Rayovac 2010 Annual Report Download - page 89

aggregate of approximately 0.6 million shares of restricted common stock of New Spectrum to certain employees
and non-employee directors. All such shares are subject to time-based vesting. All vesting dates are subject to the
recipient’s continued employment, or service as a director, with us.
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, 2010 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 Statements of Financial Position included in this Annual
Report on Form 10-K, such as pension obligations. See Note 10, Employee Benefit Plans, of Notes to
Consolidated Financial Statements included in this Annual Report on Form 10-K for a more complete discussion
of our employee benefit plans (in millions):
Contractual Obligations
Payments due by Fiscal Year
2011 2012 2013 2014 2015 Thereafter Total
Debt:
Debt, excluding capital lease obligations ........... $20 $35 $39 $39 $39 $1,587 $1,759
Capital lease obligations(1) ...................... 11111 7 12
21 36 40 40 40 1,594 1,771
Operating lease obligations .......................... 35 33 27 19 15 49 178
Total Contractual Obligations ........................ $56 $69 $67 $59 $55 $1,643 $1,949
(1) Capital lease payments due by fiscal year include executory costs and imputed interest not reflected in the
Consolidated Statements of Financial Position included in this Annual Report on Form 10-K.
Other Commercial Commitments
The following table summarizes our other commercial commitments as of September 30, 2010, consisting
entirely of standby letters of credit that back the performance of certain of our entities under various credit
facilities, insurance policies and lease arrangements (in millions):
Other Commercial Commitments
Amount of Commitment Expiration by Fiscal Year
2011 2012 2013 2014 2015 Thereafter Total
Letters of credit .................................. $48 $2 $— $— $— $3 $53
Total Other Commercial Commitments ................ $48 $2 $— $— $— $3 $53
Critical Accounting Policies
Our Consolidated Financial Statements included in this Annual Report on Form 10-K have been prepared in
accordance with GAAP and fairly present our financial position and results of operations. We believe the
following accounting policies are critical to an understanding of our financial statements. The application of
these policies requires management’s judgment and estimates in areas that are inherently uncertain.
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