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DERIVATIVES AND HEDGING (Tables) | 9 Months Ended
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Jul. 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 July 28, 2019, and October 28, 2018, were as follows:
|  |  |  | Fair Value (1)
Derivatives Designated as Hedges: |  | Location on Consolidated Statements of Financial Position |  | July 28, 2019 |  | October 28, 2018
Commodity contracts |  | Other Current Assets |  | $ | 7,478 |  |  | $ | (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 assets (liabilities) | The carrying amount (in thousands) of the Company's fair value hedge assets (liabilities) as of July 28, 2019, and October 28, 2018, were as follows:
Location on Consolidated Statements of Financial Position |  | Carrying Amount of the Hedged Assets/(Liabilities)
|  | July 28, 2019 |  | October 28, 2018
Accounts Payable |  | $ | 1,234 |  |  | $ | (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 July 28, 2019, and July 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: |  | July 28, 2019 |  | July 29, 2018 |  |  | July 28, 2019 |  | July 29, 2018 |  | July 28, 2019 |  | July 29, 2018
Commodity Contracts |  | $ | 9,883 |  |  | $ | (12,620 | ) |  | Cost of Products Sold |  | $ | 940 |  |  | $ | (763 | ) |  | $ | — |  |  | $ | (241 | )
Excluded Component (2) |  | $ | (4,742 | ) |  |  |  |  |  |  |  |  |  |  |  |
The effect of AOCL for gains or losses (before tax, in thousands) related to the Company's derivative instruments for the nine months ended July 28, 2019, and July 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)
|  | Nine Months Ended |  |  | Nine Months Ended |  | Nine Months Ended
Cash Flow Hedges: |  | July 28, 2019 |  | July 29, 2018 |  |  | July 28, 2019 |  | July 29, 2018 |  | July 28, 2019 |  | July 29, 2018
Commodity Contracts |  | $ | 9,546 |  |  | $ | (13,869 | ) |  | Cost of Products Sold |  | $ | (835 | ) |  | $ | (195 | ) |  | $ | — |  |  | $ | (602 | )
Excluded Component (2) |  | $ | 501 |  |  |  |  |  |  |  |  |  |  |  |  |
(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 nine months ended July 28, 2019, and July 29, 2018, were as follows:
|  | Cost of Products Sold
|  | Three Months Ended |  | Nine Months Ended
|  | July 28, 2019 |  | July 29, 2018 |  | July 28, 2019 |  | July 29, 2018
Consolidated Statements of Operations |  | $ | 1,857,263 |  |  | $ | 1,904,096 |  |  | $ | 5,604,879 |  |  | $ | 5,574,858 |
Cash Flow Hedges - Commodity Contracts |  |  |  |  |  |  |  |
Gain (loss) reclassified from AOCL |  | 940 |  |  | (763 | ) |  | (835 | ) |  | (195 | )
Amortization of excluded component from options |  | (313 | ) |  | — |  |  | (2,781 | ) |  | — |
Gain (loss) due to ineffectiveness |  | — |  |  | (241 | ) |  | — |  |  | (602 | )
Fair Value Hedges - Commodity Contracts |  |  |  |  |  |  |  |
Gain (loss) on commodity futures (1) |  | 656 |  |  | 1,363 |  |  | 2,293 |  |  | 3,144 |
Gain (loss) due to ineffectiveness |  | — |  |  | 29 |  |  | — |  |  | (243 | )
Total gain (loss) recognized in earnings |  | $ | 1,283 |  |  | $ | 388 |  |  | $ | (1,323 | ) |  | $ | 2,104 |
(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 July 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 |  | July 28, 2019 |  | October 28, 2018
Corn |  | 30.8 million bushels |  | 23.0 million bushels
Lean hogs |  | 207.5 million pounds |  | 56.9 million pounds

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