Lexmark 2015 Annual Report Download - page 109

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105
Accelerated Share Repurchase Agreements
The Company executed one ASR agreement with financial institution counterparties in 2015, resulting in a total of 0.7 million shares
repurchased at a cost of $30 million. The impact of this ASR is included in the share repurchase totals provided in the preceding
paragraphs. There were no outstanding ASR Agreements as of December 31, 2015.
Under the terms of the ASR agreement, 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 Agreement was dependent on the
average of the daily volume weighted-average price of the Company's Class A Common Stock over the agreement's trading period, a
discount, and the initial number of shares delivered. Under the terms of the ASR Agreement, 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.
The ASR agreement discussed in the preceding paragraph was accounted for as an initial treasury stock transaction and a forward
contract. The initial repurchase of shares resulted in a reduction of the outstanding shares used to calculate the weighted-average
common shares outstanding for basic and diluted net income per share on the effective date of the agreements. The forward contract
(settlement provision) was considered indexed to the Company's own stock and was classified as an equity instrument under
accounting guidance applicable to contracts in an entity's own equity.
Accumulated Other Comprehensive Earnings (Loss)
The following tables provide the tax benefit or expense attributed to each component of Other comprehensive (loss) earnings:
Year Ended December 31, 2015
Change, Tax benefit Change,
net of tax (liability) pre-tax
Components of other comprehensive (loss) earnings:
Foreign currency translation adjustment $ (73.7) $ 7.6 $ (81.3)
Recognition of pension and other postretirement benefit plans prior service
credit, net of (amortization) (0.5) 0.3 (0.8)
Net unrealized (loss) gain on marketable securities (0.1) – (0.1)
Unrealized (loss) on cash flow hedges (6.0) 0.7 (6.7)
Total other comprehensive (loss) earnings $ (80.3) $ 8.6 $ (88.9)
Year Ended December 31, 2014
Change, Tax benefit Change,
net of tax (liability) pre-tax
Components of other comprehensive (loss) earnings:
Foreign currency translation adjustment $ (70.4) $ 4.7 $ (75.1)
Recognition of pension and other postretirement benefit plans prior service
credit, net of (amortization) (0.2) 0.1 (0.3)
Net unrealized (loss) gain on OTTI marketable securities (0.1) – (0.1)
Net unrealized (loss) gain on marketable securities (0.8) (0.2) (0.6)
Unrealized gain on cash flow hedges 15.9 (1.7) 17.6
Total other comprehensive (loss) earnings $ (55.6) $ 2.9 $ (58.5)