notes to consolidated financial statements

December 31 (thousands)	2003	2002	2001
ACCOUNTS RECEIVABLE, NET
Accounts receivable	$ 670,013	$ 589,149	$ 544,371
Allowance for doubtful accounts	(44,011)	(35,995)	(30,297)
Total	$ 626,002	$ 553,154	$ 514,074
INVENTORIES
Finished goods	$ 159,633	$ 136,721	$ 124,657
Raw materials and parts	152,127	156,628	156,754
Excess of fifo cost over lifo cost	(1,801)	(1,843)	(1,626)
Total	$ 309,959	$ 291,506	$ 279,785
PROPERTY, PLANT AND EQUIPMENT, NET
Land	$   26,921	$   21,914	$   20,349
Buildings and leaseholds	243,795	231,119	221,054
Machinery and equipment	589,620	525,359	452,611
Merchandising equipment	949,553	821,109	743,404
Construction in progress	21,488	18,830	22,217
	1,831,377	1,618,331	1,459,635
Accumulated depreciation and amortization	(1,094,580)	(938,066)	(815,312)
Total	$ 736,797	$ 680,265	$ 644,323
GOODWILL, NET
Goodwill	$ 992,622	$ 871,208	$ 763,211
Accumulated amortization	(195,411)	(175,508)	(166,286)
Total	$ 797,211	$ 695,700	$ 596,925
OTHER INTANGIBLE ASSETS, NET Cost
Customer relationships	$ 153,479	$ 120,324	$ 104,277
Intellectual property	77,793	71,104	66,418
Trademarks	52,283	50,308	48,540
Other intangibles	16,012	13,502	16,292
	299,567	255,238	235,527
Accumulated amortization
Customer relationships	(27,565)	(9,238)	(2,758)
Intellectual property	(45,809)	(39,641)	(35,800)
Trademarks	(9,313)	(5,947)	(5,097)
Other intangibles	(13,021)	(11,742)	(12,921)
Total	$ 203,859	$ 188,670	$ 178,951
OTHER ASSETS, NET
Deferred income taxes	$   43,168	$   36,797	$   56,952
Pension	161,098	106,314
Other	136,445	142,224	118,266
Total	$ 340,711	$ 285,335	$ 175,218
SHORT-TERM DEBT
Notes payable	$   66,250	$ 146,947	$ 230,306
Long-term debt, current maturities	3,953	13,152	3,087
Total	$   70,203	$ 160,099	$ 233,393
OTHER CURRENT LIABILITIES
Discounts and rebates	$ 145,508	$ 127,418	$ 125,123
Other	173,729	163,775	118,057
Total	$ 319,237	$ 291,193	$ 243,180
LONG-TERM DEBT
6.875% notes, due 2011	$ 149,101	$ 148,974	$ 148,847
5.375% Euronotes, due 2007	364,399	299,777
Commercial paper			265,860
7.19% senior notes, due 2006	75,017	75,000	75,000
Other	19,877	29,144	25,660
	608,394	552,895	515,367
Long-term debt, current maturities	(3,953)	(13,152)	(3,087)
Total	$ 604,441	$ 539,743	$ 512,280

The company has a $275 million Multicurrency Credit Agreement with a consortium of banks that has a term through 2005 and a $175 million 364-day Credit Agreement with a consortium of banks that has a term through October 2004. The company may borrow varying amounts in different currencies from time to time on a revolving credit basis. The company has the option of borrowing based on various short-term interest rates. Each agreement includes a covenant regarding the ratio of total debt to capitalization. No amounts were outstanding under these agreements at year-end 2003, 2002 and 2001.

These credit agreements support the company's $450 million U.S. commercial paper program and its 200 million Australian dollar commercial paper program. The company had $64.1 million and $355.7 million in outstanding U.S. commercial paper at December 31, 2002 and 2001, respectively, with average annual interest rates of 1.4 percent and 2.0 percent, respectively. There was no U.S. commercial paper outstanding at December 31, 2003. The company also had 50.0 million, 50.0 million and 132.5 million of Australian dollar denominated commercial paper (in U.S. dollars, approximately $36 million, $28 million and $69 million, respectively) outstanding at December 31, 2003, 2002 and 2001, respectively, with average annual interest rates of 5.1 percent, 4.8 percent and 4.5 percent, respectively.

In June 2003, the company established a $200 million European commercial paper program to provide a source of funding for European and other international acquisitions and working capital requirements. The program is in addition to the company's $450 million U.S. and 200 million Australian dollar programs. As of December 31, 2003, the company had not issued any European commercial paper. All three programs were rated A-1 by Standard & Poor's and P-1 by Moody's as of December 31, 2003 and were supported by the company's $275 million and $175 million committed credit facilities.

In February 2002, the company issued euro 300 million ($265.9 million at rates prevailing at that time) of 5.375 percent Euronotes, due February 2007. The proceeds from this debt issuance were used to repay a portion of the U.S. commercial paper outstanding as of December 31, 2001. Therefore, $265.9 million of commercial paper outstanding at December 31, 2001 was classified as long-term debt. As described further in Note 8, the company accounts for a majority of the transaction gains and losses related to the Euronotes as a component of the cumulative translation account within accumulated other comprehensive income (loss).

As of December 31, the weighted-average interest rate on notes payable was 6.3 percent in 2003, 4.6 percent in 2002 and 4.4 percent in 2001.

As of December 31, 2003, the aggregate annual maturities of longterm debt for the next five years were: 2004 - $3,953,000; 2005 - $4,136,000; 2006 - $77,999,000; 2007 - $366,267,000 and 2008 - $754,000.

Interest expense was $49,342,000 in 2003, $47,210,000 in 2002 and $31,477,000 in 2001. Interest income was $3,997,000 in 2003, $3,315,000 in 2002 and $3,043,000 in 2001. Total interest paid was $47,428,000 in 2003, $45,056,000 in 2002 and $26,402,000 in 2001.