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Lexmark International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2007, 2006 and 2005
(In Millions)
2007 2006 2005
Cash flows from operating activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300.8 $ 338.4 $ 356.3
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . 192.3 200.9 158.5
Deferred taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31.0) (21.9) (22.3)
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . 41.2 43.2 4.1
Tax shortfall from employee stock plans . . . . . . . . . . . . . . . . . (0.3) (0.7) —
Tax benefits from employee stock plans . . . . . . . . . . . . . . . . . — — 15.8
Foreign exchange gain upon Scotland liquidation . . . . . . . . . . (8.1) — —
Gain on sale of Scotland facility . . . . . . . . . . . . . . . . . . . . . . . . (3.5) — —
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9.4) 3.3 34.7
482.0 563.2 547.1
Change in assets and liabilities:
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.5 66.6 93.5
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6.6) (48.6) 55.7
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36.6 27.5 (97.8)
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.4) 62.0 (134.7)
Other assets and liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 54.1 0.2 112.6
Net cash flows provided by operating activities . . . . . . . 564.2 670.9 576.4
Cash flows from investing activities:
Purchases of property, plant and equipment . . . . . . . . . . . . . . (182.7) (200.2) (201.3)
Purchases of marketable securities . . . . . . . . . . . . . . . . . . . . . (968.2) (1,406.2) (1,604.3)
Proceeds from sales/maturities of marketable securities . . . . . 855.3 1,721.0 1,824.7
Proceeds from sale of Scotland facility. . . . . . . . . . . . . . . . . . . 8.1 — —
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 (1.9) (14.2)
Net cash flows (used for) provided by investing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (287.4) 112.7 4.9
Cash flows from financing activities:
(Decrease) increase in short-term debt . . . . . . . . . . . . . . . . . . — — (1.5)
Issuance of treasury stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.5 0.5
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . (165.0) (871.0) (1,069.9)
Proceeds from employee stock plans . . . . . . . . . . . . . . . . . . . 15.6 52.8 37.0
Tax windfall from employee stock plans . . . . . . . . . . . . . . . . . . 3.9 12.5 —
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.6) (3.5) (3.0)
Net cash flows used for financing activities . . . . . . . . . . (147.0) (808.7) (1,036.9)
Effect of exchange rate changes on cash . . . . . . . . . . . . . . . . . 2.6 1.4 (2.3)
Net change in cash and cash equivalents. . . . . . . . . . . . . . . . . . . . 132.4 (23.7) (457.9)
Cash and cash equivalents — beginning of period . . . . . . . . . . . . . 144.6 168.3 626.2
Cash and cash equivalents — end of period . . . . . . . . . . . . . . . $ 277.0 $ 144.6 $ 168.3
See notes to consolidated financial statements.
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