Results of Operations FISCAL YEARS 2014 AND 2013: Consolidated Results OVERVIEW The Company’s fiscal year consisted of 52 weeks in 2014,  2013, and 2012. Net Earnings:  Net earnings attributable to the Company  for the fourth quarter of fiscal 2014 were $171.3 million, an  increase of 8.8 percent compared to earnings of $157.3 million  for the same quarter last year. Diluted earnings per share were  $0.63 compared to $0.58 for the same quarter last year. Net  earnings attributable to the Company for fiscal 2014 increased  14.5 percent to $602.7 million, from $526.2 million in fiscal  2013. Diluted earnings per share for fiscal 2014 increased 14.4  percent to $2.23 compared to $1.95 per share last year. Net Sales:  Net sales for the fourth quarter of fiscal 2014  increased to $2.54 billion from $2.32 billion in the same  quarter of fiscal 2013, an increase of 9.5 percent. Net  sales for fiscal 2014 increased 6.5 percent to $9.32 billion  compared to $8.75 billion in the prior year. The Company’s  Specialty Foods, International & Other, Jennie-O Turkey  Store, and Refrigerated Foods reporting segments delivered  sales growth in the fourth quarter compared to fiscal 2013.  For the full year in fiscal 2014, growth was enjoyed by the  International & Other, Refrigerated Foods, Jennie-O Turkey  Store, and Grocery Products segments compared to the prior  year. Tonnage for the fourth quarter increased 2.8 percent  to 1.34 billion lbs. compared to 1.30 billion lbs. for the same  period last year. Tonnage for the fiscal year increased 0.7 per- cent to 5.00 billion lbs. from 4.97 billion lbs. in the prior year. Net sales for fiscal 2014 were enhanced by the addition of  the CytoSport business acquired on August 11, 2014, and the  China based  SKIPPY ®  peanut butter business acquired on  November 26, 2013. On a combined basis, these acquisitions  contributed an incremental $84.3 million of net sales and  39.6 million lbs. for the fourth quarter, and $102.5 million of  net sales and 50.3 million lbs. for the fiscal year. Additionally,  top-line comparative results for the year were impacted by  the addition of the U.S. based  SKIPPY ®  peanut butter business  acquired on January 31, 2013. These sales contributed an  incremental $86.5 million of net sales and 57.1 million lbs. to  the top-line results for the fiscal year. Increased value-added  sales within the Refrigerated Foods and Jennie-O Turkey  Store segments also contributed to the top-line results for  both the fourth quarter and fiscal year. Robust sales from  the Company’s China business and pork export sales by the  Company’s international business also provided notable  growth throughout fiscal 2014. Tonnage increased for the  year, as the Company successfully managed reduced volume  through its harvest facilities in the third quarter, reflecting  tight raw material supplies due to Porcine Epidemic Diarrhea  Virus (PEDv) in the industry. The Company expects continued strong sales momentum  entering 2015. The addition of the CytoSport business further  diversifies the Company’s portfolio and represents a signif- icant opportunity for the Company to expand its offerings of  17 Segment Business Conducted Grocery  Products This segment consists primarily of the pro- cessing, marketing, and sale of shelf-stable  food products sold predominantly in the  retail market. This segment also includes  the results from the Company’s MegaMex  Foods, LLC (MegaMex) joint venture. Refrigerated  Foods This segment includes the Hormel  Refrigerated operating segment and the  Affiliated Business Units. This segment con- sists primarily of the processing, marketing,  and sale of branded and unbranded pork  and beef products for retail, foodservice,  and fresh product customers. The Affiliated  Business Units include the Farmer John,  Burke Corporation, Dan’s Prize, and Saag’s  Products, Inc. businesses. Through fiscal  2014, this segment also included Precept  Foods, LLC, a 50.01 percent owned joint  venture that was dissolved at the end of the  fiscal year. Jennie-O  Turkey Store This segment consists primarily of the  processing, marketing, and sale of branded  and unbranded turkey products for retail,  foodservice, and fresh product customers. Specialty  Foods This segment includes the Diamond Crystal  Brands (DCB), CytoSport/Century Foods  International, and Hormel Specialty Products  (HSP) operating segments. This segment  consists of the packaging and sale of private  label shelf stable products, nutritional prod- ucts, sugar, and condiments to industrial,  retail, and foodservice customers. This seg- ment also includes the processing, market- ing, and sale of nutritional food products and  supplements to hospitals, nursing homes,  and other marketers of nutritional products. International  & Other This segment includes the Hormel Foods  International operating segment, which  manufactures, markets, and sells Company  products internationally. This segment also  includes the results from the Company’s  international joint ventures and miscella- neous corporate sales. This segment was  previously the All Other segment, and was  renamed in the second quarter of fiscal  2013, with no change in the composition of  the segment. The Company is a processor of branded and unbranded food  products for retail, foodservice, and fresh product customers.  The Company operates in the following five reportable segments: