues. The company has concluded that its revenue recognition policy is appropriate and in accordance with GAAP under ASC 606.

All of the company’s product-related contracts, and a portion related to services, have a single performance obligation, which is the promise to transfer an individual good or service, with revenue recognized at a point in time. Certain service-related contracts contain multiple performance obligations that require the company to allocate the transaction price to each performance obligation. For such contracts, the company allocates revenue to each performance obligation based on its relative standalone selling price at inception of the contract. The company determined the standalone selling price based on the expected cost-plus margin methodology. Revenue related to the service contracts with multiple performance obligations is recognized over time. To the extent performance obligations are satisfied over time, the company defers revenue recognition until the performance obligations are satisfied.

The determination of when and how much revenue to recognize can require the use of significant judgment. Revenue is recognized when obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the company’s products and services to the customer.

Revenue is measured as the amount of consideration expected to be received in exchange for transferring the product or providing services. The amount of consideration received and recognized as revenue by the company can vary as a result of variable consideration terms included in the contracts such as customer rebates, cash discounts and return policies. Customer rebates and cash discounts are estimated based on the most likely amount principle and these estimates are based on historical experience and anticipated performance. Customers have the right to return product within the company’s normal terms policy, and as such, the company estimates the expected returns based on an analysis of historical experience. The company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration the company expects to receive changes or when the consideration becomes fixed. The company generally does not expect that there will be significant changes to its estimates of variable consideration (see Receivables in the Notes to the Consolidated Financial Statements include elsewhere in this report).

Depending on the terms of the contract, the company may defer recognizing a portion of the revenue at the end of a given period as the result of title transfer terms that are based upon delivery and or acceptance which align with transfer of control of the company’s products to its customers.

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 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. The company’s payment terms are for relatively short periods and thus do not contain any element of financing. Additionally, no contract costs are incurred that would require capitalization and amortization.

15

MD&A Accounting Estimates and Pronouncements

Sales, value-added, and other taxes the company collects concurrent with revenue producing activities are excluded from revenue. Incidental items that are immaterial in the context of the contract are recognized as expense. Shipping and handling costs are included in cost of products sold.

The majority of the company’s warranties are considered assurance-type warranties and continue to be recognized as expense when the products are sold (see Current Liabilities in the Notes to the Consolidated Financial Statements include elsewhere in this report). These warranties cover 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. In addition, the company has sold extended warranties that, while immaterial, require the company to defer the revenue associated with those warranties until earned. 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 accruals 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 require additional warranty reserve provisions. See Accrued Expenses in the Notes to the Consolidated Financial Statements for a reconciliation of the changes in the warranty accrual. In addition, the company has sold extended warranties that, while immaterial, require the company to defer the revenue associated with those warranties until earned. The company has established procedures to appropriately defer such revenue.

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 contained in this Quarterly Report on Form 10-Q.

16

MD&A Forward-Looking Statements

FORWARD-LOOKING STATEMENTS

This Form 10-Q 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: adverse effects of the company’s consent decree of injunction with the U.S. Food and Drug Administration (FDA), including but not limited to, compliance costs, inability to rebuild negatively impacted customer relationships, unabsorbed capacity utilization, including fixed costs and overhead; any circumstances or developments that might adversely impact the third-party expert auditor’s required audits of the company’s quality systems at the facilities impacted by the consent decree, including any possible failure to comply with the consent decree or FDA regulations; adverse effects of regulatory proceedings or the company's failure to comply with regulatory requirements or failure to receive regulatory clearance or approval for the company's products in the United States or abroad; adverse effects of regulatory or governmental inspections of company facilities at any time and governmental warning letters or enforcement actions; circumstances or developments that may make the company unable to implement or realize the anticipated benefits, or that may increase the costs, of its current business initiatives; possible adverse effects on the company's liquidity that may result from delays in the implementation or realization of benefits of its current business initiatives, or from any requirement to settle conversions of its outstanding convertible notes in cash; product liability or warranty claims; product recalls, including more extensive warranty or recall experience than expected; possible adverse effects of being leveraged, including interest rate or event of default risks; exchange rate fluctuations, particularly in light of the relative importance of the company's foreign operations to its overall financial performance and including the existing and potential impacts from the Brexit referendum; adverse impacts of new tariffs or increases in commodity prices or freight costs; potential impacts of the United States administration’s policies, and any legislation or regulations that may result from those policies, and of new United States tax laws, rules, regulations or policies; 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 impact of the U.S. Medicare National Competitive Bidding program); 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; tax rate

fluctuations; additional tax expense or additional tax exposures, which 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 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 of cybersecurity attack, data breach or data loss and/or delays in or inability to recover or restore data and IT 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 or other shareholder activism; 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.

17

Financial Statements

Part I.    FINANCIAL INFORMATION

Item 1.    Financial Statements.

INVACARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statement of Comprehensive Income (Loss) (unaudited)

(In thousands, except per share data)	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net sales	$	246,152		$	233,517		$	483,212		$	465,240
Cost of products sold	178,806			168,495			349,349			335,073
Gross Profit	67,346			65,022			133,863			130,167
Selling, general and administrative expenses	73,763			75,721			145,027			148,234
Charges related to restructuring activities	344			4,987			745			8,270
Operating Loss	(6,761		)	(15,686		)	(11,909		)	(26,337		)
Net (gain) loss on convertible debt derivatives	(21		)	1,051			(124		)	150
Interest expense	6,964			4,645			13,926			9,163
Interest income	(136		)	(49		)	(385		)	(137		)
Loss Before Income Taxes	(13,568		)	(21,333		)	(25,326		)	(35,513		)
Income tax provision	2,975			2,175			5,325			4,775
Net Loss	$	(16,543	)	$	(23,508	)	$	(30,651	)	$	(40,288	)
Dividends Declared per Common Share	$	0.0125		$	0.0125		$	0.0250		$	0.0250
Net Loss per Share—Basic	$	(0.50	)	$	(0.72	)	$	(0.93	)	$	(1.23	)
Weighted Average Shares Outstanding—Basic	33,169			32,833			33,040			32,654
Net Loss per Share—Assuming Dilution	$	(0.50	)	$	(0.72	)	$	(0.93	)	$	(1.23	)
Weighted Average Shares Outstanding—Assuming Dilution	33,996			33,193			33,867			32,947
Net Loss	$	(16,543	)	$	(23,508	)	$	(30,651	)	$	(40,288	)
Other comprehensive income (loss):
Foreign currency translation adjustments	(23,438		)	26,311			(11,622		)	27,260
Defined Benefit Plans:
Amortization of prior service costs and unrecognized gains (loss)	290			(426		)	243			(721		)
Deferred tax adjustment resulting from defined benefit plan activity	33			15			(49		)	12
Valuation reserve (reversal) associated with defined benefit plan activity	(33		)	(15		)	49			(12		)
Current period unrealized gain (loss) on cash flow hedges	1,966			(1,907		)	1,719			(1,276		)
Deferred tax benefit (loss) related to unrealized gain (loss) on cash flow hedges	(261		)	271			(151		)	105
Other Comprehensive Income (Loss)	(21,443		)	24,249			(9,811		)	25,368
Comprehensive Income (Loss)	$	(37,986	)	$	741		$	(40,462	)	$	(14,920	)
(Elements as a % of Net Sales)
Net Sales	100.0		%	100.0		%	100.0		%	100.0		%
Cost of products sold	72.6			72.2			72.3			72.0
Gross Profit	27.4			27.8			27.7			28.0
Selling, general and administrative expenses	30.0			32.4			30.0			31.9
Charges related to restructuring activities	0.1			2.1			0.2			1.8
Operating Loss	(2.7		)	(6.7		)	(2.5		)	(5.7		)
Net gain (loss) on convertible debt derivatives	—			0.5			—			—
Interest expense	2.8			2.0			2.9			2.0
Interest income	(0.1		)	—			(0.1		)	—
Loss Before Income Taxes	(5.5		)	(9.1		)	(5.2		)	(7.6		)
Income tax provision	1.2			0.9			1.1			1.0
Net Loss	(6.7		)%	(10.1		)%	(6.3		)%	(8.7		)%

See notes to condensed consolidated financial statements.

18

Financial Statements

INVACARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (unaudited)

	June 30, 2018			December 31, 2017
	(In thousands)
Assets
Current Assets
Cash and cash equivalents	$	122,398		$	176,528
Trade receivables, net	124,099			125,615
Installment receivables, net	1,266			1,334
Inventories, net	136,606			121,933
Other current assets	32,841			31,504
Total Current Assets	417,210			456,914
Other Assets	113,139			97,576
Intangibles	28,820			30,244
Property and Equipment, net	76,690			80,016
Goodwill	394,051			401,283
Total Assets	$	1,029,910		$	1,066,033
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	92,678		$	90,566
Accrued expenses	101,492			118,697
Current taxes payable	2,914			6,761
Short-term debt and current maturities of long-term obligations	1,676			2,040
Total Current Liabilities	198,760			218,064
Long-Term Debt	247,326			241,405
Other Long-Term Obligations	198,644			183,270
Shareholders’ Equity
Preferred Shares (Authorized 300 shares; none outstanding)	—			—
Common Shares (Authorized 100,000 shares; 37,066 and 36,532 issued and outstanding at June 30, 2018 and December 31, 2017, respectively)—no par	9,417			9,304
Class B Common Shares (Authorized 12,000 shares; 6 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively)—no par	2			2
Additional paid-in-capital	295,572			290,125
Retained earnings	156,540			187,999
Accumulated other comprehensive income	27,059			36,870
Treasury shares (3,837 and 3,701 shares at June 30, 2018 and December 31, 2017, respectively)	(103,410		)	(101,006		)
Total Shareholders’ Equity	385,180			423,294
Total Liabilities and Shareholders’ Equity	$	1,029,910		$	1,066,033

See notes to condensed consolidated financial statements.

19

Financial Statements

INVACARE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statement of Cash Flows (unaudited)

	For the Six Months Ended June 30,
	2018			2017
Operating Activities	(In thousands)
Net loss	$	(30,651	)	$	(40,288	)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	7,700			7,312
Provision for losses on trade and installment receivables	716			500
Benefit for deferred income taxes	(128		)	(759		)
Provision (benefit) for other deferred liabilities	(7		)	400
Provision for equity compensation	2,943			4,646
Loss (gain) on disposals of property and equipment	21			(91		)
Amortization of convertible debt discount	5,650			3,451
Amortization of debt fees	1,246			985
(Gain) Loss on convertible debt derivatives	(124		)	150
Changes in operating assets and liabilities:
Trade receivables	(1,659		)	(5,396		)
Installment sales contracts, net	294			(186		)
Inventories	(17,079		)	(13,095		)
Other current assets	(1,076		)	1,262
Accounts payable	3,231			(2,376		)
Accrued expenses	(18,289		)	(5,851		)
Other long-term liabilities	114			(1,132		)
Net Cash Used by Operating Activities	(47,098		)	(50,468		)
Investing Activities
Purchases of property and equipment	(4,227		)	(5,504		)
Proceeds from sale of property and equipment	37			190
Change in other long-term assets	(298		)	(218		)
Other	11			(87		)
Net Cash Used by Investing Activities	(4,477		)	(5,619		)
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	—			95,220
Payments on revolving lines of credit and long-term borrowings	(602		)	(14,881		)
Proceeds from exercise of stock options	2,618			1,429
Payment of financing costs	—			(4,144		)
Payment of dividends	(808		)	(793		)
Issuance of warrants	—			14,100
Purchase of treasury stock	(2,404		)	(1,221		)
Net Cash (Used) Provided by Financing Activities	(1,196		)	89,710
Effect of exchange rate changes on cash	(1,359		)	2,225
Increase (decrease) in cash and cash equivalents	(54,130		)	35,848
Cash and cash equivalents at beginning of year	176,528			124,234
Cash and cash equivalents at end of period	$	122,398		$	160,082

See notes to condensed consolidated financial statements.

20

Notes to Financial Statements Accounting Policies

Accounting Policies

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 June 30, 2018 and the results of its operations and changes in its cash flow for the six months ended June 30, 2018 and 2017, respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using a May 31 quarter end 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. The results of operations for the three and six months endedJune 30, 2018 are not necessarily indicative of the results to be expected for the full year.

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 control of the product or service transfers 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 when legal remedies are exhausted.

Reserves for customer bonus and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly.

Recent Accounting Pronouncements (Already Adopted):

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which replaces numerous requirements in U.S. GAAP and provides companies with a single revenue recognition model for recognizing 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 previous 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.

Effective January 1, 2018, the company adopted the new accounting standard, and all the related amendments, on a modified retrospective basis, with no cumulative effect adjustment to equity needed. Upon adoption, the standard did not have a material impact on the company's results of operations or cash flows nor does the company expect it to have a material impact on future periods. Pursuant to ASU 2014-09, revenues are recognized as control transfers to the customers, which is consistent with the prior revenue recognition model and the prior accounting for the vast majority of the company's contracts. While the company does have a minor amount of service business for which revenue is recognized over time as compared to a point in time, the company’s process to estimate the amount of revenue to be recognized did not change as a result of the implementation of the new standard.

21

Notes to Financial Statements Accounting Policies

Recent Accounting Pronouncements (Not Yet Adopted):

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 continues to assess the impact of the adoption of ASU 2016-02 on the company's financial statements. While the company has not finalized its assessment of the impact of ASU 2016-02, the company does expect the standard to have a significant impact on the company's consolidated balance sheets as the company will be required to record assets and liabilities related to its operating leases. The standard is not expected to have a material impact on the Company's results of operations or cash flows.

In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Statements." ASU 2016-13 requires a new credit loss standard for most financial assets and certain other instruments. For example, entities will be required to use an "expected loss" model that will generally require earlier recognition of allowances for losses for trade receivables. The standard also requires additional disclosures, including disclosures regarding how an entity tracks credit quality. The amendments in the pronouncement are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities may early adopt the amendments as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The company is currently reviewing the impact of the adoption of ASU 2016-13 on the company's financial statements.

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The company is currently reviewing the impact of the adoption of ASU 2017-04 but does not expect the adoption to impact the company's financial statements.

22

Notes to Financial Statements Divested Businesses

Divested Businesses

Operations Held for Sale

Prior to 2018, the company had recorded expenses related to the sale of all operations held for sale totaling $2,892,000, of which $2,366,000 has been paid out as of June 30, 2018.

Discontinued Operations

From 2012 through 2014, the company sold three businesses which were classified as discontinued operations. Prior to 2018, the company had recorded cumulative expenses related to the sale of discontinued operations totaling $8,801,000, of which $8,405,000 have been paid as of June 30, 2018.

23

Notes to Financial Statements Current Assets

Current Assets

Receivables

Receivables consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Accounts receivable, gross	$	143,696		$	154,966
Customer rebate reserve	(10,527		)	(18,747		)
Allowance for doubtful accounts	(4,841		)	(5,113		)
Cash discount reserves	(3,173		)	(4,252		)
Other, principally returns and allowances reserves	(1,056		)	(1,239		)
Accounts receivable, net	$	124,099		$	125,615

Reserves for customer bonus and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly. The decrease in customer rebates reserve from December 31, 2017 to June 30, 2018 was the result of rebate payments, the majority of which are paid in the first quarter of each year.

Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. Substantially all 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 are 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 establishes reserves for specific customers as needed. The company writes 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 three 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 financial statements as well as consideration of other factors such as exposure to changing reimbursement laws.

24

Notes to Financial Statements Current Assets

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 consist of the following (in thousands):

	June 30, 2018									December 31, 2017
	Current			Long- Term			Total			Current			Long- Term			Total
Installment receivables	$	2,369		$	1,525		$	3,894		$	2,415		$	2,076		$	4,491
Less: Unearned interest	(32		)	—			(32		)	(38		)	—			(38		)
	2,337			1,525			3,862			2,377			2,076			4,453
Allowance for doubtful accounts	(1,071		)	(1,214		)	(2,285		)	(1,043		)	(1,601		)	(2,644		)
Installment receivables, net	$	1,266		$	311		$	1,577		$	1,334		$	475		$	1,809

Installment receivables purchased from DLL during the six months ended June 30, 2018 increased the gross installment receivables balance by $47,000. No sales of installment receivables were made by the company during the quarter.

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

	Six Months Ended June 30, 2018			Year Ended December 31, 2017
Balance as of beginning of period	$	2,644		$	2,838
Current period provision (benefit)	(102		)	1,001
Direct write-offs charged against the allowance	(257		)	(1,195		)
Balance as of end of period	$	2,285		$	2,644

Installment receivables by class as of June 30, 2018 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	$	3,005	$	3,005	$	2,285	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	889		857		—		68
Impaired installment receivables with a related allowance recorded	—		—		—		—
Total Canadian installment receivables	889		857		—		68
Total
Non-Impaired installment receivables with no related allowance recorded	889		857		—		68
Impaired installment receivables with a related allowance recorded	3,005		3,005		2,285		—
Total installment receivables	$	3,894	$	3,862	$	2,285	$	68

25

Notes to Financial Statements Current Assets

Installment receivables by class as of December 31, 2017 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	$	3,566	$	3,566	$	2,642	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	923		885		—		74
Impaired installment receivables with a related allowance recorded	2		2		2		—
Total Canadian installment receivables	925		887		2		74
Total
Non-Impaired installment receivables with no related allowance recorded	923		885		—		74
Impaired installment receivables with a related allowance recorded	3,568		3,568		2,644		—
Total installment receivables	$	4,491	$	4,453	$	2,644	$	74

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 June 30, 2018, 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 Canadian installment receivables which were past due of 90 days or more as of December 31, 2017 for which the company was still accruing interest.

The aging of the company’s installment receivables was as follows (in thousands):

	June 30, 2018						December 31, 2017
	Total		U.S.		Canada		Total		U.S.		Canada
Current	$	889	$	—	$	889	$	916	$	—	$	916
0-30 Days Past Due	—		—		—		6		—		6
31-60 Days Past Due	—		—		—		—		—		—
61-90 Days Past Due	—		—		—		—		—		—
90+ Days Past Due	3,005		3,005		—		3,569		3,566		3
	$	3,894	$	3,005	$	889	$	4,491	$	3,566	$	925

26

Notes to Financial Statements Current Assets

Inventories

Inventories consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Finished goods	$	60,481	$	52,773
Raw materials	65,250		59,497
Work in process	10,875		9,663
Inventories, net	$	136,606	$	121,933

Other Current Assets

Other current assets consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Value added tax receivables	$	15,914	$	16,174
Service contracts	3,021		2,812
Derivatives (foreign currency forward exchange contracts)	2,136		730
Prepaid insurance	1,155		2,647
Prepaid inventory	614		711
Recoverable income taxes	513		341
Prepaid debt fees	394		397
Prepaid and other current assets	9,094		7,692
Other Current Assets	$	32,841	$	31,504

27

Notes to Financial Statements Long-Term Assets

Long-Term Assets

Other Long-Term Assets

Other long-term assets consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Convertible 2022 note hedge asset	$	54,490	$	46,680
Convertible 2021 note hedge asset	54,858		46,915
Cash surrender value of life insurance policies	1,956		1,991
Deferred financing fees	595		787
Long-term installment receivables	311		475
Long-term deferred taxes	403		518
Investments	90		103
Other	436		107
Other Long-Term Assets	$	113,139	$	97,576

Property and Equipment

Property and equipment consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Machinery and equipment	$	301,334		$	307,244
Land, buildings and improvements	77,760			78,522
Leasehold improvements	8,955			9,947
Furniture and fixtures	9,974			10,264
Property and Equipment, gross	398,023			405,977
Less allowance for depreciation	(321,333		)	(325,961		)
Property and Equipment, net	$	76,690		$	80,016

Goodwill

The change in goodwill from December 31, 2017 to June 30, 2018 was due to foreign currency translation.

28

Notes to Financial Statements Long-Term Assets

Intangibles

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

	June 30, 2018				December 31, 2017
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Customer lists	$	53,481	$	51,677	$	54,516	$	51,957
Trademarks	25,822		—		26,372		—
Developed technology	7,808		6,635		7,925		6,636
Patents	5,529		5,524		5,566		5,559
License agreements	1,133		1,133		1,187		1,187
Other	1,162		1,146		1,162		1,145
Intangibles	$	94,935	$	66,115	$	96,728	$	66,484

All the company’s intangible assets have been assigned definite lives and continue to be amortized over their useful lives, except for trademarks shown above, which have indefinite lives. The changes in intangible balances reflected on the balance sheet from December 31, 2017 to June 30, 2018 were the result of foreign currency translation and amortization.

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.

Amortization expense related to intangibles was $837,000 in the first six months of 2018 and is estimated to be $1,672,000 in 2018, $1,264,000 in 2019, $194,000 in 2020, $194,000 in 2021, $194,000 in 2022 and $194,000 in 2023. Amortized intangibles are being amortized on a straight-line basis over remaining lives of 1 to 10 years with most of the intangibles being amortized over an average remaining life of approximately 3 years.

29

Notes to Financial Statements Current Liabilities

Current Liabilities

Accrued Expenses

Accrued expenses consist of accruals for the following (in thousands):

	June 30, 2018		December 31, 2017
Salaries and wages	$	28,912	$	33,390
Taxes other than income taxes, primarily Value Added Taxes	21,137		22,627
Warranty	18,891		22,468
Professional	5,336		5,203
Freight	3,970		4,002
Interest	3,915		3,919
Deferred revenue	3,092		2,770
Product liability, current portion	3,045		2,905
Derivative liabilities (foreign currency forward exchange contracts)	1,302		2,120
Severance	1,235		3,704
Rebates	1,203		5,831
Rent	707		808
Insurance	660		645
Supplemental Executive Retirement Program liability	391		391
Other items, principally trade accruals	7,696		7,914
Accrued Expenses	$	101,492	$	118,697

Depending on the terms of the contract, the company may defer the recognition of a portion of the revenue at the end of a reporting period to align with the transfer of control of the company’s products to the customer. In addition, to the extent performance obligations are satisfied over time, the company defers revenue recognition until the performance obligations are satisfied.

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. Rebates are netted against gross accounts receivables unless in excess of such receivables and then classified as accrued expenses. The reduction in accrued rebates from December 31, 2017 to June 30, 2018 primarily relates to payments principally made in the first quarter each year.

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. In addition, the company has sold extended warranties that, while immaterial, require the

company to defer the revenue associated with those warranties until earned. The company has established procedures to appropriate defer such revenue.

The company continuously assesses the adequacy of its product warranty accruals 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 require additional warranty reserve provision.

The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands):

Balance as of January 1, 2018	$	22,468
Warranties provided during the period	3,663
Settlements made during the period	(7,503		)
Changes in liability for pre-existing warranties during the period, including expirations	263
Balance as of June 30, 2018	$	18,891

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

30

Notes to Financial Statements Long-Term Liabilities

Long-Term Debt

Debt consists of the following (in thousands):

	June 30, 2018			December 31, 2017
Convertible senior notes at 5.00%, due in February 2021	$	126,217		$	122,355
Convertible senior notes at 4.50%, due in June 2022	92,509			89,675
Other notes and lease obligations	30,276			31,415
	249,002			243,445
Less current maturities of long-term debt	(1,676		)	(2,040		)
Long-Term Debt	$	247,326		$	241,405

The company had outstanding letters of credit of $3,126,000 and $2,945,000 as of June 30, 2018 and December 31, 2017, respectively. There were no borrowings denominated in foreign currencies, excluding a portion of the company's capital leases, as of June 30, 2018 and December 31, 2017. The weighted average interest rate on all borrowings, excluding capital leases, was 4.78% for the six months ended June 30, 2018 compared to 4.84% for the year ended December 31, 2017.

On September 30, 2015, the company entered into an Amended and Restated Revolving Credit and Security Agreement, which was subsequently amended (the “Credit Agreement”) and which matures on January 16, 2021. The 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 Credit Agreement.

In connection with entering into the company's Credit Agreement, the company incurred fees which were capitalized and are being amortized as interest expense. As of June 30, 2018, debt fees yet to be amortized through January 2021 totaled $989,000.

U.S. and Canadian Borrowers Credit Facility

For the company's U.S. and Canadian Borrowers, the Credit Agreement provides for an asset-based-lending senior secured revolving credit facility which is secured by substantially all the company’s U.S. and Canadian assets, other than real estate. The 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. 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) $1,023,000 as of June 30, 2018 (subject to reduction as provided in the 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 $5,000,000 minimum availability reserve, less (i) other reserves required by the Administrative Agent, and in each case subject to the definitions and limitations in the Credit Agreement. As of June 30, 2018, the company was in compliance with all covenant requirements and had borrowing capacity on the U.S. and Canadian Credit Facility under the Credit Agreement of $23,835,000, considering the minimum availability reserve, then-outstanding letters of credit, other reserves and the $11,250,000 dominion trigger amount described below. Borrowings under the U.S. and Canadian Credit Facility are secured by substantially all of the company’s U.S. and Canadian assets, other than real estate.

31

Notes to Financial Statements Long-Term Liabilities

Interest will accrue on outstanding indebtedness under the 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.

The Credit Agreement contains customary representations, warranties and covenants. Exceptions to the operating covenants in the 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 Credit Agreement, as amended. The 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) $5,000,000 on any business day. The company also is subject to dominion triggers under the U.S. and Canadian Credit Facility 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 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. There were no borrowings outstanding under the U.S. and Canadian Credit Facility at June 30, 2018.

European Credit Facility

The Credit Agreement also provides for a revolving credit, letter of credit and swing line loan facility which gives the company and 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 2021, together with the U.S. and Canadian Credit Facility.

The aggregate borrowing availability for each European Borrower under the European Credit Facility is determined based on a borrowing base formula. 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 Credit Agreement. As of June 30, 2018, the aggregate borrowing availability to the European Borrowers under the European Credit Facility was approximately $14,822,000, considering the $3,000,000 minimum availability reserve and the $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 the 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%, as selected by the company. The margin that will be adjusted quarterly based on utilization. Borrowings under the European Credit Facility are subject to commitment fees of 0.25% or 0.375% per year, depending on utilization.

The European Credit Facility is secured by substantially all the personal property assets of the UK Borrower and its in-country subsidiaries, and all 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 U.S. and Canadian 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 U.S. and Canadian Credit Facility. Exceptions to the operating covenants in the 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 Credit Agreement. The Credit Agreement also contains a covenant requiring the European Borrowers to maintain undrawn

32

Notes to Financial Statements Long-Term Liabilities

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 U.S. and Canadian 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. There were no borrowings outstanding under the European Credit Facility at June 30, 2018.

Convertible senior subordinated debentures due 2027

In 2007, the company issued $135,000,000 principal amount of 4.125% Convertible Senior Subordinated Debentures due 2027 (the "debentures"), of which $0 principal amount remains outstanding as of June 30, 2018. The holders of the debentures exercised their right to require the company to repurchase all the debentures on February 1, 2017 at a price equal to 100% of the principal amount, which totaled $13,350,000. As a result of the repurchase, the company wrote-off unamortized debt fees of $207,000 and recognized amortization expense of $311,000 in the first quarter of 2017.

Convertible senior notes due 2021

In the first quarter of 2016, the company issued $150,000,000 aggregate principal amount of 5.00% Convertible Senior Notes due 2021 (the “2021 notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2021 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 2021 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 2021 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 2021 notes will be convertible, subject to certain conditions, into only cash. If the company obtains such shareholder approval, the 2021 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 2021 notes may convert their 2021 notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2020 only under the following circumstances: (1) during any fiscal quarter commencing after March 31, 2016 (and only during such fiscal quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2021 notes on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per one thousand U.S. dollar principal amount of 2021 notes for each trading day of such measurement period was less than 98% of the product of the last reported sale price of the company’s Common Shares and the applicable conversion rate for the 2021 notes on each such trading day; or (3) upon the occurrence of specified corporate events described in the Indenture.

Holders of the 2021 notes will have the right to require the company to repurchase all or some of their 2021 notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The initial conversion rate is 60.0492 common shares per $1,000 principal amount of 2021 notes (equivalent to an initial conversion price of approximately $16.65 per common share). The company evaluated the terms of the conversion features under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the features did require separate accounting as a derivative. This derivative was capitalized on the balance sheet as a long-term liability and will be adjusted to reflect fair value each quarter. The fair value of the convertible debt conversion liability at issuance was $34,480,000. The fair value of the convertible debt conversion liability at June 30, 2018 was $61,136,000 compared to $53,154,000 as of December 31, 2017. The company recognized losses of $5,609,000 and $7,982,000for the three and six months endedJune 30, 2018, respectively, compared to losses of $8,250,000 and $1,519,000for the three and six months endedJune 30, 2017, respectively, related to the convertible debt conversion liability.

33

Notes to Financial Statements Long-Term Liabilities

In connection with the offering of the 2021 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 2021 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 2021 notes. The company evaluated the note hedges under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the note hedges should be accounted for as derivatives. These derivatives were capitalized on the balance sheet as long-term assets and will be adjusted to reflect fair value each quarter. The fair value of the convertible note hedge assets at issuance was $27,975,000. The fair value of the convertible note hedge assets at June 30, 2018 was $54,858,000 compared to $46,915,000 as of December 31, 2017. The company recognized gains of $5,896,000 and $7,943,000for the three and six months endedJune 30, 2018, respectively, compared gains of $7,789,000 and $1,959,000for the three and six months endedJune 30, 2017, respectively, related to the convertible note hedge asset.

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 sold 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 initial strike price of the warrants is $22.4175 per share and is subject to certain adjustments under the terms of the warrant transactions. The company evaluated the warrants under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the warrants meet the definition of a derivative, are indexed to the company's own stock and should be classified in shareholder's equity. The amount paid for the warrants and capitalized in shareholder's equity was $12,376,000.

The net proceeds from the offering of the 2021 notes were approximately $144,034,000, after deducting fees and offering expenses of $5,966,000, which were paid in 2016. These debt issuance costs were capitalized and are being amortized as interest expense through February 2021. In accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, these debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Approximately $5,000,000 of the net proceeds from the offering were used to repurchase the company’s common shares from purchasers of 2021 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 warrant transactions), which net cost was $15,600,000.

The liability components of the 2021 notes consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Principal amount of liability component	$	150,000		$	150,000
Unamortized discount	(20,637		)	(23,900		)
Debt fees	(3,146		)	(3,745		)
Net carrying amount of liability component	$	126,217		$	122,355

The unamortized discount of $20,637,000 is to be amortized through February 2021. The effective interest rate on the liability component was 11.1%. Non-cash interest expense of $1,661,000 and $3,263,000 was recognized for the three and six months endedJune 30, 2018, respectively, compared to $1,490,000 and $2,928,000for the three and six months endedJune 30, 2017, respectively. Actual interest expense accrued was $1,875,000 and $3,750,000for the three and six months endedJune 30, 2018, respectively, compared to $1,875,000 and $3,750,000for the three and six months endedJune 30, 2017, respectively, based on the stated coupon rate of 5.0%. The 2021 notes were not convertible as of June 30, 2018 nor was the applicable conversion threshold met.

Convertible senior notes due 2022

In the second quarter of 2017, the company issued $120,000,000 aggregate principal amount of 4.50% Convertible Senior Notes due 2022 (the “2022 notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2022 notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2017. The 2022 notes will mature on June 1, 2022, unless repurchased or converted in accordance with their terms prior to such date. Prior to December 1, 2021, the 2022 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 of the issuance of the company's common shares upon conversion of the 2022 notes under applicable New York Stock Exchange rules, the 2022 notes will be convertible, subject to certain conditions, into only cash. If the company obtains such shareholder approval, the 2022 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.

34

Notes to Financial Statements Long-Term Liabilities

Holders of the 2022 notes may convert their 2022 notes at their option at any time prior to the close of business on the business day immediately preceding December 1, 2021 only under the following circumstances: (1) during any fiscal quarter commencing after September 30, 2017 (and only during such fiscal quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2022 notes on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per one thousand U.S. dollar principal amount of 2022 notes for each trading day of such measurement period was less than 98% of the product of the last reported sale price of the company’s Common Shares and the applicable conversion rate for the 2022 notes on each such trading day; or (3) upon the occurrence of specified corporate events described in the Indenture.

Holders of the 2022 notes will have the right to require the company to repurchase all or some of their 2022 notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The initial conversion rate is 61.6095 common shares per $1,000 principal amount of 2022 notes (equivalent to an initial conversion price of approximately $16.23 per common share). The company evaluated the terms of the conversion features under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the features did require separate accounting as a derivative. This derivative was capitalized on the balance sheet as a long-term liability and will be adjusted to reflect fair value each quarter. The fair value of the convertible debt conversion liability at issuance was $28,859,000. The fair value of the convertible debt conversion liability at June 30, 2018 was $61,061,000 compared to $53,414,000 at December 31, 2017. The company recognized losses of $5,837,000 and $7,647,000for the three and six months endedJune 30, 2018, respectively, compared to a loss of $4,392,000 for both the three and six months ended June 30, 2017, respectively, related to the convertible debt conversion liability.

In connection with the offering of the 2022 notes, the company entered into privately negotiated convertible note hedge transactions with one financial institution (the “option counterparty”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the 2022 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 2022 notes. The company evaluated the note hedges under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and

determined that the note hedges should be accounted for as derivatives. These derivatives were capitalized on the balance sheet as long-term assets and will be adjusted to reflect fair value each quarter. The fair value of the convertible note hedge assets at issuance was $24,780,000. The fair value of the convertible note hedge assets at June 30, 2018 was $54,490,000 compared to $46,680,000 at December 31, 2017. The company recognized gains of $5,571,000 and $7,810,000for the three and six months endedJune 30, 2018, respectively, compared to a gain of $3,802,000 for both the three and six months ended June 30, 2017, respectively, related to the convertible note hedge asset.

The company entered into separate, privately negotiated warrant transactions with the option counterparty 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 sold 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 initial strike price of the warrants is $21.4375 per share and is subject to certain adjustments under the terms of the warrant transactions. The company evaluated the warrants under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the warrants meet the definition of a derivative, are indexed to the company's own stock and should be classified in shareholder's equity. The amount paid for the warrants and capitalized in shareholder's equity was $14,100,000.

The net proceeds from the offering of the 2022 notes were approximately $115,289,000, after deducting fees and offering expenses of $4,711,000, which were paid in 2017. These debt issuance costs were capitalized and are being amortized as interest expense through June 2022. As of June 30, 2018, all of the debt issuance costs were paid. In accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, these debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. 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 warrant transactions), which net cost was $10,680,000.

35

Notes to Financial Statements Long-Term Liabilities

The liability components of the 2022 notes consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Principal amount of liability component	$	120,000		$	120,000
Unamortized discount	(23,991		)	(26,378		)
Debt fees	(3,500		)	(3,947		)
Net carrying amount of liability component	$	92,509		$	89,675

The unamortized discount of $23,991,000 is to be amortized through June 2022. The effective interest rate on the liability component was 10.9%. Non-cash interest expense of $1,203,000 and $2,387,000 was recognized for the three and six months endedJune 30, 2018, respectively, compared to $212,000 for both the three and six months ended June 30, 2017, respectively. Actual interest expense accrued was $1,350,000 and $2,700,000for the three and six months endedJune 30, 2018, respectively, compared to $255,000 for both the three and six months ended June 30, 2017, respectively, based on the stated coupon rate of 4.5%. The 2022 notes were not convertible as of June 30, 2018 nor was the applicable conversion threshold met.

36

Notes to Financial Statements Long-Term Liabilities

Other Long-Term Obligations

Other long-term obligations consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Convertible 2021 debt conversion liability	$	61,136	$	53,154
Convertible 2022 debt conversion liability	61,061		53,414
Deferred income taxes	28,398		28,890
Product liability	14,189		13,575
Pension	10,347		10,340
Deferred gain on sale leaseback	6,273		6,419
Deferred compensation	5,610		5,592
Supplemental Executive Retirement Plan liability	5,556		5,636
Uncertain tax obligation including interest	2,905		2,738
Other	3,169		3,512
Other Long-Term Obligations	$	198,644	$	183,270

The convertible debt conversion liabilities amounts included in the above table represent the fair values of the conversion liabilities as of June 30, 2018 and December 31, 2017. See "Long-Term Debt" in the notes to the Consolidated Financial Statements included elsewhere in this report for more detail.

On April 23, 2015, the company entered into a real estate sale leaseback transaction which resulted in the company recording 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 gains realized were $71,000 and 141,000 for the three and six months ended June 30, 2018, respectively, compared to 68,000 and 136,000 for the three and six months ended June 30, 2017, respectively.

37

Notes to Financial Statements Revenue

Revenue

The company has two revenue streams: product and services. Services include repair, refurbishment, preventive maintenance and rental of product. Services for the NA/HME and IPG segments include repair of product. Services for the Europe segment include repair, refurbishment and preventive maintenance services. Services for the Asia Pacific segment include rental and repair of product.

The following tables disaggregate the company’s revenues by major source and by reportable segment for the three and six months endedJune 30, 2018 and June 30, 2017 (in thousands):

	Three Months Ended June 30, 2018
	Product		Service		Total
Europe	$	135,408	$	3,488	$	138,896
NA/HME	79,667		200		79,867
IPG	13,267		437		13,704
Asia/Pacific	12,494		1,191		13,685
Total	$	240,836	$	5,316	$	246,152
% Split	98%		2%		100%

	Six Months Ended June 30, 2018
	Product		Service		Total
Europe	$	263,410	$	6,800	$	270,210
NA/HME	159,238		411		159,649
IPG	27,775		816		28,591
Asia/Pacific	22,439		2,323		24,762
Total	$	472,862	$	10,350	$	483,212
% Split	98%		2%		100%

	Three Months Ended June 30, 2017
	Product		Service		Total
Europe	$	125,289	$	3,196	$	128,485
NA/HME	77,094		595		77,689
IPG	15,119		201		15,320
Asia/Pacific	10,875		1,148		12,023
Total	$	228,377	$	5,140	$	233,517
% Split	98%		2%		100%

	Six Months Ended June 30, 2017
	Product		Service		Total
Europe	$	242,079	$	5,914	$	247,993
NA/HME	160,730		1,221		161,951
IPG	31,357		336		31,693
Asia/Pacific	21,367		2,236		23,603
Total	$	455,533	$	9,707	$	465,240
% Split	98%		2%		100%

The company's revenues are principally related to the sale of products, approximately 98%, with the remaining 2% related to services including repair, refurbishment, preventive maintenance and rental of product. While the company has a significant amount of contract types, the sales split by contract type is estimated as follows: general terms and conditions (35%), large national customers (25%), governments, principally pursuant to tender contracts (15%) and other customers including buying groups and independent customers (25%).

