Lexmark 2011 Annual Report Download - page 116

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classified as operating leases based on the terms of the arrangements. The accumulated depreciation
related to the Company’s leased products was $58.3 million and $43.2 million at year-end 2011 and
2010, respectively.
The Company accounts for its internal-use software, an intangible asset by nature, in Property, plant
and equipment, net on the Consolidated Statements of Financial Position. The net carrying amounts of
internal-use software at December 31, 2011 and 2010 were $236.9 million and $227.9 million,
respectively. The following table summarizes the estimated future amortization expense for
internal-use software currently being amortized.
Fiscal year:
2012 ........................................................................ $ 57.5
2013 ........................................................................ 52.0
2014 ........................................................................ 43.5
2015 ........................................................................ 22.8
2016 ........................................................................ 3.3
Thereafter ................................................................... —
Total ........................................................................ $179.1
The table above does not include future amortization expense for internal-use software that is not
currently being amortized because the assets are not ready for their intended use.
Accelerated depreciation and disposal of long-lived assets
The Company’s restructuring actions have resulted in shortened estimated useful lives of certain
machinery and equipment and buildings and subsequent disposal of machinery and equipment no
longer in use. Refer to Note 5 to the Consolidated Financial Statements for a discussion of these
actions and the impact on earnings.
Long-lived assets held for sale
Certain of the Company’s long-lived assets held for sale were subject to nonrecurring fair value
measurements during 2011. Refer to Notes 3 and 5 of the Notes to the Consolidated Financial
Statements for a discussion of these assets.
11. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following table summarizes the changes in the carrying amount of goodwill for each reportable
segment and in total during 2011 and 2010.
ISS
Perceptive
Software Total
Balance at January 1, 2010 ..................................... $23.7 $ — $ 23.7
Goodwill acquired during the period .............................. 1.8 161.8 163.6
Foreign currency translation ..................................... — — —
Balance at December 31, 2010 .................................. 25.5 161.8 187.3
Goodwill acquired during the period .............................. — 33.5 33.5
Foreign currency translation ..................................... (2.6) (1.8) (4.4)
Balance at December 31, 2011 .................................. $22.9 $193.5 $216.4
The Company has recorded $33.5 million of goodwill related to the acquisition of Pallas Athena in
2011. The Company has also recorded $161.8 million of goodwill related to the acquisition of
112