Exhibit 99.4

The J. M. Smucker Company
Updated Item 1. Financial Statements of Part I of the First Quarter 2012 Form 10-Q

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

THE J. M. SMUCKER COMPANY

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

(Unaudited)

	Three Months Ended
	July 31,
	2011			2010
	(Dollars in thousands, except per
	share data)
Net sales	$	1,188,883		$	1,047,312
Cost of products sold		747,373			629,424
Cost of products sold — restructuring		9,666			9,453
Cost of products sold — merger and integration		760			0
Gross Profit		431,084			408,435
Selling, distribution, and administrative expenses		216,552			203,261
Amortization		20,235			18,497
Other restructuring costs		9,897			18,104
Other merger and integration costs		4,685			2,656
Other operating (income) expense — net		(988	)		750
Operating Income		180,703			165,167
Interest income		302			433
Interest expense		(15,422	)		(16,539	)
Other income — net		1,243			693
Income Before Income Taxes		166,826			149,754
Income taxes		55,303			46,873
Net Income	$	111,523		$	102,881
Earnings per common share:
Net Income	$	0.98		$	0.86
Net Income — Assuming Dilution	$	0.98		$	0.86
Dividends declared per common share	$	0.48		$	0.40

See notes to unaudited condensed consolidated financial statements.

THE J. M. SMUCKER COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	July 31, 2011			April 30, 2011
	(Dollars in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	102,475		$	319,845
Trade receivables, less allowances		350,293			344,410
Inventories:
Finished products		753,054			518,243
Raw materials		460,767			345,336
		1,213,821			863,579
Other current assets		73,183			109,165
Total Current Assets		1,739,772			1,636,999
PROPERTY, PLANT, AND EQUIPMENT
Land and land improvements		87,005			77,074
Buildings and fixtures		369,854			347,950
Machinery and equipment		1,064,316			1,022,670
Construction in progress		103,805			76,778
		1,624,980			1,524,472
Accumulated depreciation		(699,293	)		(656,590	)
Total Property, Plant, and Equipment		925,687			867,882
OTHER NONCURRENT ASSETS
Goodwill		2,903,713			2,812,746
Other intangible assets, net		3,132,761			2,940,010
Other noncurrent assets		80,090			66,948
Total Other Noncurrent Assets		6,116,564			5,819,704
	$	8,782,023		$	8,324,585
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	288,082		$	234,916
Accrued trade marketing and merchandising		81,362			62,588
Income taxes payable		38,375			7,706
Revolving credit agreement		306,700			0
Other current liabilities		160,715			177,466
Total Current Liabilities		875,234			482,676
NONCURRENT LIABILITIES
Long-term debt		1,318,489			1,304,039
Deferred income taxes		1,038,319			1,042,823
Other noncurrent liabilities		201,727			202,684
Total Noncurrent Liabilities		2,558,535			2,549,546
SHAREHOLDERS’ EQUITY
Common shares		28,596			28,543
Additional capital		4,406,824			4,396,592
Retained income		922,944			866,933
Amount due from ESOP Trust		(2,572	)		(3,334	)
Accumulated other comprehensive (loss) income		(7,538	)		3,629
Total Shareholders’ Equity		5,348,254			5,292,363
	$	8,782,023		$	8,324,585

See notes to unaudited condensed consolidated financial statements.

THE J. M. SMUCKER COMPANY

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

(Unaudited)

	Three Months Ended July 31,
	2011			2010
	(Dollars in thousands)
OPERATING ACTIVITIES
Net income	$	111,523		$	102,881
Adjustments to reconcile net income to net cash used for operating activities:
Depreciation		27,569			29,360
Depreciation — restructuring and merger and integration		10,415			9,453
Amortization		20,235			18,497
Share-based compensation expense		6,032			5,328
Other noncash restructuring charges		909			3,849
Loss on sale of assets — net		725			134
Changes in assets and liabilities, net of effect from business acquired:
Trade receivables		7,512			(66,958	)
Inventories		(330,854	)		(111,907	)
Accounts payable and accrued items		55,380			32,969
Defined benefit pension contributions		(3,691	)		(10,544	)
Income taxes		30,616			(43,555	)
Other — net		5,391			3,255
Net cash used for operating activities		(58,238	)		(27,238	)
INVESTING ACTIVITIES
Business acquired, net of cash acquired		(362,846	)		0
Additions to property, plant, and equipment		(67,632	)		(26,946	)
Sale and maturity of marketable securities		18,600			0
Purchases of marketable securities		0			(57,037	)
Proceeds from disposal of property, plant, and equipment		130			290
Other — net		(18	)		40
Net cash used for investing activities		(411,766	)		(83,653	)
FINANCING ACTIVITIES
Revolving credit agreement — net		306,700			0
Proceeds from long-term debt		0			400,000
Quarterly dividends paid		(50,159	)		(47,594	)
Purchase of treasury shares		(5,385	)		(5,033	)
Proceeds from stock option exercises		242			1,325
Other — net		2,534			2,213
Net cash provided by financing activities		253,932			350,911
Effect of exchange rate changes		(1,298	)		(817	)
Net (decrease) increase in cash and cash equivalents		(217,370	)		239,203
Cash and cash equivalents at beginning of period		319,845			283,570
Cash and cash equivalents at end of period	$	102,475		$	522,773

( ) Denotes use of cash

See notes to unaudited condensed consolidated financial statements.

