Energizer 2001 Annual Report Download - page 50

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
(Dollars in millions except per share data)
These accruals are adjusted periodically as assessments take place and remediation eÅorts progress, or as
additional technical or legal information becomes available.
It is diÇcult to quantify with certainty the potential Ñnancial impact of actions regarding expenditures for
environmental matters, particularly remediation, and future capital expenditures for environmental control
equipment. Nevertheless, based upon the information currently available, Energizer believes that its ultimate
liability arising from such environmental matters, taking into account established accruals of $5.9 at
September 30, 2001 for estimated liabilities, should not be material to its Ñnancial position. Such liability
could, however, be material to results of operations or cash Öows for a particular quarter or year.
Legal Proceedings Ó Energizer previously disclosed that Zinc Products Company, a division of Alltrista
Corp., a supplier of zinc cans used in the manufacture of batteries, Ñled suit against Energizer, claiming
breach of contract when Energizer closed its Fremont, Ohio plant. In January of 2001, the suit was dismissed
upon a settlement payment, in an immaterial amount, by Energizer.
In October of 2001, Energizer entered into separate settlement agreements with Strategic Electronics and
Duracell related to outstanding contract claims associated with Duracell's and Energizer's on-label battery
testers. Under the terms of the agreements, mutual releases of all outstanding claims were given, and
Energizer was licensed to utilize any applicable patents related to its on-label battery tester.
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 these legal matters are in preliminary stages and involve complex issues of law and fact, and may
proceed for protracted periods of time. The amount of 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 Ñnancial position, taking into account
established accruals for estimated liabilities. These liabilities, however, could be material to results of
operations or cash Öows for a particular quarter or year.
(18) Other Commitments and Contingencies
Future minimum rental commitments under noncancellable operating leases in eÅect as of September 30,
2001 were: 2002 Ó $15.7, 2003 Ó $9.9, 2004 Ó $8.5, 2005 Ó $7.8, 2006 Ó $7.7 and thereafter Ó $31.7. These
leases are primarily for oÇce facilities.
Total rental expense for all operating leases was $17.9, $17.5 and $21.5 in 2001, 2000 and 1999,
respectively.
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