INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

9 Months Ended

Jul. 27, 2014

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

NOTE EINVESTMENTS 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 27, 2014	October 27, 2013
MegaMex Foods, LLC	Grocery Products	50%	$  203,471	$  203,413
Foreign Joint Ventures	International & Other	Various (26-50%)	59,665	67,196
Total			$  263,136	$  270,609

Equity in earnings of affiliates consists of the following:

		Three Months Ended				Nine Months Ended
(in thousands)	Segment	July 27, 2014		July 28, 2013		July 27, 2014		July 28, 2013
MegaMex Foods, LLC	Grocery Products	$	2,945	$	976	$	10,002	$	15,620
Foreign Joint Ventures	International & Other	595		370		1,860		2,763
Total		$	3,540	$	1,346	$	11,862	$	18,383

Dividends received from affiliates were $9.1 million and $19.1 million for the three and nine months ended July 27, 2014, respectively, compared to $14.0 million and $34.0 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 $17.2 million is remaining as of July 27, 2014.  This difference is being amortized through equity in earnings of affiliates.