10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________________________ to ________________________________________

Commission File Number: 1-2402

HORMEL FOODS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	41-0319970
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1 Hormel Place

Austin, MN  55912

(Address of Principal Executive Office, including zip code)

(507) 437-5611

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol	Name of each exchange on which registered
Common Stock	$0.01465	par value	HRL	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☒ Yes                ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     ☒  Yes                ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”  “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at August 28, 2022
Common Stock	$.01465	par value	546,197,604
Common Stock Non-Voting	$.01	par value	0

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
Item 1.		Financial Statements
	Consolidated Statements of Operations
	Consolidated Statements of Comprehensive Income
	Consolidated Condensed Statements of Financial Position
	Consolidated Statements of Changes in Shareholders' Investment
	Consolidated Condensed Statements of Cash Flows
	Notes to Consolidated Financial Statements
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Results of Operations
		Overview
		Consolidated Results
		Segment Results
		Related Party Transactions
	Liquidity and Capital Resources
	Critical Accounting Estimates
	Forward-looking Statements
Item 3.		Quantitative and Qualitative Disclosures About Market Risk
Item 4.		Controls and Procedures
PART II - OTHER INFORMATION
Item 1.		Legal Proceedings
Item 1A.		Risk Factors
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.		Exhibits
SIGNATURES

2

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

In thousands, except per share amounts

Unaudited

	Quarter Ended				Nine Months Ended
	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Net Sales	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438
Cost of Products Sold	2,528,364		2,440,322		7,577,062		6,581,613
Gross Profit	506,049		423,348		1,598,269		1,349,825
Selling, General and Administrative	222,147		226,284		672,777		622,630
Equity in Earnings of Affiliates	7,138		10,420		19,951		37,722
Operating Income	291,040		207,484		945,443		764,917
Interest and Investment Income	14,411		8,457		20,078		36,740
Interest Expense	15,615		11,703		44,913		27,718
Earnings Before Income Taxes	289,836		204,238		920,608		773,940
Provision for Income Taxes	71,010		27,164		200,393		146,549
Net Earnings	218,826		177,074		720,215		627,390
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest	(89)		157		112		290
Net Earnings Attributable to Hormel Foods Corporation	$	218,915	$	176,917	$	720,103	$	627,101
Net Earnings Per Share
Basic	$	0.40	$	0.33	$	1.32	$	1.16
Diluted	$	0.40	$	0.32	$	1.31	$	1.15
Weighted-average Shares Outstanding
Basic	546,077		541,746		544,486		540,618
Diluted	550,167		548,072		549,377		547,684

See Notes to Consolidated Financial Statements

3

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

In thousands

Unaudited

	Quarter Ended				Nine Months Ended
	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Net Earnings	$	218,826	$	177,074	$	720,215	$	627,390
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	(29,228)		12,626		(14,233)		23,489
Pension and Other Benefits	2,505		4,199		7,643		12,598
Deferred Hedging	(35,138)		(8,612)		967		42,016
Total Other Comprehensive Income (Loss)	(61,861)		8,213		(5,623)		78,103
Comprehensive Income	156,965		185,287		714,592		705,493
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	(540)		270		(206)		671
Comprehensive Income Attributable to Hormel Foods Corporation	$	157,505	$	185,017	$	714,798	$	704,822

See Notes to Consolidated Financial Statements

4

CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION

In thousands, except share and per share amounts

Unaudited

	July 31, 2022		October 31, 2021
Assets
Current Assets
Cash and Cash Equivalents	$	850,344	$	613,530
Short-term Marketable Securities	18,314		21,162
Accounts Receivable (Net of Allowance for Doubtful Accounts of    $3,500 at July 31, 2022, and $4,033 at October 31, 2021)	802,850		895,719
Inventories	1,679,179		1,369,198
Taxes Receivable	7,733		8,293
Prepaid Expenses and Other Current Assets	45,063		39,914
Total Current Assets	3,403,484		2,947,816
Goodwill	4,929,337		4,929,102
Other Intangibles	1,808,235		1,822,273
Pension Assets	311,157		289,096
Investments In and Receivables from Affiliates	277,727		299,019
Other Assets	292,412		299,907
Property, Plant and Equipment
Land	74,274		72,133
Buildings	1,392,584		1,332,881
Equipment	2,554,146		2,415,063
Construction in Progress	238,690		316,455
Less: Allowance for Depreciation	(2,141,628)		(2,027,414)
Net Property, Plant and Equipment	2,118,067		2,109,117
Total Assets	$	13,140,418	$	12,696,329

See Notes to Consolidated Financial Statements

5

HORMEL FOODS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION

In thousands, except share and per share amounts

Unaudited

	July 31, 2022		October 31, 2021
Liabilities and Shareholders' Investment
Current Liabilities
Accounts Payable and Accrued Expenses	$	799,202	$	844,502
Accrued Marketing Expenses	131,495		114,746
Employee Related Expenses	248,551		269,327
Interest and Dividends Payable	167,534		154,803
Taxes Payable	64,311		23,520
Current Maturities of Long-term Debt	8,807		8,756
Total Current Liabilities	1,419,899		1,415,654
Long-term Debt Less Current Maturities	3,294,287		3,315,147
Pension and Post-retirement Benefits	551,458		546,362
Other Long-term Liabilities	153,773		162,623
Deferred Income Taxes	354,053		278,183
Shareholders' Investment
Preferred Stock, Par Value $0.01 a Share–	—		—
Authorized 160,000,000 Shares: Issued–None
Common Stock, Non-voting, Par Value $0.01 a Share–	—		—
Authorized 400,000,000 Shares: Issued–None
Common Stock, Par Value $0.01465 a Share–	8,001		7,946
Authorized 1,600,000,000 Shares:
Shares Issued as of July 31, 2022: 546,155,583
Shares Issued as of October 31, 2021: 542,412,403
Additional Paid-in Capital	459,272		360,336
Accumulated Other Comprehensive Loss	(282,574)		(277,269)
Retained Earnings	7,176,977		6,881,870
Hormel Foods Corporation Shareholders' Investment	7,361,676		6,972,883
Noncontrolling Interest	5,272		5,478
Total Shareholders' Investment	7,366,948		6,978,360
Total Liabilities and Shareholders' Investment	$	13,140,418	$	12,696,329

See Notes to Consolidated Financial Statements

6

HORMEL FOODS CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT

In thousands, except per share amounts

Unaudited

	Quarter Ended July 25, 2021
	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non- controlling Interest		Total Shareholders’ Investment
	Shares	Amount		Shares	Amount
Balance at April 25, 2021	540,411	$	7,917	—	$	—	$	319,048	$	6,699,336	$	(325,629)	$	5,178	$	6,705,851
Net Earnings									176,917				157		177,074
Other Comprehensive Income (Loss)											8,100		113		8,213
Stock-based Compensation Expense							4,479								4,479
Exercise of Stock Options/Restricted Shares	2,125	31					30,635								30,666
Declared Cash Dividends – $0.2450 per Share									(132,551)						(132,551)
Balance at July 25, 2021	542,536	$	7,948	—	$	—	$	354,162	$	6,743,701	$	(317,528)	$	5,448	$	6,793,732
	Quarter Ended July 31, 2022
	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non- controlling Interest		Total Shareholders’ Investment
	Shares	Amount		Shares	Amount
Balance at May 1, 2022	546,053	$	8,000	—	$	—	$	451,836	$	7,100,730	$	(221,164)	$	5,812	$	7,345,214
Net Earnings									218,915				(89)		218,826
Other Comprehensive Income (Loss)											(61,410)		(451)		(61,861)
Stock-based Compensation Expense							4,566								4,566
Exercise of Stock Options/Restricted Shares	103	2					2,870								2,872
Declared Cash Dividends – $0.2600 per Share									(142,668)						(142,668)
Balance at July 31, 2022	546,156	$	8,001	—	$	—	$	459,272	$	7,176,977	$	(282,574)	$	5,272	$	7,366,948

7

	Nine Months Ended July 25, 2021
	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non- controlling Interest		Total Shareholders’ Investment
	Shares	Amount		Shares	Amount
Balance at October 25, 2020	539,887	$	7,909	—	$	—	$	289,554	$	6,523,335	$	(395,250)	$	4,778	$	6,430,326
Net Earnings									627,101				290		627,390
Other Comprehensive Income (Loss)											77,722		381		78,103
Purchases of Common Stock				(217)	(9,653)										(9,653)
Stock-based Compensation Expense	38	1					20,313								20,313
Exercise of Stock Options/Restricted Shares	2,828	41					44,416								44,457
Shares Retired	(217)	(3)		217	9,653		(120)		(9,530)						—
Declared Cash Dividends – $0.7350 per Share									(397,204)						(397,204)
Balance at July 25, 2021	542,536	$	7,948	—	$	—	$	354,162	$	6,743,701	$	(317,528)	$	5,448	$	6,793,732
	Nine Months Ended July 31, 2022
	Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non- controlling Interest		Total Shareholders’ Investment
	Shares	Amount		Shares	Amount
Balance at October 31, 2021	542,412	$	7,946	—	$	—	$	360,336	$	6,881,870	$	(277,269)	$	5,478	$	6,978,360
Net Earnings									720,103				112		720,215
Other Comprehensive Income (Loss)											(5,305)		(318)		(5,623)
Stock-based Compensation Expense	37	1					20,933								20,933
Exercise of Stock Options/Restricted Shares	3,706	54					78,003								78,058
Declared Cash Dividends – $0.7800 per Share									(424,996)						(424,996)
Balance at July 31, 2022	546,156	$	8,001	—	$	—	$	459,272	$	7,176,977	$	(282,574)	$	5,272	$	7,366,948

See Notes to Consolidated Financial Statements

8

HORMEL FOODS CORPORATION

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

In thousands

Unaudited

	Nine Months Ended
	July 31, 2022		July 25, 2021
Operating Activities
Net Earnings	$	720,215	$	627,390
Adjustments to Reconcile to Net Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization	191,568		162,490
Equity in Earnings of Affiliates	(19,951)		(37,722)
Distributions Received from Equity Method Investees	30,539		33,749
Provision for Deferred Income Taxes	71,427		2,375
Loss (Gain) on Property/Equipment Sales and Plant Facilities	5,098		1,596
Non-cash Investment Activities	13,610		(21,802)
Stock-based Compensation Expense	20,933		20,313
Changes in Operating Assets and Liabilities, Net of Acquisitions:
Decrease (Increase) in Accounts Receivable	96,674		(191,783)
Decrease (Increase) in Inventories	(311,312)		(202,217)
Decrease (Increase) in Prepaid Expenses and Other Current Assets	(3,666)		47,553
Increase (Decrease) in Pension and Post-retirement Benefits	(6,906)		3,629
Increase (Decrease) in Accounts Payable and Accrued Expenses	(84,384)		(30,187)
Increase (Decrease) in Net Income Taxes Payable	39,312		22,403
Net Cash Provided by (Used in) Operating Activities	763,157		437,786
Investing Activities
Net (Purchase) Sale of Securities	1,296		(1,304)
Acquisitions of Businesses/Intangibles	—		(3,396,246)
Purchases of Property and Equipment	(189,184)		(139,361)
Proceeds from Sales of Property and Equipment	1,044		1,910
Decrease (Increase) in Investments, Equity in Affiliates, and Other Assets	8,275		668
Proceeds from Company-owned Life Insurance	6,742		4,015
Net Cash Provided by (Used in) Investing Activities	(171,827)		(3,530,320)
Financing Activities
Proceeds from Long-term Debt	—		2,276,292
Repayments of Long-term Debt and Finance Leases	(6,498)		(256,535)
Dividends Paid on Common Stock	(415,923)		(390,206)
Share Repurchase	—		(9,653)
Proceeds from Exercise of Stock Options	77,958		44,007
Net Cash Provided by (Used in) Financing Activities	(344,463)		1,663,905
Effect of Exchange Rate Changes on Cash	(10,054)		5,683
Increase (Decrease) in Cash and Cash Equivalents	236,814		(1,422,946)
Cash and Cash Equivalents at Beginning of Year	613,530		1,714,309
Cash and Cash Equivalents at End of Quarter	$	850,344	$	291,363

See Notes to Consolidated Financial Statements

9

HORMEL FOODS CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unaudited

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include certain information and footnotes required by U.S. generally accepted accounting principles (GAAP) for comprehensive financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the interim period are not necessarily indicative of the results that may be expected for the full year.

These statements should be reviewed in conjunction with the consolidated financial statements and associated notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021. The significant accounting policies used in preparing these interim consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the consolidated financial statements in the Form 10-K with the exception of new requirements adopted in the first quarter of fiscal 2022. The Company has determined there have been no material changes in the Company’s significant accounting policies, including estimates and assumptions, as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

Fiscal Year: The Company’s fiscal year ends on the last Sunday in October. Fiscal 2022 consists of 52 weeks. Fiscal 2021 consisted of 53 weeks with the additional week occurring in the fourth quarter.

Rounding: Certain amounts in the Consolidated Financial Statements and associated notes may not foot due to rounding. All percentages have been calculated using unrounded amounts.

Reclassifications: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

Accounting Changes and Recent Accounting Pronouncements:

New Accounting Pronouncements Adopted in Current Fiscal Year 

In December 2019, the Financial Accounting Standards Board (FASB) issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740). The updated guidance simplifies the accounting for income taxes by removing certain exceptions in Topic 740 and clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted the provisions of this new accounting standard at the beginning of fiscal 2022 and adoption did not have a material impact on its consolidated financial statements.

New Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The guidance provides optional expedients and exceptions to account for contracts, hedging relationships, and other transactions that reference London Interbank Referenced Rate (LIBOR) or another reference rate expected to be discontinued. The optional guidance can be applied from March 12, 2020 through December 31, 2022. The Company currently holds an interest rate swap which uses LIBOR as the benchmark interest rate. When LIBOR ceases to be published in June 2023, the benchmark interest rate of the swap will change to Secured Overnight Financing Rate (SOFR) plus a spread adjustment. The Company does not expect adoption of ASU 2020-04 to have a material impact on its consolidated financial statements.

Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not relevant to the Company.

NOTE B - ACQUISITIONS AND DIVESTITURES

Acquisitions: On June 7, 2021, the Company acquired the Planters® snack nuts business from The Kraft Heinz Company. The acquisition includes the Planters®, NUT-rition®, and Corn Nuts® brands. The final purchase price, including working capital adjustments, was $3.4 billion. The transaction was funded with the Company’s cash on hand and from the issuance of long-term debt.

10

Planters® is an iconic snack brand and this acquisition significantly expands the Company's presence, and should broaden the scope for future acquisitions, in the growing snacking space. Operating results for this acquisition have been included in the Company's Consolidated Statements of Operations from the date of acquisition and are reflected in the Grocery Products, Refrigerated Foods, and International & Other segments. The acquisition contributed $243.1 million and $753.9 million of net sales during the third quarter and nine months of fiscal 2022, respectively. The acquisition contributed $141.3 million of net sales during the comparable periods of fiscal 2021. As the acquisition has been integrated within the Company's existing operations, post-acquisition net earnings are not discernible.

Acquisition-related costs were $27.5 million and $30.3 million for the third quarter and nine months ended July 25, 2021, respectively, which are reflected in the Consolidated Statements of Operations as Selling, General and Administrative. Additional one-time adjustments related to the revaluation of acquired inventory of $12.9 million were recognized in the Consolidated Statements of Operations as Cost of Products Sold for the third quarter and nine months ended July 25, 2021. The combined impact of these one-time acquisition costs and accounting adjustments were $40.4 million and $43.2 million for the third quarter and nine months ended July 25, 2021, respectively.

The acquisition was accounted for as a business combination using the acquisition method. The Company determined the acquisition date fair values of the assets acquired using independent appraisals. The Company completed purchase accounting allocations in the fourth quarter of fiscal 2021.

The following unaudited pro forma financial information presents the combined results of operations as if the acquisition of the Planters® snack nuts business had occurred on October 27, 2019. These unaudited pro forma results do not necessarily reflect the actual results of operations that would have been achieved had the acquisition occurred on that date, nor are they necessarily indicative of future results of operations.

	Quarter Ended		Nine Months Ended
in thousands	July 25, 2021		July 25, 2021
Pro Forma Net Sales	$	2,981,630	$	8,606,935
Pro Forma Net Earnings Attributable to Hormel Foods Corporation	215,983		704,143

The pro forma results include charges for depreciation and amortization of acquired assets and interest expense on debt issued to finance the acquisition, as well as the related income taxes. The pro forma results for the third quarter and nine months ended July 25, 2021 include an adjustment to add back the transaction costs incurred and revaluation of inventory acquired in those periods, along with the related income tax effects.

