Lexmark 2013 Annual Report Download - page 110

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The Company accounts for its internal-use software, an intangible asset by nature, in Property, plant and equipment, net on the
Consolidated Statements of Financial Position. Refer to Note 10 of the Notes to Consolidated Financial Statements for disclosures
regarding internal-use software.
12. ACCRUED LIABILITIES AND OTHER LIABILITIES
Accrued liabilities, in the current liabilities section of the Consolidated Statements of Financial Position, consisted of the following at
December 31:
2013 2012
Deferred revenue $ 175.0 $ 156.5
Compensation 161.5 108.8
Copyright fees 64.0 64.4
Marketing programs 70.8 54.6
Other 200.9 197.8
Accrued liabilities $ 672.2 $ 582.1
The $90.1 million increase in Accrued liabilities was primarily driven by a $52.7 million increase in compensation related accruals
which includes a $12.6 million legal accrual related to a legal resolution, refer to Note 19 of the Notes to Consolidated Financial
Statements for additional information, and approximately $39.6 million related to incentive based compensation accruals, due to
improved Company performance.
Changes in the Company’s warranty liability for standard warranties and deferred revenue for extended warranties are presented in the
tables below:
Warranty liability:
2013 2012
Balance at January 1 $ 46.7 $ 47.5
Accruals for warranties issued 62.6 74.2
Accruals related to pre-existing warranties (including
changes in estimates) (9.5) 12.6
Settlements made (in cash or in kind) (69.3) (87.6)
Balance at December 31 $ 30.5 $ 46.7
Deferred service revenue:
2013 2012
Balance at January 1 $ 192.0 $ 180.9
Revenue deferred for new extended warranty contracts 76.1 101.0
Revenue recognized (88.2) (89.9)
Balance at December 31 $ 179.9 $ 192.0
Current portion 80.3 81.6
Non-current portion 99.6 110.4
Balance at December 31 $ 179.9 $ 192.0
The table above includes separately priced extended warranty and product maintenance contracts. It does not include software and
other elements of the Company’s deferred revenue. The short-term portion of warranty and the short-term portion of extended
warranty are included in Accrued liabilities on the Consolidated Statements of Financial Position. Both the long-term portion of
warranty and the long-term portion of extended warranty are included in Other liabilities on the Consolidated Statements of Financial
Position. The split between the short-term and long-term portion of the warranty liability is not disclosed separately above due to
immaterial amounts in the long-term portion.
Other liabilities, in the noncurrent liabilities section of the Consolidated Statements of Financial Position, consisted of the following at
December 31:
106