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Lexmark International, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2008, 2007 and 2006
(In Millions)
2008 2007 2006
Cash flows from operating activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 240.2 $ 300.8 $ 338.4
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . 204.9 192.3 200.9
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31.0) (31.0) (21.9)
Stock-based compensation expense . . . . . . . . . . . . . . . . . . . . . 32.7 41.2 43.2
Tax shortfall from employee stock plans . . . . . . . . . . . . . . . . . . . (3.3) (0.3) (0.7)
Foreign exchange gain upon Scotland liquidation . . . . . . . . . . . . — (8.1) —
Gain on sale of facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.1) (3.5) —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 (9.4) 3.3
449.1 482.0 563.2
Change in assets and liabilities:
Trade receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150.5 5.5 66.6
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.1 (6.6) (48.6)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (80.1) 36.6 27.5
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (39.7) (7.4) 62.0
Other assets and liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23.8) 54.1 0.2
Net cash flows provided by operating activities . . . . . . . . . 482.1 564.2 670.9
Cash flows from investing activities:
Purchases of property, plant and equipment . . . . . . . . . . . . . . . . (217.7) (182.7) (200.2)
Purchases of marketable securities . . . . . . . . . . . . . . . . . . . . . . (744.4) (968.2) (1,406.2)
Proceeds from sales/maturities of marketable securities . . . . . . . 533.8 855.3 1,721.0
Proceeds from sale of facilities. . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 8.1 —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.9) 0.1 (1.9)
Net cash flows (used for) provided by investing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (427.6) (287.4) 112.7
Cash flows from financing activities:
Repayment of current portion of long term debt . . . . . . . . . . . . . (150.0) — —
Proceeds from issuance of long-term debt, net of issuance cost
of $4.1 in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 644.5 — —
Increase in short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7 — —
Issuance of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 0.1 0.5
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (554.5) (165.0) (871.0)
Proceeds from employee stock plans . . . . . . . . . . . . . . . . . . . . . 6.3 15.6 52.8
Tax windfall from employee stock plans . . . . . . . . . . . . . . . . . . . 1.1 3.9 12.5
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.2) (1.6) (3.5)
Net cash flows used for financing activities . . . . . . . . . . . . (48.1) (147.0) (808.7)
Effect of exchange rate changes on cash . . . . . . . . . . . . . . . . . . . (4.2) 2.6 1.4
Net change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . 2.2 132.4 (23.7)
Cash and cash equivalents — beginning of period . . . . . . . . . . . . . . . 277.0 144.6 168.3
Cash and cash equivalents — end of period . . . . . . . . . . . . . . . . . $ 279.2 $ 277.0 $ 144.6
See notes to consolidated financial statements.
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