HORMEL FOODS CORP /DE/ | 2013 | FY | 3


NOTE G

 

INVESTMENTS 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:

 

 

 

 

 

 

 

October 27,

 

October 28,

 

(in thousands)

 

Segment

 

% Owned

 

2013

 

2012

 

MegaMex Foods, LLC

 

Grocery Products

 

50%

 

$ 203,413

 

$ 205,315

 

Foreign Joint ventures

 

International & Other

 

Various (26–50%)

 

67,196

 

81,222

 

Total

 

 

 

 

 

$ 270,609

 

$ 286,537

 

 

Equity in earnings of affiliates consists of the following:

 

(in thousands)

 

Segment

 

2013

 

2012

 

2011

 

MegaMex Foods, LLC

 

Grocery Products

 

$ 17,261

 

$ 35,762

 

$ 24,532

 

Foreign Joint Ventures

 

International & Other

 

3,252

 

2,929

 

3,423

 

Other

 

Various

 

 

 

(1,198)

 

Total

 

 

 

$ 20,513

 

$ 38,691

 

$ 26,757

 

 

Dividends received from affiliates for the fiscal years ended October 27, 2013, October 28, 2012, and October 30, 2011, were $34.0 million, $37.1 million, and $4.0 million, respectively. The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex, which is being amortized through equity in earnings of affiliates.

 


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