NOTE C - GOODWILL AND INTANGIBLE ASSETS

Goodwill: The change in the carrying amounts of goodwill for the nine months ended July 31, 2022 are:

in thousands	Grocery Products		Refrigerated Foods		Jennie-O Turkey Store		International & Other		Total
Balance at October 31, 2021	$	2,398,354	$	2,094,421	$	176,628	$	259,699	$	4,929,102
Foreign Currency Translation	—		—		—		235		235
Balance at July 31, 2022	$	2,398,354	$	2,094,421	$	176,628	$	259,935	$	4,929,337

Intangible Assets: The carrying amounts for indefinite-lived intangible assets are:

in thousands	July 31, 2022		October 31, 2021
Brands/Tradenames/Trademarks	$	1,665,190	$	1,665,190
Other Intangibles	184		184
Foreign Currency Translation	(6,318)		(6,646)
Total	$	1,659,056	$	1,658,728

11

The gross carrying amount and accumulated amortization for definite-lived intangible assets are:

	July 31, 2022				October 31, 2021
in thousands	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer Lists/Relationships	$	168,239	$	(66,558)	$	168,239	$	(56,882)
Other Intangibles	59,241		(10,544)		60,241		(8,356)
Tradenames/Trademarks	10,536		(7,308)		10,536		(5,700)
Foreign Currency Translation	—		(4,426)		—		(4,534)
Total	$	238,016	$	(88,836)	$	239,016	$	(75,471)

Amortization expense was $4.8 million and $14.5 million for the quarter and nine months ended July 31, 2022, respectively, compared to $4.4 million and $12.3 million for the quarter and nine months ended July 25, 2021.

Estimated annual amortization expense for the five fiscal years after October 31, 2021, is as follows:

in thousands	Amortization Expense
2022	$	19,244
2023	18,351
2024	16,352
2025	14,627
2026	14,170

NOTE D - INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

The Company accounts for its majority-owned operations under the consolidation method. Investments in which the Company owns a minority interest and for which there are no other indicators of control are accounted for under the equity method. These investments, along with any related receivables from affiliates, are included in the Consolidated Condensed Statements of Financial Position as Investments In and Receivables From Affiliates.

Investments In and Receivables From Affiliates consist of:

in thousands	Segment	% Owned	July 31, 2022		October 31, 2021
MegaMex Foods, LLC	Grocery Products	50%	$	188,746	$	205,413
Other Joint Ventures	International & Other	Various (20-50%)	88,981		93,606
Total			$	277,727	$	299,019

Equity in Earnings of Affiliates consists of:

		Quarter Ended				Nine Months Ended
in thousands	Segment	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
MegaMex Foods, LLC	Grocery Products	$	4,555	$	7,529	$	14,562	$	29,625
Other Joint Ventures	International & Other	2,582		2,891		5,390		8,097
Total		$	7,138	$	10,420	$	19,951	$	37,722

For the quarter and nine months ended July 31, 2022, $0.0 million and $30.5 million of dividends were received from affiliates, compared to $11.2 million and $33.7 million of dividends received for the quarter and nine months ended July 25, 2021.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $10.4 million is remaining as of July 31, 2022. This difference is being amortized through Equity in Earnings of Affiliates.

12

NOTE E - INVENTORIES

Principal components of inventories are:

in thousands	July 31, 2022		October 31, 2021
Finished Products	$	945,454	$	725,115
Raw Materials and Work-in-Process	431,005		395,403
Operating Supplies	207,504		163,416
Maintenance Materials and Parts	95,216		85,264
Total	$	1,679,179	$	1,369,198

NOTE F - DERIVATIVES AND HEDGING

The Company uses hedging programs to manage price risk associated with commodity purchases and interest rates. These programs utilize futures, swaps, and options contracts to manage the Company’s exposure to market fluctuations. The Company has determined its designated hedging programs to be highly effective in offsetting the changes in fair value or cash flows generated by the items hedged. Effectiveness testing is performed on a quarterly basis to ascertain a high level of effectiveness for cash flow and fair value hedging programs. If the requirements of hedge accounting are no longer met, hedge accounting will be discontinued immediately and any future changes to fair value will be recorded directly through earnings.

Cash Flow Commodity Hedges:  The Company designates grain and lean hog futures, swaps, and options used to offset price fluctuations in the Company’s future direct grain and hog purchases as cash flow hedges. Effective gains or losses related to these cash flow hedges are reported in Accumulated Other Comprehensive Loss (AOCL) and reclassified into earnings, through Cost of Products Sold, in the periods in which the hedged transactions affect earnings. The Company typically does not hedge its grain exposure beyond the next two upcoming fiscal years and its hog exposure beyond the next fiscal year.

Fair Value Commodity Hedges:  The Company designates the futures it uses to minimize the price risk assumed when fixed forward priced contracts are offered to the Company’s commodity suppliers as fair value hedges. The intent of the program is to make the forward priced commodities cost nearly the same as cash market purchases at the date of delivery. Changes in the fair value of the futures contracts, along with the gain or loss on the hedged purchase commitment, are marked-to-market through earnings and recorded on the Consolidated Condensed Statements of Financial Position as a Current Asset and Current Liability, respectively. Effective gains or losses related to these fair value hedges are recognized through Cost of Products Sold in the periods in which the hedged transactions affect earnings.

Cash Flow Interest Rate Hedges: In the second quarter of fiscal 2021, the Company designated two separate interest rate locks as cash flow hedges to manage interest rate risk associated with the anticipated debt transactions required to fund the acquisition of the Planters® snack nuts business. The total notional amount of the Company's locks was $1.25 billion. In the third quarter of fiscal 2021, the associated unsecured senior notes were issued with a tenor of seven and thirty years and both locks were lifted (See Note J - Long-term Debt and Other Borrowing Arrangements). Mark-to-market gains and losses on these instruments were deferred as a component of AOCL. The resulting gain in AOCL is reclassified to Interest Expense in the periods in which the hedged transactions affect earnings.

Fair Value Interest Rate Hedge: In the first quarter of fiscal 2022, the Company entered into an interest rate swap to protect against changes in the fair value of a portion of previously issued senior unsecured notes attributable to the change in the benchmark interest rate. The hedge specifically designates the last $450 million of the notes due June 2024 (the “2024 Notes”). The swap compounds quarterly and settles semi-annually with gains and losses recognized in earnings through interest expense. The swap includes SOFR plus a spread adjustment as a fallback rate to be used when LIBOR ceases to be published in June 2023. Mark-to-market changes in the fair value of the interest rate swap and hedged debt are also recognized as interest expense.

Other Derivatives:  The Company holds certain futures contract positions as part of a merchandising program and to manage the Company’s exposure to fluctuations in commodity markets. The Company has not applied hedge accounting to these positions. Activity related to derivatives not designated as hedges is immaterial to the consolidated financial statements.

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Volume: The Company's outstanding contracts related to its commodity hedging programs include:

	Volume
Commodity Contracts	July 31, 2022	October 31, 2021
Corn	34.9 million bushels	33.1 million bushels
Lean Hogs	165.0 million pounds	120.0 million pounds

Fair Value of Derivatives:  The fair values of the Company’s derivative instruments designated as hedges are:

		Gross Fair Value
in thousands	Location on Consolidated Condensed Statements of Financial Position	July 31, 2022		October 31, 2021
Derivatives Designated as Hedges:
Commodity Contracts(1)	Other Current Assets	$	19,058	$	21,798
Interest Rate Contracts	Interest and Dividends Payable	(17,473)		—

(1) Amounts represent the gross fair value of commodity 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 commodity derivative in the Consolidated Condensed Statements of Financial Position. The gross asset position as of July 31, 2022 is offset by the obligation to return net cash collateral of $4.8 million contained within the master netting arrangement. The gross asset position as of October 31, 2021 is offset by the obligation to return net cash collateral of $10.8 million. See Note I - Fair Value Measurements for a discussion of these net amounts as reported in the Consolidated Condensed Statements of Financial Position.

Fair Value Hedge - Assets (Liabilities): The carrying amount of the Company's fair value hedged assets (liabilities) are:

		Carrying Amount of Hedged Assets/(Liabilities)
in thousands	Location on Consolidated Condensed Statements of Financial Position	July 31, 2022		October 31, 2021
Fair Value Hedges:
Commodity Contracts	Accounts Payable(1)	$	(2,126)	$	3,432
Interest Rate Contracts	Long-term Debt - Less Current Maturities(2)	(432,527)		—

(1)  Represents the carrying amount of fair value hedged assets and liabilities which are offset by other assets included in master netting arrangements described above.

(2) Represents the carrying amount of the hedged portion of the "2024 Notes". As of July 31, 2022, a cumulative basis adjustment of $17.5 million has been included in the carrying amount.

Accumulated Other Comprehensive Loss Impact: As of July 31, 2022, the Company included in AOCL hedging gains (before tax) of $34.0 million on commodity contracts and $13.7 million related to interest rate settled positions. The Company expects to recognize the majority of the gains on commodity contracts over the next twelve months. Gains on interest rate contracts offset the hedged interest payments over the tenor of the debt instruments.

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The effect of AOCL for gains or losses (before tax) related to the Company's derivative instruments are:

	Gain/(Loss) Recognized  in AOCL (1)				Gain/(Loss) Reclassified from AOCL into Earnings (1)				Location on Consolidated Statements of Operations
	Quarter Ended				Quarter Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Cash Flow Hedges:
Commodity Contracts	$	(24,312)	$	5,467	$	21,216	$	14,261	Cost of Products Sold
Excluded Component (2)	(576)		1,261		—		—
Interest Rate Contracts	—		(3,675)		247		152		Interest Expense
	Gain/(Loss) Recognized  in AOCL (1)				Gain/(Loss) Reclassified from AOCL into Earnings (1)				Location on Consolidated Statements of Operations
	Nine Months Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Cash Flow Hedges:
Commodity Contracts	$	46,299	$	58,129	$	40,231	$	18,723	Cost of Products Sold
Excluded Component (2)	(4,020)		1,261		—		—
Interest Rate Contracts	—		14,864		741		152		Interest Expense

(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 of corn options excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in AOCL.

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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 are:

	Consolidated Statements of Operations Impact
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Net Earnings Attributable to Hormel Foods Corporation	$	218,915	$	176,917	$	720,103	$	627,101
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL	21,216		14,261		38,561		18,723
Amortization of Excluded Component from Options	(1,145)		(1,543)		(3,089)		(1,543)
Gain (Loss) Due to Discontinuance of Cash Flow Hedges (1)	—		—		1,620		—
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures (2)	(6,758)		(11,739)		(20,165)		(26,010)
Total Gain (Loss) on Commodity Contracts (3)	$	13,313	$	979	$	16,927	$	(8,830)
Cash Flow Hedges - Interest Rate Locks
Amortization of Gain on Interest Rate Locks	247		152		741		152
Fair Value Hedge - Interest Rate Swap
Gain (Loss) on Interest Rate Swap	(222)		—		1,270		—
Total Gain (Loss) on Interest Rate Contracts (4)	$	25	$	152	$	2,011	$	152
Total Gain (Loss) Recognized in Earnings	$	13,338	$	1,131	$	18,938	$	(8,678)

(1) During the second quarter of fiscal 2022, the Company discontinued hedge accounting on 0.6 million bushels of corn usage that was deemed no longer probable to occur.

(2)     Amounts represent gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and nine months ended July 31, 2022, which were offset by a corresponding gain or loss 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.

(3)    Total Gain (Loss) on Commodity Contracts is recognized in earnings through Cost of Products Sold.

(4)    Total Gain (Loss) on Interest Rate Contracts is recognized in earnings through Interest Expense.

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NOTE G - PENSION AND OTHER POST-RETIREMENT BENEFITS

Net periodic benefit cost for pension and other post-retirement benefit plans consists of:

	Pension Benefits
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Service Cost	$	10,019	$	9,107	$	30,057	$	27,321
Interest Cost	12,639		12,362		37,919		37,086
Expected Return on Plan Assets	(27,062)		(25,189)		(81,186)		(75,567)
Amortization of Prior Service Cost	(374)		(367)		(1,122)		(1,101)
Recognized Actuarial Loss	3,132		5,578		9,397		16,735
Net Periodic Cost	$	(1,645)	$	1,491	$	(4,936)	$	4,474

	Post-retirement Benefits
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Service Cost	$	118	$	131	$	351	$	392
Interest Cost	1,923		1,948		5,763		5,844
Amortization of Prior Service Cost	2		(164)		6		(492)
Recognized Actuarial Loss	610		495		1,829		1,486
Net Periodic Cost	$	2,652	$	2,410	$	7,950	$	7,230

Non-service cost components of net pension and postretirement benefit cost are presented within Interest and Investment Income on the Consolidated Statements of Operations.

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NOTE H - ACCUMULATED OTHER COMPREHENSIVE LOSS

Components of Accumulated Other Comprehensive Loss are:

in thousands	Foreign Currency Translation		Pension & Other Benefits			Derivatives &  Hedging			Accumulated Other Comprehensive Loss
Balance at May 1, 2022	$	(36,319)	$	(256,073)		$	71,228		$	(221,164)
Unrecognized Gains (Losses)
Gross	(28,777)		(39)			(24,888)			(53,703)
Tax Effect	—		—			5,999			5,999
Reclassification into Net Earnings
Gross	—		3,370		(1)	(21,463)		(2)	(18,093)
Tax Effect	—		(827)			5,214			4,387
Net of Tax Amount	(28,777)		2,505			(35,138)			(61,410)
Balance at July 31, 2022	$	(65,096)	$	(253,568)		$	36,090		$	(282,574)
Balance at October 31, 2021	$	(51,181)	$	(261,211)		$	35,123		$	(277,269)
Unrecognized Gains (Losses)
Gross	(13,915)		12			42,279			28,377
Tax Effect	—		—			(10,285)			(10,285)
Reclassification into Net Earnings
Gross	—		10,110		(1)	(40,972)		(2)	(30,862)
Tax Effect	—		(2,480)			9,944			7,465
Net of Tax Amount	(13,915)		7,643			967			(5,305)
Balance at July 31, 2022	$	(65,096)	$	(253,568)		$	36,090		$	(282,574)

(1)    Included in the computation of net periodic cost. See Note G - Pension and Other Post-Retirement Benefits for additional information.

(2)    Included in Cost of Products Sold and Interest Expense in the Consolidated Statements of Operations. See Note F - Derivatives and Hedging for additional information.

NOTE I - FAIR VALUE MEASUREMENTS

Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of the three levels below based on the inputs used in the valuation.

Level 1:  Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.

Level 3:  Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.

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The Company’s financial assets and liabilities carried at fair value on a recurring basis as of July 31, 2022, and October 31, 2021, and their level within the fair value hierarchy are presented in the table below.

	Fair Value Measurements at July 31, 2022
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)	$	850,344	$	850,015	$	328	$	—
Short-term Marketable Securities (2)	18,314		9,395		8,919		—
Other Trading Securities (3)	190,962		—		190,962		—
Commodity Derivatives (4)	14,719		12,678		2,042		—
Total Assets at Fair Value	$	1,074,339	$	872,088	$	202,251	$	—
Liabilities at Fair Value
Deferred Compensation (3)	$	60,977	$	—	$	60,977	$	—
Interest Rate Derivatives (5)	17,473		—		17,473		—
Total Liabilities at Fair Value	$	78,450	$	—	$	78,450	$	—

	Fair Value Measurements at October 31, 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)	$	613,530	$	611,111	$	2,419	$	—
Short-term Marketable Securities (2)	21,162		8,790		12,372		—
Other Trading Securities (3)	203,020		—		203,020		—
Commodity Derivatives (4)	13,522		8,104		5,418		—
Total Assets at Fair Value	$	851,234	$	628,005	$	223,229	$	—
Liabilities at Fair Value
Deferred Compensation (3)	$	70,466	$	—	$	70,466	$	—
Total Liabilities at Fair Value	$	70,466	$	—	$	70,466	$	—

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 majority of the funds held in the rabbi trust relate to 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 Company's deferred compensation plans, participants can defer certain types of compensation and elect to receive a return based on the changes in fair value of various investment options which include equity securities, money market accounts, bond funds or other portfolios for which there is an active quoted market. 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 liabilities are classified as Level 2. The Company maintains funding in the rabbi trust generally mirroring the selections within the deferred compensation plans. 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. These policies are classified as Level 2.

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The rabbi trust is included in Other Assets and deferred compensation liabilities in Other Long-term Liabilities on the Consolidated Condensed Statements of Financial Position. Securities held by the rabbi trust are classified as trading securities. Unrealized gains and losses associated with these investments are included in the Company's earnings. During the quarter and nine months ended July 31, 2022, securities held by the rabbi trust generated losses of $0.1 million and $12.1 million, respectively, compared to gains of $1.5 million and $18.6 million for the quarter and nine months ended July 25, 2021.

(4)    The Company’s commodity derivatives represent futures, swaps, and options contracts 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. The Company’s corn futures option contracts are OTC instruments classified as Level 2 whose value is calculated using the Black-Scholes pricing model, corn future prices quoted from the Chicago Board of Trade, and other adjustments to inputs that are observable in active markets. 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 Condensed Statements of Financial Position. As of July 31, 2022, the Company has recognized the obligation to return net cash collateral of $4.8 million from various counterparties (including cash of $24.9 million less $20.1 million of realized gain). As of October 31, 2021, the Company had recognized the obligation to return net cash collateral of $10.8 million from various counterparties (including cash of $45.6 million less $34.8 million of realized gain).

