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recognized to the extent that these two adjustments do not offset. As of December 31, 2004, we recognized no ineffective- ness related to the interest rate swap hedging instruments. The derivatives we entered into for hedge purposes are assumed to be perfectly effective under the shortcut method of SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. The differential to be paid or received on changes in interest rates is recorded as an adjustment to interest expense. The interest rate swaps settle every six months until expiration. We recorded $6 million of accrued interest as a reduction of interest expense in the consolidated statements of income for the year ended December 31, 2004. 

The following table summarizes our outstanding interest rate swap agreements as of December 31, 2004. 

<img src='content_image/111984.jpg'>

(1) Interest is payable in arrears based on a forecasted rate of six-month LIBOR plus a spread. 

## forward-looking statements 

This report contains both historical and forward-looking state- ments. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expecta- tions and projections about our future results, performance, prospects and opportunities. We have tried to identify these for- ward-looking statements by using words including “may,” “will,” “expect,” “anticipate,” “believe,” “intend,” “estimate,” “continue” and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend 

to serve, to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: governmental policies affecting our business, including agricultural and trade policies and laws governing envi- ronmental liabilities; our funding needs and financing sources; changes in foreign exchange policy or rates; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, divestitures, joint ventures and strategic alliances; estimated demand for the commodities and other products that we sell and use in our business; industry conditions, including the cyclicality of the agribusiness industry and unpredictability of the weather; agricultural, economic, social and political conditions in the primary markets where we operate; and other economic, business, competitive and/or regulatory factors affecting our business generally. 

The forward-looking statements included in this report are made only as of the date of this report, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances. 

All information that is not historical in nature disclosed under “Guarantees, Contractual Obligations and Off-Balance Sheet Arrangements” is deemed to be a forward-looking statement. 

