Note 13 - FINANCIAL INSTRUMENTS

The Company enters into forward foreign currency exchange contracts to hedge certain foreign currency denominated receivables and payables. Exchange gains and losses arising from these transactions are deferred and recognized when the transaction for which the hedge was obtained is finalized. At December 31, 2000 and 1999, the Company had outstanding forward foreign currency exchange contracts aggregating $7,270,000 and $7,921,000, respectively. Forward foreign currency exchange contracts generally have maturities of less than nine months and relate primarily to major Western European currencies. Counterparties to the forward foreign currency exchange contracts are major financial institutions. Credit loss from counterparty nonperformance is not anticipated. Based on quoted year-end market prices of its forward foreign currency exchange contracts the Company would have experienced a $10,000 loss at December 31, 2000, and a $126,000 loss at December 31, 1999, had outstanding contracts been settled at those respective dates.

At December 31, 2000 and 1999, the carrying value approximates the fair value of financial instruments such as cash, trade receivables and payables, and short-term debt because of the short-term maturities of these instruments. The fair value of the Company’s long-term debt, including current maturities but excluding capitalized leases, is estimated to be $665,448,000 and $379,532,000 at December 31, 2000 and 1999, respectively, using discounted cash flow analyses, based on the incremental borrowing rates currently available to the Company for similar debt with similar terms and maturity.

Concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities comprising the Company’s customer base and their dispersion across many different industries and countries. As of December 31, 2000 and 1999, the Company had no significant concentrations of credit risk. On January 1, 2001, Statement of Financial Accounting Standard, No. 133, Accounting for Derivative Instruments (SFAS 133), was adopted by the Company. SFAS 133 requires that the fair value of derivative instruments, such as forward foreign currency exchange contracts, be recorded on the balance sheet with subsequent changes reflected in income or deferred as an element of equity.

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