THE J. M. SMUCKER COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, unless otherwise noted, except per share data)

Note A — Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified to conform to current year classifications.

Operating results for the three-month period ended July 31, 2011, are not necessarily indicative of the results that may be expected for the year ending April 30, 2012. For further information, reference is made to the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended April 30, 2011.

Note B — Recently Issued Accounting Standards

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. ASU 2011-04 provides clarification about the application of existing fair value measurement and disclosure requirements and expands certain other disclosure requirements. This ASU will be effective February 1, 2012, for the Company.

In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income, which eliminates the option to present the components of other comprehensive income as part of the statement of shareholders’ equity and requires the presentation of net income and other comprehensive income to be in a single continuous statement of comprehensive income or in two separate but consecutive statements. The guidance does not change the components that are recognized in net income or other comprehensive income. This ASU will be effective May 1, 2012, for the Company and requires retrospective application. Adoption of this guidance will affect the presentation of certain elements of the Company’s financial statements, but these changes in presentation will not otherwise have an impact on the financial statements.

Note C — Rowland Coffee Acquisition

On May 16, 2011, the Company completed an acquisition of the coffee brands and business operations of Rowland Coffee Roasters, Inc. (“Rowland Coffee”), a privately-held company headquartered in Miami, Florida, for $362.8 million. The acquisition includes a manufacturing, distribution, and office facility in Miami. The Company utilized cash on hand and borrowed $180.0 million under its revolving credit facility. In addition, the Company incurred one-time costs of $2.4 million to date, that were directly related to the merger and integration of Rowland Coffee, which includes approximately $0.8 million in noncash expense items that were reported in cost of products sold, while the remaining charges were reported in other merger and integration costs in the Condensed Statements of Consolidated Income. Total one-time costs related to the acquisition are estimated to be between $25.0 million and $30.0 million, including approximately $15.0 million of noncash charges associated with consolidating coffee production currently in Miami, into the Company’s existing facilities in New Orleans, Louisiana. The Company expects these costs to be incurred over the next two to four years.

Rowland Coffee is a leading producer of espresso coffee in the U.S., generating total net sales in excess of $110.0 million in calendar 2010. The acquisition strengthens and broadens the Company’s leadership in the U.S. retail coffee category by adding the leading Hispanic brands, Café Bustelo^® and Café Pilon^TM, to the Company’s family of brands.

The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The Company determined the estimated fair values based on independent appraisals, discounted cash flow analyses, and estimates made by management. The purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired, and as such the excess was allocated to goodwill. The purchase price allocation is preliminary and subject to adjustment following the finalization of the valuation. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Assets acquired:
Current assets	$	33,817
Property, plant, and equipment		29,227
Intangible assets		213,500
Goodwill		91,714
Total assets acquired	$	368,258
Liabilities assumed:
Current liabilities	$	5,412
Total liabilities assumed	$	5,412
Net assets acquired	$	362,846

Goodwill of $84.9 million and $6.8 million was assigned to the U.S. Retail Coffee and the International, Foodservice, and Natural Foods segments, respectively, all of which is deductible for tax purposes.

The purchase price allocated to the identifiable intangible assets acquired is as follows:

Intangible assets with finite lives:
Customer relationships (19-year weighted-average useful life)	$	147,800
Trademark (10-year useful life)		1,600
Intangible assets with indefinite lives:
Trademarks	$	64,100
Total intangible assets	$	213,500

The results of operations of the Rowland Coffee business are included in the Company’s consolidated financial statements from the date of acquisition and include $23.2 million of net sales and $1.7 million of total segment profit included in the U.S. Retail Coffee and International, Foodservice, and Natural Foods segment financial results for the three months ended July 31, 2011. Had the acquisition occurred on May 1, 2010, there would not have been a material impact to consolidated results for the three months ended July 31, 2010.

Note D — Restructuring

During calendar 2010, the Company announced its plan to restructure its coffee, fruit spreads, and Canadian pickle and condiments operations as part of its ongoing efforts to enhance the long-term strength and profitability of its leading brands. The initiative is a long-term investment to optimize production capacity and lower the overall cost structure. It includes capital investments for a new state-of-the-art food manufacturing facility in Orrville, Ohio, and consolidation of coffee production in New Orleans, Louisiana. The Company’s pickle and condiments production will be transitioned to third-party manufacturers.

The Company expects to incur restructuring costs of approximately $235.0 million, of which $127.2 million has been incurred through July 31, 2011. The balance of the costs is anticipated to be recognized over the next three fiscal years.

Upon completion in 2014, the restructuring plan will result in a reduction of approximately 850 full-time positions and the closing of six of the Company’s facilities — Memphis, Tennessee; Ste.

Marie, Quebec; Sherman, Texas; Kansas City, Missouri; Dunnville, Ontario; and Delhi Township, Ontario. The Sherman facility closed in April 2011.

The following table summarizes the restructuring activity, including the reserves established and the total amount expected to be incurred.

