Lexmark 2014 Annual Report Download - page 83

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December 31, 2014 December 31, 2013
Carrying Unamortized Carrying Unamortized
Fair value Value discount Fair value value discount
2018 senior notes $ 334.0 $ 299.7 $ 0.3 $ 335.8 $ 299.6 $ 0.4
2020 senior notes 422.6 400.0 – 409.3 400.0 –
Total $ 756.6 $ 699.7 $ 0.3 $ 745.1 $ 699.6 $ 0.4
Refer to Note 13 of the Notes to Consolidated Financial Statements for additional information regarding the senior notes.
Plan Assets
Plan assets must be measured at least annually in accordance with accounting guidance on employers’ accounting for pensions and
employers’ accounting for postretirement benefits other than pensions. The fair value measurement guidance requires that the
valuation of plan assets comply with its definition of fair value, which is based on the notion of an exit price and the maximization of
observable inputs. The fair value measurement guidance does not apply to the calculation of pension and postretirement obligations
since the liabilities are not measured at fair value.
Refer to Note 17 of the Notes to Consolidated Financial Statements for disclosures regarding the fair value of plan assets.
Other Financial Instruments
The fair values of cash and cash equivalents, trade receivables and accounts payable approximate their carrying values due to the
relatively short-term nature of the instruments.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Subsequent to Initial Recognition
There were no material fair value adjustments to assets or liabilities measured at fair value on a nonrecurring basis subsequent to
initial recognition during 2014 or 2013.
4. BUSINESS COMBINATIONS AND DIVESTITURES
Business Combinations
On January 2, 2015, subsequent to the date of the financial statements, the Company acquired substantially all the assets of Claron
Technology, Inc. (“Claron”). A leading provider of medical image viewing, distribution, sharing and collaboration software
technology, Claron’s solutions help healthcare delivery organizations provide universal access to patient imaging studies and other
content across and between healthcare enterprises.
The Company has begun its initial accounting for the purchase of Claron, and currently estimates the fair value of identifiable
intangible assets acquired to be approximately $17 million. This estimate is subject to change as the Company continues its accounting
for the purchase of Claron. Due to the limited amount of time since the acquisition the initial accounting for the acquisition is
incomplete. The Company intends to provide additional business combination disclosures including the amounts recognized as of the
acquisition date for other assets acquired and liabilities assumed, contingent consideration agreements and indemnification assets,
goodwill, and pro-forma results of the combined entity, if material, in its Quarterly Report on Form 10-Q for the first quarter of 2015.
2014
Acquisition of ReadSoft AB
In the second quarter of 2014, the Company commenced a public cash tender offer for all of the outstanding shares of ReadSoft AB
(“ReadSoft”). ReadSoft is a leading global provider of software solutions that automate business processes, both on premise and in the
cloud. Its software captures, classifies, sorts and routes both hard copy and digital business documents, provides approval workflows,
and automatically extracts and verifies relevant data before depositing it into a customer’s systems of record. With the addition of
ReadSoft, Perceptive Software will grow its software offering with additional document process automation capabilities and expand
its footprint in Europe.
Concurrent with the public tender offer, the Company also obtained shares in ReadSoft through multiple share purchase transactions
with specific shareholders in July 2014 and August 2014. On August 19, 2014, the Company purchased the ReadSoft founders’ share
holdings at a price of 57.00 Swedish kronor (SEK) per share. As a result of the purchases of the founders’ shares and the previous
purchases in the third quarter of 2014, the Company held a total of 1.2 million Class A shares and 9.7 million Class B shares in
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