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SPECTRUM BRANDS | 2006 ANNUAL REPORT 39
Equity Financing Activities
During 2006, we granted approximately 1.0 million shares of
restricted stock. Of these grants, approximately 0.4 million shares
are time-based and vest on a pro rata basis over either a three- or
four-year period, and 0.4 million shares are performance-based
and vest upon achievement of certain performance goals. If the
performance targets are not met, the performance component of a
restricted stock award will automatically vest one year after the
originally scheduled vesting date, effectively making the award
time-based. The remaining 0.2 million shares vest at specifi c dates
throughout 2008 and 2009. All vesting dates are subject to the
recipient’s continued employment with us. The total market value
of the restricted shares on the date of grant was approximately
$18.9 million which has been recorded as unearned restricted
stock compensation, a separate component of shareholders’ equity.
Unearned compensation is being amortized to expense over the
appropriate vesting period.
During 2006, we also issued a minimal number of shares of
common stock associated with the exercise of stock options with
an aggregate cash exercise value of approximately $0.4 million.
We recognized a tax benefi t of approximately $0.1 million asso-
ciated with the exercise of these stock options, which was
accounted for as an increase in additional paid-in capital in our
Consolidated Balance Sheets.
2006 Form 10-K Annual Report
Spectrum Brands, Inc.
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 fi nancial
condition, changes in fi nancial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources
that are material to investors.
Contractual Obligations and Other Commercial Commitments
Contractual Obligations
The following table summarizes our contractual obligations as of September 30, 2006 and the effect such obligations are expected to have
on our liquidity and cash fl ow in future periods. The table excludes other obligations we have refl ected on our Consolidated Balance Sheet, such
as pension obligations (see Note 12, Employee Benefi t Obligations, of Notes to Consolidated Financial Statements included in this Annual
Report on Form 10-K) (in millions):
Contractual Obligations
Payments due by Fiscal Year
2007 2008 2009 2010 2011 Thereafter Total
Debt:
Debt, excluding capital lease obligations $ 42 $ 9 $ 8 $ 8 $242 $1,954 $2,263
Capital lease obligations(1) 1 1 1 – – 11 14
43 10 9 8 242 1,965 2,277
Operating lease obligations 29 25 21 19 17 58 169
Purchase obligations/other(2) 222 3 – – – – 225
Total Contractual Obligations $294 $38 $30 $27 $259 $2,023 $2,671
(1) Capital lease payments due by fi scal year include executory costs and imputed interest not refl ected in the Consolidated Balance Sheets.
(2) Primarily represents obligations to purchase specifi ed quantities of raw materials and fi nished products.