content_image/119198.jpg content_image/119205.jpg content_image/119210.jpg
## Notes to Consolidated Financial Statements 

(dollars in thousands, except per share data) - continued - 

## NOTE D – SALE OF ACCOUNTS RECEIVABLE 

<img src='content_image/119198.jpg'>

The Company has an accounts receivable securitization program which provides for up to $60,000 of funding. Under the agreement, a significant portion of the Company’s accounts receivable is sold, on a revolving basis, to a special purpose wholly-owned subsidiary, which assigns such receivables to an independent issuer of receivables-backed commercial paper as security for amounts borrowed by the special purpose subsidiary. 

The transaction is accounted for as a sale of accounts receivable. Accordingly, the undivided interest in receivables sold under the agreement is excluded from the Company’s balance sheet. Amounts sold under this arrangement were $25,951 at December 29, 2001 and $40,400 at December 30, 2000. The Company’s retained interest in the accounts receivable is stated at the estimated amount to be received upon the collection of the receivables and is included in the balance sheet as accounts receivable. 

Proceeds from the sale of accounts receivable are less than the face amount of the accounts receivable sold by an amount which approximates the variable financing cost of receivables-backed commercial paper plus administrative fees typical in such transactions. These costs, which were approximately $2,310 for 2001, $3,479 for 2000 and $2,900 for 1999, are included in other (income) expense – net. The Company continues to service the receivables and maintains an allowance for doubtful accounts based upon the expected collectibility of all of the accounts receivable generated by the Company. 

At December 29, 2001 and December 30, 2000, $4,532 and $5,165, respectively, of the Company’s accounts receivable were factored without recourse to financial institutions. 

Accrued expenses exceeding 5% of current liabilities include the following: 

## NOTE E – ACCRUED EXPENSES 

<img src='content_image/119205.jpg'>

Long-term debt consists of the following: 

## NOTE F – LONG-TERM DEBT AND CREDIT ARRANGEMENTS 

<img src='content_image/119210.jpg'>

The Company’s senior credit arrangement provides the lender with a security interest in substantially all of the Company’s assets not otherwise pledged (see Note B). The credit agreement provides 

