RELATED PARTY TRANSACTIONS

12 Months Ended

May 01, 2011

Notes to Consolidated Financial Statements [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 16:    RELATED PARTY TRANSACTIONS

The following table presents amounts owed from and to related parties as of May 1, 2011 and May 2, 2010: 

	May 1, 2011		May 2, 2010
	(in millions)
Current receivables from related parties	$	11.3	$	19.2
Long-term receivables from related parties	2.8		17.4
Total receivables from related parties	$	14.1	$	36.6
Current payables to related parties	$	10.9	$	13.9
Long-term payables to related parties	—		—
Total payables to related parties	$	10.9	$	13.9

Wendell Murphy, a director of ours, is an owner of Murfam Enterprises, LLC (Murfam), DM Farms, LLC (DM Farms) and Murphy Milling Company (Murphy Milling). Murfam and DM Farms produce hogs under contract to us. Murfam and Murphy Milling produce and sell feed ingredients to us. In January 2011 (fiscal 2011), Wendell Murphy's interest in DM Farms was sold to a member of his immediate family. In fiscal 2011, 2010 and 2009, we paid $46.8 million, $30.6 million and $26.2 million, respectively, to these entities for the production of hogs and feed ingredients. 

Wendell Murphy also has immediate family members who hold ownership interests in Arrowhead Farms, Inc., Crusader Farms, LLC, Enviro-Tech Farms, Inc., Golden Farms, Inc., Lisbon 1 Farm, Inc., Murphy-Honour Farms, Inc., PSM Associates LLC, Pure Country Farms, LLC, Stantonsburg Farm, Inc., Triumph Associates LLC and Webber Farms, Inc. A vice president of our Hog Production segment also holds an ownership interest in Lisbon 1 Farm, Inc. These farms either produce and sell hogs to us or produce and sell feed ingredients to us. In fiscal 2011, 2010 and 2009, we paid $17.2 million, $14.3 million and $20.6 million, respectively, to these entities for hogs and feed ingredients. 

The chief executive officer and a vice president of our Hog Production segment hold ownership interests in JCT LLC (JCT). JCT owns certain farms that produce hogs under contract with the Hog Production segment. In fiscal 2011, 2010 and 2009, we paid $7.8 million, $8.0 million and $7.3 million, respectively, to JCT for the production of hogs. In fiscal 2011, 2010 and 2009, we received $3.3 million, $3.1 million and $3.2 million, respectively, from JCT for reimbursement of associated farm and other support costs. 

Two vice presidents of our Hog Production segment have ownership interests in Sea Coast, LLC. One of these vice presidents is the sole owner of Advantage Farms, LLC and the other is a partial owner of Texas Hogs, LLC. Another vice president of our Hog Production segment is the sole owner of Old Oak Farms, LLC. These companies produce and raise hogs for us under contractual arrangements that are consistent with third party grower contracts. In fiscal 2011, 2010 and 2009, we paid service fees of $2.2 million, $0.9 million and $0.9 million, respectively, to these companies. In fiscal 2011, 2010 and 2009, we received $0.5 million, $0.5 million and $0.2 million, respectively, from these companies for reimbursement of associated farm and other support costs. 

As described in Note 3—Impairment and Disposal of Long-lived Assets, immediately preceding the closing of the JBS transaction we acquired CGC’s 50 percent investment in Five Rivers for 2,166,667 shares of our common stock valued at $27.87 per share and $8.7 million for working capital adjustments. Based on a Schedule 13D/A filed on June 16, 2010, CGC is now a beneficial owner of approximately 7.9% of our common stock. Paul J. Fribourg, a former member of our board of directors, is Chairman, President and Chief Executive Officer of CGC. Michael Zimmerman, a former advisory director of the Company, is Executive Vice President and Chief Financial Officer of CGC. 

We believe that the terms of the foregoing arrangements were no less favorable to us than if entered into with unaffiliated companies.