INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

9 Months Ended

Jul. 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	July 26, 2015		October 26, 2014
MegaMex Foods, LLC	Grocery Products	50%	$	186,770	$	208,221
Foreign Joint Ventures	International & Other	Various (26-50%)	58,848		56,230
Total			$	245,618	$	264,451

Equity in earnings of affiliates consists of the following:

		Three Months Ended				Nine Months Ended
(in thousands)	Segment	July 26, 2015		July 27, 2014		July 26, 2015		July 27, 2014
MegaMex Foods, LLC	Grocery Products	$	4,928	$	2,945	$	20,142	$	10,002
Foreign Joint Ventures	International & Other	1,468		595		(4,212)		1,860
Total		$	6,396	$	3,540	$	15,930	$	11,862

Equity in earnings in the first nine months of fiscal 2015 included nonrecurring charges related to the exit from international joint venture businesses.  There were $27.3 million and $37.3 million of dividends received from affiliates for the three and nine months ended July 26, 2015, respectively, compared to $9.1 million and $19.1 million dividends received for the three and nine months ended July 27, 2014.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $16.4 million is remaining as of July 26, 2015.  This difference is being amortized through equity in earnings of affiliates.