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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 28, 2024
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________

Commission File Number: 1-2402
hml-20231029_g1.jpg
HORMEL FOODS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
41-0319970
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

1 Hormel Place, Austin Minnesota
55912-3680
(Address of principal executive offices)(Zip Code)
(507) 437-5611
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock
$0.01465 par value
HRL
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     ☒ Yes    ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    ☒ Yes    ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
 Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding at September 1, 2024
Common Stock$0.01465par value548,363,619 
Common Stock Nonvoting
$0.01par value0 

TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II - OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.


2
PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
 Quarter EndedNine Months Ended
In thousands, except per share amounts
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Sales$2,898,443 $2,963,299 $8,782,706 $8,911,930 
Cost of Products Sold2,410,075 2,465,251 7,281,798 7,426,514 
Gross Profit488,369 498,048 1,500,908 1,485,417 
Selling, General, and Administrative259,653 291,073 766,707 725,621 
Equity in Earnings of Affiliates
7,977 9,784 39,250 42,213 
Operating Income236,693 216,759 773,452 802,009 
Interest and Investment Income10,484 9,239 43,416 20,700 
Interest Expense21,459 18,372 61,464 55,042 
Earnings Before Income Taxes225,719 207,626 755,404 767,666 
Provision for Income Taxes
48,984 45,055 170,733 170,230 
Net Earnings176,735 162,571 584,671 597,437 
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest
34 (108)(170)(200)
Net Earnings Attributable to Hormel Foods Corporation
$176,701 $162,679 $584,842 $597,637 
Net Earnings Per Share
Basic$0.32 $0.30 $1.07 $1.09 
Diluted$0.32 $0.30 $1.07 $1.09 
Weighted-average Shares Outstanding
Basic548,685546,358547,858 546,389 
Diluted549,266548,637548,624 549,227 
 
See Notes to the Consolidated Financial Statements


3
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unaudited
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Earnings$176,735 $162,571 $584,671 $597,437 
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation(29,075)(10,572)(36,931)27,362 
Pension and Other Benefits2,008 2,195 6,205 7,368 
Derivatives and Hedging
(18,601)2,518 (1,397)(31,058)
Equity Method Investments(6,770)8,733 (10,330)10,141 
Total Other Comprehensive Income (Loss)
(52,438)2,875 (42,453)13,813 
Comprehensive Income124,297 165,445 542,218 611,250 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest
(357)(510)(502)(338)
Comprehensive Income Attributable to Hormel Foods Corporation
$124,653 $165,955 $542,720 $611,588 
 
See Notes to the Consolidated Financial Statements


4
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
In thousands, except share and per share amounts
July 28, 2024October 29, 2023
Assets  
Cash and Cash Equivalents$537,476 $736,532 
Short-term Marketable Securities24,454 16,664 
Accounts Receivable (Net of Allowance for Doubtful Accounts of
$3,678 at July 28, 2024, and $3,557 at October 29, 2023)
727,054 817,391 
Inventories1,649,649 1,680,406 
Prepaid Expenses and Other Current Assets
58,814 46,256 
Total Current Assets2,997,446 3,297,249 
Goodwill
4,923,731 4,928,464 
Other Intangibles
1,743,615 1,757,171 
Pension Assets
190,947 204,697 
Investments in Affiliates680,386 725,121 
Other Assets
409,125 370,252 
Property, Plant, and Equipment
Land74,670 74,626 
Buildings1,471,787 1,458,354 
Equipment2,815,248 2,781,730 
Construction in Progress274,823 195,665 
Less: Allowance for Depreciation(2,467,997)(2,344,557)
Net Property, Plant, and Equipment2,168,531 2,165,818 
Total Assets$13,113,781 $13,448,772 
Liabilities and Shareholders’ Investment  
Accounts Payable
$675,167 $771,397 
Accrued Expenses74,789 51,679 
Accrued Marketing Expenses113,012 87,452 
Employee-related Expenses
248,954 263,330 
Interest and Dividends Payable171,079 172,178 
Taxes Payable18,513 15,212 
Current Maturities of Long-term Debt8,232 950,529 
Total Current Liabilities1,309,746 2,311,776 
Long-term Debt Less Current Maturities2,851,621 2,358,719 
Pension and Post-retirement Benefits359,083 349,268 
Deferred Income Taxes499,098 498,106 
Other Long-term Liabilities217,008 191,917 
Shareholders’ Investment
Preferred Stock, Par Value $0.01 a Share —
Authorized 160,000,000 Shares; Issued — None
— — 
Common Stock, Nonvoting, Par Value $0.01 a Share —
Authorized 400,000,000 Shares; Issued — None
— — 
Common Stock, Par Value $0.01465 a Share — Authorized 1,600,000,000 Shares;
Shares Issued as of July 28, 2024: 548,328,587
Shares Issued as of October 29, 2023: 546,599,420
8,033 8,007 
Additional Paid-in Capital560,849 506,179 
Accumulated Other Comprehensive Loss(314,373)(272,252)
Retained Earnings7,612,610 7,492,952 
Hormel Foods Corporation Shareholders’ Investment
7,867,119 7,734,885 
Noncontrolling Interest10,106 4,100 
Total Shareholders’ Investment
7,877,225 7,738,985 
Total Liabilities and Shareholders’ Investment$13,113,781 $13,448,772 
 
See Notes to the Consolidated Financial Statements

5
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT
Unaudited
Quarter Ended July 30, 2023
 Hormel Foods Corporation Shareholders  
Common
Stock
Treasury
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Non-
controlling
Interest
Total
Shareholders’
Investment
In thousands, except per share amounts
SharesAmountSharesAmount
Balance at April 30, 2023546,255$8,002 —$— $488,100 $7,435,292 $(244,887)$5,108 $7,691,615 
Net Earnings (Loss)
162,679 (108)162,571 
Other Comprehensive Income (Loss)
3,277 (402)2,875 
Stock-based Compensation Expense
5,034 5,034 
Exercise of Stock Options/Restricted Shares
2123 5,931 5,933 
Declared Dividends – $0.2750 per Share
239 (150,404)(150,165)
Balance at July 30, 2023546,467$8,005 —$— $499,304 $7,447,567 $(241,610)$4,598 $7,717,863 
Quarter Ended July 28, 2024
 Hormel Foods Corporation Shareholders  
Common
Stock		Treasury
Stock		Additional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Non-
controlling
Interest		Total
Shareholders’
Investment
In thousands, except per share amounts
SharesAmountSharesAmount
Balance at April 28, 2024548,030$8,028 —$— $549,130 $7,591,157 $(262,325)$10,462 $7,896,452 
Net Earnings (Loss)
176,701 34 176,735 
Other Comprehensive Income (Loss)
(52,048)(390)(52,438)
Stock-based Compensation Expense
5,107 5,107 
Exercise of Stock Options/Restricted Shares
2994 6,321 6,325 
Declared Dividends – $0.2825 per Share
291 (155,248)(154,957)
Balance at July 28, 2024548,329$8,033 —$— $560,849 $7,612,610 $(314,373)$10,106 $7,877,225 

See Notes to the Consolidated Financial Statements

6
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT
Unaudited
Nine Months Ended July 30, 2023
Hormel Foods Corporation Shareholders
Common
Stock		Treasury
Stock		Additional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Non-
controlling
Interest		Total
Shareholders’
Investment
In thousands, except per share amounts
SharesAmountSharesAmount
Balance at October 30, 2022546,237 $8,002 — $— $469,468 $7,313,374 $(255,561)$4,936 $7,540,219 
Net Earnings (Loss)
597,637 (200)597,437 
Other Comprehensive Income (Loss)13,950 (138)13,813 
Purchases of Common Stock(310)(12,303)(12,303)
Stock-based Compensation Expense44— 20,946 20,946 
Exercise of Stock Options/Restricted Shares496 7 8,482 8,489 
Shares Retired(310)(5)310 12,303 (277)(12,021)— 
Declared Dividends – $0.8250 per Share
685 (451,423)(450,738)
Balance at July 30, 2023546,467 $8,005 — $— $499,304 $7,447,567 $(241,610)$4,598 $7,717,863 
Nine Months Ended July 28, 2024
Hormel Foods Corporation Shareholders
Common
Stock		Treasury
Stock		Additional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Non-
controlling
Interest		Total
Shareholders’
Investment
In thousands, except per share amounts
SharesAmountSharesAmount
Balance at October 29, 2023546,599 $8,007 — $— $506,179 $7,492,952 $(272,252)$4,100 $7,738,985 
Net Earnings (Loss)
584,842 (170)584,671 
Other Comprehensive Income (Loss)(42,121)(332)(42,453)
Contribution from Noncontrolling Interest6,508 6,508 
Stock-based Compensation Expense52 1 20,110 20,112 
Exercise of Stock Options/Restricted Shares1,677 24 33,760 33,784 
Declared Dividends – $0.8475 per Share
800 (465,183)(464,383)
Balance at July 28, 2024548,329 $8,033 — $— $560,849 $7,612,610 $(314,373)$10,106 $7,877,225 

See Notes to the Consolidated Financial Statements

7
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
Nine Months Ended
In thousands
July 28, 2024July 30, 2023
Operating Activities  
Net Earnings$584,671 $597,437 
Adjustments to Reconcile to Net Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization191,354 187,326 
Equity in Earnings of Affiliates(39,250)(42,213)
Distributions Received from Equity Method Investees32,997 28,160 
Provision for Deferred Income Taxes(1,422)(273)
Non-cash Investment Activities(20,502)(12,047)
Stock-based Compensation Expense20,112 20,946 
Operating Lease Cost
27,869 16,497 
Other Non-cash, Net
18,510 12,295 
Changes in Operating Assets and Liabilities:
Decrease (Increase) in Accounts Receivable89,428 81,423 
Decrease (Increase) in Inventories30,596 (20,536)
Decrease (Increase) in Prepaid Expenses and Other Assets(7,719)(52,117)
Increase (Decrease) in Pension and Post-retirement Benefits32,042 29,571 
Increase (Decrease) in Accounts Payable and Accrued Expenses(95,374)(131,204)
Increase (Decrease) in Net Income Taxes Payable(5,196)13,491 
Net Cash Provided by (Used in) Operating Activities858,117 728,756 
Investing Activities
Net Sale (Purchase) of Securities
(6,106)(49)
Purchases of Property, Plant, and Equipment(172,656)(168,529)
Proceeds from Sales of Property, Plant, and Equipment432 5,306 
Proceeds from (Purchases of) Affiliates and Other Investments(6,681)(427,195)
Proceeds from Company-owned Life Insurance8,112 1,980 
Net Cash Provided by (Used in) Investing Activities(176,899)(588,489)
Financing Activities
Proceeds from Long-term Debt497,765 1,980 
Payment of Debt Issuance Costs
(1,105)— 
Repayments of Long-term Debt and Finance Leases(956,797)(6,584)
Dividends Paid on Common Stock(459,978)(442,560)
Share Repurchase— (12,303)
Proceeds from Exercise of Stock Options33,784 8,489 
Proceeds from Noncontrolling Interest6,508 — 
Net Cash Provided by (Used in) Financing Activities(879,823)(450,977)
Effect of Exchange Rate Changes on Cash(453)(2,273)
Increase (Decrease) in Cash and Cash Equivalents(199,057)(312,983)
Cash and Cash Equivalents at Beginning of Year736,532 982,107 
Cash and Cash Equivalents at End of Period$537,476 $669,124 
Supplemental Non-cash Financing and Investing Activities:
Purchases of property, plant, and equipment included in accounts payable
$18,635 $2,527 

See Notes to the Consolidated Financial Statements

8
HORMEL FOODS CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Unaudited
 
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include certain information and footnotes required by U.S. generally accepted accounting principles (GAAP) for comprehensive financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the interim period are not necessarily indicative of the results that may be expected for the full year.

These statements should be reviewed in conjunction with the consolidated financial statements and associated notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2023. The significant accounting policies used in preparing these interim consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the consolidated financial statements in the Form 10-K. The Company has determined there have been no material changes in the Company’s significant accounting policies, including estimates and assumptions, as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 29, 2023.

Rounding: Certain amounts in the Consolidated Financial Statements and associated notes may not foot due to rounding. All percentages have been calculated using unrounded amounts.

Reclassifications: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Amortization related to operating leases and debt issuance costs were reclassified from Amortization to separate line items within the operating activities section of the Consolidated Condensed Statements of Cash Flows. These reclassifications had no impact on the Consolidated Statements of Operations, Consolidated Statements of Financial Position, or the Increase (Decrease) in Cash and Cash Equivalents in the Consolidated Condensed Statements of Cash Flows.

Accounting Changes and Recent Accounting Pronouncements: 

New Accounting Pronouncements Not Yet Adopted
In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions.

In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update is intended to enhance transparency and decision usefulness of income tax disclosures. This ASU updates income tax disclosure requirements by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The update is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.

Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not relevant to the Company.



9
NOTE B - GOODWILL AND INTANGIBLE ASSETS

Goodwill: The change in the carrying amount of goodwill for the nine months ended July 28, 2024, is:
In thousands
RetailFoodserviceInternationalTotal
Balance at October 29, 2023
$2,916,796 $1,750,594 $261,074 $4,928,464 
Foreign Currency Translation— — (4,733)(4,733)
Balance at July 28, 2024
$2,916,796 $1,750,594 $256,341 $4,923,731 

Intangible Assets: The carrying amounts for indefinite-lived intangible assets are:
In thousands
July 28, 2024October 29, 2023
Brands/Trade Names/Trademarks
$1,636,807 $1,636,807 
Other Intangibles184 184 
Foreign Currency Translation(6,893)(5,893)
Total Indefinite-lived Intangible Assets
$1,630,099 $1,631,098 

The gross carrying amount and accumulated amortization for definite-lived intangible assets are:
 July 28, 2024October 29, 2023
In thousands
Gross Carrying
Amount		Accumulated
Amortization		Gross Carrying
Amount		Accumulated
Amortization
Customer Lists/Relationships$168,239 $(90,951)$168,239 $(82,658)
Other Intangibles59,241 (19,045)59,241 (15,857)
Trade Names/Trademarks
6,210 (5,687)6,540 (5,089)
Foreign Currency Translation— (4,492)— (4,344)
Total Definite-lived Intangible Assets
$233,690 $(120,174)$234,020 $(107,947)

Amortization expense on intangible assets is as follows:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Amortization Expense$3,968 $4,605 $12,409 $13,806 

Estimated annual amortization expense on intangible assets for the five fiscal years after October 29, 2023, is as follows:
In thousands
Amortization
Expense
2024$16,381 
202514,681 
202614,210 
202713,940 
202813,009 



10
NOTE C - INVESTMENTS IN AFFILIATES

Equity in Earnings of Affiliates consists of:
 Quarter EndedNine Months Ended
In thousands
% OwnedJuly 28, 2024July 30, 2023July 28, 2024July 30, 2023
MegaMex Foods, LLC(1)
50%$3,066 $8,099 $19,444 $34,712 
Other Equity Method Investments(2)
Various (20-50%)
4,912 1,685 19,806 7,501 
Total Equity in Earnings of Affiliates
$7,977 $9,784 $39,250 $42,213 
(1)    MegaMex Foods, LLC is reflected in the Retail segment.
(2)    Other Equity Method Investments are primarily reflected in the International segment but also include corporate venturing investments.

Distributions received from equity method investees consists of:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Dividends$7,266 $14,509 $32,997 $28,160 

On December 15, 2022, the Company purchased from various minority shareholders a 29% common stock interest in PT Garudafood Putra Putri Jaya Tbk (Garudafood), a food and beverage company in Indonesia. On April 12, 2023, the Company purchased additional shares increasing the ownership interest to 30%. This investment expanded the Company’s presence in Southeast Asia to support the global execution of the entertaining and snacking strategy. The Company has the ability to exercise significant influence, but not control, over Garudafood; therefore, the investment is accounted for under the equity method.

The Company obtained its Garudafood interest for a purchase price of $425.8 million, including associated transaction costs. The transaction was funded using the Company’s cash on hand. Based on a third-party valuation, the Company’s basis difference between the fair value of the investment and proportionate share of the carrying value of Garudafood’s net assets is $324.8 million. The basis difference related to inventory, property, plant and equipment, and certain intangible assets is being amortized through Equity in Earnings of Affiliates over the associated useful lives. As of July 28, 2024, the remaining basis difference was $304.1 million, which includes the impact of foreign currency translation. Based on quoted market prices, the fair value of the common stock held in Garudafood was $258.4 million as of July 26, 2024.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $8.7 million was remaining as of July 28, 2024. This difference is being amortized through Equity in Earnings of Affiliates.


NOTE D - INVENTORIES

Principal components of inventories are:
In thousands
July 28, 2024October 29, 2023
Finished Products$936,454 $954,432 
Raw Materials and Work-in-Process447,098 448,535 
Operating Supplies148,341 168,289 
Maintenance Materials and Parts117,755 109,151 
Total Inventories
$1,649,649 $1,680,406 


NOTE E - DERIVATIVES AND HEDGING

The Company uses hedging programs to manage risk associated with various commodity purchases and interest rates. These programs utilize futures, swaps, and options contracts to manage the Company’s exposure to market fluctuations. The Company has determined its designated hedging programs to be highly effective in offsetting the changes in fair value or cash flows generated by the items hedged. Effectiveness testing is performed on a quarterly basis to ascertain a high level of effectiveness for cash flow and fair value hedging programs. If the requirements of hedge accounting are no longer met, hedge accounting is discontinued immediately and any future changes to fair value are recorded directly through earnings.


11
Cash Flow Commodity Hedges: The Company uses futures, swaps, and options contracts to offset price fluctuations in the Company’s future purchases of grain, lean hogs, natural gas, and diesel fuel. These contracts are designated as cash flow hedges; therefore, 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 periods in which the hedged transactions affect earnings. The Company typically does not hedge its grain, natural gas, or diesel fuel exposure beyond the next two upcoming fiscal years and its lean hog exposure beyond the next fiscal year.

Fair Value Commodity Hedges: The Company designates the futures it uses to minimize the price risk assumed when fixed forward priced contracts are offered to the Company’s lean hog and grain suppliers as fair value hedges. The programs are intended to make the forward priced commodities cost nearly the same as cash market purchases at the date of delivery. Changes in the fair value of the futures contracts and the gain or loss on the hedged purchase commitment are marked-to-market through earnings and recorded on the Consolidated Statements of Financial Position as a Current Asset and Current Liability, respectively. Gains or losses related to these fair value hedges are recognized through Cost of Products Sold in the periods in which the hedged transactions affect earnings.

Cash Flow Interest Rate Hedges: In the second quarter of fiscal 2021, the Company designated two separate interest rate locks as cash flow hedges to manage interest rate risk associated with the anticipated debt transactions required to fund the acquisition of the Planters® snack nuts business. The total notional amount of the Company’s locks was $1.25 billion. In the third quarter of fiscal 2021, the associated unsecured senior notes were issued with a tenor of seven and thirty years and both locks were lifted (See Note J - Long-Term Debt and Other Borrowing Arrangements). Mark-to-market gains and losses on these instruments were deferred as a component of AOCL. The resulting gain in AOCL is reclassified to Interest Expense in the period in which the hedged transactions affect earnings.

Fair Value Interest Rate Hedge: In the first quarter of fiscal 2022, the Company entered into an interest rate swap to protect against changes in the fair value of a portion of previously issued senior unsecured notes attributable to the change in the benchmark interest rate. The hedge specifically designated the last $450 million of the notes due June 2024 (the 2024 Notes). The Company terminated the swap in the fourth quarter of fiscal 2022. The loss related to the swap was recorded as a fair value hedging adjustment to the hedged debt and was amortized through earnings over the remaining life of the debt. In the third quarter of fiscal 2024, the fair value hedging adjustment was completely amortized to correspond with the payment of the 2024 Notes upon maturity.

Other Derivatives: The Company holds certain futures and swap contracts to manage the Company’s exposure to fluctuations in grain and pork commodity markets. The Company has not applied hedge accounting to these positions. Activity related to derivatives not designated as hedges was immaterial to the consolidated financial statements during the quarter and nine months ended July 28, 2024, and July 30, 2023.

Volume: The Company’s outstanding contracts related to its commodity hedging programs include:
In millions
July 28, 2024October 29, 2023
Corn27.6 
bushels
30.7 
bushels
Lean Hogs186.3 
pounds
144.2 
pounds
Natural Gas3.5 
MMBtu
3.0 
MMBtu
Diesel Fuel
0.9 
gallons
— 
gallons

Fair Value of Derivatives: The gross fair values of the Company’s derivative instruments designated as hedges are:
In thousands
Location on Consolidated Statements of Financial Position
July 28, 2024October 29, 2023
Commodity Contracts(1)
Other Current Assets$(18,987)$(13,233)
(1)    Amounts represent the gross fair value of commodity derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its commodity hedging programs, including cash collateral, when a master netting arrangement exists between the Company and the counterparty to the derivative contract. The amount or timing of cash collateral balances may impact the classification of the commodity derivative on the Consolidated Statements of Financial Position. The gross liability position as of July 28, 2024 was offset by the right to reclaim net cash collateral of $29.3 million contained within the master netting arrangement. The gross liability position as of October 29, 2023 was offset by the right to reclaim net cash collateral of $32.2 million. See Note H - Fair Value Measurements for a discussion of these net amounts as reported on the Consolidated Statements of Financial Position.


12
Fair Value Hedge - Assets (Liabilities): The carrying amount of the Company’s fair value hedged assets (liabilities) are:
In thousands
Location on Consolidated Statements of Financial Position
July 28, 2024October 29, 2023
Commodity Contracts
Accounts Payable(1)
$(4,160)$(4,914)
Interest Rate Contracts
Current Maturities of Long-term Debt(2)
— (442,549)
(1)    Represents the carrying amount of fair value hedged assets and liabilities, which are offset by other assets included in master netting arrangements described above.
(2)    Represents the carrying amount of the hedged portion of the 2024 Notes. The 2024 Notes were paid on June 3, 2024, and there was no cumulative fair value hedging adjustment from discontinued hedges.

Accumulated Other Comprehensive Loss Impact: As of July 28, 2024, the Company included in AOCL hedging losses (before tax) of $25.5 million on commodity contracts and gains (before tax) of $11.7 million related to interest rate settled positions. The Company expects to recognize the majority of the losses on commodity contracts over the next twelve months. Gains on interest rate contracts offset the hedged interest payments over the tenor of the associated debt instruments.

The effect on AOCL for gains or losses (before tax) related to the Company’s derivative instruments are:
 
Gain/(Loss)
Recognized
 in AOCL(1)
Gain/(Loss)
Reclassified from
AOCL into Earnings(1)
Location on
Consolidated
Statements
of Operations
 Quarter EndedQuarter Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Cash Flow Hedges
Commodity Contracts$(26,172)$(2,600)$(1,541)$(5,758)Cost of Products Sold
Excluded Component(2)
299 423 — — 
Interest Rate Contracts
— — 247 247 Interest Expense
Gain/(Loss)
Recognized
 in AOCL(1)
Gain/(Loss)
Reclassified from
AOCL into Earnings(1)
Location on
Consolidated
Statements
of Operations
Nine Months EndedNine Months Ended
in thousandsJuly 28, 2024July 30, 2023July 28, 2024July 30, 2023
Cash Flow Hedges
Commodity Contracts$(24,487)$(34,151)$(21,297)$5,833 Cost of Products Sold
Excluded Component(2)
2,112 (268)— — 
Interest Rate Contracts
— — 741 741 Interest Expense
(1)    See Note G - Accumulated Other Comprehensive Loss for the after-tax impact of these gains or losses on Net Earnings.
(2)    Represents the time value of commodity options excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in AOCL.


