Lexmark 2011 Annual Report Download - page 143

The following is revenue by product category for the year ended December 31:
2011 2010 2009
Revenue:
Laser and inkjet printers (1) ................................ $ 989.0 $1,062.2 $ 938.8
Laser and inkjet supplies (2) ............................... 2,911.8 2,914.5 2,751.8
Software and other (3) .................................... 272.2 223.0 189.3
Total revenue ........................................... $4,173.0 $4,199.7 $3,879.9
1) Includes laser, inkjet, and dot matrix hardware and the associated features sold on a unit basis or through a managed
service agreement
2) Includes laser, inkjet, and dot matrix supplies and associated supplies services sold on a unit basis or through a managed
service agreement
3) Includes parts and service related to hardware maintenance and includes software licenses and the associated software
maintenance services sold on a unit basis or as a subscription service
21. SUBSEQUENT EVENTS
Effective January 18, 2012, Lexmark entered into a $350 million 5-year senior, unsecured,
multicurrency revolving credit facility that includes the availability of swingline loans and multicurrency
letters of credit. Under certain circumstances and subject to certain conditions, the aggregate amount
available under the facility may be increased to a maximum of $500 million. Interest on all borrowings
under the credit agreement is determined based upon either the Adjusted Base Rate or the Adjusted
LIBO Rate, in each case plus a margin that is adjusted on the basis of either of the Company’s
consolidated leverage ratio or the Company’s index debt rating. The credit agreement replaces the
Company’s current $300 million 3-year multicurrency revolving credit agreement entered into on
August 17, 2009.
After the close of the markets on January 31, 2012, the Company entered into an ASR Agreement with
a financial institution counterparty. Pursuant to the terms of the ASR Agreement, the Company will
purchase $30 million of the outstanding shares of its Class A Common Stock from the financial
institution counterparty. Under the ASR Agreement, the financial institution counterparty delivered to
the Company on February 3, 2012, 730,659 shares, equal to 85 percent of the shares that would be
repurchased at a price of $34.90, the closing price of the Company’s Class A Common Stock on
January 31, 2012. Upon delivery of these shares, the number of shares held in treasury increased from
23.0 million shares to 23.8 million shares. The final number of shares to be delivered to the Company
by the financial institution counterparty under the ASR Agreement shall be adjusted based on a
discount to the average of the daily volume weighted average price of the Company’s Class A
Common Stock during the term of the ASR Agreement. If the number of shares to be delivered to the
Company is less than the initial delivery of shares by the financial institution counterparty, the
Company may be required to remit shares or cash to the financial institution counterparty as a result of
such adjustment. The Company controls the election to deliver either additional shares or cash to the
counterparty. The share repurchases are expected to be completed during the first quarter of 2012.
The payment of $30 million by the Company to the financial institution counterparty for the repurchase
of shares was funded from available U.S. cash equivalents and current marketable securities.
On February 23, 2012, the Company’s Board of Directors approved a quarterly dividend of $0.25 per
share of Class A Common Stock. The dividend is payable March 16, 2012 to stockholders of record on
March 5, 2012.
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