							Site Preparation
	Long-Lived			Employee			and Equipment			Production
	Asset Charges			Separation			Relocation			Start-up			Other Costs			Total
Total expected restructuring charge	$	118,000		$	60,000		$	23,500		$	23,000		$	10,500		$	235,000
Balance at May 1, 2010	$	0		$	1,089		$	0		$	0		$	0		$	1,089
Charge to expense		53,569			36,010			6,192			5,194			992			101,957
Cash payments		0			(18,361	)		(6,192	)		(5,194	)		(992	)		(30,739	)
Noncash utilization		(53,569	)		(8,540	)		0			0			0			(62,109	)
Balance at April 30, 2011	$	0		$	10,198		$	0		$	0		$	0		$	10,198
Charge to expense		9,655			5,785			1,988			1,738			397			19,563
Cash payments		0			(3,505	)		(1,988	)		(1,738	)		(397	)		(7,628	)
Noncash utilization		(9,655	)		(909	)		0			0			0			(10,564	)
Balance at July 31, 2011	$	0		$	11,569		$	0		$	0		$	0		$	11,569
Remaining expected restructuring charge	$	50,906		$	17,066		$	14,913		$	16,052		$	8,832		$	107,769

Total restructuring charges of $19,563 and $27,557 in the three months ended July 31, 2011 and 2010, respectively, were reported in the Condensed Statements of Consolidated Income. Of the total restructuring charges, $9,666 and $9,453 were reported in cost of products sold in the three months ended July 31, 2011 and 2010, respectively, while the remaining charges were reported in other restructuring costs. The restructuring costs classified as cost of products sold primarily include long-lived asset charges for accelerated depreciation related to property, plant, and equipment that will be used at the affected production facilities until they are closed or sold.

Expected employee separation costs include severance, retention bonuses, and pension costs. Severance costs and retention bonuses are being recognized over the estimated future service period of the affected employees. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheets. For additional information on the impact of the restructuring plan on defined benefit pension and other postretirement benefit plans, see Note J — Pensions and Other Postretirement Benefits.

Other costs include professional fees, costs related to closing the facilities, and miscellaneous expenditures associated with the Company’s restructuring initiative and are expensed as incurred.

Note E — Share-Based Payments

The Company provides for equity-based incentives to be awarded to key employees and non-employee directors. These incentives are administered primarily through the 2010 Equity and Incentive Compensation Plan, and currently consist of restricted shares, restricted stock units, deferred shares, deferred stock units, performance units, and stock options.

The following table summarizes amounts related to share-based payments.

	Three Months Ended
	July 31,
	2011		2010
Share-based compensation expense included in selling, distribution, and administrative expenses	$	5,151	$	4,340
Share-based compensation expense included in other merger and integration costs		881		988
Share-based compensation expense included in other restructuring costs		43		64
Total share-based compensation expense	$	6,075	$	5,392
Related income tax benefit	$	2,014	$	1,688

As of July 31, 2011, total compensation cost related to nonvested share-based awards not yet recognized was approximately $46,541. The weighted-average period over which this amount is expected to be recognized is approximately 3.6 years.

Note F — Common Shares

The following table sets forth common share information.

	July 31, 2011		April 30, 2011
Common shares authorized		150,000,000		150,000,000
Common shares outstanding		114,383,657		114,172,122
Treasury shares		14,221,508		14,432,043

Note G — Reportable Segments

The Company operates in one industry: the manufacturing and marketing of food products. Effective May 1, 2011, the Company’s reportable segments have been modified to align segment financial results with the responsibilities of segment management, consistent with the executive appointments announced in March 2011. As a result, the Company now presents the following three reportable segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, and International, Foodservice, and Natural Foods. The U.S. Retail Coffee segment primarily represents the domestic sales of Folgers^®, Dunkin’ Donuts^®, Millstone^®, Café Bustelo^®, and Café Pilon^TM branded coffee to retail customers; the U.S. Retail Consumer Foods segment primarily includes domestic sales of Smucker’s^®, Crisco^®, Jif^®, Pillsbury^®, Eagle Brand^®, Hungry Jack^®, and Martha White^® branded products; and the International, Foodservice, and Natural Foods segment is comprised of products distributed domestically and in foreign countries through retail channels, foodservice distributors and operators (e.g., restaurants, schools and universities, health care operators), and health and natural foods stores and distributors.

Also effective May 1, 2011, certain specialty brands which were previously included in the U.S. Retail Consumer Foods segment are included in the International, Foodservice, and Natural Foods segment (“product realignments”). Segment performance for 2011 has been reclassified for these product realignments and the organizational changes described above.

The following table sets forth reportable segment information.

	Three Months Ended
	July 31,
	2011			2010
Net sales:
U.S. Retail Coffee	$	500,109		$	393,570
U.S. Retail Consumer Foods		459,500			448,522
International, Foodservice, and Natural Foods		229,274			205,220
Total net sales	$	1,188,883		$	1,047,312
Segment profit:
U.S. Retail Coffee	$	139,711		$	111,882
U.S. Retail Consumer Foods		79,019			93,355
International, Foodservice, and Natural Foods		38,545			35,521
Total segment profit	$	257,275		$	240,758
Interest income		302			433
Interest expense		(15,422	)		(16,539	)
Share-based compensation expense		(5,151	)		(4,340	)
Cost of products sold — restructuring		(9,666	)		(9,453	)
Cost of products sold — merger and integration		(760	)		—
Other restructuring costs		(9,897	)		(18,104	)
Other merger and integration costs		(4,685	)		(2,656	)
Corporate administrative expenses		(46,413	)		(41,038	)
Other income — net		1,243			693
Income before income taxes	$	166,826		$	149,754

