Sunbeam 2007 Annual Report Download - page 92

11. Commitments and Contingencies
Operating Leases
The Company conducts its operations in various leased facilities under leases that are classified as operating
leases for financial statement purposes. Certain leases provide for payment of real estate taxes, common area
maintenance, insurance and certain other expenses. Lease terms may have escalating rent provisions and rent
holidays which are expensed on a straight line basis over the term of the lease, and expire at various dates
through 2021. Also, certain equipment used in Company operations is leased under operating leases. Operating
lease commitments at December 31, 2007 are as follows (in millions):
Years Ended December 31, Amount
2008 .............................................................. $ 55.2
2009 .............................................................. 41.3
2010 .............................................................. 34.2
2011 .............................................................. 27.0
2012 .............................................................. 21.5
2013 and thereafter ................................................... 88.6
Total .......................................................... $267.8
The fixed operating lease commitments detailed above assume that the Company continues the leases
through their initial lease terms. Rent expense, including equipment rentals, was $72, $53.2 and $41.3 for 2007,
2006 and 2005, respectively.
Contingencies
The Company is involved in various legal disputes and other legal proceedings that arise from time to time
in the ordinary course of business. In addition, the Company or certain of its subsidiaries have been identified by
the United States Environmental Protection Agency (“EPA”) or a state environmental agency as a Potentially
Responsible Party (“PRP”) pursuant to the federal Superfund Act and/or state Superfund laws comparable to the
federal law at various sites. Based on currently available information, the Company does not believe that the
disposition of any of the legal or environmental disputes the Company or its subsidiaries is currently involved in
will have a material adverse effect upon the Company’s financial condition, results of operations or cash flows. It
is possible, that as additional information becomes available, the impact on the Company of an adverse
determination could have a different effect.
Environmental
The Company’s operations are subject to certain federal, state, local and foreign environmental laws and
regulations in addition to laws and regulations regarding labeling and packaging of products and the sales of
products containing certain environmentally sensitive materials.
In addition to ongoing environmental compliance at its operations, the Company also is actively engaged in
environmental remediation activities, the majority of which relate to divested operations and sites. The Company
or various of its subsidiaries have been identified by the EPA or a state environmental agency as a PRP pursuant
to the federal Superfund Act and/or state Superfund laws comparable to the federal law at various sites
(collectively, the “Environmental Sites”). The Company has established reserves to cover the anticipated
probable costs of investigation and remediation, based upon periodic reviews of all sites for which they have, or
may have, remediation responsibility. The Company accrues environmental investigation and remediation costs
when it is probable that a liability has been incurred, the amount of the liability can be reasonably estimated and
their responsibility for the liability is established. Generally, the timing of these accruals coincides with the
earlier of formal commitment to an investigation plan, completion of a feasibility study or a commitment to a
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