44 We anticipate that the risk of non-renewal of this securitization program with the provider or some other provider is very low. In the event of a decrease of our eligible accounts receivable or non-renewal of our securitization program, we would have to utilize alternative sources of capital to fund that portion of  our working capital needs. Note 5 Inventories Inventories consisted of the following: We used the LIFO method of valuing our inventories for approximately 49 and 44 percent of total inventories at June 30, 2002 and 2001, respectively. We use the LIFO method in order to more closely match current costs with current revenues, thereby reducing the effects of inflation on earnings. Note 6 Other Current Liabilities Other current liabilities consisted of the following: Note 7 Long-Term Debt and Capital Leases Long-term debt and capital lease obligations consisted of the following: Senior Unsecured Notes and New Credit Agreement On June 19, 2002, we issued $300 million of 7.2% Senior Unsecured Notes due 2012 (Senior Unsecured Notes). These notes were issued at 99.629% of the face amount and yielded $294.3 million of net proceeds after related financing fees. The proceeds of this debt issuance were utilized to repay senior bank indebtedness and for general corporate purposes. Interest is payable semi-annually on June 15th and December 15th of each year commencing December 15, 2002. The Senior Unsecured Notes contain covenants that restrict our ability to create loans, enter into sale- leaseback transactions or certain consolidations or mergers, or sell all or substantially all of our assets. We also entered into a new three-year, multi-currency, revolving credit facility with a group of financial institutions (New Credit Agreement). This New Credit Agreement permits revolving credit loans of up to $650 million for working capital, capital expenditures and general corporate purposes and replaces the previous Bank Credit (in thousands) 2002 2001  7.2% Senior Unsecured Notes due 2012 net of discount of $1,108  and the fair value of certain interest rate swaps of $934 $ 297,958 $ – New Credit Agreement, revolving credit loans, 2.905% to 4.775%  in 2002, due 2005 81,500 –  Bank Credit Agreement, revolving credit loans, 4.355% to 5.805%  in 2001 – 375,000  Euro Credit Agreement, revolving credit loans, 5.389% in 2001 – 179,140  Yen Credit Facility, 0.83% and 1.11% in 2002 and 2001, due 2003 14,083 13,482 Lease of office facilities and equipment with terms expiring through  2008 at 4.45% to 4.73% 8,982 7,906  Other 1,918 9,088  Total debt and capital leases 404,441 584,616  Less current maturities: Long-term debt (14,621) (524)  Capital leases (1,933) (1,507)  Total current maturities (16,554) (2,031)  Long-term debt and capital leases $ 387,887 $ 582,585 (in thousands) 2002 2001  Accrued employee benefits $ 21,378 $ 21,829 Payroll, state and local taxes 5,234 9,568 Accrued interest expense 1,355 2,803  Other accrued expenses 54,115 49,934  Total other current liabilities $ 82,082 $ 84,134 (in thousands) 2002 2001  Finished goods $ 260,783 $ 284,801  Work in process and powder blends 91,871 94,231  Raw materials and supplies 34,452 32,130  Inventories at current cost 387,106 411,162 Less LIFO valuation  (42,030) (37,941)  Total inventories $ 345,076 $ 373,221