(5)    The Company holds an interest rate hedging position to minimize the risk related to future interest rate changes. The fair value of the outstanding interest rate hedge agreement is based on an observable benchmark interest rate (LIBOR) and therefore classified as Level 2. The interest rate derivatives are included in Interest and Dividends Payable in the Consolidated Condensed Statements of Financial Position.

The Company’s financial assets and liabilities include accounts receivable, accounts payable, and other liabilities, for which carrying value approximates fair value. The Company does not carry its long-term debt at fair value in its Consolidated Condensed Statements of Financial Position. The fair value of long-term debt, utilizing discounted cash flows (Level 2), was $3.0 billion as of July 31, 2022, and $3.3 billion as of October 31, 2021. See Note J - Long Term Debt and Other Borrowing Arrangements for additional information.

The Company measures certain nonfinancial assets and liabilities at fair value, which are recognized or disclosed on a nonrecurring basis (e.g. goodwill, intangible assets, and property, plant and equipment). During the quarter and nine months ended July 31, 2022, and July 25, 2021, there were no material remeasurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.

NOTE J - LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS

Long-term Debt consists of: 

in thousands	July 31, 2022		October 31, 2021
Senior Unsecured Notes, with Interest at 3.050%      Interest Due Semi-annually through June 2051 Maturity Date	$	600,000	$	600,000
Senior Unsecured Notes, with Interest at 1.800%      Interest Due Semi-annually through June 2030 Maturity Date	1,000,000		1,000,000
Senior Unsecured Notes, with Interest at 1.700%      Interest Due Semi-annually through June 2028 Maturity Date	750,000		750,000
Senior Unsecured Notes, with Interest at 0.650%      Interest Due Semi-annually through June 2024 Maturity Date	950,000		950,000
Unamortized Discount on Senior Notes	(7,934)		(8,484)
Unamortized Debt Issuance Costs	(20,751)		(23,435)
Interest Rate Swap	(17,473)		—
Finance Lease Liabilities	46,723		52,999
Other Financing Arrangements	2,529		2,823
Total	$	3,303,094	$	3,323,903
Less: Current Maturities of Long-term Debt	8,807		8,756
Long-term Debt Less Current Maturities	$	3,294,287	$	3,315,147

Senior Unsecured Notes: On June 11, 2020, the Company issued senior notes in an aggregate principal amount of $1.0 billion, due June 11, 2030. The notes bear interest at a fixed rate of 1.800% per annum, with interest paid semi-annually in arrears on June 11 and December 11 of each year, commencing December 11, 2020. The notes may be redeemed in whole or in part at any time at the applicable redemption price set forth in the prospectus supplement. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

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On June 3, 2021, the Company issued $950.0 million aggregate principal amount of its 0.650% notes due 2024 (the "2024 Notes"), $750.0 million aggregate principal amount of its 1.700% notes due 2028 (the "2028 Notes") and $600.0 million aggregate principal amount of its 3.050% notes due 2051 (the "2051 Notes"). Interest will accrue per annum at the stated rates with interest on the notes being paid semi-annually in arrears on June 3 and December 3 of each year, commencing December 3, 2021. Interest rate risk was hedged utilizing interest rate locks on the 2028 Notes and 2051 Notes. The Company lifted the hedges in conjunction with the issuance of these notes. The 2024 Notes may be redeemed in whole or in part one year after their issuance without penalty for early partial payments or full redemption. The 2028 Notes and 2051 Notes may be redeemed in whole or in part at any time at the applicable redemption price. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

In the first quarter of fiscal 2022, the Company entered into an interest rate swap with a notional amount totaling $450.0 million effectively converting a portion of the 2024 Notes from a fixed to variable rate basis. The interest rate swap was designated as a fair value hedge of the underlying debt obligation. See Note F - Derivatives and Hedging for additional details.

Unsecured Revolving Credit Facility: On May 6, 2021, the Company entered into an unsecured revolving credit agreement with Wells Fargo Bank, National Association as administrative agent, swingline lender and issuing lender, U.S. Bank National Association, JPMorgan Chase Bank, N.A. and BofA Securities, Inc. as syndication agents and the lenders party thereto. In connection with entering the revolving credit agreement, the Company terminated its existing credit facility that was entered into on June 24, 2015. The revolving credit agreement provides for an unsecured revolving credit facility with an aggregate principal commitment amount at any time outstanding of up to $750.0 million with an uncommitted increase option of an additional $375.0 million upon the satisfaction of certain conditions. The unsecured revolving line of credit bears interest, at the Company’s election, at either a Base Rate plus margin of 0.0% to 0.150% or the Eurocurrency Rate plus margin of 0.575% to 1.150% and a variable fee of 0.050% to 0.100% is paid for the availability of this credit line. Extensions of credit under the facility may be made in the form of revolving loans, swingline loans and letters of credit. The lending commitments under the agreement are scheduled to expire on May 6, 2026, at which time the Company will be required to pay in full all obligations then outstanding. As of July 31, 2022, and October 31, 2021, the Company had no outstanding draws from this facility.

Debt Covenants: The Company is required by certain covenants in its debt agreements to maintain specified levels of financial ratios and financial position. As of July 31, 2022, the Company was in compliance with all of these covenants.

NOTE K - INCOME TAXES

The Company's tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events that may occur during the quarter. The effects of tax legislation are recognized in the period in which the law is enacted. The deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years the related temporary differences are anticipated to reverse.

The Company's effective tax rate for the quarter and nine months ended July 31, 2022, was 24.5 percent and 21.8 percent compared to 13.3 percent and 18.9 percent for the corresponding periods a year ago. The higher effective tax rate in the current quarter is due primarily to the decrease in tax benefits from stock option exercises.

The amount of unrecognized tax benefits, including interest and penalties, is recorded in Other Long-term Liabilities. If recognized as of July 31, 2022, and July 25, 2021, $19.5 million and $24.5 million, respectively, would impact the Company’s effective tax rate. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense. Interest and penalties included in income tax expense was immaterial for the quarter ended July 31, 2022, and July 25, 2021. The amount of accrued interest and penalties at July 31, 2022, and July 25, 2021, associated with unrecognized tax benefits was $4.8 million and $7.5 million, respectively.

The Company is regularly audited by federal and state taxing authorities. The United States Internal Revenue Service (I.R.S.) concluded its examination of fiscal 2019 in the second quarter of fiscal 2021. The Company has elected to participate in the Compliance Assurance Process (CAP) for fiscal years through 2023. The objective of CAP is to contemporaneously work with the I.R.S. to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time.

The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2015. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change, based on the status of the examinations it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

Subsequent to the end of the quarter, the Inflation Reduction Act of 2022 was signed into law. This legislation includes provisions that provide tax incentives as well as impose a 15% minimum tax on certain corporations' book income and a 1% excise tax on

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certain stock repurchases. The Company is evaluating the effect these new laws, which will be effective in fiscal years 2023 and 2024, may have on our consolidated financial statements.

NOTE L - EARNINGS PER SHARE DATA

The reported net earnings attributable to the Company were used when computing basic and diluted earnings per share. The following table sets forth the shares used as the denominator for those computations:

	Quarter Ended		Nine Months Ended
in thousands	July 31, 2022	July 25, 2021	July 31, 2022	July 25, 2021
Basic Weighted-Average Shares Outstanding	546,077	541,746	544,486	540,618
Dilutive Potential Common Shares	4,090	6,326	4,891	7,066
Diluted Weighted-Average Shares Outstanding	550,167	548,072	549,377	547,684
Antidilutive Potential Common Shares	1,787	2,350	2,026	2,305

NOTE M - 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 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. 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.

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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.

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Sales to Unaffiliated Customers
Grocery Products	$	869,802	$	698,584	$	2,598,964	$	1,904,415
Refrigerated Foods	1,660,257		1,624,641		4,932,070		4,445,099
Jennie-O Turkey Store	323,796		350,897		1,115,554		1,035,397
International & Other	180,559		189,548		528,743		546,528
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438
Intersegment Sales
Grocery Products	$	—	$	—	$	—	$	—
Refrigerated Foods	4,645		7,636		18,825		19,527
Jennie-O Turkey Store	66,803		30,581		167,256		89,715
International & Other	—		—		—		—
Total	71,449		38,217		186,080		109,242
Intersegment Elimination	(71,449)		(38,217)		(186,080)		(109,242)
Total	$	—	$	—	$	—	$	—
Net Sales
Grocery Products	$	869,802	$	698,584	$	2,598,964	$	1,904,415
Refrigerated Foods	1,664,902		1,632,277		4,950,895		4,464,626
Jennie-O Turkey Store	390,599		381,478		1,282,810		1,125,112
International & Other	180,559		189,548		528,743		546,528
Intersegment Elimination	(71,449)		(38,217)		(186,080)		(109,242)
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438
Segment Profit
Grocery Products	$	76,478	$	80,791	$	265,263	$	270,963
Refrigerated Foods	177,109		153,216		517,993		467,740
Jennie-O Turkey Store	37,433		5,874		142,969		45,514
International & Other	25,334		27,915		75,071		84,600
Total Segment Profit	316,354		267,796		1,001,295		868,817
Net Unallocated Expense	26,429		63,715		80,799		95,166
Noncontrolling Interest	(89)		157		112		290
Earnings Before Income Taxes	$	289,836	$	204,238	$	920,608	$	773,940

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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 are:

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
U.S. Retail	$	1,866,971	$	1,786,871	$	5,771,835	$	5,142,389
U.S. Foodservice	971,201		851,897		2,816,733		2,162,481
International	196,242		224,902		586,763		626,568
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438

Beginning in the first quarter of 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 consist primarily of meat and other food products. Total revenue contributed by classes of similar products are: 

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Perishable	$	1,813,513	$	1,610,378	$	5,369,888	$	4,440,347
Shelf-stable	649,853		670,446		1,914,496		1,761,883
Poultry	470,207		500,121		1,572,342		1,468,957
Miscellaneous	100,841		82,726		318,606		260,251
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438

Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, and guacamole (excludes 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.

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Overview

The Company is a global manufacturer and marketer of branded food products. It operates in four reportable segments as described in Note M - Segment Reporting in the Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

The Company reported net earnings per diluted share of $0.40 for the third quarter of fiscal 2022, up 25 percent compared to last year. Significant factors impacting the quarter were:

•Net sales for the third quarter were a record, driven by the inclusion of the Planters® snack nuts business, growth from the Company's foodservice businesses, and strong demand across the nut butters, Mexican and simple meals portfolios in Grocery Products. Net sales also benefited from pricing actions across the portfolio.

•Segment profit for the quarter increased 18 percent. Strong results from Jennie-O Turkey Store, Refrigerated Foods, and the contribution from the Planters® snack nuts business were the key contributors to growth.

•Compared to the prior year, earnings before income taxes for the quarter increased 42 percent. Last year's results were impacted by one-time acquisition costs and accounting adjustments related to the acquisition of the Planters® snack nuts business of $40 million.

•Jennie-O Turkey Store segment profit increased significantly due to higher commodity prices and foodservice sales.

•Refrigerated Foods segment profit growth was driven by strong results from the value-added businesses, more than offsetting higher operational and logistics costs, and lower commodity profitability.

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•International & Other segment profit declined for the quarter. Profit growth in China, due primarily to lower pork input costs, did not offset the impact of lower export sales.

•Grocery Products segment profit declined due to the impact from continued inflationary pressures and lower results from MegaMex.

•Year-to-date cash flow from operations was $763 million, up 74 percent compared to the prior year.

•Fourth quarter and full year comparisons will be to fiscal 2021 results which included an extra week in the fourth quarter.

•On August 9, 2022, the Company announced a new strategic operating model and will be transitioning to three operating segments – Retail, Foodservice and International. The Company will begin operating under the new model at the beginning of fiscal 2023 on October 31, 2022. Earnings will first be reported under this structure for the first quarter of fiscal 2023.

Consolidated Results

Volume, Net Sales, Earnings, and Diluted Earnings per Share

	Quarter Ended					Nine Months Ended
in thousands, except per share amounts	July 31, 2022		July 25, 2021		% Change	July 31, 2022		July 25, 2021		% Change
Volume (lbs.)	1,074,609		1,180,634		(9.0)	3,443,679		3,553,288		(3.1)
Organic Volume (1)	1,049,277		1,180,634		(11.1)	3,279,862		3,553,288		(7.7)
Net Sales	$	3,034,414	$	2,863,670	6.0	$	9,175,331	$	7,931,438	15.7
Organic Net Sales (1)	2,939,687		2,863,670		2.7	8,569,765		7,931,438		8.0
Earnings Before Income Taxes	289,836		204,238		41.9	920,608		773,940		19.0
Net Earnings Attributable to Hormel Foods Corporation	218,915		176,917		23.7	720,103		627,101		14.8
Diluted Earnings per Share	0.40		0.32		25.0	1.31		1.15		13.9
Adjusted Diluted Earnings Per Share (1)	0.40		0.39		2.6	1.31		1.21		8.3

(1)  See the "Non-GAAP Financial Measures" section below for a description of the Company's use of measures not defined by GAAP.

Net Sales

Record net sales for the third quarter and first nine months of the year were driven primarily by the inclusion of the Planters® snack nuts business and by growth from the Company's foodservice businesses. All segments have benefited from pricing actions taken during the first nine months of the year to offset inflationary pressures. The third quarter marked the seventh consecutive quarter of record sales.

Cost of Products Sold

	Quarter Ended					Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		% Change	July 31, 2022		July 25, 2021		% Change
Cost of Products Sold	$	2,528,364	$	2,440,322	3.6	$	7,577,062	$	6,581,613	15.1

Cost of products sold for the third quarter and first nine months of fiscal 2022 increased due to inflationary pressures stemming from raw materials, packaging, freight, labor and many other inputs. The inclusion of the Planters® snack nuts business was also a driver of higher costs.

Costs are expected to remain elevated due to the continued impacts of broad-based inflation. In general, raw material input costs for pork, beef, turkey, chicken, and feed are anticipated to remain above historical levels.

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Gross Profit

	Quarter Ended							Nine Months Ended
in thousands	July 31, 2022			July 25, 2021			% Change	July 31, 2022			July 25, 2021			% Change
Gross Profit	$	506,049		$	423,348		19.5	$	1,598,269		$	1,349,825		18.4
Percentage of Net Sales	16.7		%	14.8		%		17.4		%	17.0		%

Gross profit as a percentage of net sales for the third quarter and first nine months of fiscal 2022 increased due primarily to improved profitability from the Jennie-O Turkey Store segment, the inclusion of the Planters® snack nuts business, and pricing actions to help mitigate inflationary pressures across all segments. Gross profit as a percentage of net sales also benefited from the reduction of lower margin commodity sales resulting from the Company's new pork supply agreement.

Compared to the prior year, gross profit as a percentage of net sales for the third quarter increased for the Jennie-O Turkey Store, Refrigerated Foods, and International & Other segments while declining for Grocery Products. For the first nine months of fiscal 2022, gross profit as a percentage of net sales increased for the Jennie-O Turkey Store and International & Other segments, was flat for Refrigerated Foods and lower for Grocery Products.

Looking ahead to the fourth quarter of fiscal 2022, the Company expects gross profit as a percentage of net sales to improve sequentially compared to the third quarter of fiscal 2022. The net impact of input cost inflation poses the largest risk to this assumption.

Selling, General and Administrative (SG&A)

	Quarter Ended							Nine Months Ended
in thousands	July 31, 2022			July 25, 2021			% Change	July 31, 2022			July 25, 2021			% Change
SG&A	$	222,147		$	226,284		(1.8)	$	672,777		$	622,630		8.1
Percentage of Net Sales	7.3		%	7.9		%		7.3		%	7.9		%

For the third quarter, SG&A expenses declined as the comparable period last year included one-time acquisition-related costs associated with the Planters® snack nuts business. SG&A expenses for the first nine months increased due to the addition of the Planters® snack nuts business and higher marketing and advertising investments. As a percent of net sales, SG&A expenses declined for the first nine months, driven by record sales and disciplined cost management.

Advertising investments in the third quarter were $37 million compared to $31 million last year. For the first nine months of fiscal 2022, advertising investments increased $28 million, or 29 percent, compared to the prior year. The Company plans to continue to invest in its leading brands.

Equity in Earnings of Affiliates

	Quarter Ended					Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		% Change	July 31, 2022		July 25, 2021		% Change
Equity in Earnings of Affiliates	$	7,138	$	10,420	(31.5)	$	19,951	$	37,722	(47.1)

Equity in earnings of affiliates for the third quarter and first nine months of fiscal 2022 decreased significantly due to lower results for MegaMex. MegaMex results have been negatively impacted by inflationary pressures, including significantly higher costs for avocados.

