ENERGIZER 2000 ANNUAL REPOR T 16 Immediately prior to the spin-off, Ralston borrowed $478.0 through several interim funding facilities and assigned all repayment obliga- tions of those facilities to Energizer. In April and May, 2000, Energizer entered into separate financing agreements and repaid  the interim funding facilities. As of September 30, 2000, Energizer’s financing agreements include the following: private placement notes of $175.0 with maturities of 3 to 10 years; borrowings of $195.0 under revolving credit facilities, generally with 5 year maturities;  an agreement to sell domestic trade receivables as discussed  below; and other short-term borrowings. The average interest  rate on the domestic short-term and long-term debt is approximately 7.1% and 7.8%, respectively. Approximately $195.0 of the long- term debt has a variable interest rate. The interest rates on the  long-term debt range from 7.3% to 8.0%. Energizer maintains  total committed 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. On a historical basis, Energizer’s ratio of total indebtedness to  EBITDA was 1.5 to 1 and the ratio of EBIT to total interest expense was 11.2 to 1 as of September 30, 2000. On a pro forma basis, which assumes the post-spin debt was outstanding for the full year, these ratios would have been 1.5 to 1 and 6.8 to 1, respectively, at September 30, 2000. 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. Energizer received $100.0 of proceeds from this arrangement, which was used to repay interim funding facilities as discussed above. See Note 12 to the Consolidated Financial Statements for further discussion regarding the sale of accounts receivable. In September 2000, Energizer’s Board of Directors approved a share repurchase plan authorizing the repurchase of up to 5 million shares of Energizer’s common stock. Subsequent to year-end through November 10, 2000, approximately 1,150,000 shares of Energizer common stock had been purchased under the authorization. Energizer believes that cash flows from operating activities and  periodic borrowings under existing credit facilities will be adequate to meet short-term and long-term liquidity requirements prior to  the maturity of Energizer’s credit facilities, although no guarantee  can be given in this regard. Management recognizes that inflationary pressures may have an adverse effect on Energizer through higher asset replacement costs and related depreciation and higher material, labor and other costs. Energizer tries to minimize these effects through cost reductions  and productivity improvements as well as price increases to main- tain reasonable profit margins. It is management’s view, however, that inflation has not had a significant impact on operations in the three years ended September 30, 2000.  Energizer’s results are significantly impacted in the first quarter  of the fiscal year by the additional sales volume associated with  the Christmas holiday season, particularly in North America. First quarter sales accounted for 35%, 31% and 33% of total net sales  in 2000, 1999 and 1998, respectively. The first quarter percentage  in 2000 was also higher due to Y2K-driven demand. The operations of Energizer, like those of other companies engaged in the battery business, are subject to various federal, state, foreign and local laws and regulations intended to protect the public health and the environment. These regulations primarily relate to worker safety, air and water quality, underground fuel storage tanks and waste handling and disposal. Energizer has received notices from the U.S. Environmental Protection Agency, state agencies, and/or private parties seeking contribution, that it has been identified as a “potentially responsible party” (PRP) under the Comprehensive Environmental Response, Compensation and Liability Act, and may be required to share in the cost of cleanup with respect to nine federal “Superfund” sites. It may also be required to share in the cost of cleanup with respect to a ENVIRONMENTAL MATTERS SEASONAL FACTORS INFLATION