Lexmark 2011 Annual Report Download - page 129

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17. PENSION AND OTHER POSTRETIREMENT PLANS
Lexmark and its subsidiaries have defined benefit and defined contribution pension plans that cover
certain of its regular employees, and a supplemental plan that covers certain executives. Medical,
dental and life insurance plans for retirees are provided by the Company and certain of its
non-U.S. subsidiaries.
Defined Benefit Plans
The non-U.S. pension plans are not significant and use economic assumptions similar to the
U.S. pension plan and therefore are not shown separately in the following disclosures.
Obligations and funded status at December 31:
Pension Benefits
Other
Postretirement
Benefits
2011 2010 2011 2010
Change in Benefit Obligation:
Benefit obligation at beginning of year ..................... $778.5 $ 770.6 $ 43.2 $ 45.2
Service cost ........................................ 3.2 3.0 0.9 1.0
Interest cost ........................................ 38.6 40.5 1.8 2.2
Contributions by plan participants ....................... 3.6 2.4 3.2 3.8
Actuarial loss (gain) .................................. 52.1 26.9 (1.4) (1.7)
Benefits paid ........................................ (56.0) (60.0) (7.0) (7.3)
Foreign currency exchange rate changes ................ (2.2) (3.8) — —
Plan amendments or adjustments ....................... — 0.3 — —
Settlement, curtailment or special termination (gain) loss .... (0.5) (1.4) — —
Benefit obligation at end of year .......................... 817.3 778.5 40.7 43.2
Change in Plan Assets:
Fair value of plan assets at beginning of year ............... 616.0 605.9 — —
Actual return on plan assets ........................... (1.6) 63.4 — —
Contributions by the employer .......................... 26.6 5.2 3.8 3.5
Benefits paid ........................................ (56.0) (60.0) (7.0) (7.3)
Foreign currency exchange rate changes ................ (1.4) (3.2) — —
Plan adjustments .................................... — 2.3 — —
Contributions by plan participants ....................... 3.6 2.4 3.2 3.8
Fair value of plan assets at end of year .................... 587.2 616.0 — —
Unfunded status at end of year ........................... $(230.1) $(162.5) $(40.7) $(43.2)
Plan adjustments to Plan Assets during 2010 were related to a reimbursement in Germany of prior
year benefit payments.
For 2011 and 2010, the Settlement, curtailment or special termination (gain) loss in the table above
were primarily due to restructuring related activities in France.
Amounts recognized in the Consolidated Statements of Financial Position:
Pension Benefits
Other
Postretirement
Benefits
2011 2010 2011 2010
Noncurrent assets ................................... $ 3.2 $ 5.2 $ — $ —
Current liabilities ..................................... (1.2) (1.2) (4.4) (4.5)
Noncurrent liabilities .................................. (232.1) (166.5) (36.3) (38.7)
Net amount recognized ................................. $(230.1) $(162.5) $(40.7) $(43.2)
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