All product and substantially all service revenues are recognized at a point in time. The remaining service revenue, recognized over time, are reflected in the Europe segment and include multiple performance obligations. For such contracts, the company allocates revenue to each performance obligation based on its relative standalone selling price. The company generally determines the standalone selling price based on the expected cost-plus margin methodology.    

Revenue is recognized when obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the company’s products and services. Revenue is measured as the amount of consideration expected to be received in exchange for transferring product or providing services. The amount of consideration received and revenue recognized by the company can vary as a result of variable consideration terms included in the contracts related to customer rebates, cash discounts and return policies. Customer rebates and cash discounts are estimated based on the most likely amount principle and these estimates are based on historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience. The company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. The company generally does not expect that there will be significant changes to its estimates of variable consideration (see “Receivables” and "Accrued Expenses" in the Notes to the Consolidated Financial Statements include elsewhere in this report for more detail).

Depending on the terms of the contract, the company may defer the recognition of a portion of the revenue at the end of a reporting period to align with transfer of control of the company’s products to the customer. In addition, to the extent performance obligations are satisfied over time, the company defers revenue recognition until the performance obligations are satisfied. As of June 30, 2018 and December 31, 2017, the company had deferred revenue of $3,092,000 and $2,770,000, respectively, related to outstanding performance obligations.

38

Notes to Financial Statements 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 or for estate planning purposes. Holders of Class B Common Shares are entitled to convert their shares into Common Shares at any time on a share-for-share basis. When Class B Common Shares are transferred out of a familial relationship, they automatically convert to Class Common Shares.

As of June 30, 2018, 6,357 Class B Common Shares remained outstanding. Conversion of Class B Common Shares have substantially diminished the significance of the company’s dual class voting structure. As of June 30, 2018, the holders of the Common Shares represented approximately 99.9% of the company’s total outstanding voting power.

Equity Compensation Plan

On May 17, 2018, the shareholders of the company approved the Invacare Corporation 2018 Equity Compensation Plan (the “2018 Plan”), which was adopted on March 27, 2018 by the company's Board of Directors (the “Board”). The company’s Board adopted the 2018 Plan in order to authorize additional Common Shares for grant as equity compensation, and to reflect changes to Section 162(m) of the Internal Revenue Code (the “Code”) resulting from the U.S. Tax Cuts and Jobs Act of 2017.

Following shareholder approval of the 2018 Plan, all of the Common Shares then-remaining available for issuance under the Invacare Corporation 2013 Equity Compensation Plan (the “2013 Plan”) and all of the Common Shares that were forfeited or remained unpurchased or undistributed upon termination or expiration of awards under the 2013 Plan and under the Invacare Corporation 2003 Performance Plan (the “2003 Plan”), become available for issuance under the 2018 Plan. Awards granted previously under the 2013 Plan and 2003 Plan will remain in effect under their original terms.

The 2018 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 2018 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 2018 Plan as two shares. Shares underlying awards made under the 2003 Plan or 2013 Plan that are forfeited or remain unpurchased or undistributed upon termination or expiration of the awards will become available under the 2018

Plan for use in future awards. Any Common Shares that are added back to the 2018 Plan as the result of forfeiture, termination or expiration of an award granted under the 2018 Plan or 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 2018 Plan or 2013 Plan, as applicable. Each Common Share that is added back to the 2018 Plan due to a forfeiture, termination or expiration 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 2018 Plan to any director or employee of the company or an affiliate. As of June 30, 2018, 4,014,199 Common Shares were available for future issuance under the 2018 Plan in connection with the following types of awards with respect to 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 2018 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 employee participants to exchange shares for minimum withholding taxes, which results in the company acquiring treasury shares.

The amounts of equity-based compensation expense recognized as part of SG&A expenses were as follows (in thousands):

	For the Six Months Ended June 30,
	2018			2017
Restricted stock / units	$	2,940		$	3,262
Performance shares / units	(27		)	905
Non-qualified and performance stock options	30			479
Total stock-based compensation expense	$	2,943		$	4,646

39

Notes to Financial Statements Equity Compensation

As of June 30, 2018, unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2018 Plan and previous plans, which is related to non-vested options and shares, was as follows (in thousands):

	June 30, 2018
Restricted stock and restricted stock units	$	9,899
Performance shares and performance share units	10,890
Non-qualified and performance stock options	2,472
Total unrecognized stock-based compensation expense	$	23,261

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 "Stock Options" and "Performance Shares and Performance Share Units" below). No tax benefits for share-based compensation were realized during the three or six months ended

June 30, 2018 and 2017 due to a valuation allowance against deferred tax assets.

Stock Options

Generally, non-qualified stock option awards have a term of ten years and were granted with an exercise price per share equal to the fair market value of one of the company’s Common Shares on the date of grant. Stock option awards granted in 2017 were performance-based awards which will only become exercisable if the performance goals established by the Compensation Committee are achieved over a 3-year period ending in 2019 and subject to the Compensation Committee's exercise of negative discretion to reduce the number of options vested based on the progress towards the company's transformation. The company expects the compensation expense to be recognized over a weighted-average period of approximately two years.

The following table summarizes information about stock option activity for the six months ended June 30, 2018:

	June 30, 2018				Weighted Average Exercise Price
Options outstanding at January 1, 2018	2,631,569				$	19.44
Granted	—				—
Exercised	(183,349		)		14.28
Canceled	(155,200		)		23.49
Options outstanding at June 30, 2018	2,293,020				$	19.58
Options exercise price range at June 30, 2018	$	12.15		to	$	33.36
Options exercisable at June 30, 2018	1,693,244
Shares available for grant at June 30, 2018*	4,014,199

________

 * Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively.

The following table summarizes information about stock options outstanding at June 30, 2018:

	Options Outstanding				Options Exercisable
Exercise Prices	Number Outstanding at June 30, 2018	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable at June 30, 2018	Weighted Average Exercise Price
$ 12.15 – $20.00	887,935	7.6	$	12.82	288,159	$	14.23
$ 20.01 – $25.00	726,751	2.0	22.20		726,751	22.20
$ 25.01 – $30.00	673,838	1.2	25.56		673,838	25.56
$ 30.01 – $33.36	4,496	2.9	33.36		4,496	33.36
Total	2,293,020	3.8	$	19.58	1,693,244	$	22.21

The 2018 Plan provides for a one-year minimum vesting period for stock options and, generally, options must be exercised within ten years from the date granted. No stock options were issued in 2018 and those issued in 2017 were performance-based and may vest after the conclusion of the three-year performance

period ending December 31, 2019 based on achievement of performance goals established by the Compensation Committee and subject to the Compensation Committee's exercise of negative discretion to reduce the number of options vested based on the progress towards the company's transformation. All other

40

Notes to Financial Statements Equity Compensation

outstanding stock options were issued in 2014 or prior years and were not performance-based.

For the stock options issued in 2014 and prior, 25% of such options vested one year following the issuance and provided a four-year vesting period whereby options vest in 25% installments in each year. Options granted with graded vesting were accounted for as single options.

The fair value of options granted is estimated on the date of grant using a Black-Scholes option-pricing model. The calculated fair value of the 2017 performance option awards was $5.38 per option based on the following assumptions:

Expected dividend yield	0.4	%
Expected stock price volatility	39.1	%
Risk-free interest rate	2.31	%
Expected life in years	7.8

Expected dividend yield was based on historical dividends. Expected stock price volatility percentage was calculated at the date of grant based on historical stock prices for a period commensurate with the expected life of the option. The assumed expected life was based on the company's historical analysis of option history.

Restricted Stock and Restricted Stock Units

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

	June 30, 2018		Weighted Average Fair Value
Stock / Units unvested at January 1, 2018	776,520		$	13.75
Granted	367,327		17.51
Vested	(366,794	)	15.00
Canceled	(45,820	)	13.11
Stock / Units unvested at June 30, 2018	731,233		$	15.06

The restricted stock awards generally vest ratably over the three years after the award date. 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):

	June 30, 2018		Weighted Average Fair Value
Shares / Units unvested at January 1, 2018	457,879		$	12.33
Granted	205,164		17.48
Vested	—		—
Canceled	(2,088	)	12.82
Shares / Units unvested at June 30, 2018	660,955		$	13.93

During the six months ended June 30, 2018, performance shares and performance share units (for non-U.S. recipients) were granted as performance awards with a three-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 three-year performance period based on achievement of performance criteria for January 1, 2018 through December 31, 2020 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 three years. Expense is being recognized for the 2016, 2017 and 2018 awards as it is considered probable that the performance goals for those awards will be met.

41

Notes to Financial Statements Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income (Loss) by Component

Changes in accumulated other comprehensive income ("OCI") for the three and six months endedJune 30, 2018 and June 30, 2017, respectively, were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
March 31, 2018	$	59,085		$	(1,505	)	$	(7,699	)	$	(1,379	)	$	48,502
OCI before reclassifications	(25,407		)	1,969			291			1,128			(22,019		)
Amount reclassified from accumulated OCI	—			—			(1		)	577			576
Net current-period OCI	(25,407		)	1,969			290			1,705			(21,443		)
June 30, 2018	$	33,678		$	464		$	(7,409	)	$	326		$	27,059

December 31, 2017	$	50,376		$	(4,612	)	$	(7,652	)	$	(1,242	)	$	36,870
OCI before reclassifications	(16,698		)	5,076			373			743			(10,506		)
Amount reclassified from accumulated OCI	—			—			(130		)	825			695
Net current-period OCI	(16,698		)	5,076			243			1,568			(9,811		)
June 30, 2018	$	33,678		$	464		$	(7,409	)	$	326		$	27,059

March 31, 2017	$	(28,352	)	$	20,474		$	(11,543	)	$	1,205		$	(18,216	)
OCI before reclassifications	37,163			(10,852		)	(480		)	(1,335		)	24,496
Amount reclassified from accumulated OCI	—			—			54			(301		)	(247		)
Net current-period OCI	37,163			(10,852		)	(426		)	(1,636		)	24,249
June 30, 2017	$	8,811		$	9,622		$	(11,969	)	$	(431	)	$	6,033

December 31, 2016	$	(26,199	)	$	17,372		$	(11,248	)	$	740		$	(19,335	)
OCI before reclassifications	35,010			(7,750		)	(985		)	(571		)	25,704
Amount reclassified from accumulated OCI	—			—			264			(600		)	(336		)
Net current-period OCI	35,010			(7,750		)	(721		)	(1,171		)	25,368
June 30, 2017	$	8,811		$	9,622		$	(11,969	)	$	(431	)	$	6,033

42

Notes to Financial Statements Accumulated Other Comprehensive Income

Reclassifications out of accumulated OCI for the three and six months endedJune 30, 2018 and June 30, 2017 were as follows (in thousands):

	Amount reclassified from OCI												Affected line item in the Statement of Comprehensive (Income) Loss
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Defined Benefit Plans
Service and interest costs	$	(1	)	$	54		$	(130	)	$	264		Selling, General and Administrative
Tax	—			—			—			—			Income Taxes
Total after tax	$	(1	)	$	54		$	(130	)	$	264
Derivatives
Foreign currency forward contracts hedging sales	$	209		$	166		$	234		$	234		Net Sales
Foreign currency forward contracts hedging purchases	429			(481		)	680			(872		)	Cost of Products Sold
Total loss (income) before tax	638			(315		)	914			(638		)
Tax	(61		)	14			(89		)	38			Income Taxes
Total after tax	$	577		$	(301	)	$	825		$	(600	)

43

Notes to Financial Statements Charges Related to Restructuring Activities

Charges Related to Restructuring Activities

The company's restructuring charges were originally 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 due to the outsourcing by competitors to lower cost locations. Restructuring decisions were also the result of reduced profitability in the NA/HME and Asia/Pacific segments. In addition, as a result of the company's transformation strategy, additional restructuring actions were implemented in 2017 and continued in 2018. The company expects any near-term cost savings from restructuring will be offset by other costs because of pressures on the business.

For the six months endedJune 30, 2018, charges totaled $745,000 which were related to NA/HME ($86,000), Europe ($401,000) and Asia/Pacific ($258,000). In NA/HME, costs were incurred related to severance ($124,000) and contract termination cost reversals ($135,000). The European and Asia/Pacific charges were for severance costs. Payments for the six months ended June 30, 2018 were $3,474,000 and the cash payments were funded with company's cash on hand. Most of the 2018 charges are expected to be paid out within twelve months.

For the six months endedJune 30, 2017, charges totaled $8,270,000 which were related to NA/HME ($6,170,000), Europe segment ($1,204,000) and Asia/Pacific ($896,000). In NA/HME, costs were incurred related to severance ($5,522,000) and contract termination costs ($648,000). The NA/HME charges include the impact of the company's closure of its Suzhou, China, manufacturing facility. The European and Asia/Pacific charges were for severance costs. Payments for the six months ended June 30, 2017 were $4,800,000 and the cash payments were funded with company's cash on hand. Most of the 2017 charges have been paid out.

There have been no material changes in accrued balances related to the charges, either as a result of revisions to 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, in general, these savings have been more than offset by the general business decline, higher regulatory and compliance costs related to quality system improvements, and more recently, higher interest expense. To date, the company's liquidity has not been materially impacted. Please refer to Charges Related to Restructuring Activities of company's Annual Report on Form 10-K for the period ending December 31, 2017 for disclosure of restructuring activity prior to 2018.

44

Notes to Financial Statements Charges Related to Restructuring Activities

A progression by reporting segment of the accruals recorded as a result of the restructuring for the six months ended June 30, 2018 is as follows (in thousands):

	Severance			Contract Terminations			Total
December 31, 2017 Balances
NA/HME	$	2,439		$	167		$	2,606
Europe	249			134			383
Other	1,016			—			1,016
Total	3,704			301			4,005
Charges
NA/HME	97			—			97
Europe	293			—			293
Asia/Pacific	11			—			11
Total	401			—			401
Payments
NA/HME	(1,697		)	(57		)	(1,754		)
Europe	(338		)	(97		)	(435		)
Asia/Pacific	(11		)	—			(11		)
Other	(260		)	—			(260		)
Total	(2,306		)	(154		)	(2,460		)
March 31, 2018 Balances
NA/HME	839			110			949
Europe	204			37			241
Other	756			—			756
Total	1,799			147			1,946
Charges (Reversals)
NA/HME	124			(135		)	(11		)
Europe	108			—			108
Asia/Pacific	247			—			247
Total	479			(135		)	344
Payments
NA/HME	(601		)	66			(535		)
Europe	(195		)	(37		)	(232		)
Asia/Pacific	(247		)	—			(247		)
Total	(1,043		)	29			(1,014		)
June 30, 2018 Balances
NA/HME	362			41			403
Europe	117			—			117
Other	756			—			756
Total	$	1,235		$	41		$	1,276

45

Notes to Financial Statements Income Taxes

Income Taxes

The company had an effective tax rate of 21.9% and 21.0% on losses before tax from continuing operations for the three and six months endedJune 30, 2018, respectively, compared to an expected benefit of 21% on the continuing operations pre-tax loss for each period. The company had an effective tax rate of 10.2% and 13.4% on losses before tax from continuing operations for the three and six months endedJune 30, 2017, respectively, compared to an expected benefit at the U.S. statutory rate of 35% on the continuing operations pre-tax loss for each period. The company's effective tax rate for each of the three and six months endedJune 30, 2018 and June 30, 2017 were unfavorable as compared to the U.S. federal statutory rate expected benefit, principally due to the negative impact of the company not being able to record tax benefits related to the significant losses in countries which had tax valuation allowances. The effective tax rate was increased for the three and six months endedJune 30, 2018 and decreased for the three months ended June 30, 2017 by certain taxes outside the United States, excluding countries with tax valuation allowances, that were at an effective rate higher than the U.S. statutory rate for the three and six months endedJune 30, 2018 and lower than the U.S. statutory rate for the three months ended June 30, 2017.

The US Tax Cuts and Jobs Act of 2017 ("Tax Act") was enacted on December 22, 2017. The Tax Act subjects a US shareholder to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred.

In accordance with the SEC issued SAB 118, which provided guidance on accounting for the tax effects of the Tax Act, the company made certain provisional estimates at December 31, 2017. The company determined that the provisional calculations will be finalized after the underlying timing differences and foreign earnings and profits are finalized with our 2017 federal tax return filing.  Furthermore, the company is still analyzing certain aspects of the Tax Act and refining its calculations which could potentially affect the measurement of these balances or potentially give rise to new or additional deferred tax amounts. No adjustments were made to the company's provisional calculations during the quarter or six months ended June 30, 2018.

46

Notes to Financial Statements Net Loss Per Common Share

Net Loss Per Common Share

The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated.

(In thousands except per share data)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Basic
Average common shares outstanding	33,169			32,833			33,040			32,654
Net loss	$	(16,543	)	$	(23,508	)	$	(30,651	)	$	(40,288	)
Net loss per common share	$	(0.50	)	$	(0.72	)	$	(0.93	)	$	(1.23	)
Diluted
Average common shares outstanding	33,169			32,833			33,040			32,654
Stock options and awards	827			360			827			293
Average common shares assuming dilution	33,996			33,193			33,867			32,947
Net loss	$	(16,543	)	$	(23,508	)	$	(30,651	)	$	(40,288	)
Net loss per common share *	$	(0.50	)	$	(0.72	)	$	(0.93	)	$	(1.23	)

________

* Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss.

At June 30, 2018, 329,315 shares associated with stock options were excluded from the average common shares assuming dilution for both the three and six months endedJune 30, 2018 as they were anti-dilutive. At June 30, 2018, the majority of the anti-dilutive shares were granted at an exercise price of $25.79, which was higher than the average fair market value price of $18.09 and $17.87for the three and six months endedJune 30, 2018, respectively.

At June 30, 2017, 1,353,144 and 1,629,336 shares associated with stock options were excluded from the average common shares assuming dilution for the three and six months endedJune 30, 2017, respectively, as they were anti-dilutive. At June 30, 2017, the majority of the anti-dilutive shares were granted at an exercise price of $25.79, which was higher than the average fair market value price of $13.14 and $12.57for the three and six months endedJune 30, 2017, respectively.

For both the three and months ended June 30, 2018 and June 30, 2017, respectively, no shares were included in the common shares assuming dilution related to the company's issued warrants as the average market price of the company stock for these periods did not exceed the strike price of the warrants.

47

Notes to Financial Statements Concentration of Credit Risk

Concentration of Credit Risk

The company manufactures and distributes durable medical equipment 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 lease financing to Invacare's U.S. customers. The DLL agreement provides for direct leasing between DLL and the Invacare customer. The company retains a recourse obligation of $2,088,000 at June 30, 2018 to DLL for events of default under the contracts, which total $16,281,000 at June 30, 2018. Guarantees, ASC 460, requires the company to record a guarantee liability as it relates to the limited recourse obligation. 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 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.

48

Notes to Financial Statements 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. 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.

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.

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, most 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 $50,475,000 and $43,692,000 matured for the six months ended June 30, 2018 and June 30, 2017, respectively.

49

Notes to Financial Statements Derivatives

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

	June 30, 2018					December 31, 2017
	Notional Amount		Unrealized Net Gain (Loss)			Notional Amount		Unrealized Net Gain (Loss)
USD / AUD	$	2,580	$	161		$	3,960	$	44
USD / CAD	17,428		(80		)	33,344		115
USD / CNY	2,016		21			4,027		61
USD / EUR	40,266		851			72,259		(558		)
USD / GBP	2,468		(10		)	4,640		(124		)
USD / NZD	5,910		(105		)	9,300		11
USD / SEK	1,052		122			—		—
USD / MXP	3,279		(12		)	6,461		(158		)
EUR / GBP	16,722		(461		)	32,248		(682		)
EUR / SEK	3,802		145			7,732		39
EUR / NOK	2,289		(59		)	4,521		68
EUR / NZD	1,403		(10		)	2,855		(8		)
DKK / SEK	3,013		(156		)	6,453		(120		)
	$	102,228	$	407		$	187,800	$	(1,312	)

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 2018 or 2017 related to these contracts and the associated short-term intercompany trading receivables and payables.

Foreign currency forward exchange contracts not qualifying or designated for hedge accounting treatment, as well as ineffective hedges, entered into in 2018 and 2017, respectively, and outstanding were as follows (in thousands USD):

	June 30, 2018					December 31, 2017
	Notional Amount		Gain (Loss)			Notional Amount		Gain (Loss)
AUD / USD	$	2,818	$	69		$	2,750	$	(77	)
EUR / USD	7,695		472			—		—
NZD / USD	—		—			3,300		(53		)
EUR / AUD	2,894		(87		)	4,000		43
AUD / NZD	2,439		(26		)	3,600		9
EUR / NOK	36		(1		)	—		—
	$	15,882	$	427		$	13,650	$	(78	)

50

Notes to Financial Statements Derivatives

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

	June 30, 2018				December 31, 2017
	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	$	1,596	$	1,189	$	678	$	1,990
Derivatives not designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	540		113		52		130
Total derivatives	$	2,136	$	1,302	$	730	$	2,120

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

The effect of derivative instruments on Accumulated Other Comprehensive Income (OCI) and the Statement of Comprehensive Income (Loss) and was as follows (in thousands):

Derivatives in ASC 815 cash flow hedge relationships	Amount of Gain (Loss) Recognized  in Accumulated OCI on Derivatives (Effective Portion)			Amount of Gain (Loss) Reclassified from Accumulated  OCI into Income (Effective Portion)			Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective  Portion and Amount Excluded from Effectiveness Testing)
Three months ended June 30, 2018
Foreign currency forward exchange contracts	$	1,128		$	(577	)	$	—
Six months ended June 30, 2018
Foreign currency forward exchange contracts	$	743		$	(825	)	$	(1	)
Three months ended June 30, 2017
Foreign currency forward exchange contracts	$	(1,335	)	$	301		$	—
Six months ended June 30, 2017
Foreign currency forward exchange contracts	$	(571	)	$	600		$	—
Derivatives not designated as hedging instruments under ASC 815							Amount of Gain (Loss) Recognized in Income on Derivatives
Three months ended June 30, 2018
Foreign currency forward exchange contracts							$	197
Six months ended June 30, 2018
Foreign currency forward exchange contracts							$	427
Three months ended June 30, 2017
Foreign currency forward exchange contracts							$	52
Six months ended June 30, 2017
Foreign currency forward exchange contracts							$	117

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 and in cost of product sold for hedges of inventory purchases. For the three and six months ended June 30, 2018, net sales were decreased by $209,000 and $234,000 while cost of product sold was increased by $429,000 and $680,000 for net pre-tax realized losses of $638,000 and $914,000, respectively. For the three and six months ended June 30, 2017, net sales were decreased by $166,000 and $234,000 while cost of product sold was decreased

by $481,000 and $872,000 for net realized pre-tax gains of $315,000 and $638,000, respectively.

Gains of $197,000 and $427,000 were recognized in selling, general and administrative (SG&A) expenses for the three and six months endedJune 30, 2018, respectively, compared to gains of $52,000 and $117,000for the three and six months endedJune 30, 2017, respectively, related to forward contracts not designated as hedging instruments. The forward contracts were entered into to offset gains/losses that were also recorded in

51

Notes to Financial Statements Derivatives

SG&A expenses on intercompany trade receivables or payables. The gains/losses on the non-designated hedging instruments were substantially offset by gains/losses on intercompany trade payables.

The company's derivative agreements provide the counterparties with a right of set off in the event of a default. The right of set off 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 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 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, other than the conversion and bond hedge derivatives which are presented net on the Condensed Consolidated Statement of Comprehensive Income (Loss), and all derivative balances presented are subject to provisions that are similar to master netting agreements.

During the first quarter of 2016, the company entered into privately negotiated convertible 2021 note hedges and 2021 warrants in connection with its sale of $150,000,000 in aggregate principal amount of the company’s 5.00% Convertible Senior Notes due 2021. The 2021 warrants, which increased paid in capital by $12,376,000, are clearly and closely related to the convertible 2021 notes and thus classified as equity. The 2021 note hedge asset and 2021 convertible debt conversion liability were recorded, based on initial fair values, as an asset of $27,975,000 and a liability of $34,480,000, respectively, and these fair values are updated quarterly with the offset to the income statement.

During the second quarter of 2017, the company entered into privately negotiated convertible 2022 note hedges and warrants in connection with its sale of $120,000,000 in aggregate principal amount of the company’s 4.50% Convertible Senior Notes due 2022. The 2022 warrants, which increased paid in capital by $14,100,000, are clearly and closely related to the convertible 2022 notes and thus classified as equity. The 2022 note hedge assets and 2022 convertible debt conversion liability were recorded, based on initial fair values, as an asset of $24,780,000 and a liability of $28,859,000, respectively, and these fair values are updated quarterly with the offset to the income statement. See "Long-Term Debt" in the notes to the Consolidated Financial Statements included elsewhere in this report for more detail.

The fair values of the outstanding convertible note derivatives as of June 30, 2018 and their effect on the Statement of Comprehensive Income (Loss) were as follows (in thousands):

				Gain (Loss)						Gain (Loss)
	Fair Value			Three Months Ended						Six Months Ended
	June 30, 2018			June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Convertible 2021 debt conversion long-term liability	$	(61,136	)	$	(5,609	)	$	(8,250	)	$	(7,982	)	$	(1,519	)
Convertible 2022 debt conversion long-term liability	(61,061		)	(5,837		)	(4,392		)	(7,647		)	(4,392		)
Convertible 2021 note hedge long-term asset	54,858			5,896			7,789			7,943			1,959
Convertible 2022 note hedge long-term asset	54,490			5,571			3,802			7,810			3,802
Net fair value and net gain (loss) on convertible debt derivatives	$	(12,849	)	$	21		$	(1,051	)	$	124		$	(150	)

The 2021 and 2022 convertible debt conversion liability amounts and the 2021 and 2022 note hedge asset amounts are included in Other Long-Term Obligations and Other Long-Term Assets, respectively, in the company's Consolidated Balance Sheets.

52

Notes to Financial Statements Fair Values

Fair Values

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
	Level I	Level II			Level III
June 30, 2018
Forward exchange contracts—net	—	$	834		—
Convertible 2021 debt conversion liability	—	(61,136		)	—
Convertible 2021 note hedge asset	—	54,858			—
Convertible 2022 debt conversion liability	—	(61,061		)	—
Convertible 2022 note hedge asset	—	54,490			—
December 31, 2017
Forward exchange contracts—net	—	$	(1,390	)	—
Convertible 2021 debt conversion liability	—	(53,154		)	—
Convertible 2021 note hedge asset	—	46,915			—
Convertible 2022 debt conversion liability	—	(53,414		)	—
Convertible 2022 note hedge asset	—	46,680			—

The carrying values and fair values of the company’s financial instruments are as follows (in thousands):

	June 30, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
Cash and cash equivalents	$	122,398		$	122,398		$	176,528		$	176,528
Other investments	90			90			103			103
Installment receivables, net of reserves	1,577			1,577			1,809			1,809
Long-term debt (including current maturities of long-term debt) *	(249,002		)	(319,103		)	(243,445		)	(294,173		)
Convertible 2021 debt conversion liability in Other Long-Term Obligations	(61,136		)	(61,136		)	(53,154		)	(53,154		)
Convertible 2021 note hedge in Other Long-Term Assets	54,858			54,858			46,915			46,915
Convertible 2022 debt conversion liability in Other Long-Term Obligations	(61,061		)	(61,061		)	(53,414		)	(53,414		)
Convertible 2022 note hedge in Other Long-Term Assets	54,490			54,490			46,680			46,680
Forward contracts in Other Current Assets	2,136			2,136			730			730
Forward contracts in Accrued Expenses	(1,302		)	(1,302		)	(2,120		)	(2,120		)

________

* The company's long-term debt is shown net of discount and fees associated with the Convertible Senior Notes due 2021 and 2022 on the company's condensed consolidated balance sheet. Accordingly, the fair values of the Convertible Senior Notes due 2021 and 2022 are included in the long-term debt presented in this table is also shown net of the discount and fees.

53

Notes to Financial Statements Fair Values

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

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

Other investments: The company has made an investment in a limited partnership, which is accounted for using the cost method, adjusted for any estimated declines in value. The investment was acquired in private placement and there is no quoted market price or stated rate of return. The company does not have the ability to easily sell the investment. The company completes an evaluation of the residual value related to such investments in the fourth quarter each year.

Installment receivables: The carrying value 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 period, while the revolving credit facility fair value is based upon an estimate of the market for similar borrowing arrangements. The fair values are deemed to be categorized as Level 2 in the fair value hierarchy.

Convertible debt derivatives: The fair values for the convertible debt conversion liability and note hedge derivatives are based on valuation models in which all the significant inputs are observable in active markets.

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 company’s forward contracts are included in Other Current Assets or Accrued Expenses in the Consolidated Balance Sheets.

54

Notes to Financial Statements Business Segments

Business Segments

The company operates in four primary business segments: NA/HME, IPG, Europe and Asia/Pacific. Both the NA/HME and IPG segments operate in the Americas. The NA/HME segment sells each of the three primary product categories, which includes: lifestyle, mobility and seating, and respiratory therapy products. IPG sells long-term care medical equipment, health care furnishings and accessory products. Europe and Asia/Pacific sell product categories similar to those of NA/HME and IPG. 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.

Segment performance is measured and resources are allocated based on a number of factors, with the primary profit or loss measure being segment operating profit (loss). Segment operating profit

(loss) represents net sales less cost of products sold less selling general and administrative expenses. Segment operating profit (loss) excludes unallocated corporate general and administrative expenses not allocated to the segments and intersegment sales and profit eliminations, which are included in All Other. In addition, segment operating profit (loss) further excludes charges related to restructuring activities, asset impairments and gain on sale of business (as applicable).

Segment operating income (loss), is used by the CODM for purposes of making decisions about allocating resources to a segment and assessing its performance. In addition, this metric is reviewed by the company’s Board of Directors regarding segment performance and is a key metric in the performance management assessment of the company's employees.

(in thousands)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Revenues from external customers
Europe	$	138,896		$	128,485		$	270,210		$	247,993
NA/HME	79,867			77,689			159,649			161,951
IPG	13,704			15,320			28,591			31,693
Asia/Pacific	13,685			12,023			24,762			23,603
Consolidated	$	246,152		$	233,517		$	483,212		$	465,240
Intersegment revenues
Europe	$	4,877		$	3,738		$	8,734		$	7,413
NA/HME	23,804			21,050			47,307			43,145
IPG	229			975			318			1,743
Asia/Pacific	5,254			3,896			10,914			7,756
Consolidated	$	34,164		$	29,659		$	67,273		$	60,057
Restructuring charges before income taxes
Europe	$	108		$	514		$	401		$	1,204
NA/HME	(11		)	3,928			86			6,170
Asia/Pacific	247			545			258			896
Consolidated	$	344		$	4,987		$	745		$	8,270
Operating income (loss)
Europe	$	5,171		$	7,077		$	11,765		$	12,177
NA/HME	(8,420		)	(12,395		)	(16,558		)	(21,821		)
IPG	1,163			1,472			2,761			3,370
Asia/Pacific	1,570			(118		)	2,542			(548		)
All Other	(5,901		)	(6,735		)	(11,674		)	(11,245		)
Charge expense related to restructuring activities	(344		)	(4,987		)	(745		)	(8,270		)
Consolidated operating loss	(6,761		)	(15,686		)	(11,909		)	(26,337		)
Net gain (loss) on convertible debt derivatives	21			(1,051		)	124			(150		)
Net Interest expense	(6,828		)	(4,596		)	(13,541		)	(9,026		)
Loss before income taxes	$	(13,568	)	$	(21,333	)	$	(25,326	)	$	(35,513	)

55

Notes to Financial Statements Business Segments

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Europe
Lifestyle	$	69,621	$	64,128	$	137,612	$	125,932
Mobility and Seating	58,411		53,526		110,184		100,458
Respiratory Therapy	6,480		6,634		13,242		13,750
Other(1)	4,384		4,197		9,172		7,853
	$	138,896	$	128,485	$	270,210	$	247,993
NA/HME
Lifestyle	$	31,573	$	31,045	$	62,207	$	63,294
Mobility and Seating	31,063		27,170		60,228		54,061
Respiratory Therapy	16,959		18,826		36,691		43,309
Other(1)	272		648		523		1,287
	$	79,867	$	77,689	$	159,649	$	161,951
Institutional Products Group
Continuing Care	$	13,704	$	15,320	$	28,591	$	31,693
Asia/Pacific
Mobility and Seating	$	8,448	$	7,108	$	15,339	$	13,716
Lifestyle	2,736		2,637		5,001		4,873
Continuing Care	447		671		734		1,846
Respiratory Therapy	522		306		646		649
Other(1)	1,532		1,301		3,042		2,519
	$	13,685	$	12,023	$	24,762	$	23,603
Total Consolidated	$	246,152	$	233,517	$	483,212	$	465,240

  ________________________

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

56

Notes to Financial Statements 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 currently 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.

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 became subject to a consent decree of injunction filed by FDA with respect to the company's Corporate facility and its Taylor Street manufacturing facility in Elyria, Ohio. The consent decree initially limited the company's (i) manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility, except in verified cases of medical necessity, (ii) design activities related to wheelchairs and power beds that took place at the impacted Elyria facilities and (iii) replacement, service and repair of products which were already in use from the Taylor Street manufacturing facility. Under the terms of the consent decree, in order to resume full operations, the company had to successfully complete independent, third-party expert certification audits at the impacted Elyria facilities, comprised of three distinct certification reports separately submitted to, and accepted by, FDA; submit its own report to the FDA; and successfully complete a reinspection by FDA of the company’s Corporate and Taylor Street facilities.

On July 24, 2017, following its June 2017 reinspection of the Corporate and Taylor Street facilities, FDA notified the company that it is in substantial compliance with the FDA Act, FDA regulations and the terms of the consent decree and that the company was permitted to resume full operations at those facilities including the resumption of unrestricted sales of products made in those facilities.

The consent decree will continue in effect for at least five years from July 2017, during which time the company’s Corporate and Taylor Street facilities must complete two semi-annual audits in the first year and then four annual audits in the next four years performed by a company-retained expert firm. The expert audit firm will determine whether the facilities remain in continuous compliance with the FDA Act, FDA regulations and the terms of the consent decree. The FDA has the authority to inspect these facilities and any other FDA registered facility, at any time.

The FDA has continued to actively inspect the company’s facilities, other than through the processes established under the consent decree. The company expects that the FDA will, from time to time, inspect substantially all the company's domestic and foreign FDA-registered facilities. Recent inspections for which follow-up remains ongoing are summarized in the following paragraphs.

In June 2017, FDA inspected the company's Corporate and Taylor Street facilities in connection with the consent decree, as described above, and issued an inspectional observation on Form 483. The company submitted its response to the agency in a timely manner. On July 24, 2017, the FDA notified the company that it was in substantial compliance with the FDA Act, FDA

57

Notes to Financial Statements Contingencies

Regulations and the terms of the consent decree and that it was permitted to resume full operations at those facilities.

In March 2018, the company completed its first semi-annual independent expert audit of the Corporate and Taylor Street facilities, as required under the consent decree, with no adverse audit report observations. The audit report was submitted to, and accepted by FDA.

In September 2017, Alber GmbH, a wholly owned subsidiary of the company, received a warning letter from the FDA. The warning letter required completion of corrective actions to address Form 483 observations issued following FDA's inspection of Alber’s facility in Albstadt, Germany in May 2017. As a consequence of the warning letter, all Alber devices could not be imported into the United States until all findings were corrected to FDA’s satisfaction. On January 3, 2018, FDA notified the company that Alber’s responses to the warning letter were adequate, and that FDA had as of that date, removed the import suspension. FDA conducted its subsequent reinspection of Alber in April 2018, the result of which included no noted observations. The company expects the warning letter to be closed as a result of this inspection; however, the company cannot be assured of the timing or certainty of this outcome.

In November 2017, FDA inspected the company’s facility in Pinellas Park, Florida and issued its observations on Form 483, one of which was annotated as corrected and verified at the conclusion of the inspection. The company has submitted its response to FDA in a timely manner. In June 2018, the FDA notified the company that its responses to the Form 483 observations were adequate.

In November 2017, the FDA inspected the company’s facility in Sanford, Florida and issued its observations on Form 483, and the company submitted its response to FDA in a timely manner. In July 2018, the FDA notified the company that its responses to the Form 483 observations were adequate. The Sanford facility is the subject of a warning letter from the FDA issued in December 2010 related to quality systems processes and procedures, and the company continues to work on addressing the FDA’s citations.

The results of regulatory claims, proceedings, investigations, or litigation are difficult to predict. An unfavorable resolution or outcome of any FDA warning letters or inspectional observations, or other FDA enforcement related to company facilities, could materially and adversely affect the company's business, financial condition, and results of operations.

The limitations previously imposed by the FDA consent decree negatively affected net sales in the NA/HME segment and, to a certain extent, the Asia/Pacific segment beginning in 2012. The limitations led to delays in new product introductions. Further, uncertainty regarding how long the limitations would

be in effect limited the company’s ability to renegotiate and bid on certain customer contracts and otherwise led to a decline in customer orders.

Although the company has been permitted to resume full operations at the Corporate and Taylor Street facilities, the negative effect of the consent decree on customer orders and net sales in the NA/HME and Asia/Pacific segments has been considerable, and 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 previous limitations in the consent decree had, and likely may continue to have, a material adverse effect on the company's business, financial condition and results of operations.

Separately, net sales in the NA/HME segment have likely been 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 the impact of the National Competitive Bidding ("NCB") process. In addition, net sales in the NA/HME segment have declined and may continue to decline as a result of the company's strategic focus away from lower margin, less differentiated products, as the company becomes more focused on its clinically complex products.

Warranty Matters

The company's warranty reserves are subject to adjustment in future periods based on historical analysis of warranty claims and as new developments occur that may change the company's estimates related to specific product 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.

