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DERIVATIVES FINANCIAL INSTRUMENTS Derivatives Financial Instruments (Tables)
 8 Months Ended
Dec. 29, 2013
Derivative [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
All derivative contracts are recorded in prepaid expenses and other current assets or accrued expenses and other current liabilities within the consolidated balance sheets, as appropriate.


The following tables present the fair values of our open derivative financial instruments on a gross basis.
 
 
Assets
 
Liabilities
 
 
Successor
 
 
December 29,
2013
 
December 29,
2013
 
 
(in millions)
Derivatives using the "hedge accounting" method:
 
 
 
 
Grain contracts
 
$
5.5

 
$
16.2

Livestock contracts
 
0.7

 
1.1

Foreign exchange contracts
 
0.6

 
—

Total
 
6.8

 
17.3

Derivatives using the "mark-to-market" method:
 
 

 
 

Grain contracts
 
0.6

 
1.1

Livestock contracts
 
2.8

 
9.5

Energy contracts
 
2.9

 
—

Foreign exchange contracts
 
0.6

 
0.2

Total
 
6.9

 
10.8

Total fair value of derivative instruments
 
$
13.7

 
$
28.1

 
 
 
Assets
 
Liabilities
 
 
Predecessor
 
Predecessor
 
 
April 28,
2013
 
April 29,
2012
 
April 28,
2013
 
April 29,
2012
 
 
(in millions)
 
(in millions)
Derivatives using the "hedge accounting" method:
 
 
 
 
 
 
 
 
Grain contracts
 
$
2.5

 
$
35.3

 
$
73.0

 
$
9.6

Livestock contracts
 
4.1

 
22.9

 
1.1

 
—

Foreign exchange contracts
 
0.2

 
1.9

 
0.1

 
—

Total
 
6.8

 
60.1

 
74.2

 
9.6

Derivatives using the "mark-to-market" method:
 
 

 
 
 
 

 
 
Grain contracts
 
6.2

 
9.1

 
13.7

 
1.0

Livestock contracts
 
12.4

 
7.4

 
0.7

 
7.2

Energy contracts
 
3.1

 
—

 
0.6

 
12.2

Foreign exchange contracts
 
0.6

 
2.4

 
0.3

 
0.7

Total
 
22.3

 
18.9

 
15.3

 
21.1

Total fair value of derivative instruments
 
$
29.1

 
$
79.0

 
$
89.5

 
$
30.7

 
Schedule of Derivative Instruments [Table Text Block]
The following tables reconcile the gross amounts of derivative assets and liabilities to the net amounts presented in our consolidated balance sheets, and the related effects of cash collateral under netting arrangements that provide a legal right of offset of assets and liabilities.
 
 
December 29, 2013
 
 
Gross Amount of Derivative Assets (Liabilities)
 
Netting of Derivative Assets (Liabilities)
 
Net Amount Presented in the Consolidated Balance Sheet
 
Cash Collateral Received (Pledged) (1)
 
Net Amount
 
 
(in millions)
Assets:
 
 
 
 
 
 
 
 
 
 
Commodities
 
$
12.5

 
$
(7.4
)
 
$
5.1

 
$
—

 
$
5.1

Foreign exchange contracts
 
1.2

 
—

 
1.2

 
—

 
1.2

Total
 
$
13.7

 
$
(7.4
)
 
$
6.3

 
$
—

 
$
6.3

Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodities
 
$
(27.9
)
 
$
7.4

 
$
(20.5
)
 
$
(15.6
)
 
$
(4.9
)
Foreign exchange contracts
 
(0.2
)
 
—

 
(0.2
)
 
—

 
(0.2
)
Total
 
$
(28.1
)
 
$
7.4

 
$
(20.7
)
 
$
(15.6
)
 
$
(5.1
)
 
 
April 28, 2013
 
 
Gross Amount of Derivative Assets (Liabilities)
 
Netting of Derivative Assets (Liabilities)
 
Net Amount Presented in the Consolidated Balance Sheet
 
Cash Collateral Received (Pledged) (1)
 
Net Amount
 
 
(in millions)
Assets:
 
 
 
 
 
 
 
 
 
 
Commodities
 
$
28.3

 
$
(21.5
)
 
