HORMEL FOODS CORP /DE/

Regulatory Filings • Apr 20, 2017

11-K 1 a17-11410_411k.htm 11-K

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*UNITED STATES*

*SECURITIES AND EXCHANGE COMMISSION*

*Washington, D. C. 20549*

*FORM 11-K*

*[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934*

For the fiscal year ended October 30, 2016

*OR*

*[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934*

For the transition period from _ to _

*Commission file number 1-2402*

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

*Capital Accumulation Plan*

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Hormel Foods Corporation 1 Hormel Place Austin, MN 55912 507-437-5611

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Capital Accumulation Plan

Audited Financial Statements and Supplemental Schedule

Years Ended October 30, 2016 and October 25, 2015

*Contents*

Report of Independent Registered Public Accounting Firm	1
Audited Financial Statements
Statements of Net Assets Available for Benefits	2
Statements of Changes in Net Assets Available for Benefits	3
Notes to the Financial Statements	4
Supplemental Schedule
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)	13
Signatures	14
Exhibit 23
Consent of Independent Registered Public Accounting Firm	16

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Report of Independent Registered Public Accounting Firm

The Hormel Foods Corporation Employee Benefits Committee

Capital Accumulation Plan

We have audited the accompanying statements of net assets available for benefits of the Capital Accumulation Plan (the Plan) as of October 30, 2016 and October 25, 2015, and the related statement of changes in net assets available for benefit for the year ended October 30, 2016. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at October 30, 2016 and October 25, 2015, and the changes in its net assets available for benefits for the year ended October 30, 2016, in conformity with U.S. generally accepted accounting principles.

The accompanying supplemental schedule of assets (held at end of year) as of October 30, 2016, have been subjected to audit procedures performed in conjunction with the audit of the Capital Accumulation Plan’s financial statements. The information in the supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the information, we evaluated whether such information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ Ernst & Young LLP

Minneapolis, Minnesota

April 20, 2017

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Capital Accumulation Plan

Statements of Net Assets Available for Benefits

	October 30,	October 25,
	2016	2015
Assets
Investments:
Investments at fair value	$ 54,772,220	$ 51,739,190
Investments at contract value	20,013,801	18,159,059
Total investments	74,786,021	69,898,249
Receivables:
Contributions from Hormel Foods Corporation	56,716	54,715
Contributions from participants	79,981	76,789
Promissory notes from participants	6,199,620	5,896,498
Interest and dividend income	35,227	-
Total receivables	6,371,544	6,028,002
Net assets available for benefits	$ 81,157,565	$ 75,926,251

See accompanying notes to the financial statements.

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Capital Accumulation Plan

Statements of Changes in Net Assets Available for Benefits

	Year Ended October 30,	Year Ended October 25,
	2016	2015
Additions:
Contributions from Hormel Foods Corporation	$ 3,111,350	$ 3,012,814
Contributions from participants	4,385,650	4,200,375
Employee rollover	118,119	668,149
Interest and dividend income	1,032,645	982,343
Interest income – promissory notes receivable	326,315	292,354
Total additions	8,974,079	9,156,035
Deductions:
Distributions	5,341,252	5,017,456
Administrative expenses	104,614	93,266
Total deductions	5,445,866	5,110,722
Net realized and unrealized appreciation in fair value of investments	1,703,101	2,385,852
Net additions	5,231,314	6,431,165
Net assets available for benefits at beginning of year	75,926,251	69,495,086
Net assets available for benefits at end of year	$ 81,157,565	$ 75,926,251

See accompanying notes to the financial statements.

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Capital Accumulation Plan

Notes to the Financial Statements

October 30, 2016

*1. Description of the Plan*

The following description of the Capital Accumulation Plan (the Plan) provides only general information. Participants should refer to the plan document or summary plan description for a more complete description of the Plan’s provisions.

*General* – The Plan, sponsored by Rochelle Foods, LLC, is a defined contribution plan covering certain employees of Rochelle Foods, LLC; Creative Contract Packaging, LLC; Osceola Food, LLC; Burke Marketing Corporation; Provena Foods Inc.; Hormel Health Labs, LLC; Lloyd’s Barbeque Company, LLC; Progressive Processing, LLC; Saag’s Products, LLC; Skippy Foods, LLC; and CytoSport, Inc. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).

