18. Commitments and Contingencies

The Company leases various equipment and real properties under long-term operating leases. Total rental expense was $44.4 million in 2002, $34.8 million in 2001 and $31.7 million in 2000. Most of the leases require payment of operating expenses applicable to the leased assets. Management expects that in the normal course of business most leases that expire will be renewed or replaced by other leases.

Minimum lease commitments under operating noncancelable leases at December 31, 2002, total $80.5 million composed of $23.8 for 2003, $17.4 million for 2004, $11.4 million for 2005, $9.2 million for 2006, $7.1 million for 2007 and $11.6 million for later years.

At December 31, 2002 the $108.3 million obligation under capital lease represents the present value of the future minimum lease payments for which the Company is contingently liable. The lessee is Cheese and Protein International, LLC (CPI), a 95%Ðowned subsidiary. The lease has been included in the Company's consolidated balance sheet at December 31, 2002 because CPI did not meet its fixed charge coverage ratio covenant as of December 31, 2002. CPI has received a covenant waiver from the lender, but only through March 2003. CPI is currently in discussions with its lenders on an amendment to the lease contract which will cover future periods. The lease has terms through 2007, but it is currently classified as a current liability because the Company could be required to pay the full amount in 2003 if an amendment cannot be obtained from the participating lenders.

The Company is currently and from time to time involved in litigation and environmental claims incidental to the conduct of business. The damages claimed in some of these cases are substantial. Although the amount of liability that may result from these matters cannot be ascertained, the Company does not currently believe that, in the aggregate, they will result in liabilities material to the Company's consolidated financial condition, future results of operations or cash flows.

In a letter dated January 18, 2001, the Company was identified by the United States Environmental Protection Agency ("EPA") as a potentially responsible party for the hazardous waste located at the Hudson Refinery Superfund Site in Cushing, Oklahoma. The letter invited the Company to enter into negotiations with the EPA for the performance of a remedial investigation and feasibility study in connection with the site, and also demanded that the Company reimburse the EPA approximately $8.9 million for remediation expenses already incurred at the site. The Company has responded to the EPA denying any responsibility. No further communication has been received from the EPA.