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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (Dollars in millions except per share data) 

## (10) DEFINED CONTRIBUTION PLAN 

Energizer sponsors employee savings plans, which cover substan- tially all U.S. employees. Energizer matches 50% of participants’ before-tax contributions up to 6% of compensation. In addition, participants can make after-tax contributions of 1% of compensation into the savings plan. This participant after-tax contribution is matched within the pension plan at 325%. Subsequent to the spin- off from Ralston, Energizer charged $1.8 to expense in fiscal 2000. 

Prior to the spin-off, substantially all regular Energizer employees in the United States were eligible to participate in the Ralston- sponsored defined contribution plans. In fiscal 1999, Ralston amended the contribution structure of the plans. Prior to January 1, 1999, Ralston generally matched 100% of participants’ before-tax contributions up to 6% of compensation for employees hired prior to July 1, 1993. For employees hired on or after July 1, 1993, Ralston matched before-tax participant contributions in increasing 20% increments for each year of service. On January 1, 1999 and thereafter, Ralston matched 25% of participants’ before-tax contribu- tions up to 4% of compensation. In addition, participants could make after-tax contributions of 1% or 1.75% of compensation into the savings plan. This participant after-tax contribution was matched within the pension plan at 300%. Amounts charged to expense are shown in the table below. Prior to the spin-off, Energizer recorded costs as allocated by Ralston. The amount of such costs was $1.2 for the six months ended March 31, 2000, $3.0 in 1999 and $8.2 in 1998. 

## (11) DEBT 

Immediately prior to the spin-off, Ralston borrowed $478.0 through several interim-funding facilities and assigned all repayment obligations of those facilities to Energizer. In April and May 2000, Energizer entered into separate financing agreements, including an agreement to sell domestic trade receivables as discussed in Note 12 below, and repaid the interim-funding facilities. 

Notes payable at September 30, 2000 and 1999, consisted of notes payable to financial institutions with original maturities of less than one year of $135.0 and $118.5, respectively, and had a weighted- average interest rate of 7.9% and 7.3%, respectively. 

The detail of long-term debt at September 30 is as follows. 

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Energizer maintains total committed long-term debt facilities of $625.0, of which $255.0 remained available as of September 30, 2000. 

Under the terms of the facilities, the ratio of Energizer’s total indebtedness to its EBITDA cannot be greater than 3 to 1 and the ratio of its EBIT to total interest expense must exceed 3 to 1. 

Aggregate maturities on all long-term debt are as follows: Year ending September 30, 2003 – $15.0; 2005 – $ 305.0; and thereafter – $50.0. 

## (12) SALE OF ACCOUNTS RECEIVABLE 

Energizer entered into an agreement to sell, on an ongoing basis, a pool of domestic trade accounts receivable to a wholly owned bankruptcy-remote subsidiary of Energizer. The subsidiary qualifies as a Special Purpose Entity (SPE) under SFAS 125, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.” The SPE’s sole purpose is the acquisition of receivables 