Note H — Debt and Financing Arrangements

Long-term debt consists of the following:

	July 31, 2011		April 30, 2011
4.78% Senior Notes due June 1, 2014	$	100,000	$	100,000
6.12% Senior Notes due November 1, 2015		24,000		24,000
6.63% Senior Notes due November 1, 2018		394,489		380,039
5.55% Senior Notes due April 1, 2022		400,000		400,000
4.50% Senior Notes due June 1, 2025		400,000		400,000
Total long-term debt	$	1,318,489	$	1,304,039

In 2011, the Company entered into an interest rate swap on the 6.63 percent Senior Notes due November 1, 2018. The notional amount was $376.0 million, converting the Senior Notes from a fixed to a variable-rate basis until maturity. The interest rate swap was designated as a fair value hedge of the underlying debt obligation. The fair value adjustment of the interest rate swap at July 31, 2011 and April 30, 2011, was $18.5 million and $4.0 million, respectively, and was recorded as an increase in the long-term debt balance.

Subsequent to July 31, 2011, the Company terminated its interest rate swap agreement prior to maturity. As a result of the early termination, the Company received $27.0 million in cash, which included $2.8 million of interest receivable, and will realize a $24.2 million reduction of future interest expense through November 1, 2018. For additional information, see Note M — Derivative Financial Instruments.

All of the Company’s Senior Notes are unsecured and interest is paid semiannually. Scheduled payments are required on the 5.55 percent Senior Notes, the first of which is $50.0 million on April 1, 2013, and on the 4.50 percent Senior Notes, the first of which is $100.0 million on June 1, 2020.

On July 29, 2011, the Company entered into a second amended and restated credit agreement with a group of ten banks. The credit facility, which amends and restates in its entirety the $600.0 million credit agreement dated as of January 31, 2011, provides for an unsecured revolving credit line of $1.0 billion and matures July 29, 2016. The Company’s borrowings under the credit facility will bear interest based on prevailing U.S. Prime Rate, Canadian Base Rate, London Interbank Offered Rate, or Canadian Dealer Offered Rate, as determined by the Company. Interest is payable either on a quarterly basis or at the end of the borrowing term. At July 31, 2011, the Company had an outstanding balance of $306.7 million under the revolving credit facility at a weighted average interest rate of 1.52 percent. Subsequent to July 31, 2011, the Company borrowed additional funds, bringing the total outstanding balance under the

revolving credit facility to $480.0 million at August 31, 2011, at a weighted average interest rate of 1.42 percent.

The Company’s debt instruments contain certain financial covenant restrictions including consolidated net worth, a leverage ratio, and an interest coverage ratio. The Company is in compliance with all covenants.

Note I — Earnings per Share

The following tables set forth the computation of net income per common share and net income per common share — assuming dilution.

	Three Months Ended July 31,
	2011		2010
Computation of net income per share:
Net income	$	111,523	$	102,881
Net income allocated to participating securities		1,127		987
Net income allocated to common shareholders	$	110,396	$	101,894
Weighted-average common shares outstanding		113,122,789		118,156,815
Net income per common share	$	0.98	$	0.86

	Three Months Ended July 31,
	2011		2010
Computation of net income per share — assuming dilution:
Net income	$	111,523	$	102,881
Net income allocated to participating securities		1,127		986
Net income allocated to common shareholders	$	110,396	$	101,895
Weighted-average common shares outstanding		113,122,789		118,156,815
Dilutive effect of stock options		57,637		139,564
Weighted-average common shares outstanding — assuming dilution		113,180,426		118,296,379
Net income per common share — assuming dilution	$	0.98	$	0.86

The following table reconciles the weighted-average common shares used in the basic and diluted earnings per share disclosures to the total weighted-average shares outstanding.

	Three Months Ended July 31,
	2011		2010
Weighted-average common shares outstanding		113,122,789		118,156,815
Weighted-average participating shares outstanding		1,154,758		1,144,111
Total weighted-average shares outstanding		114,277,547		119,300,926
Dilutive effect of stock options		57,637		139,564
Total weighted-average shares outstanding — assuming dilution		114,335,184		119,440,490

Note J — Pensions and Other Postretirement Benefits

The components of the Company’s net periodic benefit cost for defined benefit pension and other postretirement benefit plans are shown below.

	Three Months Ended July 31,
	Defined Benefit Pension Plans						Other Postretirement Benefits
	2011			2010			2011			2010
Service cost	$	2,062		$	1,858		$	525		$	405
Interest cost		6,523			6,346			780			690
Expected return on plan assets		(6,885	)		(6,657	)		0			0
Recognized net actuarial loss (gain)		2,201			1,727			(25	)		(134	)
Termination benefit cost		0			7,462			0			2,413
Curtailment		0			3,910			0			0
Other		300			288			(100	)		(122	)
Net periodic benefit cost	$	4,201		$	14,934		$	1,180		$	3,252

Upon completion of the restructuring plan discussed in Note D — Restructuring, approximately 850 full-time positions will be reduced. The Company has included the estimated impact of the planned reductions in measuring the net periodic benefit cost of the defined benefit pension and other postretirement benefit plans for the three months ended July 31, 2011 and 2010. Included above are charges recognized during the three months ended July 31, 2010, for termination benefits and curtailment as a result of the restructuring plan.

