Lexmark 2013 Annual Report Download - page 120

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116
computation of diluted EPS if, based on current period results, the shares would not be issuable if the end of the reporting period were
the end of the contingency period. If the performance condition were to become satisfied based on actual financial results and the
performance awards would have a dilutive impact on EPS, the performance awards included in the diluted EPS calculation would be
in the range of 0.1 million to 0.5 million shares depending on the level of achievement. Refer to Note 6 of the Notes to Consolidated
Financial Statements for additional information regarding restricted stock awards with a performance condition.
The Company executed four accelerated share repurchase agreements with financial institution counterparties in 2013, resulting in a
total of 2.7 million shares repurchased at a cost of $82 million during the year. The ASRs had a favorable impact to basic and diluted
EPS in 2013.
In addition to the 3.8 million antidilutive shares for the year ended December 31, 2012 mentioned above, unvested restricted stock
units with a performance condition that were granted in the first quarter of 2012 were also excluded from the computation of diluted
earnings per share.
The Company executed four accelerated share repurchase agreements with financial institution counterparties in 2012, resulting in a
total of 8.1 million shares repurchased at a cost of $190 million during the year. The ASRs had a favorable impact to basic and diluted
EPS in 2012.
In addition to the 5.7 million antidilutive shares for the year ended December 31, 2011 mentioned above, unvested restricted stock
units with a performance condition that were granted in the first quarter of 2011 were also excluded from the computation of diluted
earnings per share. The performance period for these awards ended on December 31, 2011. The Company’s assessment as of
December 31, 2011 was that the minimum level of achievement had not been met and as a result these awards were cancelled.
The Company executed two accelerated share repurchase agreements with financial institution counterparties in 2011, resulting in a
total of 7.9 million shares repurchased at a cost of $250 million over the third and fourth quarter. The ASRs had a favorable impact to
basic and diluted EPS in 2011.
17. EMPLOYEE PENSION AND POSTRETIREMENT PLANS
Lexmark and its subsidiaries have defined benefit and defined contribution pension plans that cover certain of its regular employees,
and a supplemental plan that covers certain executives. Medical, dental and life insurance plans for retirees are provided by the
Company and certain of its non-U.S. subsidiaries.
During the fourth quarter of 2013, the Company changed its accounting policy for pension and other postretirement benefit plan asset
and actuarial gains and losses. Under the new accounting policy, these gains and losses will be recognized in net periodic benefit cost
in the year in which they occur rather than amortized over time. Results for all periods presented in this Annual Report on Form 10-K
reflect the retrospective application of this accounting policy change. Refer to Note 2 of the Notes to Consolidated Financial
Statements for additional information.
Defined Benefit Plans
The non-U.S. pension plans are not significant and use economic assumptions similar to the U.S. pension plan and therefore are not
shown separately in the following disclosures.
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