Energizer 2000 Annual Report Download - page 44

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ENERGIZER 2000 ANNUAL REPORT
42
The U.S. Patent Office continues to review the interference claims
between Strategic Electronics (Energizer’s licensor) and Duracell
relating to use of the on-battery tester. A decision is not expected for
several years. An earlier decision, which denied Energizer’s separate
patent claims and those of Eastman Kodak Company (which are
licensed to Duracell) was appealed to the federal district court for
Washington, D.C. on February 2, 1998. Kodak filed a similar appeal,
naming Energizer as a defendant on January 29, 1998. In a related
matter, Strategic Electronics filed a declaratory judgment suit on
September 9, 1999 in the federal district court for the Central District
of California seeking additional payments of approximately $1.0
under the license. Energizer filed a motion to dismiss, which was
granted in the spring of 2000.
Energizer and its subsidiaries are parties to a number of other legal
proceedings in various jurisdictions arising out of the operations of
the Energizer business.
Many of the foregoing legal matters are in preliminary stages and
involve complex issues of law and fact, and may proceed for pro-
tracted periods of time. The amount of alleged liability, if any, from
these proceedings cannot be determined with certainty. However,
based upon present information, Energizer believes that its ultimate
liability, if any, arising from pending legal proceedings, asserted
legal claims and known potential legal claims which are likely to
be asserted, should not be material to Energizer’s financial position,
taking into account established accruals for estimated liabilities.
These liabilities, however, could be material to results of operations
or cash flows for a particular quarter or annual period.
(17) OTHER COMMITMENTS AND CONTINGENCIES
Lease Commitments
– Future minimum rental commit-
ments under noncancellable operating leases in effect as
of September 30, 2000 were: 2001 – $16.7; 2002 – $9.5;
2003 – $8.4; 2004 – $7.4; 2005 – $7.1; and thereafter – $34.3.
Total rental expense for all operating leases was $17.5, $21.5 and
$19.7 in 2000, 1999 and 1998, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (Dollars in millions except per share data)