content_image/51863.jpg content_image/51865.jpg content_image/51864.jpg
## Note 5 Supplemental Financial Information 

Selected components of current and non-current liabilities were as follows: 

<img src='content_image/51863.jpg'>

## Selected Operating Expenses 

Research and development costs are charged to earnings as incurred and were $1,601 in 2002, $1,769 in 2001 and $1,899 in 2000. Advertising costs are charged to earnings as incurred and were $3,773 in 2002, $3,612 in 2001 and $3,793 in 2000. Both of these are components of marketing, research, administrative and other expense. 

## Note 6 Short-Term and Long-Term Debt 

<img src='content_image/51865.jpg'>

The weighted average short-term interest rates were 2.9% and 5.3% as of June 30, 2002 and 2001, respectively. 

<img src='content_image/51864.jpg'>

Long-term weighted average interest rates were 4.0% and 5.0% as of June 30, 2002 and 2001, respectively, and include the effects of related interest rate swaps discussed in Note 7. 

The fair value of the long-term debt was $11,673 and $10,164 at June 30, 2002 and 2001, respectively. Long-term debt maturities during the next five fiscal years are as follows: 2003–$618; 2004–$1,099; 2005–$1,475; 2006–$2,200 and 2007–$1,006. 

## Note 7 Risk Management Activities 

As a multinational company with diverse product offerings, the Company is exposed to market risks, such as changes in interest rates, currency exchange rates and commodity pricing. To manage the volatility related to these exposures, the Company evaluates exposures on a consolidated basis to take advantage of logical exposure netting. For the remaining exposures, the Company enters into various derivative transactions in accordance with the Company’s policies in areas such as counterparty exposure and hedging practices. Effective July 1, 2000, such derivative transactions are accounted for under SFAS No. 133, ”Accounting for Derivative Instruments and Hedging Activities,“ as amended and interpreted. The Company does not hold or issue derivative financial instruments for speculative trading purposes. 