13
Consolidated Statements of Operations Impact: The effect on the Consolidated Statements of Operations for gains or losses (before tax) related to the Company’s derivative instruments are:
Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Earnings Attributable to Hormel Foods Corporation$176,701 $162,679 $584,842 $597,637 
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL(1,541)(5,758)(21,297)5,833 
Amortization of Excluded Component from Options(472)(1,531)(2,478)(4,441)
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures(1)
1,139 1,019 5,766 (440)
Total Gain (Loss) on Commodity Contracts(2)
(874)(6,271)(18,008)952 
Cash Flow Hedges - Interest Rate Contracts
Gain (Loss) Reclassified from AOCL247 247 741 741 
Fair Value Hedge - Interest Rate Contracts
Amortization of Loss Due to Discontinuance of Fair Value Hedge(3)
(1,202)(3,125)(7,451)(9,374)
Total Gain (Loss) on Interest Rate Contracts(4)
(955)(2,878)(6,710)(8,633)
Total Gain (Loss) Recognized in Earnings$(1,828)$(9,148)$(24,718)$(7,681)

(1)    Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and nine months ended July 28, 2024, and July 30, 2023, which were offset by a corresponding gain or loss on the underlying hedged purchase commitment. Additional gains or losses related to changes in the fair value of open commodity contracts, along with the offsetting gain or loss on the hedged purchase commitment, are also marked-to-market through earnings with no impact on a net basis.
(2)    Total Gain (Loss) on Commodity Contracts is recognized in earnings through Cost of Products Sold.
(3)    Represents the fair value hedging adjustment amortized through earnings.
(4)    Total Gain (Loss) on Interest Rate Contracts is recognized in earnings through Interest Expense.


NOTE F - PENSION AND OTHER POST-RETIREMENT BENEFITS

Net periodic cost for pension and other post-retirement benefit plans consists of:
 Pension Benefits
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Service Cost$9,033 $8,902 $27,108 $26,705 
Interest Cost18,336 17,157 55,008 51,472 
Expected Return on Plan Assets(19,377)(19,571)(58,132)(58,714)
Amortization of Prior Service Cost(221)(461)(664)(1,383)
Recognized Actuarial (Gain) Loss3,317 3,325 9,951 9,976 
Net Periodic Cost
$11,086 $9,353 $33,270 $28,058 


14
 Post-retirement Benefits
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Service Cost$41 $62 $123 $185 
Interest Cost2,895 3,016 8,687 9,044 
Amortization of Prior Service Cost2 2 6 6 
Recognized Actuarial (Gain) Loss(317)(7)(952)(21)
Net Periodic Cost
$2,621 $3,073 $7,864 $9,214 

Non-service cost components of net pension and post-retirement benefit cost are presented within Interest and Investment Income in the Consolidated Statements of Operations.


NOTE G - ACCUMULATED OTHER COMPREHENSIVE LOSS

Components of Accumulated Other Comprehensive Loss are as follows:
In thousands
Foreign
Currency
Translation		Pension &
Other
Benefits
Derivatives &
Hedging
Equity
Method
Investments		Accumulated
Other
Comprehensive
Loss
Balance at April 28, 2024$(93,937)$(179,795)$8,121 $3,286 $(262,325)
Unrecognized Gains (Losses)— — 
Gross(28,685)(90)(25,873)(5,079)(59,726)
Tax Effect— — 6,286 — 6,286 
Reclassification into Net Earnings— — — — 
Gross— 2,781 
(1)
1,294 
(2)
(1,691)
(3)
2,383 
Tax Effect— (683)(308)— (991)
Change Net of Tax(28,685)2,008 (18,601)(6,770)(52,048)
Balance at July 28, 2024
$(122,621)$(177,788)$(10,481)$(3,484)$(314,373)
Balance at October 29, 2023
$(86,022)$(183,993)$(9,084)$6,847 $(272,252)
Unrecognized Gains (Losses)
Gross(36,599)(87)(22,375)(5,113)(64,174)
Tax Effect— — 5,417 — 5,417 
Reclassification into Net Earnings
Gross— 8,341 
(1)
20,555 
(2)
(5,217)
(3)
23,679 
Tax Effect— (2,049)(4,994)— (7,043)
Change Net of Tax(36,599)6,205 (1,397)(10,330)(42,121)
Balance at July 28, 2024
$(122,621)$(177,788)$(10,481)$(3,484)$(314,373)

(1)    Included in computation of net periodic cost. See Note F - Pension and Other Post-Retirement Benefits for additional information.
(2)    Included in Cost of Products Sold and Interest Expense in the Consolidated Statements of Operations. See Note E - Derivatives and Hedging for additional information.
(3)    Included in Equity in Earnings of Affiliates in the Consolidated Statements of Operations.


NOTE H - FAIR VALUE MEASUREMENTS

Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of the three levels below based on the inputs used in the valuation.

Level 1: Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities.


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Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.

Level 3: Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.

The Company’s financial assets and liabilities carried at fair value on a recurring basis and their level within the fair value hierarchy are presented in the tables below.
 Fair Value Measurements at July 28, 2024
In thousands
Total Fair
Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents(1)
$537,476 $537,008 $468 $— 
Short-term Marketable Securities(2)
24,454 4,970 19,484 — 
Other Trading Securities(3)
206,980 — 206,980 — 
Commodity Derivatives(4)
7,067 9,298 (2,231)— 
Total Assets at Fair Value$775,976 $551,276 $224,700 $— 
Liabilities at Fair Value
Deferred Compensation(3)
$61,425 $— $61,425 $— 
Total Liabilities at Fair Value$61,425 $— $61,425 $— 

 Fair Value Measurements at October 29, 2023
In thousands
Total Fair
Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents(1)
$736,532 $735,387 $1,145 $— 
Short-term Marketable Securities(2)
16,664 2,499 14,164 — 
Other Trading Securities(3)
188,162 — 188,162 — 
Commodity Derivatives(4)
9,330 9,603 (273)— 
Total Assets at Fair Value$950,688 $747,489 $203,199 $— 
Liabilities at Fair Value
Deferred Compensation(3)
$55,222 $— $55,222 $— 
Total Liabilities at Fair Value$55,222 $— $55,222 $— 

The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above:

(1)    The Company’s cash equivalents considered Level 1 consist primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts, and have a maturity date of three months or less. Cash equivalents considered Level 2 are funds holding agency bonds or securities recognized at amortized cost.

(2)    The Company holds securities as part of a portfolio maintained to generate investment income and to provide cash for operations of the Company, if necessary. The portfolio is managed by a third party who is responsible for daily trading activities, and all assets within the portfolio are highly liquid. The cash, U.S. government securities, and money market funds rated AAA held by the portfolio are classified as Level 1. The current investment portfolio also includes corporate bonds and other asset backed securities for which there is an active, quoted market. Market prices are obtained from a variety of industry providers, large financial institutions, and other third-party sources to calculate a representative daily market value, and therefore, these securities are classified as Level 2.

(3)    The Company maintains a rabbi trust to fund certain supplemental executive retirement plans and deferred compensation plans. The majority of the funds held in the rabbi trust relate to supplemental executive retirement plans and have been invested primarily in fixed income funds managed by a third party. The declared rate on these funds is set based on a formula using the yield of the general account investment portfolio supporting the fund, as adjusted for expenses and other charges. The rate is guaranteed for one year at issue and may

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be reset annually on the policy anniversary, subject to a guaranteed minimum rate. As the value is based on adjusted market rates and the fixed rate is only reset on an annual basis, these funds are classified as Level 2.

Under the Company’s deferred compensation plans, participants can defer certain types of compensation and elect to receive a return based on the changes in fair value of various investment options, which include equity securities, money market accounts, bond funds, or other portfolios for which there is an active quoted market. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based on a specified percent of the U.S. Internal Revenue Service (IRS) applicable federal rates. These liabilities are classified as Level 2. The Company maintains funding in the rabbi trust generally mirroring the selections within the deferred compensation plans. These funds are managed by a third-party insurance policy, the values of which represent their cash surrender value based on the fair value of the underlying investments in the account. These policies are classified as Level 2.

The rabbi trust is included in Other Assets and deferred compensation liabilities in Other Long-term Liabilities on the Consolidated Statements of Financial Position. Securities held by the rabbi trust are classified as trading securities. Unrealized gains and losses associated with these investments are included in the Company’s earnings. During the quarter and nine months ended July 28, 2024, securities held by the rabbi trust generated gains of $4.9 million, and $18.8 million, respectively, compared to gains of $5.1 million and $12.1 million for the quarter and nine months ended July 30, 2023, respectively.

(4)    The Company’s commodity derivatives represent futures, swaps, and options contracts used in its hedging or other programs to offset price fluctuations associated with purchases of corn, natural gas, diesel fuel, hogs, and pork, and to minimize the price risk assumed when forward priced contracts are offered to the Company’s commodity suppliers. The Company’s futures and options contracts for corn are traded on the Chicago Board of Trade, while futures contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available, and these contracts are classified as Level 1. The Company holds natural gas, diesel fuel, and pork swap contracts that are over-the-counter instruments classified as Level 2. The value of the natural gas and diesel fuel swap contracts is calculated using quoted prices from the New York Mercantile Exchange, and the value of the pork swap contracts are calculated using a futures implied USDA estimated pork cut-out value. All derivatives are reviewed for potential credit risk and risk of nonperformance. The net balance for commodity derivatives is included in Other Current Assets or Accounts Payable, as appropriate, on the Consolidated Statements of Financial Position. As of July 28, 2024, the Company had recognized the right to reclaim net cash collateral of $29.3 million from various counterparties (including cash of $37.7 million less $8.4 million of realized loss). As of October 29, 2023, the Company had recognized the right to reclaim net cash collateral of $32.2 million from various counterparties (including cash of $42.6 million less $10.4 million of realized loss).

The Company’s financial assets and liabilities include accounts receivable, accounts payable, and other liabilities, for which carrying value approximates fair value. The Company does not carry its long-term debt at fair value on the Consolidated Statements of Financial Position. The fair value of long-term debt, utilizing discounted cash flows (Level 2), was $2.4 billion as of July 28, 2024, and $2.7 billion as of October 29, 2023. See Note J - Long-Term Debt and Other Borrowing Arrangements for additional information.

The Company measures certain nonfinancial assets and liabilities at fair value, which are recognized or disclosed on a nonrecurring basis (e.g., goodwill, intangible assets, and property, plant, and equipment). There were no material remeasurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the quarter and nine months ended July 28, 2024, and July 30, 2023.


NOTE I - COMMITMENTS AND CONTINGENCIES

Except as described below, there were no material changes outside the ordinary course of business during the quarter and nine months ended July 28, 2024, to the contractual obligations and other commitments last disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2023.

Legal Proceedings: The Company is a party to various legal proceedings related to the ongoing operation of its business, including claims both by and against the Company. At any time, such proceedings typically involve claims related to product liability, labeling, contracts, antitrust regulations, intellectual property, competition laws, employment practices, or other actions brought by employees, customers, consumers, competitors, or suppliers. The Company establishes accruals for its potential exposure, as appropriate, for claims against the Company when losses become probable and reasonably estimable. However, future developments or settlements are uncertain and may require the Company to change such accruals as proceedings progress. Resolution of any currently known matter, either individually or in the aggregate, is not expected to have a material effect on the Company’s financial condition, results of operations, or liquidity.

Pork Antitrust Litigation
Beginning in June 2018, a series of putative class action complaints were filed against the Company, as well as several other pork-processing companies and a benchmarking service called Agri Stats, in the U.S. District Court for the District of Minnesota styled In re Pork Antitrust Litigation (the Pork Antitrust Litigation). Class Plaintiffs consist of Direct Purchaser Plaintiffs, Commercial and Institutional Indirect Purchaser Plaintiffs, and Consumer Indirect Purchaser Plaintiffs. The Class Plaintiffs allege, among other things, that beginning in January 2009, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork and pork products—including through the use of Agri Stats—in violation of federal antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under

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various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. Since the original filing, certain Non-Class Direct-Action Plaintiffs including the Offices of the Attorney General in New Mexico and Alaska, have opted out of class treatment and are proceeding with individual direct actions making similar claims, and others may do so in the future.

Although the Company strongly denies liability, continues to deny the allegations asserted by the Class Plaintiffs, and believes it has valid defenses, to avoid the uncertainty, risk, expense, and distraction of continued litigation involving the Class Plaintiffs, the Company executed settlement agreements providing for payments by the Company to the Direct Purchaser Plaintiffs of $4.9 million, the Commercial and Institutional Indirect Purchaser Plaintiffs of $2.4 million, and the Consumer Indirect Purchaser Plaintiffs of $4.5 million. The settlement amounts were recorded in Selling, General, and Administrative in the Consolidated Statements of Operations in the second quarter of fiscal 2024. Payments totaling $7.3 million were made in the third quarter of fiscal 2024, and $4.5 million is reflected within Accrued Expenses on the Consolidated Statements of Financial Position for the third quarter of fiscal 2024. The $4.5 million settlement amount was paid in August 2024, subsequent to the end of the third quarter.

The Company continues to defend against the claims of the Non-Class Direct-Action Plaintiffs. The Company has not recorded any liability for the non-class matters as it does not believe a loss is probable, and it cannot reasonably estimate any reasonably possible loss as the Company believes that it has valid and meritorious defenses against the allegations.

Turkey Antitrust Litigation
Beginning in December 2019, a series of putative class action complaints were filed against the Company, as well as several other turkey-processing companies and a benchmarking service called Agri Stats, in the U.S. District Court for the Northern District of Illinois styled In re Turkey Antitrust Litigation. The plaintiffs allege, among other things, that from at least 2010 to 2017, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of turkey products—including through the use of Agri Stats—in violation of federal antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. Since the original filing, certain direct-action plaintiffs have opted out of class treatment and are proceeding with individual direct actions making similar claims, and others may do so in the future. The Company has not recorded any liability for these matters as it does not believe a loss is probable, and it cannot reasonably estimate any reasonably possible loss as the Company believes that it has valid and meritorious defenses against the allegations.

Poultry Wages Antitrust Litigation
In December 2019, a putative class of non-supervisory production and maintenance employees at poultry-processing plants in the continental U.S. filed an amended consolidated class action complaint against Jennie-O Turkey Store, Inc. and various other poultry processing companies in the U.S. District Court for the District of Maryland styled Jien, et al. v. Perdue Farms, Inc., et al. (the Poultry Wages Antitrust Litigation). In the operative amended complaint filed in February 2022, the plaintiffs allege that, since 2000, the defendants directly and through wage surveys and a benchmarking service exchanged information regarding compensation in an effort to depress and fix wages and benefits for employees at poultry-processing plants, feed mills, and hatcheries in violation of federal antitrust laws. The complaint sought, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief. In July 2022, the Court partially granted the Company’s motion to dismiss, and dismissed plaintiffs’ per se wage-fixing claim as to the Company.

Although the Company strongly denies liability, continues to deny the allegations asserted by the plaintiffs, and believes it has valid defenses, to avoid the uncertainty, risk, expense, and distraction of continued litigation, the Company executed a settlement agreement with the plaintiffs on August 20, 2024, to settle this matter for the payment of $3.5 million. The settlement remains subject to Court approval. The Company recorded the agreed-upon settlement amount in Selling, General, and Administrative in the Consolidated Statements of Operations and in Accrued Expenses on the Consolidated Statements of Financial Position for the third quarter of fiscal 2024. The agreed-upon settlement amount will be paid following preliminary Court approval.

Red Meat Wages Antitrust Litigation
In November 2022, a putative class of non-supervisory production and maintenance employees at “red meat” processing plants in the continental U.S. filed a class action complaint against the Company and various other beef- and pork-processing companies in the U.S. District Court for the District of Colorado styled Brown, et al. v. JBS USA Food Co., et al. (the Red Meat Wages Antitrust Litigation). In the operative amended complaint filed in January 2024, the plaintiffs allege that, since 2000, the defendants directly and through wage surveys and a benchmarking service exchanged information regarding compensation in an effort to depress and fix wages and benefits for employees at beef- and pork-processing plants in violation of federal antitrust laws. The complaint sought, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief.

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Although the Company strongly denies liability, continues to deny the allegations asserted by the plaintiffs, and believes it has valid defenses, to avoid the uncertainty, risk, expense, and distraction of continued litigation, the Company executed a settlement agreement with the plaintiffs on August 20, 2024, to settle this matter for the payment of $13.5 million and the provision of certain data and information. The settlement remains subject to Court approval. The Company recorded the agreed-upon settlement amount in Selling, General, and Administrative in the Consolidated Statements of Operations and in Accrued Expenses on the Consolidated Statements of Financial Position for the third quarter of fiscal 2024. The agreed-upon settlement amount will be paid following preliminary Court approval.


NOTE J - LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS
Long-term Debt consists of:
In thousands
July 28, 2024October 29, 2023
Senior Unsecured Notes, with Interest at 3.050%
Interest Due Semi-annually through June 2051 Maturity Date
$600,000 $600,000 
Senior Unsecured Notes, with Interest at 1.800%
Interest Due Semi-annually through June 2030 Maturity Date
1,000,000 1,000,000 
Senior Unsecured Notes, with Interest at 1.700%
Interest Due Semi-annually through June 2028 Maturity Date
750,000 750,000 
Senior Unsecured Notes, with Interest at 4.800%
Interest Due Semi-annually through March 2027 Maturity Date
500,000 — 
Senior Unsecured Notes, with Interest at 0.650%
Interest Due Semi-annually through June 2024 Maturity Date
— 950,000 
Unamortized Discount on Senior Notes(6,897)(7,016)
Unamortized Debt Issuance Costs(16,341)(16,278)
Interest Rate Swap Liabilities(1)
— (7,451)
Finance Lease Liabilities29,600 36,085 
Other Financing Arrangements3,490 3,908 
Total2,859,853 3,309,247 
Less: Current Maturities of Long-term Debt8,232 950,529 
Long-term Debt Less Current Maturities$2,851,621 $2,358,719 
(1)    See Note E - Derivatives and Hedging for additional information.

Senior Unsecured Notes: On March 8, 2024, the Company issued senior notes in an aggregate principal amount of $500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800% per annum. Interest accrues on the notes from March 8, 2024, and is payable semi-annually in arrears on March 30 and September 30 of each year, commencing September 30, 2024. The notes may be redeemed in whole or in part at any time at the applicable redemption prices. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

On June 3, 2021, the Company issued $950.0 million aggregate principal amount of its 0.650% notes due June 2024 (2024 Notes), $750.0 million aggregate principal amount of its 1.700% notes due June 2028 (2028 Notes), and $600.0 million aggregate principal amount of its 3.050% notes due June 2051 (2051 Notes). The notes may be redeemed in whole or in part at any time at the applicable redemption price. Interest accrues per annum at the stated rates and is paid semi-annually in arrears on June 3 and December 3 of each year, commencing December 3, 2021. Interest rate risk was hedged utilizing interest rate locks on the 2028 Notes and 2051 Notes. The Company lifted the hedges in conjunction with the issuance of these notes. See Note E - Derivatives and Hedging for additional information. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The Company repaid the $950.0 million 2024 Notes upon maturity on June 3, 2024.

On June 11, 2020, the Company issued senior notes in an aggregate principal amount of $1.0 billion due June 2030. The notes bear interest at a fixed rate of 1.800% per annum, with interest paid semi-annually in arrears on June 11 and December 11 of each year, commencing December 11, 2020. The notes may be redeemed in whole or in part at any time at the applicable redemption prices. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

Unsecured Revolving Credit Facility: On May 6, 2021, the Company entered into an unsecured revolving credit agreement with Wells Fargo Bank, National Association as administrative agent, swingline lender and issuing lender, U.S. Bank National Association, JPMorgan Chase Bank, N.A. and BofA Securities, Inc. as syndication agents and the lenders party thereto. The

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revolving credit agreement provides for an unsecured revolving credit facility with an aggregate principal commitment amount at any time outstanding of up to $750.0 million with an uncommitted increase option of an additional $375.0 million upon the satisfaction of certain conditions.

On April 17, 2023, the Company entered into a first amendment (Amendment) to the Company’s $750.0 million unsecured revolving credit agreement. The Amendment provided for, among other things (i) the replacement of London Interbank Offered Rate (LIBOR) with Term Secured Overnight Financing Rate (SOFR) and Daily Simple Singapore Overnight Rate Average (SORA) for the Eurocurrency Rate for U.S. Dollars and Singapore Dollars, including applicable credit spread adjustments and relevant SOFR benchmark provisions, (ii) permitting two one-year extension options to be exercised at any anniversary, (iii) removing the change in debt ratings notice requirement, (iv) shortening the notice period requirements for Base Rate Loans to allow for same day notice, and (v) increasing the number of permitted Interest Periods from 8 to 15.

The unsecured revolving line of credit bears interest, at the Company’s election, at either a Base Rate plus margin of 0.0% to 0.150% or the Adjusted Term SOFR, Adjusted Daily Simple Risk-Free Rate (RFR) or Eurocurrency Rate plus margin of 0.575% to 1.150%. A variable fee of 0.050% to 0.100% is paid for the availability of this credit line. Extensions of credit under the facility may be made in the form of revolving loans, swingline loans, and letters of credit. The lending commitments under the agreement are scheduled to expire on May 6, 2026, at which time the Company will be required to pay in full all obligations then outstanding. As of July 28, 2024, and October 29, 2023, the Company had no outstanding draws from this facility.

Debt Covenants: The Company is required by certain covenants in its debt agreements to maintain specified levels of financial ratios and financial position. As of July 28, 2024, the Company was in compliance with all covenants.


NOTE K - INCOME TAXES

The Company’s tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events that may occur during the quarter. The effects of tax legislation are recognized in the period in which the law is enacted. The deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years the related temporary differences are anticipated to reverse.

The Company’s effective tax rate for the quarter and nine months ended July 28, 2024, was 21.7% and 22.6%, respectively, compared to 21.7% and 22.2%, respectively, for the corresponding periods a year ago. The Company benefited from the purchase of federal transferable energy credits in the third quarter of fiscal 2024. The Company benefited from the impact of higher federal deductions in the third quarter of fiscal 2023.

Unrecognized tax benefits, including interest and penalties, are recorded in Other Long-term Liabilities. If recognized as of July 28, 2024, these benefits would impact the Company’s effective tax rate by $17.2 million compared to $19.6 million as of July 30, 2023. The Company includes accrued interest and penalties related to uncertain tax positions in Provision for Income Taxes, with immaterial losses included during the quarter ended July 28, 2024, and July 30, 2023. The amount of accrued interest and penalties associated with unrecognized tax benefits was $2.7 million at July 28, 2024, and $3.2 million at July 30, 2023.

The Company is regularly audited by federal and state taxing authorities. The IRS concluded its examination of fiscal 2021 in the second quarter of fiscal 2023. The IRS placed the Company in the Bridge phase of the Compliance Assurance Process (CAP) for fiscal years 2020 and 2023. In this phase, the IRS will not accept any disclosures, conduct any reviews, or provide any assurances. The Company has elected to participate in CAP for fiscal years through 2025. The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time.

The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2015. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change based on the status of the examinations, as of July 28, 2024, it was not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.



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NOTE L - EARNINGS PER SHARE DATA
 
The reported net earnings attributable to the Company were used when computing basic and diluted earnings per share. Diluted earnings per share was calculated using the treasury stock method. The shares used as the denominator for those computations are as follows:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Basic Weighted-average Shares Outstanding
548,685 546,358 547,858 546,389 
Dilutive Potential Common Shares581 2,279 766 2,838 
Diluted Weighted-average Shares Outstanding
549,266 548,637 548,624 549,227 
Antidilutive Potential Common Shares17,560 7,589 17,888 5,998 


NOTE M - SEGMENT REPORTING

The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following three segments: Retail, Foodservice, and International, which is consistent with how the Company’s chief operating decision maker (CODM) assesses performance and allocates resources.

The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in the retail market. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.

The Foodservice segment consists primarily of the processing, marketing, and sale of food and nutritional products for foodservice, convenience store, and commercial customers.

The International segment processes, markets, and sells Company products internationally. This segment also includes the results from the Company’s international joint ventures, international equity method investments, and international royalty arrangements.

Financial measures for each of the Company’s reportable segments are set forth below. Intersegment sales are eliminated in consolidation and are not reviewed when evaluating segment performance. The Company does not allocate deferred compensation, non-recurring expenses associated with the transform and modernize initiative, investment income, interest expense, or interest income to its segments when measuring performance. The Company also retains various other income and expense items at the corporate level. Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing investments and noncontrolling interests are excluded. These items are included below as Net Unallocated Expense and Noncontrolling Interest when reconciling to Earnings Before Income Taxes.

The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the profit and other financial information shown below.

