Lexmark 2013 Annual Report Download - page 119

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Details about Accumulated Other
Comprehensive Earnings Components
Amount Reclassified
from Accumulated
Other
Comprehensive
(Loss) Earnings Affected Line Item in the Statements of Earnings
Foreign currency translation adjustment
Foreign exchange gain recognized upon
sale of a foreign entity $ 10.7 Gain on sale of inkjet-related technology and assets
Pension and other postretirement benefits
Amortization of prior service benefit 0.7 Note 17. Employee Pension and Postretirement Plans
Pension-related losses recognized upon
sale of a subsidiary (0.4) Gain on sale of inkjet-related technology and assets
(0.3) Tax benefit (liability)
$ – Net of tax
Unrealized gains and (losses) on
marketable securities
Marketable securities
Non-OTTI $ 1.2 Other expense (income), net
OTTI 0.1 Other expense (income), net
(0.2) Tax benefit (liability)
$ 1.1 Net of tax
Total reclassifications for the period $ 11.8 Net of tax
Net Other comprehensive earnings (loss) for 2012 and 2011 include amounts reclassified from Accumulated other comprehensive
earnings (loss). Refer to Note 17 of the Notes to Consolidated Financial Statements for additional information regarding pension and
other postretirement plans, including the amounts amortized out of Accumulated other comprehensive earnings (loss) into net periodic
benefit cost for the periods presented. Refer to Note 7 of the Notes to Consolidated Financial Statements for additional information
regarding the Company’s investments in marketable securities, including realized gains and losses reclassified from Accumulated
other comprehensive earnings (loss) into Net earnings for the periods presented.
16. EARNINGS PER SHARE (“EPS”)
The following table presents a reconciliation of the numerators and denominators of the basic and diluted EPS calculations for the
years ended December 31:
2013 2012 2011
Numerator:
Net earnings $ 261.8 $ 107.6 $ 275.2
Denominator:
Weighted average shares used to compute basic EPS 63.0 68.6 77.1
Effect of dilutive securities -
Employee stock plans
1.1 0.9 0.8
Wei
g
hted avera
g
e shares used to com
p
ute diluted EPS 64.1 69.5 77.9
Basic net EPS $ 4.16 $ 1.57 $ 3.57
Diluted net EPS $ 4.08 $ 1.55 $ 3.53
Restricted stock units (“RSUs”), stock options, and dividend equivalent units totaling an additional 2.4 million, 3.8 million and 5.7
million shares of Class A Common Stock in 2013, 2012, and 2011, respectively, were outstanding but were not included in the
computation of diluted net earnings per share because the effect would have been antidilutive.
Under the terms of Lexmark’s RSU agreements, unvested RSU awards contain forfeitable rights to dividends and dividend equivalent
units. Because the dividend equivalent units are forfeitable, they are defined as non-participating securities. As of December 31, 2013,
there were approximately 0.2 million dividend equivalent units outstanding, which will vest at the time that the underlying RSU vests.
In addition to the 2.4 million antidilutive shares for the year ended December 31, 2013, mentioned above, unvested restricted stock
units with a performance condition that were granted in the first quarter of 2013 and 2012 were also excluded from the computation of
diluted earnings per share. According to FASB guidance on earnings per share, contingently issuable shares are excluded from the
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