partnering for the future In 2004, we recognized an additional minimum pension liability, which reduced shareholders’ equity by $2 million, net of tax  benefit of $1 million due primarily to the reduction in the discount rate assumption. Future recognition of additional minimum  pension liabilities will depend on the actual return on the plans’ assets and the discount rate. from a period of shortage to one of ample supply during the  third quarter of 2004 in response to the record 2004 soybean crop in the United States and forecasts of larger 2005 South American harvests compared to 2004. As a result, during the third quarter of 2004, soybean prices declined significantly to more normalized levels. A one percentage point decrease in the assumed discount rate on our defined benefit pension plans would increase annual expense and the projected benefit obligation by $4 million and $50 million, respectively. A one percentage point increase or decrease in the long-term return assumptions on our defined benefit pension plan assets would increase or decrease annual pension expense by $2 million. Our agribusiness earnings are not directly tied to commodity prices, as segment operating profit is primarily determined by the relative difference between the price at which we buy com- modities and the price at which we sell the derived commodity products, such as soybean meal and soybean oil, among other factors. We also minimize our exposure to price fluctuations through hedging transactions. income taxes We record valuation allowances to reduce our deferred tax assets to the amount that we are likely to realize. We consider projections of future taxable income and prudent tax planning strategies to assess the need for and the size of  the valuation allowances. If we determine that we can realize  a deferred tax asset in excess of our net recorded amount, we decrease the valuation allowance, thereby increasing net income. Conversely, if we determine that we are unable to realize all  or part of our net deferred tax asset, we increase the valuation allowance, thereby decreasing net income. Our agribusiness volumes in 2004 increased only 2% over 2003 as demand was hampered by record high commodity prices. However, the USDA is projecting an 8% increase in global soy- bean meal consumption in 2005. In addition, increased demand for biofuels in Europe, North America and Brazil should further  stimulate demand for vegetable oil. Our fertilizer results in 2004 benefited from higher average  selling prices for fertilizers. International selling prices for imported fertilizers and raw materials were higher than 2003, which helped to increase margins on locally produced fertilizer as it is priced to import parity. Prior to recording a valuation allowance, our deferred tax assets were $856 million at December 31, 2004. However, we have recorded valuation allowances of $177 million as of December 31, 2004, primarily representing the uncertainty regarding the recov- erability of certain net operating loss carryforwards. 2004 overview Our agribusiness results for 2004 improved  in most business lines and geographic regions compared to 2003. Effective freight and risk management and efficiency improvements in our logistics operations contributed to the improved results. Soybean prices were volatile during the first three quarters of 2004. Soybean prices began increasing in the third quarter of 2003 because of a poor U.S. crop and a 2004 South American soybean harvest that was unchanged compared to the prior year. However, the soybean market made a rapid transition  In our edible oil business, excluding the 2003 results of Lesieur which we sold in July 2003, our 2004 sales volumes increased primarily in North America and our operating profit increased in our softseed businesses in Eastern Europe. segment results In 2004, we reclassified certain consumer product lines from the agribusiness segment to the edible oil products segment. As a result, amounts for the year ended December 31, 2003 have been reclassified to conform to the current presentation. In the second quarter of 2003, we sold our Brazilian soy ingredients business to The Solae Company, our joint venture with DuPont. As a result, our “other (soy ingredients)” segment now reflects only the historical results of the soy ingredients business. 33 results of operations