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

For additional information regarding the consent decree, other regulatory matters, and risks and trends that may impact the company’s financial condition or results of operations, please see the following sections of the company's Annual Report on Form 10-K for the year ended December 31, 2017: 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.

58

Notes to Financial Statements Market Risk and Controls

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

During the quarter ended June 30, 2018, there were no material changes to market risk information provided in the company's Annual Report on Form 10-K for the year ended December 31, 2017. Please refer to Item 7A - Quantitative and Qualitative Disclosures About Market Risk of company's Annual Report on Form 10-K for the period ending December 31, 2017.

Item 4.    Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

As of June 30, 2018, 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 June 30, 2018, 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 the Chief Financial Officer, as appropriate to allow for timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There have been no changes in the company’s internal control over financial reporting that occurred 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.

59

Part II Other Information

Part II. OTHER INFORMATION

Item 1.    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 currently 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 became subject to a consent decree of injunction filed by FDA in the U.S. District Court for the Northern District of Ohio with respect to the company's Corporate facility and its Taylor Street manufacturing facility in Elyria, Ohio. On July 24, 2017, following its reinspection of the Corporate and Taylor Street facilities, FDA notified the company that it was in substantial compliance with the FDA Act, FDA regulations and the terms of the consent decree and that the company was permitted to resume full operations at those facilities, including the resumption of unrestricted sales of products made in those facilities.

The consent decree will continue in effect for at least five years from July 24, 2017, during which time the company’s Corporate and Taylor Street facilities must complete to two semi-annual audits in the first year and then four annual audits in the next four years performed by a company-retained expert firm. The expert audit firm will determine whether the facilities remain in continuous compliance with the FDA Act, FDA regulations and the terms of the consent decree.

The FDA has the authority to inspect the Corporate and Taylor Street facilities, and any other FDA registered facility, 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, FDA Act 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, to 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.

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 Act or FDA regulations. FDA also may assess liquidated damages for shipments of adulterated or misbranded devices 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 FDA, including civil money penalties.

For additional information regarding the consent decree, please see the "Contingencies" note to the financial statements contained in Part I of this Quarterly Report on Form 10-Q, the risk factors referred to in Part I, Item 1A of this Quarterly Report on Form 10-Q, and the following sections of the company's Annual Report on Form 10-K for the period ending December 31, 2017: 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.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in Item 1A of the company’s Annual Report on Form 10-K for the fiscal period ended December 31, 2017.

60

Part II Other Information

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

The following table presents information with respect to repurchases of common shares made by the company during the three months ended June 30, 2018.

Period			Total Number of Shares Purchased (1)	Avg. 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)
4/1/2018	-	4/30/2018	—	$	—	—	2,453,978
5/1/2018	-	5/31/2018	85,791	17.30		—	2,453,978
6/1/2018	-	6/30/2018	—	—		—	2,453,978
Total			85,791	$	17.30	—	2,453,978

________ 

(1) All 85,791 shares repurchased between May 1, 2018 and May 31, 2018 were surrendered to the company by employees for minimum tax withholding purposes in conjunction with the vesting of restricted shares awarded to the employees or the exercise of non-qualified options by 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 purchased no shares pursuant to this Board authorized program during the quarter ended June 30, 2018.

Under the terms of the company's Credit Agreement, repurchases of shares by the company generally are not permitted except in certain limited circumstances in connection with the vesting or exercise of employee equity compensation awards.

61

Part II Other Information

Item 6.    Exhibits

Exhibit       No.
10.1	Form of Restricted Stock Award under Invacare Corporation 2018 Equity Compensation Plan.
10.2	Form of Restricted Stock Unit Award under Invacare Corporation 2018 Equity Compensation Plan.
10.3	Form of Director Restricted Stock Unit Award under Invacare Corporation 2018 Equity Compensation Plan.
10.4	Form of Performance Award under Invacare Corporation 2018 Equity Compensation Plan.
10.5	Form of Performance Unit Award under Invacare Corporation 2018 Equity Compensation Plan.
10.6	Letter agreement, dated as of May 9, 2018, by and between the company and Darcie Karol.
31.1	Chief Executive Officer Rule 13a-14(a)/15d-14(a) Certification (filed herewith).
31.2	Chief Financial Officer Rule 13a-14(a)/15d-14(a) Certification (filed herewith).
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 (furnished herewith).
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 (furnished herewith).
101.INS*	XBRL instance document
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

* Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

62

Signatures

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		INVACARE CORPORATION
Date:	August 7, 2018	By:	/s/ Kathleen P. Leneghan
			Name:  Kathleen P. Leneghan
			Title:  Chief Financial Officer
			(As Principal Financial and Accounting Officer and on behalf of the registrant)

63

EX-10.1

Exhibit 10.1

AWARD AGREEMENT - EMPLOYEES

(For Restricted Stock Award)

To:                        

(Name of Award Recipient)

    Date of Grant:

There hereby is granted to you, as a key employee of Invacare Corporation (“Invacare”) or of a subsidiary, an award of XX,XXX restricted shares of Invacare Common Stock, no par value. This award is granted to you pursuant to the Invacare Corporation 2018 Equity Compensation Plan (the “Plan”) and is

subject to the terms and conditions set forth below. This award is granted for valuable future services to be rendered by you to Invacare or a subsidiary. Please acknowledge your acceptance of the terms of this award by signing below.

/s/ Anthony C. LaPlaca

Anthony LaPlaca

Sr. Vice President, General Counsel and Secretary

I. VESTING AND DELIVERY OF SHARES

You shall vest in the number of shares indicated on the Vesting Schedule in the Appendix.

Invacare will issue you “net shares” on each Vesting Date after withholding the number of shares necessary to cover your withholding tax obligations. Except as provided herein, the award will not vest, and you shall not receive a certificate on each Vesting Date indicated above unless you are a current employee of Invacare or a subsidiary on a continuous basis from the date hereof through such vesting date.

II. TERM OF AWARD

Your award shall not be affected by any temporary leave of absence approved in writing by Invacare and described in Section 1.421-7(h) of the Federal Income Tax Regulations. If, prior to the Vesting Date, you cease to be an employee for any reason other than death, you will forfeit any and all rights you have to the shares.

If you die prior to the Vesting Date and while you are an employee, your estate or personal representative shall become vested in a prorated number of the shares based on the number of completed months between the date hereof and the date of your death.

If, prior to the Vesting Date, the Invacare Compensation and Management Development Committee (the “Committee”) finds that you intentionally committed an act materially inimical to the interests of Invacare or a subsidiary, you shall forfeit all of the shares as of the time you committed such act, as determined by the Committee.

III. TERMINATION OF AWARD UNDER

CERTAIN CIRCUMSTANCES

The Committee may cancel your award at any time prior to the Vesting Date, in which case you shall forfeit all of the shares as of the date of such cancellation, if you are not in compliance with all applicable provisions of this Agreement or the Plan or if you, without the prior written consent of the Committee, engage in any of the following activities: (i) you render services for an organization, or engage in a business, that is, in the judgment of the Committee, in competition with Invacare; or (ii) you disclose to anyone outside of Invacare, or use for any purpose other than Invacare's business, any confidential information or material relating to Invacare, whether acquired by you during or after employment with Invacare, in a fashion or with a result that is or may be injurious to the best interests of Invacare, as determined by the Committee.

The Committee may, in its discretion and as a condition to the continuance of this award, require you to represent in writing that you are in compliance

with all applicable provisions of this Agreement and the Plan and have not engaged in any activities referred to in clauses (i) and (ii) above.

IV. DIVIDENDS

You shall be entitled to dividends with respect to the shares comprising this award only after they have become vested and only to the extent such dividends are declared and paid on or after the Vesting Date. Such amount shall be paid to you and treated appropriately for tax purposes.

V. TRANSFERABILITY

This Agreement shall be binding upon and inure to the benefit of any successor of Invacare and your heirs, estate and personal representative. Your award shall not be transferable other than by will or the laws of descent and distribution.

VI. ADJUSTMENTS OR AMENDMENTS

Subject to Section 4.06 of the Plan, in the event that, subsequent to the date of this Agreement and prior to the Vesting Date, the outstanding common shares of Invacare are, as a result of a stock split, stock dividend, combination or exchange of shares, exchange of other securities, reclassification, reorganization, redesignation, merger, consolidation, recapitalization, liquidation, dissolution, sale of assets or other such change, including, without limitation, any transaction described in Section 424(a) of the Code, increased, decreased, changed into or exchanged for a different number or kind of shares of stock or other securities of Invacare or another entity or converted into cash, then, except as otherwise provided below, there shall automatically be substituted for each Invacare common share subject to the award, the amount of cash or other securities or property into which each outstanding Invacare common share shall be converted or exchanged. Notwithstanding the preceding provisions of this Paragraph VI, the Committee may, in its sole discretion, make other adjustments or amendments to the securities subject to the award and/or amend the provisions of the Plan and/or this Agreement, to the extent appropriate, equitable and in compliance with the Plan and provisions of Sections 409A and 424(a) of the Code to the extent applicable and any such adjustment or amendment shall be final, binding and conclusive. Any such adjustment or amendment shall provide for the elimination of fractional shares.

VII. PROVISIONS OF PLAN CONTROL

This Agreement is subject to all of the terms, conditions and provisions of the Plan (all of which are incorporated herein by reference) and to such rules, regulations, and interpretations related to the Plan as may be adopted by the Committee and as may be in effect from time to time. In the event and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions, and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Committee has

authority to interpret and construe any provision of this Agreement and its interpretation and construction shall be binding and conclusive.

VIII. LIABILITY

The liability of Invacare under this Agreement and any distribution of shares made hereunder is limited to the obligations set forth herein with respect to such distribution and no term or provision of this Agreement shall be construed to impose any liability on Invacare, its officers, employees or any subsidiary with respect to any loss, cost or expense which you may incur in connection with or arising out of any transaction in connection with this Agreement.

IX. WITHHOLDING

You agree that, as a condition to your receipt of the shares awarded hereunder, Invacare may make appropriate provision for tax withholding, if required, with respect to the transactions contemplated by this Agreement.

X. ADJUSTMENT AND CLAWBACK. You acknowledge that this award and any payment made hereunder is subject to Invacare’s Executive Compensation Adjustment and Recapture Policy. In addition, you acknowledge that the Plan will be administered in compliance with Section 10D of the Securities Exchange Act of 1934, as amended, any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which Invacare’s shares may be traded, and any policy of Invacare adopted pursuant to such law, rules, or regulations. This agreement may be amended to further such purpose without your consent.

XI. SECTION 409A OF THE CODE. It is intended that this Agreement and the compensation and benefits hereunder meet the requirements for exemption from Section 409A of the Code (“Section 409A”), and this Agreement shall be so interpreted and administered. In addition to the general amendment rights of Invacare with respect to the Plan, Invacare specifically retains the unilateral right (but not the obligation) to make, prospectively or retroactively, any amendment to this Agreement or any related document as it deems necessary or desirable to more fully address issues in connection with exemption from (or compliance with) Section 409A and other laws. In no event, however, shall this section or any other provisions of this Agreement be construed to require Invacare to provide any gross‑up for the tax consequences of any provisions of, or payments under, this Agreement. Except as may be provided in another agreement to which Invacare is bound, Invacare and its affiliates shall have no responsibility for tax or legal consequences to you (or your beneficiaries) resulting from the terms or operation of this Agreement or the Plan.

ACCEPTANCE

The undersigned hereby accepts the terms of the restricted stock award granted herein and acknowledges receipt of a copy of the Invacare Corporation 2018 Equity Compensation Plan.

_________________________ ___________________

(Signature of Award Recipient)     (Date)

EX-10.2

Exhibit 10.2

AWARD AGREEMENT - NON-U.S. EMPLOYEES

(For Service-Based Restricted Stock Units Award)

To:                        

(Name of Award Recipient)

    Date of Grant:

There hereby is granted to you, as a key employee of Invacare Corporation (“Invacare”) or of a subsidiary, an award of XX,XXX Restricted Stock Units. This award is granted to you pursuant to the Invacare Corporation 2018 Equity Compensation Plan (the “Plan”) and is subject to the terms and conditions set

forth below and in the Plan. This award is granted for valuable future services to be rendered by you to Invacare or a subsidiary. Please acknowledge your acceptance of the terms of this award by signing below.

/s/ Anthony C. LaPlaca

Anthony LaPlaca

Sr. Vice President, General Counsel and Secretary

I. VESTING AND DELIVERY OF SHARES

You will be entitled to receive a number of shares of Invacare common stock (the “Shares”) equal to the number of Restricted Stock Units (“RSUs”) granted hereunder. You shall vest in the number of RSUs as indicated on the Vesting Schedule in the Appendix.

Invacare will issue you “net shares” on each Vesting Date after withholding the number of shares necessary to cover your withholding tax obligations. Except as provided herein, the award will not vest, and you shall not receive a certificate on each Vesting Date indicated above unless you are a current employee of Invacare or a subsidiary on a continuous basis from the date hereof through such vesting date.

II. TERM OF AWARD

Your award shall not be affected by any temporary leave of absence approved in writing by Invacare and described in Section 1.421-7(h) of the Federal Income Tax Regulations. If, prior to the Vesting Date, you cease to be an employee for any reason other than Retirement, death or disability, you will forfeit any and all rights you have to the RSUs.

If, prior to the Vesting Date, you die or become disabled while you are an employee or Retire, you, or your estate or personal representative, shall become vested in a prorated number of RSUs. The prorated number of RSUs shall be equal to (a) times (b), in which (a) is the number of RSUs granted hereunder and (b) is (i) the number of completed months between the date of grant and the date of your Retirement, death or termination due to disability divided by (ii) 36. If the proration formula results in any fractional shares, such fractional shares shall be rounded to the next lower whole Share. Any Shares to which you (or your estate or personal representative) become entitled pursuant to this paragraph shall be delivered to you (or your estate or personal representative) no later than sixty (60) days following the date of your termination of employment due to Retirement, disability or death. For purposes of this Agreement, “Retirement” or “Retire” means a termination of your employment with Invacare or a subsidiary after you have attained either (i) age fifty-five (55) with ten (10) years of service to Invacare or a subsidiary or (ii) age sixty-five (65) with five (5) years of service to Invacare or a subsidiary.

If, prior to the Vesting Date, the Compensation and Management Development Committee of the Board of Directors of Invacare (the “Committee”) finds that you intentionally committed an act materially inimical to the interests of Invacare or a subsidiary, you shall forfeit all of the RSUs as of the time you committed such act, as determined by the Committee.

III. TERMINATION OF AWARD UNDER

CERTAIN CIRCUMSTANCES

The Committee may cancel your award at any time prior to the Vesting Date, in which case you shall forfeit all of the RSUs as of the date of such cancellation, if you are not in compliance with all applicable provisions of this Agreement or the Plan or if you, without the prior written consent of the Committee, engage in any of the following activities: (i) you render services for an organization, or engage in a business, that is, in the judgment of the Committee, in competition with Invacare; or (ii) you disclose to anyone outside of Invacare, or use for any purpose other than Invacare's business, any confidential information or material relating to Invacare, whether acquired by you during or after employment with Invacare, in a fashion or with a result that is or may be injurious to the best interests of Invacare, as determined by the Committee.

The Committee may, in its discretion and as a condition to the continuance of this award, require you to represent in writing that you are in compliance with all applicable provisions of this Agreement and the Plan and have not engaged in any activities referred to in clauses (i) and (ii) above.

IV. DIVIDENDS

The RSUs shall not entitle you to receive any dividends that are paid with respect to Invacare’s common stock prior to the Vesting Date. Upon the vesting of the RSUs and the issuance of Shares to you, you shall become entitled to any dividends that are paid with respect to such Shares after the Vesting Date.

V. TRANSFERABILITY

This Agreement shall be binding upon and inure to the benefit of any successor of Invacare and your heirs, estate and personal representative. Your award shall not be transferable other than by will or the laws of descent and distribution.

VI. ADJUSTMENTS OR AMENDMENTS

Subject to Section 4.06 of the Plan, in the event that, subsequent to the date of this Agreement and prior to the Vesting Date, the outstanding common shares of Invacare are, as a result of a stock split, stock dividend, combination or exchange of shares, exchange of other securities, reclassification, reorganization, redesignation, merger, consolidation, recapitalization, liquidation, dissolution, sale of assets or other such change, including, without limitation, any transaction described in Section 424(a) of the Internal Revenue Code (the “Code”), increased, decreased, changed into or exchanged for a different number or kind of shares of stock or other securities of Invacare or another entity or converted into cash, then, except as otherwise provided below, there shall automatically be substituted for each Invacare common share subject to the award, the amount of cash or other securities or property into which each outstanding Invacare common share shall be converted or exchanged. Notwithstanding the preceding provisions of this Paragraph VI, the Committee may, in its sole discretion, make other adjustments or amendments to the securities subject to the award and/or amend the provisions of the Plan and/or this Agreement, to the extent appropriate, equitable and in compliance with the Plan and provisions of Sections 409A and 162(m) of the Code to the extent applicable and any such

adjustment or amendment shall be final, binding and conclusive. Any such adjustment or amendment shall provide for the elimination of fractional shares.

VII. PROVISIONS OF PLAN CONTROL

This Agreement is subject to all of the terms, conditions and provisions of the Plan (all of which are incorporated herein by reference) and to such rules, regulations, and interpretations related to the Plan as may be adopted by the Committee and as may be in effect from time to time. In the event and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions, and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Committee has authority to interpret and construe any provision of this Agreement and its interpretation and construction shall be binding and conclusive.

VIII. LIABILITY

The liability of Invacare under this Agreement and any distribution of Shares made hereunder is limited to the obligations set forth herein with respect to such distribution and no term or provision of this Agreement shall be construed to impose any liability on Invacare, its officers, employees or any subsidiary with respect to any loss, cost or expense which you may incur in connection with or arising out of any transaction in connection with this Agreement.

IX. WITHHOLDING

You agree that, as a condition to your receipt of the Shares upon vesting of the RSUs hereunder, Invacare may make appropriate provision for tax withholding, if required, with respect to the transactions contemplated by this Agreement. Unless you make other arrangements that are satisfactory to the Committee to cover Invacare’s or its subsidiary’s withholding obligations, at any time that taxes are required to be withheld in connection with the RSUs, Invacare or its subsidiary shall withhold Shares from the Shares otherwise deliverable to you with a Fair Market Value (as defined in the Plan) equal to the amount required to satisfy the minimum tax withholding obligations applicable to you relating to this Agreement.

X. ADJUSTMENT AND CLAWBACK. You acknowledge that this award and any payment made hereunder is subject to Invacare’s Executive Compensation Adjustment and Recapture Policy. In addition, you acknowledge that the Plan will be administered in compliance with Section 10D of the Securities Exchange Act of 1934, as amended, any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which Invacare’s shares may be traded, and any policy of Invacare adopted pursuant to such law, rules, or regulations. This Agreement may be amended to further such purpose without your consent.

XI. SECTION 409A OF THE CODE. It is intended that this Agreement and the compensation and benefits hereunder meet the requirements for compliance with, or exemption from, Section 409A of the Code (“Section 409A”), and this Agreement shall be so interpreted and administered. In addition to the general amendment rights of Invacare with respect to the Plan, Invacare specifically retains the unilateral right (but not the obligation) to make, prospectively or retroactively, any amendment to this Agreement or any related document as it deems necessary or desirable to more fully address issues in connection with exemption from (or compliance with) Section 409A and other laws. In no event, however, shall this section or any other provisions of this Agreement be construed to require Invacare to provide any gross‑up for the tax consequences of any provisions of, or payments under, this Agreement. Except as may be provided in another agreement to which Invacare is bound, Invacare and its affiliates shall have no responsibility for tax or legal consequences to you (or your beneficiaries) resulting from the terms or operation of this Agreement or the Plan.

XII. DATA PRIVACY. You hereby acknowledge that the administration of this award is subject to Invacare’s Data Privacy Policy, as may be amended from time to time, and you consent to the terms of such policy along with the provisions of Exhibit A hereto.

XIII. EXHIBIT A. Notwithstanding any provisions in this Agreement, the grant of the RSUs shall be subject to any special terms and conditions set forth in Exhibit A to this Agreement for your country. Moreover, if you relocate to one of the countries included in Exhibit A, the special terms and conditions for such country will apply to you to the extent Invacare determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. Exhibit A constitutes part of this Agreement.

ACCEPTANCE

The undersigned hereby accepts the terms of the Service-Based Restricted Stock Units award granted herein and acknowledges receipt of a copy of the Invacare Corporation 2018 Equity Compensation Plan.

_________________________ ___________________

(Signature of Award Recipient)     (Date)

EXHIBIT A

ADDITIONAL TERMS AND CONDITIONS OF INVACARE CORPORATION

SERVICE-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT

NON-U.S. EMPLOYEES

Terms and Conditions

This Exhibit A includes special terms and conditions applicable to you if you reside in one of the countries listed below. These terms and conditions are in addition to or, if so indicated, in place of, the terms and conditions set forth in the Agreement. Unless otherwise provided below, capitalized terms used but not defined herein shall have the same meanings assigned to them in the Plan and the Agreement.

Notifications

This Exhibit A also includes country-specific information of which you should be aware with respect to your participation in the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries as of March 2014. Such laws are often complex and change frequently. As a result, Invacare strongly recommends that you do not rely on the information noted herein as the only source of information relating to the consequences of your participation in the Plan because the information may be out of date at the time that you vest in the RSUs or sell Shares acquired under the Plan.

In addition, the information is general in nature and may not apply to your particular situation, and Invacare and its affiliates are not in a position to assure you of any particular result. Accordingly, you are advised to seek appropriate professional advice as to how the relevant laws in your country may apply to your situation. Finally, please note that if you are a citizen or resident of a country other than the country in which you are currently working, or transfer employment after grant, the information contained in this Exhibit A may not be applicable to you.

Australia

Exchange Control Information. Exchange control reporting is required for cash transactions exceeding AUD10,000 and for international fund transfers. If an Australian bank is assisting with the transaction, the bank will file the report on your behalf.

Securities Law Information. If you acquire Shares under the Plan and offer the Shares for sale to a person or entity resident in Australia, the offer may be subject to disclosure requirements under Australian law. You should consult with your own legal advisor before making any such offer in Australia.

Canada

Settlement of RSUs. Notwithstanding any terms or conditions of the Plan or the Agreement to the contrary, RSUs will be settled in Shares only, not cash.

Securities Law Information. You acknowledge and agree that you will only sell Shares acquired through participation in the Plan outside of Canada through the facilities of a stock exchange on which the Shares are listed. Currently, the Shares are listed on the New York Stock Exchange.

Termination of Employment. Notwithstanding anything in the Agreement to the contrary, in the event of your termination of employment or other service relationship (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), your right to vest in the RSUs will terminate effective as of the date that is the earlier of (1) the date you are no longer actively providing service or (2) the date you receive notice of termination of employment from Invacare or a subsidiary, regardless of any notice period or period of pay in lieu of such notice required under applicable laws (including, but not limited to statutory law, regulatory law and/or common law); Invacare shall have the exclusive discretion to determine when you are no longer actively employed for purposes of the RSUs.

The following provisions apply if you are resident in Quebec:

Language Acknowledgment

The parties acknowledge that it is their express wish that this Agreement, including this Addendum, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be provided to them in English.

Consentement relatif à la langue utilisée. Les parties reconnaissent avoir expressément souhaité que la convention («Agreement») ainsi que cette Annexe, ainsi que tous les documents, avis et procédures judiciares, éxécutés, donnés ou intentés en vertu de, ou liés directement ou indirectement à la présente convention, soient rédigés en langue anglaise.

Data Privacy. This provision supplements Article XII of the Agreement:

You hereby authorize Invacare, its subsidiaries and their representatives to discuss with, obtain and process all relevant information in connection with the Agreement, including your personal data, from all personnel, professional or not, involved in the administration and operation of the Plan. You further authorize Invacare and its subsidiaries to disclose and discuss the Plan, the Agreement and your personal data with their advisors. You further authorize Invacare and its subsidiaries to record and process such information and to keep such information in your employee file.

China

Settlement of RSUs and Sale of Shares. Due to local regulatory requirements, upon the vesting of the RSUs, you agree to the immediate sale of any Shares to be issued to you upon vesting and settlement of the RSUs. You further agree that Invacare is authorized to instruct its designated broker to assist with the mandatory sale of such Shares (on your behalf pursuant to this authorization) and you expressly authorize Invacare’s designated broker to complete the sale of such Shares. You acknowledge that Invacare’s designated broker is under no obligation to arrange for the sale of the Shares at any particular price. Upon the sale of the Shares, Invacare agrees to pay you the cash proceeds from the sale of Shares, less any brokerage fees or commissions and subject to any obligation to satisfy tax withholding requirements.

Treatment of RSUs Upon Termination of Employment. Notwithstanding anything in the Agreement to the contrary, any portion of Shares that vests upon termination of your employment will be distributed to you no later than three months from the date of termination, as determined by Invacare. If all or a portion of your RSUs become distributable at some time following your termination of employment, that portion will vest and become distributable immediately upon termination of your employment. Any Shares distributed to you according to this paragraph will be sold immediately upon distribution, as described above.

Exchange Control Information. You understand and agree that, to facilitate compliance with exchange control requirements, you will be required to immediately repatriate to China the cash proceeds from the immediate sale of the Shares issued upon the vesting of the RSUs. You further understand that, under local law, such repatriation of the cash proceeds will be effectuated through a special exchange control account established by Invacare or its subsidiaries, and you hereby consent and agree that the proceeds from the sale of Shares acquired under the Plan may be transferred to such special account prior to being delivered to you. Invacare may deliver the proceeds to you in U.S. dollars or local currency at Invacare’s discretion. If the proceeds are paid in U.S. dollars, you understand that you will be required to set up a U.S. dollar bank account in China so that the proceeds may be deposited into this account. If the proceeds are converted to local currency, there may be delays in delivering the proceeds to you and due to fluctuations in the Shares’ trading price and/or the U.S. dollar/PRC exchange rate between the vesting/sale date and (if later) when the sale proceeds can be converted into local currency, the sale proceeds that you receive may be more or less than the market value of the Common Stock on the vesting/sale date (which is the amount relevant to determining your tax liability). You agree to bear the risk of any currency fluctuation between the date the RSUs vest and the date of conversion of the proceeds into local currency.

You further agree to comply with any other requirements that may be imposed by Invacare in the future to facilitate compliance with exchange control requirements in China.

Finland

There are no country specific provisions.

France

Language Acknowledgement

En signant et renvoyant le présent document décrivant les termes et conditions de votre attribution, vous confirmez ainsi avoir lu et compris les documents relatifs á cette attribution (le Plan et ce Contrat d’Attribution) qui vous ont été communiqués en langue anglaise.

By accepting your RSUs, you confirm having read and understood the documents relating to this grant (the Plan and this Agreement) which were provided to you in English.

Exchange Control Information. If you import or export cash (e.g., sales proceeds received under the Plan) with a value equal to or exceeding €10,000 and do not use a financial institution to do so, you must submit a report to the customs and excise authorities.

If you hold Shares outside of France or maintain a foreign bank account, you are required to report such to the French tax authorities when filing your annual tax return. Failure to comply could trigger significant penalties.

Germany

Exchange Control Information. Cross-border payments in excess of €12,500 must be reported monthly to the German Federal Bank. In the event that you make or receive a payment in excess of this amount, you are responsible for obtaining the appropriate form from the remitting bank and complying with applicable reporting requirements.

Mexico

Labor Law Policy and Acknowledgment. By accepting this Award, you expressly recognize that Invacare Corporation, with offices at 1 Invacare Way, Elyria, Ohio 44035, U.S.A., is solely responsible for the administration of the Plan and the Agreement and that your participation in the Plan and acquisition of Shares does not constitute an employment relationship between you and Invacare since you are participating in the Plan on a wholly commercial basis and your sole employer is Invamex, not Invacare in the United States. Based on the foregoing, you expressly recognize that the Plan and the benefits that you may derive from participation in the Plan do not establish any rights between you and your employer, Invamex, and do not form part of the employment conditions and/or benefits provided by Invamexand any modification of the Plan or its termination shall not constitute a change or impairment of the terms and conditions of your employment.

You further understand that your participation in the Plan is as a result of a unilateral and discretionary decision of Invacare; therefore, Invacare reserves the absolute right to amend and/or discontinue your participation at any time without any liability to you.

Finally, you hereby declare that you do not reserve to yourself any action or right to bring any claim against Invacare for any compensation or damages regarding any provision of the Plan or the benefits derived under the Plan, and you therefore grant a full and broad release to Invacare, its subsidiaries, affiliates, branches, representation offices, its shareholders, officers, agents or legal representatives with respect to any claim that may arise.

Netherlands

Insider-Trading Notification. You should be aware of the Dutch insider-trading rules, which may impact the sale of Shares issued to you at settlement of the RSUs. In particular, you may be prohibited from effectuating certain transactions involving shares of Invacare Common Stock if you have inside information about Invacare.

Under Article 5:56 of the Dutch Financial Supervision Act, anyone who has “inside information” related to an issuing company is prohibited from effectuating a transaction in securities in or from the Netherlands. “Inside information” is defined as knowledge of specific information concerning the issuing company to which the securities relate or the trade in securities issued by such company, which has not been made public and which, if published, would reasonably be expected to affect the share price, regardless of the development of the price. The insider could be any employee of a subsidiary in the Netherlands who has inside information as described herein.

Given the broad scope of the definition of inside information, certain employees working at a subsidiary in the Netherlands may have inside information and, thus, would be prohibited from effectuating a transaction in securities in the Netherlands at a time when they have such inside information.

By accepting the RSUs and the underlying Shares, you acknowledge having read and understood the notification above and acknowledge that it is your responsibility to comply with the Dutch insider trading rules, as discussed herein.

If you are uncertain whether the insider-trading rules apply to you, you should consult your personal legal advisor.

New Zealand

There are no country-specific provisions.

Norway

There are no country-specific provisions.

Sweden

There are no country-specific provisions.

Switzerland

Securities Law Notification. The RSUs offered hereunder are considered a private offering in Switzerland and are, therefore, not subject to registration in Switzerland.

United Kingdom

You agree that, if you do not pay or Invacare or a subsidiary does not withhold from you the full amount of all taxes, including without limitation income tax, social security, payroll tax, fringe benefits tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you or deemed by Invacare or a subsidiary to be an appropriate charge to you even if legally applicable to Invacare or a subsidiary, that you owe at vesting and settlement of the RSUs, or the release or assignment of the RSUs for consideration, or the receipt of any other benefit in connection with the RSUs (the “Taxable Event”) within 90 days after the Taxable Event, or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003, then the amount of income tax that should have been withheld shall constitute a loan owed by you to Invacare or a subsidiary, effective 90 days after the Taxable Event. You agree that the loan will bear interest at Her Majesty’s Revenue & Customs’ (“HMRC”) official rate and will be immediately due and repayable by you, and Invacare or a subsidiary may recover it at any time thereafter by withholding the funds from salary, bonus or any other funds due to you by Invacare or its subsidiary, by withholding in Shares issued upon vesting of your RSUs or from the cash proceeds from the sale of Shares or by demanding cash or a cheque from you. You also authorize Invacare to delay the issuance of any Shares unless and until the loan is repaid in full.

Notwithstanding the foregoing, if you are an officer or executive director (as within the meaning of Section 13(k) of the U.S. Securities Exchange Act of 1934, as amended), the terms of the immediately foregoing provision will not apply. In the event that you are an officer or executive director and the income tax that is due is not collected from or paid by you within 90 days of the Taxable Event, the amount of any uncollected income tax may constitute a benefit to you on which additional income tax and national insurance contributions may be payable. You will be responsible for reporting and paying any income tax due on this additional benefit directly to the HMRC under the self-assessment regime and for reimbursing Invacare or its subsidiary (as appropriate) for the value of any employee national insurance contributions due on this additional benefit.

EX-10.3

Exhibit 10.3

AWARD AGREEMENT - DIRECTORS

(For Service-Based Restricted Stock Units Award)

To:                        

(Name of Award Recipient)

    Date of Grant:

There hereby is granted to you, as a Director of Invacare Corporation (“Invacare”), an award of XX,XXX Restricted Stock Units. This award is granted to you pursuant to the Invacare Corporation 2018 Equity Compensation Plan (the “Plan”) and is subject to the terms and conditions set forth below

and in the Plan. This award is granted for valuable services to be rendered by you to Invacare. Please acknowledge your acceptance of the terms of this award by signing below.

/s/ Anthony LaPlaca

Anthony LaPlaca

Sr. Vice President, General Counsel and Secretary

I. VESTING AND DELIVERY OF SHARES

Subject to your continuous service with Invacare (except as provided in Article II) through [Insert Date] (the “Vesting Date”), you will be entitled to receive a number of shares of Invacare common stock (the “Shares”) equal to 100% of the Restricted Stock Units (“RSUs”) granted hereunder. The Shares will be delivered to you no later than sixty (60) days following the Vesting Date, subject to any applicable withholding.

II. TERM OF AWARD

If, prior to the Vesting Date, you cease to be a Director for any reason other than Retirement, death or Disability, you will forfeit any and all rights you have to the RSUs.

If, prior to the Vesting Date, you die or become Disabled while you are a Director, you, or your estate or personal representative, shall become vested in 100% of the RSUs. If your RSUs vest due to your death or Disability, the underlying Shares shall be delivered to you or your personal representative or estate no later than sixty (60) days after the date of your death or Disability. For purposes of this Agreement, “Disabled” or “Disability” means (i) a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months and that results in the your being unable to engage in any substantial gainful activity; or (ii) you are determined to be totally disabled by the Social Security Administration.

If you Retire prior to the Vesting Date, you will not forfeit the RSUs and the RSUs will continue to vest as if you remained a Director. The underlying Shares shall be delivered to you no later than sixty (60) days following the Vesting Date defined in Article I. For purposes of this Agreement, “Retirement” or “Retire” means your voluntary cessation of service as a Director of Invacare after you have attained either (i) age fifty-five (55) with ten (10) years of service to Invacare (including service as an employee) or (ii) age sixty-five (65) with five (5) years of service to Invacare (including service as an employee).

If, prior to the Vesting Date, the Compensation and Management Development Committee of the Board of Directors of Invacare (the “Committee”) finds that you intentionally committed an act materially inimical to the interests of Invacare or a subsidiary, you shall forfeit all of the RSUs as of the time you committed such act, as determined by the Committee.

III. TERMINATION OF AWARD UNDER

CERTAIN CIRCUMSTANCES

The Committee may cancel your award at any time prior to the Vesting Date, in which case you shall forfeit all of the RSUs as of the date of such cancellation, if you are not in compliance with all applicable provisions of this Agreement or the Plan or if you, without the prior written consent of the Committee, engage in any of the following activities: (i) you render services for an organization, or engage in a business, that is, in the judgment of the Committee, in competition with Invacare; or (ii) you disclose to anyone outside of Invacare, or use for any purpose other than Invacare's business, any confidential information or material relating to Invacare, whether acquired by you during or after service with Invacare, in a fashion or with a result that is or may be injurious to the best interests of Invacare, as determined by the Committee.

The Committee may, in its discretion and as a condition to the continuance of this award, require you to represent in writing that you are in compliance with all applicable provisions of this Agreement and the Plan and have not engaged in any activities referred to in clauses (i) and (ii) above.

IV. NO SHAREHOLDER RIGHTS

The RSUs shall not entitle you to vote or receive any dividends with respect to the Shares underlying the RSUs prior to the Vesting Date. Upon the vesting of the RSUs and the delivery of Shares to you, you shall become entitled to full shareholder rights with respect to such Shares.

V. TRANSFERABILITY

This Agreement shall be binding upon and inure to the benefit of any successor of Invacare and your heirs, estate and personal representative. Your award shall not be transferable other than by will or the laws of descent and distribution.

VI. ADJUSTMENTS OR AMENDMENTS

Subject to Section 4.06 of the Plan, in the event that, subsequent to the date of this Agreement and prior to the Vesting Date, the outstanding common shares of Invacare are, as a result of a stock split, stock dividend, combination or exchange of shares, exchange of other securities, reclassification, reorganization, redesignation, merger, consolidation, recapitalization, liquidation, dissolution, sale of assets or other such change, including, without limitation, any transaction described in Section 424(a) of the Internal Revenue Code (the “Code”), increased, decreased, changed into or exchanged for a different number or kind of shares of stock or other securities of Invacare or another entity or converted into cash, then, except as otherwise provided below, there shall automatically be substituted for each Invacare common share subject to the award, the amount of cash or other securities or property into which each outstanding Invacare common share shall be converted or exchanged. Notwithstanding the preceding provisions of this Paragraph VI, the Committee may, in its sole discretion, make other adjustments or amendments to the securities subject to the award and/or

amend the provisions of the Plan and/or this Agreement, to the extent appropriate, equitable and in compliance with the Plan and provisions of Sections 409A to the extent applicable and any such adjustment or amendment shall be final, binding and conclusive. Any such adjustment or amendment shall provide for the elimination of fractional shares.

VII. PROVISIONS OF PLAN CONTROL

This Agreement is subject to all of the terms, conditions and provisions of the Plan (all of which are incorporated herein by reference) and to such rules, regulations, and interpretations related to the Plan as may be adopted by the Committee and as may be in effect from time to time. In the event and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions, and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Committee has authority to interpret and construe any provision of this Agreement and its interpretation and construction shall be binding and conclusive.

VIII. LIABILITY

The liability of Invacare under this Agreement and any distribution of Shares made hereunder is limited to the obligations set forth herein with respect to such distribution and no term or provision of this Agreement shall be construed to impose any liability on Invacare, its officers, employees or any subsidiary with respect to any loss, cost or expense which you may incur in connection with or arising out of any transaction in connection with this Agreement.

IX. WITHHOLDING

You agree that, as a condition to your receipt of the Shares upon vesting of the RSUs hereunder, Invacare may make appropriate provision for tax withholding, if required, with respect to the transactions contemplated by this Agreement.

