Property, Plant And Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant And Equipment [Abstract]

Property, Plant And Equipment

10.           PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following at December 31:

	Useful Lives (Years)	2013		2012
Land and improvements	20	$	34.4	$	31.1
Buildings and improvements	10-35		554.0		571.2
Machinery and equipment	2-10		639.4		882.5
Information systems	3-4		135.4		143.3
Internal-use software	3-5		514.5		541.7
Leased products	2-7		133.9		113.9
Furniture and other	7		60.1		59.7
			2,071.7		2,343.4
Accumulated depreciation			(1,259.3	)	(1,498.1	)
Property, plant and equipment, net		$	812.4	$	845.3

In 2013 the Company retired certain fully depreciated assets and accordingly reduced both the related gross carrying balances and accumulated depreciation balances. Also, in 2013 the Company derecognized certain assets upon the sale of its Inkjet-related technology and assets to a third party. Refer to Note 4 of the Notes to Consolidated Financial Statements for information on the divestiture.

Depreciation expense was $189.3 million, $229.6 million and $196.0 million in 2013, 2012 and 2011, respectively.

Leased products refers to hardware leased by Lexmark to certain customers as part of the Company's ISS operations. The cost of the hardware is amortized over the life of the contracts, which have been classified as operating leases based on the terms of the arrangements. The accumulated depreciation related to the Company's leased products was $89.7 million and $76.5 million at year-end 2013 and 2012, respectively.

The Company accounts for its internal-use software, an intangible asset by nature, in Property, plant and equipment, net on the Consolidated Statements of Financial Position. Amortization expense related to internal-use software is included in the depreciation expense values shown above and was $80.8 million, $69.3 million and $60.8 million in 2013, 2012 and 2011, respectively. The net carrying amounts of internal-use software at December 31, 2013 and 2012 were $209.7 million and $230.0 million, respectively. The following table summarizes the estimated future amortization expense for internal-use software currently being amortized.

Fiscal year:
2014	$	73.3
2015		46.4
2016		23.5
2017		13.3
2018		3.9
Thereafter		-
Total	$	160.4

The table above does not include future amortization expense for internal-use software that is not currently being amortized because the assets are not ready for their intended use.

Accelerated depreciation and disposal of long-lived assets

The Company's restructuring actions have resulted in shortened estimated useful lives of certain machinery and equipment and buildings and subsequent disposal of machinery and equipment no longer in use. Refer to Note 5 of the Notes to Consolidated Financial Statements for a discussion of these actions and the impact on earnings.

Long-lived assets held for sale

Certain of the Company's long-lived assets held for sale were subject to nonrecurring fair value measurements during 2012. Refer to Notes 3 and 5 of the Notes to Consolidated Financial Statements for a discussion of these assets.