Lexmark 2014 Annual Report Download - page 79

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Assets and Liabilities Measured at Fair Value on a Recurring Basis
December 31, 2014 December 31, 2013
Based on Based on
Quoted Quoted
prices in Other prices in Other
active observable Unobservable active observable Unobservable
markets inputs inputs markets inputs inputs
Fair value
(Level 1) (Level 2) (Level 3) Fair value (Level 1) (Level 2) (Level 3)
Assets measured at fair value on a recurring basis:
Cash equivalents (1)
Money market funds $ 185.3 $ – $ 185.3 $ – $ 162.6 $ – $ 162.6 $ –
Government and agency debt securities 6.9 – 6.9 – 12.5 – 12.5 –
Total cash equivalents 192.2 – 192.2 – 175.1 – 175.1 –
Available-for-sale marketable securities
Government and agency debt securities 274.1 219.9 54.2 – 345.8 251.0 94.8 –
Corporate debt securities 291.0 5.6 285.4 – 362.1 7.5 354.6 –
Asset-backed and mortgage-backed securities 59.5 – 58.1 1.4 73.6 – 71.8 1.8
Total available-for-sale marketable securities - ST 624.6 225.5 397.7 1.4 781.5 258.5 521.2 1.8
Auction rate securities - municipal debt – – – – 3.4 – – 3.4
Auction rate securities - preferred – – – – 3.3 – – 3.3
Total available-for-sale marketable securities - LT – – – – 6.7 – – 6.7
Foreign currency derivatives (2) 28.3 – 28.3 – 0.1 – 0.1 –
Total $ 845.1 $ 225.5 $ 618.2 $ 1.4 $ 963.4 $ 258.5 $ 696.4 $ 8.5
Liabilities measured at fair value on a recurring basis:
Foreign currency derivatives (2) $ 11.8 $ – $ 11.8 $ – $ 0.2 $ – $ 0.2 $ –
Total $ 11.8 $ – $ 11.8 $ – $ 0.2 $ – $ 0.2 $ –
(1) Included in Cash and cash equivalents on the Consolidated Statements of Financial Position.
(2) Foreign currency derivative assets and foreign currency derivative liabilities are included in Prepaid expenses and other current assets and Accrued liabilities, respectively, on the Consolidated Statements of Financial
Position. Refer to Note 18 of the Notes to Consolidated Financial Statements for disclosure of derivative assets and liabilities on a gross basis.
The Company’s policy is to consider all highly liquid investments with an original maturity of three months or less at the Company’s
date of purchase to be cash equivalents. The amortized cost of these investments closely approximates fair value in accordance with
the Company’s policy regarding cash equivalents. Fair value of these instruments is readily determinable using the methods described
below for marketable securities and money market funds.
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