Lexmark 2010 Annual Report Download - page 28

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Terrorist acts, acts of war or other political conflicts may negatively impact the Company’s ability to
manufacture and sell its products.
• Terrorist attacks and the potential for future terrorist attacks have created many political and
economic uncertainties, some of which may affect the Company’s future operating results. Future
terrorist attacks, the national and international responses to such attacks, and other acts of war or
hostility may affect the Company’s facilities, employees, suppliers, customers, transportation
networks and supply chains, or may affect the Company in ways that are not capable of being
predicted presently.
Any variety of factors unrelated to the Company’s operating performance may negatively impact the
Company’s operating results or the Company’s stock price.
• Factors unrelated to the Company’s operating performance, including the financial failure or loss of
significant customers, resellers, manufacturing partners or suppliers; the outcome of pending and
future litigation or governmental proceedings; and the ability to retain and attract key personnel,
could also adversely affect the Company’s operating results. In addition, the Company’s stock price,
like that of other technology companies, can be volatile. Trading activity in the Company’s common
stock, particularly the trading of large blocks and intraday trading in the Company’s common stock,
may affect the Company’s common stock price.
Item 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
Item 2. PROPERTIES
Lexmark’s corporate headquarters and principal development facilities are located on a 374 acre campus
in Lexington, Kentucky. At December 31, 2010, the Company owned or leased 6.3 million square feet of
administrative, sales, service, research and development, warehouse and manufacturing facilities
worldwide. Approximately 3.1 million square feet is located in the U.S. and the remainder is located in
various international locations. The Company’s principal international manufacturing facilities are located
in Mexico and the Philippines. The principal domestic manufacturing facility is located in Colorado. The
Company occupies facilities for development in the U.S., India and the Philippines. The Company owns
approximately 76 percent of the worldwide square footage and leases the remaining 24 percent. The
leased property has various lease expiration dates. The Company believes that it can readily obtain
appropriate additional space as may be required at competitive rates by extending expiring leases or
finding alternative space. Included in the statements above is 0.1 million square feet leased by Perceptive
Software. Perceptive Software’s headquarters is located in Shawnee, Kansas.
None of the property owned by Lexmark is held subject to any major encumbrances and the Company
believes that its facilities are in good operating condition.
Item 3. LEGAL PROCEEDINGS
The information required by this item is set forth in Note 19 of the “Notes to Consolidated Financial
Statements” contained in Item 8 of Part II of this report, and is incorporated herein by reference.
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