Lexmark 2015 Annual Report Download - page 101

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97
purchase of Kofax (refer to Note 4 of the Notes to Consolidated Financial Statements for additional information) and the organic
growth in deferred revenue related to software and service contracts.
Changes in the Company’s warranty liability for standard warranties and deferred revenue for extended warranties are presented in the
tables below:
Warranty liability:
2015
2014
Balance at January 1
$
22.4
$
30.5
Accruals for warranties issued
48.9
58.3
Accruals related to pre-existing warranties (including
changes in estimates)
4.7
2.8
Settlements made (in cash or in kind)
(56.3)
(69.2)
Balance at December 31
$
19.7
$
22.4
Deferred service revenue:
2015
2014
Balance at January 1
$
180.3
$
179.9
Revenue deferred for new extended warranty contracts
79.9
93.8
Revenue recognized
(89.1)
(93.4)
Balance at December 31
$
171.1
$
180.3
Current portion
72.7
77.5
Non-current portion
98.4
102.8
Balance at December 31
$
171.1
$
180.3
The table above includes separately priced extended warranty and product maintenance contracts. It does not include software and
other elements of the Company’s deferred revenue. The short-term portion of warranty and the short-term portion of extended
warranty are included in Accrued liabilities on the Consolidated Statements of Financial Position. Both the long-term portion of
warranty and the long-term portion of extended warranty are included in Other liabilities on the Consolidated Statements of Financial
Position. The split between the short-term and long-term portion of the warranty liability is not disclosed separately above due to
immaterial amounts in the long-term portion.
Other liabilities, in the noncurrent liabilities section of the Consolidated Statements of Financial Position, consisted of the following at
December 31:
2015
2014
Pension and other postretirement benefits
$
186.7
$
196.5
Deferred revenue
150.9
140.3
Other
224.0
155.5
Other liabilities
$
561.6
$
492.3
The $69.3 million increase in Other liabilities was driven by an increase in long-term tax liabilities of $73.7 million, mainly driven by
deferred taxes on acquired intangible assets of Kofax and reclassification from Accrued liabilities due to the Company’s early
adoption of ASU 2015-17 (Balance Sheet Classification of Deferred Taxes) (refer to Note 2 of the Notes to Consolidated Financial
Statements for additional information). The increase of $10.6 million in long-term deferred revenue was due partially to the purchase
of Kofax and organic growth in deferred revenue related to software and service contracts. These increases were partially offset by a
$9.8 million decrease in pension and other postretirement benefits liability. This decrease was mainly driven by increases in discount
rate assumptions, normal monthly accruals of pension income, plan contributions and currency movements, partially offset by losses
on plan assets and acquisition of Kofax. Refer to Note 17 of the Notes to Consolidated Financial Statements for more information
related to pension and other postretirement plans. Refer to Note 4 of the Notes to Consolidated Financial Statements for additional
information regarding the acquisition of Kofax.