Net income for fiscal 2004 reflected discontinued operations of the company's Northern Europe bakery business as well as write-downs and reorganization costs; net income for fiscal 2003 reflected both income from discontinued operations ($88.74 million) and the cumulative effect of a change in accounting principles related to goodwill (-$77,812), and it represented a 6.88% return on sales, significantiy below 2002's 10.95% but slightly ahead of 2001's 6.84%. In a less positive development, S&P downgraded the company's long-and short-term debt ratings to reflect Heinz's increased financial leverage.