Lexmark 2011 Annual Report Download - page 110

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For the years ended December 31, 2011, 2010 and 2009, the total fair value of RSUs and DSUs that
vested was $25.8 million, $15.0 million and $8.1 million, respectively. As of December 31, 2011, the
Company had $34.3 million of total unrecognized compensation expense, net of estimated forfeitures,
related to RSUs and DSUs that will be recognized over the weighted average period of 2.8 years.
7. MARKETABLE SECURITIES
The Company evaluates its marketable securities in accordance with authoritative guidance on
accounting for investments in debt and equity securities, and has determined that all of its investments
in marketable securities should be classified as available-for-sale and reported at fair value, with
unrealized gains and losses recorded in Accumulated other comprehensive loss. The fair values of the
Company’s available-for-sale marketable securities are based on quoted market prices or other
observable market data, discounted cash flow analyses, or in some cases, the Company’s amortized
cost which approximates fair value.
Money market funds included in Cash and cash equivalents on the Consolidated Statements of
Financial Position are excluded from the information contained in this Note. Refer to Note 3 of the
Notes to the Consolidated Financial Statements for information regarding these investments.
As of December 31, 2011, the Company’s available-for-sale Marketable securities had gross unrealized
gains and losses of $3.9 million and $4.2 million, respectively, and consisted of the following:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Auction rate securities — municipal debt ............. $ 8.7 $1.0 $(1.5) $ 8.2
Corporate debt securities ......................... 379.8 1.5 (1.4) 379.9
Gov’t and agency debt securities ................... 348.0 0.7 (0.1) 348.6
Asset-backed and mortgage-backed securities ....... 73.1 0.7 (0.5) 73.3
Total debt securities ............................. 809.6 3.9 (3.5) 810.0
Auction rate securities — preferred ................. 4.0 — (0.7) 3.3
Total security investments ........................ 813.6 3.9 (4.2) 813.3
Cash equivalents ................................ (8.5) — — (8.5)
Total marketable securities ........................ $805.1 $3.9 $(4.2) $804.8
At December 31, 2010, the Company’s available-for-sale Marketable securities consisted of the
following:
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Auction rate securities — municipal debt ............. $ 15.7 $0.7 $(1.9) $ 14.5
Corporate debt securities ......................... 494.0 2.7 (0.7) 496.0
Gov’t and agency debt securities ................... 369.6 0.5 (0.2) 369.9
Asset-backed and mortgage-backed securities ....... 88.9 0.7 (0.4) 89.2
Total debt securities ............................. 968.2 4.6 (3.2) 969.6
Auction rate securities — preferred ................. 4.0 — (0.5) 3.5
Total security investments ........................ 972.2 4.6 (3.7) 973.1
Cash equivalents ................................ (75.4) — — (75.4)
Total marketable securities ........................ $896.8 $4.6 $(3.7) $897.7
Although contractual maturities of the Company’s investment in debt securities may be greater than
one year, the majority of investments are classified as Current assets in the Consolidated Statements
106