Venezuela Currency Impacts
Venezuela is a highly inflationary economy under U.S.
GAAP. As a result, the U.S. dollar is the functional currency
for our subsidiaries in Venezuela. Any currency
remeasurement adjustments for non-dollar denominated
monetary assets and liabilities held by these subsidiaries and
other transactional foreign exchange gains and losses are
reflected in earnings. For the current fiscal year, Venezuela
represented approximately 1% of the Company’s
consolidated net sales and operating profit excluding the
impact of the remeasurement charge discussed below.