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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended
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Jul. 03, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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 on a gross basis.
|  | Assets |  | Liabilities
|  | July 3, 2016 |  | January 3, 2016 |  | July 3, 2016 |  | January 3, 2016
|  | (in millions) |  | (in millions)
Derivatives using the "hedge accounting" method: |  |  |  |  |  |  |  |
Grain contracts |  | $ | 29.1 |  |  | $ | 1.1 |  |  | $ | 6.2 |  |  | $ | 32.3 |
Livestock contracts |  | 9.2 |  |  | 11.3 |  |  | 24.5 |  |  | — |
Interest rate swaps |  | — |  |  | — |  |  | 0.1 |  |  | 0.2 |
Foreign exchange contracts |  | 0.3 |  |  | — |  |  | — |  |  | 1.2 |
Total |  | 38.6 |  |  | 12.4 |  |  | 30.8 |  |  | 33.7 |
Derivatives using the "mark-to-market" method: |  |  |  |  |  |  |  |  |  |  |  |
Grain contracts |  | 6.1 |  |  | 4.2 |  |  | 3.5 |  |  | 1.0 |
Livestock contracts |  | 1.4 |  |  | 8.3 |  |  | 2.8 |  |  | 0.8 |
Energy contracts |  | 3.7 |  |  | — |  |  | 4.5 |  |  | 15.7 |
Foreign exchange contracts |  | 0.2 |  |  | 0.4 |  |  | 0.5 |  |  | 0.3 |
Total |  | 11.4 |  |  | 12.9 |  |  | 11.3 |  |  | 17.8 |
Total fair value of derivative instruments |  | $ | 50.0 |  |  | $ | 25.3 |  |  | $ | 42.1 |  |  | $ | 51.5 |
Offsetting Assets [Table Text Block] | The following tables reconcile the gross amounts of derivative assets and liabilities to the net amounts presented in our consolidated condensed balance sheets and the related effects of cash collateral under netting arrangements that provide a legal right of offset of assets and liabilities.
|  | July 3, 2016
|  | Gross Amount of Derivative Assets/ Liabilities |  | Netting of Derivative Assets/ Liabilities |  | Net Derivative Assets/Liabilities |  | Cash Collateral |  | Net Amount Presented in the Condensed Consolidated Balance Sheet
|  | (in millions)
Assets: |  |  |  |  |  |  |  |  |  |
Commodities |  | $ | 49.5 |  |  | $ | (40.6 | ) |  | $ | 8.9 |  |  | $ | 41.6 |  |  | $ | 50.5 |
Foreign exchange contracts |  | 0.5 |  |  | (0.5 | ) |  | — |  |  | — |  |  | — |
Total |  | $ | 50.0 |  |  | $ | (41.1 | ) |  | $ | 8.9 |  |  | $ | 41.6 |  |  | $ | 50.5 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Commodities |  | 41.5 |  |  | (40.6 | ) |  | 0.9 |  |  | (0.5 | ) |  | 0.4 |
Interest rate swaps |  | 0.1 |  |  | — |  |  | 0.1 |  |  | — |  |  | 0.1 |
Foreign exchange contracts |  | 0.5 |  |  | (0.5 | ) |  | — |  |  | — |  |  | — |
Total |  | $ | 42.1 |  |  | $ | (41.1 | ) |  | $ | 1.0 |  |  | $ | (0.5 | ) |  | $ | 0.5 |
|  | January 3, 2016
|  | Gross Amount of Derivative Assets/ Liabilities |  | Netting of Derivative Assets/ Liabilities |  | Net Derivative Assets/Liabilities |  | Cash Collateral |  | Net Amount Presented in the Condensed Consolidated Balance Sheet
|  | (in millions)
Assets: |  |  |  |  |  |  |  |  |  |
Commodities |  | $ | 24.9 |  |  | $ | (14.1 | ) |  | $ | 10.8 |  |  | $ | 16.1 |  |  | $ | 26.9 |
Foreign exchange contracts |  | 0.4 |  |  | (0.4 | ) |  | — |  |  | — |  |  | — |
Total |  | $ | 25.3 |  |  | $ | (14.5 | ) |  | $ | 10.8 |  |  | $ | 16.1 |  |  | $ | 26.9 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Commodities |  | 49.8 |  |  | (14.1 | ) |  | 35.7 |  |  | (26.9 | ) |  | 8.8 |
Interest rate swaps |  | 0.2 |  |  | — |  |  | 0.2 |  |  | — |  |  | 0.2 |
Foreign exchange contracts |  | 1.5 |  |  | (0.4 | ) |  | 1.1 |  |  | — |  |  | 1.1 |
Total |  | $ | 51.5 |  |  | $ | (14.5 | ) |  | $ | 37.0 |  |  | $ | (26.9 | ) |  | $ | 10.1 |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | During the six months ended July 3, 2016, the range of notional volumes associated with open derivative instruments designated in cash flow hedging relationships was as follows:
|  | Minimum |  | Maximum |  | Metric
Commodities: |  |  |  |  |  |
Corn |  | 34,660,000 |  |  | 85,585,000 |  |  | Bushels
Soybean meal |  | 315,600 |  |  | 715,300 |  |  | Tons
Lean hogs |  | 150,040,000 |  |  | 1,500,960,000 |  |  | Pounds
Interest rate |  | 17,238,832 |  |  | 18,385,250 |  |  | U.S. Dollars
Foreign currency (1) |  | 19,352,698 |  |  | 42,931,767 |  |  | U.S. Dollars
——————————————
(1) | Amounts represent the U.S. dollar equivalent of various foreign currency contracts.