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 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Sales  
Retail$1,767,251 $1,891,746 $5,467,078 $5,765,786 
Foodservice954,021 890,949 2,799,110 2,607,140 
International177,171 180,605 516,517 539,005 
Total Net Sales$2,898,443 $2,963,299 $8,782,706 $8,911,930 
Segment Profit
Retail$127,932 $151,128 $409,836 $459,031 
Foodservice142,487 146,270 441,952 428,110 
International21,792 12,222 65,026 45,723 
Total Segment Profit292,211 309,619 916,814 932,863 
Net Unallocated Expense66,526 101,886 161,239 164,997 
Noncontrolling Interest34 (108)(170)(200)
Earnings Before Income Taxes$225,719 $207,626 $755,404 $767,666 

The Company’s products primarily consist of meat and other food products. Total revenue contributed by classes of similar products are: 
Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Perishable$2,115,087 $2,068,787 $6,251,076 $6,222,485 
Shelf-stable783,356 894,512 2,531,630 2,689,445 
Total Net Sales$2,898,443 $2,963,299 $8,782,706 $8,911,930 

Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration. Shelf-stable includes canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and other items that do not require refrigeration.


Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Overview

The Company is a global manufacturer and marketer of branded food products. The Company’s three reportable segments, Retail, Foodservice, and International, are described in Note M - Segment Reporting in the Notes to the Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

The Company reported diluted net earnings per share of $0.32 for the third quarter of fiscal 2024, up 7 percent compared to the same period last year. Adjusted diluted net earnings per share(1) was $0.37. Significant factors impacting the quarter are listed below. All comparisons are to the same period of the prior year unless otherwise noted.

•Net sales for the third quarter decreased 2 percent. The benefit from higher volume and net sales in the Foodservice segment was more than offset by lower volume and net sales in the Retail and International segments.
•Segment profit for the third quarter decreased 6 percent. Improved results in the International segment were more than offset by declines in profit for each of the Retail and Foodservice segments.
•Earnings before income taxes for the third quarter increased 9 percent, as the impact of lower net sales was more than offset by lower selling, general, and administrative (SG&A) expenses compared to the prior period, which included an unfavorable arbitration ruling. Adjusted earnings before income taxes(1) decreased 8 percent.
•Retail segment profit declined in the current quarter as the benefit from lower logistics expenses and savings from the transform and modernize initiative were more than offset by the impact of lower net sales.

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•Foodservice segment profit decreased in the current quarter, as higher sales were more than offset by higher SG&A expenses.
•International segment profit increased significantly in the current quarter, driven by improved export margins, growth from the Company’s investments in the Philippines and Indonesia, and favorable costs in China.
•The pre-tax impact of expenses related to the Company’s transform and modernize initiative and antitrust litigation settlements in the third quarter of fiscal 2024 was $30.5 million, most of which was recorded in SG&A expense. The pre-tax impact of expenses related to the Company's arbitration ruling in the third quarter of fiscal 2023 was $70.0 million, all of which was recorded in SG&A expense.
•Year-to-date cash flow from operations was $858 million, an increase of 18 percent compared to the prior year.
•Subsequent to the end of the quarter, storms in the Midwest U.S. caused roof and other damage at the Company’s Papillion, Nebraska, manufacturing facility. The Company is assessing the financial impact for the fourth quarter of fiscal year 2024.


Consolidated Results

Volume, Net Sales, Earnings, and Diluted Earnings Per Share
 Quarter EndedNine Months Ended
In thousands, except per share amounts
July 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023%
Change
Volume (lbs.)1,018,690 1,094,518 (6.9)3,180,087 3,256,292 (2.3)
Net Sales$2,898,443 $2,963,299 (2.2)$8,782,706 $8,911,930 (1.5)
Earnings Before Income Taxes225,719 207,626 8.7 755,404 767,666 (1.6)
Net Earnings Attributable to Hormel Foods Corporation
176,701 162,679 8.6 584,842 597,637 (2.1)
Diluted Earnings Per Share0.32 0.30 6.7 1.07 1.09 (1.8)
Adjusted Diluted Earnings Per Share (1)
0.37 0.40 (7.5)1.16 1.19 (2.5)
(1)    See the “Non-GAAP Measures” section below for a description of the Company’s use of measures not defined by United States Generally Accepted Accounting Principles (GAAP).

Net Sales
Net sales for the third quarter of fiscal 2024 decreased as the benefit from higher volume and net sales in the Foodservice segment was more than offset by lower volume and net sales in each of the Retail and International segments. In the Retail segment, lower volume and net sales were driven by significant year-over-year volume and pricing declines for whole bird turkeys, lower sales of Planters® snack nuts resulting from production disruptions at the Suffolk, Virginia, facility, and lower center-store and contract manufacturing volumes. In the International segment, top-line declines were driven by lower commodity export volumes and lower net sales in China.

For the first nine months of fiscal 2024, the benefit from improved volume in the Foodservice segment was more than offset by lower net sales in the Retail and International segments. The declines in net sales are related to a significant year-over-year decline in pricing within the whole bird turkey markets, which primarily impact the Retail segment, lower volumes in contract manufacturing, which primarily impact the Retail segment, and lower commodity export sales and lower net sales in China, which impact the International segment.


Cost of Products Sold
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023
%
Change
Cost of Products Sold$2,410,075 $2,465,251 (2.2)$7,281,798 $7,426,514 (1.9)

Cost of products sold for the third quarter and the first nine months of fiscal 2024 decreased due primarily to lower sales. On a per pound basis, cost of products sold for the first nine months of fiscal 2024 was comparable to the same period of the prior year.

The Company expects costs of products sold to continue to moderate relative to the high levels of inflation the business has absorbed since the beginning of fiscal 2021. The Company expects its transform and modernize initiative to deliver cost savings,

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throughout fiscal 2024. The initiative targets costs throughout the Company’s organization, with a particular focus during 2024 on packaging, logistics, and production costs.


Gross Profit
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023
%
Change
Gross Profit$488,369 $498,048 (1.9)$1,500,908 $1,485,417 1.0 
Percent of Net Sales16.8 %16.8 % 17.1 %16.7 % 

For the third quarter of fiscal 2024, gross profit as a percent of net sales was flat. For the first nine months of fiscal 2024, gross profit as a percent of net sales increased in the International segment and was comparable for the Retail and Foodservice segments. All segments benefited from savings realized as part of the Company’s transform and modernize initiative.

Looking ahead to the fourth quarter of fiscal 2024, the Company expects gross profit as a percent of net sales to increase compared to last year. The Company expects gross profit as a percent of net sales to increase for the International segment and be comparable for the Retail and Foodservice segments.


Selling, General, and Administrative (SG&A)
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023
%
Change
SG&A$259,653 $291,073 (10.8)$766,707 $725,621 5.7 
Percent of Net Sales9.0 %9.8 % 8.7 %8.1 % 
Adjusted SG&A(1)
$230,373 $221,073 4.2 $706,941 $655,621 7.8 
Adjusted Percent of Net Sales(1)
7.9 %7.5 %8.0 %7.4 %
(1)    See the “Non-GAAP Measures” section below for a description of the Company’s use of measures not defined by GAAP.

For the third quarter, SG&A and SG&A as a percent of net sales decreased due to the accrual for an unfavorable arbitration ruling in the prior year, which was partially offset by current year litigation settlements. Adjusted SG&A as a percent of net sales(1) increased compared to last year. For the first nine months of fiscal 2024, SG&A and SG&A as a percent of net sales increased, primarily due to higher employee-related expenses.

Advertising investments in the third quarter were $40 million, a decrease of 6 percent compared to last year. The decline was partially due to lower support for the Planters® brand due to production disruptions at the Suffolk, Virginia, facility. For the first nine months of fiscal 2024, advertising investments were $128 million, an increase of 4 percent compared to last year. The Company expects full-year advertising expense to increase compared to the prior year.


Equity in Earnings of Affiliates
 Quarter EndedNine Months Ended
In thousandsJuly 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023%
Change
Equity in Earnings of Affiliates$7,977 $9,784 (18.5)$39,250 $42,213 (7.0)

Equity in earnings of affiliates for the third quarter and the first nine months of fiscal 2024 decreased due to lower results for MegaMex Foods, LLC, partially offset by improvements from the Company’s international investments.



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Interest and Investment Income and Interest Expense
 Quarter EndedNine Months Ended
In thousandsJuly 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023% Change
Interest and Investment Income$10,484 $9,239 13.5 $43,416 $20,700 109.7 
Interest Expense21,459 18,372 16.8 61,464 55,042 11.7 

Interest and investment income for the third quarter and the first nine months of fiscal 2024 increased due to a higher average cash balance, favorable market interest rates, and improved performance from the rabbi trust. Interest expense increased in the third quarter and first nine months of fiscal 2024 due to the second quarter debt issuance.


Effective Tax Rate
 Quarter EndedNine Months Ended
 July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Effective Tax Rate21.7 %21.7 %22.6 %22.2 %

The effective tax rate in the third quarter was flat to last year. The higher effective tax rate for the first nine months of fiscal 2024 is primarily due to higher federal deductions in the prior year partially offset by the purchase of federal transferable energy credits in the current year. The effective tax rate for fiscal 2024 is expected to be between 22.0% and 23.0%. For further information, refer to Note K - Income Taxes of the Notes to the Consolidated Financial Statements.


Segment Results

Net sales and segment profit for each of the Company’s reportable segments are set forth below. The Company does not allocate deferred compensation, non-recurring expenses associated with the transform and modernize initiative, investment income, interest expense, or interest income to its segments when measuring performance. The Company also retains various other income and expenses at the corporate level. Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing investments and noncontrolling interests are excluded. These items are included below as Net Unallocated Expense and Noncontrolling Interest when reconciling to Earnings Before Income Taxes.

The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the profit and other financial information shown below.
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023% ChangeJuly 28, 2024July 30, 2023% Change
Net Sales      
Retail$1,767,251 $1,891,746 (6.6)$5,467,078 $5,765,786 (5.2)
Foodservice954,021 890,949 7.1 2,799,110 2,607,140 7.4 
International177,171 180,605 (1.9)516,517 539,005 (4.2)
Total Net Sales
$2,898,443 $2,963,299 (2.2)$8,782,706 $8,911,930 (1.5)
Segment Profit      
Retail$127,932 $151,128 (15.3)$409,836 $459,031 (10.7)
Foodservice142,487 146,270 (2.6)441,952 428,110 3.2 
International21,792 12,222 78.3 65,026 45,723 42.2 
Total Segment Profit
292,211 309,619 (5.6)916,814 932,863 (1.7)
Net Unallocated Expense
66,526 101,886 (34.7)161,239 164,997 (2.3)
Noncontrolling Interest
34 (108)131.5 (170)(200)14.9 
Earnings Before Income Taxes
$225,719 $207,626 8.7 $755,404 $767,666 (1.6)


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Retail
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023
%
Change
Volume (lbs.)680,214 748,146 (9.1)2,170,621 2,267,363 (4.3)
Net Sales$1,767,251 $1,891,746 (6.6)$5,467,078 $5,765,786 (5.2)
Segment Profit127,932 151,128 (15.3)409,836 459,031 (10.7)

In the third quarter of fiscal 2024, volume and net sales declined, primarily due to significant year-over-year volume and pricing declines for whole bird turkeys, lower sales of Planters® snack nuts resulting from production disruptions at the Suffolk, Virginia, facility, and lower center-store and contract manufacturing volumes. Partially offsetting these declines were net sales growth for many key brands, including Hormel® Black Label® bacon, Applegate® natural and organic meats, Jennie-O® ground turkey, Skippy® peanut butter, Wholly® guacamole, Herdez® salsas and sauces, and Hormel® Square Table™ entrees. For the first nine months of fiscal 2024, net sales declined primarily due to significant year-over-year declines in whole bird turkey sales and lower contract manufacturing volumes.

For the third quarter and first nine months of fiscal 2024, segment profit declined due to lower sales and higher SG&A. These factors more than offset the benefit from lower logistics expenses and savings from the transform and modernize initiative.

For the fourth quarter of fiscal 2024, Retail segment profit is expected to be comparable to the prior year, excluding the impact of last year's non-cash impairment charge. The Company expects continued benefits from lower logistics expenses and incremental savings from the transform and modernize initiative to mitigate the negative impacts from lower volumes, unfavorable commodity whole turkey dynamics, and lingering production disruptions at the Suffolk facility.


Foodservice
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023
%
Change
Volume (lbs.)259,947 255,822 1.6 777,785 747,484 4.1 
Net Sales$954,021 $890,949 7.1 $2,799,110 $2,607,140 7.4 
Segment Profit142,487 146,270 (2.6)441,952 428,110 3.2 

Volume and net sales growth in the third quarter of fiscal 2024 were driven primarily by strong performance across the turkey, premium prepared proteins, bacon, and pepperoni categories. Notable products such as Hormel® Fire Braised™ meats, Hormel® Bacon 1™ cooked bacon, Café H® globally inspired proteins, and Rosa Grande® premium pepperoni delivered strong volume and net sales growth. Growth from branded Jennie-O® turkey items continued to benefit top-line results. For the first nine months of fiscal 2024, volume and net sales growth was broad-based and across numerous categories.

Segment profit decreased for the third quarter of fiscal 2024 as higher sales were more than offset by higher SG&A expenses. Segment profit increased for the first nine months of fiscal 2024 primarily due to higher sales.

For the fourth quarter, the Company expects Foodservice segment profit to be in line with prior year, with the impact from volume growth expected to be offset by higher SG&A compared to last year.


International
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023%
Change		July 28, 2024July 30, 2023
%
Change
Volume (lbs.)78,529 90,550 (13.3)231,681 241,445 (4.0)
Net Sales$177,171 $180,605 (1.9)$516,517 $539,005 (4.2)
Segment Profit21,792 12,222 78.3 65,026 45,723 42.2 

During the third quarter of fiscal 2024, robust volume and net sales growth for SPAM® luncheon meat, refrigerated foodservice exports, and Skippy® peanut butter exports were more than offset by the difficult comparison in the prior year to significantly

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higher export volumes of low-margin commodity fresh pork and turkey. For the first nine months of fiscal 2024, net sales declined due to lower commodity export sales and lower net sales in China.

Segment profit in the third quarter of fiscal 2024 increased significantly, due to improved export margins, growth from the Company's investments in the Philippines and Indonesia, and favorable costs in China. For the first nine months of fiscal 2024, segment profit increased due to improvement from the Company's international investments, favorable costs in China, and growth in Brazil.

In the fourth quarter of fiscal 2024, the Company expects International segment profit to increase significantly compared to last year. This recovery is expected to be driven by improvement across the business, including increased branded exports, growth in China and Brazil, and contributions from investments in the Philippines and Indonesia.


Unallocated Income and Expense
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Unallocated Expense$66,526 $101,886 $161,239 $164,997 
Noncontrolling Interest34 (108)(170)(200)

Net unallocated expense decreased for the third quarter of fiscal 2024 due to the accrual for an unfavorable arbitration ruling in the prior year. For the first nine months of fiscal 2024, net unallocated expense decreased as the benefit from lapping the arbitration ruling, higher interest income, and favorable rabbi trust performance was partially offset by transform and modernize initiative costs, litigation settlements, and higher employee-related expenses.


Related Party Transactions

There has been no material change in the information regarding Related Party Transactions as disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2023.


(1)Non-GAAP Measures

This filing includes measures of financial performance that are not defined by GAAP. The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-GAAP measures provide useful information to investors because they aid analysis and understanding of the Company’s results and business trends relative to past performance and the Company’s competitors. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies.

Transform and Modernize Initiative
In the fourth quarter of fiscal 2023, the Company announced a multi-year transform and modernize initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are non-recurring, comprised primarily of project-based external consulting fees and asset write-offs related to portfolio optimization (i.e., reducing the complexity and optimizing the assortment of the product portfolio). The Company believes that non-recurring costs associated with the transform and modernize initiative are not reflective of the Company’s ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the transform and modernize initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs.

Legal Matters
From time to time, the Company incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company’s core operating performance, do not reflect expected future operating costs, and may not be meaningful when comparing the Company’s operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these expenses.


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Litigation Settlements
In the second and third quarters of fiscal 2024, the Company entered into settlement agreements with certain plaintiffs in its pending antitrust litigation. See Note I - Commitments and Contingencies of the Notes to the Consolidated Financial Statements for additional information.

Arbitration Ruling
In the third quarter of fiscal 2023, the Company received an unexpected, unfavorable arbitration ruling involving an isolated commercial dispute with a third party.

The table below shows the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this Quarterly Report on Form 10-Q. The tax impacts were calculated using the effective tax rate for the quarter in which the expenses were incurred.

Quarter EndedNine Months Ended
In thousands, except per share amountsJuly 28, 2024July 30, 2023July 28, 2024July 30, 2023
Cost of Products Sold (GAAP)$2,410,075 $2,465,251 $7,281,798 $7,426,514 
Transform and Modernize Initiative(1)
(1,226)— (4,646)— 
Adjusted Cost of Products Sold (Non-GAAP)$2,408,848 $2,465,251 $7,277,152 $7,426,514 
Gross Profit (GAAP)$488,369 $498,048 $1,500,908 $1,485,417 
Transform and Modernize Initiative(1)
1,226 — 4,646 — 
Adjusted Gross Profit (Non-GAAP)$489,595 $498,048 $1,505,554 $1,485,417 
SG&A (GAAP)$259,653 $291,073 $766,707 $725,621 
Transform and Modernize Initiative(2)
(12,280)— (31,016)— 
Pork Antitrust Litigation Settlements— — (11,750)— 
Red Meat Wages Antitrust Litigation Settlement(13,500)— (13,500)— 
Poultry Wages Antitrust Litigation Settlement
(3,500)— (3,500)— 
Arbitration Ruling
— (70,000)— (70,000)
Adjusted SG&A (Non-GAAP)$230,373 $221,073 $706,941 $655,621 
Operating Income (GAAP)$236,693 $216,759 $773,452 $802,009 
Transform and Modernize Initiative(1)(2)
13,506 — 35,663 — 
Pork Antitrust Litigation Settlements— — 11,750 — 
Red Meat Wages Antitrust Litigation Settlement13,500 — 13,500 — 
Poultry Wages Antitrust Litigation Settlement
3,500 — 3,500 — 
Arbitration Ruling
— 70,000 — 70,000 
Adjusted Operating Income (Non-GAAP)$267,200 $286,759 $837,864 $872,009 
Earnings Before Income Taxes (GAAP)$225,719 $207,626 $755,404 $767,666 
Transform and Modernize Initiative(1)(2)
13,506 — 35,663 — 
Pork Antitrust Litigation Settlements— — 11,750 — 
Red Meat Wages Antitrust Litigation Settlement13,500 — 13,500 — 
Poultry Wages Antitrust Litigation Settlement
3,500 — 3,500 — 
Arbitration Ruling
— 70,000 — 70,000 
Adjusted Earnings Before Income Taxes (Non-GAAP)$256,225 $277,626 $819,816 $837,666 
Provision for Income Taxes (GAAP)$48,984 $45,055 $170,733 $170,230 
Transform and Modernize Initiative(1)(2)
2,931 — 8,009 — 
Pork Antitrust Litigation Settlements— — 2,644 — 
Red Meat Wages Antitrust Litigation Settlement2,930 — 2,930 — 
Poultry Wages Antitrust Litigation Settlement
760 — 760 — 
Arbitration Ruling
— 15,190 — 15,190 
Adjusted Provision for Income Taxes (Non-GAAP)$55,603 $60,245 $185,074 $185,420 

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Quarter EndedNine Months Ended
In thousands, except per share amountsJuly 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Earnings Attributable to Hormel Foods Corporation (GAAP)$176,701 $162,679 $584,842 $597,637 
Transform and Modernize Initiative(1)(2)
10,575 — 27,654 — 
Pork Antitrust Litigation Settlements— — 9,106 — 
Red Meat Wages Antitrust Litigation Settlement10,571 — 10,571 — 
Poultry Wages Antitrust Litigation Settlement
2,741 — 2,741 — 
Arbitration Ruling
— 54,810 — 54,810 
Adjusted Net Earnings Attributable to Hormel Foods Corporation (Non-GAAP)$200,588 $217,489 $634,913 $652,447 
Diluted Net Earnings Per Share (GAAP)$0.32 $0.30 $1.07 $1.09 
Transform and Modernize Initiative(1)(2)
0.02 — 0.05 — 
Pork Antitrust Litigation Settlements— — 0.02 — 
Red Meat Wages Antitrust Litigation Settlement0.02 — 0.02 — 
Poultry Wages Antitrust Litigation Settlement
— — — — 
Arbitration Ruling
— 0.10 — 0.10 
Adjusted Diluted Net Earnings Per Share (Non-GAAP)$0.37 $0.40 $1.16 $1.19 
SG&A as a Percent of Net Sales (GAAP)9.0 %9.8 %8.7 %8.1 %
Transform and Modernize Initiative(2)
(0.4)— (0.4)— 
Pork Antitrust Litigation Settlements— — (0.1)— 
Red Meat Wages Antitrust Litigation Settlement(0.5)— (0.2)— 
Poultry Wages Antitrust Litigation Settlement
(0.1)— — — 
Arbitration Ruling
— (2.4)— (0.8)
Adjusted SG&A as a Percent of Net Sales (Non-GAAP)7.9 %7.5 %8.0 %7.4 %
Operating Margin (GAAP)8.2 %7.3 %8.8 %9.0 %
Transform and Modernize Initiative(1)(2)
0.5 — 0.4 — 
Pork Antitrust Litigation Settlements— — 0.1 — 
Red Meat Wages Antitrust Litigation Settlement0.5 — 0.2 — 
Poultry Wages Antitrust Litigation Settlement
0.1 — — — 
Arbitration Ruling
— 2.4 — 0.8 
Adjusted Operating Margin (Non-GAAP)9.2 %9.7 %9.5 %9.8 %

(1)    Comprised primarily of asset write-offs related to portfolio optimization.
(2)    Comprised primarily of project-based external consulting fees.


LIQUIDITY AND CAPITAL RESOURCES

When assessing its liquidity and capital resources, the Company evaluates cash and cash equivalents, short-term and long-term investments, income from operations, and borrowing capacity.

Cash Flow Highlights
Nine Months Ended
In thousands
July 28, 2024July 30, 2023
Cash and Cash Equivalents at End of Period
$537,476 $669,124 
Cash Provided by (Used in) Operating Activities858,117 728,756 
Cash Provided by (Used in) Investing Activities(176,899)(588,489)
Cash Provided by (Used in) Financing Activities(879,823)(450,977)
Increase (Decrease) in Cash and Cash Equivalents(199,057)(312,983)


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Cash and cash equivalents decreased $199 million during the first nine months of fiscal 2024, primarily as a result of the Company repaying a portion of long-term debt by using existing cash on hand and the proceeds from new debt issued in fiscal 2024. Cash provided by operating activities has been sufficient to cover dividend payments and capital expenditures during the first nine months of fiscal 2024. The purchase of a minority interest in PT Garudafood Putra Putri Jaya Tbk (Garudafood) was the primary driver of the decline in cash and cash equivalents in the prior year. Additional details related to significant drivers of cash flows are provided below.

Cash Provided by (Used in) Operating Activities
•Cash flows from operating activities during the first nine months of fiscal 2024 were largely impacted by changes in operating assets and liabilities.
–Accounts receivable decreased $89 million and $81 million during the nine months ended July 28, 2024 and July 30, 2023, respectively, primarily due to lower sales.
–Inventory decreased $31 million during the first nine months of fiscal 2024 compared to an increase of $21 million in the comparable period of the prior year. The decrease in inventory during fiscal 2024 was due to benefits in supply chain processes associated with the Company's transform and modernize initiative as well as the impact of production disruptions at the Suffolk, Virginia manufacturing facility. These reduced levels of inventory were partially offset by higher levels of turkey on hand in fiscal 2024. The increase in inventory during fiscal 2023 was due to production outpacing sales.
–Accounts payable and accrued expenses decreased $95 million during the first nine months of fiscal 2024 due to the general timing of payments, feed and livestock deferral payments, and annual incentive payments. These decreases were partially offset by higher accruals for marketing and legal expenses. Accounts payable and accrued expenses decreased $131 million during the first nine months of fiscal 2023 due to the general timing of payments and annual incentive payments, partially offset by higher accruals for legal expenses.
–Prepaid expenses and other assets increased $8 million during the nine months ended July 28, 2024, compared to an increase of $52 million during the nine months ended July 30, 2023. This activity was primarily related to settlements associated with the Company’s hedging activities.