X. SECTION 409A OF THE CODE. It is intended that this Agreement and the payments hereunder meet the requirements for compliance with (or exemption from) Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (“Section 409A”), and this Agreement shall be so interpreted and administered. With respect to any payment hereunder that constitutes “deferred compensation” for purposes of Section 409A, neither Invacare nor you may accelerate or defer the time of any payment, except to the extent acceleration or deferral is permitted by or complies with the requirements of Section 409A and the regulations and other guidance promulgated thereunder. In addition to the general amendment rights of Invacare with respect to the Plan, Invacare specifically retains the unilateral right (but not the obligation) to make, prospectively or retroactively, any amendment to this Agreement or any related document as it deems necessary or desirable to more fully address issues in connection with exemption from (or compliance with) Section 409A and other laws. In no event, however, shall this section or any other provisions of this Agreement be construed to require Invacare to provide any gross‑up for the tax consequences of any provisions of, or payments under, this Agreement. Except as may be provided in another agreement to which Invacare is bound, Invacare and its affiliates shall have no responsibility for tax or legal consequences to you (or your beneficiaries) resulting from the terms or operation of this Agreement or the Plan.

.

ACCEPTANCE

The undersigned hereby accepts the terms of the Service-Based Restricted Stock Units award granted herein and acknowledges receipt of a copy of the Invacare Corporation 2018 Equity Compensation Plan.

_________________________ ___________________

(Signature of Award Recipient)     (Date)

EX-10.4

Exhibit 10.4

AWARD AGREEMENT - EMPLOYEES

(For Performance Shares Award)

To:                        Number:

(Name of Award Recipient)

    Date of Grant:

There hereby is granted to you, as a key employee of Invacare Corporation (“Invacare”) or of a subsidiary, an award of XX,XXX performance shares (the “Target Number”). This award is granted to you pursuant to the Invacare Corporation 2018 Equity Compensation Plan (the “Plan”) and is subject to

the terms and conditions set forth below and in the Plan. This award is granted for valuable future services to be rendered by you to Invacare or a subsidiary. Please acknowledge your acceptance of the terms of this award by signing below.

/s/ Anthony C. LaPlaca

Anthony LaPlaca

Sr. Vice President, General Counsel and Secretary

I. VESTING AND DELIVERY OF SHARES. The Performance Period (as defined in the Plan) for the performance shares granted hereunder shall start on [Insert Date] and end on [Insert Date]. Subject to your continuous employment with Invacare or a subsidiary (except as provided in the case of your Retirement (as defined in Article II), death or disability) through the final date of the Performance Period (the “Vesting Date”), you will be entitled to receive a number of shares of Invacare common stock (the “Shares”) equal to the number of performance shares that vest based on the levels of achievement of the performance goals set forth in Exhibit A, which may range from 0% to 150% of the Target Number. To the extent vested and deliverable, Invacare will issue you “net shares” on the Vesting Date after withholding the number of shares necessary to cover your withholding tax obligations. The net Shares will be delivered to you no later than sixty (60) days following the Vesting Date.

II. TERM OF AWARD. Your award shall not be affected by any temporary leave of absence approved in writing by Invacare and described in Section 1.421-7(h) of the Federal Income Tax Regulations. If, prior to the Vesting Date, you cease to be an employee for any reason other than Retirement, death or disability, you will forfeit any and all rights you have to the performance shares.

If you die or become disabled prior to the Vesting Date and while you are an employee, you, or your estate or personal representative, shall become vested in a prorated number of performance shares. The prorated number of performance shares shall be equal to (a) times (b), in which (a) is the Target Number of performance shares and (b) is (i) the number of completed months between the first day of the Performance Period and the date of your death or termination due to disability divided by (ii) 36. If the proration formula results in any fractional shares, such fractional shares shall be rounded to the next lower whole Share. Any Shares to which you (or your estate or personal representative) become entitled pursuant to this paragraph shall be delivered to you (or your estate or personal representative) no later than sixty (60) days following the date of your termination of employment due to disability or death.

If you Retire prior to the Vesting Date, you will be entitled to receive a pro-rata portion of the performance shares based on the level at which performance goals are attained during the Performance Period. The prorated number of performance shares shall be equal to (a) times (b), in which (a) is the actual number of performance shares that would have otherwise vested, pursuant to Article I, if you had remained employed through the end of the Performance Period and (b) is (i) the number of completed months between the first day of the Performance Period and the date of your Retirement divided by (ii) 36. If the proration formula results in any fractional shares, such fractional shares shall be rounded to the next lower whole Share. Any Shares to which you become entitled pursuant to this paragraph shall be delivered to you no later than sixty (60) days following the Vesting Date. For purposes of this Agreement, “Retirement” or “Retire” means a termination of your employment with Invacare or a subsidiary after you have attained either (i) age fifty-five (55) with ten (10) years of service to Invacare or a subsidiary or (ii) age sixty-five (65) with five (5) years of service to Invacare or a subsidiary.

If, prior to the Vesting Date, the Compensation and Management Development Committee of the Board of Directors of Invacare (the “Committee”) finds that you intentionally committed an act materially inimical to the interests of Invacare or a subsidiary, you shall forfeit all of the performance shares as of the time you committed such act, as determined by the Committee.

III. TERMINATION OF AWARD UNDER

CERTAIN CIRCUMSTANCES. The Committee may cancel your award at any time prior to the Vesting Date, in which case you shall forfeit all of the performance shares as of the date of such cancellation, if you are not in compliance with all applicable provisions of this Agreement or the Plan or if you, without the prior written consent of the Committee, engage in any of the following activities: (i) you render services for an organization, or engage in a business, that is, in the judgment of the Committee, in competition with Invacare; or (ii) you disclose to anyone outside of Invacare, or use for any purpose other than Invacare's business, any confidential information or material relating to Invacare, whether acquired by you during or after employment with Invacare, in a fashion or with a result that is or may be injurious to the best interests of Invacare, as determined by the Committee.

The Committee may, in its discretion and as a condition to the continuance of this award, require you to represent in writing that you are in compliance with all applicable provisions of this Agreement and the Plan and have not engaged in any activities referred to in clauses (i) and (ii) above.

IV. DIVIDEND EQUIVALENTS.The performance shares shall not entitle you to receive any dividends that are paid with respect to Invacare’s common stock prior to the Vesting Date. Upon the vesting of the performance shares, if any, and the issuance of Shares to you, you shall become entitled to any dividends that are paid with respect to such Shares after the Vesting Date.

V. TRANSFERABILITY. This Agreement shall be binding upon and inure to the benefit of any successor of Invacare and your heirs, estate and personal representative. Your award shall not be transferable other than by will or the laws of descent and distribution.

VI. ADJUSTMENTS OR AMENDMENTS. Subject to Section 4.06 of the Plan, in the event that, subsequent to the date of this Agreement and prior to the Vesting Date, the outstanding common shares of Invacare are, as a result of a stock split, stock dividend, combination or exchange of shares, exchange of other securities, reclassification, reorganization, redesignation, merger, consolidation, recapitalization, liquidation, dissolution, sale of assets or other such change, including, without limitation, any transaction described in Section 424(a) of the Internal Revenue Code (the “Code”), increased, decreased, changed into or exchanged for a different number or kind of shares of stock or other securities of Invacare or another entity or converted into cash, then, except as otherwise provided below, there shall automatically be substituted for each Invacare common share subject to the award, the amount of cash or other securities or property into which each outstanding Invacare common share shall be converted or exchanged. Notwithstanding the preceding provisions of this Paragraph VI, the Committee may, in its sole

discretion, make other adjustments or amendments to the securities subject to the award and/or amend the provisions of the Plan and/or this Agreement, to the extent appropriate, equitable and in compliance with the Plan and provisions of Section 409A of the Code to the extent applicable and any such adjustment or amendment shall be final, binding and conclusive. Any such adjustment or amendment shall provide for the elimination of fractional shares.

VII. PROVISIONS OF PLAN CONTROL. This Agreement is subject to all of the terms, conditions and provisions of the Plan (all of which are incorporated herein by reference) and to such rules, regulations, and interpretations related to the Plan as may be adopted by the Committee and as may be in effect from time to time. In the event and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions, and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Committee has authority to interpret and construe any provision of this Agreement and its interpretation and construction shall be binding and conclusive.

VIII. LIABILITY. The liability of Invacare under this Agreement and any distribution of Shares made hereunder is limited to the obligations set forth herein with respect to such distribution and no term or provision of this Agreement shall be construed to impose any liability on Invacare, its officers, employees or any subsidiary with respect to any loss, cost or expense which you may incur in connection with or arising out of any transaction in connection with this Agreement.

IX. WITHHOLDING. You agree that, as a condition to your receipt of the Shares upon vesting of the performance shares hereunder, Invacare may make appropriate provision for tax withholding, if required, with respect to the transactions contemplated by this Agreement. Unless you make other arrangements that are satisfactory to the Committee to cover Invacare’s or its subsidiary’s withholding obligations, at any time that taxes are required to be withheld in connection with the performance shares, Invacare or its subsidiary shall withhold Shares from the Shares otherwise deliverable to you with a Fair Market Value (as defined in the Plan) equal to the amount required to satisfy the minimum tax withholding obligations applicable to you relating to this Agreement.

X. ADJUSTMENT AND CLAWBACK. You acknowledge that this award and any payment made hereunder is subject to Invacare’s Executive Compensation Adjustment and Recapture Policy. In addition, you acknowledge that the Plan will be administered in compliance with Section 10D of the Securities Exchange Act of 1934, as amended, any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which Invacare’s shares may be traded, and any policy of Invacare adopted pursuant to such law, rules, or regulations. This Agreement may be amended to further such purpose without your consent.

XII. SECTION 409A OF THE CODE. It is intended that this Agreement and the compensation and benefits hereunder meet the requirements for compliance with, or exemption from, Section 409A of the Code (“Section 409A”), and this Agreement shall be so interpreted and administered. In addition to the general amendment rights of Invacare with respect to the Plan, Invacare specifically retains the unilateral right (but not the obligation) to make, prospectively or retroactively, any amendment to this Agreement or any related document as it deems necessary or desirable to more fully address issues in connection with exemption from (or compliance with) Section 409A and other laws. In no event, however, shall this section or any other provisions of this Agreement be construed to require Invacare to provide any gross‑up for the tax consequences of any provisions of, or payments under, this Agreement. Except as may be provided in another agreement to which Invacare is bound, Invacare and its affiliates shall have no responsibility for tax or legal consequences to you (or your beneficiaries) resulting from the terms or operation of this Agreement or the Plan.

ACCEPTANCE

The undersigned hereby accepts the terms of the performance shares award granted herein and acknowledges receipt of a copy of the Invacare Corporation 2018 Equity Compensation Plan.

_________________________ ___________________

(Signature of Award Recipient)     (Date)

EXHIBIT A

INSERT FINANCIAL GOALS HERE

EX-10.5

Exhibit 10.5

AWARD AGREEMENT - NON-U.S. EMPLOYEES

(For Performance-Based Restricted Stock Units Award)

To:                            Number:

(Name of Award Recipient)

    Date of Grant:

There hereby is granted to you, as a key employee of Invacare Corporation (“Invacare”) or of a subsidiary, an award of XX,XXX Restricted Stock Units (the “Target Number”). This award is granted to you pursuant to the Invacare Corporation 2018 Equity Compensation Plan (the “Plan”) and is subject to

the terms and conditions set forth below and in the Plan. This award is granted for valuable future services to be rendered by you to Invacare or a subsidiary. Please acknowledge your acceptance of the terms of this award by signing below.

/s/ Anthony LaPlaca

Anthony LaPlaca

Sr. Vice President, General Counsel and Secretary

I. VESTING AND DELIVERY OF SHARES. The Performance Period (as defined in the Plan) for the Restricted Stock Units (“RSUs”) granted hereunder shall start on January 1, 20__ and end on December 31, 20__. Subject to your continuous employment with Invacare or a subsidiary (except as provided in the case of your Retirement (as defined in Article II), death or disability) through the final date of the Performance Period (the “Vesting Date”), you will be entitled to receive a number of shares of Invacare common stock (the “Shares”) equal to the number of RSUs that vest based on the levels of achievement of the performance goals set forth in Exhibit A, which may range from 0% to 150% of the Target Number. To the extent deliverable, the Shares will be delivered to you no later than sixty (60) days following the Vesting Date, subject to any applicable withholding.

II. TERM OF AWARD. Your award shall not be affected by any temporary leave of absence approved in writing by Invacare and described in Section 1.421-7(h) of the Federal Income Tax Regulations. If, prior to the Vesting Date, you cease to be an employee for any reason other than Retirement, death or disability, you will forfeit any and all rights you have to the RSUs.

If you die or become disabled prior to the Vesting Date and while you are an employee, you, or your estate or personal representative, shall become vested in a prorated number of RSUs. The prorated number of RSUs shall be equal to (a) times (b), in which (a) is the Target Number of RSUs and (b) is (i) the number of completed months between the first day of the Performance Period and the date of your death or termination due to disability divided by (ii) 36. If the proration formula results in any fractional shares, such fractional shares shall be rounded to the next lower whole Share. Any Shares to which you (or your estate or personal representative) become entitled pursuant to this paragraph shall be delivered to you (or your estate or personal representative) no later than sixty (60) days following the date of your termination of employment due to disability or death.

If you Retire prior to the Vesting Date, you will be entitled to receive a pro-rata portion of the RSUs based on the level at which performance goals are attained during the Performance Period. The prorated number of RSUs shall be equal to (a) times (b), in which (a) is the actual number of RSUs that would have otherwise vested, pursuant to Article I, if you had remained employed through the end of the Performance Period and (b) is (i) the number of completed months between the first day of the Performance Period and the date of your Retirement divided by (ii) 36. If the proration formula results in any fractional shares, such fractional shares shall be rounded to the next lower whole Share. Any Shares to which you become entitled pursuant to this paragraph shall be delivered to you no later than sixty (60) days following the Vesting Date. For purposes of this Agreement, “Retirement” or “Retire” means a termination of your employment with Invacare or a subsidiary after you have attained either (i) age fifty-five (55) with ten (10) years of service to Invacare or a subsidiary or (ii) age sixty-five (65) with five (5) years of service to Invacare or a subsidiary.

If, prior to the Vesting Date, the Compensation and Management Development Committee of the Board of Directors of Invacare (the “Committee”) finds that you intentionally committed an act materially

inimical to the interests of Invacare or a subsidiary, you shall forfeit all of the RSUs as of the time you committed such act, as determined by the Committee.

III. TERMINATION OF AWARD UNDER

CERTAIN CIRCUMSTANCES. The Committee may cancel your award at any time prior to the Vesting Date, in which case you shall forfeit all of the RSUs as of the date of such cancellation, if you are not in compliance with all applicable provisions of this Agreement or the Plan or if you, without the prior written consent of the Committee, engage in any of the following activities: (i) you render services for an organization, or engage in a business, that is, in the judgment of the Committee, in competition with Invacare; or (ii) you disclose to anyone outside of Invacare, or use for any purpose other than Invacare's business, any confidential information or material relating to Invacare, whether acquired by you during or after employment with Invacare, in a fashion or with a result that is or may be injurious to the best interests of Invacare, as determined by the Committee.

The Committee may, in its discretion and as a condition to the continuance of this award, require you to represent in writing that you are in compliance with all applicable provisions of this Agreement and the Plan and have not engaged in any activities referred to in clauses (i) and (ii) above.

IV. DIVIDENDS.The RSUs shall not entitle you to receive any dividends that are paid with respect to Invacare’s common stock prior to the Vesting Date. Upon the vesting of the RSUs, if any, and the issuance of Shares to you, you shall become entitled to any dividends that are paid with respect to such Shares after the Vesting Date.

V. TRANSFERABILITY. This Agreement shall be binding upon and inure to the benefit of any successor of Invacare and your heirs, estate and personal representative. Your award shall not be transferable other than by will or the laws of descent and distribution.

VI. ADJUSTMENTS OR AMENDMENTS. Subject to Section 4.06 of the Plan, in the event that, subsequent to the date of this Agreement and prior to the Vesting Date, the outstanding common shares of Invacare are, as a result of a stock split, stock dividend, combination or exchange of shares, exchange of other securities, reclassification, reorganization, redesignation, merger, consolidation, recapitalization, liquidation, dissolution, sale of assets or other such change, including, without limitation, any transaction described in Section 424(a) of the Internal Revenue Code (the “Code”), increased, decreased, changed into or exchanged for a different number or kind of shares of stock or other securities of Invacare or another entity or converted into cash, then, except as otherwise provided below, there shall automatically be substituted for each Invacare common share subject to the award, the amount of cash or other securities or property into which each outstanding Invacare common share shall be converted or exchanged. Notwithstanding the preceding provisions of this Paragraph VI, the Committee may, in its sole discretion, make other adjustments or amendments to the securities subject to the award and/or amend the provisions of the Plan and/or this Agreement, to the extent appropriate, equitable and in compliance with the Plan and provisions of Section 409A of the Code to the extent applicable and any such

adjustment or amendment shall be final, binding and conclusive. Any such adjustment or amendment shall provide for the elimination of fractional shares.

VII. PROVISIONS OF PLAN CONTROL. This Agreement is subject to all of the terms, conditions and provisions of the Plan (all of which are incorporated herein by reference) and to such rules, regulations, and interpretations related to the Plan as may be adopted by the Committee and as may be in effect from time to time. In the event and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions, and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Committee has authority to interpret and construe any provision of this Agreement and its interpretation and construction shall be binding and conclusive.

VIII. LIABILITY. The liability of Invacare under this Agreement and any distribution of Shares made hereunder is limited to the obligations set forth herein with respect to such distribution and no term or provision of this Agreement shall be construed to impose any liability on Invacare, its officers, employees or any subsidiary with respect to any loss, cost or expense which you may incur in connection with or arising out of any transaction in connection with this Agreement.

IX. WITHHOLDING. You agree that, as a condition to your receipt of the Shares upon vesting of the RSUs hereunder, Invacare may make appropriate provision for tax withholding, if required, with respect to the transactions contemplated by this Agreement. Unless you make other arrangements that are satisfactory to the Committee to cover Invacare’s or its subsidiary’s withholding obligations, at any time that taxes are required to be withheld in connection with the RSUs, Invacare or its subsidiary shall withhold Shares from the Shares otherwise deliverable to you with a Fair Market Value (as defined in the Plan) equal to the amount required to satisfy the minimum tax withholding obligations applicable to you relating to this Agreement.

X. ADJUSTMENT AND CLAWBACK. You acknowledge that this award and any payment made hereunder is subject to Invacare’s Executive Compensation Adjustment and Recapture Policy. In addition, you acknowledge that the Plan will be administered in compliance with Section 10D of the Securities Exchange Act of 1934, as amended, any applicable rules or regulations promulgated by the Securities and Exchange Commission or any national securities exchange or national securities association on which Invacare’s shares may be traded, and any policy of Invacare adopted pursuant to such law, rules, or regulations. This Agreement may be amended to further such purpose without your consent.

XI. SECTION 409A OF THE CODE. It is intended that this Agreement and the compensation and benefits hereunder meet the requirements for compliance with, or exemption from, Section 409A of the Code (“Section 409A”), and this Agreement shall be so interpreted and administered. In addition to the general amendment rights of Invacare with respect to the Plan, Invacare specifically retains the unilateral right (but not the obligation) to make, prospectively or retroactively, any amendment to this Agreement or any related document as it deems necessary or desirable to more fully address issues in connection with exemption from (or compliance with) Section 409A and other laws. In no event, however, shall this section or any other provisions of this Agreement be construed to require Invacare to provide any gross‑up for the tax consequences of any provisions of, or payments under, this Agreement. Except as may be provided in another agreement to which Invacare is bound, Invacare and its affiliates shall have no responsibility for tax or legal consequences to you (or your beneficiaries) resulting from the terms or operation of this Agreement or the Plan.

XII. DATA PRIVACY. You hereby acknowledge that the administration of this award is subject to Invacare’s Data Privacy Policy, as may be amended from time to time, and you consent to the terms of such policy.

XIII. EXHIBIT B. Notwithstanding any provisions in this Agreement, the grant of the RSUs shall be subject to any special terms and conditions set forth in Exhibit B to this Agreement for your country. Moreover, if you relocate to one of the countries included in Exhibit B, the special terms and conditions for such country will apply to you to the extent Invacare determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan. Exhibit B constitutes part of this Agreement.

ACCEPTANCE

The undersigned hereby accepts the terms of the Performance-Based Restricted Stock Units award granted herein and acknowledges receipt of a copy of the Invacare Corporation 2018 Equity Compensation Plan.

_________________________ ___________________

(Signature of Award Recipient)     (Date)

4848-6780-1958, v. 2

EXHIBIT A

Performance Goals for the 3 year performance measurement period and details about those goals are documented in this Exhibit.

EXHIBIT B

ADDITIONAL TERMS AND CONDITIONS OF INVACARE CORPORATION

PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD AGREEMENT

NON-U.S. EMPLOYEES

Terms and Conditions

This Exhibit B includes special terms and conditions applicable to you if you reside in one of the countries listed below. These terms and conditions are in addition to or, if so indicated, in place of, the terms and conditions set forth in the Agreement. Unless otherwise provided below, capitalized terms used but not defined herein shall have the same meanings assigned to them in the Plan and the Agreement.

Notifications

This Exhibit B also includes country-specific information of which you should be aware with respect to your participation in the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries as of March 2014. Such laws are often complex and change frequently. As a result, Invacare strongly recommends that you do not rely on the information noted herein as the only source of information relating to the consequences of your participation in the Plan because the information may be out of date at the time that you vest in the RSUs or sell Shares acquired under the Plan.

In addition, the information is general in nature and may not apply to your particular situation, and Invacare and its affiliates are not in a position to assure you of any particular result. Accordingly, you are advised to seek appropriate professional advice as to how the relevant laws in your country may apply to your situation. Finally, please note that if you are a citizen or resident of a country other than the country in which you are currently working, or transfer employment after grant, the information contained in this Exhibit B may not be applicable to you.

Switzerland

Securities Law Notification. The RSUs offered hereunder are considered a private offering in Switzerland and are, therefore, not subject to registration in Switzerland.

EX-10.6

Exhibit 10.6

PERSONAL AND CONFIDENTIAL

May 9, 2018

Ms. Darcie Karol

Dear Darcie:

I am pleased to confirm our offer for the position of Senior Vice President, Human Resources with Invacare Corporation, reporting directly to me and overseeing the company’s global human resources function.

The following represents the terms and conditions of your employment:

COMPENSATION

Salary –Your starting base salary for this position will be $295,000.00 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.

Annual Bonus –You are eligible to participate in the Key Management Incentive Plan at the 50% level. Evaluation of your performance will be made on a pro-rata basis, determined by your length of service in 2018. Payment of any 2018 bonus earned under this plan will be made in 2019.

Restricted Stock –Upon acceptance of our offer and commencement of employment, you will be eligible to receive a restricted stock grant in the amount of 5,000 restricted shares.  The restricted stock will vest 100% after three years.  Restricted Shares are granted, subject to approval of the Compensation and Management Development Committee (the “Compensation Committee”), on your start date.  Once granted, you will receive an Award Agreement 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 pursuant to the Equity Compensation Plan.

Severance Benefit –In the event that your employment is terminated by Invacare for any reason other than for cause, you will be entitled to receive a severance benefit in the amount equal to twelve months of your base salary in effect at the time of termination. For purposes of this paragraph, termination by Invacare for cause shall mean termination by Invacare due to your (a) fraud, (b) embezzlement of company assets, (c) intentional violation of law, (d) violation of company policy, (e) substantial failure to perform the duties and responsibilities of your position, (f) conduct which adversely affects Invacare’s business reputation or which is otherwise contrary to the best interests of Invacare or (g) a breach of the terms of this letter or the Technical Information and Non-

INVACARE CORPORATION

One Invacare Way, P. O. Box 4028, Elyria, Ohio 44036-2125 USA

440-329-6000 www.invacare.com

Competition Agreement and conflict of interest documents referred to below. Termination by Invacare for any of the reasons set forth in (a)-(g) of the preceding sentence shall be termination for cause. Your entitlement to severance benefits described in this paragraph are conditioned upon your signing a separation and release agreement in a form reasonably acceptable to Invacare.

Change of Control – As an executive officer, you will be given a Change of Control Agreement which includes provisions for a lump sum amount, as more fully described in the Change in Control Agreement.

BENEFITS

Health Benefits –You will be eligible to participate in Invacare’s comprehensive benefits program whichincludes medical, prescription, dental, vision coverage, life insurance, short- and long-term disability. This program will be available to you on the first day of the month following employment and is described in the attached Benefits Overview.

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 Contributions 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 of next year. This plan allows you to maximize salary deferrals and employer contributions on compensation that exceeds annual limits.

Vacation – You are eligible for four weeks of vacation.

EXECUTIVE BENEFITS

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 company’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.

To facilitate your understanding of the Cleveland area, we will engage you with Executive Arrangements to introduce you to the various communities in Northeast Ohio.

Darcie, we are excited about having you join the Invacare team and would appreciate a response no later than Friday, May 11. Upon signing this offer letter, your tentative start date will be June 4, 2018, although we would like to have you join us as soon as practical. In the interim, please contact Kevin DeLury at (440) 329-6706 or me if you have questions.

Sincerely,

/s/Matthew E. Monaghan

Matthew E. Monaghan

Chairman, President and CEO

MEM:dlw

Attachments: 5

To acknowledge acceptance of this offer, please sign below and return a copy of this letter to me.

/s/ Darcie Karol                        5/9/2018

_________________________________            ________________________

Signature                            Date

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Matthew E. Monaghan, certify that:

1. I have reviewed this quarterly report on Form 10-Q 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. I am 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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. I have disclosed, based on my 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.

		/s/ MATTHEW E. MONAGHAN
Date:	August 7, 2018	Matthew E. Monaghan President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Kathleen P. Leneghan, certify that:

1. I have reviewed this quarterly report on Form 10-Q 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. I am 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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. I have disclosed, based on my 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.

		/s/ KATHLEEN P. LENEGHAN
Date:	August 7, 2018	Kathleen P. Leneghan 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 Quarterly Report of Invacare Corporation (the “company”) on Form 10-Q for the period ending June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew E. Monaghan, President and 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:	August 7, 2018	Matthew E. Monaghan President and 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 Quarterly Report of Invacare Corporation (the “company”) on Form 10-Q for the period ending June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kathleen P. Leneghan, 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/ KATHLEEN P. LENEGHAN
Date:	August 7, 2018	Kathleen P. Leneghan Chief Financial Officer (Principal 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

DEI Document - shares	6 Months Ended
	Jun. 30, 2018	Aug. 03, 2018
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-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Shares [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		33,229,658
Class B Common Shares [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		6,357

XML

Condensed Consolidated Statement of Comprehensive Income (Loss) - USD ($) shares in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net Sales		$ 246,152,000	$ 233,517,000	$ 483,212,000	$ 465,240,000
Cost of products sold		178,806,000	168,495,000	349,349,000	335,073,000
Gross Profit		67,346,000	65,022,000	133,863,000	130,167,000
Selling, general and administrative expenses		73,763,000	75,721,000	145,027,000	148,234,000
Charges related to restructuring activities		344,000	4,987,000	745,000	8,270,000
Operating Income (Loss)		(6,761,000)	(15,686,000)	(11,909,000)	(26,337,000)
Loss (gain) on Convertible Debt Derivatives		(21,000)	1,051,000	(124,000)	150,000
Interest expense		6,964,000	4,645,000	13,926,000	9,163,000
Interest income		(136,000)	(49,000)	(385,000)	(137,000)
Loss Before Income Taxes		(13,568,000)	(21,333,000)	(25,326,000)	(35,513,000)
Income tax provision		2,975,000	2,175,000	5,325,000	4,775,000
Net Loss		$ (16,543,000)	$ (23,508,000)	$ (30,651,000)	$ (40,288,000)
Dividends Declared per Common Share		$ 0.0125	$ 0.0125	$ 0.0250	$ 0.0250
Net Earnings (Loss) per Share—Basic
Net Loss per Share—Basic		$ (0.50)	$ (0.72)	$ (0.93)	$ (1.23)
Weighted Average Shares Outstanding—Basic		33,169	32,833	33,040	32,654
Net Earnings (Loss) per Share—Assuming Dilution
Net Loss per Share—Assuming Dilution	[1]	$ (0.50)	$ (0.72)	$ (0.93)	$ (1.23)
Weighted Average Shares Outstanding—Assuming Dilution		33,996	33,193	33,867	32,947
Other comprehensive income (loss):
Foreign currency translation adjustments		$ (23,438,000)	$ 26,311,000	$ (11,622,000)	$ 27,260,000
Defined Benefit Plans:
Amortization of prior service costs and unrecognized gains (loss)		290,000	(426,000)	243,000	(721,000)
Deferred tax adjustment resulting from defined benefit plan activity		33,000	15,000	(49,000)	12,000
Valuation reserve (reversal) associated with defined benefit plan activity		(33,000)	(15,000)	49,000	(12,000)
Current period unrealized gain (loss) on cash flow hedges		1,966,000	(1,907,000)	1,719,000	(1,276,000)
Deferred tax benefit (loss) related to unrealized gain (loss) on cash flow hedges		(261,000)	271,000	(151,000)	105,000
Other Comprehensive Income (Loss)		(21,443,000)	24,249,000	(9,811,000)	25,368,000
Comprehensive Income (Loss)		$ (37,986,000)	$ 741,000	$ (40,462,000)	$ (14,920,000)
Net Sales, as a Percent of Net Sales		100.00%	100.00%	100.00%	100.00%
Cost of Products Sold, as a Percent of Net Sales		72.60%	72.20%	72.30%	72.00%
Gross Profit, as a Percent of Net Sales		27.40%	27.80%	27.70%	28.00%
Selling, general and administrative expenses, as a Percent of Net Sales		30.00%	32.40%	30.00%	31.90%
Charges related to restructuring activities, as a Percent of Net Sales		0.10%	2.10%	0.20%	1.80%
Operating Gain (Loss), as a Percent of Net Sales		(2.70%)	(6.70%)	(2.50%)	(5.70%)
Net loss (gain) on convertible debt derivatives, as a Percent of Net Sales		0.00%	0.50%	0.00%	0.00%
Interest expense, as a Percent of Net Sales		2.80%	2.00%	2.90%	2.00%
Interest income, as a Percent of Net Sales		(0.10%)	0.00%	(0.10%)	0.00%
Gain (loss) Before Income Taxes, as a Percent of Net Sales		(5.50%)	(9.10%)	(5.20%)	(7.60%)
Income Tax Provision, as a Percent of Net Sales		1.20%	0.90%	1.10%	1.00%
Net Gain (Loss), as a percent of Net Sales		(6.70%)	(10.10%)	(6.30%)	(8.70%)

[1] Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss.

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 122,398	$ 176,528
Trade receivables, net	124,099	125,615
Installment receivables, net	1,266	1,334
Inventories, net	136,606	121,933
Other current assets	32,841	31,504
Total Current Assets	417,210	456,914
Other Assets	113,139	97,576
Intangibles	28,820	30,244
Property and Equipment, net	76,690	80,016
Goodwill	394,051	401,283
Total Assets	1,029,910	1,066,033
Current Liabilities
Accrued expenses	92,678	90,566
Accrued expenses	101,492	118,697
Current taxes payable	2,914	6,761
Short-term debt and current maturities of long-term obligations	1,676	2,040
Total Current Liabilities	198,760	218,064
Long-Term Debt	247,326	241,405
Other Long-Term Obligations	198,644	183,270
Shareholders’ Equity
Preferred Shares (Authorized 300 shares; none outstanding)	0	0
Additional paid-in-capital	295,572	290,125
Retained earnings	156,540	187,999
Accumulated other comprehensive income	27,059	36,870
Treasury shares (3,837 and 3,701 shares at June 30, 2018 and December 31, 2017, respectively)	(103,410)	(101,006)
Total Shareholders’ Equity	385,180	423,294
Total Liabilities and Shareholders’ Equity	1,029,910	1,066,033
Common Shares [Member]
Shareholders’ Equity
Common Shares	9,417	9,304
Class B Common Shares [Member]
Shareholders’ Equity
Common Shares	$ 2	$ 2

XML

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands	Jun. 30, 2018	Dec. 31, 2017
Common Stock, Par or Stated Value Per Share	$ 0.25
Preferred Stock, Shares Authorized	300	300
Preferred Stock, Shares Outstanding	0	0
Treasury Stock, Shares	3,837	3,701
Common Shares [Member]
Common Stock, Shares Authorized	100,000	100,000
Common Stock, Shares, Issued	37,066	36,532
Common Stock, Par or Stated Value Per Share	$ 0	$ 0
Class B Common Shares [Member]
Common Stock, Shares Authorized	12,000	12,000
Common Stock, Shares, Issued	6	6
Common Stock, Par or Stated Value Per Share	$ 0	$ 0

XML

Condensed Consolidated Statement Of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating Activities
Net loss	$ (30,651,000)	$ (40,288,000)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	7,700,000	7,312,000
Provision for losses on trade and installment receivables	716,000	500,000
Benefit for deferred income taxes	(128,000)	(759,000)
Provision for other deferred liabilities	(7,000)	400,000
Provision for equity compensation	2,943,000	4,646,000
Loss (gain) on disposals of property and equipment	21,000	(91,000)
Amortization of convertible debt discount	5,650,000	3,451,000
Amortization of debt fees	1,246,000	985,000
(Gain) Loss on convertible debt derivatives	124,000	(150,000)
Changes in operating assets and liabilities:
Trade receivables	(1,659,000)	(5,396,000)
Installment sales contracts, net	294,000	(186,000)
Inventories	(17,079,000)	(13,095,000)
Other current assets	(1,076,000)	1,262,000
Accounts payable	3,231,000	(2,376,000)
Accrued expenses	(18,289,000)	(5,851,000)
Other long-term liabilities	114,000	(1,132,000)
Net Cash Used by Operating Activities	(47,098,000)	(50,468,000)
Investing Activities
Purchases of property and equipment	(4,227,000)	(5,504,000)
Proceeds from sale of property and equipment	37,000	190,000
Change in other long-term assets	(298,000)	(218,000)
Other	11,000	(87,000)
Net Cash Used by Investing Activities	(4,477,000)	(5,619,000)
Financing Activities
Proceeds from revolving lines of credit and long-term borrowings	0	95,220,000
Payments on revolving lines of credit and long-term borrowings	(602,000)	(14,881,000)
Proceeds from exercise of stock options	2,618,000	1,429,000
Payment of financing costs	0	4,144,000
Payment of dividends	(808,000)	(793,000)
Issuance of warrants	0	14,100,000
Purchase of treasury stock	(2,404,000)	(1,221,000)
Net Cash (Used) Provided by Financing Activities	(1,196,000)	89,710,000
Effect of exchange rate changes on cash	(1,359,000)	2,225,000
Increase (decrease) in cash and cash equivalents	(54,130,000)	35,848,000
Cash and cash equivalents at beginning of year	176,528,000	124,234,000
Cash and cash equivalents at end of period	$ 122,398,000	$ 160,082,000

XML

Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Accounting Policies

Accounting Policies

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 June 30, 2018 and the results of its operations and changes in its cash flow for the six months ended June 30, 2018 and 2017, respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using a May 31 quarter end 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. The results of operations for the three and six months endedJune 30, 2018 are not necessarily indicative of the results to be expected for the full year.

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 control of the product or service transfers 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 when legal remedies are exhausted.

Reserves for customer bonus and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly.

Recent Accounting Pronouncements (Already Adopted):

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which replaces numerous requirements in U.S. GAAP and provides companies with a single revenue recognition model for recognizing 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 previous 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.

Effective January 1, 2018, the company adopted the new accounting standard, and all the related amendments, on a modified retrospective basis, with no cumulative effect adjustment to equity needed. Upon adoption, the standard did not have a material impact on the company's results of operations or cash flows nor does the company expect it to have a material impact on future periods. Pursuant to ASU 2014-09, revenues are recognized as control transfers to the customers, which is consistent with the prior revenue recognition model and the prior accounting for the vast majority of the company's contracts. While the company does have a minor amount of service business for which revenue is recognized over time as compared to a point in time, the company’s process to estimate the amount of revenue to be recognized did not change as a result of the implementation of the new standard.

Recent Accounting Pronouncements (Not Yet Adopted):

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 continues to assess the impact of the adoption of ASU 2016-02 on the company's financial statements. While the company has not finalized its assessment of the impact of ASU 2016-02, the company does expect the standard to have a significant impact on the company's consolidated balance sheets as the company will be required to record assets and liabilities related to its operating leases. The standard is not expected to have a material impact on the Company's results of operations or cash flows.

In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Statements." ASU 2016-13 requires a new credit loss standard for most financial assets and certain other instruments. For example, entities will be required to use an "expected loss" model that will generally require earlier recognition of allowances for losses for trade receivables. The standard also requires additional disclosures, including disclosures regarding how an entity tracks credit quality. The amendments in the pronouncement are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities may early adopt the amendments as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The company is currently reviewing the impact of the adoption of ASU 2016-13 on the company's financial statements.

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The company is currently reviewing the impact of the adoption of ASU 2017-04 but does not expect the adoption to impact the company's financial statements.

XML

Operations Held For Sale

6 Months Ended

Jun. 30, 2018

Operations Held For Sale [Abstract]

Discontinued Operations Held For Sale Disclosure

Operations Held for Sale

Prior to 2018, the company had recorded expenses related to the sale of all operations held for sale totaling $2,892,000, of which $2,366,000 has been paid out as of June 30, 2018.

XML

Discontinued Operations

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

From 2012 through 2014, the company sold three businesses which were classified as discontinued operations. Prior to 2018, the company had recorded cumulative expenses related to the sale of discontinued operations totaling $8,801,000, of which $8,405,000 have been paid as of June 30, 2018.

XML

Receivables

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Receivables

Receivables

Receivables consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Accounts receivable, gross	$	143,696		$	154,966
Customer rebate reserve	(10,527		)	(18,747		)
Allowance for doubtful accounts	(4,841		)	(5,113		)
Cash discount reserves	(3,173		)	(4,252		)
Other, principally returns and allowances reserves	(1,056		)	(1,239		)
Accounts receivable, net	$	124,099		$	125,615

Reserves for customer bonus and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly. The decrease in customer rebates reserve from December 31, 2017 to June 30, 2018 was the result of rebate payments, the majority of which are paid in the first quarter of each year.

Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. Substantially all 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 are 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 establishes reserves for specific customers as needed. The company writes 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 three 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 financial statements 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 consist of the following (in thousands):

	June 30, 2018									December 31, 2017
	Current			Long- Term			Total			Current			Long- Term			Total
Installment receivables	$	2,369		$	1,525		$	3,894		$	2,415		$	2,076		$	4,491
Less: Unearned interest	(32		)	—			(32		)	(38		)	—			(38		)
	2,337			1,525			3,862			2,377			2,076			4,453
Allowance for doubtful accounts	(1,071		)	(1,214		)	(2,285		)	(1,043		)	(1,601		)	(2,644		)
Installment receivables, net	$	1,266		$	311		$	1,577		$	1,334		$	475		$	1,809

Installment receivables purchased from DLL during the six months ended June 30, 2018 increased the gross installment receivables balance by $47,000. No sales of installment receivables were made by the company during the quarter.

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

	Six Months Ended June 30, 2018			Year Ended December 31, 2017
Balance as of beginning of period	$	2,644		$	2,838
Current period provision (benefit)	(102		)	1,001
Direct write-offs charged against the allowance	(257		)	(1,195		)
Balance as of end of period	$	2,285		$	2,644

Installment receivables by class as of June 30, 2018 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	$	3,005	$	3,005	$	2,285	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	889		857		—		68
Impaired installment receivables with a related allowance recorded	—		—		—		—
Total Canadian installment receivables	889		857		—		68
Total
Non-Impaired installment receivables with no related allowance recorded	889		857		—		68
Impaired installment receivables with a related allowance recorded	3,005		3,005		2,285		—
Total installment receivables	$	3,894	$	3,862	$	2,285	$	68

Installment receivables by class as of December 31, 2017 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	$	3,566	$	3,566	$	2,642	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	923		885		—		74
Impaired installment receivables with a related allowance recorded	2		2		2		—
Total Canadian installment receivables	925		887		2		74
Total
Non-Impaired installment receivables with no related allowance recorded	923		885		—		74
Impaired installment receivables with a related allowance recorded	3,568		3,568		2,644		—
Total installment receivables	$	4,491	$	4,453	$	2,644	$	74

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 June 30, 2018, 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 Canadian installment receivables which were past due of 90 days or more as of December 31, 2017 for which the company was still accruing interest.

The aging of the company’s installment receivables was as follows (in thousands):

	June 30, 2018						December 31, 2017
	Total		U.S.		Canada		Total		U.S.		Canada
Current	$	889	$	—	$	889	$	916	$	—	$	916
0-30 Days Past Due	—		—		—		6		—		6
31-60 Days Past Due	—		—		—		—		—		—
61-90 Days Past Due	—		—		—		—		—		—
90+ Days Past Due	3,005		3,005		—		3,569		3,566		3
	$	3,894	$	3,005	$	889	$	4,491	$	3,566	$	925

XML

Inventories

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Finished goods	$	60,481	$	52,773
Raw materials	65,250		59,497
Work in process	10,875		9,663
Inventories, net	$	136,606	$	121,933

XML

Other Current Assets

6 Months Ended

Jun. 30, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

Other Current Assets

Other current assets consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Value added tax receivables	$	15,914	$	16,174
Service contracts	3,021		2,812
Derivatives (foreign currency forward exchange contracts)	2,136		730
Prepaid insurance	1,155		2,647
Prepaid inventory	614		711
Recoverable income taxes	513		341
Prepaid debt fees	394		397
Prepaid and other current assets	9,094		7,692
Other Current Assets	$	32,841	$	31,504

XML

Other Long-Term Assets

6 Months Ended

Jun. 30, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Long-Term Assets

Other Long-Term Assets

Other long-term assets consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Convertible 2022 note hedge asset	$	54,490	$	46,680
Convertible 2021 note hedge asset	54,858		46,915
Cash surrender value of life insurance policies	1,956		1,991
Deferred financing fees	595		787
Long-term installment receivables	311		475
Long-term deferred taxes	403		518
Investments	90		103
Other	436		107
Other Long-Term Assets	$	113,139	$	97,576

XML

Property And Equipment

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property And Equipment

Property and Equipment

Property and equipment consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Machinery and equipment	$	301,334		$	307,244
Land, buildings and improvements	77,760			78,522
Leasehold improvements	8,955			9,947
Furniture and fixtures	9,974			10,264
Property and Equipment, gross	398,023			405,977
Less allowance for depreciation	(321,333		)	(325,961		)
Property and Equipment, net	$	76,690		$	80,016

XML

Goodwill

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The change in goodwill from December 31, 2017 to June 30, 2018 was due to foreign currency translation.

XML

Intangibles

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Other Intangibles

Intangibles

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

	June 30, 2018				December 31, 2017
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Customer lists	$	53,481	$	51,677	$	54,516	$	51,957
Trademarks	25,822		—		26,372		—
Developed technology	7,808		6,635		7,925		6,636
Patents	5,529		5,524		5,566		5,559
License agreements	1,133		1,133		1,187		1,187
Other	1,162		1,146		1,162		1,145
Intangibles	$	94,935	$	66,115	$	96,728	$	66,484

All the company’s intangible assets have been assigned definite lives and continue to be amortized over their useful lives, except for trademarks shown above, which have indefinite lives. The changes in intangible balances reflected on the balance sheet from December 31, 2017 to June 30, 2018 were the result of foreign currency translation and amortization.

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.

Amortization expense related to intangibles was $837,000 in the first six months of 2018 and is estimated to be $1,672,000 in 2018, $1,264,000 in 2019, $194,000 in 2020, $194,000 in 2021, $194,000 in 2022 and $194,000 in 2023. Amortized intangibles are being amortized on a straight-line basis over remaining lives of 1 to 10 years with most of the intangibles being amortized over an average remaining life of approximately 3 years.

XML

Accrued Expenses

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of accruals for the following (in thousands):

	June 30, 2018		December 31, 2017
Salaries and wages	$	28,912	$	33,390
Taxes other than income taxes, primarily Value Added Taxes	21,137		22,627
Warranty	18,891		22,468
Professional	5,336		5,203
Freight	3,970		4,002
Interest	3,915		3,919
Deferred revenue	3,092		2,770
Product liability, current portion	3,045		2,905
Derivative liabilities (foreign currency forward exchange contracts)	1,302		2,120
Severance	1,235		3,704
Rebates	1,203		5,831
Rent	707		808
Insurance	660		645
Supplemental Executive Retirement Program liability	391		391
Other items, principally trade accruals	7,696		7,914
Accrued Expenses	$	101,492	$	118,697

Depending on the terms of the contract, the company may defer the recognition of a portion of the revenue at the end of a reporting period to align with the transfer of control of the company’s products to the customer. In addition, to the extent performance obligations are satisfied over time, the company defers revenue recognition until the performance obligations are satisfied.

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. Rebates are netted against gross accounts receivables unless in excess of such receivables and then classified as accrued expenses. The reduction in accrued rebates from December 31, 2017 to June 30, 2018 primarily relates to payments principally made in the first quarter each year.

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. In addition, the company has sold extended warranties that, while immaterial, require the

company to defer the revenue associated with those warranties until earned. The company has established procedures to appropriate defer such revenue.

The company continuously assesses the adequacy of its product warranty accruals 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 require additional warranty reserve provision.

The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands):

Balance as of January 1, 2018	$	22,468
Warranties provided during the period	3,663
Settlements made during the period	(7,503		)
Changes in liability for pre-existing warranties during the period, including expirations	263
Balance as of June 30, 2018	$	18,891

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

XML

Long-Term Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt and Capital Leases Disclosures

Debt consists of the following (in thousands):

	June 30, 2018			December 31, 2017
Convertible senior notes at 5.00%, due in February 2021	$	126,217		$	122,355
Convertible senior notes at 4.50%, due in June 2022	92,509			89,675
Other notes and lease obligations	30,276			31,415
	249,002			243,445
Less current maturities of long-term debt	(1,676		)	(2,040		)
Long-Term Debt	$	247,326		$	241,405

The company had outstanding letters of credit of $3,126,000 and $2,945,000 as of June 30, 2018 and December 31, 2017, respectively. There were no borrowings denominated in foreign currencies, excluding a portion of the company's capital leases, as of June 30, 2018 and December 31, 2017. The weighted average interest rate on all borrowings, excluding capital leases, was 4.78% for the six months ended June 30, 2018 compared to 4.84% for the year ended December 31, 2017.

On September 30, 2015, the company entered into an Amended and Restated Revolving Credit and Security Agreement, which was subsequently amended (the “Credit Agreement”) and which matures on January 16, 2021. The 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 Credit Agreement.

In connection with entering into the company's Credit Agreement, the company incurred fees which were capitalized and are being amortized as interest expense. As of June 30, 2018, debt fees yet to be amortized through January 2021 totaled $989,000.

U.S. and Canadian Borrowers Credit Facility

For the company's U.S. and Canadian Borrowers, the Credit Agreement provides for an asset-based-lending senior secured revolving credit facility which is secured by substantially all the company’s U.S. and Canadian assets, other than real estate. The 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. 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) $1,023,000 as of June 30, 2018 (subject to reduction as provided in the 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 $5,000,000 minimum availability reserve, less (i) other reserves required by the Administrative Agent, and in each case subject to the definitions and limitations in the Credit Agreement. As of June 30, 2018, the company was in compliance with all covenant requirements and had borrowing capacity on the U.S. and Canadian Credit Facility under the Credit Agreement of $23,835,000, considering the minimum availability reserve, then-outstanding letters of credit, other reserves and the $11,250,000 dominion trigger amount described below. Borrowings under the U.S. and Canadian Credit Facility are secured by substantially all of the company’s U.S. and Canadian assets, other than real estate.

Interest will accrue on outstanding indebtedness under the 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.

The Credit Agreement contains customary representations, warranties and covenants. Exceptions to the operating covenants in the 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 Credit Agreement, as amended. The 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) $5,000,000 on any business day. The company also is subject to dominion triggers under the U.S. and Canadian Credit Facility 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 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. There were no borrowings outstanding under the U.S. and Canadian Credit Facility at June 30, 2018.

European Credit Facility

The Credit Agreement also provides for a revolving credit, letter of credit and swing line loan facility which gives the company and 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 2021, together with the U.S. and Canadian Credit Facility.

The aggregate borrowing availability for each European Borrower under the European Credit Facility is determined based on a borrowing base formula. 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 Credit Agreement. As of June 30, 2018, the aggregate borrowing availability to the European Borrowers under the European Credit Facility was approximately $14,822,000, considering the $3,000,000 minimum availability reserve and the $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 the 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%, as selected by the company. The margin that will be adjusted quarterly based on utilization. Borrowings under the European Credit Facility are subject to commitment fees of 0.25% or 0.375% per year, depending on utilization.

The European Credit Facility is secured by substantially all the personal property assets of the UK Borrower and its in-country subsidiaries, and all 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 U.S. and Canadian 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 U.S. and Canadian Credit Facility. Exceptions to the operating covenants in the 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 Credit Agreement. The 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 U.S. and Canadian 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. There were no borrowings outstanding under the European Credit Facility at June 30, 2018.

Convertible senior subordinated debentures due 2027

In 2007, the company issued $135,000,000 principal amount of 4.125% Convertible Senior Subordinated Debentures due 2027 (the "debentures"), of which $0 principal amount remains outstanding as of June 30, 2018. The holders of the debentures exercised their right to require the company to repurchase all the debentures on February 1, 2017 at a price equal to 100% of the principal amount, which totaled $13,350,000. As a result of the repurchase, the company wrote-off unamortized debt fees of $207,000 and recognized amortization expense of $311,000 in the first quarter of 2017.

Convertible senior notes due 2021

In the first quarter of 2016, the company issued $150,000,000 aggregate principal amount of 5.00% Convertible Senior Notes due 2021 (the “2021 notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2021 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 2021 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 2021 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 2021 notes will be convertible, subject to certain conditions, into only cash. If the company obtains such shareholder approval, the 2021 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 2021 notes may convert their 2021 notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2020 only under the following circumstances: (1) during any fiscal quarter commencing after March 31, 2016 (and only during such fiscal quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2021 notes on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per one thousand U.S. dollar principal amount of 2021 notes for each trading day of such measurement period was less than 98% of the product of the last reported sale price of the company’s Common Shares and the applicable conversion rate for the 2021 notes on each such trading day; or (3) upon the occurrence of specified corporate events described in the Indenture.

Holders of the 2021 notes will have the right to require the company to repurchase all or some of their 2021 notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The initial conversion rate is 60.0492 common shares per $1,000 principal amount of 2021 notes (equivalent to an initial conversion price of approximately $16.65 per common share). The company evaluated the terms of the conversion features under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the features did require separate accounting as a derivative. This derivative was capitalized on the balance sheet as a long-term liability and will be adjusted to reflect fair value each quarter. The fair value of the convertible debt conversion liability at issuance was $34,480,000. The fair value of the convertible debt conversion liability at June 30, 2018 was $61,136,000 compared to $53,154,000 as of December 31, 2017. The company recognized losses of $5,609,000 and $7,982,000for the three and six months endedJune 30, 2018, respectively, compared to losses of $8,250,000 and $1,519,000for the three and six months endedJune 30, 2017, respectively, related to the convertible debt conversion liability.

In connection with the offering of the 2021 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 2021 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 2021 notes. The company evaluated the note hedges under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the note hedges should be accounted for as derivatives. These derivatives were capitalized on the balance sheet as long-term assets and will be adjusted to reflect fair value each quarter. The fair value of the convertible note hedge assets at issuance was $27,975,000. The fair value of the convertible note hedge assets at June 30, 2018 was $54,858,000 compared to $46,915,000 as of December 31, 2017. The company recognized gains of $5,896,000 and $7,943,000for the three and six months endedJune 30, 2018, respectively, compared gains of $7,789,000 and $1,959,000for the three and six months endedJune 30, 2017, respectively, related to the convertible note hedge asset.

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 sold 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 initial strike price of the warrants is $22.4175 per share and is subject to certain adjustments under the terms of the warrant transactions. The company evaluated the warrants under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the warrants meet the definition of a derivative, are indexed to the company's own stock and should be classified in shareholder's equity. The amount paid for the warrants and capitalized in shareholder's equity was $12,376,000.

The net proceeds from the offering of the 2021 notes were approximately $144,034,000, after deducting fees and offering expenses of $5,966,000, which were paid in 2016. These debt issuance costs were capitalized and are being amortized as interest expense through February 2021. In accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, these debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. Approximately $5,000,000 of the net proceeds from the offering were used to repurchase the company’s common shares from purchasers of 2021 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 warrant transactions), which net cost was $15,600,000.

The liability components of the 2021 notes consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Principal amount of liability component	$	150,000		$	150,000
Unamortized discount	(20,637		)	(23,900		)
Debt fees	(3,146		)	(3,745		)
Net carrying amount of liability component	$	126,217		$	122,355

The unamortized discount of $20,637,000 is to be amortized through February 2021. The effective interest rate on the liability component was 11.1%. Non-cash interest expense of $1,661,000 and $3,263,000 was recognized for the three and six months endedJune 30, 2018, respectively, compared to $1,490,000 and $2,928,000for the three and six months endedJune 30, 2017, respectively. Actual interest expense accrued was $1,875,000 and $3,750,000for the three and six months endedJune 30, 2018, respectively, compared to $1,875,000 and $3,750,000for the three and six months endedJune 30, 2017, respectively, based on the stated coupon rate of 5.0%. The 2021 notes were not convertible as of June 30, 2018 nor was the applicable conversion threshold met.

Convertible senior notes due 2022

In the second quarter of 2017, the company issued $120,000,000 aggregate principal amount of 4.50% Convertible Senior Notes due 2022 (the “2022 notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2022 notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2017. The 2022 notes will mature on June 1, 2022, unless repurchased or converted in accordance with their terms prior to such date. Prior to December 1, 2021, the 2022 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 of the issuance of the company's common shares upon conversion of the 2022 notes under applicable New York Stock Exchange rules, the 2022 notes will be convertible, subject to certain conditions, into only cash. If the company obtains such shareholder approval, the 2022 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 2022 notes may convert their 2022 notes at their option at any time prior to the close of business on the business day immediately preceding December 1, 2021 only under the following circumstances: (1) during any fiscal quarter commencing after September 30, 2017 (and only during such fiscal quarter), if the last reported sale price of the company’s Common Shares for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2022 notes on each applicable trading day; (2) during the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per one thousand U.S. dollar principal amount of 2022 notes for each trading day of such measurement period was less than 98% of the product of the last reported sale price of the company’s Common Shares and the applicable conversion rate for the 2022 notes on each such trading day; or (3) upon the occurrence of specified corporate events described in the Indenture.

Holders of the 2022 notes will have the right to require the company to repurchase all or some of their 2022 notes at 100% of their principal, plus any accrued and unpaid interest, upon the occurrence of certain fundamental changes. The initial conversion rate is 61.6095 common shares per $1,000 principal amount of 2022 notes (equivalent to an initial conversion price of approximately $16.23 per common share). The company evaluated the terms of the conversion features under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the features did require separate accounting as a derivative. This derivative was capitalized on the balance sheet as a long-term liability and will be adjusted to reflect fair value each quarter. The fair value of the convertible debt conversion liability at issuance was $28,859,000. The fair value of the convertible debt conversion liability at June 30, 2018 was $61,061,000 compared to $53,414,000 at December 31, 2017. The company recognized losses of $5,837,000 and $7,647,000for the three and six months endedJune 30, 2018, respectively, compared to a loss of $4,392,000 for both the three and six months ended June 30, 2017, respectively, related to the convertible debt conversion liability.

In connection with the offering of the 2022 notes, the company entered into privately negotiated convertible note hedge transactions with one financial institution (the “option counterparty”). These transactions cover, subject to customary anti-dilution adjustments, the number of the company’s common shares that will initially underlie the 2022 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 2022 notes. The company evaluated the note hedges under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the note hedges should be accounted for as derivatives. These derivatives were capitalized on the balance sheet as long-term assets and will be adjusted to reflect fair value each quarter. The fair value of the convertible note hedge assets at issuance was $24,780,000. The fair value of the convertible note hedge assets at June 30, 2018 was $54,490,000 compared to $46,680,000 at December 31, 2017. The company recognized gains of $5,571,000 and $7,810,000for the three and six months endedJune 30, 2018, respectively, compared to a gain of $3,802,000 for both the three and six months ended June 30, 2017, respectively, related to the convertible note hedge asset.

The company entered into separate, privately negotiated warrant transactions with the option counterparty 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 sold 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 initial strike price of the warrants is $21.4375 per share and is subject to certain adjustments under the terms of the warrant transactions. The company evaluated the warrants under the applicable accounting literature, including Derivatives and Hedging, ASC 815, and determined that the warrants meet the definition of a derivative, are indexed to the company's own stock and should be classified in shareholder's equity. The amount paid for the warrants and capitalized in shareholder's equity was $14,100,000.

The net proceeds from the offering of the 2022 notes were approximately $115,289,000, after deducting fees and offering expenses of $4,711,000, which were paid in 2017. These debt issuance costs were capitalized and are being amortized as interest expense through June 2022. As of June 30, 2018, all of the debt issuance costs were paid. In accordance with ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, these debt issuance costs are presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. 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 warrant transactions), which net cost was $10,680,000.

The liability components of the 2022 notes consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Principal amount of liability component	$	120,000		$	120,000
Unamortized discount	(23,991		)	(26,378		)
Debt fees	(3,500		)	(3,947		)
Net carrying amount of liability component	$	92,509		$	89,675

The unamortized discount of $23,991,000 is to be amortized through June 2022. The effective interest rate on the liability component was 10.9%. Non-cash interest expense of $1,203,000 and $2,387,000 was recognized for the three and six months endedJune 30, 2018, respectively, compared to $212,000 for both the three and six months ended June 30, 2017, respectively. Actual interest expense accrued was $1,350,000 and $2,700,000for the three and six months endedJune 30, 2018, respectively, compared to $255,000 for both the three and six months ended June 30, 2017, respectively, based on the stated coupon rate of 4.5%. The 2022 notes were not convertible as of June 30, 2018 nor was the applicable conversion threshold met.

XML

Other Long-Term Obligations

6 Months Ended

Jun. 30, 2018

Other Liabilities Disclosure [Abstract]

Other Long-Term Obligations

Other long-term obligations consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Convertible 2021 debt conversion liability	$	61,136	$	53,154
Convertible 2022 debt conversion liability	61,061		53,414
Deferred income taxes	28,398		28,890
Product liability	14,189		13,575
Pension	10,347		10,340
Deferred gain on sale leaseback	6,273		6,419
Deferred compensation	5,610		5,592
Supplemental Executive Retirement Plan liability	5,556		5,636
Uncertain tax obligation including interest	2,905		2,738
Other	3,169		3,512
Other Long-Term Obligations	$	198,644	$	183,270

The convertible debt conversion liabilities amounts included in the above table represent the fair values of the conversion liabilities as of June 30, 2018 and December 31, 2017. See "Long-Term Debt" in the notes to the Consolidated Financial Statements included elsewhere in this report for more detail.

On April 23, 2015, the company entered into a real estate sale leaseback transaction which resulted in the company recording 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 gains realized were $71,000 and 141,000 for the three and six months ended June 30, 2018, respectively, compared to 68,000 and 136,000 for the three and six months ended June 30, 2017, respectively.

XML

Revenue (Notes)

6 Months Ended

Jun. 30, 2018

Revenue [Abstract]

Revenue Recognition, Deferred Revenue [Policy Text Block]

The company has two revenue streams: product and services. Services include repair, refurbishment, preventive maintenance and rental of product. Services for the NA/HME and IPG segments include repair of product. Services for the Europe segment include repair, refurbishment and preventive maintenance services. Services for the Asia Pacific segment include rental and repair of product.

The following tables disaggregate the company’s revenues by major source and by reportable segment for the three and six months endedJune 30, 2018 and June 30, 2017 (in thousands):

	Three Months Ended June 30, 2018
	Product		Service		Total
Europe	$	135,408	$	3,488	$	138,896
NA/HME	79,667		200		79,867
IPG	13,267		437		13,704
Asia/Pacific	12,494		1,191		13,685
Total	$	240,836	$	5,316	$	246,152
% Split	98%		2%		100%

	Six Months Ended June 30, 2018
	Product		Service		Total
Europe	$	263,410	$	6,800	$	270,210
NA/HME	159,238		411		159,649
IPG	27,775		816		28,591
Asia/Pacific	22,439		2,323		24,762
Total	$	472,862	$	10,350	$	483,212
% Split	98%		2%		100%

	Three Months Ended June 30, 2017
	Product		Service		Total
Europe	$	125,289	$	3,196	$	128,485
NA/HME	77,094		595		77,689
IPG	15,119		201		15,320
Asia/Pacific	10,875		1,148		12,023
Total	$	228,377	$	5,140	$	233,517
% Split	98%		2%		100%

	Six Months Ended June 30, 2017
	Product		Service		Total
Europe	$	242,079	$	5,914	$	247,993
NA/HME	160,730		1,221		161,951
IPG	31,357		336		31,693
Asia/Pacific	21,367		2,236		23,603
Total	$	455,533	$	9,707	$	465,240
% Split	98%		2%		100%

The company's revenues are principally related to the sale of products, approximately 98%, with the remaining 2% related to services including repair, refurbishment, preventive maintenance and rental of product. While the company has a significant amount of contract types, the sales split by contract type is estimated as follows: general terms and conditions (35%), large national customers (25%), governments, principally pursuant to tender contracts (15%) and other customers including buying groups and independent customers (25%).

All product and substantially all service revenues are recognized at a point in time. The remaining service revenue, recognized over time, are reflected in the Europe segment and include multiple performance obligations. For such contracts, the company allocates revenue to each performance obligation based on its relative standalone selling price. The company generally determines the standalone selling price based on the expected cost-plus margin methodology.    

Revenue is recognized when obligations under the terms of a contract with the customer are satisfied; generally, this occurs with the transfer of control of the company’s products and services. Revenue is measured as the amount of consideration expected to be received in exchange for transferring product or providing services. The amount of consideration received and revenue recognized by the company can vary as a result of variable consideration terms included in the contracts related to customer rebates, cash discounts and return policies. Customer rebates and cash discounts are estimated based on the most likely amount principle and these estimates are based on historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience. The company adjusts its estimate of revenue at the earlier of when the most likely amount of consideration it expects to receive changes or when the consideration becomes fixed. The company generally does not expect that there will be significant changes to its estimates of variable consideration (see “Receivables” and "Accrued Expenses" in the Notes to the Consolidated Financial Statements include elsewhere in this report for more detail).

Depending on the terms of the contract, the company may defer the recognition of a portion of the revenue at the end of a reporting period to align with transfer of control of the company’s products to the customer. In addition, to the extent performance obligations are satisfied over time, the company defers revenue recognition until the performance obligations are satisfied. As of June 30, 2018 and December 31, 2017, the company had deferred revenue of $3,092,000 and $2,770,000, respectively, related to outstanding performance obligations.

XML

Equity Compensation

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Shareholders' Equity Transactions

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 or for estate planning purposes. Holders of Class B Common Shares are entitled to convert their shares into Common Shares at any time on a share-for-share basis. When Class B Common Shares are transferred out of a familial relationship, they automatically convert to Class Common Shares.

As of June 30, 2018, 6,357 Class B Common Shares remained outstanding. Conversion of Class B Common Shares have substantially diminished the significance of the company’s dual class voting structure. As of June 30, 2018, the holders of the Common Shares represented approximately 99.9% of the company’s total outstanding voting power.

Equity Compensation Plan

On May 17, 2018, the shareholders of the company approved the Invacare Corporation 2018 Equity Compensation Plan (the “2018 Plan”), which was adopted on March 27, 2018 by the company's Board of Directors (the “Board”). The company’s Board adopted the 2018 Plan in order to authorize additional Common Shares for grant as equity compensation, and to reflect changes to Section 162(m) of the Internal Revenue Code (the “Code”) resulting from the U.S. Tax Cuts and Jobs Act of 2017.

Following shareholder approval of the 2018 Plan, all of the Common Shares then-remaining available for issuance under the Invacare Corporation 2013 Equity Compensation Plan (the “2013 Plan”) and all of the Common Shares that were forfeited or remained unpurchased or undistributed upon termination or expiration of awards under the 2013 Plan and under the Invacare Corporation 2003 Performance Plan (the “2003 Plan”), become available for issuance under the 2018 Plan. Awards granted previously under the 2013 Plan and 2003 Plan will remain in effect under their original terms.

The 2018 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 2018 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 2018 Plan as two shares. Shares underlying awards made under the 2003 Plan or 2013 Plan that are forfeited or remain unpurchased or undistributed upon termination or expiration of the awards will become available under the 2018

Plan for use in future awards. Any Common Shares that are added back to the 2018 Plan as the result of forfeiture, termination or expiration of an award granted under the 2018 Plan or 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 2018 Plan or 2013 Plan, as applicable. Each Common Share that is added back to the 2018 Plan due to a forfeiture, termination or expiration 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 2018 Plan to any director or employee of the company or an affiliate. As of June 30, 2018, 4,014,199 Common Shares were available for future issuance under the 2018 Plan in connection with the following types of awards with respect to 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 2018 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 employee participants to exchange shares for minimum withholding taxes, which results in the company acquiring treasury shares.

The amounts of equity-based compensation expense recognized as part of SG&A expenses were as follows (in thousands):

	For the Six Months Ended June 30,
	2018			2017
Restricted stock / units	$	2,940		$	3,262
Performance shares / units	(27		)	905
Non-qualified and performance stock options	30			479
Total stock-based compensation expense	$	2,943		$	4,646

As of June 30, 2018, unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2018 Plan and previous plans, which is related to non-vested options and shares, was as follows (in thousands):

	June 30, 2018
Restricted stock and restricted stock units	$	9,899
Performance shares and performance share units	10,890
Non-qualified and performance stock options	2,472
Total unrecognized stock-based compensation expense	$	23,261

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 "Stock Options" and "Performance Shares and Performance Share Units" below). No tax benefits for share-based compensation were realized during the three or six months ended June 30, 2018 and 2017 due to a valuation allowance against deferred tax assets.

Stock Options

Generally, non-qualified stock option awards have a term of ten years and were granted with an exercise price per share equal to the fair market value of one of the company’s Common Shares on the date of grant. Stock option awards granted in 2017 were performance-based awards which will only become exercisable if the performance goals established by the Compensation Committee are achieved over a 3-year period ending in 2019 and subject to the Compensation Committee's exercise of negative discretion to reduce the number of options vested based on the progress towards the company's transformation. The company expects the compensation expense to be recognized over a weighted-average period of approximately two years.

The following table summarizes information about stock option activity for the six months ended June 30, 2018:

	June 30, 2018				Weighted Average Exercise Price
Options outstanding at January 1, 2018	2,631,569				$	19.44
Granted	—				—
Exercised	(183,349		)		14.28
Canceled	(155,200		)		23.49
Options outstanding at June 30, 2018	2,293,020				$	19.58
Options exercise price range at June 30, 2018	$	12.15		to	$	33.36
Options exercisable at June 30, 2018	1,693,244
Shares available for grant at June 30, 2018*	4,014,199

________

 * Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively.

The following table summarizes information about stock options outstanding at June 30, 2018:

	Options Outstanding				Options Exercisable
Exercise Prices	Number Outstanding at June 30, 2018	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable at June 30, 2018	Weighted Average Exercise Price
$ 12.15 – $20.00	887,935	7.6	$	12.82	288,159	$	14.23
$ 20.01 – $25.00	726,751	2.0	22.20		726,751	22.20
$ 25.01 – $30.00	673,838	1.2	25.56		673,838	25.56
$ 30.01 – $33.36	4,496	2.9	33.36		4,496	33.36
Total	2,293,020	3.8	$	19.58	1,693,244	$	22.21

The 2018 Plan provides for a one-year minimum vesting period for stock options and, generally, options must be exercised within ten years from the date granted. No stock options were issued in 2018 and those issued in 2017 were performance-based and may vest after the conclusion of the three-year performance period ending December 31, 2019 based on achievement of performance goals established by the Compensation Committee and subject to the Compensation Committee's exercise of negative discretion to reduce the number of options vested based on the progress towards the company's transformation. All other outstanding stock options were issued in 2014 or prior years and were not performance-based.

For the stock options issued in 2014 and prior, 25% of such options vested one year following the issuance and provided a four-year vesting period whereby options vest in 25% installments in each year. Options granted with graded vesting were accounted for as single options.

The fair value of options granted is estimated on the date of grant using a Black-Scholes option-pricing model. The calculated fair value of the 2017 performance option awards was $5.38 per option based on the following assumptions:

Expected dividend yield	0.4	%
Expected stock price volatility	39.1	%
Risk-free interest rate	2.31	%
Expected life in years	7.8

Expected dividend yield was based on historical dividends. Expected stock price volatility percentage was calculated at the date of grant based on historical stock prices for a period commensurate with the expected life of the option. The assumed expected life was based on the company's historical analysis of option history.

Restricted Stock and Restricted Stock Units

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

	June 30, 2018		Weighted Average Fair Value
Stock / Units unvested at January 1, 2018	776,520		$	13.75
Granted	367,327		17.51
Vested	(366,794	)	15.00
Canceled	(45,820	)	13.11
Stock / Units unvested at June 30, 2018	731,233		$	15.06

The restricted stock awards generally vest ratably over the three years after the award date. 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):

	June 30, 2018		Weighted Average Fair Value
Shares / Units unvested at January 1, 2018	457,879		$	12.33
Granted	205,164		17.48
Vested	—		—
Canceled	(2,088	)	12.82
Shares / Units unvested at June 30, 2018	660,955		$	13.93

During the six months ended June 30, 2018, performance shares and performance share units (for non-U.S. recipients) were granted as performance awards with a three-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 three-year performance period based on achievement of performance criteria for January 1, 2018 through December 31, 2020 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 three years. Expense is being recognized for the 2016, 2017 and 2018 awards as it is considered probable that the performance goals for those awards will be met.

XML

Accumulated Other Comprehensive Income (Loss) by Component

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss) by Component

Accumulated Other Comprehensive Income (Loss) by Component

Changes in accumulated other comprehensive income ("OCI") for the three and six months endedJune 30, 2018 and June 30, 2017, respectively, were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
March 31, 2018	$	59,085		$	(1,505	)	$	(7,699	)	$	(1,379	)	$	48,502
OCI before reclassifications	(25,407		)	1,969			291			1,128			(22,019		)
Amount reclassified from accumulated OCI	—			—			(1		)	577			576
Net current-period OCI	(25,407		)	1,969			290			1,705			(21,443		)
June 30, 2018	$	33,678		$	464		$	(7,409	)	$	326		$	27,059

December 31, 2017	$	50,376		$	(4,612	)	$	(7,652	)	$	(1,242	)	$	36,870
OCI before reclassifications	(16,698		)	5,076			373			743			(10,506		)
Amount reclassified from accumulated OCI	—			—			(130		)	825			695
Net current-period OCI	(16,698		)	5,076			243			1,568			(9,811		)
June 30, 2018	$	33,678		$	464		$	(7,409	)	$	326		$	27,059

March 31, 2017	$	(28,352	)	$	20,474		$	(11,543	)	$	1,205		$	(18,216	)
OCI before reclassifications	37,163			(10,852		)	(480		)	(1,335		)	24,496
Amount reclassified from accumulated OCI	—			—			54			(301		)	(247		)
Net current-period OCI	37,163			(10,852		)	(426		)	(1,636		)	24,249
June 30, 2017	$	8,811		$	9,622		$	(11,969	)	$	(431	)	$	6,033

December 31, 2016	$	(26,199	)	$	17,372		$	(11,248	)	$	740		$	(19,335	)
OCI before reclassifications	35,010			(7,750		)	(985		)	(571		)	25,704
Amount reclassified from accumulated OCI	—			—			264			(600		)	(336		)
Net current-period OCI	35,010			(7,750		)	(721		)	(1,171		)	25,368
June 30, 2017	$	8,811		$	9,622		$	(11,969	)	$	(431	)	$	6,033

Reclassifications out of accumulated OCI for the three and six months endedJune 30, 2018 and June 30, 2017 were as follows (in thousands):

	Amount reclassified from OCI												Affected line item in the Statement of Comprehensive (Income) Loss
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Defined Benefit Plans
Service and interest costs	$	(1	)	$	54		$	(130	)	$	264		Selling, General and Administrative
Tax	—			—			—			—			Income Taxes
Total after tax	$	(1	)	$	54		$	(130	)	$	264
Derivatives
Foreign currency forward contracts hedging sales	$	209		$	166		$	234		$	234		Net Sales
Foreign currency forward contracts hedging purchases	429			(481		)	680			(872		)	Cost of Products Sold
Total loss (income) before tax	638			(315		)	914			(638		)
Tax	(61		)	14			(89		)	38			Income Taxes
Total after tax	$	577		$	(301	)	$	825		$	(600	)

XML

Charges Related To Restructuring Activities

6 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Charges Related To Restructuring Activities

Charges Related to Restructuring Activities

The company's restructuring charges were originally 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 due to the outsourcing by competitors to lower cost locations. Restructuring decisions were also the result of reduced profitability in the NA/HME and Asia/Pacific segments. In addition, as a result of the company's transformation strategy, additional restructuring actions were implemented in 2017 and continued in 2018. The company expects any near-term cost savings from restructuring will be offset by other costs because of pressures on the business.

For the six months endedJune 30, 2018, charges totaled $745,000 which were related to NA/HME ($86,000), Europe ($401,000) and Asia/Pacific ($258,000). In NA/HME, costs were incurred related to severance ($124,000) and contract termination cost reversals ($135,000). The European and Asia/Pacific charges were for severance costs. Payments for the six months ended June 30, 2018 were $3,474,000 and the cash payments were funded with company's cash on hand. Most of the 2018 charges are expected to be paid out within twelve months.

For the six months endedJune 30, 2017, charges totaled $8,270,000 which were related to NA/HME ($6,170,000), Europe segment ($1,204,000) and Asia/Pacific ($896,000). In NA/HME, costs were incurred related to severance ($5,522,000) and contract termination costs ($648,000). The NA/HME charges include the impact of the company's closure of its Suzhou, China, manufacturing facility. The European and Asia/Pacific charges were for severance costs. Payments for the six months ended June 30, 2017 were $4,800,000 and the cash payments were funded with company's cash on hand. Most of the 2017 charges have been paid out.

There have been no material changes in accrued balances related to the charges, either as a result of revisions to 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, in general, these savings have been more than offset by the general business decline, higher regulatory and compliance costs related to quality system improvements, and more recently, higher interest expense. To date, the company's liquidity has not been materially impacted. Please refer to Charges Related to Restructuring Activities of company's Annual Report on Form 10-K for the period ending December 31, 2017 for disclosure of restructuring activity prior to 2018.

A progression by reporting segment of the accruals recorded as a result of the restructuring for the six months ended June 30, 2018 is as follows (in thousands):

	Severance			Contract Terminations			Total
December 31, 2017 Balances
NA/HME	$	2,439		$	167		$	2,606
Europe	249			134			383
Other	1,016			—			1,016
Total	3,704			301			4,005
Charges
NA/HME	97			—			97
Europe	293			—			293
Asia/Pacific	11			—			11
Total	401			—			401
Payments
NA/HME	(1,697		)	(57		)	(1,754		)
Europe	(338		)	(97		)	(435		)
Asia/Pacific	(11		)	—			(11		)
Other	(260		)	—			(260		)
Total	(2,306		)	(154		)	(2,460		)
March 31, 2018 Balances
NA/HME	839			110			949
Europe	204			37			241
Other	756			—			756
Total	1,799			147			1,946
Charges (Reversals)
NA/HME	124			(135		)	(11		)
Europe	108			—			108
Asia/Pacific	247			—			247
Total	479			(135		)	344
Payments
NA/HME	(601		)	66			(535		)
Europe	(195		)	(37		)	(232		)
Asia/Pacific	(247		)	—			(247		)
Total	(1,043		)	29			(1,014		)
June 30, 2018 Balances
NA/HME	362			41			403
Europe	117			—			117
Other	756			—			756
Total	$	1,235		$	41		$	1,276

XML

Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The company had an effective tax rate of 21.9% and 21.0% on losses before tax from continuing operations for the three and six months endedJune 30, 2018, respectively, compared to an expected benefit of 21% on the continuing operations pre-tax loss for each period. The company had an effective tax rate of 10.2% and 13.4% on losses before tax from continuing operations for the three and six months endedJune 30, 2017, respectively, compared to an expected benefit at the U.S. statutory rate of 35% on the continuing operations pre-tax loss for each period. The company's effective tax rate for each of the three and six months endedJune 30, 2018 and June 30, 2017 were unfavorable as compared to the U.S. federal statutory rate expected benefit, principally due to the negative impact of the company not being able to record tax benefits related to the significant losses in countries which had tax valuation allowances. The effective tax rate was increased for the three and six months endedJune 30, 2018 and decreased for the three months ended June 30, 2017 by certain taxes outside the United States, excluding countries with tax valuation allowances, that were at an effective rate higher than the U.S. statutory rate for the three and six months endedJune 30, 2018 and lower than the U.S. statutory rate for the three months ended June 30, 2017.