$
6.8

 
$
3.6

 
$
3.2

Foreign exchange contracts
 
0.8

 
—

 
0.8

 
—

 
0.8

Total
 
$
29.1

 
$
(21.5
)
 
$
7.6

 
$
3.6

 
$
4.0

Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodities
 
$
(89.1
)
 
$
21.5

 
$
(67.6
)
 
$
(53.4
)
 
$
(14.2
)
Foreign exchange contracts
 
(0.4
)
 
—

 
(0.4
)
 
—

 
(0.4
)
Total
 
$
(89.5
)
 
$
21.5

 
$
(68.0
)
 
$
(53.4
)
 
$
(14.6
)
 
 
April 29, 2012
 
 
Gross Amount of Derivative Assets (Liabilities)
 
Netting of Derivative Assets (Liabilities)
 
Net Amount Presented in the Consolidated Balance Sheet
 
Cash Collateral Received (Pledged) (1)
 
Net Amount
 
 
(in millions)
Assets:
 
 
 
 
 
 
 
 
 
 
Commodities
 
$
74.7

 
$
(21.4
)
 
$
53.3

 
$
14.2

 
$
39.1

Foreign exchange contracts
 
4.3

 
—

 
4.3

 
—

 
4.3

Total
 
$
79.0

 
$
(21.4
)
 
$
57.6

 
$
14.2

 
$
43.4

Liabilities:
 
 
 
 
 
 
 
 
 
 
Commodities
 
$
(30.0
)
 
$
21.4

 
$
(8.6
)
 
$
(4.4
)
 
$
(4.2
)
Foreign exchange contracts
 
(0.7
)
 
—

 
(0.7
)
 
—

 
(0.7
)
Total
 
$
(30.7
)
 
$
21.4

 
$
(9.3
)
 
$
(4.4
)
 
$
(4.9
)
——————————————
(1)
Cash collateral received represents the cash received from brokers and is included in accrued expenses and other current liabilities on the consolidated balance sheets. Cash collateral pledged represents the cash on deposit with brokers and is included in prepaid expenses and other current assets on the consolidated balance sheets. Cash on deposit is the initial margin deposited with the broker plus the cash margin to cover gains and losses on our open positions. The cash collateral presented in the table is limited to amounts available to offset our open net derivative positions under master netting arrangements, and therefore does not reflect the Company's total amount received or pledged.
Cash Flow Hedging [Member]
  
Derivative [Line Items]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
During April 29 - December 29, 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
 
42,575,000

 
86,625,000

 
 Bushels
Soybean meal
 
321,414

 
581,656

 
 Tons
Lean Hogs
 
81,600,000

 
777,360,000

 
 Pounds
Foreign currency (1)
 
14,401,942

 
48,301,575

 
 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 financial statements of pre-tax gains and losses on derivative instruments designated in cash flow hedging relationships for the periods indicated:
 
 
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative (Effective Portion)
 
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings (Effective Portion)
 
Gain (Loss) Recognized in Earnings on Derivative (Ineffective Portion)
 
 
Successor
 
Predecessor
 
Successor
 
Predecessor
 
Successor
 
Predecessor
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
 
(in millions)
(in millions)
(in millions)
Commodity contracts:
 
 
 
 
 
 
 
 
 
 
 
 
Grain contracts
 
$
(8.9
)
 
$
3.1

 
$
(0.9
)
 
$
23.6

 
$
(3.7
)
 
$
1.3

Lean hog contracts
 
3.1

 
(29.3
)
 
3.0

 
5.9

 
—

 
(0.8
)
Foreign exchange contracts
 
3.5

 
(0.4
)
 
0.3

 
(0.3
)
 
—

 
—

Total
 
$
(2.3
)
 
$
(26.6
)
 
$
2.4

 
$
29.2

 
$
(3.7
)
 
$
0.5

 
 
Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivative (Effective Portion)
 
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Earnings (Effective Portion)
 
Gain (Loss) Recognized in Earnings on Derivative (Ineffective Portion)
 
 
Predecessor
 
Predecessor
 
Predecessor
 
 
Fiscal Year Ended
 
Fiscal Year Ended
 
Fiscal Year Ended
 
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
 
(in millions)
 
(in millions)
 
