INVESTMENTS IN AFFILIATES

9 Months Ended

Jul. 28, 2024

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN AFFILIATES

NOTE C - INVESTMENTS IN AFFILIATES

Equity in Earnings of Affiliates consists of:

		Quarter Ended				Nine Months Ended
In thousands	% Owned	July 28, 2024		July 30, 2023		July 28, 2024		July 30, 2023
MegaMex Foods, LLC(1)	50%	$	3,066	$	8,099	$	19,444	$	34,712
Other Equity Method Investments(2)	Various (20-50%)	4,912		1,685		19,806		7,501
Total Equity in Earnings of Affiliates		$	7,977	$	9,784	$	39,250	$	42,213

(1)    MegaMex Foods, LLC is reflected in the Retail segment.

(2)    Other Equity Method Investments are primarily reflected in the International segment but also include corporate venturing investments.

Distributions received from equity method investees consists of:

	Quarter Ended				Nine Months Ended
In thousands	July 28, 2024		July 30, 2023		July 28, 2024		July 30, 2023
Dividends	$	7,266	$	14,509	$	32,997	$	28,160

On December 15, 2022, the Company purchased from various minority shareholders a 29% common stock interest in PT Garudafood Putra Putri Jaya Tbk (Garudafood), a food and beverage company in Indonesia. On April 12, 2023, the Company purchased additional shares increasing the ownership interest to 30%. This investment expanded the Company’s presence in Southeast Asia to support the global execution of the entertaining and snacking strategy. The Company has the ability to exercise significant influence, but not control, over Garudafood; therefore, the investment is accounted for under the equity method.

The Company obtained its Garudafood interest for a purchase price of $425.8 million, including associated transaction costs. The transaction was funded using the Company’s cash on hand. Based on a third-party valuation, the Company’s basis difference between the fair value of the investment and proportionate share of the carrying value of Garudafood’s net assets is $324.8 million. The basis difference related to inventory, property, plant and equipment, and certain intangible assets is being amortized through Equity in Earnings of Affiliates over the associated useful lives. As of July 28, 2024, the remaining basis difference was $304.1 million, which includes the impact of foreign currency translation. Based on quoted market prices, the fair value of the common stock held in Garudafood was $258.4 million as of July 26, 2024.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $8.7 million was remaining as of July 28, 2024. This difference is being amortized through Equity in Earnings of Affiliates.