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DERIVATIVES AND HEDGING (Tables)
 6 Months Ended
Apr. 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 Condensed Statements of Financial PositionApril 28, 2024October 29, 2023
Commodity Contracts(1)
Other Current Assets$1,081 $(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 Condensed Statements of Financial Position. The gross asset position as of April 28, 2024 excludes the right to reclaim net cash collateral of $11.5 million contained within the master netting arrangement. The gross liability position as of October 29, 2023 is 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 Condensed 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 Condensed Statements of Financial PositionApril 28, 2024October 29, 2023
Commodity Contracts
Accounts Payable(1)
$(1,785)$(4,914)
Interest Rate Contracts
Current Maturities of Long-term Debt(2)
(448,798)(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. As of April 28, 2024, the carrying amount of the 2024 Notes included a cumulative fair value hedging adjustment of $1.2 million 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
April 28, 2024April 30, 2023April 28, 2024April 30, 2023
Cash Flow Hedges
Commodity Contracts$7,299 $(23,161)$(8,155)$732 Cost of Products Sold
Excluded Component(2)
657 (1,036)— — 
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
Six Months EndedSix Months Ended
in thousandsApril 28, 2024April 30, 2023April 28, 2024April 30, 2023
Cash Flow Hedges
Commodity Contracts$1,685 $(31,551)$(19,756)$11,591 Cost of Products Sold
Excluded Component (2)
1,813 (691)— — 
Interest Rate Contracts
— — 494 494 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 EndedSix Months Ended
In thousands
April 28, 2024April 30, 2023April 28, 2024April 30, 2023
Net Earnings Attributable to Hormel Foods Corporation$189,278 $217,239 $408,140 $434,958 
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL(8,155)732 (19,756)11,591 
Amortization of Excluded Component from Options(850)(1,497)(2,006)(2,909)
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures(1)
1,033 1,563 4,628 (1,459)
Total Gain (Loss) on Commodity Contracts(2)
(7,972)798 (17,134)7,223 
Cash Flow Hedges - Interest Rate Contracts
Gain (Loss) Reclassified from AOCL247 247 494 494 
Fair Value Hedge - Interest Rate Contracts
Amortization of Loss Due to Discontinuance of Fair Value Hedge(3)
(3,125)(3,125)(6,250)(6,250)
Total Gain (Loss) on Interest Rate Contracts(4)
(2,878)(2,878)(5,755)(5,755)
Total Gain (Loss) Recognized in Earnings$(10,849)$(2,080)$(22,890)$1,468 

(1)    Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and six months ended April 28, 2024, and April 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
April 28, 2024October 29, 2023
Corn28.5 bushels30.7 bushels
Lean Hogs174.0 pounds144.2 pounds
Natural Gas3.2 MMBtu3.0 MMBtu
Diesel Fuel
0.9 gallons— gallons