Lexmark 2007 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2007 Lexmark annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 113

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113

12. STOCKHOLDERS’ EQUITY AND OTHER COMPREHENSIVE EARNINGS (LOSS)
The Class A Common Stock is voting and exchangeable for Class B Common Stock in very limited
circumstances. The Class B Common Stock is non-voting and is convertible, subject to certain limitations,
into Class A Common Stock.
At December 31, 2007, approximately 772.4 million and 1.8 million shares of Class A and Class B
Common Stock were unissued and unreserved. These shares are available for a variety of general
corporate purposes, including future public offerings to raise additional capital and for facilitating
acquisitions.
In January 2006, the Company received authorization from the board of directors to repurchase an
additional $1.0 billion of its Class A Common Stock for a total repurchase authority of $3.9 billion. As of
December 31, 2007, there was approximately $0.3 billion of share repurchase authority remaining. This
repurchase authority allows the Company, at management’s discretion, to selectively repurchase its stock
from time to time in the open market or in privately negotiated transactions depending upon market price
and other factors. During 2007, the Company repurchased approximately 2.7 million shares at a cost of
approximately $0.2 billion. As of December 31, 2007, since the inception of the program in April 1996, the
Company had repurchased approximately 74.1 million shares for an aggregate cost of approximately
$3.6 billion. As of December 31, 2007, the Company had reissued approximately 0.5 million shares of
previously repurchased shares in connection with certain of its employee benefit programs. As a result of
these issuances as well as the retirement of 44.0 million and 16.0 million shares of treasury stock in 2005
and 2006, respectively, the net treasury shares outstanding at December 31, 2007, were 13.6 million.
In December 2005 and October 2006, the Company received authorization from the board of directors to
retire 44.0 million and 16.0 million shares, respectively, of the Company’s Class A Common Stock currently
held in the Company’s treasury as treasury stock. The retired shares resumed the status of authorized but
unissued shares of Class A Common Stock. Refer to the Consolidated Statements of Stockholders’ Equity
and Comprehensive Earnings for the effects on Common stock,Capital in excess of par,Retained
earnings and Treasury stock from the retirement of the 44.0 million shares of Class A Common Stock in
2005 and 16.0 million shares of Class A Common Stock in 2006.
In 1998, the Company’s board of directors adopted a stockholder rights plan (the “Rights Plan”) which
provides existing stockholders with the right to purchase one one-thousandth (0.001) of a share of Series A
Junior Participating preferred stock for each share of Class A and Class B Common Stock held in the event
of certain changes in the Company’s ownership. The rights will expire on January 31, 2009, unless earlier
redeemed by the Company.
Comprehensive earnings (loss) for the years ended December 31, net of taxes, consists of the following:
2007 2006 2005
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300.8 $338.4 $356.3
Other comprehensive earnings (loss):
Foreign currency translation adjustment . . . . . . . . . . . . . . . . . . . . . . 22.5 22.3 (19.3)
Cash flow hedging, net of reclassifications (net of tax benefit
(liability) of $0.1 in 2007, $0.2 in 2006 and $(4.6) in 2005) . . . . . . (0.7) (6.4) 35.9
Minimum pension liability adjustments (net of tax (liability)
benefit of $(16.5) in 2006 and $8.2 in 2005) . . . . . . . . . . . . . . . . . — 26.9 (14.8)
SFAS 158 pension or other postretirement benefits, net of
reclassifications (net of tax (liability) of $(2.8) in 2007). . . . . . . . . . 17.5 — —
Net unrealized gain (loss) on marketable securities (net of tax
(liability) benefit of $(0.0) in 2007, $(0.1) in 2006 and $(0.0) in
2005) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 0.6 0.2
Comprehensive earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $340.1 $381.8 $358.3
78