Rayovac 2008 Annual Report Download - page 65

Table of Contents
Index to Financial Statements
Contractual Obligations & Other Commercial Commitments
Contractual Obligations
The following table summarizes our contractual obligations as of September 30, 2008 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 Sheets included in this Annual Report on
Form 10-K, such as pension obligations. See Note 12, 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
2009 2010 2011 2012 2013 Thereafter Total
Debt:
Debt, excluding capital lease obligations $ 48 $ 14 $ 93 $ 14 $ 1,291 $ 1,050 $ 2,510
Capital lease obligations(1) 2 1 1 1 1 13 19
50 15 94 15 1,292 1,063 2,529
Operating lease obligations 34 32 28 27 22 73 216
Total Contractual Obligations $ 84 $ 47 $ 122 $ 42 $ 1,314 $ 1,136 $ 2,745
(1) Capital lease payments due by fiscal year include executory costs and imputed interest not reflected in the Consolidated Balance Sheets included in this
Annual Report on Form 10-K.
Other Commercial Commitments
The following table summarizes our other commercial commitments as of September 30, 2008, 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
2009 2010 2011 2012 2013 Thereafter Total
Letters of credit $ 53 $ — $ — $ — $ — $ — $ 53
Total Other Commercial Commitments $ 53 $ — $ — $ — $ — $ — $ 53
Critical Accounting Policies
Our Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America
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.
Valuation of Assets and Asset Impairment
We evaluate certain long-lived assets to be held and used, such as property, plant and equipment and definite-lived intangible assets for impairment based
on the expected future cash flows or earnings projections associated with such assets. Impairment reviews are conducted at the judgment of management when it
believes that a change in circumstances in the business or external factors warrants a review. Circumstances such as the discontinuation of a product or product
line, a sudden or consistent decline in the sales forecast for a product,
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008