(in millions)
Commodity contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Grain contracts
 
$
39.1

 
$
5.5

 
$
232.9

 
$
108.4

 
$
75.1

 
$
80.7

 
$
—

 
$
(0.2
)
 
$
1.9

Lean hog contracts
 
13.6

 
102.8

 
(82.8
)
 
54.9

 
32.3

 
(44.5
)
 
0.4

 
(0.5
)
 
(1.0
)
Interest rate contracts
 
—

 
—

 
(1.2
)
 
—

 
(2.4
)
 
(7.0
)
 
—

 
—

 
—

Foreign exchange contracts
 
0.4

 
(2.5
)
 
(4.1
)
 
2.1

 
(4.1
)
 
(2.6
)
 
—

 
—

 
—

Total
 
$
53.1

 
$
105.8

 
$
144.8

 
$
165.4

 
$
100.9

 
$
26.6

 
$
0.4

 
$
(0.7
)
 
$
0.9

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.
Fair Value Hedging [Member]
  
Derivative [Line Items]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
During April 29 - December 29, 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
 
—

 
6,230,000

 
 Bushels
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]
The following tables present the effects on our consolidated 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:
 
 
Gain (Loss) Recognized in Earnings on Derivative
 
 
Successor
 
Predecessor
 
 
 
 
 
 
Fiscal Year Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
 
(in millions)
Commodity contracts (1)
 
$
—

 
$
0.5

 
$
(12.8
)
 
$
21.9

 
$
(4.2
)
——————————————
(1)
Includes losses of $7.5 million in fiscal year ended April 28, 2013 and gains of $5.1 million and $0.2 million in fiscal year ended April 29, 2012 and fiscal year ended May 1, 2011, respectively, representing differences between the spot and futures prices for fair value hedges of hog inventory, which are recorded directly into earnings as they occur. There were no fair value hedges of hog inventory during the Successor Period nor during the Predecessor Period and, therefore, no differences between spot and futures prices were recognized during the Successor Period nor during the Predecessor Period.
 
 
Gain (Loss) Recognized in Earnings on Related Hedged Item
 
 
Successor
 
Predecessor
 
 
 
 
 
 
Fiscal Year Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
 
(in millions)
Commodity contracts
 
$
0.1

 
$
(0.5
)
 
$
5.0

 
$
(16.7
)
 
$
5.4

 
We recognized gains of $4.1 million in the Predecessor Period, losses of $2.5 million in fiscal year ended April 28, 2013, gains of $6.0 million in fiscal year ended April 29, 2012 and losses of $24.9 million in fiscal year ended May 1, 2011, respectively, on closed commodity derivative contracts as the underlying cash transactions affected earnings.
Not Designated as Hedging Instrument [Member]
  
Derivative [Line Items]  
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]
During April 29 - December 29, 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
 
1,560,000

 
403,840,000

 
Pounds
Corn
 
25,000

 
10,115,000

 
Bushels
Soybean meal
 
—

 
34,145

 
Tons
Soybeans
 
—

 
1,820,000

 
Bushels
Wheat
 
—

 
750,000

 
Bushels
Natural gas
 
8,470,000

 
12,380,000

 
Million BTU
Diesel
 
1,260,000

 
3,360,000

 
Gallons
Foreign currency (1)
 
6,650,552

 
62,676,842

 
 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 (losses) recognized in the consolidated statements of income on derivative instruments using the “mark-to-market” method by type of derivative contract for the periods indicated:
 
 
Successor
 
Predecessor
 
 
 
 
 
 
Fiscal Year Ended
 
 
September 27 - December 29, 2013
 
April 29 - September 26, 2013
 
April 28, 2013
 
April 29, 2012
 
May 1, 2011
 
 
(in millions)
Commodity contracts (cost of sales)
 
$
3.1

 
$
0.6

 
$
12.9

 
$
6.4

 
$
63.4

Commodity contracts (sales)
 
(9.0
)
 
7.9

 
29.7

 
—

 
—

Foreign exchange contracts
 
1.2

 
(0.2
)
 
3.7

 
7.7

 
(9.0
)
Total
 
$
(4.7
)
 
$
8.3

 
$
46.3

 
$
14.1

 
$
54.4

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 the period presented. 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.