Lexmark 2009 Annual Report Download - page 88

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Assets and (Liabilities) Measured at Fair Value on a Recurring Basis
Fair Value At
December 31,
2009
Quoted
Prices in
Active
Markets
(Level 1)
Other
Observable
Inputs
(Level 2)
Unobservable
Inputs
(Level 3)
Based on
Assets measured at fair value on a
recurring basis:
Available-for-sale marketable securities — ST . . $673.2 $261.6 $408.2 $ 3.4
Foreign currency derivatives
(1)
............. 0.2 — 0.2 —
Available-for-sale marketable securities — LT . . 22.0 — — 22.0
Total................................. $695.4 $261.6 $408.4 $25.4
Liabilities measured at fair value on a
recurring basis:
Foreign currency derivatives
(2)
............. 0.3 — 0.3 —
Total................................. $ 0.3 $ — $ 0.3 $ —
(1)
Foreign currency derivative assets are included in Prepaid expenses and other current assets on the Consolidated Statements of
Financial Position.
(2)
Foreign currency derivative liabilities are included in Accrued liabilities on the Consolidated Statements of Financial Position.
The fair values of the marketable securities above are disclosed by major security type in the table below.
Fair Value at
December 31,
2009
Quoted
Prices in
Active
Markets
(Level 1)
Other
Observable
Inputs
(Level 2)
Unobservable
Inputs
(Level 3)
Based on
Government & agency debt securities — ST . . . . . . . $271.9 $261.6 $ 10.3 $ —
Corporate debt securities — ST . . . . . . . . . . . . . . . . . 301.2 — 300.2 1.0
Asset-backed and mortgage-backed securities - ST . . 100.1 — 97.7 2.4
Auction rate securities — municipal debt — LT . . . . . . 18.6 — — 18.6
Auction rate securities — preferred — LT . . . . . . . . . . 3.4 — — 3.4
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $695.2 $261.6 $408.2 $25.4
Excluded from the 2009 tables above were financial instruments included in Cash and cash equivalents on
the Consolidated Statements of Financial Position. The Company’s policy is to consider all highly liquid
investments with an original maturity of three months or less at the Company’s date of purchase to be cash
equivalents. Investments considered cash equivalents included approximately $301.8 million of money
market funds, $34.7 million of agency discount notes and $1.1 million of corporate debt securities at
December 31, 2009. The amortized cost of these investments closely approximates fair value as
described in the Company’s policy above. Fair value of these instruments is readily determinable
using the methods described below for marketable securities or, in the case of money market funds,
based on the fair value per share (unit) determined and published as the basis for current transactions.
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