Lexmark 2011 Annual Report Download - page 31

Part II
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
Lexmark’s Class A Common Stock is traded on the New York Stock Exchange under the symbol
“LXK.” As of February 17, 2012, there were 2,596 holders of record of the Class A Common Stock and
there were no holders of record of the Class B Common Stock. Information regarding the market prices
of the Company’s Class A Common Stock appears in Part II, Item 8, Note 22 of the Notes to
Consolidated Financial Statements.
Dividend Policy
On October 27, 2011, the Company’s Board of Directors declared its first dividend of $0.25 per share
on outstanding Class A Common Stock which was paid on November 30, 2011, to shareholders of
record as of the close of business on November 15, 2011. The quarterly rate represents an annualized
dividend of $1.00 per share.
On February 23, 2012, subsequent to the date of the financial statements, the Company’s Board of
Directors declared a quarterly dividend of $0.25 per share on outstanding Class A Common Stock. The
cash dividend will be paid on March 16, 2012, to shareholders of record as of the close of business on
March 5, 2012.
Going forward, the Company plans to return more than 50 percent of free cash flow (after operating
and capital investment needs) to its shareholders through dividends and share repurchases. The
Company anticipates paying dividends quarterly, though future declarations of dividends are subject to
Board of Directors’ approval and may be adjusted as business needs or market conditions change.
Issuer Purchases of Equity Securities
Period
Total
Number of
Shares
Purchased (2)
Average Price Paid
Per Share (2)
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs (2)
Approximate Dollar
Value of Shares That
May Yet Be
Purchased Under the
Plans or Programs
(In Millions) (1)(2)
October 1-31, 2011 ........ — $ — — $365.9
November 1-30, 2011 ...... 3,380,528 31.43 3,380,528 259.6
December 1-31, 2011 ...... 460,544 40.71 460,544 240.9
Total .................... 3,841,072 $32.54 3,841,072
(1) In May 2008, the Company received authorization from the Board of Directors to repurchase an additional $0.75 billion of its
Class A Common Stock for a total repurchase authority of $4.65 billion. As of December 31, 2011, there was approximately
$0.2 billion 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. For the three months ended December 31, 2011, the Company repurchased
approximately 3.8 million shares at a cost of $125 million through an accelerated share repurchase agreement (“ASR”)
described in the note immediately below. 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 $4.4 billion.
(2) On October 27, 2011, the Company entered into an accelerated share repurchase agreement with a financial institution
counterparty. Under the terms of the ASR, the Company paid $125 million targeting 4.0 million shares based on an initial
price of $31.43 per share. On November 1, 2011, the Company took delivery of 85% of the shares, or 3.4 million shares. On
December 21, 2011, the counterparty delivered 0.4 million additional shares in final settlement of the agreement, bringing
the total shares repurchased under the ASR to 3.8 million shares at an average price per share of $32.54.
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