XML 51 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Oct. 27, 2013

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

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
		Successor				Predecessor				Successor				Predecessor
		October 27, 2013				April 28, 2013				October 27, 2013				April 28, 2013
		(in millions)								(in millions)
Derivatives using the "hedge accounting" method:
Grain contracts		$	1.1			$	2.5			$	8.3			$	73.0
Livestock contracts		—				4.1				3.4				1.1
Foreign exchange contracts		0.7				0.2				0.1				0.1
Total		1.8				6.8				11.8				74.2
Derivatives using the "mark-to-market" method:
Grain contracts		—				6.2				0.1				13.7
Livestock contracts		1.4				12.4				4.3				0.7
Energy contracts		0.4				3.1				0.3				0.6
Foreign exchange contracts		0.2				0.6				0.5				0.3
Total		2.0				22.3				5.2				15.3
Total fair value of derivative instruments		$	3.8			$	29.1			$	17.0			$	89.5

Cash Flow Hedging

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

During the six months ended October 27, 2013, the range of notional volumes associated with open derivative instruments designated in cash flow hedging relationships was as follows:

		Minimum			Maximum			Metric
Commodities:
Corn		48,440,000			86,625,000			Bushels
Soybean meal		321,414			581,656			Tons
Lean hogs		86,600,000			777,360,000			Pounds
Foreign currency (1)		22,189,407			48,005,327			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 tables present 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)												Gains (Losses) Recognized in Earnings on Derivative (Ineffective Portion)
		Successor				Predecessor								Successor				Predecessor								Successor				Predecessor
		September 27 - October 27, 2013				July 29 - September 26, 2013				Three Months Ended				September 27 - October 27, 2013				July 29 - September 26, 2013				Three Months Ended				September 27 - October 27, 2013				July 29 - September 26, 2013				Three Months Ended
										October 28, 2012												October 28, 2012												October 28, 2012
		(in millions)												(in millions)												(in millions)
Commodity contracts:
Grain contracts		$	(6.8	)		$	7.5			$	(4.4	)		$	(0.1	)		$	(1.4	)		$	18.9			$	(1.6	)		$	(0.5	)		$	0.7
Lean hog contracts		(0.8		)		(24.6		)		(1.4		)		0.2				(3.2		)		25.6				—				(0.8		)		0.2
Foreign exchange contracts		0.7				0.6				1.6				—				(0.2		)		(0.4		)		—				—				—
Total		$	(6.9	)		$	(16.5	)		$	(4.2	)		$	0.1			$	(4.8	)		$	44.1			$	(1.6	)		$	(1.3	)		$	0.9
		Successor				Predecessor								Successor				Predecessor								Successor				Predecessor
		September 27 - October 27, 2013				April 29 - September 26, 2013				Six Months Ended				September 27 - October 27, 2013				April 29 - September 26, 2013				Six Months Ended				September 27 - October 27, 2013				April 29 - September 26, 2013				Six Months Ended
										October 28, 2012												October 28, 2012												October 28, 2012
		(in millions)												(in millions)												(in millions)
Commodity contracts:
Grain contracts		$	(6.8	)		$	3.1			$	129.5			$	(0.1	)		$	23.6			$	21.6			$	(1.6	)		$	1.3			$	3.4
Lean hog contracts		(0.8		)		(29.3		)		(1.1		)		0.2				5.9				57.8				—				(0.8		)		0.3
Foreign exchange contracts		0.7				(0.4		)		(0.2		)		—				(0.3		)		(0.6		)		—				—				—
Total		$	(6.9	)		$	(26.6	)		$	128.2			$	0.1			$	29.2			$	78.8			$	(1.6	)		$	0.5			$	3.7

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

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

During the six months ended October 27, 2013, the range of notional volumes associated with open derivative instruments designated in fair value hedging relationships was as follows:

		Minimum			Maximum			Metric
Commodities:
Corn		—			4,130,000			Bushels

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

The following tables present 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 (Losses) Recognized in Earnings on Derivative												Gains (Losses) Recognized in Earnings on Related Hedged Item
		Successor				Predecessor								Successor				Predecessor
		September 27 - October 27, 2013				July 29 - September 26, 2013				Three Months Ended				September 27 - October 27, 2013				July 29 - September 26, 2013				Three Months Ended
										October 28, 2012												October 28, 2012
		(in millions)												(in millions)
Commodity contracts		$	—			0.1				$	7.7			$	—			$	(0.1	)		$	(9.1	)
		Successor				Predecessor								Successor				Predecessor
		September 27 - October 27, 2013				April 29 - September 26, 2013				Six Months Ended				September 27 - October 27, 2013				April 29 - September 26, 2013				Six Months Ended
										October 28, 2012												October 28, 2012
		(in millions)												(in millions)
Commodity contracts		$	—			$	0.5			$	(18.7	)		$	—			$	(0.5	)		$	11.2

In connection with the Merger, we closed all commodity derivative contracts on September 26, 2013. As a result, we did not recognize gain or losses during the Successor period September 27 - October 27, 2013 on closed commodity derivative contracts. We recognized gains of $2.0 million during the Predecessor period July 29 - September 26, 2013 and $1.1 million for the three months ended October 28, 2012 on closed commodity derivative contracts as the underlying cash transactions affected earnings. We recognized gains of $4.1 million during the Predecessor period April 29 - September 26, 2013, and $4.5 million for the six months ended October 28, 2012 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 losses of $1.2 million for the three months ended October 28, 2012 and losses of $7.5 million for the six months ended October 28, 2012. There were no fair value hedges of inventory during the six months ended October 27, 2013, and therefore no differences between spot and futures prices were recognized during the Successor period ended October 27, 2013 nor during the Predecessor period April 29 - September 26, 2013.

Not Designated as Hedging Instrument

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

During the six months ended October 27, 2013, 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		3,280,000			82,400,000			Pounds
Corn		25,000			10,115,000			Bushels
Soybean meal		—			34,145			Tons
Soybeans		—			1,220,000			Bushels
Wheat		—			750,000			Bushels
Natural gas		8,470,000			10,870,000			Million BTU
Diesel		1,764,000			3,360,000			Gallons
Foreign currency (1)		22,987,556			60,968,251			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 tables present the amount of gains and losses 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:

		Successor				Predecessor
		September 27 - October 27, 2013				July 29 - September 26, 2013				Three Months Ended
										October 28, 2012
		(in millions)
Commodity contracts		$	1.7			$	2.5			$	17.1
Foreign exchange contracts		0.4				0.1				(0.4		)
Total		$	2.1			$	2.6			$	16.7

		Successor				Predecessor
		September 27 - October 27, 2013				April 29 - September 26, 2013				Six Months Ended
										October 28, 2012
		(in millions)
Commodity contracts		$	1.7			$	8.5			$	8.9
Foreign exchange contracts		0.4				(0.2		)		4.2
Total		$	2.1			$	8.3			$	13.1

The tables above reflect 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 tables include amounts for both realized and unrealized gains and losses. The tables are not, therefore, simple representations of unrealized gains and losses recognized in the income statement during any period presented.

X

- Definition

Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4A

-Subparagraph (b)

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4C

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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=7476318&loc=SL5624163-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the notional amounts of outstanding derivative positions.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1A

-Subparagraph (d)

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

+ Details

Name:	us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration