Lexmark 2011 Annual Report Download - page 125

Other
Cash paid for income taxes was $93.3 million, $77.4 million and $41.3 million in 2011, 2010 and 2009,
respectively.
15. STOCKHOLDERS’ EQUITY AND OTHER COMPREHENSIVE EARNINGS (LOSS)
The Class A Common Stock is voting and exchangeable for Class B Common Stock in very limited
circumstances. The Class B Common Stock is non-voting and is convertible, subject to certain
limitations, into Class A Common Stock.
At December 31, 2011, there were 805.6 million shares of authorized, unissued Class A Common
Stock. Of this amount, approximately 16 million shares of Class A Common Stock have been reserved
under employee stock incentive plans and nonemployee director plans. There were also 1.8 million of
unissued and unreserved Class B Common Stock at December 31, 2011. These shares are available
for a variety of general corporate purposes, including future public offerings to raise additional capital
and for facilitating acquisitions.
In May 2008, the Company received authorization from the Board of Directors to repurchase an
additional $750 million of its Class A Common Stock for a total repurchase authority of $4.65 billion. As
of December 31, 2011, there was approximately $240.9 million of share repurchase authority
remaining. This repurchase authority allows the Company, at management’s discretion, to selectively
repurchase its stock from time to time in the open market or in privately negotiated transactions
depending upon market price and other factors. During 2011, the Company repurchased approximately
7.9 million shares at a cost of approximately $250 million through two accelerated share repurchase
agreements discussed below. The Company did not repurchase any shares of its Class A Common
Stock in 2010 or 2009. As of December 31, 2011, since the inception of the program in April 1996, the
Company had repurchased approximately 99.6 million shares for an aggregate cost of approximately
$4.41 billion. As of December 31, 2011, the Company had reissued approximately 0.5 million shares of
previously repurchased shares in connection with certain of its employee benefit programs. As a result
of these issuances as well as the retirement of 44.0 million, 16.0 million and 16.0 million shares of
treasury stock in 2005, 2006 and 2008, respectively, the net treasury shares outstanding at
December 31, 2011, were 23.0 million.
In December 2005, October 2006 and October 2008, the Company received authorization from the
Board of Directors to retire 44.0 million, 16.0 million and 16.0 million shares, respectively, of the
Company’s Class A Common Stock held in the Company’s treasury as treasury stock. The retired
shares resumed the status of authorized but unissued shares of Class A Common Stock.
Accelerated Share Repurchase Agreements
The Company executed two accelerated share repurchase (“ASR”) agreements with financial
institution counterparties in 2011, resulting in a total of 7.9 million shares repurchased at a cost of $250
million over the third and fourth quarter of 2011. The impact of the two ASRs is included in the share
repurchase totals provided in the preceding paragraphs. The details of each ASR are provided in the
following paragraphs.
On July 28, 2011, the Company entered into an ASR Agreement with a financial institution
counterparty. Under the terms of the ASR Agreement, the Company paid $125.0 million targeting
3.7 million shares based on an initial price of $33.90. On August 2, 2011, the Company took delivery of
85% of the shares, or 3.1 million shares. The final number of shares delivered by the counterparty
under the ASR Agreement was dependent on the average, volume weighted average price of the
121