Note K — Comprehensive Income

The following table summarizes the components of comprehensive income.

	Three Months Ended July 31,
	2011			2010
Net income	$	111,523		$	102,881
Other comprehensive (loss) income:
Foreign currency translation adjustments		(3,321	)		(3,608	)
Unrealized loss on available-for-sale securities		(206	)		(1,397	)
Unrealized (loss) gain on cash flow hedging derivatives, net		(12,122	)		8,968
Unrealized loss on pension and other postretirement liabilities		0			(300	)
Income tax benefit (expense)		4,482			(2,863	)
Comprehensive income	$	100,356		$	103,681

Note L —Contingencies

The Company, like other food manufacturers, is from time to time subject to various administrative, regulatory, and other legal proceedings arising in the ordinary course of business. The Company is a defendant in a variety of legal proceedings. The Company cannot predict with certainty the ultimate results of these proceedings or reasonably determine a range of potential loss. The Company’s policy is to accrue costs for contingent liabilities when such

liabilities are probable and amounts can be reasonably estimated. Based on the information known to date, the Company does not believe the final outcome of these proceedings will have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

Note M — Derivative Financial Instruments

The Company is exposed to market risks, such as changes in commodity prices, foreign currency exchange rates, and interest rates. To manage the volatility relating to these exposures, the Company enters into various derivative transactions. By policy, the Company historically has not entered into derivative financial instruments for trading purposes or for speculation.

Commodity Price Management. The Company enters into commodity futures and options contracts to manage the price volatility and reduce the variability of future cash flows related to anticipated inventory purchases of green coffee, edible oils, flour, milk, corn, and corn sweetener. The Company also enters into commodity futures and options contracts to manage price risk for energy input costs, including natural gas and diesel fuel. The derivative instruments generally have maturities of less than one year.

Certain of the derivative instruments associated with the Company’s U.S. Retail Consumer Foods and U.S. Retail Coffee segments meet the hedge criteria and are accounted for as cash flow hedges. The mark-to-market gains or losses on qualifying hedges are deferred and included as a component of accumulated other comprehensive (loss) income to the extent effective, and reclassified to cost of products sold in the period during which the hedged transaction affects earnings. Cash flows related to qualifying hedges are classified consistently with the cash flows from the hedged item in the Condensed Statements of Consolidated Cash Flows. In order to qualify as a hedge of commodity price risk, it must be demonstrated that the changes in the fair value of the commodity’s futures contracts are highly effective in hedging price risks associated with the commodity purchased. Hedge effectiveness is measured and assessed at inception and on a monthly basis. The mark-to-market gains or losses on nonqualifying and ineffective portions of commodity hedges are recognized in cost of products sold immediately.

Foreign Currency Exchange Rate Hedging. The Company utilizes foreign currency forwards and options contracts to manage the effect of foreign currency exchange fluctuations on future cash payments primarily related to purchases of certain raw materials, finished goods, and fixed assets. The contracts generally have maturities of less than one year. At the inception of the contract, the derivative is evaluated and documented for hedge accounting treatment. Instruments currently used to manage foreign currency exchange exposures do not meet the requirements for hedge accounting treatment and the change in value of these instruments is immediately recognized in cost of products sold. If the contract qualifies for hedge accounting treatment, to the extent the hedge is deemed effective, the associated mark-to-market gains and losses are deferred and included as a component of accumulated other comprehensive

(loss) income. These gains or losses are reclassified to earnings in the period the contract is executed. The ineffective portion of these contracts is immediately recognized in earnings.

Interest Rate Hedging. The Company utilizes derivative instruments to manage changes in the fair value of its debt. Interest rate swaps mitigate the risk associated with the underlying hedged item. At the inception of the contract, the instrument is evaluated and documented for hedge accounting treatment. The Company’s interest rate swap met the criteria to be designated as a fair value hedge. The Company receives a fixed rate and pays variable rates, hedging the underlying debt and the associated changes in the fair value of the debt. The interest rate swap is recognized at fair value in the Condensed Consolidated Balance Sheets, and changes in the fair value are recognized in interest expense. Gains and losses recognized in interest expense on the instrument have no net impact to earnings as the change in the fair value of the derivative is equal to the change in fair value of the underlying debt.

Subsequent to July 31, 2011, the Company terminated its interest rate swap agreement prior to maturity. For additional information, see Note H — Debt and Financing Arrangements.

The following table sets forth the fair value of derivative instruments recognized in the Condensed Consolidated Balance Sheets.

	July 31, 2011						April 30, 2011
	Other		Other		Other		Other		Other		Other
	Current		Noncurrent		Current		Current		Current		Noncurrent
	Assets		Assets		Liabilities		Assets		Liabilities		Liabilities
Derivatives designated as hedging
instruments:
Commodity contracts	$	914	$	0	$	598	$	3,408	$	0	$	0
Interest rate contract		7,919		10,569		0		5,423		0		1,384
Total derivatives designated as hedging instruments	$	8,833	$	10,569	$	598	$	8,831	$	0	$	1,384
Derivatives not designated as hedging
instruments:
Commodity contracts	$	13,092	$	0	$	4,181	$	9,887	$	5,432	$	0
Foreign currency exchange contracts		186		29		1,963		317		3,204		0
Total derivatives not designated as hedging instruments	$	13,278	$	29	$	6,144	$	10,204	$	8,636	$	0
Total derivatives instruments	$	22,111	$	10,598	$	6,742	$	19,035	$	8,636	$	1,384

The Company has elected to not offset fair value amounts recognized for commodity derivative instruments and its cash margin accounts executed with the same counterparty. The Company maintained cash margin accounts of $4,077 and $12,292 at July 31, 2011 and April 30, 2011, respectively, that are included in other current assets in the Condensed Consolidated Balance Sheets.

