Lexmark 2015 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 of the 2015 Lexmark annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 141

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141

108
For the year ended December 31, 2013, the following table provides details of amounts reclassified from Accumulated other
comprehensive earnings (loss):
Amount Reclassified
from Accumulated
Other
Details about Accumulated Other
Comprehensive
Affected Line Item
Comprehensive Earnings Components
(Loss) Earnings
in the Statements of Earnings
Foreign currency translation adjustment
Foreign exchange gain recognized upon sale
of a foreign entity
$
10.7
Gain on sale of inkjet-related technology and assets
Pension and other postretirement benefits
Amortization of prior service credit
$
0.7
Note 17. Employee Pension and Postretirement Plans
Pension-related losses recognized upon sale
of a subsidiary
(0.4)
Gain on sale of inkjet-related technology and assets
$
(0.3)
Tax benefit (liability)
$
–
Net of tax
Unrealized gains and (losses) on
marketable securities
Non-OTTI
$
1.2
Other expense (income), net
OTTI
0.1
Other expense (income), net
(0.2)
Tax benefit (liability)
$
1.1
Net of tax
Total reclassifications for the period
$
11.8
Net of tax
16. EARNINGS PER SHARE (“EPS”)
The following table presents a reconciliation of the numerators and denominators of the basic and diluted EPS calculations for the
years ended December 31:
2015
2014
2013
Numerator:
Net (loss) earnings
$
(40.4)
$
79.9
$
259.1
Denominator:
Weighted average shares used to compute basic EPS
61.6
62.0
63.0
Effect of dilutive securities -
Employee stock plans
–
1.2
1.1
Weighted average shares used to compute diluted EPS
61.6
63.2
64.1
Basic net EPS
$
(0.66)
$
1.29
$
4.11
Diluted net EPS
$
(0.66)
$
1.26
$
4.04
Outstanding stock based compensation awards were not considered in the diluted EPS calculation due to the Company’s net loss in
2015. Restricted stock units (“RSUs”), stock options, and dividend equivalent units totaling an additional 0.9 million and 2.4 million
shares of Class A Common Stock in 2014, and 2013, respectively, were outstanding but were not included in the computation of
diluted net EPS because the effect would have been antidilutive.
Under the terms of Lexmark’s RSU agreements, unvested RSU awards contain forfeitable rights to dividends and dividend equivalent
units. Because the dividend equivalent units are forfeitable, they are defined as non-participating securities. As of December 31, 2015,
there were approximately 0.2 million dividend equivalent units outstanding, which will vest at the time that the underlying RSU vests.
The Company executed one accelerated share repurchase agreement with financial institution counterparties in 2015, resulting in a
total of 0.7 million shares repurchased at a cost of $30 million during the year. The ASR had a favorable impact to basic and diluted
EPS in 2015.