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. 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. Millions of dollars except per share amounts The weighted average short-term interest rates were 2.9% and 5.3%  as of June 30, 2002 and 2001, respectively. 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. Selected components of current and non-current liabilities were as follows: Notes to Consolidated Financial Statements 36 The Procter & Gamble Company and Subsidiaries Note 5 Supplemental Financial Information Selected Operating Expenses Note 6 Short-Term and Long-Term Debt Note 7 Risk Management Activities Accrued and Other Current Liabilities Marketing expenses Compensation expenses Restructuring reserves Other Other Non-Current Liabilities Other postretirement benefits Pension benefits Other June 30 2002  $1,658 771 245  2,656  5,330  $344  1,158 586  2,088  $1,271 576 460  2,324  4,631 $534 925 386  1,845 2001 2002 Long-Term Debt 6.00% USD note due March, 2003 5.25% USD note due September, 2003 8.00% USD note due November, 2003 6.60% USD note due December, 2004 8.33% ESOP debentures due 2003-2004 4.00% USD note due April, 2005 5.75% EUR note due September, 2005 1.50% JPY note due December, 2005 4.75% USD note due June, 2007 6.13% USD note due May, 2008 6.88% USD note due September, 2009 2.00% JPY note due June, 2010 9.36% ESOP debentures due 2007-2021 8.00% USD note due September, 2024 6.45% USD note due January, 2026 6.25% GBP note due January, 2030 All other long-term debt Current portion of long-term debt  $500 750 200  1,000 212 400  1,478 459  1,000 500  1,000 417  1,000 200 300 763  1,640  (618)  11,201  $500 750 200  1,000 306 –  1,270 441 – 500  1,000 401  1,000 200 300 705  1,633 (414)  9,792 2001 2002 Short-Term Debt USD commercial paper Non-USD commercial paper Current portion of long-term debt Other  $2,142 461 618 510 3,731 $675 559 414 585 2,233 June 30  2001