Note 3 – Significant Accounting Matters

Fiscal 2016 Venezuelan re-measurement change – In fiscal 2016, as a result of a devaluation of the Venezuelan official rate, continued economic instability from declines in oil prices and the declaration of an economic emergency, among other factors, we discontinued the use of the official exchange rate and adopted a market-based exchange rate. As a result, we recorded a charge of $9.57 million (before and after tax) from the re-measurement of our Venezuelan monetary assets and liabilities at February 29, 2016 at the new rate. In addition to re-measuring our monetary holdings in Venezuela, we recorded $9.16 million of non-cash impairment charges (before and after tax) with respect to inventory and property and equipment in order to reflect their respective estimated net realizable and fair values as of February 29, 2016.

At the current exchange rate, sales in Venezuela represent less than 0.1% of our consolidated net sales and we expect that future reported net sales and operating income from Venezuela will no longer be meaningful to our consolidated and Beauty segment operating results.

The following table summarizes the financial impact of the adjustments described above.

IMPACT OF VENEZUELAN RE-MEASURMENT RELATED CHARGES


	Balance at February 29, 2016
(in thousands)	Before Adjustment		Adjustments		After Adjustment		Location of Income Statement Impact
Cash and cash equivalents	$	1,302	$	(1,292)	$	10	SG&A
Other net assets, principally working capital other than inventory		8,120		(8,284)		(164)	SG&A
Inventory		9,378		(9,078)		300	Cost of goods sold
Property and equipment, net		82		(79)		3	SG&A
Net investment in Venezuelan operations	$	18,882	$	(18,733)	$	149

Fiscal 2015 change in accounting estimate – In the third quarter of fiscal 2015, we revised our product liability estimates to reflect more relevant historical claims experience. The effect of the change in estimate was recorded in SG&A. The change increased operating income, net income and diluted earnings per share by $2.2 million, $1.4 million and $0.05 per share, respectively, for fiscal 2015.