Effective Tax Rate

	Quarter Ended				Nine Months Ended
	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Effective Tax Rate	24.5	%	13.3	%	21.8	%	18.9	%

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The effective tax rate for the third quarter increased as last year's tax rate reflected stock option exercise benefits and a one-time foreign tax benefit. The effective tax rate for fiscal 2022 is expected to be between 20.5% and 22.5%. For further information, refer to Note K - Income Taxes.

Segment Results

Net sales and segment profit for each of the Company’s reportable segments 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.

	Quarter Ended					Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		% Change	July 31, 2022		July 25, 2021		% Change
Net Sales
Grocery Products	$	869,802	$	698,584	24.5	$	2,598,964	$	1,904,415	36.5
Refrigerated Foods	1,660,257		1,624,641		2.2	4,932,070		4,445,099		11.0
Jennie-O Turkey Store	323,796		350,897		(7.7)	1,115,554		1,035,397		7.7
International & Other	180,559		189,548		(4.7)	528,743		546,528		(3.3)
Total	$	3,034,414	$	2,863,670	6.0	$	9,175,331	$	7,931,438	15.7
Segment Profit
Grocery Products	$	76,478	$	80,791	(5.3)	$	265,263	$	270,963	(2.1)
Refrigerated Foods	177,109		153,216		15.6	517,993		467,740		10.7
Jennie-O Turkey Store	37,433		5,874		537.3	142,969		45,514		214.1
International & Other	25,334		27,915		(9.2)	75,071		84,600		(11.3)
Total Segment Profit	316,354		267,796		18.1	1,001,295		868,817		15.2
Net Unallocated Expense	26,429		63,715		(58.5)	80,799		95,166		(15.1)
Noncontrolling Interest	(89)		157		(156.7)	112		290		(61.4)
Earnings Before Income Taxes	$	289,836	$	204,238	41.9	$	920,608	$	773,940	19.0

Grocery Products

	Quarter Ended					Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		% Change	July 31, 2022		July 25, 2021		% Change
Volume (lbs.)	366,609		319,216		14.8	1,111,288		937,345		18.6
Net Sales	$	869,802	$	698,584	24.5	$	2,598,964	$	1,904,415	36.5
Segment Profit	76,478		80,791		(5.3)	265,263		270,963		(2.1)

Volume and sales for the third quarter increased significantly, led by strong demand across the nut butters, Mexican and simple meals portfolios, and from the inclusion of the Planters® snack nuts business. Organic net sales gains in the third quarter were led by products such as SKIPPY® spreads, WHOLLY® Guacamole, Hormel® chili, Dinty Moore® beef stew and Mary Kitchen® hash, in addition to strategic pricing actions. For the first nine months of fiscal 2022, sales increased primarily due to the inclusion of the Planters® snack nuts business.

Segment profit for the third quarter and first nine months of the year decreased, as the contribution from the Planters® snack nuts business and organic net sales growth was more than offset by inflationary pressures and lower results from MegaMex.

Looking to the fourth quarter, Grocery Products expects improved results compared to the third quarter of fiscal 2022 due to strong demand across the business and from pricing actions effective at the beginning of the fourth quarter. Risks to profitability include higher than anticipated elasticities impacting sales volumes and production challenges on key product lines.

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Refrigerated Foods

	Quarter Ended					Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		% Change	July 31, 2022		July 25, 2021		% Change
Volume (lbs.)	484,271		591,143		(18.1)	1,574,499		1,779,729		(11.5)
Net Sales	$	1,660,257	$	1,624,641	2.2	$	4,932,070	$	4,445,099	11.0
Segment Profit	177,109		153,216		15.6	517,993		467,740		10.7

For the third quarter, net sales increased due to continued strong results from the foodservice businesses, growth from many retail products, strategic pricing actions across the portfolio and the inclusion of the Planters® snack nuts business in the convenience channel. For the first nine months of fiscal 2022, net sales increased due to strong results from the foodservice businesses, strategic pricing actions across the portfolio, and from the inclusion of the Planters® snack nuts business. Consistent with the Company's long-term strategy to better align resources to value-added growth, the overall decline in volume for the third quarter and first nine months of fiscal 2022 was due primarily to lower commodity sales resulting from the Company's new pork supply agreement.

Segment profit growth during the third quarter was driven by strong results from the value-added businesses, more than offsetting higher operational and logistics costs, and lower commodity profitability. For the first nine months of fiscal 2022, segment profit growth was primarily driven by strong results from the foodservice businesses, more than offsetting higher operational and logistics costs.

For the fourth quarter, Refrigerated Foods expects profit to decline compared to the prior year as continued strength in the foodservice businesses and strong demand for its retail products are more than offset by higher raw material, operational and logistics costs.

Jennie-O Turkey Store

	Quarter Ended					Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		% Change	July 31, 2022		July 25, 2021		% Change
Volume (lbs.)	149,931		187,220		(19.9)	540,039		583,413		(7.4)
Net Sales	$	323,796	$	350,897	(7.7)	$	1,115,554	$	1,035,397	7.7
Segment Profit	37,433		5,874		537.3	142,969		45,514		214.1

As anticipated, volume and net sales declined for the third quarter of fiscal 2022 as a result of the supply impacts on the Company's vertically integrated supply chain from highly pathogenic avian influenza (HPAI). For the quarter, foodservice and whole-bird sales increased due to favorable pricing, partially offsetting lower commodity and retail sales. For the first nine months of fiscal 2022, higher foodservice and whole-bird sales due to favorable pricing drove the overall sales increases.

For the third quarter and first nine months of the year, higher commodity prices and foodservice sales drove the substantial improvement in segment profit.

Jennie-O Turkey Store remains on pace to exceed profit expectations for the year, with significant profit growth in the fourth quarter. Sales volumes are projected to decline approximately 30 percent in the fourth quarter due to continued supply gaps in its vertically integrated supply chain and whole bird sales pulled forward into the third quarter. Risks to the outlook include a material impact to production and sales volumes from HPAI in the vertically integrated supply chain.

International & Other

	Quarter Ended					Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		% Change	July 31, 2022		July 25, 2021		% Change
Volume (lbs.)	73,797		83,055		(11.1)	217,853		252,801		(13.8)
Net Sales	$	180,559	$	189,548	(4.7)	$	528,743	$	546,528	(3.3)
Segment Profit	25,334		27,915		(9.2)	75,071		84,600		(11.3)

Volume and sales declined during the third quarter as higher global sales of SPAM® luncheon meat and improved results in Brazil did not overcome an overall decline in export sales and lower sales in China. Export volumes declined as a result of current export logistics challenges and lower commodity sales due to the Company's new pork supply agreement. Sales in China

28

were negatively affected by COVID-related restrictions and temporary plant shutdowns. Volume and sales declined during the first nine months of the year as a result of lower commodity sales due to the Company's new pork supply agreement and ongoing export logistics challenges.

Segment profit for the third quarter and first nine months of fiscal 2022 declined due in large part to lower results from the export business, which has been negatively impacted by logistics challenges and meaningfully higher freight expenses.

The International & Other segment anticipates growth in the fourth quarter driven by branded exports and improved profitability in China. Persistent shipping interruptions pose a risk to export sales and profit growth, while additional COVID-related restrictions in China could pressure in-country results.

Unallocated Income and Expenses

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 unallocated expenses 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 in the segment table for the purpose of reconciling segment results to earnings before income taxes.

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Net Unallocated Expense	$	26,429	$	63,715	$	80,799	$	95,166
Noncontrolling Interest	(89)		157		112		290

For the third quarter and first nine months of fiscal 2022, net unallocated expense decreased due to one-time acquisition costs and accounting adjustments of $40 million and $43 million, respectively, related to the acquisition of the Planters® snack nuts business in the prior year. Higher interest expense and lower investment income net of deferred compensation this year have been the primary drivers of higher expenses to-date.

Non-GAAP Financial Measures

The non-GAAP adjusted financial measure of adjusted diluted earnings per share is presented to provide investors with additional information to facilitate the comparison of past and present operations. Adjusted diluted earnings per share excludes the impact of the acquisition-related expenses and accounting adjustments related to the acquisition of the Planters® snack nuts business. The tax impact was calculated using the effective tax rate for the quarter in which the expenses and accounting adjustments were incurred.

The non-GAAP adjusted financial measures of organic net sales and organic volume are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic net sales and organic volume are defined as net sales and volume, excluding the impact of acquisitions and divestitures. Organic net sales and organic volume exclude the impact of the acquisition of the Planters® snack nuts business (June 2021) in the Grocery Products, Refrigerated Foods and International & Other segments.

The Company believes these non-GAAP financial measures provide useful information to investors because they are the measures used to evaluate performance on a comparable year-over-year basis. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP adjusted measures.

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RECONCILIATION OF NON-GAAP MEASURES
In thousands, except per share amounts
ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP)
	Quarter Ended
	July 31, 2022		July 25, 2021
	Reported GAAP		Reported GAAP		Acquisition Costs and Adjustments		Non-GAAP		Non-GAAP % Change
Net Sales	$	3,034,414	$	2,863,670	$	—	$	2,863,670	6.0
Cost of Products Sold	2,528,364		2,440,322		(12,900)		2,427,422		4.2
Gross Profit	506,049		423,348		12,900		436,248		16.0
Selling, General and Administrative	222,147		226,284		(27,462)		198,822		11.7
Equity in Earnings of Affiliates	7,138		10,420		—		10,420		(31.5)
Operating Income	291,040		207,484		40,362		247,846		17.4
Interest and Investment Income (Expense)	14,411		8,457		—		8,457		70.4
Interest Expense	15,615		11,703		—		11,703		33.4
Earnings Before Income Taxes	289,836		204,238		40,362		244,600		18.5
Provision for Income Taxes	71,010		27,164		5,368		32,532		118.3
Net Earnings	218,826		177,074		34,994		212,068		3.2
Less: Net Earnings Attributable to Noncontrolling Interest	(89)		157		—		157		(156.6)
Net Earnings Attributable to Hormel Foods Corporation	$	218,915	$	176,917	$	34,994	$	211,911	3.3
Diluted Net Earnings Per Share	$	0.40	$	0.32	$	0.06	$	0.39	2.6
	Nine Months Ended
	July 31, 2022		July 25, 2021
	Reported GAAP		Reported GAAP		Acquisition Costs and Adjustments		Non-GAAP		Non-GAAP % Change
Net Sales	$	9,175,331	$	7,931,438	$	—	$	7,931,438	15.7
Cost of Products Sold	7,577,062		6,581,613		(12,900)		6,568,713		15.4
Gross Profit	1,598,269		1,349,825		12,900		1,362,725		17.3
Selling, General and Administrative	672,777		622,630		(30,303)		592,327		13.6
Equity in Earnings of Affiliates	19,951		37,722		—		37,722		(47.1)
Operating Income	945,443		764,917		43,203		808,120		17.0
Interest and Investment Income (Expense)	20,078		36,740		—		36,740		(45.3)
Interest Expense	44,913		27,718		—		27,718		62.0
Earnings Before Income Taxes	920,608		773,940		43,203		817,143		12.7
Provision for Income Taxes	200,393		146,549		5,975		152,524		31.4
Net Earnings	720,215		627,390		37,228		664,618		8.4
Less: Net Earnings Attributable to Noncontrolling Interest	112		290		—		290		(61.4)
Net Earnings Attributable to Hormel Foods Corporation	$	720,103	$	627,101	$	37,228	$	664,329	8.4
Diluted Net Earnings Per Share	$	1.31	$	1.15	$	0.06	$	1.21	8.3

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ORGANIC VOLUME AND NET SALES (NON-GAAP)
	Quarter Ended
	July 31, 2022						July 25, 2021
	Reported GAAP		Acquisitions		Organic (Non-GAAP)		Reported GAAP		Organic % Change
Volume (lbs.)
Grocery Products	366,609		(20,825)		345,785		319,216		8.3
Refrigerated Foods	484,271		(3,946)		480,325		591,143		(18.7)
Jennie-O Turkey Store	149,931		—		149,931		187,220		(19.9)
International & Other	73,797		(561)		73,236		83,055		(11.8)
Total Volume	1,074,609		(25,332)		1,049,277		1,180,634		(11.1)
Net Sales
Grocery Products	$	869,802	$	(78,202)	$	791,600	$	698,584	13.3
Refrigerated Foods	1,660,257		(14,968)		1,645,289		1,624,641		1.3
Jennie-O Turkey Store	323,796		—		323,796		350,897		(7.7)
International & Other	180,559		(1,557)		179,002		189,548		(5.6)
Total Net Sales	$	3,034,414	$	(94,727)	$	2,939,687	$	2,863,670	2.7
	Nine Months Ended
	July 31, 2022						July 25, 2021
	Reported GAAP		Acquisitions		Organic (Non-GAAP)		Reported GAAP		Organic % Change
Volume (lbs.)
Grocery Products	1,111,288		(138,187)		973,101		937,345		3.8
Refrigerated Foods	1,574,499		(22,128)		1,552,372		1,779,729		(12.8)
Jennie-O Turkey Store	540,039		—		540,039		583,413		(7.4)
International & Other	217,853		(3,503)		214,350		252,801		(15.2)
Total Volume	3,443,679		(163,817)		3,279,862		3,553,288		(7.7)
Net Sales
Grocery Products	$	2,598,964	$	(514,709)	$	2,084,256	$	1,904,415	9.4
Refrigerated Foods	4,932,070		(80,980)		4,851,090		4,445,099		9.1
Jennie-O Turkey Store	1,115,554		—		1,115,554		1,035,397		7.7
International & Other	528,743		(9,877)		518,865		546,528		(5.1)
Total Net Sales	$	9,175,331	$	(605,565)	$	8,569,765	$	7,931,438	8.0

Related Party Transactions

There has been no material change in the information regarding Related Party Transactions as disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

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LIQUIDITY AND CAPITAL RESOURCES

When assessing liquidity and capital resources, the Company evaluates cash and cash equivalents, short-term and long-term investments, income from operations, and borrowing capacity.

Cash Flow Highlights

	Nine Months Ended
in millions	July 31, 2022		July 25, 2021
Cash and Cash Equivalents	$	850	$	291
Cash Provided by (Used in) Operating Activities	763		438
Cash Provided by (Used in) Investing Activities	(172)		(3,530)
Cash Provided by (Used in) Financing Activities	(344)		1,664

Cash and cash equivalents increased $237 million in the nine months ended July 31, 2022 as cash from operating activities was sufficient to cover dividend payments and capital expenditures. The use of cash to fund the acquisition of the Planters® snack nuts business was the primary driver of the decline in cash and cash equivalents in the prior year. Additional details related to significant drivers of cash flows are provided below.

Cash Provided by (Used in) Operating Activities

•Cash flows from operating activities benefited from earnings, while changes in operating assets and liabilities during the nine months ended July 31, 2022 were overall unfavorable.

–Inventory increased $311 million compared to $202 million in the prior year. The higher inventory value in fiscal 2022 was primarily due to a recovery in inventory volumes and sustained higher raw material costs. The increase in inventory levels during fiscal 2021 was the result of inflation in raw materials and supplies along with the additional inventory activity for the Planters® snack nuts business since its acquisition.

–Accounts receivable declined $97 million in the nine months ended July 31, 2022 as a result of the timing of sales and collections. In comparison, accounts receivable rose $192 million in the nine months ended July 25, 2021 with the additional accounts receivable activity for the Planters® snack nuts business since its acquisition.

–Accounts payable and accrued expenses decreased $84 million and $30 million in the nine months ended July 31, 2022 and July 25, 2021, respectively, primarily due to the timing of invoice payments.

Cash Provided by (Used in) Investing Activities

•Capital expenditures were $189 million and $139 million in the nine months ended July 31, 2022 and July 25, 2021, respectively. The Company's target for capital expenditures for fiscal 2022 is $310 million. The largest spend in both years was related to capacity expansion in Omaha, Nebraska. Additional projects include a new production line for the SPAM® family of products in Dubuque, Iowa in fiscal 2022 and Project Orion in fiscal 2021. For the remainder of the fiscal year, the Company will prioritize projects which increase value added production capacity, improve infrastructure, drive cost savings and leverage automation.

•In the nine months ended July 25, 2021, the Company acquired the Planters® snack nuts business for $3.4 billion. See Note B - Acquisitions and Divestitures for more information.

Cash Provided by (Used in) Financing Activities

•Cash dividends paid to the Company’s shareholders continue to be an ongoing financing activity for the Company with payments totaling $416 million in the nine months ended July 31, 2022 compared to $390 million in the comparable period of fiscal 2021. For fiscal 2022, the annual dividend rate was increased 6 percent to $1.04 per share, representing the 56th consecutive annual dividend increase. The Company has paid dividends for 376 consecutive quarters.

•Proceeds from exercise of stock options was $78 million in the nine months ended July 31, 2022 compared to $44 million in the comparable period of fiscal 2021. The increase in proceeds was caused by the number of options exercised with 3.7 million shares issued during fiscal 2022 compared to 2.8 million shares during fiscal 2021.

