Rayovac 2004 Annual Report Download - page 49

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As of September 30, 2004, the potential change in fair value of outstanding commodity price derivative
instruments, assuming a 10% unfavorable change in the underlying commodity prices would be a loss of $1.6
million. The net impact on reported earnings, after also including the reduction in cost of one year’s purchases of
the related commodities due to the same change in commodity prices, would be a net gain of $0.5 million.
Forward-Looking Statements
We have made or implied certain forward-looking statements in this Annual Report on Form 10-K. All
statements, other than statements of historical facts included in this Annual Report, including the statements
under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and
“Business,” regarding our business strategy, future operations, financial position, estimated revenues, projected
costs, projected synergies, prospects, plans and objectives of management, as well as information concerning
expected actions of third parties, are forward-looking statements. When used in this Annual Report, the words
“anticipate,” “intend,” “plan,” “estimate,” “believe,” “expect,” “project,” “could,” “will,” “should,” “may” and
similar expressions are also intended to identify forward-looking statements, although not all forward-looking
statements contain such identifying words.
Since these forward-looking statements are based upon current expectations of future events and projections
and are subject to a number of risks and uncertainties, many of which are beyond our control, actual results or
outcomes may differ materially from those expressed or implied herein, and you should not place undue reliance
on these statements. Important factors that could cause our actual results to differ materially from those
expressed or implied herein include, without limitation:
• competitive promotional activity or spending by competitors or price reductions by competitors;
• the loss of, or a significant reduction in, sales to a significant retail customer;
• difficulties or delays in the integration of operations of acquired businesses;
• the introduction of new product features or technological developments by competitors and/or the
development of new competitors or competitive brands;
• the effects of general economic conditions, including inflation, fluctuation in raw material and labor
costs, and stock market volatility or changes in trade, monetary or fiscal policies in the countries where
we do business;
• our ability to develop and successfully introduce new products and protect our intellectual property;
• our ability to successfully implement, achieve and sustain manufacturing and distribution cost
efficiencies and improvements, and fully realize anticipated cost savings;
• the impact of unusual items resulting from the implementation of new business strategies, acquisitions
and divestitures or current and proposed restructuring activities;
• the cost and effect of unanticipated legal, tax or regulatory proceedings or new laws or regulations
(including environmental regulations);
• changes in accounting policies applicable to our business;
• interest rate and exchange rate fluctuations; and
• the effects of political or economic conditions or unrest in international markets.
Some of the above-mentioned factors are described in further detail in the immediately following section
entitled “Risk Factors.” You should assume the information appearing in this Annual Report is accurate only as
of September 30, 2004 or as otherwise specified, as our business, financial condition, results of operations and
prospects may have changed since that date. Except as required by applicable law, including the securities laws
of the United States and the rules and regulations of the SEC, we undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new information, future events or otherwise to
reflect actual results or changes in factors or assumptions affecting such forward-looking statement.
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