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The Company’s nonvested shares granted on or before September 26, 2010, vest after five years or upon retirement. 

Nonvested shares granted between September 27, 2010, and July 27, 2014, vest after one year. Nonvested shares granted on or after July 28, 2014, vest on the earlier of the day before the Company’s next annual meeting date or one year. A reconciliation of the nonvested shares (in thousands) as of October 26, 2014, and changes during the fiscal year then ended, is as follows: 

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The weighted-average grant date fair value of nonvested shares granted, the total fair value (in thousands) of nonvested shares granted, and the fair value (in thousands) of shares that have vested during each of the past three fiscal years is as follows: 

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Stock-based compensation expense, along with the related income tax benefit, for each of the past three fiscal years is presented in the table below: 

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At October 26, 2014, there was $8.2 million of total unrecog- nized compensation expense from stock-based compensation arrangements granted under the plans. This compensation is expected to be recognized over a weighted-average period of approximately 2.5 years. During fiscal years 2014, 2013, and 2012, cash received from stock option exercises was $10.5 million, $30.2 million, and $14.7 million, respectively. The total tax benefit to be realized for tax deductions from these option exercises was $28.4 million, $29.4 million, and $11.4 million, respectively. 

Shares issued for option exercises and nonvested shares may be either authorized but unissued shares, or shares of treasury stock acquired in the open market or otherwise. The number of shares available for future grants was 26.6 million at October 26, 2014, 27.9 million at October 27, 2013, and 30.0 million at October 28, 2012. 

## Note M Derivatives and Hedging 

The Company uses hedging programs to manage price risk associated with commodity purchases. These programs utilize futures contracts and swaps to manage the Company’s expo- sure to price fluctuations in the commodities markets. The Company has determined that its programs which are desig- nated as hedges are highly effective in offsetting the changes in fair value or cash flows generated by the items hedged. 

Cash Flow Hedges: The Company currently utilizes corn futures to offset price fluctuations in the Company’s future direct grain purchases, and has historically entered into various swaps to hedge the purchases of grain and natural gas at certain plant locations. The financial instruments are designated and accounted for as cash flow hedges, and the Company measures the effectiveness of the hedges at least quarterly. Effective gains or losses related to these cash flow hedges are reported in accumulated other comprehensive loss (AOCL) and reclassified into earnings, through cost of products sold, in the period or periods in which the hedged transactions affect earnings. Any gains or losses related to hedge ineffec- tiveness are recognized in the current period cost of products sold. The Company typically does not hedge its grain or natu- ral gas exposure beyond the next two upcoming fiscal years. As of October 26, 2014, and October 27, 2013, the Company had the following outstanding commodity futures contracts that were entered into to hedge forecasted purchases: 

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As of October 26, 2014, the Company has included in AOCL hedging losses of $14.8 million (before tax) relating to its positions, compared to losses of $9.0 million (before tax) as of October 27, 2013. The Company expects to recognize the majority of these losses over the next 12 months. 

Fair Value Hedges: The Company utilizes futures to minimize the price risk assumed when fixed forward priced contracts are offered to the Company’s commodity suppliers. The intent of the program is to make the forward priced commodities cost nearly the same as cash market purchases at the date of delivery. The futures contracts are designated and accounted 

