Commitments and Contingencies

9 Months Ended

Apr. 30, 2013

Commitments and Contingencies

Commitments and Contingencies

Note 12. Commitments and Contingencies

Long-term contractual obligations

As of April 30, 2013, aggregate annual required payments over the remaining fiscal year, the next four years and thereafter under our contractual obligations that have long-term components were as follows:

	Three Months
	Ending
	July 31,		Year Ending July 31,
	2013		2014		2015		2016		2017		Thereafter		Total
	(Amounts in thousands)
Maturities of the credit facilities	$	2,500	$	10,000	$	10,000	$	10,000	$	72,500	$	—	$	105,000
Expected interest payments under the credit facilities (1)	626		2,353		2,112		1,871		5		—		6,967
Minimum commitments under noncancelable operating leases	923		3,586		2,776		1,868		1,260		4,756		15,169
Acquisition payable	—		—		255		—		—		—		255
Compensation agreements	1,092		3,786		1,496		350		75		—		6,799
Deferred compensation and other	15		54		55		43		42		63		272
Total contractual obligations	$	5,156	$	19,779	$	16,694	$	14,132	$	73,882	$	4,819	$	134,462

(1) The expected interest payments under both the term and revolving credit facilities reflect interest rates of 2.41% and 2.40%, which were our weighted average interest rates on outstanding borrowings at April 30, 2013 and reflects the impact of our interest rate swap agreements.

Operating leases

Minimum commitments under operating leases include minimum rental commitments for our leased manufacturing facilities, warehouses, office space and equipment.

Acquisition payable

In connection with the Byrne Acquisition, we agreed that if the aggregate value of the $10,000,000 of Cantel common stock issued as part of the consideration used to acquire the Byrne Medical Business is less than $10,000,000 on July 31, 2014, we will pay to BMI in cash or stock (at our option) an amount equal to the difference between $10,000,000 and the then value of the shares (based on the closing price of Cantel common stock on the NYSE on July 31, 2014), subject to certain conditions and limitations. Accordingly, at April 30, 2013, we have estimated $255,000 as the fair value of this payable, as more fully described in Notes 3 and 6 to the Condensed Consolidated Financial Statements.

Compensation agreements

We have previously entered into various severance contracts with executives of the Company, including our Corporate executive officers and our subsidiary Chief Executive Officers, which define certain compensation arrangements relating to various employment termination scenarios. In conjunction with the acquisitions of the Byrne Medical Business on August 1, 2011, the SPS Business on November 1, 2012 and the Eagle Pure Water Business on December 31, 2012, we entered into three-year employment agreements with certain executive officers of the acquired businesses.

Deferred compensation and other

Deferred compensation and other includes deferred compensation arrangements for certain former Medivators directors and officers and is recorded in other long-term liabilities. Additionally, deferred compensation and other includes an insurance related claim and minimum commitments under noncancelable capital leases.