Earnings before cumulative effect of accounting change (a) Results for 2001 have been restated to reflect the adoption of SFAS No. 145 in 2003 concerning the income statement classification of losses from debt extinguishment. The net loss of $7.4 incurred in 2001, which was originally classified as an extraordinary loss, has been reclassified to Earnings before cumulative effect of accounting change. Refer to Note 1 for further information. Comprehensive income includes all changes in equity during a pe- riod except those resulting from investments by or distributions to shareholders. Comprehensive income for the periods presented consists of net earnings, minimum pension liability adjustments (re- fer to Note 9), unrealized gains and losses on cash flow hedges pur- suant to SFAS No. 133 “Accounting for Derivative Instruments and Hedging Activities”, and foreign currency translation adjustments pursuant to SFAS No. 52 “Foreign Currency Translation” as follows: The Company’s Keebler subsidiary is guarantor on loans to inde- pendent contractors for the purchase of DSD route franchises. At year-end 2003, there were total loans outstanding of $15.2 mil- lion to 413 franchisees. All loans are variable rate with a term of 10 years. Related to this arrangement, the Company has estab- lished with a financial institution a one-year renewable loan facil- ity up to $17.0 million with a five-year term-out and servicing arrangement. The Company has the right to revoke and resell the At December 27, 2003, future minimum annual lease commitments under noncancelable capital and operating leases were as follows: The Company’s leases are generally for equipment and warehouse space. Rent expense on all operating leases was $80.5 million in 2003, $89.5 million in 2002, and $100.0 million in 2001. Additionally, the Company is subject to residual value guarantees and secondary liabilities on operating leases totaling approxi- mately $15 million, for which liabilities of $1.8 million had been recorded at December 27, 2003. Comprehensive Income  Note 6 Leases and other  commitments Accumulated other comprehensive income (loss) at year end con- sisted of the following: Average shares (millions, except per share data) Earnings outstanding Per share 2003 Basic $ 787.1 407.9 $ 1.93 Dilutive employee stock options — 2.6 (.01) Diluted $ 787.1 410.5 $ 1.92 2002 Basic $ 720.9 408.4 $ 1.77 Dilutive employee stock options — 3.1 (.02) Diluted $ 720.9 411.5 $ 1.75 2001 (a) Basic $ 474.6 406.1 $ 1.17 Dilutive employee stock options — 1.1 (.01) Diluted $ 474.6 407.2 $ 1.16 Tax Pretax (expense) After-tax (millions) amount benefit amount 2001 Net earnings  $ 473.6 Other comprehensive income: Foreign currency translation adjustments ($ 60.4) $ — (60.4) Cash flow hedges: Unrealized gain (loss) on cash flow hedges (86.3) 31.9 (54.4) Reclassification to net earnings 8.8 (3.3) 5.5 Minimum pension liability adjustments (9.8) 3.0 (6.8) ($ 147.7) $ 31.6 (116.1) Total comprehensive income  $ 357.5 (millions) 2003 2002 Foreign currency translation adjustments ($ 406.0) ($ 487.6) Cash flow hedges – unrealized net loss (51.9) ( 46.3) Minimum pension liability adjustments (271.3) ( 319.5) Total accumulated other comprehensive income (loss) ($ 729.2) ($ 853.4) Operating Capital (millions) leases leases 2004 $ 76.4 $ 1.6 2005 64.0 1.5 2006 50.3 1.5 2007 38.0 1.0 2008 34.4 — 2009 and beyond 103.9 — Total minimum payments $ 367.0 $ 5.6 Amount representing interest (.7) Obligations under capital leases 4.9 Obligations due within one year 1.3 Long-term obligations under capital leases $ 3.6 Tax Pretax (expense) After-tax (millions) amount benefit amount 2003 Net earnings $ 787.1 Other comprehensive income: Foreign currency translation adjustments $ 81.6 $ — 81.6 Cash flow hedges: Unrealized gain (loss) on cash flow hedges (18.7) 6.6 (12.1) Reclassification to net earnings 10.3 (3.8) 6.5 Minimum pension liability adjustments 75.7 (27.5) 48.2 $1 4 8.9 ($ 24.7) 124.2 Total comprehensive income $9 1 . 3 Tax Pretax (expense) After-tax (millions) amount benefit amount 2002 Net earnings $ 720.9 Other comprehensive income: Foreign currency translation adjustments $ 1.6 $ — 1.6 Cash flow hedges: Unrealized gain (loss) on cash flow hedges (2.9) 1.3 (1.6) Reclassification to net earnings 6.9 (2.7) 4.2 Minimum pension liability adjustments (453.5) 147.3 (306.2) ($ 447.9) $ 145.9 (302.0) Total comprehensive income $ 418.9 Earning Our Stripes 40