Lexmark 2015 Annual Report Download - page 97

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93
The contractual maturities of the Company’s available-for-sale marketable securities noted above are shown below. Expected
maturities may differ from final contractual maturities for certain securities that allow for call or prepayment provisions. Proceeds
from calls and prepayments are included in Proceeds from maturities of marketable securities on the Consolidated Statements of Cash
Flows.
2014
Amortized
Estimated Fair
Cost
Value
Due in less than one year
$
109.0
$
109.0
Due in one to five years
510.9
510.7
Due after five years
11.5
11.8
Total available-for-sale marketable securities
$
631.4
$
631.5
For the years ended December 31, 2015, 2014, and 2013, the Company recognized $1.7 million, $2.9 million, and $1.3 million,
respectively, in net gains on its marketable securities, included in Other expense (income), net on the Consolidated Statements of
Earnings. The amount in 2014 includes a gain of $1.3 million on the Company’s previously held investment in shares of ReadSoft,
which were purchased in 2014 and marked to fair value on the acquisition date. Refer to Note 4 of the Notes to Consolidated Financial
Statements for information. Other amounts recognized in all periods represent realized gains due to sales and maturities. The
Company uses the specific identification method when accounting for the costs of its available-for-sale marketable securities sold.
Impairment
The FASB guidance on the recognition and presentation of OTTI requires that credit-related OTTI on debt securities be recognized in
earnings while noncredit-related OTTI of debt securities not expected to be sold be recognized in other comprehensive income. For
the years ended December 31, 2015, 2014, and 2013, the Company incurred no OTTI on its debt securities. Amounts related to credit
losses for which a portion of total OTTI was recognized in other comprehensive income were immaterial for disclosure in 2015 and
2014.
The following tables provide information about the Company’s marketable securities with gross unrealized losses for which no other-
than-temporary impairment has been incurred and the length of time that individual securities have been in a continuous unrealized
loss position. The pre-tax gross unrealized losses below are recognized in Accumulated other comprehensive loss:
December 31, 2014
Less than 12 Months
12 Months or More
Total
Fair
Unrealized
Fair
Unrealized
Fair
Unrealized
Value
Loss
Value
Loss
Value
Loss
Corporate debt securities
$
154.9
$
(0.5)
$
–
$
–
$
154.9
$
(0.5)
Asset-backed and mortgage-backed securities
44.2
(0.1)
0.7
–
44.9
(0.1)
Government and agency debt securities
184.6
(0.3)
–
–
184.6
(0.3)
Total
$
383.7
$
(0.9)
$
0.7
$
–
$
384.4
$
(0.9)
As of December 31, 2014, none of the Company’s marketable securities for which OTTI has been incurred were in an unrealized loss
position.
8. TRADE RECEIVABLES
The Company’s trade receivables are reported in the Consolidated Statements of Financial Position net of allowances for doubtful
accounts and product returns. Trade receivables consisted of the following at December 31:
2015
2014
Gross trade receivables
$
458.6
$
446.3
Allowances
(24.4)
(22.2)
Trade receivables, net
$
434.2
$
424.1
Refer to Note 4 of the Notes to Consolidated Financial Statements for information regarding measurement period adjustments in the
second quarter of 2015 applied retrospectively to Trade receivables in the Consolidated Statements of Financial Position related to the
acquisition of ReadSoft in the third quarter of 2014.