Lexmark 2015 Annual Report Download - page 124

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120
Other Litigation
There are various other lawsuits, claims, investigations and proceedings involving the Company that are currently pending. The
Company has determined that although a potential loss is reasonably possible for certain matters, that for such matters in which it is
possible to estimate a loss or range of loss, the estimate of the loss or estimate of the range of loss are not material to the Company’s
consolidated results of operations, cash flows or financial position.
20. SEGMENT DATA
Lexmark operates in the office imaging and enterprise content and business process management markets. In April 2015, the
Company announced a strategic rebranding action to unify and strengthen the market presence of the Company’s information
technology portfolio of enterprise software, print hardware and MPS. As part of the rebranding action, the Company elected to change
the name of its Perceptive Software segment to Lexmark Enterprise Software. Certain software products will still include the
Perceptive name. The Company is managed along two operating segments: ISS and Enterprise Software.
ISS offers a broad portfolio of monochrome and color laser printers and laser multifunction products as well as a wide range of
supplies and services covering its printing products and technology solutions.
Enterprise Software offers an integrated suite of ECM, BPM, DOM/CCM that includes case management, electronic signature,
process analytics, information and application integration, intelligent content capture and data extraction, enterprise search software
and medical imaging VNA software products and solutions. The Company acquired AccessVia and Twistage on March 1, 2013,
Saperion on September 16, 2013, PACSGEAR on October 3, 2013, ReadSoft on August 19, 2014, GNAX Health on October 14,
2014, Claron on January 2, 2015, and Kofax on May 21, 2015. These acquisitions further expanded and strengthened the solutions
available in the Enterprise Software segment.
The Company evaluates the performance of its segments based on revenue and operating income, and does not include segment assets
or non-operating income/expense items for management reporting purposes. Segment operating (loss) income includes: selling,
general and administrative; research and development; restructuring and related charges; and other expenses, certain of which are
allocated to the respective segments based on internal measures and may not be indicative of amounts that would be incurred on a
stand-alone basis or may not be indicative of results of other enterprises in similar businesses. All other operating (loss) income
includes significant expenses that are managed outside of the reporting segments. These unallocated costs include such items as
information technology expenses, certain occupancy costs, certain pension and other postretirement benefit plan costs, stock-based
compensation and certain other corporate and regional general and administrative expenses such as finance, legal and human
resources. Acquisition-related costs and integration expenses are also included primarily in All other.
The following table includes information about the Company’s reportable segments:
2015
2014
2013
Revenue:
ISS
$
3,017.4
$
3,414.8
$
3,444.0
Enterprise Software
533.8
295.7
223.6
Total revenue
$
3,551.2
$
3,710.5
$
3,667.6
Operating (loss) income:
ISS
$
483.5
$
645.4
$
770.3
Enterprise Software
(88.1)
(88.5)
(79.5)
All other
(419.9)
(407.7)
(281.6)
Total operating (loss) income
$
(24.5)
$
149.2
$
409.2
Operating (loss) income noted above for the year ended December 31, 2015 includes restructuring charges of $53.2 million in ISS,
$3.7 million in All other, and $21.1 million in Enterprise Software. Operating (loss) income related to Enterprise Software for the year
ended December 31, 2015 includes $128.4 million of amortization expense related to intangible assets acquired by the Company. All
other for the year ended December 31, 2015 includes a pension and other postretirement benefit plan asset and actuarial net loss of
$8.7 million and remediation-related costs of $7.5 million.
Operating (loss) income noted above for the year ended December 31, 2014 includes restructuring charges of $15.0 million in ISS,
$3.5 million in All other, and $11.0 million in Enterprise Software. Operating (loss) income related to Enterprise Software for the year
ended December 31, 2014 includes $72.8 million of amortization expense related to intangible assets acquired by the Company. All
other for the year ended December 31, 2014 includes a pension and other postretirement benefit plan asset and actuarial net loss of
$80.5 million.