The US Tax Cuts and Jobs Act of 2017 ("Tax Act") was enacted on December 22, 2017. The Tax Act subjects a US shareholder to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred.

In accordance with the SEC issued SAB 118, which provided guidance on accounting for the tax effects of the Tax Act, the company made certain provisional estimates at December 31, 2017. The company determined that the provisional calculations will be finalized after the underlying timing differences and foreign earnings and profits are finalized with our 2017 federal tax return filing.  Furthermore, the company is still analyzing certain aspects of the Tax Act and refining its calculations which could potentially affect the measurement of these balances or potentially give rise to new or additional deferred tax amounts. No adjustments were made to the company's provisional calculations during the quarter or six months ended June 30, 2018.

XML

Net Earnings (Loss) Per Common Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Net Earnings (Loss) Per Common Share

Net Loss Per Common Share

The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated.

(In thousands except per share data)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Basic
Average common shares outstanding	33,169			32,833			33,040			32,654
Net loss	$	(16,543	)	$	(23,508	)	$	(30,651	)	$	(40,288	)
Net loss per common share	$	(0.50	)	$	(0.72	)	$	(0.93	)	$	(1.23	)
Diluted
Average common shares outstanding	33,169			32,833			33,040			32,654
Stock options and awards	827			360			827			293
Average common shares assuming dilution	33,996			33,193			33,867			32,947
Net loss	$	(16,543	)	$	(23,508	)	$	(30,651	)	$	(40,288	)
Net loss per common share *	$	(0.50	)	$	(0.72	)	$	(0.93	)	$	(1.23	)

________

* Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss.

At June 30, 2018, 329,315 shares associated with stock options were excluded from the average common shares assuming dilution for both the three and six months endedJune 30, 2018 as they were anti-dilutive. At June 30, 2018, the majority of the anti-dilutive shares were granted at an exercise price of $25.79, which was higher than the average fair market value price of $18.09 and $17.87for the three and six months endedJune 30, 2018, respectively.

At June 30, 2017, 1,353,144 and 1,629,336 shares associated with stock options were excluded from the average common shares assuming dilution for the three and six months endedJune 30, 2017, respectively, as they were anti-dilutive. At June 30, 2017, the majority of the anti-dilutive shares were granted at an exercise price of $25.79, which was higher than the average fair market value price of $13.14 and $12.57for the three and six months endedJune 30, 2017, respectively.

For both the three and months ended June 30, 2018 and June 30, 2017, respectively, no shares were included in the common shares assuming dilution related to the company's issued warrants as the average market price of the company stock for these periods did not exceed the strike price of the warrants.

XML

Concentration Of Credit Risk

6 Months Ended

Jun. 30, 2018

Risks and Uncertainties [Abstract]

Concentration Of Credit Risk

Concentration of Credit Risk

The company manufactures and distributes durable medical equipment 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 lease financing to Invacare's U.S. customers. The DLL agreement provides for direct leasing between DLL and the Invacare customer. The company retains a recourse obligation of $2,088,000 at June 30, 2018 to DLL for events of default under the contracts, which total $16,281,000 at June 30, 2018. Guarantees, ASC 460, requires the company to record a guarantee liability as it relates to the limited recourse obligation. 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 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.

XML

Derivatives

6 Months Ended

Jun. 30, 2018

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. 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.

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.

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, most 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 $50,475,000 and $43,692,000 matured for the six months ended June 30, 2018 and June 30, 2017, respectively.

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

	June 30, 2018					December 31, 2017
	Notional Amount		Unrealized Net Gain (Loss)			Notional Amount		Unrealized Net Gain (Loss)
USD / AUD	$	2,580	$	161		$	3,960	$	44
USD / CAD	17,428		(80		)	33,344		115
USD / CNY	2,016		21			4,027		61
USD / EUR	40,266		851			72,259		(558		)
USD / GBP	2,468		(10		)	4,640		(124		)
USD / NZD	5,910		(105		)	9,300		11
USD / SEK	1,052		122			—		—
USD / MXP	3,279		(12		)	6,461		(158		)
EUR / GBP	16,722		(461		)	32,248		(682		)
EUR / SEK	3,802		145			7,732		39
EUR / NOK	2,289		(59		)	4,521		68
EUR / NZD	1,403		(10		)	2,855		(8		)
DKK / SEK	3,013		(156		)	6,453		(120		)
	$	102,228	$	407		$	187,800	$	(1,312	)

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 2018 or 2017 related to these contracts and the associated short-term intercompany trading receivables and payables.

Foreign currency forward exchange contracts not qualifying or designated for hedge accounting treatment, as well as ineffective hedges, entered into in 2018 and 2017, respectively, and outstanding were as follows (in thousands USD):

	June 30, 2018					December 31, 2017
	Notional Amount		Gain (Loss)			Notional Amount		Gain (Loss)
AUD / USD	$	2,818	$	69		$	2,750	$	(77	)
EUR / USD	7,695		472			—		—
NZD / USD	—		—			3,300		(53		)
EUR / AUD	2,894		(87		)	4,000		43
AUD / NZD	2,439		(26		)	3,600		9
EUR / NOK	36		(1		)	—		—
	$	15,882	$	427		$	13,650	$	(78	)

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

	June 30, 2018				December 31, 2017
	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	$	1,596	$	1,189	$	678	$	1,990
Derivatives not designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	540		113		52		130
Total derivatives	$	2,136	$	1,302	$	730	$	2,120

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

The effect of derivative instruments on Accumulated Other Comprehensive Income (OCI) and the Statement of Comprehensive Income (Loss) and was as follows (in thousands):

Derivatives in ASC 815 cash flow hedge relationships	Amount of Gain (Loss) Recognized  in Accumulated OCI on Derivatives (Effective Portion)			Amount of Gain (Loss) Reclassified from Accumulated  OCI into Income (Effective Portion)			Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective  Portion and Amount Excluded from Effectiveness Testing)
Three months ended June 30, 2018
Foreign currency forward exchange contracts	$	1,128		$	(577	)	$	—
Six months ended June 30, 2018
Foreign currency forward exchange contracts	$	743		$	(825	)	$	(1	)
Three months ended June 30, 2017
Foreign currency forward exchange contracts	$	(1,335	)	$	301		$	—
Six months ended June 30, 2017
Foreign currency forward exchange contracts	$	(571	)	$	600		$	—
Derivatives not designated as hedging instruments under ASC 815							Amount of Gain (Loss) Recognized in Income on Derivatives
Three months ended June 30, 2018
Foreign currency forward exchange contracts							$	197
Six months ended June 30, 2018
Foreign currency forward exchange contracts							$	427
Three months ended June 30, 2017
Foreign currency forward exchange contracts							$	52
Six months ended June 30, 2017
Foreign currency forward exchange contracts							$	117

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 and in cost of product sold for hedges of inventory purchases. For the three and six months ended June 30, 2018, net sales were decreased by $209,000 and $234,000 while cost of product sold was increased by $429,000 and $680,000 for net pre-tax realized losses of $638,000 and $914,000, respectively. For the three and six months ended June 30, 2017, net sales were decreased by $166,000 and $234,000 while cost of product sold was decreased

by $481,000 and $872,000 for net realized pre-tax gains of $315,000 and $638,000, respectively.

Gains of $197,000 and $427,000 were recognized in selling, general and administrative (SG&A) expenses for the three and six months endedJune 30, 2018, respectively, compared to gains of $52,000 and $117,000for the three and six months endedJune 30, 2017, respectively, related to forward contracts not designated as hedging instruments. The forward contracts were entered into to offset gains/losses that were also recorded in SG&A expenses on intercompany trade receivables or payables. The gains/losses on the non-designated hedging instruments were substantially offset by gains/losses on intercompany trade payables.

The company's derivative agreements provide the counterparties with a right of set off in the event of a default. The right of set off 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 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 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, other than the conversion and bond hedge derivatives which are presented net on the Condensed Consolidated Statement of Comprehensive Income (Loss), and all derivative balances presented are subject to provisions that are similar to master netting agreements.

During the first quarter of 2016, the company entered into privately negotiated convertible 2021 note hedges and 2021 warrants in connection with its sale of $150,000,000 in aggregate principal amount of the company’s 5.00% Convertible Senior Notes due 2021. The 2021 warrants, which increased paid in capital by $12,376,000, are clearly and closely related to the convertible 2021 notes and thus classified as equity. The 2021 note hedge asset and 2021 convertible debt conversion liability were recorded, based on initial fair values, as an asset of $27,975,000 and a liability of $34,480,000, respectively, and these fair values are updated quarterly with the offset to the income statement.

During the second quarter of 2017, the company entered into privately negotiated convertible 2022 note hedges and warrants in connection with its sale of $120,000,000 in aggregate principal amount of the company’s 4.50% Convertible Senior Notes due 2022. The 2022 warrants, which increased paid in capital by $14,100,000, are clearly and closely related to the convertible 2022 notes and thus classified as equity. The 2022 note hedge assets and 2022 convertible debt conversion liability were recorded, based on initial fair values, as an asset of $24,780,000 and a liability of $28,859,000, respectively, and these fair values are updated quarterly with the offset to the income statement. See "Long-Term Debt" in the notes to the Consolidated Financial Statements included elsewhere in this report for more detail.

The fair values of the outstanding convertible note derivatives as of June 30, 2018 and their effect on the Statement of Comprehensive Income (Loss) were as follows (in thousands):

				Gain (Loss)						Gain (Loss)
	Fair Value			Three Months Ended						Six Months Ended
	June 30, 2018			June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Convertible 2021 debt conversion long-term liability	$	(61,136	)	$	(5,609	)	$	(8,250	)	$	(7,982	)	$	(1,519	)
Convertible 2022 debt conversion long-term liability	(61,061		)	(5,837		)	(4,392		)	(7,647		)	(4,392		)
Convertible 2021 note hedge long-term asset	54,858			5,896			7,789			7,943			1,959
Convertible 2022 note hedge long-term asset	54,490			5,571			3,802			7,810			3,802
Net fair value and net gain (loss) on convertible debt derivatives	$	(12,849	)	$	21		$	(1,051	)	$	124		$	(150	)

The 2021 and 2022 convertible debt conversion liability amounts and the 2021 and 2022 note hedge asset amounts are included in Other Long-Term Obligations and Other Long-Term Assets, respectively, in the company's Consolidated Balance Sheets.

XML

Fair Values

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Values

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
	Level I	Level II			Level III
June 30, 2018
Forward exchange contracts—net	—	$	834		—
Convertible 2021 debt conversion liability	—	(61,136		)	—
Convertible 2021 note hedge asset	—	54,858			—
Convertible 2022 debt conversion liability	—	(61,061		)	—
Convertible 2022 note hedge asset	—	54,490			—
December 31, 2017
Forward exchange contracts—net	—	$	(1,390	)	—
Convertible 2021 debt conversion liability	—	(53,154		)	—
Convertible 2021 note hedge asset	—	46,915			—
Convertible 2022 debt conversion liability	—	(53,414		)	—
Convertible 2022 note hedge asset	—	46,680			—

The carrying values and fair values of the company’s financial instruments are as follows (in thousands):

	June 30, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
Cash and cash equivalents	$	122,398		$	122,398		$	176,528		$	176,528
Other investments	90			90			103			103
Installment receivables, net of reserves	1,577			1,577			1,809			1,809
Long-term debt (including current maturities of long-term debt) *	(249,002		)	(319,103		)	(243,445		)	(294,173		)
Convertible 2021 debt conversion liability in Other Long-Term Obligations	(61,136		)	(61,136		)	(53,154		)	(53,154		)
Convertible 2021 note hedge in Other Long-Term Assets	54,858			54,858			46,915			46,915
Convertible 2022 debt conversion liability in Other Long-Term Obligations	(61,061		)	(61,061		)	(53,414		)	(53,414		)
Convertible 2022 note hedge in Other Long-Term Assets	54,490			54,490			46,680			46,680
Forward contracts in Other Current Assets	2,136			2,136			730			730
Forward contracts in Accrued Expenses	(1,302		)	(1,302		)	(2,120		)	(2,120		)

________

* The company's long-term debt is shown net of discount and fees associated with the Convertible Senior Notes due 2021 and 2022 on the company's condensed consolidated balance sheet. Accordingly, the fair values of the Convertible Senior Notes due 2021 and 2022 are included in the long-term debt presented in this table is also shown net of the discount and fees.

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

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

Other investments: The company has made an investment in a limited partnership, which is accounted for using the cost method, adjusted for any estimated declines in value. The investment was acquired in private placement and there is no quoted market price or stated rate of return. The company does not have the ability to easily sell the investment. The company completes an evaluation of the residual value related to such investments in the fourth quarter each year.

Installment receivables: The carrying value 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 period, while the revolving credit facility fair value is based upon an estimate of the market for similar borrowing arrangements. The fair values are deemed to be categorized as Level 2 in the fair value hierarchy.

Convertible debt derivatives: The fair values for the convertible debt conversion liability and note hedge derivatives are based on valuation models in which all the significant inputs are observable in active markets.

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 company’s forward contracts are included in Other Current Assets or Accrued Expenses in the Consolidated Balance Sheets.

XML

Business Segments

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Business Segments

Business Segments

The company operates in four primary business segments: NA/HME, IPG, Europe and Asia/Pacific. Both the NA/HME and IPG segments operate in the Americas. The NA/HME segment sells each of the three primary product categories, which includes: lifestyle, mobility and seating, and respiratory therapy products. IPG sells long-term care medical equipment, health care furnishings and accessory products. Europe and Asia/Pacific sell product categories similar to those of NA/HME and IPG. 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.

Segment performance is measured and resources are allocated based on a number of factors, with the primary profit or loss measure being segment operating profit (loss). Segment operating profit

(loss) represents net sales less cost of products sold less selling general and administrative expenses. Segment operating profit (loss) excludes unallocated corporate general and administrative expenses not allocated to the segments and intersegment sales and profit eliminations, which are included in All Other. In addition, segment operating profit (loss) further excludes charges related to restructuring activities, asset impairments and gain on sale of business (as applicable).

Segment operating income (loss), is used by the CODM for purposes of making decisions about allocating resources to a segment and assessing its performance. In addition, this metric is reviewed by the company’s Board of Directors regarding segment performance and is a key metric in the performance management assessment of the company's employees.

(in thousands)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Revenues from external customers
Europe	$	138,896		$	128,485		$	270,210		$	247,993
NA/HME	79,867			77,689			159,649			161,951
IPG	13,704			15,320			28,591			31,693
Asia/Pacific	13,685			12,023			24,762			23,603
Consolidated	$	246,152		$	233,517		$	483,212		$	465,240
Intersegment revenues
Europe	$	4,877		$	3,738		$	8,734		$	7,413
NA/HME	23,804			21,050			47,307			43,145
IPG	229			975			318			1,743
Asia/Pacific	5,254			3,896			10,914			7,756
Consolidated	$	34,164		$	29,659		$	67,273		$	60,057
Restructuring charges before income taxes
Europe	$	108		$	514		$	401		$	1,204
NA/HME	(11		)	3,928			86			6,170
Asia/Pacific	247			545			258			896
Consolidated	$	344		$	4,987		$	745		$	8,270
Operating income (loss)
Europe	$	5,171		$	7,077		$	11,765		$	12,177
NA/HME	(8,420		)	(12,395		)	(16,558		)	(21,821		)
IPG	1,163			1,472			2,761			3,370
Asia/Pacific	1,570			(118		)	2,542			(548		)
All Other	(5,901		)	(6,735		)	(11,674		)	(11,245		)
Charge expense related to restructuring activities	(344		)	(4,987		)	(745		)	(8,270		)
Consolidated operating loss	(6,761		)	(15,686		)	(11,909		)	(26,337		)
Net gain (loss) on convertible debt derivatives	21			(1,051		)	124			(150		)
Net Interest expense	(6,828		)	(4,596		)	(13,541		)	(9,026		)
Loss before income taxes	$	(13,568	)	$	(21,333	)	$	(25,326	)	$	(35,513	)

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Europe
Lifestyle	$	69,621	$	64,128	$	137,612	$	125,932
Mobility and Seating	58,411		53,526		110,184		100,458
Respiratory Therapy	6,480		6,634		13,242		13,750
Other(1)	4,384		4,197		9,172		7,853
	$	138,896	$	128,485	$	270,210	$	247,993
NA/HME
Lifestyle	$	31,573	$	31,045	$	62,207	$	63,294
Mobility and Seating	31,063		27,170		60,228		54,061
Respiratory Therapy	16,959		18,826		36,691		43,309
Other(1)	272		648		523		1,287
	$	79,867	$	77,689	$	159,649	$	161,951
Institutional Products Group
Continuing Care	$	13,704	$	15,320	$	28,591	$	31,693
Asia/Pacific
Mobility and Seating	$	8,448	$	7,108	$	15,339	$	13,716
Lifestyle	2,736		2,637		5,001		4,873
Continuing Care	447		671		734		1,846
Respiratory Therapy	522		306		646		649
Other(1)	1,532		1,301		3,042		2,519
	$	13,685	$	12,023	$	24,762	$	23,603
Total Consolidated	$	246,152	$	233,517	$	483,212	$	465,240

  ________________________

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

XML

Contingencies

6 Months Ended

Jun. 30, 2018

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 currently 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.

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 became subject to a consent decree of injunction filed by FDA with respect to the company's Corporate facility and its Taylor Street manufacturing facility in Elyria, Ohio. The consent decree initially limited the company's (i) manufacture and distribution of power and manual wheelchairs, wheelchair components and wheelchair sub-assemblies at or from its Taylor Street manufacturing facility, except in verified cases of medical necessity, (ii) design activities related to wheelchairs and power beds that took place at the impacted Elyria facilities and (iii) replacement, service and repair of products which were already in use from the Taylor Street manufacturing facility. Under the terms of the consent decree, in order to resume full operations, the company had to successfully complete independent, third-party expert certification audits at the impacted Elyria facilities, comprised of three distinct certification reports separately submitted to, and accepted by, FDA; submit its own report to the FDA; and successfully complete a reinspection by FDA of the company’s Corporate and Taylor Street facilities.

On July 24, 2017, following its June 2017 reinspection of the Corporate and Taylor Street facilities, FDA notified the company that it is in substantial compliance with the FDA Act, FDA regulations and the terms of the consent decree and that the company was permitted to resume full operations at those facilities including the resumption of unrestricted sales of products made in those facilities.

The consent decree will continue in effect for at least five years from July 2017, during which time the company’s Corporate and Taylor Street facilities must complete two semi-annual audits in the first year and then four annual audits in the next four years performed by a company-retained expert firm. The expert audit firm will determine whether the facilities remain in continuous compliance with the FDA Act, FDA regulations and the terms of the consent decree. The FDA has the authority to inspect these facilities and any other FDA registered facility, at any time.

The FDA has continued to actively inspect the company’s facilities, other than through the processes established under the consent decree. The company expects that the FDA will, from time to time, inspect substantially all the company's domestic and foreign FDA-registered facilities. Recent inspections for which follow-up remains ongoing are summarized in the following paragraphs.

In June 2017, FDA inspected the company's Corporate and Taylor Street facilities in connection with the consent decree, as described above, and issued an inspectional observation on Form 483. The company submitted its response to the agency in a timely manner. On July 24, 2017, the FDA notified the company that it was in substantial compliance with the FDA Act, FDA Regulations and the terms of the consent decree and that it was permitted to resume full operations at those facilities.

In March 2018, the company completed its first semi-annual independent expert audit of the Corporate and Taylor Street facilities, as required under the consent decree, with no adverse audit report observations. The audit report was submitted to, and accepted by FDA.

In September 2017, Alber GmbH, a wholly owned subsidiary of the company, received a warning letter from the FDA. The warning letter required completion of corrective actions to address Form 483 observations issued following FDA's inspection of Alber’s facility in Albstadt, Germany in May 2017. As a consequence of the warning letter, all Alber devices could not be imported into the United States until all findings were corrected to FDA’s satisfaction. On January 3, 2018, FDA notified the company that Alber’s responses to the warning letter were adequate, and that FDA had as of that date, removed the import suspension. FDA conducted its subsequent reinspection of Alber in April 2018, the result of which included no noted observations. The company expects the warning letter to be closed as a result of this inspection; however, the company cannot be assured of the timing or certainty of this outcome.

In November 2017, FDA inspected the company’s facility in Pinellas Park, Florida and issued its observations on Form 483, one of which was annotated as corrected and verified at the conclusion of the inspection. The company has submitted its response to FDA in a timely manner. In June 2018, the FDA notified the company that its responses to the Form 483 observations were adequate.

In November 2017, the FDA inspected the company’s facility in Sanford, Florida and issued its observations on Form 483, and the company submitted its response to FDA in a timely manner. In July 2018, the FDA notified the company that its responses to the Form 483 observations were adequate. The Sanford facility is the subject of a warning letter from the FDA issued in December 2010 related to quality systems processes and procedures, and the company continues to work on addressing the FDA’s citations.

The results of regulatory claims, proceedings, investigations, or litigation are difficult to predict. An unfavorable resolution or outcome of any FDA warning letters or inspectional observations, or other FDA enforcement related to company facilities, could materially and adversely affect the company's business, financial condition, and results of operations.

The limitations previously imposed by the FDA consent decree negatively affected net sales in the NA/HME segment and, to a certain extent, the Asia/Pacific segment beginning in 2012. The limitations led to delays in new product introductions. Further, uncertainty regarding how long the limitations would be in effect limited the company’s ability to renegotiate and bid on certain customer contracts and otherwise led to a decline in customer orders.

Although the company has been permitted to resume full operations at the Corporate and Taylor Street facilities, the negative effect of the consent decree on customer orders and net sales in the NA/HME and Asia/Pacific segments has been considerable, and 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 previous limitations in the consent decree had, and likely may continue to have, a material adverse effect on the company's business, financial condition and results of operations.

Separately, net sales in the NA/HME segment have likely been 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 the impact of the National Competitive Bidding ("NCB") process. In addition, net sales in the NA/HME segment have declined and may continue to decline as a result of the company's strategic focus away from lower margin, less differentiated products, as the company becomes more focused on its clinically complex products.

Warranty Matters

The company's warranty reserves are subject to adjustment in future periods based on historical analysis of warranty claims and as new developments occur that may change the company's estimates related to specific product 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.

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

For additional information regarding the consent decree, other regulatory matters, and risks and trends that may impact the company’s financial condition or results of operations, please see the following sections of the company's Annual Report on Form 10-K for the year ended December 31, 2017: 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.

XML

Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

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 June 30, 2018 and the results of its operations and changes in its cash flow for the six months ended June 30, 2018 and 2017, respectively. Certain foreign subsidiaries, represented by the European segment, are consolidated using a May 31 quarter end 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. The results of operations for the three and six months endedJune 30, 2018 are not necessarily indicative of the results to be expected for the full year

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.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable: The company records accounts receivable when control of the product or service transfers 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 when legal remedies are exhausted.

Reserves for customer bonus and cash discounts are recorded as a reduction in revenue and netted against gross accounts receivable. Customer rebates in excess of a given customer's accounts receivable balance are classified in Accrued Expenses. Customer rebates and cash discounts are estimated based on the most likely amount principle as well as historical experience and anticipated performance. In addition, customers have the right to return product within the company’s normal terms policy, and as such the company estimates the expected returns based on an analysis of historical experience and adjusts revenue accordingly.

Recent Accounting Pronouncements

Recent Accounting Pronouncements (Already Adopted):

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which replaces numerous requirements in U.S. GAAP and provides companies with a single revenue recognition model for recognizing 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 previous 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.

Effective January 1, 2018, the company adopted the new accounting standard, and all the related amendments, on a modified retrospective basis, with no cumulative effect adjustment to equity needed. Upon adoption, the standard did not have a material impact on the company's results of operations or cash flows nor does the company expect it to have a material impact on future periods. Pursuant to ASU 2014-09, revenues are recognized as control transfers to the customers, which is consistent with the prior revenue recognition model and the prior accounting for the vast majority of the company's contracts. While the company does have a minor amount of service business for which revenue is recognized over time as compared to a point in time, the company’s process to estimate the amount of revenue to be recognized did not change as a result of the implementation of the new standard.

Recent Accounting Pronouncements (Not Yet Adopted):

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 continues to assess the impact of the adoption of ASU 2016-02 on the company's financial statements. While the company has not finalized its assessment of the impact of ASU 2016-02, the company does expect the standard to have a significant impact on the company's consolidated balance sheets as the company will be required to record assets and liabilities related to its operating leases. The standard is not expected to have a material impact on the Company's results of operations or cash flows.

In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Statements." ASU 2016-13 requires a new credit loss standard for most financial assets and certain other instruments. For example, entities will be required to use an "expected loss" model that will generally require earlier recognition of allowances for losses for trade receivables. The standard also requires additional disclosures, including disclosures regarding how an entity tracks credit quality. The amendments in the pronouncement are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Entities may early adopt the amendments as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The company is currently reviewing the impact of the adoption of ASU 2016-13 on the company's financial statements.

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The company is currently reviewing the impact of the adoption of ASU 2017-04 but does not expect the adoption to impact the company's financial statements.

XML

Receivables (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Schedule of Accounts Receivable

Receivables consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Accounts receivable, gross	$	143,696		$	154,966
Customer rebate reserve	(10,527		)	(18,747		)
Allowance for doubtful accounts	(4,841		)	(5,113		)
Cash discount reserves	(3,173		)	(4,252		)
Other, principally returns and allowances reserves	(1,056		)	(1,239		)
Accounts receivable, net	$	124,099		$	125,615

Schedule of Installment Receivables

Installment receivables consist of the following (in thousands):

	June 30, 2018									December 31, 2017
	Current			Long- Term			Total			Current			Long- Term			Total
Installment receivables	$	2,369		$	1,525		$	3,894		$	2,415		$	2,076		$	4,491
Less: Unearned interest	(32		)	—			(32		)	(38		)	—			(38		)
	2,337			1,525			3,862			2,377			2,076			4,453
Allowance for doubtful accounts	(1,071		)	(1,214		)	(2,285		)	(1,043		)	(1,601		)	(2,644		)
Installment receivables, net	$	1,266		$	311		$	1,577		$	1,334		$	475		$	1,809

Schedule of Installment Receivables Allowance for Doubtful Accounts

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

	Six Months Ended June 30, 2018			Year Ended December 31, 2017
Balance as of beginning of period	$	2,644		$	2,838
Current period provision (benefit)	(102		)	1,001
Direct write-offs charged against the allowance	(257		)	(1,195		)
Balance as of end of period	$	2,285		$	2,644

Schedule of Installment Receivables by Class

Installment receivables by class as of June 30, 2018 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	$	3,005	$	3,005	$	2,285	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	889		857		—		68
Impaired installment receivables with a related allowance recorded	—		—		—		—
Total Canadian installment receivables	889		857		—		68
Total
Non-Impaired installment receivables with no related allowance recorded	889		857		—		68
Impaired installment receivables with a related allowance recorded	3,005		3,005		2,285		—
Total installment receivables	$	3,894	$	3,862	$	2,285	$	68

Installment receivables by class as of December 31, 2017 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	$	3,566	$	3,566	$	2,642	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	923		885		—		74
Impaired installment receivables with a related allowance recorded	2		2		2		—
Total Canadian installment receivables	925		887		2		74
Total
Non-Impaired installment receivables with no related allowance recorded	923		885		—		74
Impaired installment receivables with a related allowance recorded	3,568		3,568		2,644		—
Total installment receivables	$	4,491	$	4,453	$	2,644	$	74

Schedule of Financing Receivables

Installment receivables by class as of June 30, 2018 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	$	3,005	$	3,005	$	2,285	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	889		857		—		68
Impaired installment receivables with a related allowance recorded	—		—		—		—
Total Canadian installment receivables	889		857		—		68
Total
Non-Impaired installment receivables with no related allowance recorded	889		857		—		68
Impaired installment receivables with a related allowance recorded	3,005		3,005		2,285		—
Total installment receivables	$	3,894	$	3,862	$	2,285	$	68

Installment receivables by class as of December 31, 2017 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	$	3,566	$	3,566	$	2,642	$	—
Canada
Non-Impaired installment receivables with no related allowance recorded	923		885		—		74
Impaired installment receivables with a related allowance recorded	2		2		2		—
Total Canadian installment receivables	925		887		2		74
Total
Non-Impaired installment receivables with no related allowance recorded	923		885		—		74
Impaired installment receivables with a related allowance recorded	3,568		3,568		2,644		—
Total installment receivables	$	4,491	$	4,453	$	2,644	$	74

Schedule of Aging of Installment Receivables

The aging of the company’s installment receivables was as follows (in thousands):

	June 30, 2018						December 31, 2017
	Total		U.S.		Canada		Total		U.S.		Canada
Current	$	889	$	—	$	889	$	916	$	—	$	916
0-30 Days Past Due	—		—		—		6		—		6
31-60 Days Past Due	—		—		—		—		—		—
61-90 Days Past Due	—		—		—		—		—		—
90+ Days Past Due	3,005		3,005		—		3,569		3,566		3
	$	3,894	$	3,005	$	889	$	4,491	$	3,566	$	925

XML

Inventories (Tables)

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Finished goods	$	60,481	$	52,773
Raw materials	65,250		59,497
Work in process	10,875		9,663
Inventories, net	$	136,606	$	121,933

XML

Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

Other current assets consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Value added tax receivables	$	15,914	$	16,174
Service contracts	3,021		2,812
Derivatives (foreign currency forward exchange contracts)	2,136		730
Prepaid insurance	1,155		2,647
Prepaid inventory	614		711
Recoverable income taxes	513		341
Prepaid debt fees	394		397
Prepaid and other current assets	9,094		7,692
Other Current Assets	$	32,841	$	31,504

XML

Other Long-Term Assets (Tables)

6 Months Ended

Jun. 30, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets, Noncurrent

Other long-term assets consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Convertible 2022 note hedge asset	$	54,490	$	46,680
Convertible 2021 note hedge asset	54,858		46,915
Cash surrender value of life insurance policies	1,956		1,991
Deferred financing fees	595		787
Long-term installment receivables	311		475
Long-term deferred taxes	403		518
Investments	90		103
Other	436		107
Other Long-Term Assets	$	113,139	$	97,576

XML

Property And Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property and equipment consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Machinery and equipment	$	301,334		$	307,244
Land, buildings and improvements	77,760			78,522
Leasehold improvements	8,955			9,947
Furniture and fixtures	9,974			10,264
Property and Equipment, gross	398,023			405,977
Less allowance for depreciation	(321,333		)	(325,961		)
Property and Equipment, net	$	76,690		$	80,016

XML

Intangibles (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Indefinite-Lived Intangible Assets

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

	June 30, 2018				December 31, 2017
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Customer lists	$	53,481	$	51,677	$	54,516	$	51,957
Trademarks	25,822		—		26,372		—
Developed technology	7,808		6,635		7,925		6,636
Patents	5,529		5,524		5,566		5,559
License agreements	1,133		1,133		1,187		1,187
Other	1,162		1,146		1,162		1,145
Intangibles	$	94,935	$	66,115	$	96,728	$	66,484

Schedule of Finite-Lived Intangible Assets

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

	June 30, 2018				December 31, 2017
	Historical Cost		Accumulated Amortization		Historical Cost		Accumulated Amortization
Customer lists	$	53,481	$	51,677	$	54,516	$	51,957
Trademarks	25,822		—		26,372		—
Developed technology	7,808		6,635		7,925		6,636
Patents	5,529		5,524		5,566		5,559
License agreements	1,133		1,133		1,187		1,187
Other	1,162		1,146		1,162		1,145
Intangibles	$	94,935	$	66,115	$	96,728	$	66,484

XML

Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consist of accruals for the following (in thousands):

	June 30, 2018		December 31, 2017
Salaries and wages	$	28,912	$	33,390
Taxes other than income taxes, primarily Value Added Taxes	21,137		22,627
Warranty	18,891		22,468
Professional	5,336		5,203
Freight	3,970		4,002
Interest	3,915		3,919
Deferred revenue	3,092		2,770
Product liability, current portion	3,045		2,905
Derivative liabilities (foreign currency forward exchange contracts)	1,302		2,120
Severance	1,235		3,704
Rebates	1,203		5,831
Rent	707		808
Insurance	660		645
Supplemental Executive Retirement Program liability	391		391
Other items, principally trade accruals	7,696		7,914
Accrued Expenses	$	101,492	$	118,697

Schedule of Product Warranty Liability

The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands):

Balance as of January 1, 2018	$	22,468
Warranties provided during the period	3,663
Settlements made during the period	(7,503		)
Changes in liability for pre-existing warranties during the period, including expirations	263
Balance as of June 30, 2018	$	18,891

XML

Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Debt consists of the following (in thousands):

	June 30, 2018			December 31, 2017
Convertible senior notes at 5.00%, due in February 2021	$	126,217		$	122,355
Convertible senior notes at 4.50%, due in June 2022	92,509			89,675
Other notes and lease obligations	30,276			31,415
	249,002			243,445
Less current maturities of long-term debt	(1,676		)	(2,040		)
Long-Term Debt	$	247,326		$	241,405

Liability Components of Convertible 2021 Note

The liability components of the 2021 notes consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Principal amount of liability component	$	150,000		$	150,000
Unamortized discount	(20,637		)	(23,900		)
Debt fees	(3,146		)	(3,745		)
Net carrying amount of liability component	$	126,217		$	122,355

Liability Components of Convertible 2022 Note

The liability components of the 2022 notes consist of the following (in thousands):

	June 30, 2018			December 31, 2017
Principal amount of liability component	$	120,000		$	120,000
Unamortized discount	(23,991		)	(26,378		)
Debt fees	(3,500		)	(3,947		)
Net carrying amount of liability component	$	92,509		$	89,675

XML

Other Long-Term Obligations (Tables)

6 Months Ended

Jun. 30, 2018

Other Liabilities Disclosure [Abstract]

Other Noncurrent Liabilities

Other long-term obligations consist of the following (in thousands):

	June 30, 2018		December 31, 2017
Convertible 2021 debt conversion liability	$	61,136	$	53,154
Convertible 2022 debt conversion liability	61,061		53,414
Deferred income taxes	28,398		28,890
Product liability	14,189		13,575
Pension	10,347		10,340
Deferred gain on sale leaseback	6,273		6,419
Deferred compensation	5,610		5,592
Supplemental Executive Retirement Plan liability	5,556		5,636
Uncertain tax obligation including interest	2,905		2,738
Other	3,169		3,512
Other Long-Term Obligations	$	198,644	$	183,270

XML

Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Revenue Recognition, Multiple-deliverable Arrangements [Line Items]

Revenue Recognition, Multiple-deliverable Arrangements

The following tables disaggregate the company’s revenues by major source and by reportable segment for the three and six months endedJune 30, 2018 and June 30, 2017 (in thousands):

	Three Months Ended June 30, 2018
	Product		Service		Total
Europe	$	135,408	$	3,488	$	138,896
NA/HME	79,667		200		79,867
IPG	13,267		437		13,704
Asia/Pacific	12,494		1,191		13,685
Total	$	240,836	$	5,316	$	246,152
% Split	98%		2%		100%

	Six Months Ended June 30, 2018
	Product		Service		Total
Europe	$	263,410	$	6,800	$	270,210
NA/HME	159,238		411		159,649
IPG	27,775		816		28,591
Asia/Pacific	22,439		2,323		24,762
Total	$	472,862	$	10,350	$	483,212
% Split	98%		2%		100%

	Three Months Ended June 30, 2017
	Product		Service		Total
Europe	$	125,289	$	3,196	$	128,485
NA/HME	77,094		595		77,689
IPG	15,119		201		15,320
Asia/Pacific	10,875		1,148		12,023
Total	$	228,377	$	5,140	$	233,517
% Split	98%		2%		100%

	Six Months Ended June 30, 2017
	Product		Service		Total
Europe	$	242,079	$	5,914	$	247,993
NA/HME	160,730		1,221		161,951
IPG	31,357		336		31,693
Asia/Pacific	21,367		2,236		23,603
Total	$	455,533	$	9,707	$	465,240
% Split	98%		2%		100%

XML

Equity Compensation (Tables)

6 Months Ended

Jun. 30, 2018

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 SG&A expenses were as follows (in thousands):

	For the Six Months Ended June 30,
	2018			2017
Restricted stock / units	$	2,940		$	3,262
Performance shares / units	(27		)	905
Non-qualified and performance stock options	30			479
Total stock-based compensation expense	$	2,943		$	4,646

Schedule of Unrecognized Compensation Cost, Nonvested Awards

As of June 30, 2018, unrecognized compensation expense related to equity-based compensation arrangements granted under the company's 2018 Plan and previous plans, which is related to non-vested options and shares, was as follows (in thousands):

	June 30, 2018
Restricted stock and restricted stock units	$	9,899
Performance shares and performance share units	10,890
Non-qualified and performance stock options	2,472
Total unrecognized stock-based compensation expense	$	23,261

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes information about stock option activity for the six months ended June 30, 2018:

	June 30, 2018				Weighted Average Exercise Price
Options outstanding at January 1, 2018	2,631,569				$	19.44
Granted	—				—
Exercised	(183,349		)		14.28
Canceled	(155,200		)		23.49
Options outstanding at June 30, 2018	2,293,020				$	19.58
Options exercise price range at June 30, 2018	$	12.15		to	$	33.36
Options exercisable at June 30, 2018	1,693,244
Shares available for grant at June 30, 2018*	4,014,199

