Hormel Foods 2013 Annual Report Download - page 44

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42
NOTE D
ACQUISITIONS
On January 31, 2013, the Company acquired the United States
based SKIPPY® peanut butter business from Conopco, Inc. (doing
business as Unilever United States Inc.), of Englewood Cliffs,
N.J. for a purchase price of $665.4 million in cash. This acqui-
sition included the Little Rock, Arkansas manufacturing facility
and all sales worldwide, except sales in China. The purchase
price was funded by the Company with cash on hand generated
from operations and liquidating marketable securities.
The acquisition was accounted for as a business combination
using the acquisition method. The Company estimated the
acquisition date fair values of the assets acquired and liabilities
assumed, using independent appraisals and other analyses,
NOTE C
EARNINGS PER SHARE DATA
The reported net earnings attributable to the Company were
used when computing basic and diluted earnings per share
for all years presented. A reconciliation of the shares used in
the computation is as follows:
(in thousands) 2013 2012 2011
Basic weighted-average
shares outstanding 264,317 263,466 266,394
Dilutive potential
common shares 5,907 5,425 5,521
Diluted weighted-average
shares outstanding 270,224 268,891 271,915
For fiscal years 2013, 2012, and 2011, a total of 0.4 million, 2.2
million, and 0.7 million weighted-average outstanding stock
options, respectively, were not included in the computation of
dilutive potential common shares since their inclusion would
have had an antidilutive effect on earnings per share.
NOTE B
ACCUMULATED OTHER COMPREHENSIVE LOSS
Components of accumulated other comprehensive loss are as follows:
Accumulated
Foreign Deferred Other
Currency Pension & Gain (Loss) Comprehensive
(in thousands) Translation Other Benefits – Hedging Loss
Balance at October 31, 2010 $ 8,849 $ (205,243) $ 20,484 $ (175,910)
Unrecognized gains (losses):
Gross 843 (15,115) 39,480 25,208
Tax effect – 5,534 (14,895) (9,361)
Reclassification into net earnings:
Gross – 20,363 (45,103) (24,740)
Tax effect – (7,722) 17,042 9,320
Net of tax amount 843 3,060 (3,476) 427
Balance at October 30, 2011 $ 9,692 $ (202,183) $ 17,008 $ (175,483)
Unrecognized gains (losses):
Gross 2,723 (248,434) 10,261 (235,450)
Tax effect – 93,580 (3,888) 89,692
Reclassification into net earnings:
Gross – 18,609 (22,319) (3,710)
Tax effect – (7,037) 8,419 1,382
Net of tax amount 2,723 (143,282) (7,527) (148,086)
Balance at October 28, 2012 $ 12,415 $ (345,465) $ 9,481 $ (323,569)
Unrecognized gains (losses):
Gross (3,024) 273,408 (18,329) 252,055
Tax effect – (102,846) 6,898 (95,948)
Reclassification into net earnings:
Gross – 35,327 (5,871) 29,456
Tax effect – (13,425) 2,217 (11,208)
Net of tax amount (3,024) 192,464 (15,085) 174,355
Balance at October 27, 2013 $ 9,391 $ (153,001) $ (5,604) $ (149,214)