Cash Provided by (Used in) Investing Activities
•Capital expenditures were $173 million and $169 million during the first nine months of fiscal 2024 and fiscal 2023, respectively. The largest spend during fiscal 2024 was for the transition from harvest to value-added capacity at the facility in Barron, Wisconsin and wastewater infrastructure to support operations in Austin, Minnesota. The largest spend during fiscal 2023 was related to capacity expansion for pepperoni and the SPAM® family of products.
•During the first nine months of fiscal 2023, the Company purchased a minority interest in Garudafood for $426 million.

Cash Provided by (Used in) Financing Activities
•The Company paid $950 million of its senior unsecured notes upon maturity on June 3, 2024.
•Proceeds from the issuance of long-term debt were $498 million during the first nine months of fiscal 2024. The Company issued senior unsecured notes with aggregate principal amount of $500 million.
•Cash dividends paid to the Company’s shareholders were $460 million during the first nine months of fiscal 2024, compared to $443 million in the comparable period of fiscal 2023.
•Proceeds from the exercise of stock options were $34 million in the first nine months of fiscal 2024, compared to $8 million in the first nine months of fiscal 2023. The increase in proceeds was due to more options exercised during fiscal 2024 compared to fiscal 2023.
•There were no share repurchases during the first nine months of fiscal 2024. Share repurchases of $12 million were made during the first nine months of fiscal 2023.

Sources and Uses of Cash
The Company believes its balanced business model, with diversification across raw material inputs, channels, and categories, provides stability in ever-changing economic environments. The Company maintains a disciplined capital allocation strategy and uses a waterfall approach, which focuses first on core uses of cash, such as capital expenditures to maintain facilities, dividend returns to investors, mandatory debt repayments, and fulfillment of pension obligations. Next, the Company looks to strategic items in support of growth initiatives, such as capital projects, acquisitions, additional dividend increases, and working capital investments. Finally, the Company evaluates opportunistic uses, including incremental debt repayment and share repurchases.

The Company believes its anticipated income from operations, cash on hand, borrowing capacity under the current unsecured revolving credit facility, and access to capital markets will be adequate to meet all short-term and long-term commitments. The Company continues to look for opportunities to make investments and acquisitions that align with its strategic priorities. The Company has multiple sources of liquidity to complete such investments and acquisitions. For example, the Company’s historic ability to leverage its balance sheet through the issuance of debt has provided the flexibility to pursue strategic opportunities.

Dividend Payments
The Company remains committed to providing returns to investors through cash dividends. The Company has paid 384 consecutive quarterly dividends since becoming a public company in 1928. The Board of Directors approved an increased

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annual dividend rate for fiscal 2024 raising it to $1.13 per share from $1.10 per share, representing the 58th consecutive annual dividend increase.

Capital Expenditures
Capital expenditures are allocated to required maintenance and growth opportunities based on the needs of the business. Capital expenditures supporting growth opportunities in fiscal 2024 are expected to focus on projects related to value-added capacity, infrastructure, and new technology. Capital expenditures for fiscal 2024 are estimated to be $280 million.

Debt
As of July 28, 2024, the Company’s outstanding debt included $2.9 billion of fixed rate unsecured senior notes due in fiscal 2027, 2028, 2030, and 2051 with interest payable semi-annually. During the first nine months of fiscal 2024, the Company made $55 million of interest payments and the Company expects to make an additional $13 million of interest payments during fiscal 2024 on these notes. On March 8, 2024, the Company issued senior unsecured notes with an aggregate principal amount of $500 million. These proceeds were used, along with cash on hand, to repay $950 million in senior unsecured notes which matured on June 3, 2024. See Note J - Long-Term Debt and Other Borrowing Arrangements of the Notes to the Consolidated Financial Statements for additional information.

Borrowing Capacity
As a source of short-term financing, the Company maintains a $750 million unsecured revolving credit facility. The maximum commitment under this credit facility may be further increased by $375 million, generally by mutual agreement of the lenders and the Company, subject to certain customary conditions. Funds drawn from this facility may be used by the Company for general corporate purposes, which may include repaying existing debt, funding acquisitions, and for working capital or other general purposes. The lending commitments under the facility are scheduled to expire on May 6, 2026, at which time the Company will be required to pay in full all obligations then outstanding. As of July 28, 2024, the Company had no outstanding draws from this facility.

Debt Covenants
The Company’s debt agreements contain customary terms and conditions including representations, warranties, and covenants. These debt covenants limit the ability of the Company to, among other things, incur debt for borrowed money secured by certain liens, or engage in certain sale and leaseback transactions, and the covenants require the Company to maintain certain consolidated leverage ratios. As of July 28, 2024, the Company was in compliance with all covenants in its debt agreements and expects to maintain compliance in the future.

Cash Held by International Subsidiaries
As of July 28, 2024, the Company's international subsidiaries held $197 million of cash and cash equivalents. The Company maintains all undistributed earnings as permanently reinvested. The Company evaluates the balance and uses of cash held internationally based on the needs of the business.

Share Repurchases
The Company is authorized to repurchase 3,677,494 shares of common stock as part of an existing plan approved by the Company’s Board of Directors. Under the share repurchase authorization, the Company may repurchase shares periodically, depending on market conditions and other factors, and may do so in open market purchases or privately negotiated transactions. The share repurchase authorization has no expiration date. The Company did not repurchase any shares of stock during the first nine months of fiscal 2024. The Company continues to evaluate share repurchases as part of its capital allocation strategy.

Commitments
As previously described, on March 8, 2024, the Company issued senior unsecured notes with an aggregate principal amount of $500 million with a three-year tenor due March 2027. The notes bear interest at a fixed rate of 4.800% per annum and pay semi-annually. See Note J - Long-Term Debt and Other Borrowing Arrangements of the Notes to the Consolidated Financial Statements for additional information.

The Company used cash on hand to pay approximately $7 million during the third quarter of fiscal 2024 in respect of legal settlements. Subsequent to quarter-end but prior to the filing of this Quarterly Report on Form 10-Q, the Company used an additional $4 million of cash on hand to complete payment of these legal settlements. Also subsequent to quarter-end, the Company entered into additional legal settlements totaling $17 million, which remain subject to Court approval. Following such approval, the Company expects to pay the associated amounts using cash on hand. See Note I - Commitments and Contingencies of the Notes to the Consolidated Financial Statements for additional information.

Outside of the items mentioned above, there have been no material changes to the information regarding the Company’s future contractual financial obligations previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2023.


31

TRADEMARKS

References to the Company’s brands or products in italics within this report represent valuable trademarks owned or licensed by Hormel Foods, LLC or other subsidiaries of Hormel Foods Corporation.


CRITICAL ACCOUNTING ESTIMATES

Management’s discussion and analysis of financial condition and results of operations is based upon the Company’s consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires the Company to make estimates, judgments, and assumptions that can have a meaningful effect on the reporting of consolidated financial statements. The significant accounting policies used in preparing these Consolidated Financial Statements are consistent with those described in Note A - Summary of Significant Accounting Policies of the Notes to the Consolidated Financial Statements in the Form 10-K.

Critical accounting estimates are defined as those reflective of significant judgments, estimates, and uncertainties, which may result in materially different results under different assumptions and conditions. There have been no material changes in the Company’s Critical Accounting Estimates as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 29, 2023.


FORWARD-LOOKING STATEMENTS

This report contains “forward-looking” information within the meaning of the federal securities laws. The “forward-looking” information may include statements concerning the Company’s outlook for the future as well as other statements of beliefs, future plans, strategies, or anticipated events and similar expressions concerning matters that are not historical facts.

The Private Securities Litigation Reform Act of 1995 (the Reform Act) provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information. The Company is filing this cautionary statement in connection with the Reform Act. When used in this Quarterly Report on Form 10-Q, the Company’s Annual Report to Stockholders, other filings by the Company with the Securities and Exchange Commission, the Company’s press releases, and oral statements made by the Company’s representatives, the words or phrases “should result,” “believe,” “intend,” “plan,” “are expected to,” “targeted,” “will continue,” “will approximate,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify forward-looking statements within the meaning of the Reform Act. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those anticipated or projected.

In connection with the “safe harbor” provisions of the Reform Act, the Company is identifying risk factors that could affect financial performance and cause the Company’s actual results to differ materially from opinions or statements expressed with respect to future periods. The discussions of risk factors in the Company’s most recent Annual Report on Form 10-K and in Part II, Item 1A of this Quarterly Report on Form 10-Q contain certain cautionary statements regarding the Company’s business, which should be considered by investors and others. Such risk factors should be considered in conjunction with any discussions of operations or results by the Company or its representatives, including any forward-looking discussion, as well as comments contained in press releases, presentations to securities analysts or investors, or other communications by the Company.

In making these statements, the Company is not undertaking, and specifically declines to undertake, any obligation to address or update each or any factor in future filings or communications regarding the Company’s business or results, and is not undertaking to address how any of these factors may have caused changes to discussions or information contained in previous filings or communications. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company wishes to caution investors and others that other factors may in the future prove to be important in affecting the Company’s business or results of operations.

The Company cautions readers not to place undue reliance on forward-looking statements, which represent current views as of the date made. Forward-looking statements are inherently at risk to changes in the Company’s business as well as the national and worldwide economic environment. The risks and uncertainties that could cause actual results to differ from those anticipated or projected include, among other things, risks related to the deterioration of economic conditions; risks associated with acquisitions, joint ventures, equity investments, and divestitures; the risk of disruption of operations, including at owned facilities, co-manufacturers, suppliers, logistics providers, customers, or other third-party service providers; risk related to the remediation of production disruptions at the Suffolk, Virginia, facility; the risk that the Company will fail to realize anticipated cost savings or operating efficiencies associated with strategic initiatives, including the transform and modernize initiative; risk of loss of a material contract; risk of the Company’s inability to protect information technology systems against, or effectively respond to, cyber attacks against it or others with whom it does business, security breaches or other IT interruptions; deterioration of labor

32
relations or labor availability or increases to labor costs; general risks of the food industry, including food contamination or outbreaks of disease among livestock and poultry flocks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company’s products; risks related to the Company's ability to respond to changing consumer preferences and the success of innovation and marketing investments; damage to the Company’s reputation or brand image; risks associated with climate change, or legal, regulatory, or market measures to address climate change; risks of litigation; potential sanctions and compliance costs arising from government regulation; compliance with stringent environmental regulations and potential environmental litigation; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; and risks arising from the Company’s foreign operations, including geopolitical risk, exchange rate risk, and risks associated with tariffs.


Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to various forms of market risk as a part of its ongoing business practices. The Company utilizes derivative instruments to mitigate earnings fluctuations due to market volatility.

Commodity Price Risk: The Company is subject to commodity price risk primarily through grain, lean hog, natural gas, and diesel fuel markets. To reduce these exposures and offset the fluctuations caused by changes in market conditions, the Company employs hedging programs. These programs utilize futures, swaps, and options contracts and are accounted for as cash flow hedges. The fair value of the Company’s cash flow commodity contracts as of July 28, 2024 was $(22.9) million, compared to $(17.1) million as of October 29, 2023. The Company measures its market risk exposure on its cash flow commodity contracts using a sensitivity analysis, which considers a hypothetical 10 percent change in the market prices. A 10 percent decrease in the market price would have negatively impacted the fair value of the Company’s cash flow commodity contracts as of July 28, 2024 by $25.6 million, which in turn would lower the Company’s future cost on purchased commodities by a similar amount.

Interest Rate Risk: The Company is subject to interest rate risk primarily from changes in fair value of long-term fixed rate debt. As of July 28, 2024, the Company’s long-term debt had a fair value of $2.4 billion compared to $2.7 billion as of October 29, 2023. The Company measures its market risk exposure of long-term fixed rate debt using a sensitivity analysis, which considers a 10 percent change in interest rates. A 10 percent decrease in interest rates would have positively impacted the fair value of the Company’s long-term debt as of July 28, 2024 by $76.0 million. A 10 percent increase would have negatively impacted the long-term debt by $70.9 million.

Foreign Currency Exchange Rate Risk: The fair values of certain of the Company’s assets are subject to fluctuations in foreign currency exchange rates. The Company’s net asset position in foreign currencies as of July 28, 2024 and October 29, 2023 was $1.1 billion, with most of the exposure existing in Chinese yuan, Indonesian rupiah, and Brazilian real. The Company currently does not use market risk sensitive instruments to manage this risk.

Investment Risk: The Company has corporate-owned life insurance policies classified as trading securities as part of a rabbi trust to fund certain supplemental executive retirement plans and deferred income plans. As of July 28, 2024, the balance of these securities totaled $207.0 million compared to $188.2 million as of October 29, 2023. The rabbi trust is invested primarily in fixed income funds. The Company is subject to market risk due to fluctuations in the value of the remaining investments as unrealized gains and losses associated with these securities are included in the Company’s net earnings on a mark-to-market basis. A 10 percent decline in the value of the investments not held in fixed income funds would have negatively impacted the Company’s pre-tax earnings by approximately $9.8 million, while a 10 percent increase in value would have a positive impact of the same amount.


Item 4. CONTROLS AND PROCEDURES

(a)    Disclosure Controls and Procedures.
As of the end of the period covered by this report (the Evaluation Date), the Company carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that information the Company is required to disclose in reports it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is

33
accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

(b)    Internal Controls.
There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) through the third quarter of fiscal 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.


PART II - OTHER INFORMATION
 

Item 1. LEGAL PROCEEDINGS

Information regarding legal proceedings is available in Note I - Commitments and Contingencies of the Notes to the Consolidated Financial Statements.


Item 1A. RISK FACTORS

The Company’s business, operations, and financial condition are subject to various risks and uncertainties. There have been no material changes to the risk factors previously disclosed in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2023, except as follows:

Business and Operational Risks

Deterioration of labor relations, labor availability or increases in labor costs could harm the Company’s business. As of October 29, 2023, the Company employed approximately 20,000 people worldwide, of which approximately 20 percent were represented by labor unions, principally the United Food and Commercial Workers Union. Union contracts at two of the Company's manufacturing facilities, covering approximately 250 employees, expired and new union agreements were ratified at both locations during fiscal 2024. A significant increase in labor costs or a deterioration of labor relations at any of the Company’s facilities or co-manufacturing facilities resulting in work slowdowns or stoppages could harm the Company’s financial results. Labor and skilled labor availability challenges could continue to have an adverse effect on the Company's business.

Industry Risks

Outbreaks of disease among livestock and poultry flocks could harm the Company’s revenues and operating margins. The Company is subject to risks associated with the outbreak of disease in pork and beef livestock, and poultry flocks, including African swine fever (ASF), Bovine Spongiform Encephalopathy (BSE), pneumo-virus, Porcine Circovirus 2 (PCV2), Porcine Reproduction & Respiratory Syndrome (PRRS), Foot-and-Mouth Disease (FMD), Porcine Epidemic Diarrhea Virus (PEDv), and Highly Pathogenic Avian Influenza (HPAI). The outbreak of such diseases could adversely affect the Company’s supply of raw materials, increase the cost of production, reduce utilization of the Company’s harvest facilities, and reduce operating margins. The impact of global climate change may increase these risks due to changes in weather or migratory patterns, which may result in certain types of diseases occurring more frequently or with more intense effects. Additionally, the outbreak of disease may hinder the Company’s ability to market and sell products both domestically and internationally.

In recent years, the outbreak of ASF has impacted hog herds in China, Asia, Europe, and the Caribbean. If an outbreak of ASF were to occur in the U.S., the Company’s supply of hogs and pork could be materially impacted.

HPAI was detected within the Company’s turkey supply chain during the first nine months of fiscal 2024. The impact of HPAI has reduced and the Company believes it will continue to reduce production volume in the Company’s turkey facilities throughout fiscal 2024. The Company is continuing to monitor the situation and will take appropriate actions to protect the health of the turkeys across the supply chain.

The Company has developed business continuity plans for various disease scenarios and will continue to update these plans as necessary. There can be no assurance given, however, that these plans will be effective in eliminating the negative effects of any such diseases on the Company’s operating results.

Climate change, or legal, regulatory or market measures to address climate change, could have an adverse impact on the Company’s business and results of operations. There is growing concern that carbon dioxide and other greenhouse gases in the atmosphere may have an adverse impact on global temperatures, weather patterns, and the frequency and severity

34
of extreme weather and natural disasters. If such climate change has a negative impact on agricultural productivity, the Company may have decreased availability or less favorable pricing for the raw materials necessary for its operations. Climate change may also cause decreased availability or less favorable pricing for water, which could have an adverse effect on the Company’s operations and supply chain. In addition, natural disasters and extreme weather, including those caused by climate change, have caused and could continue to cause disruption in the Company’s operations and supply chain.

The increasing concern over climate change may also result in greater local, state, federal, and foreign legal requirements, including requirements to limit greenhouse gas emissions or conserve water usage. If such requirements are enacted, the Company could experience significant cost increases in its operations and supply chain.

The Company has developed and publicly announced goals to reduce its impact on the environment such as the 20 by 30 Challenge and the recently announced validation of its greenhouse gas reduction targets by the Science Based Targets initiative. The Company's ability to achieve these goals is subject to numerous factors and conditions, many of which are outside of its control. Examples include, among others, evolving regulatory requirements, disclosure frameworks, and methodologies for reporting data. Failure to accomplish goals set by the Company related to climate change or meet expectations of various Company stakeholders may cause decreased demand for the Company’s products and have an adverse effect on results of operations.


Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no issuer purchases of equity securities in the quarter ended July 28, 2024. On January 29, 2013, the Company’s Board of Directors authorized the repurchase of 10,000,000 shares of its common stock with no expiration date. On January 26, 2016, the Board of Directors approved a two-for-one split of the Company’s common stock to be effective January 27, 2016. As part of the stock split resolution, the number of shares remaining to be repurchased was adjusted proportionately. The maximum number of shares that may yet be purchased under the repurchase plans or programs as of July 28, 2024 is 3,677,494.


Item 3. DEFAULTS UPON SENIOR SECURITIES

None.


Item 4. MINE SAFETY DISCLOSURES

None.


Item 5. OTHER INFORMATION

During the fiscal quarter ended July 28, 2024, no director or officer of the Company adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as the terms are defined in Item 408(a) of Regulation S-K.


Item 6. EXHIBITS
101
The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended July 28, 2024, formatted in Inline XBRL: (i) Consolidated Statements of Operations, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Statements of Financial Position, (iv) Consolidated Statements of Changes in Shareholders’ Investment, (v) Consolidated Condensed Statements of Cash Flows, and (vi) Notes to the Consolidated Financial Statements.
104
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended July 28, 2024, formatted in Inline XBRL (included as Exhibit 101).

35
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  HORMEL FOODS CORPORATION
  (Registrant)
Date: September 4, 2024
By:
/s/ JACINTH C. SMILEY
  JACINTH C. SMILEY
  Executive Vice President and Chief Financial Officer
  (Principal Financial Officer)
Date: September 4, 2024
By:
/s/ PAUL R. KUEHNEMAN
  PAUL R. KUEHNEMAN
  Vice President and Controller
  (Principal Accounting Officer)


36

EXHIBIT 31.1
 
CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
 
I, James P. Snee, certify that:
 
1.    I have reviewed this Quarterly Report on Form 10-Q of Hormel Foods Corporation for the period ended July 28, 2024;
 
2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c.    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d.    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
 
a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Dated: September 4, 2024Signed:/s/ JAMES P. SNEE
JAMES P. SNEE
Chairman of the Board, President and Chief Executive Officer

1

EXHIBIT 31.2
 
CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
 
I, Jacinth C. Smiley, certify that:
 
1.    I have reviewed this Quarterly Report on Form 10-Q of Hormel Foods Corporation for the period ended July 28, 2024;
 
2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
c.    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
d.    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
 
5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
 
a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
 
b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Dated: September 4, 2024Signed:/s/ JACINTH C. SMILEY
  JACINTH C. SMILEY
  Executive Vice President and Chief Financial Officer

1

EXHIBIT 32.1
 
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
 
In connection with the Quarterly Report of Hormel Foods Corporation (the “Company”) on Form 10-Q for the period ended July 28, 2024, as filed with the Securities and Exchange Commission (the “Report”), the undersigned hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
 
(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended; and
 
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 

Dated: September 4, 2024/s/ JAMES P. SNEE
JAMES P. SNEE
Chairman of the Board, President and Chief Executive Officer
Dated: September 4, 2024/s/ JACINTH C. SMILEY
JACINTH C. SMILEY
Executive Vice President and Chief Financial Officer

