INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

9 Months Ended

Jul. 24, 2016

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

NOTE HINVESTMENTS 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 24, 2016		October 25, 2015
MegaMex Foods, LLC	Grocery Products	50%	$	194,340	$	200,110
Foreign Joint Ventures	International & Other	Various (26-40%)	62,721		58,888
Total			$	257,061	$	258,998

Equity in earnings of affiliates consists of the following:

		Three Months Ended				Nine Months Ended
(in thousands)	Segment	July 24, 2016		July 26, 2015		July 24, 2016		July 26, 2015
MegaMex Foods, LLC	Grocery Products	$	5,039	$	4,928	$	20,812	$	20,142
Foreign Joint Ventures	International & Other	1,342		1,468		6,637		(4,212)
Total		$	6,381	$	6,396	$	27,449	$	15,930

Dividends received from affiliates for the three and nine months ended July 24, 2016, were $10.0 million and $24.5 million, respectively, compared to $27.3 million and $37.3 million dividends received for the three and nine months ended July 26, 2015.  Equity in earnings in the first nine months of fiscal 2015 included nonrecurring charges related to the exit from international joint venture businesses.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $15.5 million is remaining as of July 24, 2016.  This difference is being amortized through equity in earnings of affiliates.