•The Company issued unsecured senior notes in an aggregate principal amount of $2.3 billion to fund the acquisition of the Planters® snack nuts business in the nine months ended July 25, 2021. See Note J - Long-term Debt and Other Borrowing Arrangements for more information.

•The Company repaid $250.0 million of its senior unsecured notes upon maturity in April 2021.

Sources and Uses of Cash

The Company believes its balanced business model, with diversification across raw material inputs, channels, and categories, provides stability in ever changing economic environments. The Company applies a waterfall approach to capital resource allocation, which focuses first on required uses of cash such as capital expenditures to maintain facilities, dividend returns to

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investors, and mandatory debt repayments. Next, the Company looks to strategic items in support of growth initiatives such as acquisitions and innovation investments, which is followed by opportunistic uses including incremental debt repayment and share repurchases. The Company believes its anticipated income from operations, cash on hand, and borrowing capacity under the current credit facility will be adequate to meet all short-term and long-term commitments. The Company's ability to leverage its balance sheet through the issuance of debt provides the flexibility to take advantage of strategic opportunities which may require additional funding.

There have been no material changes to the information regarding the Company’s future contractual financial obligations previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

The Company is required by certain covenants in its debt agreements to maintain specified levels of financial ratios and financial position. As of July 31, 2022, the Company was in compliance with all of these debt covenants and expects to maintain this compliance.

Trademarks

References to the Company’s brands or products in italics within this report represent valuable trademarks owned or licensed by Hormel Foods, LLC or other subsidiaries of Hormel Foods Corporation.

CRITICAL ACCOUNTING ESTIMATES

This discussion and analysis of financial condition and results of operations is based upon the Company's consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires the Company to make estimates, judgments, and assumptions that can have a meaningful effect on the reporting of consolidated financial statements. The significant accounting policies used in preparing these Consolidated Financial Statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the Consolidated Financial Statements in the Form 10-K with the exception of new requirements adopted in the first quarter of fiscal 2022.

Critical accounting estimates are defined as those reflective of significant judgments, estimates, and uncertainties, which may result in materially different results under different assumptions and conditions. There have been no material changes in the Company’s Critical Accounting Estimates as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

FORWARD-LOOKING STATEMENTS

This report contains “forward-looking” information within the meaning of the federal securities laws. The “forward-looking” information may include statements concerning the Company’s outlook for the future as well as other statements of beliefs, future plans, strategies, or anticipated events and similar expressions concerning matters that are not historical facts.

The Private Securities Litigation Reform Act of 1995 (the Reform Act) provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information. The Company is filing this cautionary statement in connection with the Reform Act. When used in this Quarterly Report on Form 10-Q, the Company’s Annual Report to Stockholders, other filings by the Company with the Securities and Exchange Commission, the Company’s press releases, and oral statements made by the Company’s representatives, the words or phrases “should result,” “believe,” “intend,” “plan,” “are expected to,” “targeted,” “will continue,” “will approximate,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify forward-looking statements within the meaning of the Reform Act. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those anticipated or projected.

In connection with the “safe harbor” provisions of the Reform Act, the Company is identifying risk factors that could affect financial performance and cause the Company’s actual results to differ materially from opinions or statements expressed with respect to future periods. The discussions of risk factors in the Company's most recent Annual Report on Form 10-K and in Part II, Item 1A of this Quarterly Report on Form 10-Q contain certain cautionary statements regarding the Company’s business, which should be considered by investors and others. Such risk factors should be considered in conjunction with any discussions of operations or results by the Company or its representatives, including any forward-looking discussion, as well as comments contained in press releases, presentations to securities analysts or investors, or other communications by the Company.

In making these statements, the Company is not undertaking, and specifically declines to undertake, any obligation to address or update each or any factor in future filings or communications regarding the Company’s business or results, and is not undertaking to address how any of these factors may have caused changes to discussions or information contained in previous filings or communications. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company wishes to caution investors and others that other factors may in the future prove to be important in affecting the Company’s business or results of operations.

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The Company cautions readers not to place undue reliance on forward-looking statements, which represent current views as of the date made. Forward-looking statements are inherently at risk to changes in the national and worldwide economic environment, which could include, among other things, risks related to the deterioration of economic conditions; the COVID-19 pandemic; risks associated with acquisitions and divestitures; potential disruption of operations including at co-manufacturers, suppliers, logistics providers, customers, or other third-party service providers; risk of loss of a material contract; the Company’s inability to protect information technology systems against, or effectively respond to, cyber attacks or security breaches; deterioration of labor relations, labor availability or increases to labor costs; general risks of the food industry, including food contamination; outbreaks of disease among livestock and poultry flocks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company’s products; risks of litigation; potential sanctions and compliance costs arising from government regulation; compliance with stringent environmental regulation and potential environmental litigation; and risks arising from the Company’s foreign operations.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to various forms of market risk as a part of its ongoing business practices. The Company utilizes derivative instruments to mitigate earnings fluctuations due to market volatility.

Commodity Price Risk: The Company is subject to commodity price risk primarily through grain and live hog markets. To reduce these exposures and offset the fluctuations caused by changes in market conditions, the Company employs hedging programs. These programs utilize futures, swaps, and options and are accounted for as cash flow hedges. The fair value of the Company’s cash flow commodity contracts as of July 31, 2022, was $26.9 million compared to $25.2 million as of October 31, 2021. The Company measures its market risk exposure on its cash flow commodity contracts using a sensitivity analysis, which considers a hypothetical 10 percent change in the market prices. A 10 percent decrease in the market price would have negatively impacted the fair value of the Company's cash flow commodity contracts as of July 31, 2022, by $29.3 million, which in turn would lower the Company's future cost on purchased commodities by a similar amount.

Interest Rate Risk: The Company is subject to interest rate risk primarily from changes in fair value of long-term fixed rate debt. As of July 31, 2022, the Company’s long-term debt had a fair value of $3.0 billion compared to $3.3 billion as of October 31, 2021. The Company measures its market risk exposure of long-term fixed rate debt using a sensitivity analysis, which considers a 10 percent change in interest rates. A 10 percent decrease in interest rates would have positively impacted the fair value of the Company’s long-term debt as of July 31, 2022, by $80.1 million. A 10 percent increase would have negatively impacted the long-term debt by $75.5 million.

To reduce the risk of changes in fair value of long-term debt, the Company has entered into an interest rate swap on a portion of the debt that receives a fixed rate and pays a floating rate. The notional amount of the Company's interest rate swap is $450.0 million. The Company measures its market risk exposure on interest rate contracts using sensitivity analysis, which considers a hypothetical change of 25 basis points in the underlying benchmark interest rate. An increase of 25 basis points would have negatively impacted the fair value of the Company's interest rate swap by $1.8 million, while a decrease of 25 basis points would have positively impacted the value by a similar amount.

Foreign Currency Exchange Rate Risk: The fair values of certain Company assets are subject to fluctuations in foreign currency exchange rates. The Company's net asset position in foreign currencies as of July 31, 2022 was $667.1 million, compared to $657.2 million as of October 31, 2021, with most of the exposure existing in Chinese yuan and Brazilian real. The Company currently does not use market risk sensitive instruments to manage this risk.

Investment Risk: The Company has corporate-owned life insurance policies classified as trading securities as part of a rabbi trust to fund certain supplemental executive retirement plans and deferred income plans. As of July 31, 2022, the balance of these securities totaled $191.0 million compared to $203.0 million as of October 31, 2021. The rabbi trust is invested primarily in fixed income funds. The Company is subject to market risk due to fluctuations in the value of the remaining investments as unrealized gains and losses associated with these securities are included in the Company’s net earnings on a mark-to-market basis. A 10 percent decline in the value of the investments not held in fixed income funds would have a negative impact to the Company’s pretax earnings of approximately $8.1 million, while a 10 percent increase in value would have a positive impact of the same amount.

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Item 4. CONTROLS AND PROCEDURES

(a)    Disclosure Controls and Procedures.

As of the end of the period covered by this report (the Evaluation Date), the Company carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act)). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that information the Company is required to disclose in reports it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

(b)    Internal Controls.

There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the third quarter of fiscal 2022 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The Company is a party to various legal proceedings related to the ongoing operation of its business, including claims both by and against the Company. At any time, such proceedings typically involve claims related to product liability, labeling, contracts, antitrust regulations, intellectual property, competition laws, employment practices, or other actions brought by employees, customers, consumers, competitors or suppliers. The Company establishes accruals for its potential exposure, as appropriate, for claims against the Company when losses become probable and reasonably estimable. However, future developments or settlements are uncertain and may require the Company to change such accruals as proceedings progress. Resolution of any currently known matters, either individually or in the aggregate, is not expected to have a material effect on the Company’s financial condition, results of operations, or liquidity.

The Company is a defendant in three sets of antitrust lawsuits broadly targeting the pork and turkey industries. None of these cases involve allegations of bid rigging or other criminal conduct. The Company has not established reserves as it does not believe it will have liability in any of these cases.

Item 1A. RISK FACTORS

The Company's business, operations, and financial condition are subject to various risks and uncertainties. There have been no material changes to the risk factors previously disclosed in Part I, Item 1A. Risk Factors in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2021, except as follows:

BUSINESS AND OPERATIONAL RISKS

Deterioration of economic conditions could harm the Company’s business. The Company's business may be adversely affected by changes in national or global economic conditions, including inflation, interest rates, tax rates, availability of capital, energy availability and costs (including fuel surcharges), political developments, civil unrest, and the effects of governmental initiatives to manage economic conditions. Decreases in consumer spending rates and shifts in consumer product preferences could also negatively impact the Company.

Volatility in financial markets and the deterioration of national and global economic conditions could impact the Company’s operations as follows:

▪The financial stability of our customers and suppliers may be compromised, which could result in additional bad debts for the Company or non-performance by suppliers.

▪The value of our investments in debt and equity securities may decline, including most significantly the Company’s trading securities held as part of a rabbi trust to fund supplemental executive retirement plans and deferred income plans, and the Company’s assets held in pension plans.

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▪Future volatility or disruption in the capital and credit markets could impair the Company's liquidity or increase costs of borrowing.

▪The Company may be required to redirect cash flow from operations or explore alternative strategies, such as disposing of assets, to fulfill the payment of principal and interest on its indebtedness.

Although the Company has no operations in Russia or Ukraine, inflated fuel costs and supply chain shortages and delays have been experienced due to the impact of the conflict on the global economy. Further escalation related to the military conflict, including increased trade barriers or restrictions on global trade, could result in, among other things, additional supply chain disruptions, rising prices for oil and other commodities, volatility in capital markets and foreign exchange rates, rising interest rates or heightened cybersecurity risks, any of which may adversely affect the Company's business. In addition, the effects of the ongoing conflict could heighten many of the Company's other risk factors described in Part I, Item 1A, "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

The Company utilizes hedging programs to manage its exposure to various market risks, such as commodity prices and interest rates, which qualify for hedge accounting for financial reporting purposes. Volatile fluctuations in market conditions could cause these instruments to become ineffective, which could require any gains or losses associated with these instruments to be reported in the Company’s earnings each period. These instruments may limit the Company’s ability to benefit from market gains if commodity prices and/or interest rates become more favorable than those secured under the Company’s hedging programs.

The Company's goodwill and indefinite lived intangible assets are initially recorded at fair value and are not amortized, but are reviewed for impairment annually or more frequently if impairment indicators arise. Impairment testing requires judgement around estimates and assumptions and is impacted by factors such as revenue growth rates, operating margins, tax rates, royalty rates, and discount rates. An unfavorable change in these factors may lead to the impairment of goodwill and/or intangible assets.

Additionally, if another highly pathogenic human disease outbreak developed in the United States, it may negatively impact the national economy, demand for Company products, and/or the Company’s workforce availability, and the Company’s financial results could suffer. The Company has developed contingency plans to address infectious disease scenarios and the potential impact on its operations, and will continue to update these plans as necessary. There can be no assurance given, however, these plans will be effective in eliminating the negative effects of any such diseases on the Company’s operating results.

Deterioration of labor relations, labor availability or increases in labor costs could harm the Company’s business. As of July 31, 2022, the Company employed more than 20,000 people worldwide, of which approximately 20 percent were represented by labor unions, principally the United Food and Commercial Workers Union. A significant increase in labor costs or a deterioration of labor relations at any of the Company’s facilities or co-manufacturing facilities resulting in work slowdowns or stoppages could harm the Company’s financial results. Labor and skilled labor availability challenges could continue to have an adverse effect on the Company's business. All union contracts are currently effective with none set to expire during the remainder of fiscal 2022.

The Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union represents approximately 50 workers at the Company's Fresno, California, manufacturing facility who were hired as a result of the Company's acquisition of the Corn Nuts® brand. Discussions for a first labor contract have been on-going since the acquisition. Subsequent to the end of the third quarter, the union called a strike resulting in a work stoppage at the facility. To date, the Company has continued to operate the facility at reduced capacity during the strike and will continue to work toward a labor contract and resolution of the strike.

INDUSTRY RISKS

Outbreaks of disease among livestock and poultry flocks could harm the Company’s revenues and operating margins.

The Company is subject to risks associated with the outbreak of disease in pork and beef livestock, and poultry flocks, including African swine fever (ASF), Bovine Spongiform Encephalopathy (BSE), pneumo-virus, Porcine Circovirus 2 (PCV2), Porcine Reproduction & Respiratory Syndrome (PRRS), Foot-and-Mouth Disease (FMD), Porcine Epidemic Diarrhea Virus (PEDv), and Highly Pathogenic Avian Influenza (HPAI). The outbreak of such diseases could adversely affect the Company’s supply of raw materials, increase the cost of production, reduce utilization of the Company’s harvest facilities, and reduce operating margins. Additionally, the outbreak of disease may hinder the Company’s ability to market and sell products both domestically and internationally.

In recent years, the outbreak of ASF has impacted hog herds in China, Asia, Europe, and the Caribbean. If an outbreak of ASF were to occur in the United States, the Company's supply of hogs and pork could be materially impacted.

HPAI was detected within the United States in 2022 and was confirmed within the Company's Jennie-O Turkey Store supply chain. The impact of HPAI has reduced and will continue to reduce production volume in the Company's turkey facilities at least through the first quarter of fiscal 2023. The Company is continuing to monitor the situation and will take the appropriate actions to protect the health of the turkeys across the supply chain.

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The Company has developed business continuity plans for various disease scenarios and will continue to update these plans as necessary. There can be no assurance given, however, that these plans will be effective in eliminating the negative effects of any such diseases on the Company’s operating results.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no issuer purchases of equity securities in the quarter ended July 31, 2022. The maximum number of shares that may yet be purchased under the plans or programs as of July 31, 2022 is 3,987,494. On January 29, 2013, the Company's Board of Directors authorized the repurchase of 10,000,000 shares of its common stock with no expiration date. On January 26, 2016, the Board of Directors approved a two-for-one split of the Company’s common stock to be effective January 27, 2016. As part of the stock split resolution, the number of shares remaining to be repurchased was adjusted proportionately.

