Lexmark 2011 Annual Report Download - page 96

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At December 31, 2011, the fair values of the Company’s five-year and ten-year notes were estimated
to be $364.1 million and $332.5 million, respectively, based on the prices the bonds have recently
traded in the market as well as the overall market conditions on the date of valuation. The $696.6
million total fair value of the debt is not recorded on the Company’s Consolidated Statements of
Financial Position and is therefore excluded from the 2011 fair value table above. The total carrying
value of the senior notes, net of $0.7 million discount, was $649.3 million on the December 31, 2011
Consolidated Statements of Financial Position.
At December 31, 2010, the fair values of the Company’s five-year and ten-year notes were estimated
to be $373.1 million and $320.7 million, respectively, based on the prices the bonds have recently
traded in the market as well as the overall market conditions on the date of valuation. The $693.8
million total fair value of the debt is not recorded on the Company’s Consolidated Statements of
Financial Position and is therefore excluded from the 2010 fair value table above. The total carrying
value of the senior notes, net of $0.9 million discount, was $649.1 million on the December 31, 2010
Consolidated Statements of Financial Position.
Refer to Note 13 of the Notes to the Consolidated Financial Statements for additional information
regarding the senior notes.
Plan assets
Plan assets must be measured at least annually in accordance with accounting guidance on
employers’ accounting for pensions and employers’ accounting for postretirement benefits other than
pensions. The fair value measurement guidance requires that the valuation of plan assets comply with
its definition of fair value, which is based on the notion of an exit price and the maximization of
observable inputs. The fair value measurement guidance does not apply to the calculation of pension
and postretirement obligations since the liabilities are not measured at fair value.
Refer to Note 17 of the Notes to the Consolidated Financial Statements for disclosures regarding the
fair value of plan assets.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Subsequent to Initial
Recognition
2011
Fair Value Measurements Using
Fair value
Quoted prices in
active markets
(Level 1)
Other observable
inputs
(Level 2)
Unobservable
inputs
(Level 3)
Total gains
(losses)
YTD 2011
Long-lived assets held for
sale* ..................... $6.8 $— $— $6.8 $(5.9)
$(5.9)
* Pertains to measurements during the year ended December 31, 2011.
Certain assets were sold and derecognized in the third quarter of 2011.
There were no material fair value adjustments to assets or liabilities measured at fair value on a
nonrecurring basis subsequent to initial recognition during 2010.
Long-lived assets held for sale
Related to the April 2009 restructuring plan, the Company’s inkjet cartridge manufacturing facility in
Juarez, Mexico qualified as held for sale in the first quarter of 2010. During the first quarter of 2011, in
92