The following table presents information on gains and losses recognized on derivatives designated as cash flow hedges, all of which hedge commodity price risk.

	Three Months Ended July 31,
	2011			2010
(Losses) gains recognized in other comprehensive (loss) income (effective portion)	$	(6,014	)	$	8,931
Gains (losses) reclassified from accumulated other comprehensive (loss) income to cost of products sold (effective portion)		6,108			(37	)
Change in accumulated other comprehensive (loss) income	$	(12,122	)	$	8,968
(Losses) gains recognized in cost of products sold (ineffective portion)	$	(121	)	$	171

Included as a component of accumulated other comprehensive (loss) income at July 31, 2011 and April 30, 2011, were deferred pre-tax losses of $2,692 and deferred pre-tax gains of $9,430, respectively. The related tax impact recognized in accumulated other comprehensive (loss) income was $979 and $3,430 at July 31, 2011 and April 30, 2011, respectively. The entire amount of the deferred loss included in accumulated other comprehensive loss at July 31, 2011, is expected to be recognized in earnings within one year as the related commodity is sold.

The following table presents the net realized and unrealized gains recognized in cost of products sold on derivatives not designated as qualified hedging instruments.

	Three Months Ended
	July 31,
	2011		2010
Gains on commodity contracts	$	13,697	$	4,393
Gains on foreign currency exchange contracts		85		477
Gains recognized in cost of products sold (derivatives not designated as hedging instruments)	$	13,782	$	4,870

The following table presents the gross contract notional value of outstanding derivative contracts.

	July 31, 2011		April 30, 2011
Commodity contracts	$	965,726	$	869,107
Foreign currency exchange contracts		100,602		73,158
Interest rate contract		376,000		376,000

Note N — Other Financial Instruments and Fair Value Measurements

Financial instruments, other than derivatives, that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments and trade receivables. Under the Company’s investment policy, it may invest in securities deemed to be investment grade at the time of purchase. The Company determines the appropriate categorization of debt securities at the time of purchase and reevaluates such designation at each balance sheet date.

The fair value of the Company’s financial instruments, other than its long-term debt, approximates their carrying amounts. The following table provides information on the carrying amount and fair value of the Company’s financial instruments.

	July 31, 2011				April 30, 2011
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
Marketable securities	$	—	$	—	$	18,600	$	18,600
Other investments		41,779		41,779		41,560		41,560
Derivatives financial instruments, net		25,967		25,967		9,015		9,015
Long-term debt		1,318,489		1,661,566		1,304,039		1,648,614

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect the Company’s market assumptions.

The following table summarizes the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for the Company’s financial assets (liabilities) measured at fair value on a recurring basis.

	Quoted Prices in			Significant		Significant
	Active Markets for			Observable		Unobservable
	Identical Assets			Inputs		Inputs		Fair Value at			Fair Value at
	(Level 1)			(Level 2)		(Level 3)		July 31, 2011			April 30, 2011
Marketable securities: (A)	$	0		$	0	$	0	$	0		$	18,600
Other investments: (B)
Equity mutual funds		13,861			0		0		13,861			14,011
Municipal obligations		0			20,473		0		20,473			20,042
Other investments		402			7,043		0		7,445			7,507
Derivatives: (C)
Commodity contracts, net		9,227			0		0		9,227			7,863
Foreign currency exchange contracts, net		(1,748	)		0		0		(1,748	)		(2,887	)
Interest rate contract, net		0			18,488		0		18,488			4,039
Total financial assets measured at fair value	$	21,742		$	46,004	$	0	$	67,746		$	69,175

(A)	The Company’s marketable securities consisted entirely of commercial paper. One security of $10.0 million was sold and one security of $8.6 million matured in the three months ended July 31, 2011. They were broker-priced and valued by a third party using an evaluated pricing methodology. An evaluated pricing methodology is a valuation technique which uses inputs that are derived principally from or corroborated by observable market data.
(B)	The Company’s other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets and municipal obligations valued by a third party using an evaluated pricing methodology. As of July 31, 2011, the Company’s municipal obligations are scheduled to mature as follows: $1,463 in 2012, $3,392 in 2013, $741 in 2014, $2,764 in 2015, and $12,113 in 2016 and beyond.
(C)	The Company’s commodity contract and foreign currency exchange contract derivatives are valued using quoted market prices. The Company’s interest rate contract derivative is valued using the income approach, observable Level 2 market expectations at the measurement date, and standard valuation techniques to convert future amounts to a single discounted present value. Level 2 inputs for the interest rate contract are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability. For additional information, see Note M — Derivative Financial Instruments.

Note O — Income Taxes

Income tax expense increased $8.4 million in the three months ended July 31, 2011, resulting in an increase in the effective tax rate to 33.2 percent, compared to 31.3 percent in the first quarter of 2011. The effective tax rate in the three months ended July 31, 2010, benefited from a favorable federal income tax determination related to a prior year, a higher domestic manufacturing deduction, and lower state income tax expense relative to the three months ended July 31, 2011.

