INVESTMENTS

Investments consist of the following:



Equity Investment	% Owned	July 31, 2011		May 1, 2011
		(in millions)
Campofrío Food Group (CFG)	37%	$	447.8	$	445.1
Mexican joint ventures	50%	115.4		110.2
Other	Various	28.6		27.2
Total investments		$	591.8	$	582.5

Equity in income of affiliates consists of the following:



		Three Months Ended
Equity Investment	Segment	July 31, 2011			August 1, 2010
		(in millions)
CFG ⁽¹⁾	International	$	(0.2	)	$	(3.2	)
Mexican joint ventures	International	(3.0		)	(4.9		)
Butterball ⁽²⁾	Other	—			(1.3		)
All other equity method investments	Various	(1.6		)	(1.5		)
Equity in income of affiliates		$	(4.8	)	$	(10.9	)

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⁽¹⁾	CFG prepares its financial statements in accordance with International Financial Reporting Standards. Our share of CFG’s results reflects U.S. GAAP adjustments and thus, there may be differences between the amounts we report for CFG and the amounts reported by CFG.


⁽²⁾	In December 2010 (fiscal 2011), we completed the sale of our interest in Butterball and our related turkey production assets to our joint venture partner.

As of July 31, 2011, we held 37,811,302 shares of CFG common stock. The stock was valued at €6.13 per share (approximately $8.83 per share) on the close of the last day of trading before the end of our first quarter of fiscal 2012. Based on the stock price and foreign exchange rate as of July 31, 2011, the carrying value of our investment in CFG, net of the pre-tax cumulative translation adjustment, exceeded the market value of the underlying securities. We have analyzed our investment in CFG for impairment and have determined that the fair value of our investment exceeded the carrying amount as of July 31, 2011. We estimated the fair value of our investment based on a variety of information including market multiples for comparable businesses, independent third party valuation reports, the market price of the underlying securities and a premium applied for our significant noncontrolling interest. The premium is based on the premise that we are the single largest shareholder of CFG, hold positions on CFG's Board of Directors and have significant influence over the strategic and operational decisions made by CFG. Based on our assessment, no impairment existed as of July 31, 2011.

Subsequent to the end of the first quarter of fiscal 2012, CFG's stock price, like many global equity markets, experienced significant volatility and dropped as low as €5.30 per share during August 2011 (fiscal 2012) and, for the first time in over twelve months, the carrying value of our investment in CFG exceeded the estimated fair value, indicating a potential impairment. However, given the significant volatility experienced in the stock and the overall equity markets, the short duration and limited severity of the decline and the historical trading levels of the stock, we believe these conditions are temporary and no adjustment to the carrying value of our investment has been made or is deemed necessary.