INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

6 Months Ended

Apr. 26, 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	April 26, 2015		October 26, 2014
MegaMex Foods, LLC	Grocery Products	50%	$	199,005	$	208,221
Foreign Joint Ventures	International & Other	Various (26-50%)	65,049		56,230
Total			$	264,054	$	264,451

Equity in earnings of affiliates consists of the following:

		Three Months Ended					Six Months Ended
(in thousands)	Segment	April 26, 2015		April 27, 2014			April 26, 2015			April 27, 2014
MegaMex Foods, LLC	Grocery Products	$	7,157	$	4,529		$	15,214		$	7,057
Foreign Joint Ventures	International & Other	717		(946		)	(5,680		)	1,265
Total		$	7,874	$	3,583		$	9,534		$	8,322

Equity in earnings in the first six months of fiscal 2015 included nonrecurring charges related to the exit from international joint venture businesses.  There were $10.0 million of dividends received from affiliates for both the three and six months ended April 26, 2015, respectively, compared to $0.0 million and $10.0 million dividends received for the three and six months ended April 27, 2014.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $16.6 million is remaining as of April 26, 2015.  This difference is being amortized through equity in earnings of affiliates.