Derivative Financial Instruments

6 Months Ended

Nov. 29, 2014

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

7.Derivative Financial Instruments 

The Company holds commodity futures contracts in the form of call options, the cost of which is paid for by certain 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 marks the unrealized changes in the derivative instrument’s fair value to market; however, the net realized cost of these contracts is paid by certain customers, so there is no net impact to the Company’s Consolidated Statements of Income.  The fair value of all derivative instruments outstanding is included as a component of “Prepaid Expenses and Other Current Assets” on the Condensed Consolidated Balance Sheets as follows:

Contracts outstanding at period end
Commodity	Units		Fair Value
Corn	2,600,000	bushels	$ 186,000
Soybean meal	27,100	tons	$ 207,000
Total fair value of commodity contracts			$ 393,000