Derivative Financial Instruments

12 Months Ended

May 31, 2014

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

20. Derivative Financial Instruments

The Company holds commodity futures contracts in the form of call options, the cost of which is paid for by customers, to protect against increases in the price of corn and soybean meal purchases required to support that portion of its shell egg production sold on a cost of production formula.  The contracts are generally for durations of less than six months.  The Company elected to mark the unrealized changes in derivative instrument fair value to market; however, the net realized cost of these contracts is paid by customers, so there is no net impact to the Company’s Consolidated Statement of Income.  The fair value of all derivative instruments outstanding is included as a component of “Prepaid Expenses and Other Current Assets” on the Consolidated Balance Sheets as follows (in thousands):

Contracts outstanding at period end
Commodity	Units		Fair Value
Corn	3,450	bushels	$ 285
Soybean meal	36	tons	$ 970