1
v3.24.2.u1
COVER - shares
 9 Months Ended
Jul. 28, 2024
Sep. 01, 2024
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 28, 2024  
Document Transition Report false  
Entity File Number 1-2402  
Entity Registrant Name HORMEL FOODS CORPORATION  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 41-0319970  
Entity Address, Address Line One 1 Hormel Place  
Entity Address, City or Town Austin  
Entity Address, State or Province MN  
Entity Address, Postal Zip Code 55912-3680  
City Area Code 507  
Local Phone Number 437-5611  
Title of 12(b) Security Common Stock  
Trading Symbol HRL  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Smaller Reporting Company false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0000048465  
Amendment Flag false  
Current Fiscal Year End Date --10-27  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Common Stock $0.01465 par value    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding (in shares)   548,363,619
Common Stock Nonvoting $0.01 par value    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding (in shares)   0
v3.24.2.u1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Income Statement [Abstract]        
Net Sales $ 2,898,443 $ 2,963,299 $ 8,782,706 $ 8,911,930
Cost of Products Sold 2,410,075 2,465,251 7,281,798 7,426,514
Gross Profit 488,369 498,048 1,500,908 1,485,417
Selling, General, and Administrative 259,653 291,073 766,707 725,621
Equity in Earnings of Affiliates 7,977 9,784 39,250 42,213
Operating Income 236,693 216,759 773,452 802,009
Interest and Investment Income 10,484 9,239 43,416 20,700
Interest Expense 21,459 18,372 61,464 55,042
Earnings Before Income Taxes 225,719 207,626 755,404 767,666
Provision for Income Taxes 48,984 45,055 170,733 170,230
Net Earnings 176,735 162,571 584,671 597,437
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest 34 (108) (170) (200)
Net Earnings Attributable to Hormel Foods Corporation $ 176,701 $ 162,679 $ 584,842 $ 597,637
Net Earnings Per Share        
Basic (in dollars per share) $ 0.32 $ 0.30 $ 1.07 $ 1.09
Diluted (in dollars per share) $ 0.32 $ 0.30 $ 1.07 $ 1.09
Weighted-average Shares Outstanding        
Basic (in shares) 548,685 546,358 547,858 546,389
Diluted (in shares) 549,266 548,637 548,624 549,227
v3.24.2.u1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net Earnings $ 176,735 $ 162,571 $ 584,671 $ 597,437
Other Comprehensive Income (Loss), Net of Tax:        
Foreign Currency Translation (29,075) (10,572) (36,931) 27,362
Pension and Other Benefits 2,008 2,195 6,205 7,368
Derivatives and Hedging (18,601) 2,518 (1,397) (31,058)
Equity Method Investments (6,770) 8,733 (10,330) 10,141
Total Other Comprehensive Income (Loss) (52,438) 2,875 (42,453) 13,813
Comprehensive Income 124,297 165,445 542,218 611,250
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest (357) (510) (502) (338)
Comprehensive Income Attributable to Hormel Foods Corporation $ 124,653 $ 165,955 $ 542,720 $ 611,588
v3.24.2.u1
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($)
$ in Thousands
Jul. 28, 2024
Oct. 29, 2023
Assets    
Cash and Cash Equivalents $ 537,476 $ 736,532
Short-term Marketable Securities 24,454 16,664
Accounts Receivable (Net of Allowance for Doubtful Accounts of $3,678 at July 28, 2024, and $3,557 at October 29, 2023) 727,054 817,391
Inventories 1,649,649 1,680,406
Prepaid Expenses and Other Current Assets 58,814 46,256
Total Current Assets 2,997,446 3,297,249
Goodwill 4,923,731 4,928,464
Other Intangibles 1,743,615 1,757,171
Pension Assets 190,947 204,697
Investments in Affiliates 680,386 725,121
Other Assets 409,125 370,252
Property, Plant, and Equipment    
Land 74,670 74,626
Buildings 1,471,787 1,458,354
Equipment 2,815,248 2,781,730
Construction in Progress 274,823 195,665
Less: Allowance for Depreciation (2,467,997) (2,344,557)
Net Property, Plant, and Equipment 2,168,531 2,165,818
Total Assets 13,113,781 13,448,772
Liabilities and Shareholders’ Investment    
Accounts Payable 675,167 771,397
Accrued Expenses 74,789 51,679
Accrued Marketing Expenses 113,012 87,452
Employee-related Expenses 248,954 263,330
Interest and Dividends Payable 171,079 172,178
Taxes Payable 18,513 15,212
Current Maturities of Long-term Debt 8,232 950,529
Total Current Liabilities 1,309,746 2,311,776
Long-term Debt Less Current Maturities 2,851,621 2,358,719
Pension and Post-retirement Benefits 359,083 349,268
Deferred Income Taxes 499,098 498,106
Other Long-term Liabilities 217,008 191,917
Shareholders’ Investment    
Preferred Stock 0 0
Additional Paid-in Capital 560,849 506,179
Accumulated Other Comprehensive Loss (314,373) (272,252)
Retained Earnings 7,612,610 7,492,952
Hormel Foods Corporation Shareholders’ Investment 7,867,119 7,734,885
Noncontrolling Interest 10,106 4,100
Total Shareholders’ Investment 7,877,225 7,738,985
Total Liabilities and Shareholders’ Investment 13,113,781 13,448,772
Common Stock, Nonvoting    
Shareholders’ Investment    
Common Stock 0 0
Common Stock    
Shareholders’ Investment    
Common Stock $ 8,033 $ 8,007
v3.24.2.u1
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (PARENTHETICAL) - USD ($)
$ in Thousands
Jul. 28, 2024
Oct. 29, 2023
Accounts Receivable, Allowance for Doubtful Accounts $ 3,678 $ 3,557
Preferred Stock, Par Value (in dollars per share) $ 0.01 $ 0.01
Preferred Stock, Authorized Shares (in shares) 160,000,000 160,000,000
Preferred Stock, Issued Shares (in shares) 0 0
Common Stock, Nonvoting    
Common Stock, Par Value (in dollars per share) $ 0.01 $ 0.01
Common Stock, Authorized Shares (in shares) 400,000,000 400,000,000
Common Stock, Issued Shares (in shares) 0 0
Common Stock    
Common Stock, Par Value (in dollars per share) $ 0.01465 $ 0.01465
Common Stock, Authorized Shares (in shares) 1,600,000,000 1,600,000,000
Common Stock, Issued Shares (in shares) 548,328,587 546,599,420
v3.24.2.u1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' INVESTMENT - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Increase (Decrease) in Shareholders' Investment        
Beginning balance $ 7,896,452 $ 7,691,615 $ 7,738,985 $ 7,540,219
Net Earnings (Loss) 176,735 162,571 584,671 597,437
Other Comprehensive Income (Loss) (52,438) 2,875 (42,453) 13,813
Contribution from Noncontrolling Interest     6,508  
Purchases of Common Stock       (12,303)
Stock-based Compensation Expense 5,107 5,034 20,112 20,946
Exercise of Stock Options/Restricted Shares 6,325 5,933 33,784 8,489
Shares Retired       0
Declared Dividends (154,957) (150,165) (464,383) (450,738)
Ending balance $ 7,877,225 $ 7,717,863 $ 7,877,225 $ 7,717,863
Common Stock        
Increase (Decrease) in Shareholders' Investment        
Beginning balance (in shares) 548,030 546,255 546,599 546,237
Beginning balance $ 8,028 $ 8,002 $ 8,007 $ 8,002
Stock-based Compensation Expense (in shares)     52 44
Stock-based Compensation Expense     $ 1  
Exercise of Stock Options/Restricted Shares (in shares) 299 212 1,677 496
Exercise of Stock Options/Restricted Shares $ 4 $ 3 $ 24 $ 7
Shares Retired (in shares)       (310)
Shares Retired       $ (5)
Ending balance (in shares) 548,329 546,467 548,329 546,467
Ending balance $ 8,033 $ 8,005 $ 8,033 $ 8,005
Treasury Stock        
Increase (Decrease) in Shareholders' Investment        
Beginning balance (in shares) 0 0 0 0
Beginning balance $ 0 $ 0 $ 0 $ 0
Purchases of Common Stock (in shares)       (310)
Purchases of Common Stock       $ (12,303)
Shares Retired (in shares)       (310)
Shares Retired       $ 12,303
Ending balance (in shares) 0 0 0 0
Ending balance $ 0 $ 0 $ 0 $ 0
Additional Paid-in Capital        
Increase (Decrease) in Shareholders' Investment        
Beginning balance 549,130 488,100 506,179 469,468
Stock-based Compensation Expense 5,107 5,034 20,110 20,946
Exercise of Stock Options/Restricted Shares 6,321 5,931 33,760 8,482
Shares Retired       (277)
Declared Dividends 291 239 800 685
Ending balance 560,849 499,304 560,849 499,304
Retained Earnings        
Increase (Decrease) in Shareholders' Investment        
Beginning balance 7,591,157 7,435,292 7,492,952 7,313,374
Net Earnings (Loss) 176,701 162,679 584,842 597,637
Shares Retired       (12,021)
Declared Dividends (155,248) (150,404) (465,183) (451,423)
Ending balance 7,612,610 7,447,567 7,612,610 7,447,567
Accumulated Other Comprehensive Income (Loss)        
Increase (Decrease) in Shareholders' Investment        
Beginning balance (262,325) (244,887) (272,252) (255,561)
Other Comprehensive Income (Loss) (52,048) 3,277 (42,121) 13,950
Ending balance (314,373) (241,610) (314,373) (241,610)
Non- controlling Interest        
Increase (Decrease) in Shareholders' Investment        
Beginning balance 10,462 5,108 4,100 4,936
Net Earnings (Loss) 34 (108) (170) (200)
Other Comprehensive Income (Loss) (390) (402) (332) (138)
Contribution from Noncontrolling Interest     6,508  
Ending balance $ 10,106 $ 4,598 $ 10,106 $ 4,598
v3.24.2.u1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' INVESTMENT (PARENTHETICAL) - $ / shares
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Statement of Stockholders' Equity [Abstract]        
Declared Dividends (in dollars per share) $ 0.2825 $ 0.2750 $ 0.8475 $ 0.8250
v3.24.2.u1
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Operating Activities    
Net Earnings $ 584,671 $ 597,437
Adjustments to Reconcile to Net Cash Provided by (Used in) Operating Activities:    
Depreciation and Amortization 191,354 187,326
Equity in Earnings of Affiliates (39,250) (42,213)
Distributions Received from Equity Method Investees 32,997 28,160
Provision for Deferred Income Taxes (1,422) (273)
Non-cash Investment Activities (20,502) (12,047)
Stock-based Compensation Expense 20,112 20,946
Operating Lease Cost 27,869 16,497
Other Non-cash, Net 18,510 12,295
Changes in Operating Assets and Liabilities:    
Decrease (Increase) in Accounts Receivable 89,428 81,423
Decrease (Increase) in Inventories 30,596 (20,536)
Decrease (Increase) in Prepaid Expenses and Other Assets (7,719) (52,117)
Increase (Decrease) in Pension and Post-retirement Benefits 32,042 29,571
Increase (Decrease) in Accounts Payable and Accrued Expenses (95,374) (131,204)
Increase (Decrease) in Net Income Taxes Payable (5,196) 13,491
Net Cash Provided by (Used in) Operating Activities 858,117 728,756
Investing Activities    
Net Sale (Purchase) of Securities (6,106) (49)
Purchases of Property, Plant, and Equipment (172,656) (168,529)
Proceeds from Sales of Property, Plant, and Equipment 432 5,306
Proceeds from (Purchases of) Affiliates and Other Investments (6,681) (427,195)
Proceeds from Company-owned Life Insurance 8,112 1,980
Net Cash Provided by (Used in) Investing Activities (176,899) (588,489)
Financing Activities    
Proceeds from Long-term Debt 497,765 1,980
Payment of Debt Issuance Costs (1,105) 0
Repayments of Long-term Debt and Finance Leases (956,797) (6,584)
Dividends Paid on Common Stock (459,978) (442,560)
Share Repurchase 0 (12,303)
Proceeds from Exercise of Stock Options 33,784 8,489
Proceeds from Noncontrolling Interest 6,508 0
Net Cash Provided by (Used in) Financing Activities (879,823) (450,977)
Effect of Exchange Rate Changes on Cash (453) (2,273)
Increase (Decrease) in Cash and Cash Equivalents (199,057) (312,983)
Cash and Cash Equivalents at Beginning of Year 736,532 982,107
Cash and Cash Equivalents at End of Period 537,476 669,124
Supplemental Non-cash Financing and Investing Activities:    
Purchases of property, plant, and equipment included in accounts payable $ 18,635 $ 2,527
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Jul. 28, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include certain information and footnotes required by U.S. generally accepted accounting principles (GAAP) for comprehensive financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the interim period are not necessarily indicative of the results that may be expected for the full year.

These statements should be reviewed in conjunction with the consolidated financial statements and associated notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2023. The significant accounting policies used in preparing these interim consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the consolidated financial statements in the Form 10-K. The Company has determined there have been no material changes in the Company’s significant accounting policies, including estimates and assumptions, as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 29, 2023.

Rounding: Certain amounts in the Consolidated Financial Statements and associated notes may not foot due to rounding. All percentages have been calculated using unrounded amounts.

Reclassifications: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Amortization related to operating leases and debt issuance costs were reclassified from Amortization to separate line items within the operating activities section of the Consolidated Condensed Statements of Cash Flows. These reclassifications had no impact on the Consolidated Statements of Operations, Consolidated Statements of Financial Position, or the Increase (Decrease) in Cash and Cash Equivalents in the Consolidated Condensed Statements of Cash Flows.

Accounting Changes and Recent Accounting Pronouncements: 

New Accounting Pronouncements Not Yet Adopted
In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions.

In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update is intended to enhance transparency and decision usefulness of income tax disclosures. This ASU updates income tax disclosure requirements by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The update is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.

Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not relevant to the Company.
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Jul. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
NOTE B - GOODWILL AND INTANGIBLE ASSETS

Goodwill: The change in the carrying amount of goodwill for the nine months ended July 28, 2024, is:
In thousands
RetailFoodserviceInternationalTotal
Balance at October 29, 2023
$2,916,796 $1,750,594 $261,074 $4,928,464 
Foreign Currency Translation— — (4,733)(4,733)
Balance at July 28, 2024
$2,916,796 $1,750,594 $256,341 $4,923,731 

Intangible Assets: The carrying amounts for indefinite-lived intangible assets are:
In thousands
July 28, 2024October 29, 2023
Brands/Trade Names/Trademarks
$1,636,807 $1,636,807 
Other Intangibles184 184 
Foreign Currency Translation(6,893)(5,893)
Total Indefinite-lived Intangible Assets
$1,630,099 $1,631,098 

The gross carrying amount and accumulated amortization for definite-lived intangible assets are:
 July 28, 2024October 29, 2023
In thousands
Gross Carrying
Amount		Accumulated
Amortization		Gross Carrying
Amount		Accumulated
Amortization
Customer Lists/Relationships$168,239 $(90,951)$168,239 $(82,658)
Other Intangibles59,241 (19,045)59,241 (15,857)
Trade Names/Trademarks
6,210 (5,687)6,540 (5,089)
Foreign Currency Translation— (4,492)— (4,344)
Total Definite-lived Intangible Assets
$233,690 $(120,174)$234,020 $(107,947)

Amortization expense on intangible assets is as follows:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Amortization Expense$3,968 $4,605 $12,409 $13,806 

Estimated annual amortization expense on intangible assets for the five fiscal years after October 29, 2023, is as follows:
In thousands
Amortization
Expense
2024$16,381 
202514,681 
202614,210 
202713,940 
202813,009 
v3.24.2.u1
INVESTMENTS IN AFFILIATES
 9 Months Ended
Jul. 28, 2024
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENTS IN AFFILIATES
NOTE C - INVESTMENTS IN AFFILIATES

Equity in Earnings of Affiliates consists of:
 Quarter EndedNine Months Ended
In thousands
% OwnedJuly 28, 2024July 30, 2023July 28, 2024July 30, 2023
MegaMex Foods, LLC(1)
50%$3,066 $8,099 $19,444 $34,712 
Other Equity Method Investments(2)
Various (20-50%)
4,912 1,685 19,806 7,501 
Total Equity in Earnings of Affiliates
$7,977 $9,784 $39,250 $42,213 
(1)    MegaMex Foods, LLC is reflected in the Retail segment.
(2)    Other Equity Method Investments are primarily reflected in the International segment but also include corporate venturing investments.

Distributions received from equity method investees consists of:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Dividends$7,266 $14,509 $32,997 $28,160 

On December 15, 2022, the Company purchased from various minority shareholders a 29% common stock interest in PT Garudafood Putra Putri Jaya Tbk (Garudafood), a food and beverage company in Indonesia. On April 12, 2023, the Company purchased additional shares increasing the ownership interest to 30%. This investment expanded the Company’s presence in Southeast Asia to support the global execution of the entertaining and snacking strategy. The Company has the ability to exercise significant influence, but not control, over Garudafood; therefore, the investment is accounted for under the equity method.

The Company obtained its Garudafood interest for a purchase price of $425.8 million, including associated transaction costs. The transaction was funded using the Company’s cash on hand. Based on a third-party valuation, the Company’s basis difference between the fair value of the investment and proportionate share of the carrying value of Garudafood’s net assets is $324.8 million. The basis difference related to inventory, property, plant and equipment, and certain intangible assets is being amortized through Equity in Earnings of Affiliates over the associated useful lives. As of July 28, 2024, the remaining basis difference was $304.1 million, which includes the impact of foreign currency translation. Based on quoted market prices, the fair value of the common stock held in Garudafood was $258.4 million as of July 26, 2024.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $8.7 million was remaining as of July 28, 2024. This difference is being amortized through Equity in Earnings of Affiliates.
v3.24.2.u1
INVENTORIES
 9 Months Ended
Jul. 28, 2024
Inventory, Net [Abstract]  
INVENTORIES
NOTE D - INVENTORIES

Principal components of inventories are:
In thousands
July 28, 2024October 29, 2023
Finished Products$936,454 $954,432 
Raw Materials and Work-in-Process447,098 448,535 
Operating Supplies148,341 168,289 
Maintenance Materials and Parts117,755 109,151 
Total Inventories
$1,649,649 $1,680,406 
v3.24.2.u1
DERIVATIVES AND HEDGING
 9 Months Ended
Jul. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING
NOTE E - DERIVATIVES AND HEDGING

The Company uses hedging programs to manage risk associated with various commodity purchases and interest rates. These programs utilize futures, swaps, and options contracts to manage the Company’s exposure to market fluctuations. The Company has determined its designated hedging programs to be highly effective in offsetting the changes in fair value or cash flows generated by the items hedged. Effectiveness testing is performed on a quarterly basis to ascertain a high level of effectiveness for cash flow and fair value hedging programs. If the requirements of hedge accounting are no longer met, hedge accounting is discontinued immediately and any future changes to fair value are recorded directly through earnings.
Cash Flow Commodity Hedges: The Company uses futures, swaps, and options contracts to offset price fluctuations in the Company’s future purchases of grain, lean hogs, natural gas, and diesel fuel. These contracts are designated as cash flow hedges; therefore, 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 periods in which the hedged transactions affect earnings. The Company typically does not hedge its grain, natural gas, or diesel fuel exposure beyond the next two upcoming fiscal years and its lean hog exposure beyond the next fiscal year.

Fair Value Commodity Hedges: The Company designates the futures it uses to minimize the price risk assumed when fixed forward priced contracts are offered to the Company’s lean hog and grain suppliers as fair value hedges. The programs are intended to make the forward priced commodities cost nearly the same as cash market purchases at the date of delivery. Changes in the fair value of the futures contracts and the gain or loss on the hedged purchase commitment are marked-to-market through earnings and recorded on the Consolidated Statements of Financial Position as a Current Asset and Current Liability, respectively. Gains or losses related to these fair value hedges are recognized through Cost of Products Sold in the periods in which the hedged transactions affect earnings.

Cash Flow Interest Rate Hedges: In the second quarter of fiscal 2021, the Company designated two separate interest rate locks as cash flow hedges to manage interest rate risk associated with the anticipated debt transactions required to fund the acquisition of the Planters® snack nuts business. The total notional amount of the Company’s locks was $1.25 billion. In the third quarter of fiscal 2021, the associated unsecured senior notes were issued with a tenor of seven and thirty years and both locks were lifted (See Note J - Long-Term Debt and Other Borrowing Arrangements). Mark-to-market gains and losses on these instruments were deferred as a component of AOCL. The resulting gain in AOCL is reclassified to Interest Expense in the period in which the hedged transactions affect earnings.

Fair Value Interest Rate Hedge: In the first quarter of fiscal 2022, the Company entered into an interest rate swap to protect against changes in the fair value of a portion of previously issued senior unsecured notes attributable to the change in the benchmark interest rate. The hedge specifically designated the last $450 million of the notes due June 2024 (the 2024 Notes). The Company terminated the swap in the fourth quarter of fiscal 2022. The loss related to the swap was recorded as a fair value hedging adjustment to the hedged debt and was amortized through earnings over the remaining life of the debt. In the third quarter of fiscal 2024, the fair value hedging adjustment was completely amortized to correspond with the payment of the 2024 Notes upon maturity.

Other Derivatives: The Company holds certain futures and swap contracts to manage the Company’s exposure to fluctuations in grain and pork commodity markets. The Company has not applied hedge accounting to these positions. Activity related to derivatives not designated as hedges was immaterial to the consolidated financial statements during the quarter and nine months ended July 28, 2024, and July 30, 2023.

Volume: The Company’s outstanding contracts related to its commodity hedging programs include:
In millions
July 28, 2024October 29, 2023
Corn27.6 
bushels
30.7 
bushels
Lean Hogs186.3 
pounds
144.2 
pounds
Natural Gas3.5 
MMBtu
3.0 
MMBtu
Diesel Fuel
0.9 
gallons
— 
gallons

Fair Value of Derivatives: The gross fair values of the Company’s derivative instruments designated as hedges are:
In thousands
Location on Consolidated Statements of Financial Position
July 28, 2024October 29, 2023
Commodity Contracts(1)
Other Current Assets$(18,987)$(13,233)
(1)    Amounts represent the gross fair value of commodity derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its commodity hedging programs, including cash collateral, when a master netting arrangement exists between the Company and the counterparty to the derivative contract. The amount or timing of cash collateral balances may impact the classification of the commodity derivative on the Consolidated Statements of Financial Position. The gross liability position as of July 28, 2024 was offset by the right to reclaim net cash collateral of $29.3 million contained within the master netting arrangement. The gross liability position as of October 29, 2023 was offset by the right to reclaim net cash collateral of $32.2 million. See Note H - Fair Value Measurements for a discussion of these net amounts as reported on the Consolidated Statements of Financial Position.
Fair Value Hedge - Assets (Liabilities): The carrying amount of the Company’s fair value hedged assets (liabilities) are:
In thousands
Location on Consolidated Statements of Financial Position
July 28, 2024October 29, 2023
Commodity Contracts
Accounts Payable(1)
$(4,160)$(4,914)
Interest Rate Contracts
Current Maturities of Long-term Debt(2)
— (442,549)
(1)    Represents the carrying amount of fair value hedged assets and liabilities, which are offset by other assets included in master netting arrangements described above.
(2)    Represents the carrying amount of the hedged portion of the 2024 Notes. The 2024 Notes were paid on June 3, 2024, and there was no cumulative fair value hedging adjustment from discontinued hedges.

Accumulated Other Comprehensive Loss Impact: As of July 28, 2024, the Company included in AOCL hedging losses (before tax) of $25.5 million on commodity contracts and gains (before tax) of $11.7 million related to interest rate settled positions. The Company expects to recognize the majority of the losses on commodity contracts over the next twelve months. Gains on interest rate contracts offset the hedged interest payments over the tenor of the associated debt instruments.

The effect on AOCL for gains or losses (before tax) related to the Company’s derivative instruments are:
 
Gain/(Loss)
Recognized
 in AOCL(1)
Gain/(Loss)
Reclassified from
AOCL into Earnings(1)
Location on
Consolidated
Statements
of Operations
 Quarter EndedQuarter Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Cash Flow Hedges
Commodity Contracts$(26,172)$(2,600)$(1,541)$(5,758)Cost of Products Sold
Excluded Component(2)
299 423 — — 
Interest Rate Contracts
— — 247 247 Interest Expense
Gain/(Loss)
Recognized
 in AOCL(1)
Gain/(Loss)
Reclassified from
AOCL into Earnings(1)
Location on
Consolidated
Statements
of Operations
Nine Months EndedNine Months Ended
in thousandsJuly 28, 2024July 30, 2023July 28, 2024July 30, 2023
Cash Flow Hedges
Commodity Contracts$(24,487)$(34,151)$(21,297)$5,833 Cost of Products Sold
Excluded Component(2)
2,112 (268)— — 
Interest Rate Contracts
— — 741 741 Interest Expense
(1)    See Note G - Accumulated Other Comprehensive Loss for the after-tax impact of these gains or losses on Net Earnings.
(2)    Represents the time value of commodity options excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in AOCL.
Consolidated Statements of Operations Impact: The effect on the Consolidated Statements of Operations for gains or losses (before tax) related to the Company’s derivative instruments are:
Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Earnings Attributable to Hormel Foods Corporation$176,701 $162,679 $584,842 $597,637 
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL(1,541)(5,758)(21,297)5,833 
Amortization of Excluded Component from Options(472)(1,531)(2,478)(4,441)
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures(1)
1,139 1,019 5,766 (440)
Total Gain (Loss) on Commodity Contracts(2)
(874)(6,271)(18,008)952 
Cash Flow Hedges - Interest Rate Contracts
Gain (Loss) Reclassified from AOCL247 247 741 741 
Fair Value Hedge - Interest Rate Contracts
Amortization of Loss Due to Discontinuance of Fair Value Hedge(3)
(1,202)(3,125)(7,451)(9,374)
Total Gain (Loss) on Interest Rate Contracts(4)
(955)(2,878)(6,710)(8,633)
Total Gain (Loss) Recognized in Earnings$(1,828)$(9,148)$(24,718)$(7,681)

(1)    Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and nine months ended July 28, 2024, and July 30, 2023, which were offset by a corresponding gain or loss on the underlying hedged purchase commitment. Additional gains or losses related to changes in the fair value of open commodity contracts, along with the offsetting gain or loss on the hedged purchase commitment, are also marked-to-market through earnings with no impact on a net basis.
(2)    Total Gain (Loss) on Commodity Contracts is recognized in earnings through Cost of Products Sold.
(3)    Represents the fair value hedging adjustment amortized through earnings.
(4)    Total Gain (Loss) on Interest Rate Contracts is recognized in earnings through Interest Expense.
v3.24.2.u1
PENSION AND OTHER POST-RETIREMENT BENEFITS
 9 Months Ended
Jul. 28, 2024
Retirement Benefits [Abstract]  
PENSION AND OTHER POST-RETIREMENT BENEFITS
NOTE F - PENSION AND OTHER POST-RETIREMENT BENEFITS

Net periodic cost for pension and other post-retirement benefit plans consists of:
 Pension Benefits
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Service Cost$9,033 $8,902 $27,108 $26,705 
Interest Cost18,336 17,157 55,008 51,472 
Expected Return on Plan Assets(19,377)(19,571)(58,132)(58,714)
Amortization of Prior Service Cost(221)(461)(664)(1,383)
Recognized Actuarial (Gain) Loss3,317 3,325 9,951 9,976 
Net Periodic Cost
$11,086 $9,353 $33,270 $28,058 
 Post-retirement Benefits
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Service Cost$41 $62 $123 $185 
Interest Cost2,895 3,016 8,687 9,044 
Amortization of Prior Service Cost2 2 6 6 
Recognized Actuarial (Gain) Loss(317)(7)(952)(21)
Net Periodic Cost
$2,621 $3,073 $7,864 $9,214 

Non-service cost components of net pension and post-retirement benefit cost are presented within Interest and Investment Income in the Consolidated Statements of Operations.
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE LOSS
 9 Months Ended
Jul. 28, 2024
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE LOSS
NOTE G - ACCUMULATED OTHER COMPREHENSIVE LOSS

Components of Accumulated Other Comprehensive Loss are as follows:
In thousands
Foreign
Currency
Translation		Pension &
Other
Benefits
Derivatives &
Hedging
Equity
Method
Investments		Accumulated
Other
Comprehensive
Loss
Balance at April 28, 2024$(93,937)$(179,795)$8,121 $3,286 $(262,325)
Unrecognized Gains (Losses)— — 
Gross(28,685)(90)(25,873)(5,079)(59,726)
Tax Effect— — 6,286 — 6,286 
Reclassification into Net Earnings— — — — 
Gross— 2,781 
(1)
1,294 
(2)
(1,691)
(3)
2,383 
Tax Effect— (683)(308)— (991)
Change Net of Tax(28,685)2,008 (18,601)(6,770)(52,048)
Balance at July 28, 2024
$(122,621)$(177,788)$(10,481)$(3,484)$(314,373)
Balance at October 29, 2023
$(86,022)$(183,993)$(9,084)$6,847 $(272,252)
Unrecognized Gains (Losses)
Gross(36,599)(87)(22,375)(5,113)(64,174)
Tax Effect— — 5,417 — 5,417 
Reclassification into Net Earnings
Gross— 8,341 
(1)
20,555 
(2)
(5,217)
(3)
23,679 
Tax Effect— (2,049)(4,994)— (7,043)
Change Net of Tax(36,599)6,205 (1,397)(10,330)(42,121)
Balance at July 28, 2024
$(122,621)$(177,788)$(10,481)$(3,484)$(314,373)

(1)    Included in computation of net periodic cost. See Note F - Pension and Other Post-Retirement Benefits for additional information.
(2)    Included in Cost of Products Sold and Interest Expense in the Consolidated Statements of Operations. See Note E - Derivatives and Hedging for additional information.
(3)    Included in Equity in Earnings of Affiliates in the Consolidated Statements of Operations.
v3.24.2.u1
FAIR VALUE MEASUREMENTS
 9 Months Ended
Jul. 28, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE H - FAIR VALUE MEASUREMENTS

Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of the three levels below based on the inputs used in the valuation.

