NOTES TO CONSOLIDATED FINANCIAL STATEMENTS We have a qualified retirement plan, with a salary deferral feature designed to qualify under Section 401 of the Code (the “401(k) Plan”), which covers substantially all of our officers and employees. The 401(k) Plan permits our employees, in accordance with the provisions of Section 401(k) of the Code, to defer up to 20% of their eligible compensation on a pre-tax basis subject to certain maximum amounts. Employee contributions are fully vested and are matched by us at a rate of compensation deferred to be determined annually at our discretion. The matching contribution is subject to vesting under a schedule providing for 20% annual vesting starting with the second year of employment and 100% vesting after six years of employment. The employer matching contribution expense for the years 2003, 2002 and 2001 was immaterial. Effective January 1, 2001, we adopted FAS 133. Upon adoption we recorded a cumulative effect adjust- ment of $217,000 loss, net of minority interest of $83,000, in other comprehensive income (loss). Certain interest rate swap agreements were terminated during the first quarter of 2001 and the other comprehen- sive loss totaling $106,000, net of minority interest of $41,000, recognized at adoption relating to these agreements was reclassified to earnings. In January 2003, our remaining interest rate swap agreement with a notional amount of $25 million, designated as a cash flow hedge in accordance with the provisions of FAS 133, expired as scheduled. Upon expiration, the fair market value recorded on the balance sheet as a liability in accounts payable and accrued expenses was adjusted to zero through accumulated other comprehensive income. TWMB’s interest rate swap agreement has been designated as a cash flow hedge and is carried on its respective balance sheet at fair value. At December 31, 2003, our portion of the fair value of TWMB’s hedge is recorded as a reduction in investment in unconsolidated joint ventures of $82,000 in other assets.  Total comprehensive income for the years ended December 31, 2003, 2002 and 2001 is as follows (in thousands): 14. OTHER COMPREHENSIVE INCOME 58 | 2003 ANNUAL REPORT 2003 2002 2001 Net income $ 12,849 $ 11,007 $ 7,112 Other comprehensive income (loss) Cumulative effect adjustment of FAS 133 adoption, net of minority interest of ($83) — — (217) Reclassification to earnings on termination of cash flow hedge, net of minority interest of $41 — — 106 Change in fair value of our portion of TWMB cash  flow hedge, net of minority interest of $12 and ($37) 44 (102) — Change in fair value of cash flow hedge, net of minority interest of $24, $232 and ($227) 74 643 (593) Other comprehensive income (loss) 118 541 (704) Total comprehensive income $ 12,967 $ 11,548 $ 6,408