During the six months ended July 3, 2016, 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 |  | 200,000 |  |  | 223,240,000 |  |  | Pounds
Corn |  | 5,505,000 |  |  | 15,560,000 |  |  | Bushels
Soybean meal |  | 900 |  |  | 50,600 |  |  | Tons
Soybeans |  | 610,000 |  |  | 4,810,000 |  |  | Bushels
Wheat |  | 825,000 |  |  | 5,190,000 |  |  | Bushels
Natural gas |  | 7,790,000 |  |  | 10,720,000 |  |  | Million BTU
Heating oil |  | 840,000 |  |  | 2,100,000 |  |  | Gallons
Live cattle |  | 7,200,000 |  |  | 13,440,000 |  |  | Pounds
Diesel |  | 3,619,000 |  |  | 12,362,000 |  |  | Gallons
Crude oil |  | 18,000 |  |  | 36,000 |  |  | Barrels
Foreign currency (1) |  | 12,576,626 |  |  | 51,399,280 |  |  | U.S. Dollars
——————————————
(1) | Amounts represent the U.S. dollar equivalent of various foreign currency contracts.
During the six months ended July 3, 2016, the range of notional volumes associated with open derivative instruments designated in fair value hedging relationships was as follows:
|  | Minimum |  | Maximum |  | Metric
Commodities: |  |  |  |  |  |
Corn |  | 1,025,000 |  |  | 11,700,000 |  |  | Bushels
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table presents the amount of gains (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 periods indicated:
|  | Three Months Ended |  | Six Months Ended
|  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015
|  | (in millions) |  | (in millions)
Commodity contracts |  | $ | 8.7 |  |  | $ | 17.2 |  |  | $ | 11.9 |  |  | $ | (11.1 | )
Foreign exchange contracts |  | 1.4 |  |  | 0.6 |  |  | 0.3 |  |  | (0.6 | )
Total |  | $ | 10.1 |  |  | $ | 17.8 |  |  | $ | 12.2 |  |  | $ | (11.7 | )
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. 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 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)
|  | Three Months Ended |  | Three Months Ended |  | Three Months Ended
|  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015
|  | (in millions) |  | (in millions) |  | (in millions)
Commodity contracts: |  |  |  |  |  |  |  |  |  |  |  |
Grain contracts |  | $ | 46.9 |  |  | $ | (2.8 | ) |  | $ | (7.1 | ) |  | $ | (20.8 | ) |  | $ | 3.0 |  |  | $ | (0.4 | )
Lean hog contracts |  | (26.9 | ) |  | 13.3 |  |  | 6.5 |  |  | 87.0 |  |  | (0.7 | ) |  | 0.5 |
Interest rate swaps |  | 0.1 |  |  | 0.4 |  |  | — |  |  | — |  |  | — |  |  | — |
Foreign exchange contracts |  | 0.1 |  |  | (0.6 | ) |  | 0.5 |  |  | (1.0 | ) |  | — |  |  | — |
Total |  | $ | 20.2 |  |  | $ | 10.3 |  |  | $ | (0.1 | ) |  | $ | 65.2 |  |  | $ | 2.3 |  |  | $ | 0.1 |
|  | Six Months Ended |  | Six Months Ended |  | Six Months Ended
|  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015
|  | (in millions) |  | (in millions) |  | (in millions)
Commodity contracts: |  |  |  |  |  |  |  |  |  |  |  |
Grain contracts |  | $ | 44.6 |  |  | $ | (33.8 | ) |  | $ | (18.8 | ) |  | $ | (44.6 | ) |  | $ | 2.7 |  |  | $ | (3.8 | )
Lean hog contracts |  | (13.3 | ) |  | 145.6 |  |  | 11.2 |  |  | 170.0 |  |  | (0.1 | ) |  | 2.0 |
Interest rate swaps |  | 0.1 |  |  | 0.3 |  |  | — |  |  | — |  |  | — |  |  | — |
Foreign exchange contracts |  | 1.6 |  |  | (2.3 | ) |  | 0.1 |  |  | (1.6 | ) |  | — |  |  | — |
Total |  | $ | 33.0 |  |  | $ | 109.8 |  |  | $ | (7.5 | ) |  | $ | 123.8 |  |  | $ | 2.6 |  |  | $ | (1.8 | )
For the 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. 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 periods indicated:
|  | Gains Recognized in Earnings on Derivative |  | Losses Recognized in Earnings on Related Hedged Item
|  | Three Months Ended |  | Three Months Ended
|  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015
|  | (in millions) |  | (in millions)
Commodity contracts |  | $ | 4.0 |  |  | $ | 0.2 |  |  | $ | (3.9 | ) |  | $ | (0.2 | )
|  | Six Months Ended |  | Six Months Ended
|  | July 3, 2016 |  | June 28, 2015 |  | July 3, 2016 |  | June 28, 2015
|  | (in millions) |  | (in millions)
Commodity contracts |  | $ | 4.4 |  |  | $ | 2.2 |  |  | $ | (4.3 | ) |  | $ | (2.1 | )
We recognized gains of $0.9 million for the three months ended July 3, 2016 and gains of $2.4 million and $0.9 million for the six months ended July 3, 2016 and June 28, 2015, respectively, on closed commodity derivative contracts as the underlying cash transactions affected earnings.

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