Lexmark 2007 Annual Report Download - page 99

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19. SUBSEQUENT EVENTS
Refer to Part II, Item 8, Note 16 of the Notes to Consolidated Financial Statements for discussion of recent
developments regarding copyright fees.
In January 2008, a fire occurred in one of the Company’s sub-contracted distribution centers. While the
Company is still assessing what can be recovered, the Company believes it suffered a loss of inventory on
inkjet products in the range of $18 million to $25 million, substantially all of which was inkjet hardware.
Management believes that except for a $1 million deductible, this loss will be covered by insurance.
Although there could be some impact to the Company’s revenue in the first quarter of 2008 as it works to
restock the inventory, management currently does not believe that there will be a material adverse impact
to earnings in the first quarter due to this disruption.
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