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FAIR VALUE MEASUREMENTS (Tables)
3 Months Ended
Jan. 24, 2021
Fair Value Disclosures [Abstract]  
Schedule of financial assets and liabilities measured at fair value on a recurring basis
The Company’s financial assets and liabilities carried at fair value on a recurring basis as of January 24, 2021, and October 25, 2020, and their level within the fair value hierarchy, are:
 Fair Value Measurements at January 24, 2021
(in thousands)Total Fair Value
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents (1)
$1,751,541 $1,750,458 $1,083 $— 
Short-term Marketable Securities (2)
17,520 5,749 11,771 — 
Other Trading Securities (3)
192,705 — 192,705 — 
Commodity Derivatives (4)
6,763 6,763 — — 
Total Assets at Fair Value$1,968,529 $1,762,970 $205,559 $— 
Liabilities at Fair Value
Deferred Compensation (3)
$68,714 $— $68,714 $— 
Total Liabilities at Fair Value$68,714 $— $68,714 $— 

 Fair Value Measurements at October 25, 2020
(in thousands)
Total Fair
Value
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents (1)
$1,714,309 $1,713,098 $1,211 $— 
Short-term Marketable Securities (2)
17,338 5,728 11,610 — 
Other Trading Securities (3)
173,114 — 173,114 — 
Commodity Derivatives (4)
10,950 10,950 — — 
Total Assets at Fair Value$1,915,711 $1,729,776 $185,935 $— 
Liabilities at Fair Value
Deferred Compensation (3)
$65,154 $— $65,154 $— 
Total Liabilities at Fair Value$65,154 $— $65,154 $— 
 
The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above:
(1)    The Company’s cash equivalents considered Level 1 consist primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts, and have a maturity date of three months or less. Cash equivalents considered Level 2 are funds holding agency bonds or securities recognized at amortized cost.
(2)    The Company holds securities as part of a portfolio maintained to generate investment income and to provide cash for operations of the Company, if necessary. The portfolio is managed by a third party who is responsible for daily trading activities, and all assets within the portfolio are highly liquid. The cash, U.S. government securities, and money market funds rated AAA held by the portfolio are classified as Level 1. The current investment portfolio also includes corporate bonds and other asset backed securities for which there is an active, quoted market. Market prices are obtained from a variety of industry providers, large financial institutions, and other third-party sources to calculate a representative daily market value, and therefore, these securities are classified as Level 2.
(3)    The Company maintains a rabbi trust to fund certain supplemental executive retirement plans and deferred compensation plans. The funds held in the rabbi trust relate to the supplemental executive retirement plans and have been invested primarily in fixed income funds managed by a third party. The declared rate on these funds is set based on a formula using the yield of the general account investment portfolio supporting the fund, adjusted for expenses and other charges. The rate is guaranteed for one year at issue and may be reset annually on the policy anniversary, subject to a guaranteed minimum rate. As the value is based on adjusted market rates and the fixed rate is only reset on an annual basis, these funds are classified as Level 2. Under the deferred compensation plans, participants can defer certain types of compensation and elect to receive a return on the deferred amounts based on the changes in fair value of various investment options These funds are managed by a third-party insurance policy, the values of which represent their cash surrender value based on the fair value of the underlying investments in the account and include equity securities, money market accounts, bond funds or other portfolios for which there is an active quoted market. Therefore, these policies are classified as Level 2. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based on a specified percentage of the I.R.S. applicable federal rates. These balances are also classified as Level 2. The funds held in the rabbi trust are included in Other Assets on the Consolidated Statements of Financial Position. The related deferred compensation liabilities are included in Other Long-term Liabilities on the Consolidated Statements of Financial Position with investment options generally mirroring those funds held by the rabbi trust. Therefore, the investments are classified as Level 2. Securities held by the trust are classified as trading securities. Unrealized gains and losses associated with these investments are included in the Company's earnings. During the thirteen weeks ended January 24, 2021, securities held by the trust generated gains of $11.8 million compared to gains of $5.2 million for the thirteen weeks ended January 26, 2020.
(4)    The Company’s commodity derivatives represent futures contracts and options used in its hedging or other programs to offset price fluctuations associated with purchases of corn and hogs, and to minimize the price risk assumed when forward priced contracts are offered to the Company’s commodity suppliers. The Company’s futures contracts for corn are traded on the Chicago Board of Trade, while futures contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available, and these contracts are classified as Level 1. All derivatives are reviewed for potential credit risk and risk of nonperformance. The net balance for each program is included in Other Current Assets or Accounts Payable, as appropriate, in the Consolidated Statements of Financial Position. As of January 24, 2021, the Company has recognized the obligation to return net cash collateral of $2.6 million from various counterparties (including cash of $11.1 million less $13.7 million of realized loss). As of October 25, 2020, the Company had recognized the right to reclaim net cash collateral of $12.3 million from various counterparties (including cash of $25.5 million less $13.2 million of realized loss).