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Segment Reporting | 12 Months Ended
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Oct. 30, 2022
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, which are consistent with how the Company's Chief Operating Decision Maker (CODM) assesses performance and allocates resources. Grocery Products: The Grocery Products segment primarily consists 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 (MegaMex) joint venture. Refrigerated Foods: The Refrigerated Foods segment includes the processing, marketing, and sale of branded and unbranded pork, beef, and poultry products for retail, foodservice, deli, convenience store, and commercial customers. Jennie-O Turkey Store: The Jennie-O Turkey Store segment primarily consists of the processing, marketing, and sale of branded and unbranded turkey products for retail, foodservice, and commercial customers. International & Other: 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 royalty arrangements and other joint ventures. Intersegment sales 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. In fiscal 2021, 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. Financial measures for each of the Company’s reportable segments and reconciliation to consolidated Earnings Before Income Taxes are set forth below. The Company's CODM reviews assets at a consolidated level and does not use assets by segment to evaluate performance or allocate resources. Therefore, the Company does not disclose assets by segment. 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.
In thousands | Fiscal Year Ended
| October 30, 2022 |  | October 31, 2021 |  | October 25, 2020
Sales to Unaffiliated Customers |  |  |  |  |  |
Grocery Products |  | $ | 3,533,138 |  |  | $ | 2,809,445 |  |  | $ | 2,385,291 |
Refrigerated Foods |  | 6,691,230 |  |  | 6,333,410 |  |  | 5,271,061 |
Jennie-O Turkey Store |  | 1,507,421 |  |  | 1,495,151 |  |  | 1,333,459 |
International & Other |  | 727,017 |  |  | 748,183 |  |  | 618,650 |
Total |  | $ | 12,458,806 |  |  | $ | 11,386,189 |  |  | $ | 9,608,462 |
Intersegment Sales |  |  |  |  |  |
Grocery Products |  | $ | — |  |  | $ | — |  |  | $ | 13 |
Refrigerated Foods |  | 25,751 |  |  | 28,019 |  |  | 21,067 |
Jennie-O Turkey Store |  | 253,573 |  |  | 134,563 |  |  | 108,276 |
International & Other |  | — |  |  | — |  |  | — |
Total |  | 279,325 |  |  | 162,582 |  |  | 129,356 |
Intersegment Elimination |  | (279,325) |  |  | (162,582) |  |  | (129,356) |
Total |  | $ | — |  |  | $ | — |  |  | $ | — |
Net Sales |  |  |  |  |  |
Grocery Products |  | $ | 3,533,138 |  |  | $ | 2,809,445 |  |  | $ | 2,385,304 |
Refrigerated Foods |  | 6,716,981 |  |  | 6,361,429 |  |  | 5,292,128 |
Jennie-O Turkey Store |  | 1,760,994 |  |  | 1,629,714 |  |  | 1,441,735 |
International & Other |  | 727,017 |  |  | 748,183 |  |  | 618,650 |
Intersegment Elimination |  | (279,325) |  |  | (162,582) |  |  | (129,356) |
Total |  | $ | 12,458,806 |  |  | $ | 11,386,189 |  |  | $ | 9,608,462 |
Segment Profit |  |  |  |  |  |
Grocery Products |  | $ | 367,642 |  |  | $ | 382,197 |  |  | $ | 358,008 |
Refrigerated Foods |  | 685,394 |  |  | 664,558 |  |  | 609,406 |
Jennie-O Turkey Store |  | 218,860 |  |  | 76,006 |  |  | 105,585 |
International & Other |  | 105,264 |  |  | 115,943 |  |  | 93,782 |
Total Segment Profit |  | $ | 1,377,161 |  |  | $ | 1,238,704 |  |  | $ | 1,166,782 |
Net Unallocated Expense |  | 99,297 |  |  | 112,836 |  |  | 52,307 |
Noncontrolling Interest |  | 239 |  |  | 301 |  |  | 272 |
Earnings Before Income Taxes |  | $ | 1,278,103 |  |  | $ | 1,126,170 |  |  | $ | 1,114,747 |
Depreciation and Amortization |  |  |  |  |  |
Grocery Products |  | $ | 50,948 |  |  | $ | 34,645 |  |  | $ | 32,148 |
Refrigerated Foods |  | 131,041 |  |  | 116,206 |  |  | 97,317 |
Jennie-O Turkey Store |  | 47,190 |  |  | 47,669 |  |  | 46,322 |
International & Other |  | 12,972 |  |  | 15,244 |  |  | 16,226 |
Corporate |  | 20,602 |  |  | 14,643 |  |  | 13,767 |
Total |  | $ | 262,753 |  |  | $ | 228,406 |  |  | $ | 205,781 |
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. Total revenue contributed by sales channel for the last three fiscal years are:
|  | Fiscal Year Ended
In thousands |  | October 30, 2022 |  | October 31, 2021 |  | October 25, 2020
U.S. Retail |  | $ | 7,780,284 |  |  | $ | 7,283,842 |  |  | $ | 6,411,739 |
U.S. Foodservice |  | 3,879,568 |  |  | 3,239,424 |  |  | 2,489,644 |
International |  | 798,955 |  |  | 862,923 |  |  | 707,078 |
Total |  | $ | 12,458,806 |  |  | $ | 11,386,189 |  |  | $ | 9,608,462 |
In fiscal 2022, the Company updated its presentation of revenue disaggregation by sales channel, combining U.S. Deli and U.S. Retail as market conditions have evolved providing many similarities between the channels. The prior year presentation has been updated to conform to the current period presentation. The Company’s products primarily consist of meat and other food products. Total revenue contributed by classes of similar products for the last three fiscal years are:
|  | Fiscal Year Ended
In thousands |  | October 30, 2022 |  | October 31, 2021 |  | October 25, 2020
Perishable |  | $ | 6,554,512 |  |  | $ | 6,271,164 |  |  | $ | 5,328,738 |
Shelf-stable |  | 3,402,075 |  |  | 2,661,194 |  |  | 2,092,551 |
Poultry |  | 2,121,819 |  |  | 2,100,356 |  |  | 1,886,367 |
Miscellaneous |  | 380,400 |  |  | 353,475 |  |  | 300,806 |
Total |  | $ | 12,458,806 |  |  | $ | 11,386,189 |  |  | $ | 9,608,462 |
Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, and guacamole (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. Revenues from external customers are classified as domestic or foreign based on the location 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 net sales attributed to the U.S. and all foreign countries in total for the last three fiscal years are:
|  | Fiscal Year Ended
In thousands |  | October 30, 2022 |  | October 31, 2021 |  | October 25, 2020
U.S. |  | $ | 11,776,883 |  |  | $ | 10,653,088 |  |  | $ | 9,006,007 |
Foreign |  | 681,923 |  |  | 733,101 |  |  | 602,454 |
Total |  | $ | 12,458,806 |  |  | $ | 11,386,189 |  |  | $ | 9,608,462 |
In fiscal 2022, sales to Walmart Inc. (Walmart) represented $2.1 billion or 15.6% of the Company’s consolidated gross sales less returns and allowances compared to $1.9 billion or 15.2% in fiscal 2021. Walmart is a customer for all four segments of the Company.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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