During the plan year ended October 30, 2016, the following amendments were made to the Plan’s participating employers:

· Effective May 9, 2016, the closing date of the divestiture, Diamond Crystal Brands, Inc. ceased being a participating employer in the Plan. Participants employed by Diamond Crystal Brands, Inc. as of the closing date of the sale were fully vested in the participant’s account under the Plan.

· Effective April 22, 2016, Mexican Accent, LLC ceased being a participating employer in the Plan due to the closure of the facility.

Subsequent to the plan year ended October 30, 2016, the following amendments were made to the Plan’s participating employers:

· Effective October 31, 2016, CytoSport, Inc. ceased being a participating employer in the Plan. CytoSport, Inc. no longer employed non-exempt plant employees and all non-exempt office employees became eligible to participate in the Hormel Foods Corporation Tax Deferred Investment Plan A and Joint Earnings Profit Sharing Trust.

· Effective December 26, 2016, Mountain Prairie, LLC became a participating employer in the Plan. Recognized employees of Mountain Prairie, LLC who were eligible to participate in the Clougherty Packing, LLC 401(k) Plan immediately prior to December 26, 2016 were eligible to participate in the plan on December 26, 2016. Employees at the Mountain Prairie location of Champ, LLC shall receive credit for all hours of service with Champ, LLC and its predecessors for purposes of determining eligibility and vesting service.

· Effective January 2, 2017, the closing date of the divestiture, Saag’s Products, LLC ceased being a participating employer in the Plan. Participant’s employed by Saag’s Products, LLC as of the closing date of the sale were fully vested in the participant’s account under the plan.

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*Eligibility* – Employees generally become participants in the Plan upon completing six months and 500 hours of eligibility service.

*Contributions* – Employees who elect to contribute to the Plan can authorize a deduction of 1% to 50% of their compensation, subject to Internal Revenue Service (IRS) limitations. Certain eligible employees who have not enrolled shall be deemed to have automatically elected to contribute 2% to the Plan through payroll deductions. Participants automatically enrolled will have their contribution percentage increased by 1% each year up to a maximum of either 4% or 6% of eligible compensation. Participants receive advance notice of their right to elect out of both of these automatic plan features and are permitted to stop or change either feature at any time.

The employer provides matching contributions and fixed incentive contributions. These contributions vary according to employee classification and employer.

*Participant Accounts* – Individual accounts are maintained for each plan participant. Each participant’s account is credited with the participant’s contributions, the employer’s contributions, and an allocation of the earnings and losses for the participant’s selected investment funds. The participant’s account is charged with an allocation of administrative expenses if the employer does not pay those expenses from its own assets. Allocations are based on account balances. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

*Investments* – Contributions to the Plan are invested in one or more investment funds at the option of the participant. The Plan contains a diversified selection of funds intended to satisfy Section 404(c) of ERISA. Participants may also invest in self-directed brokerage accounts.

*Vesting* – Participant contributions are fully vested immediately. Participants become 100% vested after five years of vesting service (20% per year) in the employer fixed incentive and employer matching contributions.

*Payment of Benefits* – Benefits are payable upon termination of service due to death, disability, termination, or retirement. Participants may elect to receive the vested interest of their accounts in the form of a lump sum, annuity, partial payments, or installments. Complete details of payment provisions are described in a Summary Plan Description, available from the Sponsor.

*Forfeitures and Unallocated Assets* – Forfeited balances of terminated participants’ non-vested accounts are used to reduce future employer contributions or plan administrative expenses. Forfeitures used to reduce employer contributions and plan administrative expenses for the years ended October 30, 2016 and October 25, 2015, totaled $116,339 and $99,477, respectively. Forfeited accounts and unallocated assets (e.g. loan repayments, rollovers) as of October 30, 2016 and October 25, 2015 were $3,631 and $11,352, respectively.

*Notes Receivable from Participants – Participants may borrow from their accounts a minimum of $500 up to a maximum of the lesser of $50,000 or 50% of their vested account balances. Loan terms range from one year to five years or up to 15 years for the purchase of a primary residence. The interest rate is 2% over the prime rate of interest published in The Wall Street Journal* on the

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date the loan is granted or, if the loan is for a primary residence, on the date the loan is requested. The loans are secured by the balance in a participant’s account. Participants are required to make repayments of principal and interest through payroll deductions. If a participant ceases to make loan repayments and the plan administrator deems the participant loan to be a distribution, the participant loan balance is reduced and a benefit payment is recorded.

*Plan Termination –* The employer may, at its sole discretion, discontinue contributions or terminate the Plan at any time, without the consent of any participant or beneficiary subject to restrictions set by a collective bargaining agreement and subject to the provisions of ERISA. Upon the Plan’s termination, all amounts credited to participants would become fully vested, and assets of the Plan would be distributed to participants based on amounts previously credited to their respective accounts.

*2. Significant Accounting Policies*

*Basis of Accounting* – The accounting records of the Plan are maintained on the accrual basis.

*Investment Valuation and Income Recognition* – Investments held by the Plan are stated at fair value with the exception of fully benefit-responsive investment contracts. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Contract value reflects the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan and is the relevant measure for the portion of assets attributable to fully benefit-responsive investment contracts. See Note 3 – Fair Value Measurements for further discussion of investment valuation.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

*Payment of Benefits* – Benefit payments to participants are recorded upon distribution. There were no distributions payable to participants as of October 30, 2016 or October 25, 2015.

*Notes Receivable from Participants –* Promissory notes receivable from participants are valued at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. No allowance for credit losses has been recorded as of October 30, 2016 or October 25, 2015.

*Administrative Expenses* – All costs and expenses of administering the Plan are paid by the Plan unless paid by the Sponsor.

*Use of Estimates* – The preparation of financial statements in conformity with accounting principles generally accepted in the United States (US GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

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*Risks and Uncertainties* – The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market volatility, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities could occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

*Recent Accounting Pronouncements – In May 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),* which removes the requirement to present investments for which the practical expedient is used to measure fair value at net asset value (NAV) within the fair value hierarchy table. Instead, an entity would be required to include those investments as a reconciling item so that the total fair value amount of investments in the disclosure is consistent with the fair value investment balance on the statement of net assets available for benefits. The Plan elected to early adopt ASU 2015-07 as of October 25, 2015. The adoption has been reflected in Note 3 – Fair Value Measurements of the financial statements.

In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ASU 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contract, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient, which simplifies the required disclosures related to employee benefit plans. Part I eliminates the requirement to measure and disclose the fair value of fully benefit-responsive contracts, including common collective trust assets. Contract value is the only required measure for fully benefit-responsive investment contracts. Part II eliminates the requirement to disclose individual investments which comprise 5% or more of total net assets available for benefits, as well as the net appreciation or depreciation of fair values by type. Part II also requires plans to continue to disaggregate investments that are measured using fair value by general type; however, plans are no longer required to also disaggregate investments by nature, characteristics, and risks. Furthermore, the disclosure of information about fair value measurements shall be provided by general type of plan asset. Part III allows plans to measure investments using values from the end of the calendar month closest to the plan’s fiscal year end. The Plan elected to early adopt ASU 2015-12 Parts I and II as of October 25, 2015. The Plan is not adopting the provisions of ASU 2015-12 Part III.

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*3. Fair Value Measurements*

Accounting guidance establishes a framework for measuring fair value. That framework classifies assets and liabilities measured at fair value into one of three levels based on the lowest level of input significant to the valuation. The three levels are defined as follows:

· Level 1: Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

· Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.

· Level 3: Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.

The following is a description of the valuation methodologies used for instruments held by the Plan measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

*Non-Pooled Separate Account*

The non-pooled separate account consists of common stock of the Company, which is valued at the last reported sales price on the last business day of the year, and a portion of uninvested cash, which is reported at carrying value as maturities are less than three months. This non-pooled separate account is deemed to be a Level 1 investment. The Company has implemented a dividend pass through election for its participants.

Participants are authorized to invest up to 100% of the fair value of their net assets available for benefits in this fund. Each participant in this fund is entitled to exercise voting rights attributable to the shares allocated to their account and is notified by the Company prior to the time that such rights may be exercised. The trustee is not permitted to vote any allocated shares for which instructions have not been given by a participant. The trustee votes any unallocated shares in the same proportion as those shares that were allocated, unless the Committee directs the trustee otherwise. Participants have the same voting rights in the event of a tender or exchange offer.

Effective January 1, 2017, State Street Global Advisors was appointed as the independent fiduciary to oversee the Hormel Foods Corporation Stock Fund.

This fund is approximately 12% and 10% of the total investments in the Plan at October 30, 2016 and October 25, 2015, respectively.

