Lexmark 2010 Annual Report Download - page 115

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On August 28, 2008, the Company entered into an accelerated share repurchase agreement with a
financial institution counterparty. Under the terms of the ASR, the Company paid $150.0 million targeting
4.1 million shares based on an initial price of $36.90. On September 3, 2008, the Company took delivery of
85% of the shares, or 3.5 million shares at a cost of $127.5 million. The final number of shares to be
delivered by the counterparty under the ASR was dependent on the average of the daily volume weighted
average price of the Company’s common stock over the agreement’s trading period, a discount, and the
initial number of shares delivered. Under the terms of the ASR, the Company would either receive
additional shares from the counterparty or be required to deliver additional shares or cash to the
counterparty to which the Company controlled its election to either deliver additional shares or cash to
the counterparty. On October 21, 2008, the counterparty delivered 1.2 million shares in final settlement of
the agreement, bringing the total shares repurchased under the ASR to 4.7 million at a total cost of
$150.0 million at an average price per share of $31.91.
On October 21, 2008, the Company entered into an accelerated share repurchase agreement with another
financial institution counterparty. Under the terms of the ASR, the Company paid $100.0 million targeting
3.9 million shares based on an initial price of $25.71. On October 24, 2008, the Company took delivery of
85% of the shares, or 3.3 million shares at a cost of $85.0 million. The final number of shares to be
delivered by the counterparty under the ASR was dependent on the average of the daily volume weighted
average price of the Company’s common stock over the agreement’s trading period, a discount, and the
initial number of shares delivered. Under the terms of the ASR, the Company would either receive
additional shares from the counterparty or be required to deliver additional shares or cash to the
counterparty to which the Company controlled its election to either deliver additional shares or cash to
the counterparty. On December 26, 2008, the counterparty delivered 0.7 million shares in final settlement
of the agreement, bringing the total shares repurchased under the ASR to 4.0 million at a total cost of
$100.0 million at an average price per share of $25.22.
Other Comprehensive Earnings (Loss)
Comprehensive earnings (loss) for the years ended December 31, net of taxes, consists of the following:
2010 2009 2008
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $340.0 $145.9 $ 240.2
Other comprehensive earnings (loss):
Foreign currency translation adjustment, net of reclassification (net
of tax (liability) benefit of $(0.9) in 2010, $(5.5) in 2009 and $5.5
in 2008) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.2 27.8 (63.4)
Pension or other postretirement benefits, net of reclassifications
(net of tax (liability) benefit of $(7.5) in 2010, $(14.6) in 2009 and
$80.0 in 2008) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 8.7 (124.0)
Net unrealized gain on OTTI marketable securities, net of
reclassifications (net of tax (liability) of $(0.4) in 2010 and $(0.3)
in 2009) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.1 —
Net unrealized gain (loss) on marketable securities, net of
reclassifications (net of tax benefit of $0.1 in 2010, $0.2 in 2009
and $0.4 in 2008). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 1.8 (1.3)
Comprehensive earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $359.1 $185.3 $ 51.5
Changes in the Company’s foreign currency translation adjustments were due to a number of factors as the
Company operates in various currencies throughout the world. The primary drivers of the favorable change
in 2010 were increases in the exchange rate values of 5.4% in the Philippine peso, 6.1% in the Mexican
peso, 5.0% in the Brazilian real, 14.0% in the Australian dollar, and 11.6% in the South African rand; these
increases were partially offset by a 6.5% decrease in the Euro exchange rate. The largest factor behind the
favorable movement in 2009 was the 32.7% increase in the Brazilian real exchange rate. The primary
109