Lexmark 2014 Annual Report Download - page 107

A reconciliation of the total beginning and ending gross amounts of unrecognized tax benefits, included in Accrued liabilities and
Other liabilities on the Consolidated Statements of Financial Position, is as follows:
2014 2013 2012
Balance at January 1 $ 23.5 $ 24.2 $ 23.1
Increases / (decreases) in unrecognized tax benefits as a result of tax
positions taken during a prior period (3.3) 3.2 6.9
Increases / (decreases) in unrecognized tax benefits as a result of tax
positions taken during the current period 1.4 3.7 3.0
Increases / (decreases) in unrecognized tax benefits relating to
settlements with taxing authorities (0.5) (2.0) (6.5)
Reductions to unrecognized tax benefits as a result of a lapse of the
applicable statute of limitations (1.9) (5.6) (2.3)
Balance at December 31 $ 19.2 $ 23.5 $ 24.2
Other
Cash paid for income taxes, net of (refunds), was $50.8 million, $60.8 million, and $(1.4) million in 2014, 2013, and 2012,
respectively.
15. STOCKHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSS)
The Class A Common Stock is voting and exchangeable for Class B Common Stock in very limited circumstances. The Class B
Common Stock is non-voting and is convertible, subject to certain limitations, into Class A Common Stock.
At December 31, 2014, there were 803.0 million shares of authorized, unissued Class A Common Stock. Of this amount,
approximately 14.5 million shares of Class A Common Stock have been reserved under employee stock incentive plans and
nonemployee director plans. There were also 1.8 million shares of unissued and unreserved Class B Common Stock at December 31,
2014. These shares are available for a variety of general corporate purposes, including future public offerings to raise additional
capital and for facilitating acquisitions.
In August 2012, the Company received authorization from the Board of Directors to repurchase an additional $200 million of its
Class A Common Stock for a total repurchase authority of $4.85 billion. As of December 31, 2014, there was approximately $89
million of share repurchase authority remaining. This repurchase authority allows the Company, at management’s discretion, to
selectively repurchase its stock from time to time in the open market or in privately negotiated transactions depending upon market
price and other factors. During 2014, the Company repurchased approximately 1.9 million shares at a cost of approximately $80
million. During 2013, the Company repurchased approximately 2.7 million shares at a cost of approximately $82 million. As of
December 31, 2014, since the inception of the program in April 1996, the Company had repurchased approximately 112.2 million
shares of its Class A Common Stock for an aggregate cost of approximately $4.76 billion. As of December 31, 2014, the Company
had reissued approximately 0.5 million shares of previously repurchased shares in connection with certain of its employee benefit
programs. As a result of these issuances as well as the retirement of 44.0 million, 16.0 million and 16.0 million shares of treasury
stock in 2005, 2006 and 2008, respectively, the net treasury shares outstanding at December 31, 2014, were 35.7 million. The retired
shares resumed the status of authorized but unissued shares of Class A Common Stock.
Accelerated Share Repurchase Agreements
The Company executed four accelerated share repurchase (“ASR”) Agreements with financial institution counterparties in 2014,
resulting in a total of 1.9 million shares repurchased at a cost of $80 million. The impact of the four ASRs is included in the share
repurchase totals provided in the preceding paragraphs. There were no outstanding ASR Agreements as of December 31, 2014.
Under the terms of the ASR Agreements, the Company paid an agreed upon amount targeting a certain number of shares based on the
closing price of the Company's Class A Common Stock on the date of each agreement. The Company took delivery of 85% of the
shares in the initial transaction and the remaining 15% holdback provision payment was held back until final settlement of each
contract occurred. The final number of shares to be delivered by the counterparty under the ASR Agreements was dependent on the
average of the daily volume weighted-average price of the Company's Class A Common Stock over the agreements' trading period, a
discount, and the initial number of shares delivered. Under the terms of the ASR Agreements, the Company would either receive
additional shares from the counterparty or be required to deliver additional shares or cash to the counterparty in the final settlement.
The Company controlled its election to either deliver additional shares or cash to the counterparty.
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