________

 * Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively

Schedule of Share-based Compensation, Stock Options Outstanding

The following table summarizes information about stock options outstanding at June 30, 2018:

	Options Outstanding				Options Exercisable
Exercise Prices	Number Outstanding at June 30, 2018	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable at June 30, 2018	Weighted Average Exercise Price
$ 12.15 – $20.00	887,935	7.6	$	12.82	288,159	$	14.23
$ 20.01 – $25.00	726,751	2.0	22.20		726,751	22.20
$ 25.01 – $30.00	673,838	1.2	25.56		673,838	25.56
$ 30.01 – $33.36	4,496	2.9	33.36		4,496	33.36
Total	2,293,020	3.8	$	19.58	1,693,244	$	22.21

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of options granted is estimated on the date of grant using a Black-Scholes option-pricing model. The calculated fair value of the 2017 performance option awards was $5.38 per option based on the following assumptions:

Expected dividend yield	0.4	%
Expected stock price volatility	39.1	%
Risk-free interest rate	2.31	%
Expected life in years	7.8

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

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

	June 30, 2018		Weighted Average Fair Value
Stock / Units unvested at January 1, 2018	776,520		$	13.75
Granted	367,327		17.51
Vested	(366,794	)	15.00
Canceled	(45,820	)	13.11
Stock / Units unvested at June 30, 2018	731,233		$	15.06

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):

	June 30, 2018		Weighted Average Fair Value
Shares / Units unvested at January 1, 2018	457,879		$	12.33
Granted	205,164		17.48
Vested	—		—
Canceled	(2,088	)	12.82
Shares / Units unvested at June 30, 2018	660,955		$	13.93

XML

Accumulated Other Comprehensive Income (Loss) by Component (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income ("OCI") for the three and six months endedJune 30, 2018 and June 30, 2017, respectively, were as follows (in thousands):

	Foreign Currency			Long-Term Notes			Defined Benefit Plans			Derivatives			Total
March 31, 2018	$	59,085		$	(1,505	)	$	(7,699	)	$	(1,379	)	$	48,502
OCI before reclassifications	(25,407		)	1,969			291			1,128			(22,019		)
Amount reclassified from accumulated OCI	—			—			(1		)	577			576
Net current-period OCI	(25,407		)	1,969			290			1,705			(21,443		)
June 30, 2018	$	33,678		$	464		$	(7,409	)	$	326		$	27,059

December 31, 2017	$	50,376		$	(4,612	)	$	(7,652	)	$	(1,242	)	$	36,870
OCI before reclassifications	(16,698		)	5,076			373			743			(10,506		)
Amount reclassified from accumulated OCI	—			—			(130		)	825			695
Net current-period OCI	(16,698		)	5,076			243			1,568			(9,811		)
June 30, 2018	$	33,678		$	464		$	(7,409	)	$	326		$	27,059

March 31, 2017	$	(28,352	)	$	20,474		$	(11,543	)	$	1,205		$	(18,216	)
OCI before reclassifications	37,163			(10,852		)	(480		)	(1,335		)	24,496
Amount reclassified from accumulated OCI	—			—			54			(301		)	(247		)
Net current-period OCI	37,163			(10,852		)	(426		)	(1,636		)	24,249
June 30, 2017	$	8,811		$	9,622		$	(11,969	)	$	(431	)	$	6,033

December 31, 2016	$	(26,199	)	$	17,372		$	(11,248	)	$	740		$	(19,335	)
OCI before reclassifications	35,010			(7,750		)	(985		)	(571		)	25,704
Amount reclassified from accumulated OCI	—			—			264			(600		)	(336		)
Net current-period OCI	35,010			(7,750		)	(721		)	(1,171		)	25,368
June 30, 2017	$	8,811		$	9,622		$	(11,969	)	$	(431	)	$	6,033

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Reclassifications out of accumulated OCI for the three and six months endedJune 30, 2018 and June 30, 2017 were as follows (in thousands):

	Amount reclassified from OCI												Affected line item in the Statement of Comprehensive (Income) Loss
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Defined Benefit Plans
Service and interest costs	$	(1	)	$	54		$	(130	)	$	264		Selling, General and Administrative
Tax	—			—			—			—			Income Taxes
Total after tax	$	(1	)	$	54		$	(130	)	$	264
Derivatives
Foreign currency forward contracts hedging sales	$	209		$	166		$	234		$	234		Net Sales
Foreign currency forward contracts hedging purchases	429			(481		)	680			(872		)	Cost of Products Sold
Total loss (income) before tax	638			(315		)	914			(638		)
Tax	(61		)	14			(89		)	38			Income Taxes
Total after tax	$	577		$	(301	)	$	825		$	(600	)

XML

Charges Related To Restructuring Activities (Tables)

6 Months Ended

Jun. 30, 2018

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 for the six months ended June 30, 2018 is as follows (in thousands):

	Severance			Contract Terminations			Total
December 31, 2017 Balances
NA/HME	$	2,439		$	167		$	2,606
Europe	249			134			383
Other	1,016			—			1,016
Total	3,704			301			4,005
Charges
NA/HME	97			—			97
Europe	293			—			293
Asia/Pacific	11			—			11
Total	401			—			401
Payments
NA/HME	(1,697		)	(57		)	(1,754		)
Europe	(338		)	(97		)	(435		)
Asia/Pacific	(11		)	—			(11		)
Other	(260		)	—			(260		)
Total	(2,306		)	(154		)	(2,460		)
March 31, 2018 Balances
NA/HME	839			110			949
Europe	204			37			241
Other	756			—			756
Total	1,799			147			1,946
Charges (Reversals)
NA/HME	124			(135		)	(11		)
Europe	108			—			108
Asia/Pacific	247			—			247
Total	479			(135		)	344
Payments
NA/HME	(601		)	66			(535		)
Europe	(195		)	(37		)	(232		)
Asia/Pacific	(247		)	—			(247		)
Total	(1,043		)	29			(1,014		)
June 30, 2018 Balances
NA/HME	362			41			403
Europe	117			—			117
Other	756			—			756
Total	$	1,235		$	41		$	1,276

XML

Net Earnings (Loss) Per Common Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated.

(In thousands except per share data)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Basic
Average common shares outstanding	33,169			32,833			33,040			32,654
Net loss	$	(16,543	)	$	(23,508	)	$	(30,651	)	$	(40,288	)
Net loss per common share	$	(0.50	)	$	(0.72	)	$	(0.93	)	$	(1.23	)
Diluted
Average common shares outstanding	33,169			32,833			33,040			32,654
Stock options and awards	827			360			827			293
Average common shares assuming dilution	33,996			33,193			33,867			32,947
Net loss	$	(16,543	)	$	(23,508	)	$	(30,651	)	$	(40,288	)
Net loss per common share *	$	(0.50	)	$	(0.72	)	$	(0.93	)	$	(1.23	)

________

* Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss.

XML

Derivatives (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

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

	June 30, 2018					December 31, 2017
	Notional Amount		Unrealized Net Gain (Loss)			Notional Amount		Unrealized Net Gain (Loss)
USD / AUD	$	2,580	$	161		$	3,960	$	44
USD / CAD	17,428		(80		)	33,344		115
USD / CNY	2,016		21			4,027		61
USD / EUR	40,266		851			72,259		(558		)
USD / GBP	2,468		(10		)	4,640		(124		)
USD / NZD	5,910		(105		)	9,300		11
USD / SEK	1,052		122			—		—
USD / MXP	3,279		(12		)	6,461		(158		)
EUR / GBP	16,722		(461		)	32,248		(682		)
EUR / SEK	3,802		145			7,732		39
EUR / NOK	2,289		(59		)	4,521		68
EUR / NZD	1,403		(10		)	2,855		(8		)
DKK / SEK	3,013		(156		)	6,453		(120		)
	$	102,228	$	407		$	187,800	$	(1,312	)

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

Foreign currency forward exchange contracts not qualifying or designated for hedge accounting treatment, as well as ineffective hedges, entered into in 2018 and 2017, respectively, and outstanding were as follows (in thousands USD):

	June 30, 2018					December 31, 2017
	Notional Amount		Gain (Loss)			Notional Amount		Gain (Loss)
AUD / USD	$	2,818	$	69		$	2,750	$	(77	)
EUR / USD	7,695		472			—		—
NZD / USD	—		—			3,300		(53		)
EUR / AUD	2,894		(87		)	4,000		43
AUD / NZD	2,439		(26		)	3,600		9
EUR / NOK	36		(1		)	—		—
	$	15,882	$	427		$	13,650	$	(78	)

Schedule of Derivatives Instruments Statements of Financial Position, Fair Value

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

	June 30, 2018				December 31, 2017
	Assets		Liabilities		Assets		Liabilities
Derivatives designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	$	1,596	$	1,189	$	678	$	1,990
Derivatives not designated as hedging instruments under ASC 815
Foreign currency forward exchange contracts	540		113		52		130
Total derivatives	$	2,136	$	1,302	$	730	$	2,120

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The effect of derivative instruments on Accumulated Other Comprehensive Income (OCI) and the Statement of Comprehensive Income (Loss) and was as follows (in thousands):

Derivatives in ASC 815 cash flow hedge relationships	Amount of Gain (Loss) Recognized  in Accumulated OCI on Derivatives (Effective Portion)			Amount of Gain (Loss) Reclassified from Accumulated  OCI into Income (Effective Portion)			Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective  Portion and Amount Excluded from Effectiveness Testing)
Three months ended June 30, 2018
Foreign currency forward exchange contracts	$	1,128		$	(577	)	$	—
Six months ended June 30, 2018
Foreign currency forward exchange contracts	$	743		$	(825	)	$	(1	)
Three months ended June 30, 2017
Foreign currency forward exchange contracts	$	(1,335	)	$	301		$	—
Six months ended June 30, 2017
Foreign currency forward exchange contracts	$	(571	)	$	600		$	—
Derivatives not designated as hedging instruments under ASC 815							Amount of Gain (Loss) Recognized in Income on Derivatives
Three months ended June 30, 2018
Foreign currency forward exchange contracts							$	197
Six months ended June 30, 2018
Foreign currency forward exchange contracts							$	427
Three months ended June 30, 2017
Foreign currency forward exchange contracts							$	52
Six months ended June 30, 2017
Foreign currency forward exchange contracts							$	117

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The fair values of the outstanding convertible note derivatives as of June 30, 2018 and their effect on the Statement of Comprehensive Income (Loss) were as follows (in thousands):

				Gain (Loss)						Gain (Loss)
	Fair Value			Three Months Ended						Six Months Ended
	June 30, 2018			June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Convertible 2021 debt conversion long-term liability	$	(61,136	)	$	(5,609	)	$	(8,250	)	$	(7,982	)	$	(1,519	)
Convertible 2022 debt conversion long-term liability	(61,061		)	(5,837		)	(4,392		)	(7,647		)	(4,392		)
Convertible 2021 note hedge long-term asset	54,858			5,896			7,789			7,943			1,959
Convertible 2022 note hedge long-term asset	54,490			5,571			3,802			7,810			3,802
Net fair value and net gain (loss) on convertible debt derivatives	$	(12,849	)	$	21		$	(1,051	)	$	124		$	(150	)

XML

Fair Values (Tables)

6 Months Ended

Jun. 30, 2018

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
	Level I	Level II			Level III
June 30, 2018
Forward exchange contracts—net	—	$	834		—
Convertible 2021 debt conversion liability	—	(61,136		)	—
Convertible 2021 note hedge asset	—	54,858			—
Convertible 2022 debt conversion liability	—	(61,061		)	—
Convertible 2022 note hedge asset	—	54,490			—
December 31, 2017
Forward exchange contracts—net	—	$	(1,390	)	—
Convertible 2021 debt conversion liability	—	(53,154		)	—
Convertible 2021 note hedge asset	—	46,915			—
Convertible 2022 debt conversion liability	—	(53,414		)	—
Convertible 2022 note hedge asset	—	46,680			—

Fair Value, by Balance Sheet Grouping

The carrying values and fair values of the company’s financial instruments are as follows (in thousands):

	June 30, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
Cash and cash equivalents	$	122,398		$	122,398		$	176,528		$	176,528
Other investments	90			90			103			103
Installment receivables, net of reserves	1,577			1,577			1,809			1,809
Long-term debt (including current maturities of long-term debt) *	(249,002		)	(319,103		)	(243,445		)	(294,173		)
Convertible 2021 debt conversion liability in Other Long-Term Obligations	(61,136		)	(61,136		)	(53,154		)	(53,154		)
Convertible 2021 note hedge in Other Long-Term Assets	54,858			54,858			46,915			46,915
Convertible 2022 debt conversion liability in Other Long-Term Obligations	(61,061		)	(61,061		)	(53,414		)	(53,414		)
Convertible 2022 note hedge in Other Long-Term Assets	54,490			54,490			46,680			46,680
Forward contracts in Other Current Assets	2,136			2,136			730			730
Forward contracts in Accrued Expenses	(1,302		)	(1,302		)	(2,120		)	(2,120		)

________

* The company's long-term debt is shown net of discount and fees associated with the Convertible Senior Notes due 2021 and 2022 on the company's condensed consolidated balance sheet. Accordingly, the fair values of the Convertible Senior Notes due 2021 and 2022 are included in the long-term debt presented in this table is also shown net of the discount and fees.

XML

Business Segments (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

(in thousands)	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2018			2017			2018			2017
Revenues from external customers
Europe	$	138,896		$	128,485		$	270,210		$	247,993
NA/HME	79,867			77,689			159,649			161,951
IPG	13,704			15,320			28,591			31,693
Asia/Pacific	13,685			12,023			24,762			23,603
Consolidated	$	246,152		$	233,517		$	483,212		$	465,240
Intersegment revenues
Europe	$	4,877		$	3,738		$	8,734		$	7,413
NA/HME	23,804			21,050			47,307			43,145
IPG	229			975			318			1,743
Asia/Pacific	5,254			3,896			10,914			7,756
Consolidated	$	34,164		$	29,659		$	67,273		$	60,057
Restructuring charges before income taxes
Europe	$	108		$	514		$	401		$	1,204
NA/HME	(11		)	3,928			86			6,170
Asia/Pacific	247			545			258			896
Consolidated	$	344		$	4,987		$	745		$	8,270
Operating income (loss)
Europe	$	5,171		$	7,077		$	11,765		$	12,177
NA/HME	(8,420		)	(12,395		)	(16,558		)	(21,821		)
IPG	1,163			1,472			2,761			3,370
Asia/Pacific	1,570			(118		)	2,542			(548		)
All Other	(5,901		)	(6,735		)	(11,674		)	(11,245		)
Charge expense related to restructuring activities	(344		)	(4,987		)	(745		)	(8,270		)
Consolidated operating loss	(6,761		)	(15,686		)	(11,909		)	(26,337		)
Net gain (loss) on convertible debt derivatives	21			(1,051		)	124			(150		)
Net Interest expense	(6,828		)	(4,596		)	(13,541		)	(9,026		)
Loss before income taxes	$	(13,568	)	$	(21,333	)	$	(25,326	)	$	(35,513	)

Revenue from External Customer [Line Items]

Revenue from External Customers by Products and Services [Table Text Block]

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Europe
Lifestyle	$	69,621	$	64,128	$	137,612	$	125,932
Mobility and Seating	58,411		53,526		110,184		100,458
Respiratory Therapy	6,480		6,634		13,242		13,750
Other(1)	4,384		4,197		9,172		7,853
	$	138,896	$	128,485	$	270,210	$	247,993
NA/HME
Lifestyle	$	31,573	$	31,045	$	62,207	$	63,294
Mobility and Seating	31,063		27,170		60,228		54,061
Respiratory Therapy	16,959		18,826		36,691		43,309
Other(1)	272		648		523		1,287
	$	79,867	$	77,689	$	159,649	$	161,951
Institutional Products Group
Continuing Care	$	13,704	$	15,320	$	28,591	$	31,693
Asia/Pacific
Mobility and Seating	$	8,448	$	7,108	$	15,339	$	13,716
Lifestyle	2,736		2,637		5,001		4,873
Continuing Care	447		671		734		1,846
Respiratory Therapy	522		306		646		649
Other(1)	1,532		1,301		3,042		2,519
	$	13,685	$	12,023	$	24,762	$	23,603
Total Consolidated	$	246,152	$	233,517	$	483,212	$	465,240

  ________________________

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

XML

Operations Held For Sale Assets and Liabilities of Operations Held For Sale (Details)	6 Months Ended
	Jun. 30, 2018 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Costs Incurred During the Period	$ 2,892,000
Payments for Sale Costs	$ 2,366,000

XML

Discontinued Operations Narrative (Details)	6 Months Ended
	Jun. 30, 2018 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Expenses related to sale	$ 8,801,000
Expenses related to sale of business paid	$ 8,405,000

XML

Receivables (Narrative) (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) payment
Receivables [Abstract]
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	$ 47,000

XML

Receivables (Schedule of Accounts Receivable) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Accounts Receivable [Abstract]
Accounts Receivable, Gross	$ 143,696	$ 154,966
Customer Rebate Reserve	(10,527)	(18,747)
Allowance for Doubtful Accounts Receivable	(4,841)	(5,113)
Cash Discount Reserves	(3,173)	(4,252)
Returns and Allowances Reserve	(1,056)	(1,239)
Accounts Receivable, Net	$ 124,099	$ 125,615

XML

Receivables (Installment Recevables) (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Non-Impaired Financing Receivable, Related Allowance	$ 0	$ 0
Installment Receivables, Current	2,369,000	2,415,000
Installment Receivables, Long-Term	1,525,000	2,076,000
Total Installment Receivables	3,894,000	4,491,000
Unearned Interest	32,000	38,000
Unearned Interest - Noncurrent	0	0
Total Unearned Interest	(3,092,000)	(2,770,000)
Unearned Interest	32,000	38,000
Installment Receivables Net of Unearned Interest Current	2,337,000	2,377,000
Installment Receivables Net of Unearned Interest Noncurrent	1,525,000	2,076,000
Installment Receivables, Net of Unearned Interest	3,862,000	4,453,000
Allowance for doubtful accounts, current	(1,071,000)	(1,043,000)
Allowance for doubtful accounts, long-term	(1,214,000)	(1,601,000)
Allowance for doubtful accounts	(2,285,000)	(2,644,000)	$ (2,838,000)
Installment receivables, net	1,266,000	1,334,000
Installment receivables, net, long-term	311,000	475,000
Installment receivables, net	$ 1,577,000	$ 1,809,000

XML

Receivables (Rollforward of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Allowance for Doubtful Accounts [Roll Forward]
Balance as of beginning of period	$ 2,644	$ 2,838
Allowance for Loan and Lease Losses, Adjustments, Other	(102)	1,001
Direct write-offs charged against the allowance	(257)	(1,195)
Balance as of end of period	$ 2,285	$ 2,644

XML

Receivables (Installment Receivables by Class) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Total Installment Receivables
Non-Impaired installment receivables with no related allowance recorded	$ 889	$ 923
Impaired installment receivables with a related allowance recorded	3,005	3,568
Total installment receivables	3,894	4,491
Unpaid Principal Balance
Non-Impaired installment receivables with no related allowance recorded	857	885
Impaired installment receivables with a related allowance recorded	3,005	3,568
Total installment receivables	3,862	4,453
Non-Impaired Financing Receivable, Related Allowance	0	0
Related Allowance for Doubtful Accounts
Impaired installment receivables with a related allowance recorded	2,285	2,644
Interest Income Recognized
Non-Impaired installment receivables with no related allowance recorded	68	74
Impaired installment receivables with a related allowance recorded	0	0
Total installment receivables	68	74
U.S.
Total Installment Receivables
Impaired installment receivables with a related allowance recorded	3,005	3,566
Unpaid Principal Balance
Impaired installment receivables with a related allowance recorded	3,005	3,566
Related Allowance for Doubtful Accounts
Impaired installment receivables with a related allowance recorded	2,285	2,642
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	889	923
Impaired installment receivables with a related allowance recorded	0	2
Total installment receivables	889	925
Unpaid Principal Balance
Non-Impaired installment receivables with no related allowance recorded	857	885
Impaired installment receivables with a related allowance recorded	0	2
Total installment receivables	857	887
Non-Impaired Financing Receivable, Related Allowance	0	0
Related Allowance for Doubtful Accounts
Impaired installment receivables with a related allowance recorded	0	2
Interest Income Recognized
Non-Impaired installment receivables with no related allowance recorded	68	74
Impaired installment receivables with a related allowance recorded	0	0
Total installment receivables	$ 68	$ 74

XML

Receivables (Aging of Installment Receivables) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 889	$ 916
0-30 Days Past Due	0	6
31-60 Days Past Due	0	0
61-90 Days Past Due	0	0
90 Days Past Due	3,005	3,569
Total Installment Receivables Past Due	3,894	4,491
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	3,005	3,566
Total Installment Receivables Past Due	3,005	3,566
CANADA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	889	916
0-30 Days Past Due	0	6
31-60 Days Past Due	0	0
61-90 Days Past Due	0	0
90 Days Past Due	0	3
Total Installment Receivables Past Due	$ 889	$ 925

XML

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 60,481	$ 52,773
Raw materials	65,250	59,497
Work in process	10,875	9,663
Inventory, net	$ 136,606	$ 121,933

XML

Other Current Assets Components of Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Value added tax receivables	$ 15,914	$ 16,174
Service contracts	3,021	2,812
Derivatives (foreign currency forward exchange contracts)	2,136	730
Prepaid insurance	1,155	2,647
Prepaid inventory	614	711
Recoverable income taxes	513	341
Prepaid debt fees	394	397
Prepaid and other current assets	9,094	7,692
Other current assets	$ 32,841	$ 31,504

XML

Other Long-Term Assets Components of Other Long-Term Assets(Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Convertible 2022 note hedge asset	$ 54,858,000	$ 46,915,000
Convertible 2021 note hedge asset	54,490,000	46,680,000
Cash surrender value of life insurance policies	1,956,000	1,991,000
Deferred financing fees	595,000	787,000
Long-term installment receivables	311,000	475,000
Long-term deferred taxes	403,000	518,000
Investments	90,000	103,000
Other	436,000	107,000
Other Assets	$ 113,139,000	$ 97,576,000

XML

Property And Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 398,023	$ 405,977
Less allowance for depreciation	(321,333)	(325,961)
Property and equipment, net	76,690	80,016
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	301,334	307,244
Land, buildings and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	77,760	78,522
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,955	9,947
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,974	$ 10,264

XML

Intangibles (Narrative) (Details)	6 Months Ended
	Jun. 30, 2018 USD ($)
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 837,000
Minimum
Finite-Lived Intangible Assets [Line Items]
Finite-Lived intangible assets, useful life	1 year
Maximum
Finite-Lived Intangible Assets [Line Items]
Finite-Lived intangible assets, useful life	10 years
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Finite-Lived intangible assets, useful life	3 years

XML

Intangibles (Intangible Table) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	$ 94,935	$ 96,728
Accumulated Amortization	66,115	66,484
Customer lists
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	53,481	54,516
Accumulated Amortization	51,677	51,957
Developed technology
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	7,808	7,925
Accumulated Amortization	6,635	6,636
Patents
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	5,529	5,566
Accumulated Amortization	5,524	5,559
License agreements
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	1,133	1,187
Accumulated Amortization	1,133	1,187
Other
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	1,162	1,162
Accumulated Amortization	1,146	1,145
Trademarks
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Historical Cost	$ 25,822	$ 26,372

XML

Intangibles (Finite-Lived Intangible Asset Future Amortization Expense) (Details)	Jun. 30, 2018 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Future amortization expense, remainder of fiscal year	$ 1,672,000
Future amortization expense, 2019	1,264,000
Future amortization expense, 2020	194,000
Future amortization expense, 2021	194,000
Future amortization expense, 2022	194,000
Future amortization expense, 2023	$ 194,000

XML

Accrued Expenses Components of Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Salaries and wages	$ 28,912	$ 33,390
Taxes other than income taxes, primarily Value Added Taxes	21,137	22,627
Warranty	18,891	22,468
Professional	5,336	5,203
Freight	3,970	4,002
Interest	3,915	3,919
Deferred revenue	3,092	2,770
Product liability, current portion	3,045	2,905
Derivative liabilities (foreign currency forward exchange contracts)	1,302	2,120
Severance	1,235	3,704
Rebates	1,203	5,831
Rent	707	808
Insurance	660	645
Supplemental Executive Retirement Program liability	391	391
Other items, principally trade accruals	7,696	7,914
Accrued expenses	$ 101,492	$ 118,697

XML

Accrued Expenses Warranty Schedule (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Product Liability Contingency
Balance as of January 1, 2018	$ 22,468
Warranties provided during the period	3,663
Settlements made during the period	(7,503)
Changes in liability for pre-existing warranties during the period, including expirations	263
Balance as of June 30, 2018	$ 18,891

XML

Long-Term Debt (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017	Feb. 17, 2007
Debt Instrument [Line Items]
Long-term debt	$ 249,002,000	$ 243,445,000
Less current maturities of long-term debt	(1,676,000)	(2,040,000)
Long-term debt net of current maturities	247,326,000	241,405,000
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	150,000,000	150,000,000
Long-term debt	126,217,000	122,355,000
Debt Instrument, Unamortized Discount	(20,637,000)	(23,900,000)
Debt Instrument, Fee Amount	(3,146,000)	(3,745,000)
Debt Instrument, Net Carrying Amount	126,217,000	122,355,000
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	120,000,000	120,000,000
Long-term debt	92,509,000	89,675,000
Debt Instrument, Unamortized Discount	(23,991,000)	(26,378,000)
Debt Instrument, Fee Amount	(3,500,000)	(3,947,000)
Debt Instrument, Net Carrying Amount	92,509,000	89,675,000
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 4.125% February 2027
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 135,000,000
Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Long-term debt	$ 30,276,000	$ 31,415,000

XML

Long-Term Debt Components of Convertible Debt (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2017	Feb. 01, 2017	Feb. 17, 2007
Debt Instrument [Line Items]
Issuance of warrants	$ 0	$ 14,100,000	$ 12,376,000
Convertible 2022 note hedge asset	54,858,000			$ 46,915,000
Long-term debt	249,002,000			243,445,000
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	120,000,000			120,000,000
Issuance of warrants	$ 14,100,000	$ 14,100,000
Interest rate (as a percent)	4.50%
Unamortized discount	$ (23,991,000)			(26,378,000)
Long-term debt	92,509,000			89,675,000
Debt Instrument, Fee Amount	(3,500,000)			(3,947,000)
Debt Instrument, Net Carrying Amount	$ 92,509,000			89,675,000
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 4.125% February 2027
Debt Instrument [Line Items]
Debt Instrument, Face Amount						$ 135,000,000
Interest rate (as a percent)	4.125%
Principal amount of liability component	$ 0				$ 13,350,000
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member]
Debt Instrument [Line Items]
Convertible 2021 debt conversion liability	61,136,000			53,154,000
Debt Instrument, Face Amount	$ 150,000,000			150,000,000
Interest rate (as a percent)	5.00%
Unamortized discount	$ (20,637,000)			(23,900,000)
Long-term debt	126,217,000			122,355,000
Debt Instrument, Fee Amount	(3,146,000)			(3,745,000)
Debt Instrument, Net Carrying Amount	$ 126,217,000			$ 122,355,000

XML

Long-Term Debt Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2017	Feb. 01, 2017	Feb. 17, 2007
Debt Instrument [Line Items]
Convertible 2021 note hedge asset	$ 54,490,000		$ 54,490,000			$ 46,680,000
Convertible 2022 note hedge asset	54,858,000		54,858,000			46,915,000
Issuance of warrants			0	$ 14,100,000	$ 12,376,000
Payments for Repurchase of Common Stock			2,404,000	1,221,000
Amortization of debt fees			1,246,000	985,000
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 4.125% February 2027
Debt Instrument [Line Items]
Debt Instrument, Face Amount								$ 135,000,000
Principal amount of liability component	$ 0		$ 0				$ 13,350,000
Interest rate (as a percent)	4.125%		4.125%
Repurchase Price of Debentures, Percent of Principal Amount							100.00%
Write off of Deferred Debt Issuance Cost				207,000
Amortization of debt fees				311,000
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member]
Debt Instrument [Line Items]
Debt Instrument, Fee Amount	$ 5,966,000		$ 5,966,000
Debt Instrument, Face Amount	$ 150,000,000		$ 150,000,000			150,000,000
Interest rate (as a percent)	5.00%		5.00%
Last Reported Sales Price Period, Common Stock			20 days
Debt Instrument, Convertible, Threshold Consecutive Trading Days			30
Percent of the Applicable Conversion Price	130.00%		130.00%
Business Day Period			5 days
Debt Instrument, Convertible, Threshold Trading Days			10
Percent of the Product of the Last Reported Sale Price, Common Shares	98.00%		98.00%
Convertible Senior Notes, Percentage of Principal Required for Repurchase	100.00%		100.00%
Convertible Preferred Stock, Shares Issued upon Conversion	60.0492		60.0492
Convertible Debt, Conversion Rate of Commmon Shares, Principal	$ 1,000		$ 1,000
Debt Instrument, Convertible, Conversion Price	$ 16.65		$ 16.65
Convertible Debt Conversion Feature, Fair Value at Issuance	$ 34,480,000		$ 34,480,000
Convertible 2021 debt conversion liability	61,136,000		61,136,000			53,154,000
Convertible Debt Conversion Feature Gain (Loss)	5,609,000	$ 8,250,000	7,982,000	1,519,000
Convertible due 2021 - Bond Hedge, Fair Value at Issuance	27,975,000		27,975,000
Convertible Debt Note Hedge Gain (Loss)	$ 5,896,000	7,789,000	$ 7,943,000	1,959,000
Derivative, Price Risk Option Strike Price	$ 22.4175		$ 22.4175
Debt Instrument, Net Proceeds	$ 144,034,000		$ 144,034,000
Debt Instrument, Net Carrying Amount	126,217,000		126,217,000			122,355,000
Debt Instrument, Fee Amount	(3,146,000)		(3,146,000)			(3,745,000)
Payments for Repurchase of Common Stock			5,000,000
Derivative, Amount of Hedged Item	(15,600,000)		(15,600,000)
Debt Instrument, Unamortized Discount	$ (20,637,000)		$ (20,637,000)			(23,900,000)
Debt Instrument, Interest Rate, Effective Percentage	11.10%		11.10%
Debt Instrument, Non-Cash Interest Expense Recognized in the Period	$ 1,661,000	1,490,000	$ 3,263,000	2,928,000
Debt Instrument, Increase, Accrued Interest	1,875,000	1,875,000	3,750,000	3,750,000
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain]
Debt Instrument [Line Items]
Debt Instrument, Fee Amount	4,711,000		4,711,000
Debt Instrument, Face Amount	$ 120,000,000		$ 120,000,000			120,000,000
Interest rate (as a percent)	4.50%		4.50%
Last Reported Sales Price Period, Common Stock			20 days
Debt Instrument, Convertible, Threshold Consecutive Trading Days			30
Percent of the Applicable Conversion Price	130.00%		130.00%
Business Day Period			5 days
Debt Instrument, Convertible, Threshold Trading Days			10
Percent of the Product of the Last Reported Sale Price, Common Shares	98.00%		98.00%
Convertible Senior Notes, Percentage of Principal Required for Repurchase	100.00%		100.00%
Convertible Preferred Stock, Shares Issued upon Conversion	61.6095		61.6095
Convertible Debt, Conversion Rate of Commmon Shares, Principal	$ 1,000		$ 1,000
Debt Instrument, Convertible, Conversion Price	$ 16.23		$ 16.23
Convertible Debt Conversion Feature, Fair Value at Issuance	$ 28,859,000		$ 28,859,000
Convertible Debt 2022 Conversion Feature, Fair Value	61,061,000		61,061,000			53,414,000
Convertible Debt Conversion Feature Gain (Loss)	5,837,000	4,392,000	7,647,000	4,392,000
Convertible due 2022 - Bond Hedge, Fair Value at Issuance	24,780,000		24,780,000
Convertible Debt Note Hedge Gain (Loss)	$ 5,571,000	$ 3,802,000	$ 7,810,000	3,802,000
Derivative, Price Risk Option Strike Price	$ 21.4375		$ 21.4375
Issuance of warrants			$ 14,100,000	14,100,000
Debt Instrument, Net Proceeds	$ 115,289,000		115,289,000
Debt Instrument, Net Carrying Amount	92,509,000		92,509,000			89,675,000
Debt Instrument, Fee Amount	(3,500,000)		(3,500,000)			(3,947,000)
Derivative, Amount of Hedged Item	(10,680,000)		(10,680,000)
Debt Instrument, Unamortized Discount	$ (23,991,000)		$ (23,991,000)			$ (26,378,000)
Debt Instrument, Interest Rate, Effective Percentage	10.90%		10.90%
Debt Instrument, Non-Cash Interest Expense Recognized in the Period	$ 1,203,000		$ 2,387,000	212,000
Debt Instrument, Increase, Accrued Interest	$ 1,350,000		2,700,000	$ 255,000
Convertible Subordinated Debt | Convertible Senior Subordinated Debentures at 5.00% February 2021 [Domain]
Debt Instrument [Line Items]
Unamortized Financing Costs			$ 989,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Weighted average interest rate (as a percent)	4.78%		4.78%			4.84%
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement)
Debt Instrument [Line Items]
Borrowing capacity	$ 30,000,000		$ 30,000,000
Line of Credit, Covenant Compliance, Maximum Borrowing Capacity, Trade Receivables, Europe, Percent			85.00%
Minimum availability reserve	3,000,000		$ 3,000,000
Line of Credit Facility, Covenant Feature, Dominion Trigger	$ 3,375,000		$ 3,375,000
Line of Credit Facility, Covenant Feature, Dominion Trigger Maximum Percentage	12.50%		12.50%
Line of Credit Facility, Remaining Borrowing Capacity	$ 14,822,000		$ 14,822,000
Remaining borrowing capacity	$ 10,000,000		$ 10,000,000
Minimum required undrawn balance (as a percent)	11.25%		11.25%
Consecutive business days for minimum undrawn balance			5 days
Required undrawn balance, minimum	$ 3,000,000		$ 3,000,000
Interruption of material manufacturing facilities, period			10 days
Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement)
Debt Instrument [Line Items]
Borrowing capacity	100,000,000		$ 100,000,000
Additional increase in borrowing capacity available	25,000,000		$ 25,000,000
Percentage of domestic accounts receivable			85.00%
Percentage of eligible domestic inventory and in-transit inventory			70.00%
Percentage of net orderly liquidation value of domestic inventory			85.00%
Maximum value of net orderly liquidation value domestic inventory and in-transit inventory	4,000,000		$ 4,000,000
Net orderly liquidation value of domestic eligible machinery and equipment			85.00%
Additional amount of machinery and equipment	1,023,000		$ 1,023,000
Percentage of eligible Canadian accounts receivable			85.00%
Percentage of eligible Canadian inventory			70.00%
Percentage of net orderly liquidation value of eligible Canadian inventory			85.00%
Minimum availability reserve	5,000,000		$ 5,000,000
Line of Credit Facility, Current Borrowing Capacity	23,835,000		23,835,000
Line of Credit Facility, Covenant Feature, Dominion Trigger	11,250,000		11,250,000
LIne of Credit Facility, Covenant Feature Dominion Trigger for Five Consecutive Days	$ 12,500,000		$ 12,500,000
Minimum required undrawn balance (as a percent)	11.25%		11.25%
Line of Credit, Covenant Compliance, Consecutive Business Days for Undrawn_Balance			5 days
Required undrawn balance, minimum	$ 5,000,000		$ 5,000,000
Interruption of material manufacturing facilities, period			10 days
Letter of Credit
Debt Instrument [Line Items]
Line of Credit Facility, Fair Value of Amount Outstanding	3,126,000		$ 3,126,000			$ 2,945,000
Letter of Credit | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement)
Debt Instrument [Line Items]
Borrowing capacity	5,000,000		5,000,000
Letter of Credit | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement)
Debt Instrument [Line Items]
Borrowing capacity	25,000,000		25,000,000
Swing Line Loans | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement)
Debt Instrument [Line Items]
Borrowing capacity	2,000,000		2,000,000
Amount Available to Invacare Limited and Invacare Poirier SAS | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement)
Debt Instrument [Line Items]
Borrowing capacity	$ 15,000,000		$ 15,000,000
Base Rate | Revolving Credit Facility | Line of Credit | Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate			0.25%
Minimum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement)
Debt Instrument [Line Items]
Commitment fee percentage			0.25%
Minimum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement)
Debt Instrument [Line Items]
Commitment fee percentage			0.25%
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement)
Debt Instrument [Line Items]
Basis spread on variable rate			2.50%
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement)
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)
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)
Debt Instrument [Line Items]
Basis spread on variable rate			1.25%
Maximum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement)
Debt Instrument [Line Items]
Commitment fee percentage			0.375%
Maximum | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement)
Debt Instrument [Line Items]
Commitment fee percentage			0.375%
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (Europe Credit Agreement)
Debt Instrument [Line Items]
Basis spread on variable rate			3.00%
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit | Revolving Credit and Security Agreement (New Credit Agreement)
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)
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)
Debt Instrument [Line Items]
Basis spread on variable rate			1.75%

XML

Long-Term Debt Sale Leaseback Transactions (Details)	Jun. 30, 2018 USD ($)
Sale Leaseback Transaction [Line Items]
Sale Leaseback Transaction, Deferred Gain, Gross	$ 7,414,000

XML

Other Long-Term Obligations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Other Noncurrent Liabilities [Line Items]
Deferred income taxes	$ 28,398,000		$ 28,398,000		$ 28,890,000
Product liability	14,189,000		14,189,000		13,575,000
Pension	10,347,000		10,347,000		10,340,000
Deferred gain on sale leaseback	6,273,000		6,273,000		6,419,000
Deferred compensation	5,610,000		5,610,000		5,592,000
Supplemental Executive Retirement Plan liability	5,556,000		5,556,000		5,636,000
Uncertain tax obligation including interest	2,905,000		2,905,000		2,738,000
Other	3,169,000		3,169,000		3,512,000
Other Long-Term Obligations	198,644,000		198,644,000		183,270,000
Sale Leaseback Transaction, Deferred Gain, Gross	7,414,000		7,414,000
Sale Leaseback Transaction, Current Period Gain Recognized	71,000	$ 68,000	141,000	$ 136,000
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain]
Other Noncurrent Liabilities [Line Items]
Convertible 2022 debt conversion liability	61,061,000		61,061,000		53,414,000
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member]
Other Noncurrent Liabilities [Line Items]
Convertible 2021 debt conversion liability	$ 61,136,000		$ 61,136,000		$ 53,154,000

XML

Other Long-Term Obligations Convertible Senior Notes (Details) - Convertible Subordinated Debt - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Convertible Senior Notes at 5.00% February 2021 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 150,000,000	$ 150,000,000
Interest rate (as a percent)	5.00%
Convertible 2021 debt conversion liability	$ 61,136,000	53,154,000
Convertible Senior Notes at 4.50% February 2022 [Domain]
Debt Instrument [Line Items]
Convertible Debt 2022 Conversion Feature, Fair Value	61,061,000	53,414,000
Debt Instrument, Face Amount	$ 120,000,000	$ 120,000,000
Interest rate (as a percent)	4.50%

XML

Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	$ 246,152,000	$ 233,517,000	$ 483,212,000	$ 465,240,000
Net Revenue	100.00%	100.00%	100.00%	100.00%
Deferred Revenue	$ 3,092,000		$ 3,092,000		$ 2,770,000
Product
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	$ 240,836,000	$ 228,377,000	$ 472,862,000	$ 455,533,000
Net Revenue	98.00%	98.00%	98.00%	98.00%
Service
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	$ 5,316,000	$ 5,140,000	$ 10,350,000	$ 9,707,000
Net Revenue	2.00%	2.00%	2.00%	2.00%
Europe
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	$ 138,896,000	$ 128,485,000	$ 270,210,000	$ 247,993,000
Europe | Product
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	135,408,000	125,289,000	263,410,000	242,079,000
Europe | Service
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	3,488,000	3,196,000	6,800,000	5,914,000
NA/HME
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	79,867,000	77,689,000	159,649,000	161,951,000
NA/HME | Product
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	79,667,000	77,094,000	159,238,000	160,730,000
NA/HME | Service
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	200,000	595,000	411,000	1,221,000
IPG
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	13,704,000	15,320,000	28,591,000	31,693,000
IPG | Product
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	13,267,000	15,119,000	27,775,000	31,357,000
IPG | Service
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	437,000	201,000	816,000	336,000
Asia/Pacific
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	13,685,000	12,023,000	24,762,000	23,603,000
Asia/Pacific | Product
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	12,494,000	10,875,000	22,439,000	21,367,000
Asia/Pacific | Service
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Net Sales	$ 1,191,000	$ 1,148,000	$ 2,323,000	$ 2,236,000
General Terms and Conditions
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Contract Type Sales Split			35.00%
Large National Customers
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Contract Type Sales Split			25.00%
Government Tenders
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Contract Type Sales Split			15.00%
Other Customers
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Contract Type Sales Split			25.00%

XML

Equity Compensation (Narrative) (Details)		6 Months Ended
		Jun. 30, 2018 votes $ / shares shares	Dec. 31, 2017 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Par or Stated Value Per Share | $ / shares		$ 0.25
Granted (in shares)		0
Period for recognition of unrecognized compensation costs		2 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net award activity (in shares)		2,684,726
Award vesting period		3 years
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Net award activity (in shares)		2,484,402
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%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares		$ 5.38
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		25.00%
Expiration period		10 years
Award vesting period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	[1]	4,014,199
Weighted Average | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition of unrecognized compensation costs		3 years
Class B Common Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Par or Stated Value Per Share | $ / shares		$ 0	$ 0
Common Stock, Number of Votes | votes		10
Common Stock, Difference in Dividend Rate		10.00%
Common Stock, Shares, Issued		6,357
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Par or Stated Value Per Share | $ / shares		$ 0	$ 0
Common Stock, Holders Percentage of Total Outstanding		99.90%

[1] *Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively.

