INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

9 Months Ended

Jul. 29, 2012

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

NOTE D                INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

The Company accounts for its majority-owned operations under the consolidation method.  Investments in which the Company owns a minority interest, and for which there are no other indicators of control, are accounted for under the equity or cost method.  These investments, along with any related receivables from affiliates, are included in the Consolidated Statements of Financial Position as investments in and receivables from affiliates.

Investments in and receivables from affiliates consists of the following:

(in thousands)	Segment	% Owned	July 29, 2012	October 30, 2011
MegaMex Foods, LLC	Grocery Products	50%	$  216,076	$  205,523
Purefoods-Hormel Company	All Other	40%	59,442	65,140
San Miguel Purefoods (Vietnam) Co. Ltd.	All Other	49%	12,819	17,442
Other	Various	Various	8,448	7,593
Total			$  296,785	$  295,698

Equity in earnings of affiliates consists of the following:

		Three Months Ended		Nine Months Ended
(in thousands)	Segment	July 29, 2012	July 31, 2011	July 29, 2012	July 31, 2011
MegaMex Foods, LLC	Grocery Products	$   9,489	$   4,323	$  25,614	$	16,011
Purefoods-Hormel Company	All Other	1,167	1,017	5,636	3,821
San Miguel Purefoods (Vietnam) Co. Ltd.	All Other	(1,127)	109	(3,495)	(902)
Other	Various	294	113	885	209
Total		$  9,823	$  5,562	$  28,640	$	19,139

MegaMex Foods, LLC

On October 26, 2009, the Company completed the formation of MegaMex Foods, LLC (MegaMex), a 50/50 joint venture formed by the Company and Herdez Del Fuerte, S.A. de C.V. to market Mexican foods in the United States.  On October 6, 2010, MegaMex acquired 100 percent of the stock of Don Miguel Foods Corp. (Don Miguel).  Don Miguel is a leading provider of branded frozen and fresh authentic Mexican appetizers, snacks, and hand-held items.  On August 22, 2011, MegaMex acquired 100 percent of Fresherized Foods, which produces Wholly Guacamole®, Wholly Salsa® and Wholly Queso® products.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex, which is being amortized through equity in earnings of affiliates.