portable, immediate, protein-rich foods. To further support  growth, the Company will continue to build brand awareness  with increased advertising support focusing on the  Jennie-O ® Make The Switch ®  advertising campaign,  Hormel ®  Natural  Choice ®  deli meats,  Hormel ®  REV ®  wraps, the  SPAM ®  family  of products,  SKIPPY ®  peanut butter, and  Muscle Milk ®  pro- tein-rich products. and administrative expenses as a percentage of net sales for  the fourth quarter increased to 6.5 percent compared to the  prior year at 6.3 percent. For the fiscal year, these expenses  decreased to 7.0 percent of net sales from 7.2 percent in fiscal  2013. The higher expense for the fourth quarter includes $4.8  million of transaction costs incurred related to the acquisition  of CytoSport, reflected in the Specialty Foods segment. For  the fiscal year, the Company incurred increased advertising  and employee-related expenses, offset by transaction and  transition costs related to the U.S. based  SKIPPY ®  acquisition  in the prior year. In 2015, the Company plans a renewed focus  on advertising for many of the Company’s products including  the  Make The Switch ®  advertising campaign for  Jennie-O ® products,  SKIPPY ®  peanut butter,  Hormel ®  Natural Choice ® deli  meats, the  SPAM ®  family of products,  Hormel ®  REV ® wraps,  and  Muscle Milk ®  protein-rich products. As a percentage of  net sales, the Company expects selling, general and adminis- trative expenses to be between 7.5 percent and 7.8 percent in  fiscal 2015. Gross Profit:  Gross profit was $423.6 million and $1.56 billion  for the 2014 fourth quarter and fiscal year, respectively, com- pared to $385.5 million and $1.41 billion last year. As a per- centage of net sales, gross profit increased to 16.7 percent for  the fourth quarter compared to 16.6 percent in fiscal 2013, and  increased to 16.8 percent for the year compared to 16.1 per- cent in fiscal 2013. Strong performances from the Refrigerated  Foods, Jennie-O Turkey Store, and International & Other  segments offset lower margins in the Grocery Products and  Specialty Foods segments for both the fourth quarter and fis- cal year. Beneficial turkey commodity prices for the Jennie-O  Turkey Store segment and strong pork operating margins for  the Refrigerated Foods segment drove overall profit gains.  In addition, continued growth of retail and foodservice val- ue-added products benefited margins. Strong margins from  the Company’s China operations and higher pork export sales  and royalty income boosted margins for the International &  Other segment. High meat input costs and related pricing  actions negatively impacted margins and drove lower results  in the Grocery Products segment. The Specialty Foods seg- ment delivered lower margins in the fourth quarter due to a  fair value inventory adjustment of $4.5 million relating to the  CytoSport acquisition. The fourth quarter 2013 expiration of  the agreement allowing DCB to sell certain sugar substitutes  into foodservice trade channels also impacted fiscal year com- parisons. Additionally, shipping and handling expenses rose in  all five of the Company’s segments for the fiscal year. Research and development expenses were $7.5 million and  $29.9 million for the fiscal 2014 fourth quarter and year,  respectively, compared to $7.2 million and $29.9 million in fis- cal 2013. Building upon the Company’s value-added portfolio  through product innovation will continue to be a priority for  the Company in fiscal 2015. Equity in Earnings of Affiliates:  Equity in earnings of affiliates  was $5.7 million and $17.6 million for the fiscal 2014 fourth  quarter and year, respectively, compared to $2.1 million and  $20.5 million last year. The increase for the fourth quarter is  a result of improved results from the Company’s 50 percent  owned MegaMex joint venture, reflecting the impact of a  larger incentive expense on the Fresherized Foods acquisition  recognized in the prior year. In addition, overall improved  results for the Company’s international joint ventures were  noted for the fourth quarter of fiscal 2014, while the full year  generated an overall decline for those operations as well as  the MegaMex joint venture compared to the prior year. The Company accounts for its majority-owned operations  under the consolidation method. Investments in which the  Company owns a minority interest, and for which there are  no other indicators of control, are accounted for under the  equity or cost method. These investments, along with receiv- ables from other affiliates, are included in the Consolidated  Statements of Financial Position as investments in and receiv- ables from affiliates. The composition of this line item at October 26, 2014, was as follows: Moving into fiscal 2015, the Company anticipates pork  commodity prices and pork operating margins to normalize  as the year progresses, providing input cost relief for the  Grocery Products segment. Challenging comparisons for the  Company’s pork operations will be offset by strong growth in  the foodservice and retail businesses and improved live pro- duction results for the Refrigerated Foods segment. Jennie-O  Turkey Store is entering the new fiscal year backed by strong  sales momentum and beneficial grain markets, but will likely  experience less favorable commodity meat markets. The  International & Other segment will continue to deliver growth  through expansion of its China business and the Specialty  Foods segment will benefit from a full year of CytoSport sales.  Turkey production will be modestly increased in fiscal 2015  to support the Jennie-O Turkey Store value-added product  needs, following a year of slight increases to production levels  in fiscal 2014. Advertising support for the Company’s core  brands should also enhance margin results in fiscal 2015. Selling, General and Administrative:  Selling, general and  administrative expenses for the fourth quarter and year were  $165.9 million and $650.9 million, respectively, compared to  $147.4 million and $627.3 million last year. Selling, general  18 (in thousands)  Country  Investments/Receivables United States   $208,221 Philippines  48,170 Vietnam  2,806 Mexico  2,267 Japan 2,987 Total  $264,451