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In order to ensure a steady supply of hogs and turkeys and to keep the cost of products stable, the company has entered into contracts with producers for the purchase of hogs and turkeys at formula- based prices over periods of up to 15 years. Under these contracts, the company is committed at October 28, 2000, to purchase hogs and turkeys, assuming current price levels, as follows:
(In Thousands) 2001 $ 869,388 2002 761,953 2003 728,979 2004 716,274 2005 415,937 Later years 1,365,648 Total $4,858,179 |
Estimated purchases under these contracts for fiscal 2000, 1999 and 1998 were $815.9 million, $582.1 million and $514.4 million, respectively.
The company has noncancelable operating lease commitments on facilities and equipment at October 28, 2000, as follows:
(In Thousands) 2001 $ 6,914 2002 7,628 2003 6,883 2004 5,649 2005 5,109 Later years 8,217 Total $40,400 |
The company has commitments to expend approximately $64.1 million to complete construction in progress at various locations at October 28, 2000. The company has also pledged $28.9 million of securities as collateral guaranteeing loans at October 28, 2000.
The company is involved on an ongoing basis in litigation arising in the ordinary course of business. In the opinion of management, the outcome of litigation currently pending will not materially affect the company's results of operations, financial condition or liquidity.
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