Lexmark 2013 Annual Report Download - page 137

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Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None
Item 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company’s management, with the participation of the Company’s Chairman and Chief Executive Officer and Executive Vice
President and Chief Financial Officer, have evaluated the effectiveness of the Company’s disclosure controls and procedures as of
December 31, 2013. Based upon that evaluation, the Company’s Chairman and Chief Executive Officer and Executive Vice President
and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective in providing
reasonable assurance that the information required to be disclosed by the Company in the reports that it files under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission’s rules and forms and were effective as of December 31, 2013 to ensure that
information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and
communicated to the Company’s management, including its principal executive and principal financial officers or persons performing
similar functions, as appropriate to allow timely decisions regarding required disclosure.
Management’s Report on Internal Control over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such
term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of our management, including the
Chairman and Chief Executive Officer and Executive Vice President and Chief Financial Officer, we conducted an evaluation of the
effectiveness of our internal control over financial reporting based upon the framework in Internal Control-Integrated Framework
(1992) issued by COSO. Based on our evaluation under the framework in Internal Control-Integrated Framework (1992), our
management concluded that our internal control over financial reporting was effective as of December 31, 2013. The effectiveness of
the Company’s internal control over financial reporting as of December 31, 2013 has been audited by PricewaterhouseCoopers LLP,
an independent registered public accounting firm, as stated in their report appearing on page 132.
On May 14, 2013, the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") issued an updated version of
its Internal Control - Integrated Framework ("2013 Framework"). Originally issued in 1992 ("1992 Framework"), the framework helps
organizations design, implement and evaluate the effectiveness of internal control concepts and simplify their use and application. The
1992 Framework will remain available during the transition period, which extends to December 15, 2014, after which time COSO will
consider it as superseded by the 2013 Framework. As of December 31, 2013, the Company is utilizing the original framework
published in 1992.
Changes in Internal Control over Financial Reporting
There has been no change in the Company’s internal control over financial reporting that occurred during the fourth quarter of 2013
that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
Inherent Limitations on Effectiveness of Controls
The Company’s management, including the Company’s Chairman and Chief Executive Officer and Executive Vice President and
Chief Financial Officer, does not expect that the Company’s disclosure controls and procedures or the Company’s internal control
over financial reporting will prevent or detect all error and all fraud. A control system, regardless of how well conceived and operated,
can provide only reasonable, not absolute, assurance that the objectives of the control system will be met. These inherent limitations
include the following:
Judgments in decision-making can be faulty, and control and process breakdowns can occur because of simple errors or
mistakes.
Controls can be circumvented by individuals, acting alone or in collusion with each other, or by management override.
The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there
can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance
with policies or procedures.
133