Note N Fair Value Measurements 58 The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above: (1)  The Company’s cash equivalents consist primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts.  As these investments have a maturity date of three months or less, the carrying value approximates fair value. (2)  The Company holds trading securities as part of a rabbi trust to fund certain supplemental executive retirement plans and deferred income plans.  The rabbi trust is included in other assets on the Consolidated Statements of Financial Position and is valued based on the underlying fair value  of each fund held by the trust. A majority of the funds held related to the supplemental executive retirement plans have been invested in fixed  income funds managed by a third party. The declared rate on these funds is set based on a formula using the yield of the general account invest- ment portfolio that supports the fund, adjusted for expenses and other charges. The rate is guaranteed for one year at issue, and may be reset  annually on the policy anniversary, subject to a guaranteed minimum rate. As the value is based on adjusted market rates, and the fixed rate  is only reset on an annual basis, these funds are classified as Level 2. The remaining funds held are also managed by a third party, and include  equity securities, money market accounts, bond funds, or other portfolios for which there is an active quoted market. Therefore, these securities  are classified as Level 1. The related deferred compensation liabilities are included in other long-term liabilities on the Consolidated Statements  of Financial Position and are valued based on the underlying investment selections held in each participant’s account. Investment options gener- ally mirror those funds held by the rabbi trust, for which there is an active quoted market. Therefore, these investment balances are classified as  Level 1. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based  on a specified percentage of the I.R.S. Applicable Federal Rates in effect and therefore these balances are classified as Level 2. (3)  The Company’s commodity derivatives represent futures contracts used in its hedging or other programs to offset price fluctuations associated  with purchases of corn and soybean meal, and to minimize the price risk assumed when forward priced contracts are offered to the Company’s  commodity suppliers. The Company’s futures contracts for corn and soybean meal are traded on the Chicago Board of Trade, while futures  contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available and therefore  these contracts are classified as Level 1. All derivatives are reviewed for potential credit risk and risk of nonperformance. The Company nets the  derivative assets and liabilities for each of its hedging programs, including cash collateral, when a master netting arrangement exists between  the Company and the counterparty to the derivative contract. The net balance for each program is included in other current assets or accounts  payable, as appropriate, in the Consolidated Statements of Financial Position. As of October 26, 2014, the Company has recognized the right to  reclaim net cash collateral of $11.5 million from various counterparties (including $55.6 million of cash less $44.1 million of realized losses on  closed positions). As of October 27, 2013, the Company had recognized the right to reclaim net cash collateral of $25.8 million from various coun- terparties (including $35.7 million of cash less $9.9 million of realized losses on closed positions). Pursuant to the provisions of ASC 820, the Company’s financial assets and liabilities carried at fair value on a recurring basis in  the consolidated financial statements as of October 26, 2014, and October 27, 2013, and their level within the fair value hierarchy,  are presented in the table below. Fair Value Measurements at October 26, 2014 Quoted Prices in  Fair Value at  Active Markets  Significant Other  Significant  October 26,  for Identical  Observable  Unobservable  (in thousands)  2014  Assets (Level 1)  Inputs (Level 2)  Inputs (Level 3) Assets at Fair Value: Cash and cash equivalents (1) $334,174  $ 334,174  $  –  $ – Other trading securities (2) 117,249  39,120   78,129   – Commodity derivatives (3) 3,461  3,461  –   – Total Assets at Fair Value  $454,884  $ 376,755  $78,129  $ – Liabilities at Fair Value: Deferred compensation (2) $ 54,809  $ 23,642  $31,167  $ – Total Liabilities at Fair Value  $ 54,809  $ 23,642  $31,167  $ – Fair Value Measurements at October 27, 2013 Quoted Prices in  Fair Value at  Active Markets  Significant Other  Significant  October 27,  for Identical  Observable  Unobservable  (in thousands)  2013  Assets (Level 1)  Inputs (Level 2)  Inputs (Level 3) Assets at Fair Value: Cash and cash equivalents (1) $434,014  $434,014  $  –  $ – Other trading securities (2)  114,300  38,489   75,811   – Commodity derivatives (3)  6,086  6,086  –   – Total Assets at Fair Value  $554,400  $478,589  $75,811  $ – Liabilities at Fair Value: Deferred compensation (2) $ 52,771  $ 21,257  $31,514  $ – Total Liabilities at Fair Value  $ 52,771  $ 21,257  $31,514  $ –