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DERIVATIVES AND HEDGING (Tables) | 6 Months Ended
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Apr. 26, 2020
Derivative [Line Items] |
Schedule of fair values of derivative instruments | The fair values of the Company’s derivative instruments as of April 26, 2020, and October 27, 2019, are:
|  |  |  | Fair Value (1)
(in thousands) |  | Location on Consolidated Statements of Financial Position |  | April 26, 2020 |  | October 27, 2019
Derivatives Designated as Hedges: |  |  |  |  |  |
Commodity Contracts |  | Other Current Assets |  | $ | (32,187 | ) |  | $ | 6,405 |
(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. The gross liability position as of April 26, 2020 is offset by cash collateral of $42.0 million contained within the master netting arrangement. See Note K - 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 of the Company's fair value hedge assets (liabilities) as of April 26, 2020, and October 27, 2019, are:
Location on Consolidated Statements of Financial Position |  | Carrying Amount of the Hedged Assets/(Liabilities)
(in thousands) |  | April 26, 2020 |  | October 27, 2019
Accounts Payable |  | $ | (5,642 | ) |  | $ | (2,805 | )
Schedule of gains or losses (before tax) related to derivative instruments | The effect of Accumulated Other Comprehensive Loss for gains or losses (before tax) related to the Company's derivative instruments for the thirteen weeks ended April 26, 2020, and April 28, 2019, are:
|  | Gain/(Loss) Recognized in AOCL (1) |  | Location on Consolidated Statements of Operations |  | Gain/(Loss) Reclassified from AOCL into Earnings (1)
|  | Thirteen Weeks Ended |  |  | Thirteen Weeks Ended
(in thousands) |  | April 26, 2020 |  | April 28, 2019 |  |  | April 26, 2020 |  | April 28, 2019
Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |
Commodity Contracts |  | $ | (47,944 | ) |  | $ | 505 |  |  | Cost of Products Sold |  | $ | (5,477 | ) |  | $ | (532 | )
Excluded Component (2) |  | — |  |  | 5,930 |  |  |  |  |  |  |
The effect of Accumulated Other Comprehensive Loss for gains or losses (before tax) related to the Company's derivative instruments for the twenty-six weeks ended April 26, 2020 and April 28, 2019, are:
|  | Gain/(Loss) Recognized in AOCL (1) |  | Location on Consolidated Statements of Operations |  | Gain/(Loss) Reclassified from AOCL into Earnings (1)
|  | Twenty-Six Weeks Ended |  |  | Twenty-Six Weeks Ended
(in thousands) |  | April 26, 2020 |  | April 28, 2019 |  |  | April 26, 2020 |  | April 28, 2019
Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |
Commodity Contracts |  | $ | (56,571 | ) |  | $ | (337 | ) |  | Cost of Products Sold |  | $ | (7,352 | ) |  | $ | (1,775 | )
Excluded Component (2) |  | — |  |  | 5,243 |  |  |  |  |  |  |
(1) | See Note H - 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) related to the Company's derivative instruments for the thirteen and twenty-six weeks ended April 26, 2020, and April 28, 2019, are:
|  | Cost of Products Sold
|  | Thirteen Weeks Ended |  | Twenty-Six Weeks Ended
(in thousands) |  | April 26, 2020 |  | April 28, 2019 |  | April 26, 2020 |  | April 28, 2019
Consolidated Statements of Operations |  | $ | 1,945,113 |  |  | $ | 1,875,595 |  |  | $ | 3,861,127 |  |  | $ | 3,747,616 |
Cash Flow Hedges - Commodity Contracts |  |  |  |  |  |  |  |
Gain (Loss) Reclassified from AOCL |  | (5,477 | ) |  | (532 | ) |  | (7,352 | ) |  | (1,775 | )
Amortization of Excluded Component from Options |  | — |  |  | (1,110 | ) |  | — |  |  | (2,468 | )
Fair Value Hedges - Commodity Contracts |  |  |  |  |  |  |  |
Gain (Loss) on Commodity Futures (1) |  | 5,960 |  |  | 705 |  |  | 9,146 |  |  | 1,637 |
Total Gain (Loss) Recognized in Earnings |  | $ | 483 |  |  | $ | (937 | ) |  | $ | 1,794 |  |  | $ | (2,606 | )
(1) | Amounts represent losses on commodity contracts designated as fair value hedges that were closed during the
thirteen and twenty-six weeks ended April 26, 2020, and April 28, 2019, 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 26, 2020, and October 27, 2019, the Company had the following outstanding commodity futures and options contracts related to its hedging programs:
|  | Volume
Commodity Contracts |  | April 26, 2020 |  | October 27, 2019
Corn |  | 20.4 million bushels |  | 30.4 million bushels
Lean Hogs |  | 199.1 million pounds |  | 187.3 million pounds

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