Lexmark 2010 Annual Report Download - page 101

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The $3.1 million credit loss in 2009 is made up of $0.6 million for other-than-temporary impairment related
to asset-backed and mortgage-backed securities, $1.2 million for other-than-temporary impairment
related to certain distressed corporate debt securities, and $1.3 million for other-than-temporary
impairment related to certain auction rate securities.
The following table presents the amounts recognized in earnings for other-than-temporary impairments
related to credit losses for which a portion of total other-than-temporary impairment was recognized in
other comprehensive income:
Beginning balance of amounts related to credit losses, January 1, 2009 . . . . . . . . . . . . . . . . $ —
Credit losses on debt securities for which OTTI was not previously recognized . . . . . . . . . . . 1.2
Additional credit losses on debt securities for which OTTI was previously recognized. . . . . . . 1.9
Ending balance of amounts related to credit losses, December 31, 2009 . . . . . . . . . . . . . . . . $ 3.1
Credit losses on debt securities for which OTTI was not previously recognized . . . . . . . . . . . —
Additional credit losses on debt securities for which OTTI was previously recognized. . . . . . . 0.3
Reductions for securities sold in the period for which OTTI was previously recognized . . . . . . (0.7)
Ending balance of amounts related to credit losses, December 31, 2010 . . . . . . . . . . . . . . . . $ 2.7
The following table provides information, at December 31, 2010, about the Company’s marketable
securities with gross unrealized losses for which no other-than-temporary impairment has been
incurred, and the length of time that individual securities have been in a continuous unrealized loss
position. The gross unrealized loss of $3.6 million, pre-tax, is recognized in accumulated other
comprehensive income:
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Less than 12 Months 12 Months or More Total
Auction rate securities . . . . . . . . $ — $ — $15.9 $(2.4) $ 15.9 $(2.4)
Corporate debt securities . . . . . 183.7 (0.6) 5.4 — 189.1 (0.6)
Asset-backed and
mortgage-backed securities. . . . 30.9 (0.2) 3.8 (0.2) 34.7 (0.4)
Government and Agency. . . . . . 163.4 (0.2) — — 163.4 (0.2)
Total . . . . . . . . . . . . . . . . . . . . . $378.0 $(1.0) $25.1 $(2.6) $403.1 $(3.6)
The following table provides information, at December 31, 2010, about the Company’s marketable
securities with gross unrealized losses for which other-than-temporary impairment has been incurred,
and the length of time that individual securities have been in a continuous unrealized loss position. The
gross unrealized loss of $0.1 million, pre-tax, is recognized in accumulated other comprehensive income:
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Less than 12 Months 12 Months or More Total
Corporate debt securities . . . . . . . $— $— $0.1 $(0.1) $0.1 $(0.1)
Asset-backed and
mortgage-backed securities . . . . . — — 0.2 — 0.2 —
Total . . . . . . . . . . . . . . . . . . . . . . $— $— $0.3 $(0.1) $0.3 $(0.1)
95