Item 6. EXHIBITS

31.1	Certification Required Under Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification Required Under Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification Pursuant to 18 U.S.C Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended July 31, 2022, formatted in Inline XBRL: (i) Consolidated Statements of Operations, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Condensed Statements of Financial Position, (iv) Consolidated Statements of Changes in Shareholders' Investment, (v) Consolidated Condensed Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
104	The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended July 31, 2022, formatted in Inline XBRL (included as Exhibit 101).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		HORMEL FOODS CORPORATION
		(Registrant)
Date: September 1, 2022	By	/s/ JACINTH C. SMILEY
		JACINTH C. SMILEY
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
Date: September 1, 2022	By	/s/ PAUL R. KUEHNEMAN
		PAUL R. KUEHNEMAN
		Vice President and Controller
		(Principal Accounting Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James P. Snee, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Hormel Foods Corporation for the period ended July 31, 2022;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: September 1, 2022	Signed:	/s/ JAMES P. SNEE
		JAMES P. SNEE
		Chairman of the Board, President and Chief Executive Officer

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EX-31.2

EXHIBIT 31.2

CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jacinth C. Smiley, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Hormel Foods Corporation for the period ended July 31, 2022;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: September 1, 2022	Signed:	/s/ JACINTH C. SMILEY
		JACINTH C. SMILEY
		Executive Vice President and Chief Financial Officer

1

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Hormel Foods Corporation (the “Company”) on Form 10-Q for the period ended July 31, 2022, as filed with the Securities and Exchange Commission (the “Report”), the undersigned hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended; and

(2)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: September 1, 2022	/s/ JAMES P. SNEE
	JAMES P. SNEE
	Chairman of the Board, President and Chief Executive Officer
Dated: September 1, 2022	/s/ JACINTH C. SMILEY
	JACINTH C. SMILEY
	Executive Vice President and Chief Financial Officer

1

XML

COVER - shares	9 Months Ended
	Jul. 31, 2022	Aug. 28, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2022
Document Transition Report	false
Entity File Number	1-2402
Entity Registrant Name	HORMEL FOODS CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-0319970
Entity Address, Address Line One	1 Hormel Place
Entity Address, City or Town	Austin
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55912
City Area Code	507
Local Phone Number	437-5611
Title of 12(b) Security	Common Stock
Trading Symbol	HRL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000048465
Amendment Flag	false
Current Fiscal Year End Date	--10-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Common Stock $.01465 par value
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		546,197,604
Common Stock Non-Voting $.01 par value
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		0

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Income Statement [Abstract]
Net Sales	$ 3,034,414	$ 2,863,670	$ 9,175,331	$ 7,931,438
Cost of Products Sold	2,528,364	2,440,322	7,577,062	6,581,613
Gross Profit	506,049	423,348	1,598,269	1,349,825
Selling, General and Administrative	222,147	226,284	672,777	622,630
Equity in Earnings of Affiliates	7,138	10,420	19,951	37,722
Operating Income	291,040	207,484	945,443	764,917
Interest and Investment Income	14,411	8,457	20,078	36,740
Interest Expense	15,615	11,703	44,913	27,718
Earnings Before Income Taxes	289,836	204,238	920,608	773,940
Provision for Income Taxes	71,010	27,164	200,393	146,549
Net Earnings	218,826	177,074	720,215	627,390
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest	(89)	157	112	290
Net Earnings Attributable to Hormel Foods Corporation	$ 218,915	$ 176,917	$ 720,103	$ 627,101
Net Earnings Per Share
Basic (in dollars per share)	$ 0.40	$ 0.33	$ 1.32	$ 1.16
Diluted (in dollars per share)	$ 0.40	$ 0.32	$ 1.31	$ 1.15
Weighted-average Shares Outstanding
Basic (in shares)	546,077	541,746	544,486	540,618
Diluted (in shares)	550,167	548,072	549,377	547,684

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Statement of Comprehensive Income [Abstract]
Net Earnings	$ 218,826	$ 177,074	$ 720,215	$ 627,390
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	(29,228)	12,626	(14,233)	23,489
Pension and Other Benefits	2,505	4,199	7,643	12,598
Deferred Hedging	(35,138)	(8,612)	967	42,016
Total Other Comprehensive Income (Loss)	(61,861)	8,213	(5,623)	78,103
Comprehensive Income	156,965	185,287	714,592	705,493
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest	(540)	270	(206)	671
Comprehensive Income Attributable to Hormel Foods Corporation	$ 157,505	$ 185,017	$ 714,798	$ 704,822

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CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Current Assets
Cash and Cash Equivalents	$ 850,344	$ 613,530
Short-term Marketable Securities	18,314	21,162
Accounts Receivable (Net of Allowance for Doubtful Accounts of $3,500 at July 31, 2022, and $4,033 at October 31, 2021)	802,850	895,719
Inventories	1,679,179	1,369,198
Taxes Receivable	7,733	8,293
Prepaid Expenses and Other Current Assets	45,063	39,914
Total Current Assets	3,403,484	2,947,816
Goodwill	4,929,337	4,929,102
Other Intangibles	1,808,235	1,822,273
Pension Assets	311,157	289,096
Investments In and Receivables from Affiliates	277,727	299,019
Other Assets	292,412	299,907
Property, Plant and Equipment
Land	74,274	72,133
Buildings	1,392,584	1,332,881
Equipment	2,554,146	2,415,063
Construction in Progress	238,690	316,455
Less: Allowance for Depreciation	(2,141,628)	(2,027,414)
Net Property, Plant and Equipment	2,118,067	2,109,117
Total Assets	13,140,418	12,696,329
Current Liabilities
Accounts Payable and Accrued Expenses	799,202	844,502
Accrued Marketing Expenses	131,495	114,746
Employee Related Expenses	248,551	269,327
Interest and Dividends Payable	167,534	154,803
Taxes Payable	64,311	23,520
Current Maturities of Long-term Debt	8,807	8,756
Total Current Liabilities	1,419,899	1,415,654
Long-term Debt Less Current Maturities	3,294,287	3,315,147
Pension and Post-retirement Benefits	551,458	546,362
Other Long-term Liabilities	153,773	162,623
Deferred Income Taxes	354,053	278,183
Shareholders' Investment
Preferred Stock	0	0
Additional Paid-in Capital	459,272	360,336
Accumulated Other Comprehensive Loss	(282,574)	(277,269)
Retained Earnings	7,176,977	6,881,870
Hormel Foods Corporation Shareholders' Investment	7,361,676	6,972,883
Noncontrolling Interest	5,272	5,478
Total Shareholders' Investment	7,366,948	6,978,360
Total Liabilities and Shareholders' Investment	13,140,418	12,696,329
Common Stock Non-Voting
Shareholders' Investment
Common Stock	0	0
Common Stock
Shareholders' Investment
Common Stock	$ 8,001	$ 7,946

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CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION (PARENTHETICAL) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Accounts Receivable, Allowance for Doubtful Accounts	$ 3,500	$ 4,033
Preferred Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Authorized Shares (in shares)	160,000,000	160,000,000
Preferred Stock, Issued Shares (in shares)	0	0
Common Stock Non-Voting
Common Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Authorized Shares (in shares)	400,000,000	400,000,000
Common Stock, Issued Shares (in shares)	0	0
Common Stock
Common Stock, Par Value (in dollars per share)	$ 0.01465	$ 0.01465
Common Stock, Authorized Shares (in shares)	1,600,000,000	1,600,000,000
Common Stock, Issued Shares (in shares)	546,155,583	542,412,403

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' INVESTMENT - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Increase (Decrease) in Shareholders' Investment
Beginning balance	$ 7,345,214	$ 6,705,851	$ 6,978,360	$ 6,430,326
Net Earnings	218,826	177,074	720,215	627,390
Other Comprehensive Income (Loss)	(61,861)	8,213	(5,623)	78,103
Purchases of Common Stock				(9,653)
Stock-based Compensation Expense	4,566	4,479	20,933	20,313
Exercise of Stock Options/Restricted Shares	2,872	30,666	78,058	44,457
Shares Retired				0
Declared Cash Dividends	(142,668)	(132,551)	(424,996)	(397,204)
Ending balance	$ 7,366,948	$ 6,793,732	$ 7,366,948	$ 6,793,732
Common Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	546,053	540,411	542,412	539,887
Beginning balance	$ 8,000	$ 7,917	$ 7,946	$ 7,909
Stock-based Compensation Expense (in shares)			37	38
Stock-based Compensation Expense			$ 1	$ 1
Exercise of Stock Options/Restricted Shares (in shares)	103	2,125	3,706	2,828
Exercise of Stock Options/Restricted Shares	$ 2	$ 31	$ 54	$ 41
Shares Retired (in shares)				217
Shares Retired				$ (3)
Ending balance (in shares)	546,156	542,536	546,156	542,536
Ending balance	$ 8,001	$ 7,948	$ 8,001	$ 7,948
Treasury Stock
Increase (Decrease) in Shareholders' Investment
Beginning balance (in shares)	0	0	0	0
Beginning balance	$ 0	$ 0	$ 0	$ 0
Purchases of Common Stock (in shares)				(217)
Purchases of Common Stock				$ (9,653)
Shares Retired (in shares)				217
Shares Retired				$ 9,653
Ending balance (in shares)	0	0	0	0
Ending balance	$ 0	$ 0	$ 0	$ 0
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Beginning balance	451,836	319,048	360,336	289,554
Stock-based Compensation Expense	4,566	4,479	20,933	20,313
Exercise of Stock Options/Restricted Shares	2,870	30,635	78,003	44,416
Shares Retired				(120)
Ending balance	459,272	354,162	459,272	354,162
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Beginning balance	7,100,730	6,699,336	6,881,870	6,523,335
Net Earnings	218,915	176,917	720,103	627,101
Shares Retired				(9,530)
Declared Cash Dividends	(142,668)	(132,551)	(424,996)	(397,204)
Ending balance	7,176,977	6,743,701	7,176,977	6,743,701
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Shareholders' Investment
Beginning balance	(221,164)	(325,629)	(277,269)	(395,250)
Other Comprehensive Income (Loss)	(61,410)	8,100	(5,305)	77,722
Ending balance	(282,574)	(317,528)	(282,574)	(317,528)
Non- controlling Interest
Increase (Decrease) in Shareholders' Investment
Beginning balance	5,812	5,178	5,478	4,778
Net Earnings	(89)	157	112	290
Other Comprehensive Income (Loss)	(451)	113	(318)	381
Ending balance	$ 5,272	$ 5,448	$ 5,272	$ 5,448

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' INVESTMENT (PARENTHETICAL) - $ / shares	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Statement of Stockholders' Equity [Abstract]
Declared Cash Dividends (in dollars per share)	$ 0.2600	$ 0.2450	$ 0.7800	$ 0.7350

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021
Operating Activities
Net Earnings	$ 720,215	$ 627,390
Adjustments to Reconcile to Net Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization	191,568	162,490
Equity in Earnings of Affiliates	(19,951)	(37,722)
Distributions Received from Equity Method Investees	30,539	33,749
Provision for Deferred Income Taxes	71,427	2,375
Loss (Gain) on Property/Equipment Sales and Plant Facilities	5,098	1,596
Non-cash Investment Activities	13,610	(21,802)
Stock-based Compensation Expense	20,933	20,313
Changes in Operating Assets and Liabilities, Net of Acquisitions:
Decrease (Increase) in Accounts Receivable	96,674	(191,783)
Decrease (Increase) in Inventories	(311,312)	(202,217)
Decrease (Increase) in Prepaid Expenses and Other Current Assets	(3,666)	47,553
Increase (Decrease) in Pension and Post-retirement Benefits	(6,906)	3,629
Increase (Decrease) in Accounts Payable and Accrued Expenses	(84,384)	(30,187)
Increase (Decrease) in Net Income Taxes Payable	39,312	22,403
Net Cash Provided by (Used in) Operating Activities	763,157	437,786
Investing Activities
Net (Purchase) Sale of Securities	1,296
Net (Purchase) Sale of Securities		(1,304)
Acquisitions of Businesses/Intangibles	0	(3,396,246)
Purchases of Property and Equipment	(189,184)	(139,361)
Proceeds from Sales of Property and Equipment	1,044	1,910
Decrease (Increase) in Investments, Equity in Affiliates, and Other Assets	8,275	668
Proceeds from Company-owned Life Insurance	6,742	4,015
Net Cash Provided by (Used in) Investing Activities	(171,827)	(3,530,320)
Financing Activities
Proceeds from Long-term Debt	0	2,276,292
Repayments of Long-term Debt and Finance Leases	(6,498)	(256,535)
Dividends Paid on Common Stock	(415,923)	(390,206)
Share Repurchase	0	(9,653)
Proceeds from Exercise of Stock Options	77,958	44,007
Net Cash Provided by (Used in) Financing Activities	(344,463)	1,663,905
Effect of Exchange Rate Changes on Cash	(10,054)	5,683
Increase (Decrease) in Cash and Cash Equivalents	236,814	(1,422,946)
Cash and Cash Equivalents at Beginning of Year	613,530	1,714,309
Cash and Cash Equivalents at End of Quarter	$ 850,344	$ 291,363

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Jul. 31, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation: The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include certain information and footnotes required by U.S. generally accepted accounting principles (GAAP) for comprehensive financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the interim period are not necessarily indicative of the results that may be expected for the full year.

These statements should be reviewed in conjunction with the consolidated financial statements and associated notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021. The significant accounting policies used in preparing these interim consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the consolidated financial statements in the Form 10-K with the exception of new requirements adopted in the first quarter of fiscal 2022. The Company has determined there have been no material changes in the Company’s significant accounting policies, including estimates and assumptions, as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

Fiscal Year: The Company’s fiscal year ends on the last Sunday in October. Fiscal 2022 consists of 52 weeks. Fiscal 2021 consisted of 53 weeks with the additional week occurring in the fourth quarter.

Rounding: Certain amounts in the Consolidated Financial Statements and associated notes may not foot due to rounding. All percentages have been calculated using unrounded amounts.

Reclassifications: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

Accounting Changes and Recent Accounting Pronouncements:

New Accounting Pronouncements Adopted in Current Fiscal Year 

In December 2019, the Financial Accounting Standards Board (FASB) issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740). The updated guidance simplifies the accounting for income taxes by removing certain exceptions in Topic 740 and clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted the provisions of this new accounting standard at the beginning of fiscal 2022 and adoption did not have a material impact on its consolidated financial statements.

New Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The guidance provides optional expedients and exceptions to account for contracts, hedging relationships, and other transactions that reference London Interbank Referenced Rate (LIBOR) or another reference rate expected to be discontinued. The optional guidance can be applied from March 12, 2020 through December 31, 2022. The Company currently holds an interest rate swap which uses LIBOR as the benchmark interest rate. When LIBOR ceases to be published in June 2023, the benchmark interest rate of the swap will change to Secured Overnight Financing Rate (SOFR) plus a spread adjustment. The Company does not expect adoption of ASU 2020-04 to have a material impact on its consolidated financial statements.

Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not relevant to the Company.

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ACQUISITIONS AND DIVESTITURES

9 Months Ended

Jul. 31, 2022

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

Acquisitions: On June 7, 2021, the Company acquired the Planters® snack nuts business from The Kraft Heinz Company. The acquisition includes the Planters®, NUT-rition®, and Corn Nuts® brands. The final purchase price, including working capital adjustments, was $3.4 billion. The transaction was funded with the Company’s cash on hand and from the issuance of long-term debt.

Planters® is an iconic snack brand and this acquisition significantly expands the Company's presence, and should broaden the scope for future acquisitions, in the growing snacking space. Operating results for this acquisition have been included in the Company's Consolidated Statements of Operations from the date of acquisition and are reflected in the Grocery Products, Refrigerated Foods, and International & Other segments. The acquisition contributed $243.1 million and $753.9 million of net sales during the third quarter and nine months of fiscal 2022, respectively. The acquisition contributed $141.3 million of net sales during the comparable periods of fiscal 2021. As the acquisition has been integrated within the Company's existing operations, post-acquisition net earnings are not discernible.

Acquisition-related costs were $27.5 million and $30.3 million for the third quarter and nine months ended July 25, 2021, respectively, which are reflected in the Consolidated Statements of Operations as Selling, General and Administrative. Additional one-time adjustments related to the revaluation of acquired inventory of $12.9 million were recognized in the Consolidated Statements of Operations as Cost of Products Sold for the third quarter and nine months ended July 25, 2021. The combined impact of these one-time acquisition costs and accounting adjustments were $40.4 million and $43.2 million for the third quarter and nine months ended July 25, 2021, respectively.

The acquisition was accounted for as a business combination using the acquisition method. The Company determined the acquisition date fair values of the assets acquired using independent appraisals. The Company completed purchase accounting allocations in the fourth quarter of fiscal 2021.

The following unaudited pro forma financial information presents the combined results of operations as if the acquisition of the Planters® snack nuts business had occurred on October 27, 2019. These unaudited pro forma results do not necessarily reflect the actual results of operations that would have been achieved had the acquisition occurred on that date, nor are they necessarily indicative of future results of operations.

	Quarter Ended		Nine Months Ended
in thousands	July 25, 2021		July 25, 2021
Pro Forma Net Sales	$	2,981,630	$	8,606,935
Pro Forma Net Earnings Attributable to Hormel Foods Corporation	215,983		704,143

The pro forma results include charges for depreciation and amortization of acquired assets and interest expense on debt issued to finance the acquisition, as well as the related income taxes. The pro forma results for the third quarter and nine months ended July 25, 2021 include an adjustment to add back the transaction costs incurred and revaluation of inventory acquired in those periods, along with the related income tax effects.

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GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Jul. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Goodwill: The change in the carrying amounts of goodwill for the nine months ended July 31, 2022 are:

in thousands	Grocery Products		Refrigerated Foods		Jennie-O Turkey Store		International & Other		Total
Balance at October 31, 2021	$	2,398,354	$	2,094,421	$	176,628	$	259,699	$	4,929,102
Foreign Currency Translation	—		—		—		235		235
Balance at July 31, 2022	$	2,398,354	$	2,094,421	$	176,628	$	259,935	$	4,929,337

Intangible Assets: The carrying amounts for indefinite-lived intangible assets are:

in thousands	July 31, 2022		October 31, 2021
Brands/Tradenames/Trademarks	$	1,665,190	$	1,665,190
Other Intangibles	184		184
Foreign Currency Translation	(6,318)		(6,646)
Total	$	1,659,056	$	1,658,728

The gross carrying amount and accumulated amortization for definite-lived intangible assets are:

	July 31, 2022				October 31, 2021
in thousands	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer Lists/Relationships	$	168,239	$	(66,558)	$	168,239	$	(56,882)
Other Intangibles	59,241		(10,544)		60,241		(8,356)
Tradenames/Trademarks	10,536		(7,308)		10,536		(5,700)
Foreign Currency Translation	—		(4,426)		—		(4,534)
Total	$	238,016	$	(88,836)	$	239,016	$	(75,471)

Amortization expense was $4.8 million and $14.5 million for the quarter and nine months ended July 31, 2022, respectively, compared to $4.4 million and $12.3 million for the quarter and nine months ended July 25, 2021.