During the three months ended July 31, 2011, the effective income tax rate varied from the U.S. statutory income tax rate primarily due to the domestic manufacturing deduction partially offset by state income taxes.

Within the next twelve months, it is reasonably possible that the Company could decrease its unrecognized tax benefits by an additional $1.1 million, primarily as a result of expiring statute of limitations periods.

Note P: Guarantor and Non-Guarantor Financial Information

The Company anticipates filing a registration statement on Form S-3 which, when such registration statement becomes effective, will register certain securities described therein, including debt securities which may be guaranteed by certain of the Company’s subsidiaries. The Company may sell debt securities pursuant to the registration statement and, if so, it is expected that such securities would be fully and unconditionally guaranteed, on a joint and several basis, by the following 100% directly or indirectly owned subsidiaries of the Company: J.M. Smucker LLC and The Folgers Coffee Company (the “subsidiary guarantors”). Therefore, the Company is providing the following condensed consolidating financial information for the Company, the subsidiary guarantors, and the non-guarantor subsidiaries. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with the Company’s wholly-owned subsidiary guarantors and non-guarantor subsidiaries. The Company has accounted for investments in subsidiaries under the equity method.

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

Quarter Ended July 31, 2011

	The J.M. Smucker			Subsidiary			Non-Guarantor
	Company (Parent)			Guarantors			Subsidiaries			Eliminations			Consolidated
Net sales	$	917,109		$	347,488		$	753,389		$	(829,103	)	$	1,188,883
Cost of products sold		780,585			318,295			484,957			(826,038	)		757,799
Gross Profit		136,524			29,193			268,432			(3,065	)		431,084
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		59,315			12,202			159,617			0			231,134
Amortization		1,297			0			18,938			0			20,235
Other operating expense (income) — net		67			(498	)		(557	)		0			(988	)
Operating Income		75,845			17,489			90,434			(3,065	)		180,703
Interest (expense) income — net		(15,374	)		975			(721	)		0			(15,120	)
Other income — net		791			117			335			0			1,243
Equity in net earnings of subsidiaries		69,586			46,319			17,608			(133,513	)		0
Income Before Income Taxes		130,848			64,900			107,656			(136,578	)		166,826
Income taxes		19,325			323			35,655			0			55,303
Net Income	$	111,523		$	64,577		$	72,001		$	(136,578	)	$	111,523

Quarter Ended July 31, 2010

	The J.M. Smucker			Subsidiary		Non-Guarantor
	Company (Parent)			Guarantors		Subsidiaries			Eliminations			Consolidated
Net sales	$	822,307		$	619,257	$	893,326		$	(1,287,578	)	$	1,047,312
Cost of products sold		672,077			550,930		684,019			(1,268,149	)		638,877
Gross Profit		150,230			68,327		209,307			(19,429	)		408,435
Selling, distribution, and administrative expenses, restructuring, and merger and integration costs		47,598			28,450		147,973			0			224,021
Amortization		1,297			16,168		1,032			0			18,497
Other operating (income) expense — net		(280	)		209		821			0			750
Operating Income		101,615			23,500		59,481			(19,429	)		165,167
Interest (expense) income — net		(16,155	)		975		(926	)		0			(16,106	)
Other (expense) income — net		(79	)		158		614			0			693
Equity in net earnings of subsidiaries		36,661			19,262		17,260			(73,183	)		0
Income Before Income Taxes		122,042			43,895		76,429			(92,612	)		149,754
Income taxes		19,161			2,438		25,274			0			46,873
Net Income	$	102,881		$	41,457	$	51,155		$	(92,612	)	$	102,881

CONDENSED CONSOLIDATED BALANCE SHEETS

July 31, 2011

	The J.M. Smucker		Subsidiary		Non-Guarantor
	Company (Parent)		Guarantors		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	75	$	0	$	102,400	$	0		$	102,475
Inventories		0		217,662		1,018,925		(22,766	)		1,213,821
Other current assets		340,729		7,781		74,966		0			423,476
Total Current Assets		340,804		225,443		1,196,291		(22,766	)		1,739,772
PROPERTY, PLANT, AND EQUIPMENT, NET		202,604		328,217		394,866		0			925,687
INVESTMENTS IN SUBSIDIARIES AND INTERCOMPANY		5,493,671		825,624		680,792		(7,000,087	)		0
OTHER NONCURRENT ASSETS
Goodwill		976,618		0		1,927,095		0			2,903,713
Other intangible assets, net		439,734		0		2,693,027		0			3,132,761
Other noncurrent assets		61,965		12,474		5,651		0			80,090
Total Other Noncurrent Assets		1,478,317		12,474		4,625,773		0			6,116,564
	$	7,515,396	$	1,391,758	$	6,897,722	$	(7,022,853	)	$	8,782,023
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES	$	570,895	$	98,619	$	205,720	$	0		$	875,234
NONCURRENT LIABILITIES
Long-term debt		1,318,489		0		0		0			1,318,489
Deferred income taxes		115,911		0		922,408		0			1,038,319
Other noncurrent liabilities		161,847		16,439		23,441		0			201,727
Total Noncurrent Liabilities		1,596,247		16,439		945,849		0			2,558,535
SHAREHOLDERS’ EQUITY		5,348,254		1,276,700		5,746,153		(7,022,853	)		5,348,254
	$	7,515,396	$	1,391,758	$	6,897,722	$	(7,022,853	)	$	8,782,023

