INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

6 Months Ended

Apr. 27, 2014

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

NOTE E                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	April 27, 2014		October 27, 2013
MegaMex Foods, LLC	Grocery Products	50%	$	200,769	$	203,413
Foreign Joint Ventures	International & Other	Various (26-50%)	66,937		67,196
Total			$	267,706	$	270,609

Equity in earnings of affiliates consists of the following:

		Three Months Ended				Six Months Ended
(in thousands)	Segment	April 27, 2014		April 28, 2013		April 27, 2014		April 28, 2013
MegaMex Foods, LLC	Grocery Products	$	4,529	$	7,607	$	7,057	$	14,644
Foreign Joint Ventures	International & Other	(946)		(413)		1,265		2,393
Total		$	3,583	$	7,194	$	8,322	$	17,037

Dividends received from affiliates were $0.0 million and $10.0 million for the three and six months ended April 27, 2014, respectively, compared to $10.0 million and $20.0 million for the prior fiscal year.  The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $17.4 million is remaining as of April 27, 2014.  This difference is being amortized through equity in earnings of affiliates.