Rayovac 2004 Annual Report Download - page 43

restrict or limit our ability to, among other things: (i) pay dividends or make other restricted payments, (ii) incur
additional indebtedness and issue preferred stock, (iii) create liens, (iv) incur dividend and other restrictions
affecting subsidiaries, (v) enter into mergers, consolidations, or sales of all or substantially all of our assets, (vi)
make asset sales, (vii) enter into transactions with affiliates, and (viii) issue or sell capital stock of our wholly
owned subsidiaries. Payment obligations of the notes are fully and unconditionally guaranteed on a joint and
several basis by all of our domestic subsidiaries, including ROV Holding, Inc. Our foreign subsidiaries, which do
not guarantee the payment obligations under the notes, are directly and wholly owned by ROV Holding, Inc.,
with the exception of Ningbo, which is 85% owned by us.
As of September 30, 2004, we were in compliance with all covenants associated with the Senior Credit
Facilities and Senior Subordinated Notes.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures, or capital resources that are material to investors.
Contractual Obligations & Other Commercial Commitments
Contractual Obligations
The following table summarizes our contractual obligations as of September 30, 2004 and the effect such
obligations are expected to have on our liquidity and cash flow in future periods. The table excludes other
obligations we have reflected on our Consolidated Balance Sheet, such as pension obligations (see Employee
Benefit Obligations, Note 11 in the Notes to Consolidated Financial Statements included in this Annual Report
on Form 10-K) (in millions):
Contractual Obligations
Payments due by Fiscal Year
2005 2006 2007 2008 2009 Thereafter Total
Debt:
Debt, excluding capital lease obligations ......... $ 22 $ 5 $ 4 $ 82 $343 $350 $ 806
Capital lease obligations ...................... 2 2 1 2 1 16 24
24 7 5 84 344 366 830
Operating lease obligations ........................ 15 14 12 10 9 39 99
Purchase obligations(1) .......................... 251 24 25 7 — — 307
Total Contractual Obligations ...................... $290 $45 $42 $101 $353 $405 $1,236
(1) Purchase obligations consist primarily of obligations to purchase specified quantities of raw materials and
finished products.
Other Commercial Commitments
The following table summarizes our other commercial commitments as of September 30, 2004, consisting
primarily of standby letters of credit which back the performance of certain of our entities under various credit
facilities and lease arrangements (in millions):
Other Commercial Commitments
Amount of Commitment Expiration by Fiscal Year
2005 2006 2007 2008 2009 Thereafter Total
Letters of credit .................................. $33 $— $— $— $— $— $33
Total Other Commercial Commitments ............... $33 $— $— $— $— $— $33
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