Lexmark 2010 Annual Report Download - page 110

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the lenders, first priority security interests in the Company’s owned U.S. assets. The New Facility has a
maturity date of August 17, 2012.
Interest on all borrowings under the New Facility depends upon the type of loan, namely alternative base
rate borrowings, swingline loans or eurocurrency borrowings. Alternative base rate borrowings bear
interest at the greater of the prime rate, the federal funds rate plus one-half of one percent, or the adjusted
LIBO rate (as defined in the New Facility) plus one percent. Swingline loans (limited to $50 million) bear
interest at an agreed upon rate at the time of the borrowing. Eurocurrency loans bear interest at the sum of
(i) LIBOR for the applicable currency and interest period and (ii) the credit default swap spread as defined
in the New Facility subject to a floor of 2.5% and a cap of 4.5%. In addition, Lexmark is required to pay a
commitment fee on the unused portion of the New Facility of 0.40% to 0.75% based upon the Company’s
debt ratings. The interest and commitment fees are payable at least quarterly.
Short-term Debt
Lexmark’s Brazilian operation has a short-term, uncommitted line of credit. The interest rate on this line of
credit varies based upon the local prevailing interest rates at the time of borrowing. As of December 31,
2009 and 2010, there was no amount outstanding under this credit facility.
Other
Total cash paid for interest on the debt facilities amounted to $43.1 million, $42.5 million, and $26.9 million
in 2010, 2009, and 2008, respectively.
The components of Interest (income) expense, net in the Consolidated Statements of Earnings are as
follows:
2010 2009 2008
Interest (income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(15.6) $(17.9) $(35.0)
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41.9 39.3 28.9
Total.................................................... $26.3 $21.4 $ (6.1)
The Company capitalized interest costs of $2.1 million, $3.4 million, and $1.4 million in 2010, 2009 and
2008, respectively.
14. INCOME TAXES
Provision for Income Taxes
The Provision for income taxes consisted of the following:
2010 2009 2008
Current:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $54.9 $(22.6) $ 15.2
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.3 18.9 26.8
State and local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 1.2 5.6
88.3 (2.5) 47.6
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.8) 47.4 (24.8)
Non-U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 (7.1) 14.1
State and local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.2) 3.3 (1.2)
(6.8) 43.6 (11.9)
Provision for income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $81.5 $ 41.1 $ 35.7
104