Level 1: Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.

Level 3: Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.

The Company’s financial assets and liabilities carried at fair value on a recurring basis and their level within the fair value hierarchy are presented in the tables below.
 Fair Value Measurements at July 28, 2024
In thousands
Total Fair
Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents(1)
$537,476 $537,008 $468 $— 
Short-term Marketable Securities(2)
24,454 4,970 19,484 — 
Other Trading Securities(3)
206,980 — 206,980 — 
Commodity Derivatives(4)
7,067 9,298 (2,231)— 
Total Assets at Fair Value$775,976 $551,276 $224,700 $— 
Liabilities at Fair Value
Deferred Compensation(3)
$61,425 $— $61,425 $— 
Total Liabilities at Fair Value$61,425 $— $61,425 $— 

 Fair Value Measurements at October 29, 2023
In thousands
Total Fair
Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents(1)
$736,532 $735,387 $1,145 $— 
Short-term Marketable Securities(2)
16,664 2,499 14,164 — 
Other Trading Securities(3)
188,162 — 188,162 — 
Commodity Derivatives(4)
9,330 9,603 (273)— 
Total Assets at Fair Value$950,688 $747,489 $203,199 $— 
Liabilities at Fair Value
Deferred Compensation(3)
$55,222 $— $55,222 $— 
Total Liabilities at Fair Value$55,222 $— $55,222 $— 

The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above:

(1)    The Company’s cash equivalents considered Level 1 consist primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts, and have a maturity date of three months or less. Cash equivalents considered Level 2 are funds holding agency bonds or securities recognized at amortized cost.

(2)    The Company holds securities as part of a portfolio maintained to generate investment income and to provide cash for operations of the Company, if necessary. The portfolio is managed by a third party who is responsible for daily trading activities, and all assets within the portfolio are highly liquid. The cash, U.S. government securities, and money market funds rated AAA held by the portfolio are classified as Level 1. The current investment portfolio also includes corporate bonds and other asset backed securities for which there is an active, quoted market. Market prices are obtained from a variety of industry providers, large financial institutions, and other third-party sources to calculate a representative daily market value, and therefore, these securities are classified as Level 2.

(3)    The Company maintains a rabbi trust to fund certain supplemental executive retirement plans and deferred compensation plans. The majority of the funds held in the rabbi trust relate to supplemental executive retirement plans and have been invested primarily in fixed income funds managed by a third party. The declared rate on these funds is set based on a formula using the yield of the general account investment portfolio supporting the fund, as adjusted for expenses and other charges. The rate is guaranteed for one year at issue and may
be reset annually on the policy anniversary, subject to a guaranteed minimum rate. As the value is based on adjusted market rates and the fixed rate is only reset on an annual basis, these funds are classified as Level 2.

Under the Company’s deferred compensation plans, participants can defer certain types of compensation and elect to receive a return based on the changes in fair value of various investment options, which include equity securities, money market accounts, bond funds, or other portfolios for which there is an active quoted market. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based on a specified percent of the U.S. Internal Revenue Service (IRS) applicable federal rates. These liabilities are classified as Level 2. The Company maintains funding in the rabbi trust generally mirroring the selections within the deferred compensation plans. These funds are managed by a third-party insurance policy, the values of which represent their cash surrender value based on the fair value of the underlying investments in the account. These policies are classified as Level 2.

The rabbi trust is included in Other Assets and deferred compensation liabilities in Other Long-term Liabilities on the Consolidated Statements of Financial Position. Securities held by the rabbi trust are classified as trading securities. Unrealized gains and losses associated with these investments are included in the Company’s earnings. During the quarter and nine months ended July 28, 2024, securities held by the rabbi trust generated gains of $4.9 million, and $18.8 million, respectively, compared to gains of $5.1 million and $12.1 million for the quarter and nine months ended July 30, 2023, respectively.

(4)    The Company’s commodity derivatives represent futures, swaps, and options contracts used in its hedging or other programs to offset price fluctuations associated with purchases of corn, natural gas, diesel fuel, hogs, and pork, and to minimize the price risk assumed when forward priced contracts are offered to the Company’s commodity suppliers. The Company’s futures and options contracts for corn are traded on the Chicago Board of Trade, while futures contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available, and these contracts are classified as Level 1. The Company holds natural gas, diesel fuel, and pork swap contracts that are over-the-counter instruments classified as Level 2. The value of the natural gas and diesel fuel swap contracts is calculated using quoted prices from the New York Mercantile Exchange, and the value of the pork swap contracts are calculated using a futures implied USDA estimated pork cut-out value. All derivatives are reviewed for potential credit risk and risk of nonperformance. The net balance for commodity derivatives is included in Other Current Assets or Accounts Payable, as appropriate, on the Consolidated Statements of Financial Position. As of July 28, 2024, the Company had recognized the right to reclaim net cash collateral of $29.3 million from various counterparties (including cash of $37.7 million less $8.4 million of realized loss). As of October 29, 2023, the Company had recognized the right to reclaim net cash collateral of $32.2 million from various counterparties (including cash of $42.6 million less $10.4 million of realized loss).

The Company’s financial assets and liabilities include accounts receivable, accounts payable, and other liabilities, for which carrying value approximates fair value. The Company does not carry its long-term debt at fair value on the Consolidated Statements of Financial Position. The fair value of long-term debt, utilizing discounted cash flows (Level 2), was $2.4 billion as of July 28, 2024, and $2.7 billion as of October 29, 2023. See Note J - Long-Term Debt and Other Borrowing Arrangements for additional information.
The Company measures certain nonfinancial assets and liabilities at fair value, which are recognized or disclosed on a nonrecurring basis (e.g., goodwill, intangible assets, and property, plant, and equipment). There were no material remeasurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the quarter and nine months ended July 28, 2024, and July 30, 2023.
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Jul. 28, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
NOTE I - COMMITMENTS AND CONTINGENCIES

Except as described below, there were no material changes outside the ordinary course of business during the quarter and nine months ended July 28, 2024, to the contractual obligations and other commitments last disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2023.

Legal Proceedings: The Company is a party to various legal proceedings related to the ongoing operation of its business, including claims both by and against the Company. At any time, such proceedings typically involve claims related to product liability, labeling, contracts, antitrust regulations, intellectual property, competition laws, employment practices, or other actions brought by employees, customers, consumers, competitors, or suppliers. The Company establishes accruals for its potential exposure, as appropriate, for claims against the Company when losses become probable and reasonably estimable. However, future developments or settlements are uncertain and may require the Company to change such accruals as proceedings progress. Resolution of any currently known matter, either individually or in the aggregate, is not expected to have a material effect on the Company’s financial condition, results of operations, or liquidity.

Pork Antitrust Litigation
Beginning in June 2018, a series of putative class action complaints were filed against the Company, as well as several other pork-processing companies and a benchmarking service called Agri Stats, in the U.S. District Court for the District of Minnesota styled In re Pork Antitrust Litigation (the Pork Antitrust Litigation). Class Plaintiffs consist of Direct Purchaser Plaintiffs, Commercial and Institutional Indirect Purchaser Plaintiffs, and Consumer Indirect Purchaser Plaintiffs. The Class Plaintiffs allege, among other things, that beginning in January 2009, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork and pork products—including through the use of Agri Stats—in violation of federal antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under
various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. Since the original filing, certain Non-Class Direct-Action Plaintiffs including the Offices of the Attorney General in New Mexico and Alaska, have opted out of class treatment and are proceeding with individual direct actions making similar claims, and others may do so in the future.

Although the Company strongly denies liability, continues to deny the allegations asserted by the Class Plaintiffs, and believes it has valid defenses, to avoid the uncertainty, risk, expense, and distraction of continued litigation involving the Class Plaintiffs, the Company executed settlement agreements providing for payments by the Company to the Direct Purchaser Plaintiffs of $4.9 million, the Commercial and Institutional Indirect Purchaser Plaintiffs of $2.4 million, and the Consumer Indirect Purchaser Plaintiffs of $4.5 million. The settlement amounts were recorded in Selling, General, and Administrative in the Consolidated Statements of Operations in the second quarter of fiscal 2024. Payments totaling $7.3 million were made in the third quarter of fiscal 2024, and $4.5 million is reflected within Accrued Expenses on the Consolidated Statements of Financial Position for the third quarter of fiscal 2024. The $4.5 million settlement amount was paid in August 2024, subsequent to the end of the third quarter.

The Company continues to defend against the claims of the Non-Class Direct-Action Plaintiffs. The Company has not recorded any liability for the non-class matters as it does not believe a loss is probable, and it cannot reasonably estimate any reasonably possible loss as the Company believes that it has valid and meritorious defenses against the allegations.

Turkey Antitrust Litigation
Beginning in December 2019, a series of putative class action complaints were filed against the Company, as well as several other turkey-processing companies and a benchmarking service called Agri Stats, in the U.S. District Court for the Northern District of Illinois styled In re Turkey Antitrust Litigation. The plaintiffs allege, among other things, that from at least 2010 to 2017, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of turkey products—including through the use of Agri Stats—in violation of federal antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees. Since the original filing, certain direct-action plaintiffs have opted out of class treatment and are proceeding with individual direct actions making similar claims, and others may do so in the future. The Company has not recorded any liability for these matters as it does not believe a loss is probable, and it cannot reasonably estimate any reasonably possible loss as the Company believes that it has valid and meritorious defenses against the allegations.

Poultry Wages Antitrust Litigation
In December 2019, a putative class of non-supervisory production and maintenance employees at poultry-processing plants in the continental U.S. filed an amended consolidated class action complaint against Jennie-O Turkey Store, Inc. and various other poultry processing companies in the U.S. District Court for the District of Maryland styled Jien, et al. v. Perdue Farms, Inc., et al. (the Poultry Wages Antitrust Litigation). In the operative amended complaint filed in February 2022, the plaintiffs allege that, since 2000, the defendants directly and through wage surveys and a benchmarking service exchanged information regarding compensation in an effort to depress and fix wages and benefits for employees at poultry-processing plants, feed mills, and hatcheries in violation of federal antitrust laws. The complaint sought, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief. In July 2022, the Court partially granted the Company’s motion to dismiss, and dismissed plaintiffs’ per se wage-fixing claim as to the Company.

Although the Company strongly denies liability, continues to deny the allegations asserted by the plaintiffs, and believes it has valid defenses, to avoid the uncertainty, risk, expense, and distraction of continued litigation, the Company executed a settlement agreement with the plaintiffs on August 20, 2024, to settle this matter for the payment of $3.5 million. The settlement remains subject to Court approval. The Company recorded the agreed-upon settlement amount in Selling, General, and Administrative in the Consolidated Statements of Operations and in Accrued Expenses on the Consolidated Statements of Financial Position for the third quarter of fiscal 2024. The agreed-upon settlement amount will be paid following preliminary Court approval.

Red Meat Wages Antitrust Litigation
In November 2022, a putative class of non-supervisory production and maintenance employees at “red meat” processing plants in the continental U.S. filed a class action complaint against the Company and various other beef- and pork-processing companies in the U.S. District Court for the District of Colorado styled Brown, et al. v. JBS USA Food Co., et al. (the Red Meat Wages Antitrust Litigation). In the operative amended complaint filed in January 2024, the plaintiffs allege that, since 2000, the defendants directly and through wage surveys and a benchmarking service exchanged information regarding compensation in an effort to depress and fix wages and benefits for employees at beef- and pork-processing plants in violation of federal antitrust laws. The complaint sought, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief.
Although the Company strongly denies liability, continues to deny the allegations asserted by the plaintiffs, and believes it has valid defenses, to avoid the uncertainty, risk, expense, and distraction of continued litigation, the Company executed a settlement agreement with the plaintiffs on August 20, 2024, to settle this matter for the payment of $13.5 million and the provision of certain data and information. The settlement remains subject to Court approval. The Company recorded the agreed-upon settlement amount in Selling, General, and Administrative in the Consolidated Statements of Operations and in Accrued Expenses on the Consolidated Statements of Financial Position for the third quarter of fiscal 2024. The agreed-upon settlement amount will be paid following preliminary Court approval.
v3.24.2.u1
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS
 9 Months Ended
Jul. 28, 2024
Debt Disclosure [Abstract]  
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS
NOTE J - LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS
Long-term Debt consists of:
In thousands
July 28, 2024October 29, 2023
Senior Unsecured Notes, with Interest at 3.050%
Interest Due Semi-annually through June 2051 Maturity Date
$600,000 $600,000 
Senior Unsecured Notes, with Interest at 1.800%
Interest Due Semi-annually through June 2030 Maturity Date
1,000,000 1,000,000 
Senior Unsecured Notes, with Interest at 1.700%
Interest Due Semi-annually through June 2028 Maturity Date
750,000 750,000 
Senior Unsecured Notes, with Interest at 4.800%
Interest Due Semi-annually through March 2027 Maturity Date
500,000 — 
Senior Unsecured Notes, with Interest at 0.650%
Interest Due Semi-annually through June 2024 Maturity Date
— 950,000 
Unamortized Discount on Senior Notes(6,897)(7,016)
Unamortized Debt Issuance Costs(16,341)(16,278)
Interest Rate Swap Liabilities(1)
— (7,451)
Finance Lease Liabilities29,600 36,085 
Other Financing Arrangements3,490 3,908 
Total2,859,853 3,309,247 
Less: Current Maturities of Long-term Debt8,232 950,529 
Long-term Debt Less Current Maturities$2,851,621 $2,358,719 
(1)    See Note E - Derivatives and Hedging for additional information.

Senior Unsecured Notes: On March 8, 2024, the Company issued senior notes in an aggregate principal amount of $500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800% per annum. Interest accrues on the notes from March 8, 2024, and is payable semi-annually in arrears on March 30 and September 30 of each year, commencing September 30, 2024. The notes may be redeemed in whole or in part at any time at the applicable redemption prices. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

On June 3, 2021, the Company issued $950.0 million aggregate principal amount of its 0.650% notes due June 2024 (2024 Notes), $750.0 million aggregate principal amount of its 1.700% notes due June 2028 (2028 Notes), and $600.0 million aggregate principal amount of its 3.050% notes due June 2051 (2051 Notes). The notes may be redeemed in whole or in part at any time at the applicable redemption price. Interest accrues per annum at the stated rates and is paid semi-annually in arrears on June 3 and December 3 of each year, commencing December 3, 2021. Interest rate risk was hedged utilizing interest rate locks on the 2028 Notes and 2051 Notes. The Company lifted the hedges in conjunction with the issuance of these notes. See Note E - Derivatives and Hedging for additional information. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. The Company repaid the $950.0 million 2024 Notes upon maturity on June 3, 2024.

On June 11, 2020, the Company issued senior notes in an aggregate principal amount of $1.0 billion due June 2030. The notes bear interest at a fixed rate of 1.800% per annum, with interest paid semi-annually in arrears on June 11 and December 11 of each year, commencing December 11, 2020. The notes may be redeemed in whole or in part at any time at the applicable redemption prices. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

Unsecured Revolving Credit Facility: On May 6, 2021, the Company entered into an unsecured revolving credit agreement with Wells Fargo Bank, National Association as administrative agent, swingline lender and issuing lender, U.S. Bank National Association, JPMorgan Chase Bank, N.A. and BofA Securities, Inc. as syndication agents and the lenders party thereto. The
revolving credit agreement provides for an unsecured revolving credit facility with an aggregate principal commitment amount at any time outstanding of up to $750.0 million with an uncommitted increase option of an additional $375.0 million upon the satisfaction of certain conditions.

On April 17, 2023, the Company entered into a first amendment (Amendment) to the Company’s $750.0 million unsecured revolving credit agreement. The Amendment provided for, among other things (i) the replacement of London Interbank Offered Rate (LIBOR) with Term Secured Overnight Financing Rate (SOFR) and Daily Simple Singapore Overnight Rate Average (SORA) for the Eurocurrency Rate for U.S. Dollars and Singapore Dollars, including applicable credit spread adjustments and relevant SOFR benchmark provisions, (ii) permitting two one-year extension options to be exercised at any anniversary, (iii) removing the change in debt ratings notice requirement, (iv) shortening the notice period requirements for Base Rate Loans to allow for same day notice, and (v) increasing the number of permitted Interest Periods from 8 to 15.

The unsecured revolving line of credit bears interest, at the Company’s election, at either a Base Rate plus margin of 0.0% to 0.150% or the Adjusted Term SOFR, Adjusted Daily Simple Risk-Free Rate (RFR) or Eurocurrency Rate plus margin of 0.575% to 1.150%. A variable fee of 0.050% to 0.100% is paid for the availability of this credit line. Extensions of credit under the facility may be made in the form of revolving loans, swingline loans, and letters of credit. The lending commitments under the agreement are scheduled to expire on May 6, 2026, at which time the Company will be required to pay in full all obligations then outstanding. As of July 28, 2024, and October 29, 2023, the Company had no outstanding draws from this facility.

Debt Covenants: The Company is required by certain covenants in its debt agreements to maintain specified levels of financial ratios and financial position. As of July 28, 2024, the Company was in compliance with all covenants.
v3.24.2.u1
INCOME TAXES
 9 Months Ended
Jul. 28, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE K - INCOME TAXES

The Company’s tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events that may occur during the quarter. The effects of tax legislation are recognized in the period in which the law is enacted. The deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years the related temporary differences are anticipated to reverse.

The Company’s effective tax rate for the quarter and nine months ended July 28, 2024, was 21.7% and 22.6%, respectively, compared to 21.7% and 22.2%, respectively, for the corresponding periods a year ago. The Company benefited from the purchase of federal transferable energy credits in the third quarter of fiscal 2024. The Company benefited from the impact of higher federal deductions in the third quarter of fiscal 2023.

Unrecognized tax benefits, including interest and penalties, are recorded in Other Long-term Liabilities. If recognized as of July 28, 2024, these benefits would impact the Company’s effective tax rate by $17.2 million compared to $19.6 million as of July 30, 2023. The Company includes accrued interest and penalties related to uncertain tax positions in Provision for Income Taxes, with immaterial losses included during the quarter ended July 28, 2024, and July 30, 2023. The amount of accrued interest and penalties associated with unrecognized tax benefits was $2.7 million at July 28, 2024, and $3.2 million at July 30, 2023.

The Company is regularly audited by federal and state taxing authorities. The IRS concluded its examination of fiscal 2021 in the second quarter of fiscal 2023. The IRS placed the Company in the Bridge phase of the Compliance Assurance Process (CAP) for fiscal years 2020 and 2023. In this phase, the IRS will not accept any disclosures, conduct any reviews, or provide any assurances. The Company has elected to participate in CAP for fiscal years through 2025. The objective of CAP is to contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time.

The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2015. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change based on the status of the examinations, as of July 28, 2024, it was not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.
v3.24.2.u1
EARNINGS PER SHARE DATA
 9 Months Ended
Jul. 28, 2024
Earnings Per Share [Abstract]  
EARNINGS PER SHARE DATA
NOTE L - EARNINGS PER SHARE DATA
 
The reported net earnings attributable to the Company were used when computing basic and diluted earnings per share. Diluted earnings per share was calculated using the treasury stock method. The shares used as the denominator for those computations are as follows:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Basic Weighted-average Shares Outstanding
548,685 546,358 547,858 546,389 
Dilutive Potential Common Shares581 2,279 766 2,838 
Diluted Weighted-average Shares Outstanding
549,266 548,637 548,624 549,227 
Antidilutive Potential Common Shares17,560 7,589 17,888 5,998 
v3.24.2.u1
SEGMENT REPORTING
 9 Months Ended
Jul. 28, 2024
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE M - SEGMENT REPORTING

The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following three segments: Retail, Foodservice, and International, which is consistent with how the Company’s chief operating decision maker (CODM) assesses performance and allocates resources.

The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in the retail market. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.

The Foodservice segment consists primarily of the processing, marketing, and sale of food and nutritional products for foodservice, convenience store, and commercial customers.

The International segment processes, markets, and sells Company products internationally. This segment also includes the results from the Company’s international joint ventures, international equity method investments, and international royalty arrangements.

Financial measures for each of the Company’s reportable segments are set forth below. Intersegment sales are eliminated in consolidation and are not reviewed when evaluating segment performance. The Company does not allocate deferred compensation, non-recurring expenses associated with the transform and modernize initiative, investment income, interest expense, or interest income to its segments when measuring performance. The Company also retains various other income and expense items at the corporate level. Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing investments and noncontrolling interests are excluded. These items are included below as Net Unallocated Expense and Noncontrolling Interest when reconciling to Earnings Before Income Taxes.

The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the profit and other financial information shown below.
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Sales  
Retail$1,767,251 $1,891,746 $5,467,078 $5,765,786 
Foodservice954,021 890,949 2,799,110 2,607,140 
International177,171 180,605 516,517 539,005 
Total Net Sales$2,898,443 $2,963,299 $8,782,706 $8,911,930 
Segment Profit
Retail$127,932 $151,128 $409,836 $459,031 
Foodservice142,487 146,270 441,952 428,110 
International21,792 12,222 65,026 45,723 
Total Segment Profit292,211 309,619 916,814 932,863 
Net Unallocated Expense66,526 101,886 161,239 164,997 
Noncontrolling Interest34 (108)(170)(200)
Earnings Before Income Taxes$225,719 $207,626 $755,404 $767,666 

The Company’s products primarily consist of meat and other food products. Total revenue contributed by classes of similar products are: 
Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Perishable$2,115,087 $2,068,787 $6,251,076 $6,222,485 
Shelf-stable783,356 894,512 2,531,630 2,689,445 
Total Net Sales$2,898,443 $2,963,299 $8,782,706 $8,911,930 

Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration. Shelf-stable includes canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and other items that do not require refrigeration.
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Pay vs Performance Disclosure        
Net Earnings Attributable to Hormel Foods Corporation $ 176,701 $ 162,679 $ 584,842 $ 597,637
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended
Jul. 28, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Jul. 28, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation: The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include certain information and footnotes required by U.S. generally accepted accounting principles (GAAP) for comprehensive financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the interim period are not necessarily indicative of the results that may be expected for the full year.
These statements should be reviewed in conjunction with the consolidated financial statements and associated notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 29, 2023. The significant accounting policies used in preparing these interim consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the consolidated financial statements in the Form 10-K. The Company has determined there have been no material changes in the Company’s significant accounting policies, including estimates and assumptions, as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 29, 2023.
Reclassifications
Reclassifications: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. Amortization related to operating leases and debt issuance costs were reclassified from Amortization to separate line items within the operating activities section of the Consolidated Condensed Statements of Cash Flows. These reclassifications had no impact on the Consolidated Statements of Operations, Consolidated Statements of Financial Position, or the Increase (Decrease) in Cash and Cash Equivalents in the Consolidated Condensed Statements of Cash Flows.
Accounting Changes and Recent Accounting Pronouncements
Accounting Changes and Recent Accounting Pronouncements: 

New Accounting Pronouncements Not Yet Adopted
In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The update is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable segment, and any additional measures of a segment’s profit or loss used by the CODM when deciding how to allocate resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods. The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and requires retrospective application to all prior periods presented in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions.

