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Foreign currency forward contracts and foreign currency options are used to hedge existing foreign currency denominated assets and liabilities, forecasted foreign currency denominated sales both to third parties as well as intercompany sales, and inter- company principal and interest payments. As of February 29, 2004, the Company had exposures to foreign currency risk prima- rily related to the Australian Dollar, Euro, New Zealand Dollar, British Pound Sterling, Canadian Dollar and Mexican Peso. 

As of February 29, 2004, and February 28, 2003, the Company had outstanding derivative contracts with a notional value of $735.8 million and $11.6 million, respectively. Using a sensitivity analysis based on estimated fair value of open contracts using forward rates, if the U.S. dollar had been 10% weaker as of February 29, 2004, and February 28, 2003, the fair value of open for- eign exchange contracts would have been increased by $6.8 million and $2.4 million, respectively. Losses or gains from the reval- uation or settlement of the related underlying positions would substantially offset such gains or losses. 

The fair value of fixed rate debt is subject to interest rate risk. The fair value of fixed rate debt will increase as interest rates fall and decrease as interest rates rise. The estimated fair value of the Company’s total fixed rate debt, including current maturi- ties, was $1,274.8 million and $1,138.3 million as of February 29, 2004, and February 28, 2003, respectively. A hypothetical 1% increase from prevailing interest rates as of February 29, 2004, and February 28, 2003, would have resulted in a decrease in fair value of fixed interest rate long-term debt by $52.9 million and $53.1 million, respectively. 

In addition to the $1.3 billion fair value of fixed rate debt outstanding, the Company also had variable rate debt outstanding (primarily LIBOR based) as of February 29, 2004, and February 28, 2003, of $860.0 million and $147.4 million, respectively. A hypothetical 1% increase from prevailing interest rates as of February 29, 2004, and February 28, 2003, would result in an increase in cash required for interest payments on variable interest rate debt during the next five fiscal years as follows: 

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The Company has on occasion entered into interest rate swap agreements to reduce its exposure to interest rate changes relative to its variable rate debt. As of February 29, 2004, and February 28, 2003, the Company had no interest rate swap agreements out- standing. 

