Lexmark 2011 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 of the 2011 Lexmark annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 164

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

The $0.3 million credit loss in 2010 is made up of other-than-temporary impairment related to certain
asset-backed and mortgage-backed securities.
The $3.1 million credit loss in 2009 is made up of $0.6 million for other-than-temporary impairment
related to certain asset-backed and mortgage-backed securities, $1.2 million for other-than-temporary
impairment related to certain distressed corporate debt securities, and $1.3 million for other-than-
temporary impairment related to certain auction rate securities.
The table below presents a cumulative rollforward of the amount related to credit losses recognized in
earnings for other-than-temporary impairments:
Beginning balance of amounts related to credit losses, January 1, 2009 .................. $ —
Credit losses on debt securities for which OTTI was not previously recognized ............. 1.2
Additional credit losses on debt securities for which OTTI was previously recognized ....... 1.9
Ending balance of amounts related to credit losses, December 31, 2009 .................. $3.1
Credit losses on debt securities for which OTTI was not previously recognized ............. —
Additional credit losses on debt securities for which OTTI was previously recognized ....... 0.3
Reductions for securities sold in the period for which OTTI was previously recognized ...... (0.7)
Ending balance of amounts related to credit losses, December 31, 2010 .................. $2.7
Credit losses on debt securities for which OTTI was not previously recognized ............. —
Additional credit losses on debt securities for which OTTI was previously recognized ....... —
Reductions for securities sold in the period for which OTTI was previously recognized ...... (0.5)
Ending balance of amounts related to credit losses, December 31, 2011 .................. $2.2
The following table provides information, at December 31, 2011, about the Company’s marketable
securities with gross unrealized losses for which no other-than-temporary impairment has been
incurred, and the length of time that individual securities have been in a continuous unrealized loss
position. The gross unrealized loss of $4.1 million, pre-tax, is recognized in accumulated other
comprehensive income:
Less than 12 Months 12 Months or More Total
Fair Unrealized Fair Unrealized Fair Unrealized
Value Loss Value Loss Value Loss
Auction rate securities ............... $ — $ — $ 9.1 $(2.2) $ 9.1 $(2.2)
Corporate debt securities ............ 140.4 (1.4) — — 140.4 (1.4)
Asset-backed and mortgage-backed
securities ......................... 29.2 (0.1) 2.1 (0.3) 31.3 (0.4)
Government and Agency ............ 121.9 (0.1) — — 121.9 (0.1)
Total ............................. $291.5 $(1.6) $11.2 $(2.5) $302.7 $(4.1)
The following table provides information, at December 31, 2011, about the Company’s marketable
securities with gross unrealized losses for which other-than-temporary impairment has been incurred,
and the length of time that individual securities have been in a continuous unrealized loss position. The
gross unrealized loss of $0.1 million, pre-tax, is recognized in accumulated other comprehensive income:
Less than 12 Months 12 Months or More Total
Fair Unrealized Fair Unrealized Fair Unrealized
Value Loss Value Loss Value Loss
Corporate debt securities ............... $ — $— $0.1 $ — $0.1 $ —
Asset-backed and mortgage-backed
securities ............................ 0.3 — 0.1 (0.1) 0.4 (0.1)
Total ................................ $0.3 $— $0.2 $(0.1) $0.5 $(0.1)
108