Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Significant Accounting Policies [Abstract]

Effect Of Change in Accounting Policy For Pension And Other Postretirement Plans

Year Ended December 31, 2013	Historical Accounting Method		Effect of Accounting Change		As Reported
Revenue:
Product	$	3,242.3	$	-	$	3,242.3
Service		425.3		-		425.3
Total Revenue		3,667.6		-		3,667.6
Cost of revenue:
Product		1,903.1		(22.8	)	1,880.3
Service		323.5		(1.6	)	321.9
Restructuring-related costs		21.5		-		21.5
Total Cost of revenue		2,248.1		(24.4	)	2,223.7
Gross profit		1,419.5		24.4		1,443.9
Research and development		336.2		(49.0	)	287.2
Selling, general and administrative		852.4		(42.3	)	810.1
Gain on sale of inkjet-related technology and assets		(73.5	)	-		(73.5	)
Restructuring and related charges		10.9		-		10.9
Operating expense		1,126.0		(91.3	)	1,034.7
Operating income		293.5		115.7		409.2
Interest expense (income), net		33.0		-		33.0
Other expense (income), net		4.5		-		4.5
Loss on extinguishment of debt		3.3		-		3.3
Earnings before income taxes		252.7		115.7		368.4
Provision for income taxes		62.1		44.5		106.6
Net earnings	$	190.6	$	71.2	$	261.8
Net earnings per share:
Basic	$	3.02	$	1.14	$	4.16
Diluted	$	2.97	$	1.11	$	4.08
Shares used in per share calculation:
Basic		63.0				63.0
Diluted		64.1				64.1
Cash dividends declared per common share	$	1.20			$	1.20

LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(In Millions, Except Per Share Amounts)

Year Ended December 31, 2012	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Revenue:
Product	$	3,447.5	$	-	$	3,447.5
Service		350.1		-		350.1
Total Revenue		3,797.6		-		3,797.6
Cost of revenue:
Product		2,064.5		(0.5	)	2,064.0
Service		285.3		(1.3	)	284.0
Restructuring-related costs		47.8		-		47.8
Total Cost of revenue		2,397.6		(1.8	)	2,395.8
Gross profit		1,400.0		1.8		1,401.8
Research and development		372.7		(3.6	)	369.1
Selling, general and administrative		804.1		1.0		805.1
Restructuring and related charges		36.1		-		36.1
Operating expense		1,212.9		(2.6	)	1,210.3
Operating income		187.1		4.4		191.5
Interest expense (income), net		29.6		-		29.6
Other expense (income), net		(0.5	)	-		(0.5	)
Earnings before income taxes		158.0		4.4		162.4
Provision for income taxes		51.7		3.1		54.8
Net earnings	$	106.3	$	1.3	$	107.6
Net earnings per share:
Basic	$	1.55	$	0.02	$	1.57
Diluted	$	1.53	$	0.02	$	1.55
Shares used in per share calculation:
Basic		68.6				68.6
Diluted		69.5				69.5
Cash dividends declared per common share	$	1.15			$	1.15

LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(In Millions, Except Per Share Amounts)

Year Ended December 31, 2011	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Revenue:
Product	$	3,856.9	$	-	$	3,856.9
Service		316.1		-		316.1
Total Revenue		4,173.0		-		4,173.0
Cost of revenue:
Product		2,321.5		17.7		2,339.2
Service		266.4		(1.2	)	265.2
Restructuring-related costs		4.5		-		4.5
Total Cost of revenue		2,592.4		16.5		2,608.9
Gross profit		1,580.6		(16.5	)	1,564.1
Research and development		374.5		31.4		405.9
Selling, general and administrative		761.2		27.3		788.5
Restructuring and related charges		2.0		-		2.0
Operating expense		1,137.7		58.7		1,196.4
Operating income (loss)		442.9		(75.2	)	367.7
Interest expense (income), net		29.9		-		29.9
Other expense (income), net		(0.6	)	-		(0.6	)
Earnings (loss) before income taxes		413.6		(75.2	)	338.4
Provision for income taxes		92.7		(29.5	)	63.2
Net earnings	$	320.9	$	(45.7	)$	275.2
Net earnings per share:
Basic	$	4.16	$	(0.59	)$	3.57
Diluted	$	4.12	$	(0.59	)$	3.53
Shares used in per share calculation:
Basic		77.1				77.1
Diluted		77.9				77.9
Cash dividends declared per common share	$	0.25			$	0.25

Lexmark International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(In Millions)

Year Ended December 31, 2013	Historical Accounting Method		Effect of Accounting Change		As Reported
Net earnings	$	190.6	$	71.2	$	261.8
Other comprehensive earnings (loss):
Foreign currency translation adjustment (net of tax benefit (liability) of $3.5, $0.0, and $3.5, respectively)		(31.8	)	(0.2	)	(32.0	)
Pension or other postretirement benefits, net of reclassifications (net of tax benefit (liability) of $(45.2), $44.4, and $(0.8), respectively)		73.1		(71.0	)	2.1
Total other comprehensive earnings (loss)		41.1		(71.2	)	(30.1	)

Year Ended December 31, 2012	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Net earnings	$	106.3	$	1.3	$	107.6
Other comprehensive earnings (loss):
Foreign currency translation adjustment (net of tax benefit (liability) of $(0.6), $0.0, and $(0.6), respectively)		15.5		(0.8	)	14.7
Pension or other postretirement benefits, net of reclassifications (net of tax benefit (liability) of $(2.5), $2.6, and $0.1, respectively)		0.7		(0.5	)	0.2
Total other comprehensive earnings (loss)		17.3		(1.3	)	16.0

Year Ended December 31, 2011	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Net earnings	$	320.9	$	(45.7	)$	275.2
Other comprehensive earnings (loss):
Foreign currency translation adjustment (net of tax benefit (liability) of $5.8, $0.0, and $5.8, respectively)		(29.6	)	0.4		(29.2	)
Pension or other postretirement benefits, net of reclassifications (net of tax benefit (liability) of $30.8, $(29.4), and $1.4, respectively)		(48.0	)	45.3		(2.7	)
Total other comprehensive earnings (loss)		(78.7	)	45.7		(33.0	)

Lexmark International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In Millions)

As of December 31, 2013	Historical Accounting Method		Effect of Accounting Change		As Reported
Retained earnings	$	1,620.0	$	(206.9	)$	1,413.1
Accumulated other comprehensive (loss) earnings		(242.1	)	206.9		(35.2	)

As of December 31, 2012	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Retained earnings	$	1,507.5	$	(278.1	)$	1,229.4
Accumulated other comprehensive (loss) earnings		(283.2	)	278.1		(5.1	)

Lexmark International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

Year Ended December 31, 2013	Historical Accounting Method		Effect of Accounting Change		As Reported
Cash flows from operating activities:
Net earnings	$	190.6	$	71.2	$	261.8
Adjustments to reconcile net earnings to net cash provided by operating activities:
Deferred taxes		(3.3	)	44.5		41.2
Pension and other postretirement (income) expense		27.8		(115.7	)	(87.9	)

Year Ended December 31, 2012	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Cash flows from operating activities:
Net earnings	$	106.3	$	1.3	$	107.6
Adjustments to reconcile net earnings to net cash provided by operating activities:
Deferred taxes		17.5		3.1		20.6
Pension and other postretirement (income) expense		31.1		(4.4	)	26.7

Year Ended December 31, 2011	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Cash flows from operating activities:
Net earnings (loss)	$	320.9	$	(45.7	)$	275.2
Adjustments to reconcile net earnings to net cash provided by operating activities:
Deferred taxes		41.3		(29.5	)	11.8
Pension and other postretirement (income) expense		17.3		75.2		92.5

Prior year cash flow information has been updated to reflect the 2013 presentation of Cash flows from operating activities as described in the “Reclassifications” discussion below.

Lexmark International, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(In Millions)

Year Ended December 31, 2013	Historical Accounting Method		Effect of Accounting Change		As Reported
Retained earnings:
Beginning balance	$	1,507.5	$	(278.1	)$	1,229.4
Net earnings		190.6		71.2		261.8
Ending balance		1,620.0		(206.9	)	1,413.1
Accumulated other comprehensive earnings (loss):
Beginning balance		(283.2	)	278.1		(5.1	)
Other comprehensive earnings (loss)		41.1		(71.2	)	(30.1	)
Ending balance		(242.1	)	206.9		(35.2	)

Year Ended December 31, 2012	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Retained earnings:
Beginning balance	$	1,482.3	$	(279.4	)$	1,202.9
Net earnings		106.3		1.3		107.6
Ending balance		1,507.5		(278.1	)	1,229.4
Accumulated other comprehensive earnings (loss):
Beginning balance		(300.5	)	279.4		(21.1	)
Other comprehensive earnings (loss)		17.3		(1.3	)	16.0
Ending balance		(283.2	)	278.1		(5.1	)

Year Ended December 31, 2011	As Previously Reported		Effect of Accounting Change		As Adjusted for Accounting Change
Retained earnings:
Beginning balance	$	1,179.8	$	(233.7	)$	946.1
Net earnings (loss)		320.9		(45.7	)	275.2
Ending balance		1,482.3		(279.4	)	1,202.9
Accumulated other comprehensive earnings (loss):
Beginning balance		(221.8	)	233.7		11.9
Other comprehensive earnings (loss)		(78.7	)	45.7		(33.0	)
Ending balance		(300.5	)	279.4		(21.1	)