Lexmark 2014 Annual Report Download - page 101

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million for the years ended December 31, 2014, 2013, and 2012, respectively. The following table summarizes the estimated future
amortization expense for intangible assets that are currently being amortized.
Fiscal year:
2015 $ 73.4
2016 64.7
2017 49.0
2018 35.7
2019 16.9
Thereafter 23.0
Total $262.7
In-process technology refers to research and development efforts that were in process on the dates the Company acquired Saperion
and ReadSoft. Under the accounting guidance for intangible assets, in-process research and development acquired in a business
combination is considered an indefinite lived asset until completion or abandonment of the associated research and development
efforts. The Company begins amortizing its in-process technology assets upon completion of the projects.
The Company reevaluated the indefinite useful life assumption for its Perceptive Software trade name asset in 2013 as required under
the accounting guidance for indefinite-lived intangible assets. The asset, which was originally valued at $32.3 million, was deemed to
no longer have an indefinite useful life following changes in management’s expected use of the name as evidenced by the
centralization of the Company’s marketing organization across ISS and Perceptive Software during the fourth quarter of 2013.
Accordingly, the Company commenced amortization over the asset’s estimated useful life. The Company’s expected use of its
acquired trade names and trademarks could change in future periods as the Company considers alternatives for going to market with
its acquired software and solutions products.
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:
2014 2013
Deferred revenue $ 208.8 $ 175.0
Compensation 133.4 161.5
Copyright fees 56.3 64.0
Marketing programs 57.5 70.8
Other 222.5 201.1
Accrued liabilities $ 678.5 $ 672.4
The $6.1 million increase in Accrued liabilities was primarily driven by a $33.8 million increase in Deferred revenue, due partially to
the purchase of ReadSoft (refer to Note 4 of the Notes to Consolidated Financial Statements for additional information) and partially
to increased software and service contracts. An additional increase of $11.8 million, included in Other, was due to cash flow hedging
activities which began in late 2014 (refer to Note 18 of the Notes to Consolidated Financial Statements for additional information).
These increases were partially offset by decreases in Compensation accruals of $28.1 million and Marketing programs of $13.3
million. Accrued compensation decreased primarily due to a legal settlement payout in 2014 of $14.4 million and approximately $16
million due to a decrease in the required number of accrued payroll days for the U.S. in 2014. Marketing programs decreased due to
lower payout for claims in 2014.
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