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10-K/A
ACETO CORP filed this Form 10-K/A on 11/09/2017
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Off-Balance Sheet Arrangements and Commitments and Contingencies

 

We have no material financial commitments other than those under bank borrowings, convertible debt, operating lease agreements, letters of credit and unconditional purchase obligations. We have certain contractual cash obligations and other commercial commitments that will affect our short and long-term liquidity. At June 30, 2017, we had no significant obligations for capital expenditures.

 

At June 30, 2017, contractual cash obligations and other commercial commitments were as follows:

 

 

Contractual Obligations  Payments Due and/or
Amount of Commitment
(Expiration per Period)
 
  

Total

   Less than
1 year
   1-3
Years
   3-5
Years
   After
5 years
 
                     
Long-term debt obligations (a)  $353,666   $14,466   $28,932   $310,268   $- 
                          
Interest on long term debt obligations (b)   9,583    2,875    5,750    958    - 
                          
Operating leases   14,868    1,673    4,094    2,357    6,744 
                          
Standby letters of credit   1,737    1,737    -    -    - 
                          
Unconditional purchase obligations   61,381    61,381    -    -    - 
                          
Total  $441,235   $82,132   $38,776   $313,583   $6,744 

 

 

(a) Long-term debt obligations include Convertible Senior Notes due November 2020 and assumes that no notes are converted prior to the November 1, 2020 maturity date. (See Note 9, Debt, in the Notes to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K.). Long-term debt obligations also include various loans. Interest on the loans are not included in the above table as the majority of the debt is variable in nature. As of June 30, 2017, interest on these variable loans ranged from 3.21% to 3.45%.

 

(b) Represents 2% interest due semi-annually on our Convertible Senior Notes due November 2020 and assumes all interest is paid and the notes are not converted prior to the November 1, 2020 due date. This amount could change if any noteholders convert their notes prior to the due date.

 

 

Other significant commitments and contingencies include the following:

 

1.A subsidiary of ours markets certain agricultural protection products which are subject to the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA). FIFRA requires that test data be provided to the EPA to register, obtain and maintain approved labels for pesticide products. The EPA requires that follow-on registrants of these products compensate the initial registrant for the cost of producing the necessary test data on a basis prescribed in the FIFRA regulations. Follow-on registrants do not themselves generate or contract for the data. However, when FIFRA requirements mandate that new test data be generated to enable all registrants to continue marketing a pesticide product, often both the initial and follow-on registrants establish a task force to jointly undertake the testing effort. We are presently a member of several such task force groups, which requires payments for such memberships. In addition, in connection with our agricultural protection business, we plan to acquire product registrations and related data filed with the United States Environmental Protection Agency to support such registrations and other supporting data for several products. The acquisition cost of these product registrations and related data filed with the United States Environmental Protection Agency as well as payments to various task force groups could approximate $2,357 through fiscal 2017, of which $0 has been accrued as of June 30, 2017 and June 30, 2016.

 

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