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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Jul. 31, 2011

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

All grain contracts, livestock contracts and foreign exchange contracts are recorded in prepaid expenses and other current assets or accrued expenses and other current liabilities within the consolidated condensed balance sheets, as appropriate. Interest rate contracts are recorded in other liabilities.

The following table presents the fair values of our open derivative financial instruments in the consolidated condensed balance sheets on a gross basis.

		Assets								Liabilities
		July 31, 2011				May 1, 2011				July 31, 2011				May 1, 2011
		(in millions)								(in millions)
Derivatives using the "hedge accounting" method:
Grain contracts		$	17.0			$	46.2			$	4.1			$	4.8
Livestock contracts		2.7				22.9				16.5				29.5
Interest rate contracts		—				—				0.6				2.3
Foreign exchange contracts		0.5				0.2				0.2				—
Total		20.2				69.3				21.4				36.6
Derivatives using the "mark-to-market" method:
Grain contracts		27.3				38.3				2.8				4.7
Livestock contracts		9.6				1.7				14.7				8.0
Energy contracts		0.4				1.0				1.7				0.1
Foreign exchange contracts		0.6				0.3				0.3				1.9
Total		37.9				41.3				19.5				14.7
Total fair value of derivative instruments		$	58.1			$	110.6			$	40.9			$	51.3

Cash Flow Hedging [Member]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

During the first quarter of fiscal 2012, the range of notional volumes associated with open derivative instruments designated in cash flow hedging relationships was as follows:

		Minimum			Maximum			Metric
Commodities:
Corn		26,705,000			39,350,000			Bushels
Soybean meal		223,700			282,700			Tons
Lean hogs		469,720,000			960,360,000			Pounds
Interest rate		200,000,000			200,000,000			U.S. Dollars
Foreign currency (1)		23,496,793			37,795,270			U.S. Dollars

——————————————

⁽¹⁾  Amounts represent the U.S. dollar equivalent of various foreign currency contracts

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following table presents the effects on our consolidated condensed financial statements of pre-tax gains and losses on derivative instruments designated in cash flow hedging relationships for the fiscal periods indicated:

		Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Derivative (Effective Portion)								Gains (Losses) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)								Losses Recognized in Earnings on Derivative (Ineffective Portion)
		Three Months Ended								Three Months Ended								Three Months Ended
		July 31, 2011				August 1, 2010				July 31, 2011				August 1, 2010				July 31, 2011				August 1, 2010
		(in millions)								(in millions)								(in millions)
Commodity contracts:
Grain contracts		$	(14.0	)		$	14.8			$	43.8			$	(4.0	)		$	(0.1	)		$	(0.2	)
Lean hog contracts		8.0				(5.0		)		(1.7		)		(10.5		)		(0.1		)		(0.3		)
Interest rate contracts		—				(0.5		)		(1.8		)		(1.1		)		—				—
Foreign exchange contracts		0.3				(5.6		)		0.2				(1.9		)		—				—
Total		$	(5.7	)		$	3.7			$	40.5			$	(17.5	)		$	(0.2	)		$	(0.5	)

For the fiscal periods presented, foreign exchange contracts were determined to be highly effective. We have excluded from the assessment of effectiveness differences between spot and forward rates, which we have determined to be immaterial. 

Fair Value Hedging [Member]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

During the first quarter of fiscal 2012, the range of notional volumes associated with open derivative instruments designated in fair value hedging relationships was as follows:

		Minimum			Maximum			Metric
Commodities:
Lean hogs		—			221,680,000			Pounds
Corn		3,490,000			5,220,000			Bushels

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following table presents the effects on our consolidated condensed statements of income of gains and losses on derivative instruments designated in fair value hedging relationships and the related hedged items for the fiscal periods indicated:

		Gains Recognized in Earnings on Derivative								Gains (Losses) Recognized in Earnings on Related Hedged Item
		Three Months Ended								Three Months Ended
		July 31, 2011				August 1, 2010				July 31, 2011				August 1, 2010
		(in millions)								(in millions)
Commodity contracts		$	9.7			$	5.0			$	(3.6	)		$	3.9

We recognized gains of $5.9 million and losses of $22.1 million for the three months ended July 31, 2011 and August 1, 2010, respectively, on closed commodity derivative contracts as the underlying cash transactions affected earnings. 

For fair value hedges of inventory, we elect to exclude from the assessment of effectiveness differences between the spot and futures prices. These differences are recorded directly into earnings as they occur. These differences resulted in gains of $5.7 million and $8.7 million for the three months ended July 31, 2011 and August 1, 2010, respectively.

Not Designated as Hedging Instrument [Member]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

During the first quarter of fiscal 2012, the range of notional volumes associated with open derivative instruments using the “mark-to-market” method was as follows:

		Minimum			Maximum			Metric
Commodities:
Lean hogs		31,320,000			334,320,000			Pounds
Corn		8,485,000			17,825,000			Bushels
Soybean meal		1,400			133,500			Tons
Soybeans		250,000			290,000			Bushels
Wheat		—			1,620,000			Bushels
Natural gas		1,830,000			2,400,000			Million BTU
Foreign currency (1)		43,724,684			99,628,898			U.S. Dollars

——————————————

⁽¹⁾  Amounts represent the U.S. dollar equivalent of various foreign currency contracts.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following table presents the amount of gains recognized in the consolidated condensed statements of income on derivative instruments using the “mark-to-market” method by type of derivative contract for the fiscal periods indicated:

		Three Months Ended
		July 31, 2011				August 1, 2010
		(in millions)
Commodity contracts		$	20.8			$	36.2
Foreign exchange contracts		1.3				2.4
Total		$	22.1			$	38.6

The table above reflects gains and losses from both open and closed contracts including, among other things, gains and losses related to contracts designed to hedge price movements that occur entirely within a quarter. The table includes amounts for both realized and unrealized gains and losses. The table is not, therefore, a simple representation of unrealized gains and losses recognized in the income statement during any period presented.

X

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 205G
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Section 50
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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44C
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624163-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 205G
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44C
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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Tabular disclosure of the notional amounts of outstanding derivative positions.

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-SubTopic 10
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-Number
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-Subparagraph (d)
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