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Forward-Looking Statements
This Annual Report on Form 10-K contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements, other than statements of historical fact, are forward-looking
statements. Forward-looking statements are made based upon information that is currently available
or management’s current expectations and beliefs concerning future developments and their potential
effects upon the Company, speak only as of the date hereof, and are subject to certain risks and
uncertainties. We assume no obligation to update or revise any forward-looking statements contained
or incorporated by reference herein to reflect any change in events, conditions or circumstances, or
expectations with regard thereto, on which any such forward-looking statement is based, in whole or in
part. There can be no assurance that future developments affecting the Company will be those anticipated
by management, and there are a number of factors that could adversely affect the Company’s future
operating results or cause the Company’s actual results to differ materially from the estimates or
expectations reflected in such forward-looking statements, including, without limitation, the factors set
forth under the title “Risk Factors” in Item 1A of this report. The information referred to above should be
considered by investors when reviewing any forward-looking statements contained in this report, in any of
the Company’s public filings or press releases or in any oral statements made by the Company or any of its
officers or other persons acting on its behalf. The important factors that could affect forward-looking
statements are subject to change, and the Company does not intend to update the factors set forth in the
“Risk Factors” section of this report. By means of this cautionary note, the Company intends to avail itself of
the safe harbor from liability with respect to forward-looking statements that is provided by Section 27A and
Section 21E referred to above.
Part I
Item 1. BUSINESS
General
Lexmark International, Inc., (“Lexmark” or the “Company”) is a Delaware corporation and the surviving
company of a merger between itself and its former parent holding company, Lexmark International Group,
Inc., (“Group”) consummated on July 1, 2000. Group was formed in July 1990 in connection with the
acquisition of IBM Information Products Corporation from International Business Machines Corporation
(“IBM”). The acquisition was completed in March 1991. On November 15, 1995, Group completed its initial
public offering of Class A Common Stock and Lexmark now trades on the New York Stock Exchange under
the symbol “LXK.”
Lexmark makes it easier for businesses of all sizes to move information between the digital and paper
worlds. Since its inception in 1991, Lexmark has become a leading developer, manufacturer and supplier
of printing and imaging solutions for the office. Lexmark’s products include laser printers, inkjet printers,
multifunction devices, dot matrix printers and associated supplies, services and solutions. Lexmark
develops and owns most of the technology for its laser and inkjet products and related solutions. The
Company operates in the office products industry. The Company is primarily managed along divisional
lines: the Printing Solutions and Services Division (“PSSD”) and the Imaging Solutions Division (“ISD”).
Refer to Part II, Item 8, Note 18 of the Notes to Consolidated Financial Statements for additional
information regarding the Company’s reportable segments.
Revenue derived from international sales, including exports from the United States of America (“U.S.”),
accounts for approximately 57% of the Company’s consolidated revenue, with Europe accounting for
approximately two-thirds of international sales. Lexmark’s products are sold in more than 150 countries in
North and South America, Europe, the Middle East, Africa, Asia, the Pacific Rim and the Caribbean. This
geographic diversity offers the Company opportunities to participate in new markets, provides
diversification to its revenue stream and operations to help offset geographic economic trends, and
utilizes the technical and business expertise of a worldwide workforce. Currency exchange rates had an
1