Lexmark 2007 Annual Report Download - page 85

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Accumulated other comprehensive (loss) earnings for the years ended December 31 consists of the
following:
Foreign
Currency
Translation
Adjustment
Cash Flow
Hedges
Minimum
Pension
Liability
Pension or
Other
Postretirement
Benefits
Net Unrealized
(Loss) Gain on
Marketable
Securities
Accumulated
Other
Comprehensive
(Loss) Earnings
Balance at 12/31/04 . . . . . . $ 4.1 $(28.8) $(139.8) $ — $(0.8) $(165.3)
2005 Change. . . . . . . . . . (19.3) 35.9 (14.8) — 0.2 2.0
Balance at 12/31/05 . . . . . . (15.2) 7.1 (154.6) — (0.6) (163.3)
2006 Change. . . . . . . . . . 22.3 (6.4) 26.9 — 0.6 43.4
Adoption of SFAS 158 . . . — — 127.7 (138.7) — (11.0)
Balance at 12/31/06 . . . . . . 7.1 0.7 — (138.7) — (130.9)
2007 Change. . . . . . . . . . 22.5 (0.7) — 17.5 — 39.3
Balance at 12/31/07 . . . . . . $ 29.6 $ — $ — $(121.2) $ — $ (91.6)
13. EARNINGS PER SHARE (“EPS”)
The following table presents a reconciliation of the numerators and denominators of the basic and diluted
net EPS calculations for the years ended December 31:
2007 2006 2005
Numerator:
Net earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300.8 $338.4 $356.3
Denominator:
Weighted average shares used to compute basic EPS . . . . . . . . . . . 95.3 102.8 121.0
Effect of dilutive securities — employee stock plans . . . . . . . . . . . . . 0.5 0.7 1.3
Weighted average shares used to compute diluted EPS . . . . . . . . . . 95.8 103.5 122.3
Basic net EPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.16 $ 3.29 $ 2.94
Diluted net EPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.14 $ 3.27 $ 2.91
RSUs and stock options totaling an additional 5.1 million, 5.3 million and 3.3 million of Class A Common
Stock in 2007, 2006 and 2005, respectively, were outstanding but were not included in the computation of
diluted net earnings per share because the effect would have been antidilutive.
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