Lexmark International (Lexmark International) Long-Term Debt & Capital Lease Obligation : $1,018 Mil (As of Sep. 2016)

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What is Lexmark International Long-Term Debt & Capital Lease Obligation?

Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Lexmark International's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $1,018 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Lexmark International's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2016 was $1,018 Mil. Lexmark International's Total Assets for the quarter that ended in Sep. 2016 was $3,637 Mil. Lexmark International's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2016 was 0.28.

Lexmark International's LT-Debt-to-Total-Asset increased from Sep. 2015 (0.28) to Sep. 2016 (0.28). It may suggest that Lexmark International is progressively becoming more dependent on debt to grow their business.

Lexmark International Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Lexmark International's Long-Term Debt & Capital Lease Obligation can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Lexmark International Long-Term Debt & Capital Lease Obligation Chart

Lexmark International Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

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Dec15

Long-Term Debt & Capital Lease Obligation

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649.30

299.60

699.60

699.70

1,061.30

Lexmark International Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Long-Term Debt & Capital Lease Obligation	Get a 7-Day Free Trial															1,096.80	1,061.30	992.00	988.70	1,017.90

Lexmark International Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.

Lexmark International (NYSE:LXK) Long-Term Debt & Capital Lease Obligation Explanation

Lexmark International's LT-Debt-to-Total-Asset ratio for the quarter that ended in Sep. 2016 is calculated as:

LT-Debt-to-Total-Asset (Q: Sep. 2016 )	=	Long-Term Debt & Capital Lease Obligation (Q: Sep. 2016 )	/	Total Assets (Q: Sep. 2016 )
	=	1017.9	/	3637.3
	=	0.28

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the companys earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet

Lexmark International Long-Term Debt & Capital Lease Obligation Related Terms

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Lexmark International (Lexmark International) Business Description

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Address

Website

http://www.lexmark.com

Lexmark International Inc is a Delaware corporation, formed in July 1990. On November 15, 1995, it completed its initial public offering of Class A Common Stock. The Company is a developer, manufacturer and supplier of printing, imaging, device management, managed print services (MPS), document workflow and, more recently, business process and content management solutions. The Company operates in the office printing and imaging, enterprise content management (ECM), business process management (BPM), document output management (DOM), intelligent data capture and search software markets. Its products include laser printers and multifunction devices, dot matrix printers and the associated supplies/solutions/services, as well as ECM, BPM, DOM, intelligent data capture, search and web-based document imaging and workflow software solutions and services. It develops and ownsof the technology for its printing and imaging products and its software related to MPS and content and process management solutions. The Company is managed along two segments: Imaging Solutions and Services (ISS) and Perceptive Software. ISS offers a portfolio of monochrome and color laser printers and laser MFPs, as well as supplies, software applications, software solutions and MPS to help businesses efficiently capture, manage and access information. ISS laser products are core building blocks for enabling information on demand. They are designed to enable intelligent document capture in addition to delivering high-quality printed output on a variety of media types and sizes. When combined with document management and business process workflow software, from Perceptive Software, these products accelerate productivity by connecting people with the information they need. Its products include Monochrome Laser, Color Laser, Inkjet MFPs and AIOs, Dot Matrix Products, and MPS and Customer Support Services. Its competitors in this segment include Hewlett-Packard, Canon, Ricoh, Xerox, Brother, Konica Minolta, Kyocera, Okidata and Samsung. ISS operates manufacturing control centers in Lexington, Kentucky; Shenzhen, China; and Geneva, Switzerland; and has company-owned manufacturing sites in Boulder, Colorado and Juarez, Mexico. The Perceptive Software sgment offers a complete suite of ECM, BPM, DOM, intelligent data capture, search software and medical imaging VNA software products and solutions. Perceptive Software capture, content, search and BPM software products and solutions, enable users to capture, manage, and collaborate on important documents, information, and business processes, protect data integrity throughout its lifecycle and access precise content in the context of the users everyday business processes. These components are developed and maintained by Perceptive Software. Its solutions are Designed from Perceptive Softwares software platform, including the capture, content, process and search suites, Perceptive Software offers industry specific solutions of

Executives

Stephen R Hardis	director	C/O MARSH & MCLENNAN COMPANIES, INC., 1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Michael J Maples	director	2208 WINDSOR ROAD, AUSTIN TX 78703
Reynolds Bish	officer: Vice President	C/O IOMEGA CORPORATION, 10955 VISTA SORRENTO PARKWAY, SAN DIEGO CA 92130
Jeri L Isbell	officer: VP of Human Resources	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
Paul A Rooke	director, officer: Chairman and CEO	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
William R Fields	director	740 WEST NEW CIRCLE ROAD, LEXINGTON KY 40550
Kathi P Seifert	director	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
Jared L Cohon	director
Robert Jr Holland	director	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
Webster Roy Dunbar	director	5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209
Sandra L Helton	director	711 HIGH STREET, DES MOINES IA 50392-0300
J Edward Coleman	director	UNISYS CORPORATION, 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422
Montupet Jean Paul L	director	PARTNERRE LTD, WELLESLEY HOUSE 90 PITTS BAY RD, PEMBROKE BERMUDA D0 HM 08
Gamble John W Jr	officer: EVP & CFO	ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
Teresa Beck	director	1681 SOUTH MOHAWK WAY, SALT LAKE CITY UT 84108