Hormel Foods 2011 Annual Report Download - page 51

4
9
Hormel Foods Corporation
F
air Value Measurements at October 31, 2010
Q
uoted Prices
i
n A
c
tiv
e
S
i
g
nificant Othe
r
Si
g
nificant
M
a
rk
e
t
s
f
or
Obse
rv
ab
l
e
U
n
obse
rv
able
Ident
i
cal Asset
s
I
n
p
uts
I
n
p
uts
(
in thousands
)
T
otal Fair Value
(
Level 1
)
(
Level 2
)
(
Level 3
)
Inv
es
tm
e
nt
s
at Fa
i
r Val
ue
:
C
ash equivalent
s
(
1
)
$
16
,
64
2
$
16
,
64
2
$
–
$
–
Large Capitalization Equity
(
2
)
D
omest
ic
$
2
47,74
8
$
2
15,152
$
3
2,59
6
$
–
F
ore
i
gn
1
8,02
3
1
8,02
3
–
–
T
otal Large Capitalization Equity
$
2
65,77
1
$
233
,17
5
$
3
2,59
6
$
–
S
mall
C
a
p
italization E
q
uity
(
3
)
D
omesti
c
$
1
01,95
3
$
1
01,95
3
$
–
$
–
F
orei
g
n
10
,
206
10
,
206
–
–
T
otal
S
mall
C
a
p
italization E
q
uity
$
1
1
2
,15
9
$
1
1
2
,15
9
$
–
$
–
I
nternat
i
onal Equ
i
ty
(
4
)
Mu
t
ua
l f
u
n
d
$
4
0
,3
0
1
$
–
$
4
0
,3
0
1
$
–
Co
ll
ec
tiv
e
tr
us
t
102,
56
6
–
102,
56
6
–
T
otal Internat
i
onal Equ
i
t
y
$
1
4
2,8
6
7
$
–
$
1
4
2,8
6
7
$
–
P
r
i
vate Equ
i
t
y
(
5
)
D
omest
ic
$
6
,95
1
$
–
$
–
$
6
,95
1
I
nternat
i
onal
2
,
3
7
7
–
–
2
,
3
7
7
Total Pr
i
vate Equ
i
t
y
$
9
,
3
2
8
$
–
$
–
$
9
,
3
2
8
Total E
q
uit
y
$
530,12
5
$
345,334
$
1
75,46
3
$
9
,32
8
Fi
x
ed
In
co
m
e
(
6
)
U
S
government issue
s
$
10
6
,987
$
10
6
,987
$
–
$
–
M
un
i
c
i
pal
i
ssues
1,
9
31
1,
9
31
–
–
C
orporate issues – domestic
12
4
,802
8
7
,
1
81
3
7
,
62
1
–
C
orporate issues – foreig
n
2
1
,8
7
8
2
1
,8
7
8
–
–
To
t
a
l F
i
x
ed
In
co
m
e
$
2
55
,
5
98
$
2
17
,9
7
7
$
3
7
,
62
1
$
–
O
the
r
R
eal Estate - m
i
neral
i
nteres
t
$
3
$
–
$
–
$
3
T
otal Other
$
3
$
–
$
–
$
3
T
otal Investments at Fair Valu
e
$
802,36
8
$
5
79,953
$
2
13,084
$
9
,33
1
The followin
g
is a description of the valuation methodolo
g
ies used for instruments measured at fair value, includin
g
the
g
eneral classification of such instruments pursuant to the valuation
hierarch
y:
(
1
)
C
ash Equivalents: These Level 1 investments consist primarily of money market mutual funds that are hi
g
hly liquid and traded i
n
ac
tiv
e
m
a
rk
e
t
s.
(
2
)
L
ar
g
e
C
apitalization Equity: The Level 1 investments include a mix of predominately U.
S
. common stocks and forei
g
n common st
o
cks which are valued at the closin
g
price reported on
t
he active market in which the individual securities are traded. The Level
2
investment includes a mutual fund consistin
g
of a mix of U.
S
. common stocks that is valued at the publicly
a
vailable net asset value (NAV) of shares held by the pension plans at year end
.
(
3
)
S
mall
C
apitalization Equity: The Level 1 investments include a mix of predominately U.
S
. common stocks and forei
g
n common sto
c
ks, which are valued at the closin
g
price reported on
t
h
e
ac
tiv
e
m
a
rk
e
t in whi
c
h th
e
in
d
ivi
dua
l
secu
riti
es
a
r
e
tr
aded
.
(
4
)
I
nternational Equity: These Level
2
investments include a mix of collective investment funds and mutual funds. The mutual fun
d
s are valued at the publicly available NAV of shares held
b
y the pension plans at year end. The value of the collective investment funds is based on the fair value of the underlyin
g
in
v
es
tm
e
nt
s
a
n
d
th
e
NAV
ca
n
be
ca
l
cu
l
a
t
ed
f
o
r th
ese
f
u
n
ds
.
(
5
)
P
rivate Equity: These Level
3
investments consist of various collective investment funds, which are mana
g
ed by a third party, that invest in a well diversified portfolio of equity invest
-
m
ents from top performin
g
, hi
g
h quality firms that focus on U.
S
. and forei
g
n small to mid markets; and venture capitalists and e
n
trepreneurs with a concentration in areas of innovation.
I
nvestment strate
g
ies include buyouts,
g
rowth capital, build-ups, and distressed; and early sta
g
es of company development main
l
y
in the U.
S
. The fair value of the units for these inves
t
-
m
ents is based on the fair value of the underlyin
g
investments, and the NAV can be calculated for these funds
.
(
6
)
F
ixed Income: The Level 1 investments include a mix of U.
S
.
g
overnment and municipal securities, and domestic and forei
g
n secu
r
ities, which are valued at the closin
g
price reported on
t
he active market in which the individual securities are traded. The Level
2
investments consist primarily of mutual funds invested in lon
g
duration corporate bonds that are valued at the
p
ublicly available NAV of shares held by the pension plans at year end.