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Segment Reporting
 12 Months Ended
Oct. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting
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 four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other.
 
The Grocery Products segment consists primarily of the processing, marketing, and sale of shelf-stable food products sold predominantly in the retail market, along with the sale of nutritional and private label shelf-stable products to retail, foodservice, and industrial customers. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.
 
The Refrigerated Foods segment consists primarily of the processing, marketing, and sale of branded and unbranded pork, beef, and poultry products for retail, foodservice, deli, convenience store, and commercial customers.
 
The Jennie-O Turkey Store segment consists primarily of the processing, marketing, and sale of branded and unbranded turkey products for retail, foodservice, and commercial customers.
 
The International & Other segment includes Hormel Foods International which manufactures, markets, and sells Company products internationally. This segment also includes the results from the Company’s international joint ventures and royalty arrangements.

Intersegment sales are recorded at prices that approximate cost and are eliminated in the Consolidated Statements of Operations. The Company does not allocate deferred compensation, 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. One-time acquisition-related costs and accounting adjustments associated with the purchase of the Planters® snack nuts business were also retained at the corporate level. Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s noncontrolling interests are excluded. These items are included below as Net Unallocated Expense and Noncontrolling Interest when reconciling to Earnings Before Income Taxes.
 
Sales and segment profit for each of the Company’s reportable segments and reconciliation to Earnings Before Income Taxes are set forth below. 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.
 
Fiscal Year
(in thousands)202120202019
Sales to Unaffiliated Customers
Grocery Products$2,809,445 $2,385,291 $2,369,317 
Refrigerated Foods6,333,410 5,271,061 5,210,741 
Jennie-O Turkey Store1,495,151 1,333,459 1,323,783 
International & Other748,183 618,650 593,476 
Total$11,386,189 $9,608,462 $9,497,317 
Intersegment Sales
Grocery Products$— $13 $41 
Refrigerated Foods28,019 21,067 16,351 
Jennie-O Turkey Store134,563 108,276 123,712 
International & Other— — — 
Total162,582 129,356 140,104 
Intersegment Elimination
(162,582)(129,356)(140,104)
Total$— $— $— 
Net Sales
Grocery Products$2,809,445 $2,385,304 $2,369,358 
Refrigerated Foods6,361,429 5,292,128 5,227,092 
Jennie-O Turkey Store1,629,714 1,441,735 1,447,495 
International & Other748,183 618,650 593,476 
Intersegment Elimination(162,582)(129,356)(140,104)
Total$11,386,189 $9,608,462 $9,497,317 
Segment Profit
Grocery Products$382,197 $358,008 $339,497 
Refrigerated Foods664,558 609,406 681,763 
Jennie-O Turkey Store76,006 105,585 117,962 
International & Other115,943 93,782 75,513 
Total Segment Profit$1,238,704 $1,166,782 $1,214,735 
Net Unallocated Expense112,836 52,307 5,362 
Noncontrolling Interest301 272 342 
Earnings Before Income Taxes$1,126,170 $1,114,747 $1,209,715 
Assets   
Grocery Products$4,711,475 $1,713,883 $1,774,235 
Refrigerated Foods4,900,427 4,188,250 3,583,639 
Jennie-O Turkey Store1,073,249 1,111,318 1,023,787 
International & Other800,828 721,729 692,310 
Corporate1,210,351 2,173,101 1,035,033 
Total$12,696,329 $9,908,282 $8,109,004 
Additions to Property, Plant, & Equipment
Grocery Products$19,911 $34,409 $37,892 
Refrigerated Foods159,380 249,441 174,506 
Jennie-O Turkey Store14,606 42,042 31,607 
International & Other8,626 3,737 9,248 
Corporate29,894 37,872 40,585 
Total$232,416 $367,501 $293,838 
Depreciation and Amortization
Grocery Products$34,645 $32,148 $31,406 
Refrigerated Foods116,206 97,317 77,100 
Jennie-O Turkey Store47,669 46,322 34,696 
International & Other15,244 16,226 10,666 
Corporate14,643 13,767 11,342 
Total$228,406 $205,781 $165,210 



 
Revenue has been disaggregated into the categories below to show how sales channels affect the nature, amount, timing, and uncertainty of revenue and cash flows. The amounts of total revenues contributed by sales channel for the last three fiscal years are:
Fiscal Year Ended
(in thousands)October 31, 2021October 25, 2020October 27, 2019
U.S. Retail$6,196,761 $5,441,412 $4,947,398 
U.S. Foodservice3,239,424 2,489,644 2,943,352 
U.S. Deli1,087,081 970,327 939,069 
International862,923 707,078 667,498 
Total$11,386,189 $9,608,462 $9,497,317 

The Company’s products primarily consist of meat and other food products. The amounts of total revenues contributed by classes of similar products for the last three fiscal years are: 
Fiscal Year Ended
(in thousands)October 31, 2021October 25, 2020October 27, 2019
Perishable$6,271,164 $5,328,738 $5,370,409 
Shelf-stable2,661,194 2,092,551 1,829,138 
Poultry2,100,356 1,886,367 1,849,294 
Miscellaneous353,475 300,806 448,476 
Total$11,386,189 $9,608,462 $9,497,317 
 
Perishable includes fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon (excluding Jennie-O Turkey Store products). Shelf-stable includes canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and other items that do not require refrigeration. The Poultry category is composed primarily of Jennie-O Turkey Store products. The Miscellaneous category primarily consists of nutritional food products and supplements, dessert and drink mixes, and industrial gelatin products. The divestiture of CytoSport in fiscal 2019 led to the reduction in the Miscellaneous category as compared to fiscal 2021 and 2020.

Revenues from external customers are classified as domestic or foreign based on the destination where title passes. No individual foreign country is material to the consolidated results. Additionally, the Company’s long-lived assets located in foreign countries are not significant. Total revenues attributed to the U.S. and all foreign countries in total for the last three fiscal years are: 
Fiscal Year Ended
(in thousands)October 31, 2021October 25, 2020October 27, 2019
United States$10,653,088 $9,006,007 $8,934,911 
Foreign733,101 602,454 562,406 
Total$11,386,189 $9,608,462 $9,497,317 
 
In fiscal 2021, sales to Walmart Inc. (Walmart) represented $1.9 billion or 15.2% of the Company’s consolidated gross sales less returns and allowances compared to $1.5 billion or 14.6% in fiscal 2020. Walmart is a customer for all four segments of the Company.