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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (con't)

NOTE 2 - COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS:

			(in thousands)
			2003		2002
Inventories:
Meat, ingredients and supplies			$3,229		$4,187
Work in progress			1,850		1,940
Finished goods			12,954		11,435
			$18,033		$17,562
Property, plant and equipment:
Land			$1,840		$1,807
Buildings and improvements			13,065		13,059
Machinery and equipment			36,170		34,350
Transportation equipment			9,744		9,187
			60,819		58,403
Accumulated depreciation			(43,084)		(39,373)
			$17,735		$19,030
Projects in process totaled $846 and $985 at October 31, 2003 and November 1, 2002, respectively.
Other non-current assets:
Cash surrender value benefits			$9,316		$8,541
Intangible asset			159		199
Others			300		0
			$9,775		$8,740
Accrued payroll, advertising and other expenses:
Payroll, vacation, payroll taxes
	and employee benefits		$3,225		$3,073
Accrued advertising and
	broker commissions		673		707
Property taxes			382		381
Others			637		487
			$4,917		$4,648
Non-current liabilities:
Incentive compensation			1,256		2,038
Accrued pension			5,203		4,420
Other accured retirement plans			4,326		4,214
Post retirement healthcare			320		320
			$11,105		$10,992

NOTE 3 - RETIREMENT AND OTHER BENEFIT PLANS:

The Company has noncontributory-trusteed defined benefit retirement plans for sales, administrative, supervisory and certain other employees. The benefits under these plans are primarily based on years of service and compensation levels. The Company's funding policy is to contribute annually the maximum amount deductible for federal income tax purposes, without regard to the plan's Unfunded Current Liability.

Net pension cost consisted of the following (in thousands):

		(in thousands)
		2003		2002		2001
Cost of benefits earned during the year		$1,177		$1,055		$827
Interest cost on projected benefit obligation		1,523		1,312		1,142
Actual return on plan assets		(1,768)		1,127		1,372
Deferral of unrecognized (loss) gain on plan assets		660		(2,286)		(2,609)
Amortization of unrecognized (gain) loss		226		8		(88)
Amortization of transition asset (15.2 years)		(76)		(76)		(76)
Amortization of unrecognized prior service costs		41		41		36
Net pension cost		$1,783		$1,181		$604

The 1987 transition asset is being amortized using the straight-line method over the average remaining service period of active plan participants at the date of adoption of the plan. At October 31, 2003, 0.93 years of amortization remained. The discount rate in determining the projected benefit obligation was 6.25% for fiscal year 2003 and 6.75% for fiscal year 2002 and 7% for fiscal year 2001. The expected long-term rate of return used in determining the projected benefit obligation for fiscal years 2003, 2002 and 2001 was 8%. The assumed rate of future compensation increases for fiscal years 2003 and 2002 was 3.75% and 4.00% for fiscal year 2001.

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