XML

Equity Compensation Share-based Compensation Expense (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 2,943	$ 4,646
Restricted Stock and Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	2,940	3,262
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	(27)	905
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated Share-based Compensation Expense	$ 30	$ 479

XML

Equity Compensation Unrecognized Compensation Expense (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 23,261
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	2,472
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	10,890
Restricted Stock and Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 9,899

XML

Equity Compensation (Options Activity) (Details)	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at beginning of period (in shares) | shares	2,631,569
Granted (in shares) | shares	0
Excercised (in shares) | shares	(183,349)
Canceled (in shares) | shares	(155,200)
Options outstanding at end of period (in shares) | shares	2,293,020
Weighted Average Exercise Price
Options outstanding at beginning of period - Weighted Average Exercise Price (in dollars per share)	$ 19.44
Granted - Weighted Average Exercise Price (in dollars per share)	0
Excercised - Weighted Average Exercise Price (in dollars per share)	0
Canceled - Weighted Average Exercise Price (in dollars per share)	23.49
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share)	$ 19.58
Options exercisable at end of period (in shares) | shares	1,693,244
Stock Options
Weighted Average Exercise Price
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share)	$ 19.58
Options available for grant at end of period (in shares) | shares	4,014,199	[1]
$ 12.15 – $20.00
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, lower limit (in dollars per share)	$ 12.15
Exercise price range, upper limit (in dollars per share)	20.00
$ 12.15 – $20.00 | Stock Options
Weighted Average Exercise Price
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share)	12.82
$ 30.01 – $33.36
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price range, lower limit (in dollars per share)	30.01
Exercise price range, upper limit (in dollars per share)	33.36
$ 30.01 – $33.36 | Stock Options
Weighted Average Exercise Price
Options outstanding at end of period - Weighted Average Exercise Price (in dollars per share)	$ 33.36

[1] *Shares available for grant as of June 30, 2018 reduced by net restricted stock and restricted stock unit award and performance share and performance share unit award activity of 2,684,726 shares and 2,484,402 shares, respectively.

XML

Equity Compensation (Stock Options Outstanding by Exercise Price) (Details) - $ / shares	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 19.58	$ 19.44
$ 12.15 – $20.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise price range, lower limit (in dollars per share)	12.15
Exercise price range, upper limit (in dollars per share)	20.00
$ 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 share)	20.01
Exercise price range, upper limit (in dollars per share)	25.00
$ 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 share)	25.01
Exercise price range, upper limit (in dollars per share)	30.00
$ 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 share)	30.01
Exercise price range, upper limit (in dollars per share)	$ 33.36
Stock Options
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding - Number Outstanding at end of period (in shares)	2,293,020
Options Outstanding - Weighted Average Remaining Contractual Life	3 years 9 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 19.58
Options Exercisable - Number Exercisable At end of period (in shares)	1,693,244
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 22.21
Stock Options | $ 12.15 – $20.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding - Number Outstanding at end of period (in shares)	887,935
Options Outstanding - Weighted Average Remaining Contractual Life	7 years 7 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 12.82
Options Exercisable - Number Exercisable At end of period (in shares)	288,159
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 14.23
Stock Options | $ 20.01 – $25.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding - Number Outstanding at end of period (in shares)	726,751
Options Outstanding - Weighted Average Remaining Contractual Life	2 years
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 22.20
Options Exercisable - Number Exercisable At end of period (in shares)	726,751
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 22.20
Stock Options | $ 25.01 – $30.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding - Number Outstanding at end of period (in shares)	673,838
Options Outstanding - Weighted Average Remaining Contractual Life	1 year 2 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 25.56
Options Exercisable - Number Exercisable At end of period (in shares)	673,838
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 25.56
Stock Options | $ 30.01 – $33.36
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding - Number Outstanding at end of period (in shares)	4,496
Options Outstanding - Weighted Average Remaining Contractual Life	2 years 11 months
Options Outstanding - Weighted Average Exercise Price (in dollars per share)	$ 33.36
Options Exercisable - Number Exercisable At end of period (in shares)	4,496
Options Exercisable - Weighted Average Exercise Price (in dollars per share)	$ 33.36

XML

Equity Compensation Restricted Stock Activity (Details) - Restricted Stock and Restricted Stock Units (RSUs) - $ / shares	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	731,233	776,520
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 15.06	$ 13.75
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	367,327
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 17.51
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(366,794)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 15.00
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(45,820)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 13.11

XML

Equity Compensation Performance Share Activity (Details) - Performance Shares - $ / shares	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	660,955	457,879
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 13.93	$ 12.33
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	205,164
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 17.48
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 0.00
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(2,088)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 12.82

XML

Equity Compensation Assumptions (Details)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.40%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	39.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.31%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	7 years 9 months

XML

Accumulated Other Comprehensive Income (Loss) by Component (Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	$ 48,502	$ (18,216)	$ 36,870	$ (19,335)
OCI before reclassifications	(22,019)	24,496	(10,506)	25,704
Amount reclassified from accumulated OCI	576	(247)	695	(336)
Other Comprehensive Income (Loss)	(21,443)	24,249	(9,811)	25,368
Ending Balance	27,059	6,033	27,059	6,033
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	59,085	(28,352)	50,376	(26,199)
OCI before reclassifications	(25,407)	37,163	(16,698)	35,010
Amount reclassified from accumulated OCI	0	0	0	0
Other Comprehensive Income (Loss)	(25,407)	37,163	(16,698)	35,010
Ending Balance	33,678	8,811	33,678	8,811
Accumulated Long-Term Notes Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(1,505)	20,474	(4,612)	17,372
OCI before reclassifications	1,969	(10,852)	5,076	(7,750)
Amount reclassified from accumulated OCI	0	0	0	0
Other Comprehensive Income (Loss)	1,969	(10,852)	5,076	(7,750)
Ending Balance	464	9,622	464	9,622
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(7,699)	(11,543)	(7,652)	(11,248)
OCI before reclassifications	291	(480)	373	(985)
Amount reclassified from accumulated OCI	(1)	54	(130)	264
Other Comprehensive Income (Loss)	290	(426)	243	(721)
Ending Balance	(7,409)	(11,969)	(7,409)	(11,969)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning Balance	(1,379)	1,205	(1,242)	740
OCI before reclassifications	1,128	(1,335)	743	(571)
Amount reclassified from accumulated OCI	577	(301)	825	(600)
Other Comprehensive Income (Loss)	1,705	(1,636)	1,568	(1,171)
Ending Balance	$ 326	$ (431)	$ 326	$ (431)

XML

Accumulated Other Comprehensive Income (Loss) by Component (Reclassified Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net Sales	$ 246,152	$ 233,517	$ 483,212	$ 465,240
Cost of Products Sold	(178,806)	(168,495)	(349,349)	(335,073)
Amortization of prior service costs and unrecognized gains	(73,763)	(75,721)	(145,027)	(148,234)
Income tax provision	(2,975)	(2,175)	(5,325)	(4,775)
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of prior service costs and unrecognized gains	(1)	54	(130)	264
Income tax provision	0	0	0	0
Net loss from Continuing Operations	(1)	54	(130)	264
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income (Loss) from Continuing Operations before Income Taxes	638	(315)	914	(638)
Income tax provision	(61)	14	(89)	38
Net loss from Continuing Operations	577	(301)	825	(600)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency forward contracts
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net Sales	(209)	(166)	(234)	(234)
Cost of Products Sold	$ 429	$ (481)	$ 680	$ (872)

XML

Charges Related To Restructuring Activities (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Reserve [Roll Forward]
Beginning Balance	$ 1,946,000	$ 4,005,000		$ 4,005,000
Charges	344,000	401,000	$ 4,987,000	745,000	$ 8,270,000
Payments	1,014,000	2,460,000		3,474,000	4,800,000
Ending Balance	1,276,000	1,946,000		1,276,000
Severance
Restructuring Reserve [Roll Forward]
Beginning Balance	1,799,000	3,704,000		3,704,000
Charges	479,000	401,000
Payments	1,043,000	2,306,000
Ending Balance	1,235,000	1,799,000		1,235,000
Contract Termination
Restructuring Reserve [Roll Forward]
Beginning Balance	147,000	301,000		301,000
Charges		0
Restructuring Reserve, Accrual Adjustment	(135,000)
Payments	29,000	154,000
Ending Balance	41,000	147,000		41,000
NA/HME
Restructuring Reserve [Roll Forward]
Beginning Balance	949,000	2,606,000		2,606,000
Charges		97,000	$ 3,928,000	86,000	6,170,000
Restructuring Reserve, Accrual Adjustment	(11,000)
Payments	535,000	1,754,000
Ending Balance	403,000	949,000		403,000
NA/HME | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance	839,000	2,439,000		2,439,000
Charges	124,000	97,000			5,522,000
Payments	601,000	1,697,000
Ending Balance	362,000	839,000		362,000
NA/HME | Contract Termination
Restructuring Reserve [Roll Forward]
Beginning Balance	110,000	167,000		167,000
Charges		0			648,000
Restructuring Reserve, Accrual Adjustment	(135,000)
Payments	(66,000)	57,000
Ending Balance	41,000	110,000		41,000
Europe
Restructuring Reserve [Roll Forward]
Beginning Balance		383,000		383,000
Payments	232,000	435,000
Europe | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance		249,000		249,000
Charges	108,000
Payments	195,000	338,000
Europe | Contract Termination
Restructuring Reserve [Roll Forward]
Beginning Balance		134,000		134,000
Charges	0	0
Payments	37,000	97,000
Asia/Pacific
Restructuring Reserve [Roll Forward]
Charges	247,000	11,000
Payments	247,000	11,000
Asia/Pacific | Severance
Restructuring Reserve [Roll Forward]
Charges	247,000
Payments	247,000	11,000
Asia/Pacific | Contract Termination
Restructuring Reserve [Roll Forward]
Charges	0	0
Payments	0	0
All Other
Restructuring Reserve [Roll Forward]
Beginning Balance	756,000	1,016,000		1,016,000
Payments		260,000
Ending Balance	756,000	756,000		756,000
All Other | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance	756,000	1,016,000		1,016,000
Payments		260,000
Ending Balance	756,000	756,000		756,000
All Other | Contract Termination
Restructuring Reserve [Roll Forward]
Beginning Balance	0	0		0
Payments		0
Ending Balance	0	0		0
Europe
Restructuring Reserve [Roll Forward]
Beginning Balance	241,000
Ending Balance	117,000	241,000		117,000
Europe | Severance
Restructuring Reserve [Roll Forward]
Beginning Balance	204,000
Charges	108,000	293,000		401,000	$ 1,204,000
Ending Balance	117,000	204,000		117,000
Europe | Contract Termination
Restructuring Reserve [Roll Forward]
Beginning Balance	37,000
Ending Balance	$ 0	$ 37,000		$ 0

XML

Charges Related To Restructuring Activities Narrative (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Restructuring Cost and Reserve [Line Items]
Charges	$ 344,000	$ 401,000	$ 4,987,000	$ 745,000	$ 8,270,000
Restructuring and Related Activities, Expected Payout Period				12 months
Payments	(1,014,000)	(2,460,000)		$ (3,474,000)	(4,800,000)
Severance
Restructuring Cost and Reserve [Line Items]
Charges	479,000	401,000
Payments	(1,043,000)	(2,306,000)
Contract Termination
Restructuring Cost and Reserve [Line Items]
Charges		0
Restructuring Reserve, Accrual Adjustment	(135,000)
Payments	(29,000)	(154,000)
Europe
Restructuring Cost and Reserve [Line Items]
Payments	(232,000)	(435,000)
Europe | Severance
Restructuring Cost and Reserve [Line Items]
Charges	108,000
Payments	(195,000)	(338,000)
Europe | Contract Termination
Restructuring Cost and Reserve [Line Items]
Charges	0	0
Payments	(37,000)	(97,000)
Asia/Pacific
Restructuring Cost and Reserve [Line Items]
Charges	247,000	11,000
Payments	(247,000)	(11,000)
Asia/Pacific | Severance
Restructuring Cost and Reserve [Line Items]
Charges	247,000
Payments	(247,000)	(11,000)
Asia/Pacific | Contract Termination
Restructuring Cost and Reserve [Line Items]
Charges	0	0
Payments	0	0
NA/HME
Restructuring Cost and Reserve [Line Items]
Charges		97,000	3,928,000	86,000	6,170,000
Restructuring Reserve, Accrual Adjustment	(11,000)
Payments	(535,000)	(1,754,000)
NA/HME | Severance
Restructuring Cost and Reserve [Line Items]
Charges	124,000	97,000			5,522,000
Payments	(601,000)	(1,697,000)
NA/HME | Contract Termination
Restructuring Cost and Reserve [Line Items]
Charges		0			648,000
Restructuring Reserve, Accrual Adjustment	(135,000)
Payments	66,000	(57,000)
Europe | Severance
Restructuring Cost and Reserve [Line Items]
Charges	108,000	293,000		401,000	1,204,000
All Other
Restructuring Cost and Reserve [Line Items]
Payments		(260,000)
All Other | Severance
Restructuring Cost and Reserve [Line Items]
Payments		(260,000)
All Other | Contract Termination
Restructuring Cost and Reserve [Line Items]
Payments		0
Asia/Pacific
Restructuring Cost and Reserve [Line Items]
Charges	$ 247,000		$ 545,000	258,000	896,000
Asia/Pacific | Severance
Restructuring Cost and Reserve [Line Items]
Charges		$ 11,000		$ 258,000	$ 896,000

XML

Income Taxes (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Valuation Allowance [Line Items]
Effective income tax rate, continuing operations	(21.90%)	(10.20%)	(21.00%)	(13.40%)
U.S. statutory income tax rate			21.00%	35.00%

XML

Net Earnings (Loss) Per Common Share Computation of Basic and Diluted Net Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net Earnings (Loss) per Share—Basic
Average common shares outstanding		33,169	32,833	33,040	32,654
Net Loss		$ (16,543)	$ (23,508)	$ (30,651)	$ (40,288)
Net earnings (loss) per common share		$ (0.50)	$ (0.72)	$ (0.93)	$ (1.23)
Net Earnings (Loss) per Share—Assuming Dilution
Average common shares outstanding		33,169	32,833	33,040	32,654
Stock options and awards		827	360	827	293
Average common shares assuming dilution		33,996	33,193	33,867	32,947
Net Loss		$ (16,543)	$ (23,508)	$ (30,651)	$ (40,288)
Net earnings (loss) per per common share—assuming dilution (in dollars per share)	[1]	$ (0.50)	$ (0.72)	$ (0.93)	$ (1.23)

[1] Net loss per common share assuming dilution calculated utilizing weighted average shares outstanding-basic for the periods in which there was a net loss.

XML

Net Earnings (Loss) Per Common Share Textuals (Details) - Stock Options - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	329,315	1,353,144
Antidilutive share granted, average exercise price	$ 25.79	$ 25.79	$ 25.79	$ 25.79
Fair value stock price	$ 18.09	$ 13.14	$ 17.87	$ 12.57

XML

Concentration Of Credit Risk (Details)	Jun. 30, 2018 USD ($)
Risks and Uncertainties [Abstract]
Retained Recourse Obligation For Events Of Default Under Contracts	$ 2,088,000
Events of Default Under Contract by Third Party	$ 16,281,000

XML

Derivatives Notional Amounts - Designated as Hedges (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	$ 15,882	$ 13,650
Gain (Loss)	427	(78)
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	102,228	187,800
Unrealized Gain (Loss)	407	(1,312)
USD / AUD | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	2,580	3,960
Unrealized Gain (Loss)	161	44
USD / CAD | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	17,428	33,344
Unrealized Gain (Loss)	(80)	115
USD / CNY | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	2,016	4,027
Unrealized Gain (Loss)	21	61
USD / EUR | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	40,266	72,259
Unrealized Gain (Loss)	851	(558)
USD / GBP | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	2,468	4,640
Unrealized Gain (Loss)	(10)	(124)
USD / NZD | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	5,910	9,300
Unrealized Gain (Loss)	(105)	11
USD / SEK | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	1,052	0
Unrealized Gain (Loss)	122	0
USD / MXP | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	3,279	6,461
Unrealized Gain (Loss)	(12)	(158)
EUR / GBP | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	16,722	32,248
Unrealized Gain (Loss)	(461)	(682)
EUR / SEK | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	3,802	7,732
Unrealized Gain (Loss)	145	39
EUR / NOK | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	36	0
Gain (Loss)	(1)	0
EUR / NOK | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	2,289	4,521
Unrealized Gain (Loss)	(59)	68
EUR / NZD | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	1,403	2,855
Unrealized Gain (Loss)	(10)	(8)
DKK / SEK | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional Amount	3,013	6,453
Unrealized Gain (Loss)	$ (156)	$ (120)

XML

Derivatives Notional Amounts - Not Designated as Hedges (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Derivative [Line Items]
Notional Amount	$ 15,882		$ 15,882		$ 13,650
Gain (Loss)			427		(78)
Forward exchange contracts—net
Derivative [Line Items]
Gain (Loss)	197	$ 52	427	$ 117
AUD / USD
Derivative [Line Items]
Notional Amount	2,818		2,818		2,750
Gain (Loss)			69		(77)
EUR / USD
Derivative [Line Items]
Notional Amount	7,695		7,695		0
Gain (Loss)			472		0
NZD / USD
Derivative [Line Items]
Notional Amount	0		0		3,300
Gain (Loss)			0		(53)
EUR / AUD
Derivative [Line Items]
Notional Amount	2,894		2,894		4,000
Gain (Loss)			(87)		43
AUD / NZD
Derivative [Line Items]
Notional Amount	2,439		2,439		3,600
Gain (Loss)			(26)		9
EUR / NOK
Derivative [Line Items]
Notional Amount	$ 36		36		0
Gain (Loss)			$ (1)		$ 0

XML

Derivatives Balance Sheet Location (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Other Current Assets
Derivatives, Fair Value [Line Items]
Derivative assets	$ 2,136	$ 730
Other Current Assets | Foreign currency forward contracts | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	1,596	678
Other Current Assets | Foreign currency forward contracts | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative assets	540	52
Accrued Expenses
Derivatives, Fair Value [Line Items]
Derivative liabilities	1,302	2,120
Accrued Expenses | Foreign currency forward contracts | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	1,189	1,990
Accrued Expenses | Foreign currency forward contracts | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 113	$ 130

XML

Derivatives Gain (Loss) in Statement of Finacial Position (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss)	$ 638,000	$ (315,000)
Foreign currency forward contracts | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)	1,128,000	(1,335,000)	$ 743,000	$ (571,000)
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	(577,000)	301,000	(825,000)	600,000
Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	0	0	(1,000)	0
Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss)			427,000		$ (78,000)
Not Designated as Hedging Instrument [Member] | Foreign currency forward contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss)	$ 197,000	$ 52,000	$ 427,000	$ 117,000

XML

Derivatives Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2016	Dec. 31, 2017
Derivative [Line Items]
Convertible Debt 2022 Conversion Feature, Initial Fair Value	$ 28,859,000		$ 28,859,000
Proceeds from Issuance of Warrants			0	$ 14,100,000	$ 12,376,000
Foreign currency forward contracts
Derivative [Line Items]
Notional amount of derivatives, matured during period	50,475,000	$ 43,692,000
Selling, General and Administrative Expenses | Foreign currency forward contracts
Derivative [Line Items]
Gain recognized in income	197,000	52,000	$ 427,000	117,000
Minimum
Derivative [Line Items]
Derivative, percentage of forcasted transactions with currency rate exposure			50.00%
Maximum
Derivative [Line Items]
Derivative, percentage of forcasted transactions with currency rate exposure			90.00%
Cash Flow Hedging [Member]
Derivative [Line Items]
Gain (Loss)	(638,000)	315,000
Cash Flow Hedging [Member] | Sales [Member]
Derivative [Line Items]
Loss on derivative	(209,000)	(166,000)
Cash Flow Hedging [Member] | Cost of Sales [Member]
Derivative [Line Items]
Gain recognized in income		$ 481,000
Loss on derivative	(429,000)
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member]
Derivative [Line Items]
Convertible due 2021 - Bond Hedge, Initial Fair Value	27,975,000		$ 27,975,000
Convertible Debt Conversion Feature, Initial Fair Value	(34,480,000)		(34,480,000)
Debt Instrument, Face Amount	$ 150,000,000		$ 150,000,000			$ 150,000,000
Interest rate (as a percent)	5.00%		5.00%
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain]
Derivative [Line Items]
Proceeds from Issuance of Warrants			$ 14,100,000	$ 14,100,000
Convertible due 2022 - Bond Hedge, Fair Value at Issuance	$ 24,780,000		24,780,000
Debt Instrument, Face Amount	$ 120,000,000		$ 120,000,000			$ 120,000,000
Interest rate (as a percent)	4.50%		4.50%

XML

Derivatives Fair Value of Convertible Debt Hedges (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Convertible 2022 note hedge asset	$ 54,858,000		$ 54,858,000		$ 46,915,000
Convertible 2021 note hedge asset	54,490,000		54,490,000		46,680,000
Fair Values Convertible Debt Hedges, Net	(12,849,000)		(12,849,000)
Fair Values Convertible Debt Hedges, Gain (Loss)	21,000	$ (1,051,000)	124,000	$ (150,000)
Fair Value, Inputs, Level 2 | Convertible Debt Conversion Feature [Member] | Fair Value, Measurements, Recurring
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Convertible 2021 debt conversion liability	61,136,000		61,136,000		53,154,000
Fair Value, Inputs, Level 2 | Convertible Debt 2022 Conversion Feature [Domain] | Fair Value, Measurements, Recurring
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Convertible Debt Conversion Feature	(61,061,000)		(61,061,000)		(53,414,000)
Fair Value, Inputs, Level 2 | Convertible Debt Bond Hedge [Member] | Fair Value, Measurements, Recurring
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Convertible 2022 note hedge asset	54,858,000		54,858,000		46,915,000
Convertible 2021 note hedge asset	54,490,000		54,490,000		46,680,000
Convertible Subordinated Debt | Convertible Senior Notes at 4.50% February 2022 [Domain]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Convertible Debt Conversion Feature	(61,061,000)		(61,061,000)		(53,414,000)
Convertible Debt Conversion Feature Gain (Loss)	(5,837,000)	(4,392,000)	(7,647,000)	(4,392,000)
Convertible Debt Note Hedge Gain (Loss)	5,571,000	3,802,000	7,810,000	3,802,000
Convertible Subordinated Debt | Convertible Senior Notes at 5.00% February 2021 [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Convertible 2021 debt conversion liability	61,136,000		61,136,000		$ 53,154,000
Convertible Debt Conversion Feature Gain (Loss)	(5,609,000)	(8,250,000)	(7,982,000)	(1,519,000)
Convertible Debt Note Hedge Gain (Loss)	$ 5,896,000	$ 7,789,000	$ 7,943,000	$ 1,959,000

XML

Fair Values (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible 2022 note hedge asset	$ 54,858,000	$ 46,915,000
Convertible Debt Bond Hedge [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Convertible 2022 note hedge asset	54,858,000	46,915,000
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	834,000	(1,390,000)
Forward exchange contracts—net | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Convertible Debt Conversion Feature [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Convertible Debt Conversion Feature [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Convertible Debt Bond Hedge [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Convertible Debt Bond Hedge [Member] | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets (liabilities), at fair value, net	$ 0	$ 0

XML

Fair Values (Details of Book Value and Fair Value of Financial Instruments) (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible due 2021 - Bond Hedge	$ 54,858,000	$ 46,915,000
Cash and cash equivalents	122,398,000	176,528,000	$ 160,082,000	$ 124,234,000
Convertible 2021 note hedge asset	54,490,000	46,680,000
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	122,398,000	176,528,000
Other investments	90,000	103,000
Installment receivables, net of reserves	1,577,000	1,809,000
Long-term debt (including current maturities of long-term debt)	(249,002,000)	(243,445,000)
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	122,398,000	176,528,000
Other investments	90,000	103,000
Installment receivables, net of reserves	1,577,000	1,809,000
Long-term debt (including current maturities of long-term debt)	(319,103,000)	(294,173,000)
Convertible Debt 2022 Note Hedge [Domain] | Other Long-Term Assets [Member] | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	54,490,000	46,680,000
Convertible Debt 2022 Note Hedge [Domain] | Other Long-Term Assets [Member] | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	54,490,000	46,680,000
Convertible Debt 2021 Note Hedge [Domain] | Other Long-Term Assets [Member] | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	54,858,000	46,915,000
Convertible Debt 2021 Note Hedge [Domain] | Other Long-Term Assets [Member] | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	54,858,000	46,915,000
Convertible Debt 2022 Conversion Feature [Domain] | Other Debt Obligations [Member] | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	(61,061,000)	53,414,000
Convertible Debt 2022 Conversion Feature [Domain] | Other Debt Obligations [Member] | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	(61,061,000)	53,414,000
Foreign currency forward contracts | Other Current Assets | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	2,136,000	730,000
Foreign currency forward contracts | Other Current Assets | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	2,136,000	730,000
Foreign currency forward contracts | Accrued Expenses | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	(1,302,000)	(2,120,000)
Foreign currency forward contracts | Accrued Expenses | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	(1,302,000)	(2,120,000)
Convertible Debt Conversion Feature [Member] | Other Debt Obligations [Member] | Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	(61,136,000)	53,154,000
Convertible Debt Conversion Feature [Member] | Other Debt Obligations [Member] | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	(61,136,000)	53,154,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Foreign currency forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Convertible Debt 2022 Conversion Feature [Domain]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Convertible Debt Bond Hedge [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt 2022 Conversion Feature [Domain]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible Debt Conversion Feature	(61,061,000)	(53,414,000)
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Foreign currency forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets (liabilities), at fair value, net	834,000	(1,390,000)
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt Conversion Feature [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible 2021 debt conversion liability	61,136,000	53,154,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Convertible Debt Bond Hedge [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible due 2021 - Bond Hedge	54,858,000	46,915,000
Convertible 2021 note hedge asset	54,490,000	46,680,000
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Foreign currency forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Convertible Debt 2022 Conversion Feature [Domain]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets (liabilities), at fair value, net	0	0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Convertible Debt Bond Hedge [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets (liabilities), at fair value, net	$ 0	$ 0

XML

Business Segments (Information by Segment) (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenues	$ 246,152,000		$ 233,517,000	$ 483,212,000	$ 465,240,000
Restructuring Reserve	1,276,000	$ 1,946,000		1,276,000		$ 4,005,000
Net Sales	246,152,000		233,517,000	483,212,000	465,240,000
Charges	(344,000)	(401,000)	(4,987,000)	(745,000)	(8,270,000)
Operating Income (Loss)	(6,761,000)		(15,686,000)	(11,909,000)	(26,337,000)
Loss (gain) on Convertible Debt Derivatives	(21,000)		1,051,000	(124,000)	150,000
Interest Revenue (Expense), Net	(6,828,000)		(4,596,000)	(13,541,000)	(9,026,000)
Earnings (loss) before income taxes	(13,568,000)		(21,333,000)	(25,326,000)	(35,513,000)
Europe
Segment Reporting Information [Line Items]
Net Sales	138,896,000		128,485,000	270,210,000	247,993,000
Charges	(108,000)		(514,000)	(401,000)	(1,204,000)
Operating Income (Loss)	5,171,000		7,077,000	11,765,000	12,177,000
NA/HME
Segment Reporting Information [Line Items]
Restructuring Reserve	403,000	949,000		403,000		2,606,000
Restructuring Reserve, Accrual Adjustment	(11,000)
Net Sales	79,867,000		77,689,000	159,649,000	161,951,000
Charges		(97,000)	(3,928,000)	(86,000)	(6,170,000)
Operating Income (Loss)	(8,420,000)		(12,395,000)	(16,558,000)	(21,821,000)
IPG
Segment Reporting Information [Line Items]
Net Sales	13,704,000		15,320,000	28,591,000	31,693,000
Operating Income (Loss)	1,163,000		1,472,000	2,761,000	3,370,000
Asia/Pacific
Segment Reporting Information [Line Items]
Net Sales	13,685,000		12,023,000	24,762,000	23,603,000
Charges	(247,000)		(545,000)	(258,000)	(896,000)
Operating Income (Loss)	1,570,000		(118,000)	2,542,000	(548,000)
All Other
Segment Reporting Information [Line Items]
Restructuring Reserve	756,000	756,000		756,000		1,016,000
Operating Income (Loss)	(5,901,000)		(6,735,000)	(11,674,000)	(11,245,000)
Europe
Segment Reporting Information [Line Items]
Restructuring Reserve						383,000
Europe
Segment Reporting Information [Line Items]
Restructuring Reserve	117,000	241,000		117,000
Asia/Pacific
Segment Reporting Information [Line Items]
Charges	(247,000)	(11,000)
Operating Segments [Member] | NA/HME
Segment Reporting Information [Line Items]
Revenues	79,867,000		77,689,000	159,649,000	161,951,000
Operating Segments [Member] | Europe
Segment Reporting Information [Line Items]
Revenues	138,896,000		128,485,000	270,210,000	247,993,000
Operating Segments [Member] | Asia/Pacific
Segment Reporting Information [Line Items]
Revenues	13,685,000		12,023,000	24,762,000	23,603,000
Intersegment revenues
Segment Reporting Information [Line Items]
Net Sales	34,164,000		29,659,000	67,273,000	60,057,000
Intersegment revenues | Europe
Segment Reporting Information [Line Items]
Net Sales	4,877,000		3,738,000	8,734,000	7,413,000
Intersegment revenues | NA/HME
Segment Reporting Information [Line Items]
Net Sales	23,804,000		21,050,000	47,307,000	43,145,000
Intersegment revenues | IPG
Segment Reporting Information [Line Items]
Net Sales	229,000		975,000	318,000	1,743,000
Intersegment revenues | Asia/Pacific
Segment Reporting Information [Line Items]
Net Sales	5,254,000		3,896,000	10,914,000	7,756,000
Severance
Segment Reporting Information [Line Items]
Restructuring Reserve	1,235,000	1,799,000		1,235,000		3,704,000
Charges	(479,000)	(401,000)
Severance | NA/HME
Segment Reporting Information [Line Items]
Restructuring Reserve	362,000	839,000		362,000		2,439,000
Charges	(124,000)	(97,000)			(5,522,000)
Severance | Asia/Pacific
Segment Reporting Information [Line Items]
Charges		(11,000)		(258,000)	(896,000)
Severance | All Other
Segment Reporting Information [Line Items]
Restructuring Reserve	756,000	756,000		756,000		1,016,000
Severance | Europe
Segment Reporting Information [Line Items]
Restructuring Reserve						249,000
Charges	(108,000)
Severance | Europe
Segment Reporting Information [Line Items]
Restructuring Reserve	117,000	204,000		117,000
Charges	(108,000)	(293,000)		(401,000)	(1,204,000)
Severance | Asia/Pacific
Segment Reporting Information [Line Items]
Charges	(247,000)
Contract Termination
Segment Reporting Information [Line Items]
Restructuring Reserve	41,000	147,000		41,000		301,000
Restructuring Reserve, Accrual Adjustment	(135,000)
Charges		0
Contract Termination | NA/HME
Segment Reporting Information [Line Items]
Restructuring Reserve	41,000	110,000		41,000		167,000
Restructuring Reserve, Accrual Adjustment	(135,000)
Charges		0			(648,000)
Contract Termination | All Other
Segment Reporting Information [Line Items]
Restructuring Reserve	0	0		0		0
Contract Termination | Europe
Segment Reporting Information [Line Items]
Restructuring Reserve						$ 134,000
Charges	0	0
Contract Termination | Europe
Segment Reporting Information [Line Items]
Restructuring Reserve	0	37,000		0
Contract Termination | Asia/Pacific
Segment Reporting Information [Line Items]
Charges	0	$ 0
Lifestyle Products [Domain] | Operating Segments [Member] | NA/HME
Segment Reporting Information [Line Items]
Revenues	31,573,000		31,045,000	62,207,000	63,294,000
Lifestyle Products [Domain] | Operating Segments [Member] | Europe
Segment Reporting Information [Line Items]
Revenues	69,621,000		64,128,000	137,612,000	125,932,000
Lifestyle Products [Domain] | Operating Segments [Member] | Asia/Pacific
Segment Reporting Information [Line Items]
Revenues	2,736,000		2,637,000	5,001,000	4,873,000
Mobility and Seating [Domain] | Operating Segments [Member] | NA/HME
Segment Reporting Information [Line Items]
Revenues	31,063,000		27,170,000	60,228,000	54,061,000
Mobility and Seating [Domain] | Operating Segments [Member] | Europe
Segment Reporting Information [Line Items]
Revenues	58,411,000		53,526,000	110,184,000	100,458,000
Mobility and Seating [Domain] | Operating Segments [Member] | Asia/Pacific
Segment Reporting Information [Line Items]
Revenues	8,448,000		7,108,000	15,339,000	13,716,000
Respiratory Therapy [Domain] | Operating Segments [Member] | NA/HME
Segment Reporting Information [Line Items]
Revenues	16,959,000		18,826,000	36,691,000	43,309,000
Respiratory Therapy [Domain] | Operating Segments [Member] | Europe
Segment Reporting Information [Line Items]
Revenues	6,480,000		6,634,000	13,242,000	13,750,000
Respiratory Therapy [Domain] | Operating Segments [Member] | Asia/Pacific
Segment Reporting Information [Line Items]
Revenues	522,000		306,000	646,000	649,000
Other [Domain] | Operating Segments [Member] | NA/HME
Segment Reporting Information [Line Items]
Revenues	272,000		648,000	523,000	1,287,000
Other [Domain] | Operating Segments [Member] | Europe
Segment Reporting Information [Line Items]
Revenues	4,384,000		4,197,000	9,172,000	7,853,000
Other [Domain] | Operating Segments [Member] | Asia/Pacific
Segment Reporting Information [Line Items]
Revenues	1,532,000		1,301,000	3,042,000	2,519,000
Continuing Care [Domain] | Operating Segments [Member] | IPG
Segment Reporting Information [Line Items]
Revenues	13,704,000		15,320,000	28,591,000	31,693,000
Continuing Care [Domain] | Operating Segments [Member] | Asia/Pacific
Segment Reporting Information [Line Items]
Revenues	$ 447,000		$ 671,000	$ 734,000	$ 1,846,000