In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update is intended to enhance transparency and decision usefulness of income tax disclosures. This ASU updates income tax disclosure requirements by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The update is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently assessing the timing and impact of adopting the updated provisions.

Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not relevant to the Company.
Fair Value Measurements
Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of the three levels below based on the inputs used in the valuation.

Level 1: Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.

Level 3: Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.
Segment Reporting
The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following three segments: Retail, Foodservice, and International, which is consistent with how the Company’s chief operating decision maker (CODM) assesses performance and allocates resources.

The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in the retail market. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.

The Foodservice segment consists primarily of the processing, marketing, and sale of food and nutritional products for foodservice, convenience store, and commercial customers.

The International segment processes, markets, and sells Company products internationally. This segment also includes the results from the Company’s international joint ventures, international equity method investments, and international royalty arrangements.

Financial measures for each of the Company’s reportable segments are set forth below. Intersegment sales are eliminated in consolidation and are not reviewed when evaluating segment performance. The Company does not allocate deferred compensation, non-recurring expenses associated with the transform and modernize initiative, investment income, interest expense, or interest income to its segments when measuring performance. The Company also retains various other income and expense items at the corporate level. Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing investments and noncontrolling interests are excluded. These items are included below as Net Unallocated Expense and Noncontrolling Interest when reconciling to Earnings Before Income Taxes.
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 9 Months Ended
Jul. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of changes in the carrying amount of goodwill The change in the carrying amount of goodwill for the nine months ended July 28, 2024, is:
In thousands
RetailFoodserviceInternationalTotal
Balance at October 29, 2023
$2,916,796 $1,750,594 $261,074 $4,928,464 
Foreign Currency Translation— — (4,733)(4,733)
Balance at July 28, 2024
$2,916,796 $1,750,594 $256,341 $4,923,731 
Schedule of carrying amounts for indefinite-lived intangible assets The carrying amounts for indefinite-lived intangible assets are:
In thousands
July 28, 2024October 29, 2023
Brands/Trade Names/Trademarks
$1,636,807 $1,636,807 
Other Intangibles184 184 
Foreign Currency Translation(6,893)(5,893)
Total Indefinite-lived Intangible Assets
$1,630,099 $1,631,098 
Schedule of gross carrying amount and accumulated amortization for definite-lived intangible assets
The gross carrying amount and accumulated amortization for definite-lived intangible assets are:
 July 28, 2024October 29, 2023
In thousands
Gross Carrying
Amount		Accumulated
Amortization		Gross Carrying
Amount		Accumulated
Amortization
Customer Lists/Relationships$168,239 $(90,951)$168,239 $(82,658)
Other Intangibles59,241 (19,045)59,241 (15,857)
Trade Names/Trademarks
6,210 (5,687)6,540 (5,089)
Foreign Currency Translation— (4,492)— (4,344)
Total Definite-lived Intangible Assets
$233,690 $(120,174)$234,020 $(107,947)
Schedule of amortization expense
Amortization expense on intangible assets is as follows:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Amortization Expense$3,968 $4,605 $12,409 $13,806 
Schedule of estimated annual amortization expense
Estimated annual amortization expense on intangible assets for the five fiscal years after October 29, 2023, is as follows:
In thousands
Amortization
Expense
2024$16,381 
202514,681 
202614,210 
202713,940 
202813,009 
v3.24.2.u1
INVESTMENTS IN AFFILIATES (Tables)
 9 Months Ended
Jul. 28, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of equity in earnings of affiliates
Equity in Earnings of Affiliates consists of:
 Quarter EndedNine Months Ended
In thousands
% OwnedJuly 28, 2024July 30, 2023July 28, 2024July 30, 2023
MegaMex Foods, LLC(1)
50%$3,066 $8,099 $19,444 $34,712 
Other Equity Method Investments(2)
Various (20-50%)
4,912 1,685 19,806 7,501 
Total Equity in Earnings of Affiliates
$7,977 $9,784 $39,250 $42,213 
(1)    MegaMex Foods, LLC is reflected in the Retail segment.
(2)    Other Equity Method Investments are primarily reflected in the International segment but also include corporate venturing investments.
Schedule of distributions received from equity method investees
Distributions received from equity method investees consists of:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Dividends$7,266 $14,509 $32,997 $28,160 
v3.24.2.u1
INVENTORIES (Tables)
 9 Months Ended
Jul. 28, 2024
Inventory, Net [Abstract]  
Schedule of principal components of inventories
Principal components of inventories are:
In thousands
July 28, 2024October 29, 2023
Finished Products$936,454 $954,432 
Raw Materials and Work-in-Process447,098 448,535 
Operating Supplies148,341 168,289 
Maintenance Materials and Parts117,755 109,151 
Total Inventories
$1,649,649 $1,680,406 
v3.24.2.u1
DERIVATIVES AND HEDGING (Tables)
 9 Months Ended
Jul. 28, 2024
Derivative [Line Items]  
Schedule of fair values of derivative instruments The gross fair values of the Company’s derivative instruments designated as hedges are:
In thousands
Location on Consolidated Statements of Financial Position
July 28, 2024October 29, 2023
Commodity Contracts(1)
Other Current Assets$(18,987)$(13,233)
(1)    Amounts represent the gross fair value of commodity derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its commodity hedging programs, including cash collateral, when a master netting arrangement exists between the Company and the counterparty to the derivative contract. The amount or timing of cash collateral balances may impact the classification of the commodity derivative on the Consolidated Statements of Financial Position. The gross liability position as of July 28, 2024 was offset by the right to reclaim net cash collateral of $29.3 million contained within the master netting arrangement. The gross liability position as of October 29, 2023 was offset by the right to reclaim net cash collateral of $32.2 million. See Note H - Fair Value Measurements for a discussion of these net amounts as reported on the Consolidated Statements of Financial Position.
Schedule of fair value hedge assets (liabilities) The carrying amount of the Company’s fair value hedged assets (liabilities) are:
In thousands
Location on Consolidated Statements of Financial Position
July 28, 2024October 29, 2023
Commodity Contracts
Accounts Payable(1)
$(4,160)$(4,914)
Interest Rate Contracts
Current Maturities of Long-term Debt(2)
— (442,549)
(1)    Represents the carrying amount of fair value hedged assets and liabilities, which are offset by other assets included in master netting arrangements described above.
(2)    Represents the carrying amount of the hedged portion of the 2024 Notes. The 2024 Notes were paid on June 3, 2024, and there was no cumulative fair value hedging adjustment from discontinued hedges.
Schedule of gains or losses related to derivative instruments
The effect on AOCL for gains or losses (before tax) related to the Company’s derivative instruments are:
 
Gain/(Loss)
Recognized
 in AOCL(1)
Gain/(Loss)
Reclassified from
AOCL into Earnings(1)
Location on
Consolidated
Statements
of Operations
 Quarter EndedQuarter Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Cash Flow Hedges
Commodity Contracts$(26,172)$(2,600)$(1,541)$(5,758)Cost of Products Sold
Excluded Component(2)
299 423 — — 
Interest Rate Contracts
— — 247 247 Interest Expense
Gain/(Loss)
Recognized
 in AOCL(1)
Gain/(Loss)
Reclassified from
AOCL into Earnings(1)
Location on
Consolidated
Statements
of Operations
Nine Months EndedNine Months Ended
in thousandsJuly 28, 2024July 30, 2023July 28, 2024July 30, 2023
Cash Flow Hedges
Commodity Contracts$(24,487)$(34,151)$(21,297)$5,833 Cost of Products Sold
Excluded Component(2)
2,112 (268)— — 
Interest Rate Contracts
— — 741 741 Interest Expense
(1)    See Note G - Accumulated Other Comprehensive Loss for the after-tax impact of these gains or losses on Net Earnings.
(2)    Represents the time value of commodity options excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in AOCL.
Consolidated Statements of Operations Impact: The effect on the Consolidated Statements of Operations for gains or losses (before tax) related to the Company’s derivative instruments are:
Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Earnings Attributable to Hormel Foods Corporation$176,701 $162,679 $584,842 $597,637 
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL(1,541)(5,758)(21,297)5,833 
Amortization of Excluded Component from Options(472)(1,531)(2,478)(4,441)
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures(1)
1,139 1,019 5,766 (440)
Total Gain (Loss) on Commodity Contracts(2)
(874)(6,271)(18,008)952 
Cash Flow Hedges - Interest Rate Contracts
Gain (Loss) Reclassified from AOCL247 247 741 741 
Fair Value Hedge - Interest Rate Contracts
Amortization of Loss Due to Discontinuance of Fair Value Hedge(3)
(1,202)(3,125)(7,451)(9,374)
Total Gain (Loss) on Interest Rate Contracts(4)
(955)(2,878)(6,710)(8,633)
Total Gain (Loss) Recognized in Earnings$(1,828)$(9,148)$(24,718)$(7,681)

(1)    Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and nine months ended July 28, 2024, and July 30, 2023, which were offset by a corresponding gain or loss on the underlying hedged purchase commitment. Additional gains or losses related to changes in the fair value of open commodity contracts, along with the offsetting gain or loss on the hedged purchase commitment, are also marked-to-market through earnings with no impact on a net basis.
(2)    Total Gain (Loss) on Commodity Contracts is recognized in earnings through Cost of Products Sold.
(3)    Represents the fair value hedging adjustment amortized through earnings.
(4)    Total Gain (Loss) on Interest Rate Contracts is recognized in earnings through Interest Expense.
Cash Flow Hedges  
Derivative [Line Items]  
Schedule of outstanding commodity futures contracts The Company’s outstanding contracts related to its commodity hedging programs include:
In millions
July 28, 2024October 29, 2023
Corn27.6 
bushels
30.7 
bushels
Lean Hogs186.3 
pounds
144.2 
pounds
Natural Gas3.5 
MMBtu
3.0 
MMBtu
Diesel Fuel
0.9 
gallons
— 
gallons
v3.24.2.u1
PENSION AND OTHER POST-RETIREMENT BENEFITS (Tables)
 9 Months Ended
Jul. 28, 2024
Retirement Benefits [Abstract]  
Schedule of net periodic cost of defined benefit plans
Net periodic cost for pension and other post-retirement benefit plans consists of:
 Pension Benefits
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Service Cost$9,033 $8,902 $27,108 $26,705 
Interest Cost18,336 17,157 55,008 51,472 
Expected Return on Plan Assets(19,377)(19,571)(58,132)(58,714)
Amortization of Prior Service Cost(221)(461)(664)(1,383)
Recognized Actuarial (Gain) Loss3,317 3,325 9,951 9,976 
Net Periodic Cost
$11,086 $9,353 $33,270 $28,058 
 Post-retirement Benefits
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Service Cost$41 $62 $123 $185 
Interest Cost2,895 3,016 8,687 9,044 
Amortization of Prior Service Cost2 2 6 6 
Recognized Actuarial (Gain) Loss(317)(7)(952)(21)
Net Periodic Cost
$2,621 $3,073 $7,864 $9,214 
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)
 9 Months Ended
Jul. 28, 2024
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]  
Schedule of components of accumulated other comprehensive loss
Components of Accumulated Other Comprehensive Loss are as follows:
In thousands
Foreign
Currency
Translation		Pension &
Other
Benefits
Derivatives &
Hedging
Equity
Method
Investments		Accumulated
Other
Comprehensive
Loss
Balance at April 28, 2024$(93,937)$(179,795)$8,121 $3,286 $(262,325)
Unrecognized Gains (Losses)— — 
Gross(28,685)(90)(25,873)(5,079)(59,726)
Tax Effect— — 6,286 — 6,286 
Reclassification into Net Earnings— — — — 
Gross— 2,781 
(1)
1,294 
(2)
(1,691)
(3)
2,383 
Tax Effect— (683)(308)— (991)
Change Net of Tax(28,685)2,008 (18,601)(6,770)(52,048)
Balance at July 28, 2024
$(122,621)$(177,788)$(10,481)$(3,484)$(314,373)
Balance at October 29, 2023
$(86,022)$(183,993)$(9,084)$6,847 $(272,252)
Unrecognized Gains (Losses)
Gross(36,599)(87)(22,375)(5,113)(64,174)
Tax Effect— — 5,417 — 5,417 
Reclassification into Net Earnings
Gross— 8,341 
(1)
20,555 
(2)
(5,217)
(3)
23,679 
Tax Effect— (2,049)(4,994)— (7,043)
Change Net of Tax(36,599)6,205 (1,397)(10,330)(42,121)
Balance at July 28, 2024
$(122,621)$(177,788)$(10,481)$(3,484)$(314,373)

(1)    Included in computation of net periodic cost. See Note F - Pension and Other Post-Retirement Benefits for additional information.
(2)    Included in Cost of Products Sold and Interest Expense in the Consolidated Statements of Operations. See Note E - Derivatives and Hedging for additional information.
(3)    Included in Equity in Earnings of Affiliates in the Consolidated Statements of Operations.
v3.24.2.u1
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Jul. 28, 2024
Fair Value Disclosures [Abstract]  
Schedule of financial assets and liabilities carried at fair value on a recurring basis
The Company’s financial assets and liabilities carried at fair value on a recurring basis and their level within the fair value hierarchy are presented in the tables below.
 Fair Value Measurements at July 28, 2024
In thousands
Total Fair
Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents(1)
$537,476 $537,008 $468 $— 
Short-term Marketable Securities(2)
24,454 4,970 19,484 — 
Other Trading Securities(3)
206,980 — 206,980 — 
Commodity Derivatives(4)
7,067 9,298 (2,231)— 
Total Assets at Fair Value$775,976 $551,276 $224,700 $— 
Liabilities at Fair Value
Deferred Compensation(3)
$61,425 $— $61,425 $— 
Total Liabilities at Fair Value$61,425 $— $61,425 $— 

 Fair Value Measurements at October 29, 2023
In thousands
Total Fair
Value		Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents(1)
$736,532 $735,387 $1,145 $— 
Short-term Marketable Securities(2)
16,664 2,499 14,164 — 
Other Trading Securities(3)
188,162 — 188,162 — 
Commodity Derivatives(4)
9,330 9,603 (273)— 
Total Assets at Fair Value$950,688 $747,489 $203,199 $— 
Liabilities at Fair Value
Deferred Compensation(3)
$55,222 $— $55,222 $— 
Total Liabilities at Fair Value$55,222 $— $55,222 $— 

The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above:

(1)    The Company’s cash equivalents considered Level 1 consist primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts, and have a maturity date of three months or less. Cash equivalents considered Level 2 are funds holding agency bonds or securities recognized at amortized cost.

(2)    The Company holds securities as part of a portfolio maintained to generate investment income and to provide cash for operations of the Company, if necessary. The portfolio is managed by a third party who is responsible for daily trading activities, and all assets within the portfolio are highly liquid. The cash, U.S. government securities, and money market funds rated AAA held by the portfolio are classified as Level 1. The current investment portfolio also includes corporate bonds and other asset backed securities for which there is an active, quoted market. Market prices are obtained from a variety of industry providers, large financial institutions, and other third-party sources to calculate a representative daily market value, and therefore, these securities are classified as Level 2.

(3)    The Company maintains a rabbi trust to fund certain supplemental executive retirement plans and deferred compensation plans. The majority of the funds held in the rabbi trust relate to supplemental executive retirement plans and have been invested primarily in fixed income funds managed by a third party. The declared rate on these funds is set based on a formula using the yield of the general account investment portfolio supporting the fund, as adjusted for expenses and other charges. The rate is guaranteed for one year at issue and may
be reset annually on the policy anniversary, subject to a guaranteed minimum rate. As the value is based on adjusted market rates and the fixed rate is only reset on an annual basis, these funds are classified as Level 2.

Under the Company’s deferred compensation plans, participants can defer certain types of compensation and elect to receive a return based on the changes in fair value of various investment options, which include equity securities, money market accounts, bond funds, or other portfolios for which there is an active quoted market. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based on a specified percent of the U.S. Internal Revenue Service (IRS) applicable federal rates. These liabilities are classified as Level 2. The Company maintains funding in the rabbi trust generally mirroring the selections within the deferred compensation plans. These funds are managed by a third-party insurance policy, the values of which represent their cash surrender value based on the fair value of the underlying investments in the account. These policies are classified as Level 2.

The rabbi trust is included in Other Assets and deferred compensation liabilities in Other Long-term Liabilities on the Consolidated Statements of Financial Position. Securities held by the rabbi trust are classified as trading securities. Unrealized gains and losses associated with these investments are included in the Company’s earnings. During the quarter and nine months ended July 28, 2024, securities held by the rabbi trust generated gains of $4.9 million, and $18.8 million, respectively, compared to gains of $5.1 million and $12.1 million for the quarter and nine months ended July 30, 2023, respectively.

