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The following table sets forth changes in the unrecognized tax benefits, excluding interest and penalties, for fiscal years 2013 and 2014. 

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The amount of unrecognized tax benefits, including interest and penalties, at October 26, 2014, recorded in other long- term liabilities was $25.4 million, of which $16.8 million would impact the Company’s effective tax rate if recognized. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with gains of $0.1 million included in expense for fiscal 2014. The amount of accrued interest and penalties at October 26, 2014, associated with unrecognized tax benefits was $2.8 million. 

The Company is regularly audited by federal and state taxing authorities. The United States Internal Revenue Service (I.R.S.) has concluded its examinations of the Company’s consolidated federal income tax returns for fiscal years through 2011 and is currently examining fiscal year 2013. The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2006. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and that the related unrecognized tax benefits may change, based on the status of the examinations it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions. 

## Note K 

## Commitments and Contingencies 

In order to ensure a steady supply of hogs and turkeys, and to keep the cost of products stable, the Company has entered into contracts with producers for the purchase of hogs and turkeys at formula-based prices over periods up to 10 years. The Company has also entered into grow-out contracts with independent farmers to raise turkeys for the Company for periods up to 25 years. Under these arrangements, the Company owns the livestock, feed, and other supplies while the independent farmers provide facilities and labor. The Company has also contracted for the purchase of corn, soybean meal, and other feed ingredients from independent suppliers for periods up to three years. Under these contracts, the Company is committed at October 26, 2014, to make pur- chases, assuming current price levels, as follows: 

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Purchases under these contracts for fiscal 2014, 2013, and 2012 were $2.2 billion, $2.0 billion, and $2.0 billion, respectively. 

The Company has noncancelable operating lease commitments on facilities and equipment at October 26, 2014, as follows: 

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The Company expensed $21.1 million, $21.6 million, and $21.6 million for rent in fiscal 2014, 2013, and 2012, respectively. 

The Company has commitments to expend approximately $91.3 million to complete construction in progress at various locations as of October 26, 2014. 

