Lexmark 2010 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2010 Lexmark annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 147

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147

11. GOODWILL AND INTANGIBLE ASSETS
Disclosures regarding goodwill and intangible assets have been omitted in prior years as the balances
were considered immaterial to the Company’s consolidated financial results. The Company is providing
these disclosures due to the increased levels of such assets, which were driven primarily by the acquisition
of Perceptive Software in the second quarter of 2010 as discussed in Note 4.
Goodwill
The following table summarizes the changes in the carrying amount of goodwill for each reportable
segment and in total during 2010.
For the twelve months ended December 31, 2010 ISS
Perceptive
Software Total
Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23.7 $ — $ 23.7
Goodwill acquired during the period . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8 159.6 161.4
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — —
Ending balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25.5 $159.6 $185.1
The Company has recorded $159.6 million of goodwill related to the acquisition of Perceptive Software in
2010, including the $5.0 million net impact of measurement period adjustments recorded subsequent to
the acquisition related to income taxes. Refer to Note 4 for additional details regarding business
combinations occurring in 2010. The Company does not have any accumulated impairment charges
as of December 31, 2010.
For purposes of comparison, the following table summarizes the changes in the carrying amount of
goodwill for each reportable segment and in total during 2009.
For the twelve months ended December 31, 2009 ISS
Perceptive
Software Total
Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12.9 $— $12.9
Goodwill acquired during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7 — 8.7
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 — 2.1
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23.7 $— $23.7
The goodwill acquired in the table above was related to the Company’s single business combination
occurring in 2009 described previously in Note 4.
100