Fair value of financial instruments – Derivative instruments – 44 February 29, 2004 February 28, 2003 Carrying Fair Carrying Fair Amount Value Amount Value (in thousands) Assets: Cash and cash investments $ 37,136 $ 37,136 $ 13,810 $ 13,810 Accounts receivable $ 635,910 $ 635,910 $ 399,095 $ 399,095 Investment in marketable equity securities $ 14,945 $ 14,945 $ – $ – Currency forward contracts $ 69,993 $ 69,993 $ 23,573 $ 23,573 Liabilities: Notes payable to banks $ 1,792 $ 1,792 $ 2,623 $ 2,623 Accounts payable $ 270,291 $ 270,291 $ 171,073 $ 171,073 Long-term debt, including current portion $ 2,046,098 $ 2,181,782 $ 1,262,895 $ 1,307,976 Currency forward contracts $ 1,839 $ 1,839 $  – $  – To meet the reporting requirements of Statement of Financial Accounting Standards No. 107, “Disclosures about Fair Value of Financial Instruments,” the Company calculates the fair value of financial instruments using quoted market prices whenever avail- able. When quoted market prices are not available, the Company uses standard pricing models for various types of financial instru- ments (such as forwards, options, swaps, etc.) which take into account the present value of estimated future cash flows. The carrying amount and estimated fair value of the Company’s financial instruments are summarized as follows: The following methods and assumptions were used to estimate the fair value of each class of financial instruments: Cash and cash investments, accounts receivable and accounts payable:  The carrying amounts approximate fair value due to the short maturity of these instruments. Investment in marketable equity securities:  The fair value is estimated based on quoted market prices. Currency forward contracts:  The fair value is estimated based on quoted market prices. Notes payable to banks:  These instruments are variable interest rate bearing notes for which the carrying value approximates the fair value. Long-term debt: The senior credit facility is subject to variable interest rates which are frequently reset; accordingly, the carry- ing value of this debt approximates its fair value. The fair value of the remaining long-term debt, which is all fixed rate, is estimat- ed by discounting cash flows using interest rates currently available for debt with similar terms and maturities. As a multinational company, the Company is exposed to market risk from changes in foreign currency exchange rates and inter- est rates that could affect the Company’s results of operations and financial condition. Accordingly, the Company’s results of oper- ations are exposed to some volatility, which is minimized or eliminated whenever possible. The amount of volatility realized will vary based upon the effectiveness and level of derivative instruments outstanding during a particular period of time, as well as the currency and interest rate market movements during that same period. The Company enters into derivative instruments, including interest rate swaps, foreign currency forwards, and/or purchased for- eign currency options to manage interest rate and foreign currency risks. In accordance with Statement of Financial Accounting Standards No. 133 (“SFAS No. 133”), “Accounting for Derivative Instruments and Hedging Activities”, as amended, the Company recognizes all derivatives as either assets or liabilities on the balance sheet and measures those instruments at fair value. The fair val- ues of the Company’s derivative instruments change with fluctuations in interest rates and/or currency rates and are designed so that any changes in their values are offset by changes in the values of the underlying exposures. The Company’s derivative instruments are held solely to hedge economic exposures. The Company follows strict policies to manage interest rate and foreign currency risks, including prohibitions on derivative market-making or other speculative activities. As of February 29, 2004, and February 28, 2003, the Company did not have any interest rate swap agreements outstanding. As of February 29, 2004, and February 28, 2003, the Company had foreign exchange contracts outstanding with a notional value of $735.8 million and $11.6 million, respectively.