Energizer 2011 Annual Report Download - page 87

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ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share and percentage data)
acquisition, of which $1.6 is expected to be spent in fiscal 2012. This accrual is not measured on a discounted basis. In
addition, the Company has accrued environmental costs included in the ASR opening balance sheet at the time of acquisition of
approximately $13, of which approximately $1 is expected to be spent in fiscal 2012. The ASR liability was measured using a
discount rate of 4%. It is difficult to quantify with certainty the cost of environmental matters, particularly remediation and
future capital expenditures for environmental control equipment. Nevertheless, based on information currently available, the
Company believes the possibility of material environmental costs in excess of the accrued amount is remote.
Certain of the Company’s products are subject to regulation by the United States Food and Drug Administration (FDA),
including tampons and sun care products.
Legal Proceedings – The Company and its subsidiaries are parties to a number of 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, the Company 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, are not reasonably likely to be material to the Company’s financial position, results of operations, or
cash flows, taking into account established accruals for estimated liabilities.
(17) Other Commitments and Contingencies
Total rental expense less sublease rental income for all operating leases was $32.6, $30.5 and $32.2 in fiscal 2011, 2010 and
2009, respectively. Future minimum rental commitments under noncancellable operating leases in effect as of September 30,
2011, were $27.8 in fiscal 2012, $21.1 in fiscal 2013, $17.0 in fiscal 2014, $13.1 in fiscal 2015, $11.3 in fiscal 2016 and $30.8
thereafter. These leases are primarily for office facilities.
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