Steely Dan released their third studio album, Pretzel Logic, which was the last to feature the full lineup of Donald Fagen, Walter Becker, Denny Dias, Jim Hodder and Jeff "Skunk" Baxter. Future albums would be recorded by Becker, Fagen and hired studio musicians.
Pretzel Logic was a top 10 hit for Steely Dan, peaking at #8 on the Billboard 200. It featured the hit single "Ricki Don't Lose That Number," which was the highest charting single of the band's career, hitting #4 on the Billboard Hot 100.