Rayovac 2015 Annual Report Download - page 76

$570.0 million, and issuance of 6.375% Notes of $520.0 million; (ii) extinguishment of 9.5% Notes of
$950.0 million and repayment of former senior credit facilities of $571.1 million; (iii) payment of debt issuance
costs of $60.9 million; (iv) dividend payment to SBH of $88.7 million; (v) payment of share-based tax
withholdings of employees for vested stock awards of $20.1 million; (vi) proceeds from a $28.6 million
contribution from parent and (ix) $11.9 million of proceeds from other financing activities.
Capital Expenditures
Capital expenditures for the Company totaled $89.1 million, $73.3 million and $82.0 million for the years
ended September 30, 2015, 2014, and 2013, respectively. We expect to make investments in capital projects
similar to historical levels, as well as incremental investments in high return cost reduction projects slightly
above historical levels.
Depreciation and Amortization
Depreciation and amortization for the Company totaled $170.0 million, $157.6 million and $139.9 million
for the years ended September 30, 2015, 2014, and 2013, respectively. The increase in depreciation and
amortization for the year ended September 30, 2015 is due to the recognition of property, plant and equipment
and definite lived intangible assets from the acquisitions of AAG, European IAMS and Eukanuba, Salix and Tell.
The increase in depreciation and amortization for the year ended September 30, 2014 is due to the recognition of
property, plant and equipment and definite lived intangible assets from the acquisition of Liquid Fence.
Indebtedness
Refer to Note 9, “Debt” of Notes to Consolidated Financial Statements included elsewhere in this Annual
Report on for additional information.
In addition to the outstanding principal on our debt obligations, we have annual interest payment obligations
of $202.7 million in the aggregate. This includes interest under our: (i) 6.375% Notes of approximately
$33.2 million; (ii) 6.625% Notes of approximately $37.8 million (iii) 6.125% Notes of approximately
$15.3 million; (iv) 5.75% Notes of $57.5 million and (iv) Term Loans of $58.9 million. Interest on the
6.375% Notes, the 6.625% Notes and the 6.75% Notes is payable semi-annually in arrears and interest under the
Term Loan and the Revolver Facility is payable on various interest payment dates as provided in the Senior
Credit Agreement. We are required to pay certain fees in connection with our outstanding debt obligations
including a quarterly commitment fee of up to 0.50% on the unused portion of the Revolver Facility and certain
additional fees with respect to the letter of credit sub-facility under the Revolver Facility.
At September 30, 2015, we were in compliance with all covenants under the Senior Credit Agreement, the
indenture governing both the 6.375% Notes and the 6.625% Notes, the indenture governing the 6.75% Notes, and
the indenture governing the 5.75% Notes. See Item 1A. Risk Factors, for further discussion of the risks
associated with our ability to service all of our existing indebtedness, our ability to maintain compliance with
financial and other covenants related to our indebtedness and the impact of the current economic crisis.
Credit Ratings
The Company’s access to the capital markets and financing costs in those markets may depend on the credit
ratings of the Company when it is accessing the capital markets. None of the Company’s current borrowings are
subject to default or acceleration as a result of a downgrading of credit ratings, although a downgrade of the
Company’s credit ratings could increase fees and interest charges on future borrowings.
Equity
During the year ended September 30, 2015, SBH granted 0.6 million shares of restricted stock units to our
employees and our directors. All vesting dates are subject to the recipient’s continued employment, except as
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