*Self-Directed Brokerage Assets*

The self-directed brokerage assets consist of common stock and mutual funds, which are valued at the last reported sales price on the last business day of the year, and uninvested cash, which is recorded at carrying value as maturities are less than three months. These assets are deemed to be a Level 1 investment.

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*Separate Trust Accounts – Mutual Funds*

The mutual funds are held in separate investment accounts, which are valued using the NAV provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, which include a mix of U.S. and international equities, fixed income investments, and cash. There are no restrictions on redemptions and no unfunded commitments.

· The U.S. equities investments include a mix of predominately U.S. common stocks, bonds, and cash.

· The international equities investment includes a mix of predominately foreign common stocks and cash.

· The fixed income investment includes a mix of domestic and foreign securities, including corporate obligations, government securities, mortgage-backed and other asset-backed securities, preferred stocks, and cash.

*Separate Trust Accounts – Collective Trust Funds*

The collective trust funds are held in separate investment accounts, which are valued using the NAV provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, which include a mix of U.S. and international equities, fixed income investments, and cash. There are no restrictions on redemptions and no unfunded commitments.

· The LifePath funds are target retirement date funds and include investments in highly diversified funds designed to remain appropriate for investors in terms of risk through a variety of life circumstances. These funds contain a mix of domestic and foreign equities, fixed income investments, and cash.

· The U.S. equities funds include a mix of predominately U.S. common stocks, bonds, and cash.

· The international equities fund includes a mix of predominately foreign common stocks and cash.

· The fixed income fund includes a mix of domestic and foreign securities, including corporate obligations, government securities, mortgage-backed and other asset-backed securities, domestic and foreign common stocks, and cash.

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The investments of the Plan that are measured at fair value on a recurring basis as of October 30, 2016 and October 25, 2015, and their level within the fair value hierarchy, are as follows:

	Fair Value Measurements at October 30, 2016 — Total Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investments at fair value:
Non-pooled separate account:
Hormel Foods Corporation Stock Fund	$ 9,143,941	$ 9,143,941	$ –	$ –
Self-directed brokerage accounts	71,665	71,665	–	–
Total investments in the fair value hierarchy	9,215,606	$ 9,215,606	$ –	$ –
Investments measured at net asset value:
Separate trust accounts:
Mutual funds	7,516,339
Collective trusts	38,040,275
Total separate trust accounts	45,556,614
Total investments at fair value	$ 54,772,220
	Fair Value Measurements at October 25, 2015
	Total Fair Value	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investments at fair value:
Non-pooled separate account:
Hormel Foods Corporation Stock Fund	$ 6,707,510	$ 6,707,510	$ –	$ –
Self-directed brokerage accounts	18,222	18,222	–	–
Total investments in the fair value hierarchy	6,725,732	$ 6,725,732	$ –	$ –
Investments measured at net asset value:
Separate trust accounts:
Mutual funds	7,789,998
Collective trusts	37,223,460
Total separate trust accounts	45,013,458
Total investments at fair value	$ 51,739,190

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*4. Fully Benefit-Responsive Investment Contract*

The General Investment Account is a fully benefit-responsive investment and is reported at contract value in the statements of net assets available for benefits. The statements of changes in net assets available for benefits are also prepared on a contract value basis. Benefit responsiveness is defined as the extent to which a contract’s terms and the Plan permit or require participant-initiated withdrawals at contract value. Contract value is the relevant measure for fully benefit-responsive investment contracts because this is the amount received by participants if they were to initiate permitted transactions under the terms of the Plan. Contract value represents contributions made under each contract, plus earnings, less participant withdrawals, and administrative expenses.

The fully benefit-responsive investment contract with Massachusetts Mutual Life Insurance Company (MassMutual) is a general account evergreen group annuity contract. MassMutual maintains the contributions in a general account. Specific securities within the general account are not attributed to the investment contract with the Plan. The Plan owns a series of guarantees that are embedded in the insurance contract. The contractual guarantees are backed up by the full faith and credit of MassMutual, the contract issuer. The account is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. MassMutual is contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Plan. There are no reserves against contract value for credit risk of the contract issuer or otherwise. The crediting interest rate is based on a formula agreed upon with the issuer and includes such factors as the investment-year method experience of the underlying contract or pool, projected levels of cash flows within the current interest rate environment, and the projected maturity of the underlying investments. Such interest rates are reviewed on a semiannual basis for resetting.

The investment option for the General Investment Account is a Guaranteed Interest Account, provided through a group annuity contract. This contract does not allow the insurance company to terminate the agreement prior to a breach of the contract terms by the investor. The Plan may terminate the contract on the contract anniversary date with 90 days prior notice.

Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (i) amendments to the plan documents (including complete or partial plan termination or merger with another plan); (ii) changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions; (iii) bankruptcy of the Sponsor or other Sponsor event (e.g., divestures or spin-offs of a subsidiary) that causes a significant withdrawal from the Plan; or (iv) the failure of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. The plan administrator does not believe that the occurrence of any such event, which would limit the Plan’s ability to transact at contract value with participants, is probable.

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*5. Income Tax Status*

The Plan has received a determination letter from the IRS dated December 5, 2012, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and therefore, the related trust is exempt from taxation. Subsequent to this determination by the IRS, the Plan was amended and restated. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualified status. The plan administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and therefore, believes the Plan, as amended and restated, is qualified and the related trust is tax exempt.

US GAAP requires plan management to evaluate uncertain tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan and has concluded that as of October 30, 2016, there are no uncertain positions taken or expected to be taken. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The plan administrator believes the Plan is no longer subject to income tax examinations for years prior to the plan year ended October 27, 2013.

*6. Related Parties*

The Plan maintains the following investments that qualify as party-in-interest transactions:

· collective trust funds managed by State Street Global Markets, LLC;

· common stock of Hormel Foods Corporation; and

· General Investment Account of the record keeper, the Massachusetts Mutual Life Insurance Company .

These transactions qualify as party-in-interest transactions; however, they are exempt from the prohibited transactions rules under ERISA.

*7. Subsequent Events*

Management evaluated subsequent events for the Plan through April 20, 2017, the date the financial statements were available to be issued.

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Capital Accumulation Plan

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

EIN: 36-3889635 Plan Number: 001

October 30, 2016

Identity of Issuer, Borrower, Lessor, or Similar Party	Number of Shares/Units Held	Current Value
Insurance company general account:
Massachusetts Mutual Life Insurance Company*:
General Investment Account, contract value	914,258 units	$ 20,013,801
Non-pooled separate account:
State Street Corporation*:
Hormel Foods Corporation Stock Fund*	81,970 units	9,143,941
Separate trust accounts:
State Street Corporation*:
BlackRock Equity Index S&P 500	99,076 units	1,391,813
BlackRock LifePath Index 2020	404,041 units	4,596,155
BlackRock LifePath Index 2025	641,575 units	7,365,589
BlackRock LifePath Index 2030	567,326 units	6,570,629
BlackRock LifePath Index 2035	451,087 units	5,260,578
BlackRock LifePath Index 2040	222,070 units	2,603,329
BlackRock LifePath Index 2045	221,732 units	2,613,973
BlackRock LifePath Index 2050	157,476 units	1,868,573
BlackRock LifePath Index 2055	93,502 units	1,114,698
BlackRock LifePath Index 2060	485 units	4,830
BlackRock LifePath Index Retirement	259,133 units	2,897,881
BlackRock MSCI ACWI ex-US Index	13,262 units	134,040
BlackRock Russell 2500 Index	15,561 units	201,865
BlackRock US Debt Index	8,112 units	88,650
DFA US Large Cap Value Fund	183,114 units	1,862,542
Dodge & Cox International Stock Fund	88,490 units	1,202,620
Harbor Capital Appreciation	167,989 units	2,520,251
Prudential Core Plus Bond CIT	123,342 units	1,327,672
Wasatch Small Cap Growth Fund	63,859 units	971,314
Wells Fargo Advantage Intrinsic Small Cap Value	74,462 units	959,612
Total separate trust accounts		45,556,614
Self-directed brokerage assets
Charles Schwab & Co.		71,665
Promissory notes*	Varying maturity dates with interest rates ranging from 4.25% to 9.25%	6,199,620
Total assets (held at end of year)		$ 80,985,641

*Indicates a party-in-interest to the Plan.

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*SIGNATURES*

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on their behalf by the undersigned hereunto duly authorized.

/s/ JAMES N. SHEEHAN
JAMES N. SHEEHAN Senior Vice President and Chief Financial Officer, Hormel Foods Corporation

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*EXHIBIT INDEX*

Exhibit Number	Description
23	Consent of Independent Registered Public Accounting Firm

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