INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

3 Months Ended

Jan. 25, 2015

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	January 25, 2015	October 26, 2014
MegaMex Foods, LLC	Grocery Products	50%	$  200,332	$  208,221
Foreign Joint Ventures	International & Other	Various (26-50%)	55,445	56,230
Total			$  255,777	$  264,451

Equity in earnings of affiliates consists of the following:

		Three Months Ended
(in thousands)	Segment	January 25, 2015		January 26, 2014
MegaMex Foods, LLC	Grocery Products	$  8,057		$  2,528
Foreign Joint Ventures	International & Other	(6,397	)	2,211
Total		$  1,660		$  4,739

The decrease in equity in earnings in the first quarter of fiscal 2015 compared to the prior year included nonrecurring charges related to the exit from international joint venture businesses.  There were twenty-two thousand dollars of dividends received from affiliates for the three months ended January 25, 2015, compared to  $10.0 million dividends received for the three months ended January 26, 2014.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $16.8 million is remaining as of January 25, 2015.  This difference is being amortized through equity in earnings of affiliates.