Rayovac 2014 Annual Report Download - page 72

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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, 2014 and the effect such
obligations are expected to have on our liquidity and cash flow in future periods (in millions):
Contractual Obligations
Payments due by Fiscal Year
2015 2016 2017 2018 2019 Thereafter Total
Debt, excluding capital lease obligations .................. $ 90 $ 69 $552 $ 8 $761 $1,422 $2,902
Interest payments excluding capital lease obligations . . . . . . . . 145 140 138 121 119 165 828
Capital lease obligations(1) ............................. 13 13 13 9 9 87 144
Operating lease obligations ............................. 37 33 29 19 14 32 164
Employee benefit obligations(2) ......................... 12 11 11 11 12 65 122
Total Contractual Obligations(3) ......................... $297 $266 $743 $168 $915 $1,771 $4,160
(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.
(2) Employee benefit obligations represent the sum of our estimated future minimum required funding for our
qualified defined benefit plans based on actuarially determined estimates and projected future benefit
payments from our unfunded postretirement plans. For additional information about our employee benefit
obligations, see Note 10, “Employee Benefit Plans,” of Notes to Consolidated Financial Statements,
included in this Annual Report on Form 10-K.
(3) At September 30, 2014, our Consolidated Statements of Financial Position includes tax reserves for
uncertain tax positions. However, it is not possible to predict or estimate the timing of payments for these
obligations. The Company cannot predict the ultimate outcome of income tax audits currently in progress
for certain of our companies; however, it is reasonably possible that during the next 12 months, some
portion of our unrecognized tax benefits could be recognized.
Other Commercial Commitments
The following table summarizes our other commercial commitments as of September 30, 2014, 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
2015 2016 2017 2018 2019 Thereafter Total
Letters of credit .................................. $39 $15 $— $— $— $— $54
Total Other Commercial Commitments ................ $39 $15 $— $— $— $— $54
Critical Accounting Policies
Our Consolidated Financial Statements included in this Annual Report on Form 10-K have been prepared in
accordance with U.S. 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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