Lexmark 2011 Annual Report Download - page 69

The Company was in compliance with all covenants and other requirements set forth in its debt
agreements at December 31, 2011. The Company believes that it is reasonably likely that it will
continue to be in compliance with such covenants in the near future.
Off-Balance Sheet Arrangements
At December 31, 2011 and 2010, the Company did not have any off-balance sheet arrangements.
Contractual Cash Obligations
The following table summarizes the Company’s contractual obligations at December 31, 2011:
(Dollars in Millions) Total
Less than
1 Year
1-3
Years
3-5
Years
More than
5 Years
Long-term debt (1) ............................... $ 811 $ 41 $400 $40 $330
Operating leases ................................ 108 29 41 22 16
Purchase obligations ............................ 121 121 — — —
Uncertain tax positions ........................... 23 10 2 5 6
Other long-term liabilities (2) ....................... 23 7 4 — 12
Total contractual obligations ...................... $1,086 $208 $447 $67 $364
(1) includes interest payments
(2) includes current portion of other long-term liabilities
Long-term debt reported in the table above includes principal repayments of $350.0 million and
$300.0 million in the 1-3 Years and More than 5 Years columns, respectively. All other amounts
represent interest payments.
Purchase obligations reported in the table above include agreements to purchase goods or services
that are enforceable and legally binding on the Company and that specify all significant terms,
including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions;
and the approximate timing of the transaction.
Other long-term liabilities reported in the table above is made up of various items including asset
retirement obligations and restructuring reserves.
The Company’s funding policy for its pension and other postretirement plans is to fund minimum
amounts according to the regulatory requirements under which the plans operate. From time to time,
the Company may choose to fund amounts in excess of the minimum for various reasons. The
Company is currently expecting to contribute approximately $45 million to its pension and other
postretirement plans in 2012. The Company anticipates similar levels of funding for 2013 and 2014
based on factors that were present as of December 31, 2011. Actual future funding requirements
beyond 2012 will be impacted by various factors, including actual pension asset returns and interest
rates used for discounting future liabilities. The effect of any future contributions the Company may be
obligated or otherwise choose to make could be material to the Company’s future cash flows from
operations. Due to the uncertainty of future funding obligations, the table above contains no amounts
for pension and postretirement plan funding.
Waste Electrical and Electronic Equipment (“WEEE”) Directives issued by the European Union require
producers of electrical and electronic goods to be financially responsible for specified collection,
recycling, treatment and disposal of past and future covered products. The Company’s estimated
financial obligation related to WEEE Directives is not shown in the table above due to the lack of
historical data necessary to project future dates of payment. At December 31, 2011, the Company’s
estimated liability for this obligation was a current liability of $1.0 million and a long-term liability of
$19.3 million. These amounts were included in Accrued liabilities and Other liabilities, respectively, on
the Consolidated Statements of Financial Position.
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