In November 2000 the Company issued EUR 300 million ($257.2 million on the date of issuance) of five-year Euro Notes in the European debt capital market. The Notes bear interest payable annually and mature in a balloon payment in 2006. Proceeds from the Note issuance were used to retire the principal and interest due on a bridge loan created to help finance the Wynn’s acquisition. In February 2001 the Company redeemed its outstanding $100,000, 9.75% debentures due 2002-2021. The extraordinary loss for this transaction, including an early-redemption premium and the write-off of deferred issuance costs, was $5,413 ($3,378 after-tax or $.03 per share). Commercial paper borrowings were used to finance the redemption. Principal amounts of Long-term debt payable in the five years ending June 30, 2002 through 2006 are $19,693, $20,059, $195,116, $15,814 and $268,024, respectively. The carrying value of the Company’s Long-term debt (excluding leases and cross-currency swaps) was $868,826 and $714,540 at June 30, 2001 and 2000, respectively, and was estimated to have a fair value of $857,755 and $668,864, at June 30, 2001 and 2000, respectively. The estimated fair value of the Long-term debt was estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements. Pensions —  The Company has noncontributory defined benefit pension plans covering eligible employees, including certain employees in foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat-dollar amounts and years of service. The Company also has contractual arrangements with certain key employees which provide for supplemental retirement benefits. In general, the Company's policy is to fund these plans based on legal requirements, tax considerations, local practices and investment opportunities. The Company also sponsors defined contribution plans and participates in government-sponsored programs in certain foreign countries. Pension (income) costs for all plans were $(14,503), $9,304 and $23,644 for 2001, 2000 and 1999, respectively. Pension (income) costs for all defined benefit plans accounted for using SFAS No. 87, “Employers’ Accounting for Pensions,” were as follows: Lease Commitments —  Future minimum rental commitments as of June 30, 2001, under noncancelable operating leases, which expire at various dates, are as follows: 2002-$48,994; 2003-$35,460; 2004-$22,990; 2005- $14,318; 2006-$11,448 and after 2006-$29,394. Rental expense in 2001, 2000 and 1999 was $55,989, $40,371 and $42,280, respectively. ESOP loan guarantee —  In 1999 the Company’s Employee Stock Ownership Plan (ESOP) was leveraged when the ESOP Trust borrowed $112,000 and used the proceeds to purchase 3,055,413 shares of the Company’s common stock from the Company’s treasury. The Company used the proceeds to pay down commercial paper borrowings. The loan is unconditionally guaranteed by the Company and therefore the unpaid balance of the borrowing is reflected on the Consolidated Balance Sheet as Long-term debt. A corresponding amount representing Unearned compensation is recorded as a deduction from Shareholders’ equity. Note 9 Retirement Benefits Note 8 Debt NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2001 2000 Domestic: Debentures  7.3%, due 2011 $100,000 $ 100,000 9.75%, due 2002-2021 100,000 Medium-term notes 5.65% to 7.39%, due 2004-2019 370,000 370,000 ESOP loan guarantee 6.34%, due 2009 88,595 99,741 Variable rate demand bonds 2.75% to 2.85%, due 2010-2025 20,035 20,035 Foreign: Bank loans, including revolving credit 1.0% to 12.0%, due 2002-2018 17,032 24,764 Euro Notes 6.25%, due 2006 255,090 Other long-term debt, including capitalized leases 26,019 8,155 Total long-term debt 876,771 722,695 Less long-term debt payable within one year 19,693 20,933 Long-term debt, net $ 857,078  $ 701,762 2001 2000 1999 Service cost $ 43,382 $ 38,179 $ 34,890 Interest cost 84,526 68,807 63,257 Expected return on plan assets (146,908) (102,346) (83,798) Net amortization and  deferral and other 1,837  (375) 4,081 Net periodic benefit (income) cost $ (17,163) $ 4,265 $  18,430 30