Retirement and Benefit Plans |
12 Months Ended |
|---|---|
Dec. 31, 2016 | |
| Compensation and Retirement Disclosure [Abstract] | |
| Retirement and Benefit Plans | Retirement and Benefit Plans Substantially all full-time salaried and hourly domestic employees are included in the Invacare Retirement Savings Plan sponsored by the company. The company makes matching cash contributions up to 66.7% of employees’ contributions up to 3% of compensation. The company also makes quarterly contributions to this Plan equal to a percentage of qualified wages. In 2016, quarterly contributions were made at 1% of qualified wages. The company may make discretionary contributions to the domestic plans based on an annual resolution of the Board of Directors. Contribution expense for the Invacare Retirement Savings Plan in 2016, 2015 and 2014 was $2,335,000, $2,573,000 and $2,698,000, respectively. The company sponsors a Deferred Compensation Plus Plan covering certain employees, which provides for elective deferrals and the company retirement deferrals so that the total retirement deferrals equal amounts that would have contributed to the company’s principal retirement plans if it were not for limitations imposed by income tax regulations. The company sponsors a non-qualified defined benefit Supplemental Executive Retirement Plan (SERP) for certain key executives. Effective December 31, 2008, the SERP was amended, in part to comply with IRS Section 409A. As a result of the amendment, the plan became a defined benefit cash balance plan for the non-retired participants and thus, future payments by the company will be made based upon a cash balance formula with interest credited at a rate determined annually by the Compensation and Management Development Committee of the Board of Directors. In 2016 interest was credited at 0% for active participants in the SERP. The plan continues to be unfunded with individual hypothetical accounts maintained for each participant. The SERP projected benefit obligation related to this unfunded plan was $6,003,000 and $6,209,000 at December 31, 2016 and 2015, respectively, and the accumulated benefit obligation was $6,003,000 and $6,209,000 at December 31, 2016 and 2015, respectively. The projected benefit obligations were calculated using an assumed future salary increase of 3.25% and 4.0% at December 31, 2016 and 2015, respectively. The assumed discount rate, relevant for three participants unaffected by the plan conversion was 4.14% and 4.34% for 2016 and 2015, respectively, based upon the discount rate on high-quality fixed-income investments without adjustment. The retirement age was 67 for 2016 and 67 for 2015. In addition, the mortality assumption was updated to the RP-2014 While Collar Fully Generational Mortality Table. Expense for the plan in 2016 was $1,073,000 compared to expense of $142,000 and in 2015 and 2014, respectively. The expense was comprised of interest expense of $908,000 in 2016, interest income of $42,000 in 2015 and interest expense of $377,000 in 2014 with the remaining portion related to service costs, prior service costs and other gains/losses. Benefit payments in 2016, 2015 and 2014 were $1,279,000, $21,517,000 and $394,000, respectively. The company also sponsors a Death Benefit Only Plan (DBO) for certain key executives that provides a benefit equal to three times the participant’s final target earnings should the participant’s death occur while an employee and a benefit equal to one times the participant’s final earnings upon the participant’s death after normal retirement or if a participant dies after his or her employment with the company is terminated following a change in control of the company. Income for the plan in 2016 was $121,000 compared to expense of $103,000 and $808,000 in 2015 and 2014, respectively. The expense was comprised of service and accrual adjustment income of $216,000 in 2016 compared to expense of $28,000 and $692,000 in 2015 and 2014, respectively, with the remaining portion related to interest costs in each year, respectively. In 2016, there were benefit payments of $761,000 and no benefit payments in 2015 or 2014. In conjunction with the company's DBO, the company has invested in life insurance policies related to certain employees to help satisfy the DBO obligations. In Europe, the company maintains two defined benefit plans in Switzerland. The statutory pension plans are maintained with a private insurance company and, in accordance with Swiss law, the plans function as defined contribution plans whereby employee and employer contributions are defined as a percentage of individual salary depending on the age of the employee and a guaranteed interest rate, which is annually defined by the Swiss Pension Fund. Under U.S. GAAP, the plans are treated as defined benefit plans. During 2014, the company terminated its defined benefit plan in the Netherlands which contained benefits and provisions for an Old Age Pension benefit that started at age 65 and were payable until death and a Survivors Pension that started immediately after the death of the insured and is payable until the death of the surviving spouse. Expense for the European plans was $1,004,000 in 2016 compared to income of $19,000 and $220,000 in 2015 and 2014, respectively. |