partnering for the future and unpaid preferred dividends through October 31, 2004 of approximately $1 million. The redemption was financed by the prepayment of an outstanding term loan due First Capital from one of Bunge’s subsidiaries. First Capital has been released of any future obligations related to these redeemable preferred shares. The carrying value and subsequent redemption of these preferred shares was reflected in minority interest in the con- solidated balance sheets at December 31, 2004 and 2003.  Bunge has significant operating subsidiaries in Brazil, Argentina and Europe. The functional currency of Bunge’s subsidiaries is the local currency. The assets and liabilities of these subsidiaries are translated into U.S. dollars from local currency at month-end exchange rates, and the resulting foreign exchange translation gains and losses are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding, excluding any dilutive effects of stock options, restricted stock unit awards and convertible notes during the reporting period. Diluted earnings per share is computed similar to basic earnings per share, except that the weighted average number of common shares outstanding is increased to include additional shares from the assumed exercise of stock options, restricted stock unit awards and convertible notes, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. In addition, Bunge accounts for the effect of the convertible notes on its diluted earnings per share computation using the if-converted method. Under this method, the convertible notes are assumed to be converted and the interest expense, net of tax related to the convertible notes is added back to earnings. In June 2004, Bunge completed a public offering of 9,775,000  of its common shares for net proceeds of $331 million, after underwriting discounts, commissions and expenses. Bunge used the net proceeds of the offering to acquire the additional 17% of the total outstanding shares of Bunge Brasil, its publicly traded Brazilian subsidiary that it did not already own, for $314 million in cash (see Note 2). In March 2002, Bunge sold 16,093,633 common shares in a public offering. Proceeds from this offering less underwriting discounts, commissions and expenses, were $292 million. The net proceeds were used to buy back shares held by minority shareholders in connection with Bunge’s corporate restructuring of its Brazilian subsidiaries with the remainder used to reduce indebtedness under Bunge’s commercial paper program. 79 accumulated other comprehensive income (loss) The following table summarizes the balances of related after tax components of accumulated other comprehensive income (loss): Foreign Deferred Deferred Accumulated Exchange Gain (Loss) Treasury Minimum Gain (Loss) Other Translation on Hedging Rate Lock Pension on Comprehensive (US$ in millions) Adjustment Activities Contracts Liability Investments Income (Loss) Balance, January 1, 2002 $ (695) $ 5 $ – $ – $ – $ (690) Other comprehensive (loss) (403) – (21) (11) (1) (436) Balance, December 31, 2002 (1,098) 5 (21) (11) (1) (1,126) Other comprehensive income (loss) 489 (12) 2 (10) 1 470 Balance, December 31, 2003 (609) (7) (19) (21) – (656) Other comprehensive income (loss) 2 21 17 7 1 12 2 2 ((2 2)) – 2 22 29 9 Balance, December 31, 2004 $ $ ((3 39 92 2)) $ 5 $ ((1 17 7)) $ ((2 23 3)) $ – $ $ ((4 42 27 7)) 24. earnings per share 23. shareholders’ equity