Lexmark 2010 Annual Report Download - page 117
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Unvested restricted stock units with a performance condition that were granted in the first quarter of 2010
were included in the computation of diluted earnings per share due to the satisfaction of the performance
condition in 2010. However, a smaller number of unvested restricted stock units with a performance
condition were excluded from the computation of diluted earnings per share because the performance
condition had not been satisfied as of the reporting date. The number of restricted stock units excluded for
this reason were not material and are not included in the 7.2 million listed above.
In addition to the 9.1 million antidilutive shares for the year ended December 31, 2009 mentioned above,
unvested restricted stock units with a performance condition that were granted in the first quarter of 2009
were also excluded from the computation of diluted earnings per share. The performance period for these
awards ended on December 31, 2009. The Company’s assessment as of December 31, 2009 was that the
minimum level of achievement had not been met and as a result these awards were cancelled. Refer to
Note 6 to the Consolidated Financial Statements for additional information regarding restricted stock
awards with a performance condition.
Effective first quarter of 2009, unvested share-based payment awards that contain nonforfeitable rights to
dividends or dividend equivalents shall be considered participating securities and included in the
calculation of earnings per share pursuant to the two-class method in accordance with accounting
guidance for determining whether instruments granted in share-based payment transactions are
participating securities. There was no impact to the Company’s EPS because the terms of its share-
based payment awards do not contain nonforfeitable rights to dividends or dividend equivalents.
The Company executed two accelerated share repurchase agreements with financial institution
counterparties in 2008, resulting in a total of 8.7 million shares repurchased at a cost of $250.0 million
over the third and fourth quarter. The ASRs had a favorable impact to basic and diluted EPS in 2008.
17. PENSION AND OTHER POSTRETIREMENT PLANS
Lexmark and its subsidiaries have defined benefit and defined contribution pension plans that cover
certain of its regular employees, and a supplemental plan that covers certain executives. Medical, dental
and life insurance plans for retirees are provided by the Company and certain of its non-U.S. subsidiaries.
Defined Benefit Plans
The non-U.S. pension plans are not significant and use economic assumptions similar to the U.S. pension
plan and therefore are not shown separately in the following disclosures.
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