NOTE 12 – FAIR VALUE

The following tables present the fair value of our financial assets and liabilities carried at fair value and measured on a recurring basis as of the last day of February 2015 and 2014:

FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

(in thousands)



	Fair Values at
	February 28, 2015
Description	(Level 2) (1)
Assets:
Money market accounts	$	1,692
Foreign currency contracts		129
Total assets	$	1,821

Liabilities:
Long-term debt - fixed rate (2)	$	62,006
Long-term debt - floating rate		35,707
Foreign currency contracts		240
Total liabilities	$	97,953



	Fair Values at
	February 28, 2014
Description	(Level 2) (1)
Assets:
Money market accounts	$	1,549
Total assets	$	1,549

Liabilities:
Long-term debt - fixed rate (2)	$	83,951
Long-term debt - floating rate		112,607
Interest rate swaps and foreign currency contracts		1,596
Total liabilities	$	198,154

(1)

Our financial assets and liabilities are classified as Level 2 assets because their valuation is dependent on observable inputs and other quoted prices for similar assets or liabilities, or model-derived valuations whose significant value drivers are observable.

(2)

Debt values are reported at estimated fair value in these tables, but are recorded in the accompanying consolidated balance sheets at the undiscounted value of remaining principal payments due.

The carrying amounts of cash and cash equivalents, receivables and accounts payable approximate fair value because of the short maturity of these items. Money market accounts included in cash and cash equivalents in the accompanying consolidated balance sheets consist of interest bearing deposits with banks that pay comparable money market interest rates.

We use derivatives for hedging purposes and our derivatives are primarily foreign currency contracts and interest rate swaps. See Notes (1), (13) and (18) to these consolidated financial statements for more information on our hedging activities.

We classify our fixed and floating rate debt as Level 2 items because the estimation of the fair market value of these financial assets requires the use of a discount rate based upon current market rates of interest for obligations with comparable remaining terms. Such comparable rates are considered significant other observable market inputs. The fair market value of the fixed rate debt was computed using a discounted cash flow analysis and discount rates at February 28, 2015 and 2014 of 2.05 and 1.75, respectively. All other long-term debt has floating interest rates, and its book value approximates its fair value as of the reporting date.

The Company’s other non-financial assets include goodwill and other intangible assets, which we classify as Level 3 items. These assets are measured at fair value on a non-recurring basis as part of the Company’s impairment assessments and as circumstances require. As discussed in Note (5) to these consolidated financial statements, in connection with our annual impairment testing during the first quarters of fiscal years 2015 and 2014, we recorded non-cash asset impairment charges of $9.00 million ($8.16 million after tax) and $12.05 million ($12.03 million after tax), respectively. The charges related to certain trademarks in our Personal Care segment, which were written down to their estimated fair value, determined on the basis of future discounted cash flows using the relief from royalty valuation method. The table below presents other non-financial assets measured on a non-recurring basis using significant unobservable inputs (Level 3) for the fiscal years 2015 and 2014:

OTHER NON-FINANCIAL ASSETS

FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (Level 3)

(in thousands)


	Fiscal Years Ended
	the Last Day of February,
	2015		2014
Beginning balances	$	775,550	$	808,869
Total gains/income (losses/expense):
Included in net income - realized		(34,152)		(33,403)
Acquired during the period		205,764		339
Acquisition adjustments and retirements during the period		995		(255)
Ending balances	$	948,157	$	775,550