Estimated annual amortization expense for the five fiscal years after October 31, 2021, is as follows:

in thousands	Amortization Expense
2022	$	19,244
2023	18,351
2024	16,352
2025	14,627
2026	14,170

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INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

9 Months Ended

Jul. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES

The Company accounts for its majority-owned operations under the consolidation method. Investments in which the Company owns a minority interest and for which there are no other indicators of control are accounted for under the equity method. These investments, along with any related receivables from affiliates, are included in the Consolidated Condensed Statements of Financial Position as Investments In and Receivables From Affiliates.

Investments In and Receivables From Affiliates consist of:

in thousands	Segment	% Owned	July 31, 2022		October 31, 2021
MegaMex Foods, LLC	Grocery Products	50%	$	188,746	$	205,413
Other Joint Ventures	International & Other	Various (20-50%)	88,981		93,606
Total			$	277,727	$	299,019

Equity in Earnings of Affiliates consists of:

		Quarter Ended				Nine Months Ended
in thousands	Segment	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
MegaMex Foods, LLC	Grocery Products	$	4,555	$	7,529	$	14,562	$	29,625
Other Joint Ventures	International & Other	2,582		2,891		5,390		8,097
Total		$	7,138	$	10,420	$	19,951	$	37,722

For the quarter and nine months ended July 31, 2022, $0.0 million and $30.5 million of dividends were received from affiliates, compared to $11.2 million and $33.7 million of dividends received for the quarter and nine months ended July 25, 2021.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $10.4 million is remaining as of July 31, 2022. This difference is being amortized through Equity in Earnings of Affiliates.

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INVENTORIES

9 Months Ended

Jul. 31, 2022

Inventory, Net [Abstract]

INVENTORIES

INVENTORIES

Principal components of inventories are:

in thousands	July 31, 2022		October 31, 2021
Finished Products	$	945,454	$	725,115
Raw Materials and Work-in-Process	431,005		395,403
Operating Supplies	207,504		163,416
Maintenance Materials and Parts	95,216		85,264
Total	$	1,679,179	$	1,369,198

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DERIVATIVES AND HEDGING

9 Months Ended

Jul. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES AND HEDGING

DERIVATIVES AND HEDGING

The Company uses hedging programs to manage price risk associated with commodity purchases and interest rates. These programs utilize futures, swaps, and options contracts to manage the Company’s exposure to market fluctuations. The Company has determined its designated hedging programs to be highly effective in offsetting the changes in fair value or cash flows generated by the items hedged. Effectiveness testing is performed on a quarterly basis to ascertain a high level of effectiveness for cash flow and fair value hedging programs. If the requirements of hedge accounting are no longer met, hedge accounting will be discontinued immediately and any future changes to fair value will be recorded directly through earnings.

Cash Flow Commodity Hedges:  The Company designates grain and lean hog futures, swaps, and options used to offset price fluctuations in the Company’s future direct grain and hog purchases as cash flow hedges. Effective gains or losses related to these cash flow hedges are reported in Accumulated Other Comprehensive Loss (AOCL) and reclassified into earnings, through Cost of Products Sold, in the periods in which the hedged transactions affect earnings. The Company typically does not hedge its grain exposure beyond the next two upcoming fiscal years and its hog exposure beyond the next fiscal year.

Fair Value Commodity Hedges:  The Company designates the futures it uses to minimize the price risk assumed when fixed forward priced contracts are offered to the Company’s commodity suppliers as fair value hedges. The intent of the program is to make the forward priced commodities cost nearly the same as cash market purchases at the date of delivery. Changes in the fair value of the futures contracts, along with the gain or loss on the hedged purchase commitment, are marked-to-market through earnings and recorded on the Consolidated Condensed Statements of Financial Position as a Current Asset and Current Liability, respectively. Effective gains or losses related to these fair value hedges are recognized through Cost of Products Sold in the periods in which the hedged transactions affect earnings.

Cash Flow Interest Rate Hedges: In the second quarter of fiscal 2021, the Company designated two separate interest rate locks as cash flow hedges to manage interest rate risk associated with the anticipated debt transactions required to fund the acquisition of the Planters® snack nuts business. The total notional amount of the Company's locks was $1.25 billion. In the third quarter of fiscal 2021, the associated unsecured senior notes were issued with a tenor of seven and thirty years and both locks were lifted (See Note J - Long-term Debt and Other Borrowing Arrangements). Mark-to-market gains and losses on these instruments were deferred as a component of AOCL. The resulting gain in AOCL is reclassified to Interest Expense in the periods in which the hedged transactions affect earnings.

Fair Value Interest Rate Hedge: In the first quarter of fiscal 2022, the Company entered into an interest rate swap to protect against changes in the fair value of a portion of previously issued senior unsecured notes attributable to the change in the benchmark interest rate. The hedge specifically designates the last $450 million of the notes due June 2024 (the “2024 Notes”). The swap compounds quarterly and settles semi-annually with gains and losses recognized in earnings through interest expense. The swap includes SOFR plus a spread adjustment as a fallback rate to be used when LIBOR ceases to be published in June 2023. Mark-to-market changes in the fair value of the interest rate swap and hedged debt are also recognized as interest expense.

Other Derivatives:  The Company holds certain futures contract positions as part of a merchandising program and to manage the Company’s exposure to fluctuations in commodity markets. The Company has not applied hedge accounting to these positions. Activity related to derivatives not designated as hedges is immaterial to the consolidated financial statements.

Volume: The Company's outstanding contracts related to its commodity hedging programs include:

	Volume
Commodity Contracts	July 31, 2022	October 31, 2021
Corn	34.9 million bushels	33.1 million bushels
Lean Hogs	165.0 million pounds	120.0 million pounds

Fair Value of Derivatives:  The fair values of the Company’s derivative instruments designated as hedges are:

		Gross Fair Value
in thousands	Location on Consolidated Condensed Statements of Financial Position	July 31, 2022		October 31, 2021
Derivatives Designated as Hedges:
Commodity Contracts(1)	Other Current Assets	$	19,058	$	21,798
Interest Rate Contracts	Interest and Dividends Payable	(17,473)		—

(1) Amounts represent the gross fair value of commodity 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 commodity derivative in the Consolidated Condensed Statements of Financial Position. The gross asset position as of July 31, 2022 is offset by the obligation to return net cash collateral of $4.8 million contained within the master netting arrangement. The gross asset position as of October 31, 2021 is offset by the obligation to return net cash collateral of $10.8 million. See Note I - Fair Value Measurements for a discussion of these net amounts as reported in the Consolidated Condensed Statements of Financial Position.

Fair Value Hedge - Assets (Liabilities): The carrying amount of the Company's fair value hedged assets (liabilities) are:

		Carrying Amount of Hedged Assets/(Liabilities)
in thousands	Location on Consolidated Condensed Statements of Financial Position	July 31, 2022		October 31, 2021
Fair Value Hedges:
Commodity Contracts	Accounts Payable(1)	$	(2,126)	$	3,432
Interest Rate Contracts	Long-term Debt - Less Current Maturities(2)	(432,527)		—

(1)  Represents the carrying amount of fair value hedged assets and liabilities which are offset by other assets included in master netting arrangements described above.

(2) Represents the carrying amount of the hedged portion of the "2024 Notes". As of July 31, 2022, a cumulative basis adjustment of $17.5 million has been included in the carrying amount.

Accumulated Other Comprehensive Loss Impact: As of July 31, 2022, the Company included in AOCL hedging gains (before tax) of $34.0 million on commodity contracts and $13.7 million related to interest rate settled positions. The Company expects to recognize the majority of the gains on commodity contracts over the next twelve months. Gains on interest rate contracts offset the hedged interest payments over the tenor of the debt instruments.

The effect of AOCL for gains or losses (before tax) related to the Company's derivative instruments are:

	Gain/(Loss) Recognized  in AOCL (1)				Gain/(Loss) Reclassified from AOCL into Earnings (1)				Location on Consolidated Statements of Operations
	Quarter Ended				Quarter Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Cash Flow Hedges:
Commodity Contracts	$	(24,312)	$	5,467	$	21,216	$	14,261	Cost of Products Sold
Excluded Component (2)	(576)		1,261		—		—
Interest Rate Contracts	—		(3,675)		247		152		Interest Expense
	Gain/(Loss) Recognized  in AOCL (1)				Gain/(Loss) Reclassified from AOCL into Earnings (1)				Location on Consolidated Statements of Operations
	Nine Months Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Cash Flow Hedges:
Commodity Contracts	$	46,299	$	58,129	$	40,231	$	18,723	Cost of Products Sold
Excluded Component (2)	(4,020)		1,261		—		—
Interest Rate Contracts	—		14,864		741		152		Interest Expense

(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 of corn 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 are:

	Consolidated Statements of Operations Impact
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Net Earnings Attributable to Hormel Foods Corporation	$	218,915	$	176,917	$	720,103	$	627,101
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL	21,216		14,261		38,561		18,723
Amortization of Excluded Component from Options	(1,145)		(1,543)		(3,089)		(1,543)
Gain (Loss) Due to Discontinuance of Cash Flow Hedges (1)	—		—		1,620		—
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures (2)	(6,758)		(11,739)		(20,165)		(26,010)
Total Gain (Loss) on Commodity Contracts (3)	$	13,313	$	979	$	16,927	$	(8,830)
Cash Flow Hedges - Interest Rate Locks
Amortization of Gain on Interest Rate Locks	247		152		741		152
Fair Value Hedge - Interest Rate Swap
Gain (Loss) on Interest Rate Swap	(222)		—		1,270		—
Total Gain (Loss) on Interest Rate Contracts (4)	$	25	$	152	$	2,011	$	152
Total Gain (Loss) Recognized in Earnings	$	13,338	$	1,131	$	18,938	$	(8,678)

(1) During the second quarter of fiscal 2022, the Company discontinued hedge accounting on 0.6 million bushels of corn usage that was deemed no longer probable to occur.

(2)     Amounts represent gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and nine months ended July 31, 2022, which were offset by a corresponding gain or loss 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.

(3)    Total Gain (Loss) on Commodity Contracts is recognized in earnings through Cost of Products Sold.

(4)    Total Gain (Loss) on Interest Rate Contracts is recognized in earnings through Interest Expense.

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PENSION AND OTHER POST-RETIREMENT BENEFITS

9 Months Ended

Jul. 31, 2022

Retirement Benefits [Abstract]

PENSION AND OTHER POST-RETIREMENT BENEFITS

PENSION AND OTHER POST-RETIREMENT BENEFITS

Net periodic benefit cost for pension and other post-retirement benefit plans consists of:

	Pension Benefits
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Service Cost	$	10,019	$	9,107	$	30,057	$	27,321
Interest Cost	12,639		12,362		37,919		37,086
Expected Return on Plan Assets	(27,062)		(25,189)		(81,186)		(75,567)
Amortization of Prior Service Cost	(374)		(367)		(1,122)		(1,101)
Recognized Actuarial Loss	3,132		5,578		9,397		16,735
Net Periodic Cost	$	(1,645)	$	1,491	$	(4,936)	$	4,474

	Post-retirement Benefits
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Service Cost	$	118	$	131	$	351	$	392
Interest Cost	1,923		1,948		5,763		5,844
Amortization of Prior Service Cost	2		(164)		6		(492)
Recognized Actuarial Loss	610		495		1,829		1,486
Net Periodic Cost	$	2,652	$	2,410	$	7,950	$	7,230

Non-service cost components of net pension and postretirement benefit cost are presented within Interest and Investment Income on the Consolidated Statements of Operations.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Jul. 31, 2022

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

Components of Accumulated Other Comprehensive Loss are:

in thousands	Foreign Currency Translation		Pension & Other Benefits			Derivatives &  Hedging			Accumulated Other Comprehensive Loss
Balance at May 1, 2022	$	(36,319)	$	(256,073)		$	71,228		$	(221,164)
Unrecognized Gains (Losses)
Gross	(28,777)		(39)			(24,888)			(53,703)
Tax Effect	—		—			5,999			5,999
Reclassification into Net Earnings
Gross	—		3,370		(1)	(21,463)		(2)	(18,093)
Tax Effect	—		(827)			5,214			4,387
Net of Tax Amount	(28,777)		2,505			(35,138)			(61,410)
Balance at July 31, 2022	$	(65,096)	$	(253,568)		$	36,090		$	(282,574)
Balance at October 31, 2021	$	(51,181)	$	(261,211)		$	35,123		$	(277,269)
Unrecognized Gains (Losses)
Gross	(13,915)		12			42,279			28,377
Tax Effect	—		—			(10,285)			(10,285)
Reclassification into Net Earnings
Gross	—		10,110		(1)	(40,972)		(2)	(30,862)
Tax Effect	—		(2,480)			9,944			7,465
Net of Tax Amount	(13,915)		7,643			967			(5,305)
Balance at July 31, 2022	$	(65,096)	$	(253,568)		$	36,090		$	(282,574)

(1)    Included in the computation of net periodic cost. See Note G - Pension and Other Post-Retirement Benefits for additional information.

(2)    Included in Cost of Products Sold and Interest Expense in the Consolidated Statements of Operations. See Note F - Derivatives and Hedging for additional information.

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FAIR VALUE MEASUREMENTS

9 Months Ended

Jul. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of the three levels below based on the inputs used in the valuation.

Level 1:  Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.

Level 3:  Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.

The Company’s financial assets and liabilities carried at fair value on a recurring basis as of July 31, 2022, and October 31, 2021, and their level within the fair value hierarchy are presented in the table below.

	Fair Value Measurements at July 31, 2022
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)	$	850,344	$	850,015	$	328	$	—
Short-term Marketable Securities (2)	18,314		9,395		8,919		—
Other Trading Securities (3)	190,962		—		190,962		—
Commodity Derivatives (4)	14,719		12,678		2,042		—
Total Assets at Fair Value	$	1,074,339	$	872,088	$	202,251	$	—
Liabilities at Fair Value
Deferred Compensation (3)	$	60,977	$	—	$	60,977	$	—
Interest Rate Derivatives (5)	17,473		—		17,473		—
Total Liabilities at Fair Value	$	78,450	$	—	$	78,450	$	—

	Fair Value Measurements at October 31, 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)	$	613,530	$	611,111	$	2,419	$	—
Short-term Marketable Securities (2)	21,162		8,790		12,372		—
Other Trading Securities (3)	203,020		—		203,020		—
Commodity Derivatives (4)	13,522		8,104		5,418		—
Total Assets at Fair Value	$	851,234	$	628,005	$	223,229	$	—
Liabilities at Fair Value
Deferred Compensation (3)	$	70,466	$	—	$	70,466	$	—
Total Liabilities at Fair Value	$	70,466	$	—	$	70,466	$	—

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 majority of the funds held in the rabbi trust relate to 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 Company's deferred compensation plans, participants can defer certain types of compensation and elect to receive a return based on the changes in fair value of various investment options which include equity securities, money market accounts, bond funds or other portfolios for which there is an active quoted market. 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 liabilities are classified as Level 2. The Company maintains funding in the rabbi trust generally mirroring the selections within the deferred compensation plans. 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. These policies are classified as Level 2.

The rabbi trust is included in Other Assets and deferred compensation liabilities in Other Long-term Liabilities on the Consolidated Condensed Statements of Financial Position. Securities held by the rabbi trust are classified as trading securities. Unrealized gains and losses associated with these investments are included in the Company's earnings. During the quarter and nine months ended July 31, 2022, securities held by the rabbi trust generated losses of $0.1 million and $12.1 million, respectively, compared to gains of $1.5 million and $18.6 million for the quarter and nine months ended July 25, 2021.

(4)    The Company’s commodity derivatives represent futures, swaps, and options contracts 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. The Company’s corn futures option contracts are OTC instruments classified as Level 2 whose value is calculated using the Black-Scholes pricing model, corn future prices quoted from the Chicago Board of Trade, and other adjustments to inputs that are observable in active markets. 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 Condensed Statements of Financial Position. As of July 31, 2022, the Company has recognized the obligation to return net cash collateral of $4.8 million from various counterparties (including cash of $24.9 million less $20.1 million of realized gain). As of October 31, 2021, the Company had recognized the obligation to return net cash collateral of $10.8 million from various counterparties (including cash of $45.6 million less $34.8 million of realized gain).

(5)    The Company holds an interest rate hedging position to minimize the risk related to future interest rate changes. The fair value of the outstanding interest rate hedge agreement is based on an observable benchmark interest rate (LIBOR) and therefore classified as Level 2. The interest rate derivatives are included in Interest and Dividends Payable in the Consolidated Condensed Statements of Financial Position.

