Executive Overview input cost relief for the Grocery Products segment. Strong  growth in the foodservice and retail businesses and improved  live production results within the Refrigerated Foods segment  will offset challenging comparisons for our pork operations.  More favorable grain markets are expected to benefit the  Jennie-O Turkey Store segment, partially offset by lower com- modity turkey meat prices. We plan modest increases to turkey  and pork production in fiscal 2015 to support our value-added  businesses. A full year of contributions from the CytoSport  business will aid in the delivery of year-over-year earnings  growth for Specialty Foods. We look for continued growth of  pork exports and our China businesses, complemented by the  SPAM ®  family of products and  SKIPPY ®  peanut butter, to deliver  growth in our International & Other segment. Fiscal 2014:  Hormel Foods achieved record sales and earn- ings for fiscal 2014. Sales grew 6.5 percent to $9.3 billion  with four of the five reporting segments recording top-line  increases. Net earnings for the year were $602.7 million, an  increase of 14.5 percent over 2013, with three of five segments  contributing to the growth. Earnings per diluted share were  $2.23, a 14.4 percent improvement compared to last year. Significant contributions by the Refrigerated Foods, Jennie-O  Turkey Store, and International & Other segments drove top  and bottom-line results, with each delivering double-digit  percentage segment operating profit growth. Financial  performance for the Refrigerated Foods segment improved  over last year as strong pork operating margins, higher meat  commodity markets, and increased sales of value-added  products in the retail and foodservice businesses drove  segment results. Our Jennie-O Turkey Store segment was  also able to capitalize on the growth of value-added sales and  higher meat commodity markets. Segment profit performance  was negatively impacted by higher grain and energy costs  and lower live production performance associated with colder  than normal weather conditions in the first half of the year.  The International & Other segment benefitted from growth  in the China businesses and increased royalty income, along  with momentum from export sales of  SKIPPY ®  peanut butter  and pork products, to drive year-over-year gains. Grocery  Products results were pressured by higher protein input costs  and volume softness associated with price increases on cer- tain products. Specialty Foods segment net sales and segment  profit were negatively impacted due to the fourth quarter 2013  expiration of the agreement allowing Diamond Crystal Brands  to sell certain sugar substitutes in foodservice trade chan- nels as well as 2014 acquisition-related expenses. General  corporate expense was higher due to an increase in bad debt  expense, while net interest and investment expense increased  due to lower returns on the Company’s rabbi trust. Product innovation and building our branded, value-added  products will remain priorities in fiscal 2015. Introducing  new flavors, convenience, and creative menu options for our  customers and consumers are vital to our strategy to keep  our products relevant in today’s changing marketplace. We  will continue to support our numerous iconic brands with  increased advertising in fiscal 2015 and expect these efforts to support our business growth goals. Strong cash flow, along with a solid balance sheet, will enable us to continue to return cash to shareholders, while providing the foundation  to expand our business through internal investment and strategic acquisitions. This discussion and analysis of financial condition and  results of operations is based upon the consolidated financial  statements of Hormel Foods Corporation (the Company),  which have been prepared in accordance with U.S. generally  accepted accounting principles. The preparation of these  financial statements requires the Company to make estimates  and judgments that affect the reported amounts of assets,  liabilities, revenues and expenses, and related disclosure of  contingent assets and liabilities. The Company evaluates, on  an ongoing basis, its estimates for reasonableness as changes  occur in its business environment. The Company bases its  estimates on experience, the use of independent third-party  specialists, and various other assumptions that are believed to  be reasonable under the circumstances, the results of which  form the basis for making judgments about the carrying val- ues of assets and liabilities that are not readily apparent from  other sources. Actual results may differ materially from these  estimates under different assumptions or conditions. Critical accounting policies are defined as those that are  reflective of significant judgments, estimates, and uncertain- ties, and potentially result in materially different results under  different assumptions and conditions. The Company believes  the following are its critical accounting policies: Our financial performance continued to generate substantial  operating cash flows. In fiscal 2014, we completed the acquisi- tions of the China based  SKIPPY ®  peanut butter business and the CytoSport Holdings, Inc. (CytoSport) business, makers of the  Muscle Milk ®  brand of products, for a total of $466.2 mil- lion. We also repurchased 1.3 million shares of common stock  for $58.9 million and announced a 25.0 percent increase to  our dividend rate after a 17.6 percent increase last year. The  annual dividend for 2015 will be $1.00 per share and marks  the 49th consecutive year of dividend increases. Fiscal 2015 Outlook:  We expect to deliver sales and earnings in  fiscal 2015 that exceed our five percent sales and ten percent  earnings growth goals. While we expect continued price vola- tility in commodity meats, we expect prices to normalize as the  year progresses. These lower meat protein prices will provide  Critical Accounting Policies 14 Management’s Discussion and Analysis of Financial Condition and Results of Operations