April 30, 2011

	The J.M. Smucker		Subsidiary		Non-Guarantor
	Company (Parent)		Guarantors		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	206,845	$	0	$	113,000	$	0		$	319,845
Inventories		0		182,531		700,750		(19,702	)		863,579
Other current assets		364,377		8,190		81,008		0			453,575
Total Current Assets		571,222		190,721		894,758		(19,702	)		1,636,999
PROPERTY, PLANT, AND EQUIPMENT, NET		193,321		305,519		369,042		0			867,882
INVESTMENTS IN SUBSIDIARIES AND INTERCOMPANY		4,872,622		802,936		1,209,603		(6,885,161	)		0
OTHER NONCURRENT ASSETS
Goodwill		981,606		0		1,831,140		0			2,812,746
Other intangible assets, net		440,174		3,116		2,496,720		0			2,940,010
Other noncurrent assets		50,012		15,106		1,830		0			66,948
Total Other Noncurrent Assets		1,471,792		18,222		4,329,690		0			5,819,704
	$	7,108,957	$	1,317,398	$	6,803,093	$	(6,904,863	)	$	8,324,585
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES	$	234,262	$	81,239	$	167,175	$	0		$	482,676
NONCURRENT LIABILITIES
Long-term debt		1,304,039		0		0		0			1,304,039
Deferred income taxes		115,985		0		926,838		0			1,042,823
Other noncurrent liabilities		162,308		16,447		23,929		0			202,684
Total Noncurrent Liabilities		1,582,332		16,447		950,767		0			2,549,546
SHAREHOLDERS’ EQUITY		5,292,363		1,219,712		5,685,151		(6,904,863	)		5,292,363
	$	7,108,957	$	1,317,398	$	6,803,093	$	(6,904,863	)	$	8,324,585

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

Three Months Ended July 31, 2011

	The J.M. Smucker			Subsidiary			Non-Guarantor
	Company (Parent)			Guarantors			Subsidiaries			Eliminations		Consolidated
Net cash provided by (used for) operating activities	$	83,115		$	5,393		$	(146,746	)	$	0	$	(58,238	)
INVESTING ACTIVITIES
Business acquired, net of cash acquired		0			0			(362,846	)		0		(362,846	)
Additions to property, plant, and equipment		(15,952	)		(32,150	)		(19,530	)		0		(67,632	)
Sale and maturity of marketable securities		18,600			0			0			0		18,600
Proceeds from disposal of property, plant, and equipment		9			9			112			0		130
Other — net		2			(1	)		(19	)		0		(18	)
Net cash provided by (used for) investing activities		2,659			(32,142	)		(382,283	)		0		(411,766	)
FINANCING ACTIVITIES
Revolving credit agreement — net		306,700			0			0			0		306,700
Quarterly dividends paid		(50,159	)		0			0			0		(50,159	)
Purchase of treasury shares		(5,385	)		0			0			0		(5,385	)
Proceeds from stock option exercises		242			0			0			0		242
Intercompany		(546,476	)		26,749			519,727			0		0
Other — net		2,534			0			0			0		2,534
Net cash (used for) provided by financing activities		(292,544	)		26,749			519,727			0		253,932
Effect of exchange rate changes		0			0			(1,298	)		0		(1,298	)
Net decrease in cash and cash equivalents		(206,770	)		0			(10,600	)		0		(217,370	)
Cash and cash equivalents at beginning of period		206,845			0			113,000			0		319,845
Cash and cash equivalents at end of period	$	75		$	0		$	102,400		$	0	$	102,475

Three Months Ended July 31, 2010

	The J.M. Smucker			Subsidiary			Non-Guarantor
	Company (Parent)			Guarantors			Subsidiaries			Eliminations		Consolidated
Net cash (used for) provided by operating activities	$	(16,873	)	$	2,977		$	(13,342	)	$	0	$	(27,238	)
INVESTING ACTIVITIES
Additions to property, plant, and equipment		(13,721	)		(2,584	)		(10,641	)		0		(26,946	)
Purchases of marketable securities		(57,037	)		0			0			0		(57,037	)
Proceeds from disposal of property, plant, and equipment		0			276			14			0		290
Other — net		(11	)		36			15			0		40
Net cash used for investing activities		(70,769	)		(2,272	)		(10,612	)		0		(83,653	)
FINANCING ACTIVITIES
Proceeds from long-term debt		400,000			0			0			0		400,000
Quarterly dividends paid		(47,594	)		0			0			0		(47,594	)
Purchase of treasury shares		(5,033	)		0			0			0		(5,033	)
Proceeds from stock option exercises		1,325			0			0			0		1,325
Intercompany		(27,469	)		(705	)		28,174			0		0
Other — net		2,213			0			0			0		2,213
Net cash provided by (used for) financing activities		323,442			(705	)		28,174			0		350,911
Effect of exchange rate changes		0			0			(817	)		0		(817	)
Net increase in cash and cash equivalents		235,800			0			3,403			0		239,203
Cash and cash equivalents at beginning of period		217,730			0			65,840			0		283,570
Cash and cash equivalents at end of period	$	453,530		$	0		$	69,243		$	0	$	522,773