XML 38 R28.htm IDEA: XBRL DOCUMENT
v3.19.1

DERIVATIVES AND HEDGING (Tables) | 6 Months Ended
--- | ---
Apr. 28, 2019
Derivative [Line Items] |
Schedule of fair values of derivative instruments | The fair values of the Company’s derivative instruments (in thousands) as of April 28, 2019, and October 28, 2018, were as follows:
|  |  |  | Fair Value (1)
Derivatives Designated as Hedges: |  | Location on Consolidated Statements of Financial Position |  | April 28, 2019 |  | October 28, 2018
Commodity contracts |  | Other Current Assets |  | $ | 3,221 |  |  | $ | (30 | )
(1) Amounts represent the gross fair value of derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its 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 derivative in the Consolidated Statements of Financial Position. See Note L - Fair Value Measurements for a discussion of these net amounts as reported in the Consolidated Statements of Financial Position.
Schedule of fair value hedge liabilities | The carrying amount of the Company's fair value hedge assets (liabilities) (in thousands) as of April 28, 2019, and October 28, 2018, were as follows:
Location on Consolidated Statements of Financial Position |  | Carrying Amount of the Hedged Assets/(Liabilities)
|  | April 28, 2019 |  | October 28, 2018
Accounts Payable |  | 1,976 |  |  | (594 | )
Schedule of gains or losses (before tax) related to derivative instruments | The effect of AOCL for gains or losses (before tax, in thousands) related to the Company's derivative instruments for the three months ended April 28, 2019, and April 29, 2018, were as follows:
|  | Gain/(Loss) Recognized in AOCL (1) |  | Location on Consolidated Statements of Operations |  | Gain/(Loss) Reclassified from AOCL into Earnings (1) |  | Gain/(Loss) Recognized in Earnings (Ineffective Portion)
|  | Three Months Ended |  |  | Three Months Ended |  | Three Months Ended
Cash Flow Hedges: |  | April 28, 2019 |  | April 29, 2018 |  |  | April 28, 2019 |  | April 29, 2018 |  | April 28, 2019 |  | April 29, 2018
Commodity Contracts |  | $ | 505 |  |  | $ | (862 | ) |  | Cost of Products Sold |  | $ | (532 | ) |  | $ | (40 | ) |  | $ | — |  |  | $ | (271 | )
Excluded Component (2) |  | $ | 5,930 |  |  |  |  |  |  |  |  |  |  |  |  |
The effect of AOCL for gains or losses (before tax, in thousands) related to the Company's derivative instruments for the six months ended April 28, 2019, and April 29, 2018, were as follows:
|  | Gain/(Loss) Recognized in AOCL (1) |  | Location on Consolidated Statements of Operations |  | Gain/(Loss) Reclassified from AOCL into Earnings (1) |  | Gain/(Loss) Recognized in Earnings (Ineffective Portion)
|  | Six Months Ended |  |  | Six Months Ended |  | Six Months Ended
Cash Flow Hedges: |  | April 28, 2019 |  | April 29, 2018 |  |  | April 28, 2019 |  | April 29, 2018 |  | April 28, 2019 |  | April 29, 2018
Commodity Contracts |  | $ | (337 | ) |  | $ | (1,249 | ) |  | Cost of Products Sold |  | $ | (1,775 | ) |  | $ | 568 |  |  | $ | — |  |  | $ | (361 | )
Excluded Component (2) |  | $ | 5,243 |  |  |  |  |  |  |  |  |  |  |  |  |
(1) See Note I - Accumulated Other Comprehensive Loss for the after-tax impact of these gains or losses on Net Earnings. (2) Represents the time value amount of lean hog 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, in thousands) related to the Company's derivative instruments for the three months and six months ended April 28, 2019, and April 29, 2018, were as follows:
|  | Cost of Products Sold
|  | Three Months Ended |  | Six Months Ended
|  | April 28, 2019 |  | April 29, 2018 |  | April 28, 2019 |  | April 29, 2018
Consolidated Statements of Operations |  | $ | 1,875,595 |  |  | $ | 1,837,765 |  |  | $ | 3,747,616 |  |  | $ | 3,670,762 |
Cash Flow Hedges - Commodity Contracts |  |  |  |  |  |  |  |
Gain (loss) reclassified from AOCL |  | (532 | ) |  | (40 | ) |  | (1,775 | ) |  | 568 |
Amortization of excluded component from options |  | (1,110 | ) |  | — |  |  | (2,468 | ) |  | — |
Gain (loss) due to ineffectiveness |  | — |  |  | (271 | ) |  | — |  |  | (361 | )
Fair Value Hedges - Commodity Contracts |  |  |  |  |  |  |  |
Gain (loss) on commodity futures (1) |  | 705 |  |  | 1,224 |  |  | 1,637 |  |  | 1,781 |
Gain (loss) due to ineffectiveness |  | — |  |  | (23 | ) |  | — |  |  | (272 | )
Total gain (loss) recognized in earnings |  | $ | (937 | ) |  | $ | 890 |  |  | $ | (2,606 | ) |  | $ | 1,716 |
(1) Amounts represent losses on commodity contracts designated as fair value hedges that were closed during the quarter, which were offset by a corresponding gain 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.
Cash Flow Hedges |
Derivative [Line Items] |
Schedule of outstanding commodity futures contracts | As of April 28, 2019, and October 28, 2018, the Company had the following outstanding commodity futures and options contracts related to its hedging programs:
|  | Volume
Commodity Contracts |  | April 28, 2019 |  | October 28, 2018
Corn |  | 21.3 million bushels |  | 23.0 million bushels
Lean hogs |  | 299.6 million pounds |  | 56.9 million pounds

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_DerivativeLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative liabilities at fair value. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_DerivativeInstrumentsGainLossByHedgingRelationshipAxis=us-gaap_CashFlowHedgingMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |