Rayovac 2011 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2011 Rayovac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 170

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170

Contractual Obligations & Other Commercial Commitments
Contractual Obligations
The following table summarizes our contractual obligations as of September 30, 2011 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
2012 2013 2014 2015 2016 Thereafter Total
Debt:
Debt, excluding capital lease obligations(1) ........ $14 $12 $ 7 $ 7 $505 $ 995 $1,540
Capital lease obligations(2) ..................... 4432 2 23 38
18 16 10 9 507 1,018 1,578
Operating lease obligations ......................... 31 24 18 12 11 28 124
Total Contractual Obligations(3) ..................... $49 $40 $28 $21 $518 $1,046 $1,702
(1) On November 2, 2011, we offered $200 million aggregate principal amount of 9.5% Notes as additional
notes to the already outstanding $750 million aggregative principal amount of existing notes. The additional
notes will vote together with the 9.5% Notes.
(2) 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.
(3) At September 30, 2011, our balance sheet 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, 2011, 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
2012 2013 2014 2015 2016 Thereafter Total
Letters of credit .................................. $28 $7 $— $— $— $3 $38
Total Other Commercial Commitments ................ $28 $7 $— $— $— $3 $38
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.
74