deploying cash prudently sound governance Hormel Foods is one of the food industry’s most reliable financial performers because  we are disciplined about maintaining a sound financial position. At the end of fiscal 2004, debt accounted for 21 percent of our total capitalization, while cash from operations totaled $295 million. In addition to directing  available cash to acquisitions that meet our demanding standards for financial return and strategic contribution, we use cash to reward shareholders through dividend payments and common stock repurchases. Sound governance on behalf of shareholders has been a top priority at Hormel Foods for many years. Having a predominantly independ- ent board of directors is a practice that signifi- cantly predates the new mandates. We also have long required that all board members on the Audit, Compensation, Governance, and Contingency Committees be independent. In addition, all of our directors stand for election each year. For more details about our corpo- rate governance, please go to our Web site at www.hormel.com and refer to our corporate governance section. 2004 Annual Report 15