UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

 

Date of Report (date of earliest event reported)

 

July 21, 2015

 

LEXMARK INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

(859) 232-2000

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 

Item 2.02.

Results of Operations and Financial Condition

 

On July 21, 2015, Lexmark International, Inc. (the “Company” or “Lexmark”) issued a press release announcing its financial results for the second quarter ended June 30, 2015. The text of the press release announcing the financial results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

Item 2.05

Costs Associated with Exit or Disposal Activities

 

As part of Lexmark’s ongoing plans to improve the efficiency and effectiveness of its operations, the Company announced restructuring actions (the “2015 Restructuring Actions”) designed to increase profitability and operational efficiency. These Company-wide restructuring actions are expected to be broad-based but are primarily expected to capture the anticipated cost and expense synergies from the Kofax and ReadSoft acquisitions. Additionally, as the strong U.S. dollar continues to negatively impact the Company’s earnings, restructuring actions will also be taken to reduce cost and expense structure in the Imaging Solutions and Services (“ISS”) segment and corporate organization. Primary Company-wide impact will be general and administrative, marketing and development positions as well as the consolidation of regional facilities.

 

The 2015 Restructuring Actions are expected to impact about 500 positions worldwide over the next 18-month period with approximately one-third of the positions being shifted to low-cost countries. The 2015 Restructuring Actions will result in total pre-tax charges, including project costs, of approximately $55 million, with approximately $37 million and approximately $18 million to be incurred in 2015 and 2016, respectively. The Company expects the total cash costs of the 2015 Restructuring Actions to be approximately $55 million. The anticipated timing of cash outlays for the 2015 Restructuring Actions is approximately $13 million for 2015 and approximately $42 million in 2016 and thereafter.

 

Lexmark expects the 2015 Restructuring Actions to generate cash savings of approximately $2 million in 2015, approximately $55 million in 2016 and ongoing annual savings of approximately $65 million beginning in 2017, all of which will be cash savings. These ongoing savings should be split approximately 90% to Operating expense and 10% to Cost of revenue. The Company expects these actions to be complete by the end of 2016.

 

Item 9.01.

Financial Statements and Exhibits

 

(d)	Exhibits
	Exhibit No.	Description of Exhibit
	99.1	Press Release issued by Lexmark International, Inc. dated July 21, 2015.

 

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liability of that section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

The press release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations between the GAAP and non-GAAP financial measures contained in the press release in the financial statements attached thereto, which is attached hereto as Exhibit 99.1 and on the Company’s investor relations website at http://investor.lexmark.com.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

	Lexmark International, Inc.
	(Registrant)

 

July 21, 2015	By:	/s/ David Reeder
		David Reeder
		Vice President and Chief Financial Officer

 

 

 

 

EXHIBIT INDEX

 

 

Exhibit No.	Description of Exhibit
99.1	Press release issued by Lexmark International, Inc. dated July 21, 2015