Lexmark 2011 Annual Report Download - page 30

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Terrorist acts, acts of war or other political conflicts may negatively impact the Company’s ability to
manufacture and sell its products.
• Terrorist attacks and the potential for future terrorist attacks have created many political and
economic uncertainties, some of which may affect the Company’s future operating results.
Future terrorist attacks, the national and international responses to such attacks, and other
acts of war or hostility may affect the Company’s facilities, employees, suppliers, customers,
transportation networks and supply chains, or may affect the Company in ways that are not
capable of being predicted presently.
Any variety of factors unrelated to the Company’s operating performance may negatively impact the
Company’s operating results or the Company’s stock price.
• Factors unrelated to the Company’s operating performance, including the financial failure or
loss of significant customers, resellers, manufacturing partners or suppliers; the outcome of
pending and future litigation or governmental proceedings; and the ability to retain and attract
key personnel, could also adversely affect the Company’s operating results. In addition, the
Company’s stock price, like that of other technology companies, can be volatile. Trading
activity in the Company’s common stock, particularly the trading of large blocks and intraday
trading in the Company’s common stock, may affect the Company’s common stock price.
Item 1B. UNRESOLVED STAFF COMMENTS
Not applicable.
Item 2. PROPERTIES
Lexmark’s corporate headquarters and principal development facilities are located on a 374 acre
campus in Lexington, Kentucky. At December 31, 2011, the Company owned or leased 6.1 million
square feet of administrative, sales, service, research and development, warehouse and manufacturing
facilities worldwide. Approximately 3.1 million square feet is located in the U.S. and the remainder is
located in various international locations. The Company’s principal international manufacturing facilities
are located in Mexico and the Philippines. The principal domestic manufacturing facility is located in
Colorado. The Company occupies facilities for development in the U.S., India, the Netherlands,
Germany and the Philippines. The Company owns approximately 75 percent of the worldwide square
footage and leases the remaining 25 percent. The leased property has various lease expiration dates.
The Company believes that it can readily obtain appropriate additional space as may be required at
competitive rates by extending expiring leases or finding alternative space. Included in the statements
above is 0.1 million square feet leased by Perceptive Software. Perceptive Software’s headquarters is
located in Shawnee, Kansas.
None of the property owned by Lexmark is held subject to any major encumbrances and the Company
believes that its facilities are in good operating condition.
Item 3. LEGAL PROCEEDINGS
The information required by this item is set forth in Note 19 of the “Notes to Consolidated Financial
Statements” contained in Item 8 of Part II of this report, and is incorporated herein by reference.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
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