DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

4 Months Ended

Apr. 25, 2015

Net Fair Value of Commodity Price Risk

As of April 25, 2015, the company’s hedge portfolio contained commodity derivatives with a net fair value of $(20.9) million, which is recorded in the following accounts with fair values measured as indicated (amounts in millions):

	Level 1			Level 2			Level 3		Total
Liabilities:
Other current	$	(14.9	)	$	(2.3	)	$	—	$	(17.2	)
Other long-term		(2.0	)		(1.7	)		—		(3.7	)
Total		(16.9	)		(4.0	)		—		(20.9	)
Net Fair Value	$	(16.9	)	$	(4.0	)	$	—	$	(20.9	)

Derivative Instruments Located on Condensed Consolidated Balance Sheet

The company had the following derivative instruments recorded on the Condensed Consolidated Balance Sheet, all of which are utilized for the risk management purposes detailed above (amounts in thousands):

Derivative Assets

Derivative Liabilities

Derivatives designated as hedging instruments

April 25, 2015

January 3, 2015

April 25, 2015

January 3, 2015

Balance Sheet location

Fair Value

Balance Sheet location

Fair Value

Balance Sheet location

Fair Value

Balance Sheet location

Fair Value

Commodity contracts

Other current assets

—

Other current assets

—

Other current liabilities

17,233

Other current liabilities

12,898

Commodity contracts

Other long term assets

—

Other long term assets

—

Other long term liabilities

3,714

Other long term liabilities

3,355

Total

$

—

$

—

$

20,947

$

16,253

Effect of Derivative Instruments Designated as Cash-Flow Hedges in Other Comprehensive Income (Loss) ("OCI") and Condensed Consolidated Income Statement

The following tables show the effect of the company’s derivative instruments designated as cash-flow hedges in other comprehensive income (loss) (“OCI”) and the Condensed consolidated income statement (amounts in thousands and net of tax):

Derivatives designated as hedging instruments	Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion)(Net of tax)					Location of (Gain) or Loss Reclassified from AOCI into Income (Effective Portion)	Amount of (Gain) or Loss Reclassified from Accumulated OCI into Income (Effective Portion)(Net of tax)
	For the sixteen weeks ended						For the sixteen weeks ended
	April 25, 2015			April 19, 2014			April 25, 2015		April 19, 2014
Interest rate contracts	$	—		$	—	Interest expense	$	47	$	47
Commodity contracts		(4,428	)		15,302	Production costs(1)		1,540		3,024
Total	$	(4,428	)	$	15,302		$	1,587	$	3,071

(1) Included in Materials, supplies, labor and other production costs (exclusive of depreciation and amortization shown separately).

Accumulated Other Comprehensive Loss (Income) Related to Derivative Transactions

The balance in accumulated other comprehensive loss (income) related to commodity price risk and interest rate risk derivative transactions that are closed or will expire in the next three years are as follows (amounts in millions and net of tax) at April 25, 2015:

	Commodity price risk derivatives		Interest rate risk derivatives		Totals
Closed contracts	$	0.3	$	1.1	$	1.4
Expiring in 2015		10.2		—		10.2
Expiring in 2016		2.7		—		2.7
Total	$	13.2	$	1.1	$	14.3

Financial Contracts Hedging Commodity and Interest Rate Risks

As of April 25, 2015, the company had the following outstanding financial contracts that were entered into to hedge commodity and interest rate risk:

Derivatives in Cash Flow Hedge Relationships	Notional amount (millions)
Wheat contracts	$	90.8
Soybean oil contracts		25.2
Natural gas contracts		13.5
Total	$	129.5