(4)    The Company’s commodity derivatives represent futures, swaps, and options contracts used in its hedging or other programs to offset price fluctuations associated with purchases of corn, natural gas, diesel fuel, hogs, and pork, and to minimize the price risk assumed when forward priced contracts are offered to the Company’s commodity suppliers. The Company’s futures and options contracts for corn are traded on the Chicago Board of Trade, while futures contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available, and these contracts are classified as Level 1. The Company holds natural gas, diesel fuel, and pork swap contracts that are over-the-counter instruments classified as Level 2. The value of the natural gas and diesel fuel swap contracts is calculated using quoted prices from the New York Mercantile Exchange, and the value of the pork swap contracts are calculated using a futures implied USDA estimated pork cut-out value. All derivatives are reviewed for potential credit risk and risk of nonperformance. The net balance for commodity derivatives is included in Other Current Assets or Accounts Payable, as appropriate, on the Consolidated Statements of Financial Position. As of July 28, 2024, the Company had recognized the right to reclaim net cash collateral of $29.3 million from various counterparties (including cash of $37.7 million less $8.4 million of realized loss). As of October 29, 2023, the Company had recognized the right to reclaim net cash collateral of $32.2 million from various counterparties (including cash of $42.6 million less $10.4 million of realized loss).
v3.24.2.u1
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS (Tables)
 9 Months Ended
Jul. 28, 2024
Debt Disclosure [Abstract]  
Schedule of long-term debt
Long-term Debt consists of:
In thousands
July 28, 2024October 29, 2023
Senior Unsecured Notes, with Interest at 3.050%
Interest Due Semi-annually through June 2051 Maturity Date
$600,000 $600,000 
Senior Unsecured Notes, with Interest at 1.800%
Interest Due Semi-annually through June 2030 Maturity Date
1,000,000 1,000,000 
Senior Unsecured Notes, with Interest at 1.700%
Interest Due Semi-annually through June 2028 Maturity Date
750,000 750,000 
Senior Unsecured Notes, with Interest at 4.800%
Interest Due Semi-annually through March 2027 Maturity Date
500,000 — 
Senior Unsecured Notes, with Interest at 0.650%
Interest Due Semi-annually through June 2024 Maturity Date
— 950,000 
Unamortized Discount on Senior Notes(6,897)(7,016)
Unamortized Debt Issuance Costs(16,341)(16,278)
Interest Rate Swap Liabilities(1)
— (7,451)
Finance Lease Liabilities29,600 36,085 
Other Financing Arrangements3,490 3,908 
Total2,859,853 3,309,247 
Less: Current Maturities of Long-term Debt8,232 950,529 
Long-term Debt Less Current Maturities$2,851,621 $2,358,719 
(1)    See Note E - Derivatives and Hedging for additional information.
v3.24.2.u1
EARNINGS PER SHARE DATA (Tables)
 9 Months Ended
Jul. 28, 2024
Earnings Per Share [Abstract]  
Schedule of denominator for the computation of basic and diluted earnings per share The shares used as the denominator for those computations are as follows:
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Basic Weighted-average Shares Outstanding
548,685 546,358 547,858 546,389 
Dilutive Potential Common Shares581 2,279 766 2,838 
Diluted Weighted-average Shares Outstanding
549,266 548,637 548,624 549,227 
Antidilutive Potential Common Shares17,560 7,589 17,888 5,998 
v3.24.2.u1
SEGMENT REPORTING (Tables)
 9 Months Ended
Jul. 28, 2024
Segment Reporting [Abstract]  
Schedule of sales and operating profits for each of the reportable segments and reconciliation to earnings before income taxes
The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the profit and other financial information shown below.
 Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Net Sales  
Retail$1,767,251 $1,891,746 $5,467,078 $5,765,786 
Foodservice954,021 890,949 2,799,110 2,607,140 
International177,171 180,605 516,517 539,005 
Total Net Sales$2,898,443 $2,963,299 $8,782,706 $8,911,930 
Segment Profit
Retail$127,932 $151,128 $409,836 $459,031 
Foodservice142,487 146,270 441,952 428,110 
International21,792 12,222 65,026 45,723 
Total Segment Profit292,211 309,619 916,814 932,863 
Net Unallocated Expense66,526 101,886 161,239 164,997 
Noncontrolling Interest34 (108)(170)(200)
Earnings Before Income Taxes$225,719 $207,626 $755,404 $767,666 
Schedule of total revenues contributed by sales channel Total revenue contributed by classes of similar products are: 
Quarter EndedNine Months Ended
In thousands
July 28, 2024July 30, 2023July 28, 2024July 30, 2023
Perishable$2,115,087 $2,068,787 $6,251,076 $6,222,485 
Shelf-stable783,356 894,512 2,531,630 2,689,445 
Total Net Sales$2,898,443 $2,963,299 $8,782,706 $8,911,930 
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amounts of Goodwill (Details)
$ in Thousands
 9 Months Ended
Jul. 28, 2024
USD ($)
Changes in the carrying amount of goodwill  
Beginning Balance $ 4,928,464
Foreign Currency Translation (4,733)
Ending Balance 4,923,731
Retail  
Changes in the carrying amount of goodwill  
Beginning Balance 2,916,796
Foreign Currency Translation 0
Ending Balance 2,916,796
Foodservice  
Changes in the carrying amount of goodwill  
Beginning Balance 1,750,594
Foreign Currency Translation 0
Ending Balance 1,750,594
International  
Changes in the carrying amount of goodwill  
Beginning Balance 261,074
Foreign Currency Translation (4,733)
Ending Balance $ 256,341
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS - Indefinite Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Jul. 28, 2024
Oct. 29, 2023
Carrying amounts for indefinite-lived intangible assets    
Total Indefinite-lived Intangible Assets $ 1,630,099 $ 1,631,098
Brands/Trade Names/Trademarks    
Carrying amounts for indefinite-lived intangible assets    
Total Indefinite-lived Intangible Assets 1,636,807 1,636,807
Other Intangibles    
Carrying amounts for indefinite-lived intangible assets    
Total Indefinite-lived Intangible Assets 184 184
Foreign Currency Translation    
Carrying amounts for indefinite-lived intangible assets    
Total Indefinite-lived Intangible Assets $ 6,893 $ 5,893
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS - Definite Lived Intangibles Assets (Details) - USD ($)
$ in Thousands
Jul. 28, 2024
Oct. 29, 2023
Gross carrying amount and accumulated amortization for definite-lived intangible assets    
Gross Carrying Amount $ 233,690 $ 234,020
Accumulated Amortization (120,174) (107,947)
Customer Lists/Relationships    
Gross carrying amount and accumulated amortization for definite-lived intangible assets    
Gross Carrying Amount 168,239 168,239
Accumulated Amortization (90,951) (82,658)
Other Intangibles    
Gross carrying amount and accumulated amortization for definite-lived intangible assets    
Gross Carrying Amount 59,241 59,241
Accumulated Amortization (19,045) (15,857)
Trade Names/Trademarks    
Gross carrying amount and accumulated amortization for definite-lived intangible assets    
Gross Carrying Amount 6,210 6,540
Accumulated Amortization (5,687) (5,089)
Foreign Currency Translation    
Gross carrying amount and accumulated amortization for definite-lived intangible assets    
Gross Carrying Amount 0 0
Accumulated Amortization $ (4,492) $ (4,344)
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization Expense $ 3,968 $ 4,605 $ 12,409 $ 13,806
v3.24.2.u1
GOODWILL AND INTANGIBLE ASSETS - Estimated Annual Amortization Expense (Details)
$ in Thousands
Oct. 29, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2024 $ 16,381
2025 14,681
2026 14,210
2027 13,940
2028 $ 13,009
v3.24.2.u1
INVESTMENTS IN AFFILIATES - Schedule of Equity in Earnings of Affiliates (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Investments In and Receivables from Affiliates        
Total Equity in Earnings of Affiliates $ 7,977 $ 9,784 $ 39,250 $ 42,213
MegaMex Foods, LLC        
Investments In and Receivables from Affiliates        
% Owned 50.00% 50.00% 50.00% 50.00%
Total Equity in Earnings of Affiliates $ 3,066 $ 8,099 $ 19,444 $ 34,712
Other Equity Method Investments        
Investments In and Receivables from Affiliates        
Total Equity in Earnings of Affiliates $ 4,912 $ 1,685 $ 19,806 $ 7,501
Other Equity Method Investments | Minimum        
Investments In and Receivables from Affiliates        
% Owned 20.00% 20.00% 20.00% 20.00%
Other Equity Method Investments | Maximum        
Investments In and Receivables from Affiliates        
% Owned 50.00% 50.00% 50.00% 50.00%
v3.24.2.u1
INVESTMENTS IN AFFILIATES - Schedule of Distributions Received from Equity Method Investees (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Investment, Affiliated Issuer        
Investments In and Receivables from Affiliates        
Dividends $ 7,266 $ 14,509 $ 32,997 $ 28,160
v3.24.2.u1
INVESTMENTS IN AFFILIATES - Narrative (Details) - USD ($)
$ in Millions
Dec. 15, 2022
Jul. 28, 2024
Jul. 26, 2024
Jul. 30, 2023
Apr. 12, 2023
Oct. 26, 2009
Garudafood            
Schedule of Equity Method Investments [Line Items]            
Ownership percentage 29.00%       30.00%  
Purchase price $ 425.8          
Basis difference between fair value and carrying value of investment $ 324.8 $ 304.1        
Fair value     $ 258.4      
MegaMex Foods, LLC            
Schedule of Equity Method Investments [Line Items]            
Ownership percentage   50.00%   50.00%    
Basis difference between fair value and carrying value of investment   $ 8.7       $ 21.3
v3.24.2.u1
INVENTORIES - Schedule of Principal Components of Inventories (Details) - USD ($)
$ in Thousands
Jul. 28, 2024
Oct. 29, 2023
Inventory, Net [Abstract]    
Finished Products $ 936,454 $ 954,432
Raw Materials and Work-in-Process 447,098 448,535
Operating Supplies 148,341 168,289
Maintenance Materials and Parts 117,755 109,151
Total Inventories $ 1,649,649 $ 1,680,406
v3.24.2.u1
DERIVATIVES AND HEDGING - Narrative (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Jul. 25, 2021
Jul. 28, 2024
USD ($)
Jan. 30, 2022
USD ($)
Apr. 25, 2021
USD ($)
derivative
Commodity Contracts        
Derivative [Line Items]        
Hedging gains (losses) to be recognized within next twelve months   $ (25.5)    
Natural Gas        
Derivative [Line Items]        
Maximum length of time to hedge exposure   2 years    
Corn        
Derivative [Line Items]        
Maximum length of time to hedge exposure   2 years    
Lean Hogs        
Derivative [Line Items]        
Maximum length of time to hedge exposure   12 months    
Interest Rate Locks | Derivatives designated as hedges | Cash Flow Hedges        
Derivative [Line Items]        
Number of hedging instruments | derivative       2
Total notional amount of hedging       $ 1,250.0
Interest Rate Locks | Derivatives designated as hedges | Cash Flow Hedges | Minimum        
Derivative [Line Items]        
Tenor of hedging contracts 7 years      
Interest Rate Locks | Derivatives designated as hedges | Cash Flow Hedges | Maximum        
Derivative [Line Items]        
Tenor of hedging contracts 30 years      
Interest Rate Swap | Derivatives designated as hedges | Fair Value Hedges        
Derivative [Line Items]        
Total notional amount of hedging     $ 450.0  
Interest Rate Contracts        
Derivative [Line Items]        
Hedging gains (losses) to be recognized within next twelve months   $ 11.7    
v3.24.2.u1
DERIVATIVES AND HEDGING - Outstanding Commodity Future Contracts (Details) - Cash Flow Hedges - Derivatives designated as hedges
lb in Millions, gal in Millions, bu in Millions, MMBTU in Millions
 9 Months Ended 12 Months Ended
Jul. 28, 2024
MMBTU
lb
gal
bu
Oct. 29, 2023
MMBTU
lb
gal
bu
Corn    
Derivative [Line Items]    
Futures contracts, volume (in bushels) | bu 27.6 30.7
Futures contracts, volume (in gallons) | bu 27.6 30.7
Lean Hogs    
Derivative [Line Items]    
Futures contracts, mass (in pounds) | lb 186.3 144.2
Natural Gas    
Derivative [Line Items]    
Futures contracts, energy (in MMBTu) | MMBTU 3.5 3.0
Diesel Fuel    
Derivative [Line Items]    
Futures contracts, volume (in bushels) | gal 0.9 0.0
Futures contracts, volume (in gallons) | gal 0.9 0.0
v3.24.2.u1
DERIVATIVES AND HEDGING - Fair Value of Derivatives (Details) - USD ($)
$ in Thousands
Jul. 28, 2024
Oct. 29, 2023
Derivatives fair value    
Liability, right to reclaim net cash collateral $ 29,300 $ 32,200
Derivatives designated as hedges | Cash Flow Hedges | Commodity Contracts    
Derivatives fair value    
Gross fair value $ (18,987) $ (13,233)
v3.24.2.u1
DERIVATIVES AND HEDGING - Fair Value Hedge Assets (Liabilities) (Details) - Fair Value Hedges - USD ($)
$ in Thousands
Jul. 28, 2024
Oct. 29, 2023
Commodity Contracts | Accounts Payable    
Derivatives fair value    
Carrying amount of fair value hedged assets (liabilities) $ (4,160) $ (4,914)
Interest Rate Contracts | Current Maturities of Long-term Debt    
Derivatives fair value    
Carrying amount of fair value hedged assets (liabilities) $ 0 $ (442,549)
v3.24.2.u1
DERIVATIVES AND HEDGING - Effects on Accumulated Other Comprehensive Gains and Losses (Before Tax) of Derivative Instruments (Details) - Derivatives designated as hedges - Cash Flow Hedges - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Commodity Contracts        
Derivative instruments gains or losses (before tax)        
Gain/(Loss) Reclassified from AOCL into Earnings $ (1,541) $ (5,758) $ (21,297) $ 5,833
Interest Rate Contracts        
Derivative instruments gains or losses (before tax)        
Gain/(Loss) Reclassified from AOCL into Earnings 247 247 741 741
Cost of Products Sold | Commodity Contracts        
Derivative instruments gains or losses (before tax)        
Gain/(Loss) Recognized in AOCL (26,172) (2,600) (24,487) (34,151)
Gain/(Loss) Reclassified from AOCL into Earnings (1,541) (5,758) (21,297) 5,833
Cost of Products Sold | Corn Options        
Derivative instruments gains or losses (before tax)        
Excluded Component 299 423 2,112 (268)
Excluded Component 0 0 0 0
Interest Expense | Interest Rate Contracts        
Derivative instruments gains or losses (before tax)        
Gain/(Loss) Recognized in AOCL 0 0 0 0
Gain/(Loss) Reclassified from AOCL into Earnings $ 247 $ 247 $ 741 $ 741
v3.24.2.u1
DERIVATIVES AND HEDGING - Consolidated Condensed Statements of Operations Impact of Gains or Losses on Derivative Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Derivative [Line Items]        
Net Earnings Attributable to Hormel Foods Corporation $ 176,701 $ 162,679 $ 584,842 $ 597,637
Fair Value Hedges        
Total Gain (Loss) Recognized in Earnings (1,828) (9,148) (24,718) (7,681)
Derivatives designated as hedges | Commodity Contracts        
Fair Value Hedges        
Total Gain (Loss) Recognized in Earnings (874) (6,271) (18,008) 952
Derivatives designated as hedges | Interest Rate Contracts        
Fair Value Hedges        
Total Gain (Loss) Recognized in Earnings (955) (2,878) (6,710) (8,633)
Derivatives designated as hedges | Cash Flow Hedges | Commodity Contracts        
Cash Flow Hedges        
Gain (Loss) Reclassified from AOCL (1,541) (5,758) (21,297) 5,833
Amortization of Excluded Component from Options (472) (1,531) (2,478) (4,441)
Derivatives designated as hedges | Cash Flow Hedges | Interest Rate Contracts        
Cash Flow Hedges        
Gain (Loss) Reclassified from AOCL 247 247 741 741
Derivatives designated as hedges | Fair Value Hedges | Commodity Contracts        
Fair Value Hedges        
Gain (Loss) on Commodity Futures 1,139 1,019 5,766 (440)
Derivatives designated as hedges | Fair Value Hedges | Interest Rate Contracts        
Fair Value Hedges        
Amortization of Loss Due to Discontinuance of Fair Value Hedge $ (1,202) $ (3,125) $ (7,451) $ (9,374)
v3.24.2.u1
PENSION AND OTHER POST-RETIREMENT BENEFITS - Schedule of Net Periodic Benefit Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Net periodic cost of defined benefit plans        
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Interest and Investment Income Interest and Investment Income Interest and Investment Income Interest and Investment Income
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Interest and Investment Income Interest and Investment Income Interest and Investment Income Interest and Investment Income
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] Interest and Investment Income Interest and Investment Income Interest and Investment Income Interest and Investment Income
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Interest and Investment Income Interest and Investment Income Interest and Investment Income Interest and Investment Income
Pension Benefits        
Net periodic cost of defined benefit plans        
Service Cost $ 9,033 $ 8,902 $ 27,108 $ 26,705
Interest Cost 18,336 17,157 55,008 51,472
Expected Return on Plan Assets (19,377) (19,571) (58,132) (58,714)
Amortization of Prior Service Cost (221) (461) (664) (1,383)
Recognized Actuarial (Gain) Loss 3,317 3,325 9,951 9,976
Net Periodic Cost 11,086 9,353 33,270 28,058
Post-retirement Benefits        
Net periodic cost of defined benefit plans        
Service Cost 41 62 123 185
Interest Cost 2,895 3,016 8,687 9,044
Amortization of Prior Service Cost 2 2 6 6
Recognized Actuarial (Gain) Loss (317) (7) (952) (21)
Net Periodic Cost $ 2,621 $ 3,073 $ 7,864 $ 9,214
v3.24.2.u1
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Components (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 28, 2024
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance   $ 7,734,885
Unrecognized Gains (Losses)    
Gross $ (59,726) (64,174)
Tax Effect 6,286 5,417
Reclassification into Net Earnings    
Gross 2,383 23,679
Tax Effect (991) (7,043)
Change Net of Tax (52,048) (42,121)
Ending Balance 7,867,119 7,867,119
Accumulated Other Comprehensive Loss    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (262,325) (272,252)
Reclassification into Net Earnings    
Ending Balance (314,373) (314,373)
Foreign Currency Translation    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (93,937) (86,022)
Unrecognized Gains (Losses)    
Gross (28,685) (36,599)
Tax Effect 0 0
Reclassification into Net Earnings    
Gross 0 0
Tax Effect 0 0
Change Net of Tax (28,685) (36,599)
Ending Balance (122,621) (122,621)
Pension & Other Benefits    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance (179,795) (183,993)
Unrecognized Gains (Losses)    
Gross (90) (87)
Tax Effect 0 0
Reclassification into Net Earnings    
Gross 2,781 8,341
Tax Effect (683) (2,049)
Change Net of Tax 2,008 6,205
Ending Balance (177,788) (177,788)
Derivatives & Hedging    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance 8,121 (9,084)
Unrecognized Gains (Losses)    
Gross (25,873) (22,375)
Tax Effect 6,286 5,417
Reclassification into Net Earnings    
Gross 1,294 20,555
Tax Effect (308) (4,994)
Change Net of Tax (18,601) (1,397)
Ending Balance (10,481) (10,481)
Equity Method Investments    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning Balance 3,286 6,847
Unrecognized Gains (Losses)    
Gross (5,079) (5,113)
Tax Effect 0 0
Reclassification into Net Earnings    
Gross (1,691) (5,217)
Tax Effect 0 0
Change Net of Tax (6,770) (10,330)
Ending Balance $ (3,484) $ (3,484)
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Carried at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Oct. 29, 2023
Assets at Fair Value          
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Prepaid Expenses and Other Current Assets   Prepaid Expenses and Other Current Assets   Prepaid Expenses and Other Current Assets
Right To Reclaim Net Cash Collateral, Commodity Derivatives [Abstract]          
Right to reclaim net cash collateral $ 29,300   $ 29,300   $ 32,200
Right to reclaim net cash collateral, cash portion 37,700   37,700   42,600
Realized loss on closed positions 8,400   8,400   10,400
Rabbi trust          
Right To Reclaim Net Cash Collateral, Commodity Derivatives [Abstract]          
Gains related to securities held by the trust 4,900 $ 5,100 18,800 $ 12,100  
Recurring basis          
Assets at Fair Value          
Cash and Cash Equivalents 537,476   537,476   736,532
Short-term Marketable Securities 24,454   24,454   16,664
Other Trading Securities 206,980   206,980   188,162
Commodity Derivatives 7,067   7,067   9,330
Total Assets at Fair Value 775,976   775,976   950,688
Liabilities at Fair Value          
Deferred Compensation 61,425   61,425   55,222
Total Liabilities at Fair Value 61,425   61,425   55,222
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)          
Assets at Fair Value          
Cash and Cash Equivalents 537,008   537,008   735,387
Short-term Marketable Securities 4,970   4,970   2,499
Other Trading Securities 0   0   0
Commodity Derivatives 9,298   9,298   9,603
Total Assets at Fair Value 551,276   551,276   747,489
Liabilities at Fair Value          
Deferred Compensation 0   0   0
Total Liabilities at Fair Value 0   0   0
Recurring basis | Significant Other Observable Inputs (Level 2)          
Assets at Fair Value          
Cash and Cash Equivalents 468   468   1,145
Short-term Marketable Securities 19,484   19,484   14,164
Other Trading Securities 206,980   206,980   188,162
Commodity Derivatives (2,231)   (2,231)   (273)
Total Assets at Fair Value 224,700   224,700   203,199
Liabilities at Fair Value          
Deferred Compensation 61,425   61,425   55,222
Total Liabilities at Fair Value 61,425   61,425   55,222
Recurring basis | Significant Unobservable Inputs (Level 3)          
Assets at Fair Value          
Cash and Cash Equivalents 0   0   0
Short-term Marketable Securities 0   0   0
Other Trading Securities 0   0   0
Commodity Derivatives 0   0   0
Total Assets at Fair Value 0   0   0
Liabilities at Fair Value          
Deferred Compensation 0   0   0
Total Liabilities at Fair Value $ 0   $ 0   $ 0
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)
$ in Billions
Jul. 28, 2024
Oct. 29, 2023
Fair Value Disclosures [Abstract]    
Fair value of long-term debt, utilizing discounted cash flows (Level 2) $ 2.4 $ 2.7
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended
Aug. 20, 2024
Aug. 31, 2024
Jul. 28, 2024
Apr. 28, 2024
Oct. 29, 2023
Loss Contingencies [Line Items]          
Accrued expense     $ 74,789   $ 51,679
Pork Antitrust Litigation, Direct Purchaser Plaintiffs and Commercial and Institutional Indirect Purchaser Plaintiffs | Settled Litigation          
Loss Contingencies [Line Items]          
Damages paid     7,300    
Pork Antitrust Litigation, Direct Purchaser Plaintiffs | Settled Litigation          
Loss Contingencies [Line Items]          
Damages awarded       $ 4,900  
Pork Antitrust Litigation, Commercial and Institutional Indirect Purchaser Plaintiffs | Settled Litigation          
Loss Contingencies [Line Items]          
Damages awarded       2,400  
Pork Antitrust Litigation, Consumer Indirect Purchaser Plaintiffs | Settled Litigation          
Loss Contingencies [Line Items]          
Damages awarded       $ 4,500  
Accrued expense     $ 4,500    
Pork Antitrust Litigation, Consumer Indirect Purchaser Plaintiffs | Settled Litigation | Subsequent Event          
Loss Contingencies [Line Items]          
Damages paid   $ 4,500      
Poultry Wages Antitrust Litigation | Settled Litigation | Subsequent Event          
Loss Contingencies [Line Items]          
Damages awarded $ 3,500        
Red Meat Wages Antitrust Litigation | Settled Litigation | Subsequent Event          
Loss Contingencies [Line Items]          
Damages awarded $ 13,500        
v3.24.2.u1
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Jul. 28, 2024
Mar. 08, 2024
Oct. 29, 2023
Jun. 03, 2021
Jun. 11, 2020
Debt Instrument [Line Items]          
Unamortized Debt Issuance Costs $ (16,341)   $ (16,278)    
Interest Rate Swap Liabilities 0   (7,451)    
Finance Lease Liabilities 29,600   36,085    
Other Financing Arrangements 3,490   3,908    
Total 2,859,853   3,309,247    
Less: Current Maturities of Long-term Debt 8,232   950,529    
Long-term Debt Less Current Maturities 2,851,621   2,358,719    
Senior Notes          
Debt Instrument [Line Items]          
Unamortized Discount on Senior Notes $ (6,897)   (7,016)    
Senior Notes | Senior Unsecured Notes, with Interest at 3.050% Interest Due Semi-annually through June 2051 Maturity Date          
Debt Instrument [Line Items]          
Interest rate 3.05%     3.05%  
Senior Notes $ 600,000   600,000    
Senior Notes | Senior Unsecured Notes, with Interest at 1.800% Interest Due Semi-annually through June 2030 Maturity Date          
Debt Instrument [Line Items]          
Interest rate 1.80%       1.80%
Senior Notes $ 1,000,000   1,000,000    
Senior Notes | Senior Unsecured Notes, with Interest at 1.700% Interest Due Semi-annually through June 2028 Maturity Date          
Debt Instrument [Line Items]          
Interest rate 1.70%     1.70%  
Senior Notes $ 750,000   750,000    
Senior Notes | Senior Unsecured Notes, with Interest at 4.800% Interest Due Semi-annually through March 2027 Maturity Date          
Debt Instrument [Line Items]          
Interest rate 4.80% 4.80%      
Senior Notes $ 500,000   0    
Senior Notes | Senior Unsecured Notes, with Interest at 0.650% Interest Due Semi-annually through June 2024 Maturity Date          
Debt Instrument [Line Items]          
Interest rate 0.65%     0.65%  
Senior Notes $ 0   $ 950,000    
v3.24.2.u1
LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS - Narrative (Details)
Jun. 03, 2024
USD ($)
Mar. 08, 2024
USD ($)
Apr. 17, 2023
extension_option
interest_period
Jun. 03, 2021
USD ($)
May 06, 2021
USD ($)
Jun. 11, 2020
USD ($)
Jul. 28, 2024
USD ($)
Oct. 29, 2023
USD ($)
Apr. 16, 2023
interest_period
Senior Notes | 2027 Notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount of debt issued   $ 500,000,000              
Interest rate   4.80%         4.80%    
Redemption price, percentage   101.00%              
Senior Notes | 2024 Notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount of debt issued       $ 950,000,000          
Interest rate       0.65%     0.65%    
Redemption price, percentage       101.00%          
Repayment of matured senior unsecured notes $ 950,000,000                
Senior Notes | 2028 Notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount of debt issued       $ 750,000,000          
Interest rate       1.70%     1.70%    
Redemption price, percentage       101.00%          
Senior Notes | 2051 Notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount of debt issued       $ 600,000,000          
Interest rate       3.05%     3.05%    
Redemption price, percentage       101.00%          
Senior Notes | 2030 Notes                  
Debt Instrument [Line Items]                  
Aggregate principal amount of debt issued           $ 1,000,000,000      
Interest rate           1.80% 1.80%    
Redemption price, percentage           101.00%      
Credit Facility | Unsecured Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Borrowing capacity under credit facility         $ 750,000,000        
Additional uncommitted option under credit facility         $ 375,000,000        
Number of extension options | extension_option     2            
Extension option, period     1 year            
Number of permitted interest periods | interest_period     15           8
Amount outstanding under credit facility             $ 0 $ 0  
Credit Facility | Unsecured Revolving Credit Facility | Minimum                  
Debt Instrument [Line Items]                  
Variable fee percentage for availability of line of credit         0.05%        
Credit Facility | Unsecured Revolving Credit Facility | Minimum | Base Rate                  
Debt Instrument [Line Items]                  
Margin over interest rate percentage         0.00%        
Credit Facility | Unsecured Revolving Credit Facility | Minimum | Eurocurrency rate                  
Debt Instrument [Line Items]                  
Margin over interest rate percentage         0.575%        
Credit Facility | Unsecured Revolving Credit Facility | Maximum                  
Debt Instrument [Line Items]                  
Variable fee percentage for availability of line of credit         0.10%        
Credit Facility | Unsecured Revolving Credit Facility | Maximum | Base Rate                  
Debt Instrument [Line Items]                  
Margin over interest rate percentage         0.15%        
Credit Facility | Unsecured Revolving Credit Facility | Maximum | Eurocurrency rate                  
Debt Instrument [Line Items]                  
Margin over interest rate percentage         1.15%        
v3.24.2.u1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Income Tax Disclosure [Abstract]        
Effective tax rate 21.70% 21.70% 22.60% 22.20%
Unrecognized tax benefits that would impact effective tax rate $ 17.2 $ 19.6 $ 17.2 $ 19.6
Accrued interest and penalties associated with unrecognized tax benefits $ 2.7 $ 3.2 $ 2.7 $ 3.2
v3.24.2.u1
EARNINGS PER SHARE DATA - Shares Used as Denominator (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Earnings Per Share [Abstract]        
Basic Weighted-average Shares Outstanding (in shares) 548,685 546,358 547,858 546,389
Dilutive Potential Common Shares (in shares) 581 2,279 766 2,838
Diluted Weighted-average Shares Outstanding (in shares) 549,266 548,637 548,624 549,227
Antidilutive Potential Common Shares (in shares) 17,560 7,589 17,888 5,998
v3.24.2.u1
SEGMENT REPORTING - Narrative (Details)
 9 Months Ended
Jul. 28, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 3
v3.24.2.u1
SEGMENT REPORTING - Sales and Operating Profits for Each Reportable and Reconciliation to Earnings Before Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Operating profit and other financial information        
Total Net Sales $ 2,898,443 $ 2,963,299 $ 8,782,706 $ 8,911,930
Segment Profit 236,693 216,759 773,452 802,009
Net Unallocated Expense 66,526 101,886 161,239 164,997
Noncontrolling Interest 34 (108) (170) (200)
Earnings Before Income Taxes 225,719 207,626 755,404 767,666
Retail        
Operating profit and other financial information        
Total Net Sales 1,767,251 1,891,746 5,467,078 5,765,786
Foodservice        
Operating profit and other financial information        
Total Net Sales 954,021 890,949 2,799,110 2,607,140
International        
Operating profit and other financial information        
Total Net Sales 177,171 180,605 516,517 539,005
Operating Segments        
Operating profit and other financial information        
Segment Profit 292,211 309,619 916,814 932,863
Operating Segments | Retail        
Operating profit and other financial information        
Segment Profit 127,932 151,128 409,836 459,031
Operating Segments | Foodservice        
Operating profit and other financial information        
Segment Profit 142,487 146,270 441,952 428,110
Operating Segments | International        
Operating profit and other financial information        
Segment Profit $ 21,792 $ 12,222 $ 65,026 $ 45,723
v3.24.2.u1
SEGMENT REPORTING - Revenue Contributed by Sales Channel (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jul. 28, 2024
Jul. 30, 2023
Jul. 28, 2024
Jul. 30, 2023
Revenue from External Customer [Line Items]        
Total Net Sales $ 2,898,443 $ 2,963,299 $ 8,782,706 $ 8,911,930
Perishable        
Revenue from External Customer [Line Items]        
Total Net Sales 2,115,087 2,068,787 6,251,076 6,222,485
Shelf-stable        
Revenue from External Customer [Line Items]        
Total Net Sales $ 783,356 $ 894,512 $ 2,531,630 $ 2,689,445
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