Lexmark 2014 Annual Report Download - page 80

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The following table presents additional information about Level 3 assets measured at fair value on a recurring basis for the year ended
December 31, 2014:
Available-for-sale marketable securities
ARS - muni ARS -
Twelve Months Ended December 31, 2014 Total Level 3 AB and MB debt preferred
securities securities securities securities
Balance, beginning of period $ 8.5 $ 1.8 $ 3.4 $ 3.3
Realized and unrealized gains/(losses) included in earnings (1) 0.3 0.3 – –
Unrealized gains/(losses) included in OCI - OTTI securities (0.1) (0.1) – –
Unrealized gains/(losses) included in OCI - All other 0.7 – – 0.7
Purchases 1.6 1.6 – –
Sales and redemptions (4.6) (0.6) – (4.0)
Paydowns (0.3) (0.3) – –
Transfers in (2) 0.3 0.3 – –
Transfers out (2) (5.0) (1.6) (3.4) –
Balance, end of period $ 1.4 $ 1.4 $ – $ –
OCI = Other comprehensive income
OTTI = Other than temporary impairment
AB = Asset-backed
MB = Mortgage-backed
ARS = Auction rate security
(1) Included in Other expense (income), net on the Consolidated Statements of Earnings
(2) Transfers into Level 3 were on a gross basis, and resulted from the Company being unable to corroborate the prices of these securities with a sufficient level of
observable market data to maintain Level 2 classification. Transfers out of Level 3 were on a gross basis, and resulted from the Company being able to obtain
information demonstrating that the prices were observable in the market during the period shown.
Of the realized and unrealized losses included in earnings during the year ended December 31, 2014, none were related to Level 3
securities held by the Company at December 31, 2014.
For purposes of comparison, the following table presents additional information about Level 3 assets measured at fair value on a
recurring basis for the year ended December 31, 2013:
Available-for-sale marketable securities
Corporate ARS - muni ARS -
Twelve Months Ended December 31, 2013 Total Level 3 debt AB and MB debt preferred
securities securities securities securities securities
Balance, beginning of period $ 15.0 $ 5.2 $ 3.5 $ 3.3 $ 3.0
Unrealized gains/(losses) included in OCI - OTTI securities 0.1 – 0.1 – –
Unrealized gains/(losses) included in OCI - All other 0.5 – – 0.2 0.3
Purchases 0.2 0.2 – – –
Sales (0.6) (0.6) – – –
Maturities and paydowns (0.8) – (0.7) (0.1) –
Transfers out (1) (5.9) (4.8) (1.1) – –
Balance, end of period $ 8.5 $ – $ 1.8 $ 3.4 $ 3.3
OCI = Other comprehensive income
OTTI = Other than temporary impairment
AB = Asset-backed
MB = Mortgage-backed
ARS = Auction rate security
(1) Transfers out of Level 3 were on a gross basis and resulted from the Company being able to obtain information demonstrating that the prices were observable in the
market during the period shown.
Of the realized and unrealized losses included in earnings during the year ended December 31, 2013, none were related to Level 3
securities held by the Company at December 31, 2013.
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