Lexmark 2013 Annual Report Download - page 124
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The following table sets forth by level, within the fair value hierarchy, plan assets measured at fair value on a recurring basis as of
December 31, 2013 and 2012:
December 31, 2013 December 31, 2012
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Commingled trust funds:
Fixed income $ – $ 210.1 $ – $ 210.1 $ – $ 245.4 $ – $ 245.4
International equity large-
ca
p
– 92.9 – 92.9 – 124.1 – 124.1
International equity
small-ca
p
– 20.8 – 20.8 – 30.5 – 30.5
Emerging market equity – 24.5 – 24.5 – 27.8 – 27.8
Emerging market debt – 26.6 – 26.6 – 27.5 – 27.5
Global equity – 39.2 – 39.2 – 46.7 – 46.7
U.S. equity – 89.8 – 89.8 – 96.8 – 96.8
Real estate – 4.8 – 4.8 – 3.6 – 3.6
Mutual and money market
funds:
Small mid-cap value – – – – 13.8 – – 13.8
Money market fund – – – – – 1.3 – 1.3
Fixed income:
Government and agency
debt securities – 33.0 – 33.0 – – – –
Corporate debt securities – 133.0 1.6 134.6 – 27.7 2.0 29.7
Asset-backed and
mortgage-backed
securities – 11.1 2.5 13.6 – – – –
U.S. equity securities:
Small mid-cap growth – – – – 13.2 – – 13.2
Cash equivalent – 2.3 – 2.3 – 0.2 – 0.2
Subtotal – 688.1 4.1 692.2 27.0 631.6 2.0 660.6
Cash – – – 2.2 – – – –
Employer and benefits
p
a
y
able – – – (2.3) – – – –
Total assets at fair value $ – $ 688.1 $ 4.1 $ 692.1 $ 27.0 $ 631.6 $ 2.0 $ 660.6
The following table sets forth a summary of changes in the fair value of level 3 assets at December 31:
2013 2012
Total
Fixed Income -
Corporate debt
securities
Fixed Income -
Asset-backed
securities
Fixed Income -
Corporate debt
securities
Fair value at beginning of year $ 2.0 $ 2.0 $ – $ 2.0
Actual return on plan assets - assets held at reporting date – – – –
Actual return on plan assets - assets sold during period (0.1) – (0.1) –
Purchases, sales and settlements, net 2.6 – 2.6 0.1
Transfers in/(transfers out), net (0.4) (0.4) – (0.1)
Fair value at end of year $ 4.1 $ 1.6 $ 2.5 $ 2.0
Defined Contribution Plans
Lexmark also sponsors defined contribution plans for employees in certain countries. Company contributions are generally based upon
a percentage of employees’ contributions. The Company’s expense under these plans was $28.3 million, $26.0 million and
$25.6 million in 2013, 2012 and 2011, respectively.
Additional Information
Other postretirement benefits:
For measurement purposes, a 7.4% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2014.
The rate is assumed to decrease gradually to 4.5% for 2028 and remain at that level thereafter. A one-percentage-point change in the
health care cost trend rate would have a de minimus effect on the benefit cost and obligation since preset caps have been met for the
net employer cost of postretirement medical benefits.
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