Lexmark
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ECONOMIC PERFORMANCE AND MARKET PRESENCE

Lexmark International, Inc. (NYSE: LXK) provides businesses of all sizes with a broad range of printing and imaging products, software, solutions and services that help customers to print less and save more. Perceptive Software, a stand-alone software business within Lexmark, is a leading provider of enterprise content management software that helps organizations effortlessly manage the entire lifecycle of their documents and content, simplifying their business processes, and fueling greater operational efficiency. In 2010, Lexmark sold products in more than 170 countries and reported more than $4 billion in revenue. Lexmark's financial performance has direct impact on individual stakeholders — employees, customers, investors — as well as, supplier companies, communities and governments.

For information regarding Lexmark's organizational profile; direct economic value generated and distributed; the financial implications, risks and opportunities due to climate change; and the coverage of the defined benefit plan obligations, please refer to the current 10-K in the investor relations section of the Lexmark Web site. Lexmark received no significant financial assistance from the government in 2010, and government is not present in the shareholding structure.

INDIRECT ECONOMIC IMPACTS

Lexmark’s presence has positive impacts on the economies of the communities surrounding our locations through our efforts to provide above-average employee compensation and use of local resources where possible. A significant portion of Lexmark employees – including those in the United States, Mexico and the Philippines – work in locations that have minimum-wage rules. Lexmark is committed to rewarding our employees for their hard work. Lexmark and its subsidiaries around the world offer salaries and benefit plans that are highly competitive in each of the countries in which we operate. Plans are benchmarked frequently to ensure that compensation and salary levels remain competitive and allow us to attract and retain employees in each region. These efforts to provide above-average employee compensation have a favorable economic impact on the markets in which we do business.

SOCIALLY RESPONSIBLE INVESTING

Investors today are not only seeking companies that perform well financially but also those that perform well through the lens of social responsibility. In particular, companies are expected to be conscious of the environment, highly regard human rights and be good citizens to their neighbors. Socially responsible investing is coming to be the norm. In keeping with this trend, Lexmark has three ongoing investment agreements which include human rights clauses, specifically prohibiting investments in companies which engage in discrimination based upon race, color, religion, gender, sexual orientation, gender identity, national origin, disability, age or veteran status.

Lexmark engaged in one non-traditional significant investment agreement – the acquisition of Perceptive Software – in 2010. The significance of investment agreements is determined based upon their net asset value.

Like Lexmark, Perceptive upholds the human rights of its employees and treats them with dignity and respect as understood by the international community. Perceptive closely monitors its operations to ensure that adherence to accepted standards regarding freely chosen employment, child labor, discrimination, harsh or inhumane treatment, minimum wage and freedom of association. Perceptive has not been cited for any human rights violation.