DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

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.