The Company’s financial assets and liabilities include accounts receivable, accounts payable, and other liabilities, for which carrying value approximates fair value. The Company does not carry its long-term debt at fair value in its Consolidated Condensed Statements of Financial Position. The fair value of long-term debt, utilizing discounted cash flows (Level 2), was $3.0 billion as of July 31, 2022, and $3.3 billion as of October 31, 2021. See Note J - Long Term Debt and Other Borrowing Arrangements for additional information.

The Company measures certain nonfinancial assets and liabilities at fair value, which are recognized or disclosed on a nonrecurring basis (e.g. goodwill, intangible assets, and property, plant and equipment). During the quarter and nine months ended July 31, 2022, and July 25, 2021, there were no material remeasurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.

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LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS

9 Months Ended

Jul. 31, 2022

Debt Disclosure [Abstract]

LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS

LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS

Long-term Debt consists of: 

in thousands	July 31, 2022		October 31, 2021
Senior Unsecured Notes, with Interest at 3.050%      Interest Due Semi-annually through June 2051 Maturity Date	$	600,000	$	600,000
Senior Unsecured Notes, with Interest at 1.800%      Interest Due Semi-annually through June 2030 Maturity Date	1,000,000		1,000,000
Senior Unsecured Notes, with Interest at 1.700%      Interest Due Semi-annually through June 2028 Maturity Date	750,000		750,000
Senior Unsecured Notes, with Interest at 0.650%      Interest Due Semi-annually through June 2024 Maturity Date	950,000		950,000
Unamortized Discount on Senior Notes	(7,934)		(8,484)
Unamortized Debt Issuance Costs	(20,751)		(23,435)
Interest Rate Swap	(17,473)		—
Finance Lease Liabilities	46,723		52,999
Other Financing Arrangements	2,529		2,823
Total	$	3,303,094	$	3,323,903
Less: Current Maturities of Long-term Debt	8,807		8,756
Long-term Debt Less Current Maturities	$	3,294,287	$	3,315,147

Senior Unsecured Notes: On June 11, 2020, the Company issued senior notes in an aggregate principal amount of $1.0 billion, due June 11, 2030. The notes bear interest at a fixed rate of 1.800% per annum, with interest paid semi-annually in arrears on June 11 and December 11 of each year, commencing December 11, 2020. The notes may be redeemed in whole or in part at any time at the applicable redemption price set forth in the prospectus supplement. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

On June 3, 2021, the Company issued $950.0 million aggregate principal amount of its 0.650% notes due 2024 (the "2024 Notes"), $750.0 million aggregate principal amount of its 1.700% notes due 2028 (the "2028 Notes") and $600.0 million aggregate principal amount of its 3.050% notes due 2051 (the "2051 Notes"). Interest will accrue per annum at the stated rates with interest on the notes being paid semi-annually in arrears on June 3 and December 3 of each year, commencing December 3, 2021. Interest rate risk was hedged utilizing interest rate locks on the 2028 Notes and 2051 Notes. The Company lifted the hedges in conjunction with the issuance of these notes. The 2024 Notes may be redeemed in whole or in part one year after their issuance without penalty for early partial payments or full redemption. The 2028 Notes and 2051 Notes may be redeemed in whole or in part at any time at the applicable redemption price. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

In the first quarter of fiscal 2022, the Company entered into an interest rate swap with a notional amount totaling $450.0 million effectively converting a portion of the 2024 Notes from a fixed to variable rate basis. The interest rate swap was designated as a fair value hedge of the underlying debt obligation. See Note F - Derivatives and Hedging for additional details.

Unsecured Revolving Credit Facility: On May 6, 2021, the Company entered into an unsecured revolving credit agreement with Wells Fargo Bank, National Association as administrative agent, swingline lender and issuing lender, U.S. Bank National Association, JPMorgan Chase Bank, N.A. and BofA Securities, Inc. as syndication agents and the lenders party thereto. In connection with entering the revolving credit agreement, the Company terminated its existing credit facility that was entered into on June 24, 2015. The revolving credit agreement provides for an unsecured revolving credit facility with an aggregate principal commitment amount at any time outstanding of up to $750.0 million with an uncommitted increase option of an additional $375.0 million upon the satisfaction of certain conditions. The unsecured revolving line of credit bears interest, at the Company’s election, at either a Base Rate plus margin of 0.0% to 0.150% or the Eurocurrency Rate plus margin of 0.575% to 1.150% and a variable fee of 0.050% to 0.100% is paid for the availability of this credit line. Extensions of credit under the facility may be made in the form of revolving loans, swingline loans and letters of credit. The lending commitments under the agreement are scheduled to expire on May 6, 2026, at which time the Company will be required to pay in full all obligations then outstanding. As of July 31, 2022, and October 31, 2021, the Company had no outstanding draws from this facility.

Debt Covenants: The Company is required by certain covenants in its debt agreements to maintain specified levels of financial ratios and financial position. As of July 31, 2022, the Company was in compliance with all of these covenants.

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INCOME TAXES

9 Months Ended

Jul. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company's tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events that may occur during the quarter. The effects of tax legislation are recognized in the period in which the law is enacted. The deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years the related temporary differences are anticipated to reverse.

The Company's effective tax rate for the quarter and nine months ended July 31, 2022, was 24.5 percent and 21.8 percent compared to 13.3 percent and 18.9 percent for the corresponding periods a year ago. The higher effective tax rate in the current quarter is due primarily to the decrease in tax benefits from stock option exercises.

The amount of unrecognized tax benefits, including interest and penalties, is recorded in Other Long-term Liabilities. If recognized as of July 31, 2022, and July 25, 2021, $19.5 million and $24.5 million, respectively, would impact the Company’s effective tax rate. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense. Interest and penalties included in income tax expense was immaterial for the quarter ended July 31, 2022, and July 25, 2021. The amount of accrued interest and penalties at July 31, 2022, and July 25, 2021, associated with unrecognized tax benefits was $4.8 million and $7.5 million, respectively.

The Company is regularly audited by federal and state taxing authorities. The United States Internal Revenue Service (I.R.S.) concluded its examination of fiscal 2019 in the second quarter of fiscal 2021. The Company has elected to participate in the Compliance Assurance Process (CAP) for fiscal years through 2023. The objective of CAP is to contemporaneously work with the I.R.S. to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time.

The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2015. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change, based on the status of the examinations it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

Subsequent to the end of the quarter, the Inflation Reduction Act of 2022 was signed into law. This legislation includes provisions that provide tax incentives as well as impose a 15% minimum tax on certain corporations' book income and a 1% excise tax on

certain stock repurchases. The Company is evaluating the effect these new laws, which will be effective in fiscal years 2023 and 2024, may have on our consolidated financial statements.

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EARNINGS PER SHARE DATA

9 Months Ended

Jul. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE DATA

EARNINGS PER SHARE DATA

The reported net earnings attributable to the Company were used when computing basic and diluted earnings per share. The following table sets forth the shares used as the denominator for those computations:

	Quarter Ended		Nine Months Ended
in thousands	July 31, 2022	July 25, 2021	July 31, 2022	July 25, 2021
Basic Weighted-Average Shares Outstanding	546,077	541,746	544,486	540,618
Dilutive Potential Common Shares	4,090	6,326	4,891	7,066
Diluted Weighted-Average Shares Outstanding	550,167	548,072	549,377	547,684
Antidilutive Potential Common Shares	1,787	2,350	2,026	2,305

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SEGMENT REPORTING

9 Months Ended

Jul. 31, 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.

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 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. 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.

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Sales to Unaffiliated Customers
Grocery Products	$	869,802	$	698,584	$	2,598,964	$	1,904,415
Refrigerated Foods	1,660,257		1,624,641		4,932,070		4,445,099
Jennie-O Turkey Store	323,796		350,897		1,115,554		1,035,397
International & Other	180,559		189,548		528,743		546,528
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438
Intersegment Sales
Grocery Products	$	—	$	—	$	—	$	—
Refrigerated Foods	4,645		7,636		18,825		19,527
Jennie-O Turkey Store	66,803		30,581		167,256		89,715
International & Other	—		—		—		—
Total	71,449		38,217		186,080		109,242
Intersegment Elimination	(71,449)		(38,217)		(186,080)		(109,242)
Total	$	—	$	—	$	—	$	—
Net Sales
Grocery Products	$	869,802	$	698,584	$	2,598,964	$	1,904,415
Refrigerated Foods	1,664,902		1,632,277		4,950,895		4,464,626
Jennie-O Turkey Store	390,599		381,478		1,282,810		1,125,112
International & Other	180,559		189,548		528,743		546,528
Intersegment Elimination	(71,449)		(38,217)		(186,080)		(109,242)
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438
Segment Profit
Grocery Products	$	76,478	$	80,791	$	265,263	$	270,963
Refrigerated Foods	177,109		153,216		517,993		467,740
Jennie-O Turkey Store	37,433		5,874		142,969		45,514
International & Other	25,334		27,915		75,071		84,600
Total Segment Profit	316,354		267,796		1,001,295		868,817
Net Unallocated Expense	26,429		63,715		80,799		95,166
Noncontrolling Interest	(89)		157		112		290
Earnings Before Income Taxes	$	289,836	$	204,238	$	920,608	$	773,940

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 are:

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
U.S. Retail	$	1,866,971	$	1,786,871	$	5,771,835	$	5,142,389
U.S. Foodservice	971,201		851,897		2,816,733		2,162,481
International	196,242		224,902		586,763		626,568
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438

Beginning in the first quarter of 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 consist primarily of meat and other food products. Total revenue contributed by classes of similar products are: 

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Perishable	$	1,813,513	$	1,610,378	$	5,369,888	$	4,440,347
Shelf-stable	649,853		670,446		1,914,496		1,761,883
Poultry	470,207		500,121		1,572,342		1,468,957
Miscellaneous	100,841		82,726		318,606		260,251
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438

Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, and guacamole (excludes 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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Jul. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation: The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include certain information and footnotes required by U.S. generally accepted accounting principles (GAAP) for comprehensive financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the interim period are not necessarily indicative of the results that may be expected for the full year. These statements should be reviewed in conjunction with the consolidated financial statements and associated notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021. The significant accounting policies used in preparing these interim consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the consolidated financial statements in the Form 10-K with the exception of new requirements adopted in the first quarter of fiscal 2022. The Company has determined there have been no material changes in the Company’s significant accounting policies, including estimates and assumptions, as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 31, 2021.

Fiscal Year

Fiscal Year: The Company’s fiscal year ends on the last Sunday in October. Fiscal 2022 consists of 52 weeks. Fiscal 2021 consisted of 53 weeks with the additional week occurring in the fourth quarter.

Reclassifications

Reclassifications: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

Accounting Changes and Recent Accounting Pronouncements

Accounting Changes and Recent Accounting Pronouncements:

New Accounting Pronouncements Adopted in Current Fiscal Year 

In December 2019, the Financial Accounting Standards Board (FASB) issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740). The updated guidance simplifies the accounting for income taxes by removing certain exceptions in Topic 740 and clarifying and amending existing guidance. The amendments are effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted the provisions of this new accounting standard at the beginning of fiscal 2022 and adoption did not have a material impact on its consolidated financial statements.

New Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848). The guidance provides optional expedients and exceptions to account for contracts, hedging relationships, and other transactions that reference London Interbank Referenced Rate (LIBOR) or another reference rate expected to be discontinued. The optional guidance can be applied from March 12, 2020 through December 31, 2022. The Company currently holds an interest rate swap which uses LIBOR as the benchmark interest rate. When LIBOR ceases to be published in June 2023, the benchmark interest rate of the swap will change to Secured Overnight Financing Rate (SOFR) plus a spread adjustment. The Company does not expect adoption of ASU 2020-04 to have a material impact on its consolidated financial statements.

Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not relevant to the Company.

Fair Value Measurements

Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of the three levels below based on the inputs used in the valuation.

Level 1:  Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.

Level 3:  Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.

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 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. 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.

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ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Jul. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of unaudited pro forma financial information

The following unaudited pro forma financial information presents the combined results of operations as if the acquisition of the Planters® snack nuts business had occurred on October 27, 2019. These unaudited pro forma results do not necessarily reflect the actual results of operations that would have been achieved had the acquisition occurred on that date, nor are they necessarily indicative of future results of operations.

	Quarter Ended		Nine Months Ended
in thousands	July 25, 2021		July 25, 2021
Pro Forma Net Sales	$	2,981,630	$	8,606,935
Pro Forma Net Earnings Attributable to Hormel Foods Corporation	215,983		704,143

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GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Jul. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in the carrying amount of goodwill

The change in the carrying amounts of goodwill for the nine months ended July 31, 2022 are:

in thousands	Grocery Products		Refrigerated Foods		Jennie-O Turkey Store		International & Other		Total
Balance at October 31, 2021	$	2,398,354	$	2,094,421	$	176,628	$	259,699	$	4,929,102
Foreign Currency Translation	—		—		—		235		235
Balance at July 31, 2022	$	2,398,354	$	2,094,421	$	176,628	$	259,935	$	4,929,337

Schedule of carrying amounts for indefinite-lived intangible assets

The carrying amounts for indefinite-lived intangible assets are:

in thousands	July 31, 2022		October 31, 2021
Brands/Tradenames/Trademarks	$	1,665,190	$	1,665,190
Other Intangibles	184		184
Foreign Currency Translation	(6,318)		(6,646)
Total	$	1,659,056	$	1,658,728

Schedule of gross carrying amount and accumulated amortization for definite-lived intangible assets

The gross carrying amount and accumulated amortization for definite-lived intangible assets are:

	July 31, 2022				October 31, 2021
in thousands	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Customer Lists/Relationships	$	168,239	$	(66,558)	$	168,239	$	(56,882)
Other Intangibles	59,241		(10,544)		60,241		(8,356)
Tradenames/Trademarks	10,536		(7,308)		10,536		(5,700)
Foreign Currency Translation	—		(4,426)		—		(4,534)
Total	$	238,016	$	(88,836)	$	239,016	$	(75,471)

Schedule of estimated annual amortization expense

Estimated annual amortization expense for the five fiscal years after October 31, 2021, is as follows:

in thousands	Amortization Expense
2022	$	19,244
2023	18,351
2024	16,352
2025	14,627
2026	14,170

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INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES (Tables)

9 Months Ended

Jul. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Schedule of investments in, receivables from, and equity in earnings of affiliates

Investments In and Receivables From Affiliates consist of:

in thousands	Segment	% Owned	July 31, 2022		October 31, 2021
MegaMex Foods, LLC	Grocery Products	50%	$	188,746	$	205,413
Other Joint Ventures	International & Other	Various (20-50%)	88,981		93,606
Total			$	277,727	$	299,019

Schedule of equity in earnings of affiliates

Equity in Earnings of Affiliates consists of:

		Quarter Ended				Nine Months Ended
in thousands	Segment	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
MegaMex Foods, LLC	Grocery Products	$	4,555	$	7,529	$	14,562	$	29,625
Other Joint Ventures	International & Other	2,582		2,891		5,390		8,097
Total		$	7,138	$	10,420	$	19,951	$	37,722

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INVENTORIES (Tables)

9 Months Ended

Jul. 31, 2022

Inventory, Net [Abstract]

Schedule of principal components of inventories

Principal components of inventories are:

in thousands	July 31, 2022		October 31, 2021
Finished Products	$	945,454	$	725,115
Raw Materials and Work-in-Process	431,005		395,403
Operating Supplies	207,504		163,416
Maintenance Materials and Parts	95,216		85,264
Total	$	1,679,179	$	1,369,198

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DERIVATIVES AND HEDGING (Tables)

9 Months Ended

Jul. 31, 2022

Derivative [Line Items]

Schedule of fair values of derivative instruments

The fair values of the Company’s derivative instruments designated as hedges are:

		Gross Fair Value
in thousands	Location on Consolidated Condensed Statements of Financial Position	July 31, 2022		October 31, 2021
Derivatives Designated as Hedges:
Commodity Contracts(1)	Other Current Assets	$	19,058	$	21,798
Interest Rate Contracts	Interest and Dividends Payable	(17,473)		—

(1) Amounts represent the gross fair value of commodity 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 commodity derivative in the Consolidated Condensed Statements of Financial Position. The gross asset position as of July 31, 2022 is offset by the obligation to return net cash collateral of $4.8 million contained within the master netting arrangement. The gross asset position as of October 31, 2021 is offset by the obligation to return net cash collateral of $10.8 million. See Note I - Fair Value Measurements for a discussion of these net amounts as reported in the Consolidated Condensed Statements of Financial Position.

Schedule of fair value hedge assets (liabilities)

The carrying amount of the Company's fair value hedged assets (liabilities) are:

		Carrying Amount of Hedged Assets/(Liabilities)
in thousands	Location on Consolidated Condensed Statements of Financial Position	July 31, 2022		October 31, 2021
Fair Value Hedges:
Commodity Contracts	Accounts Payable(1)	$	(2,126)	$	3,432
Interest Rate Contracts	Long-term Debt - Less Current Maturities(2)	(432,527)		—

(1)  Represents the carrying amount of fair value hedged assets and liabilities which are offset by other assets included in master netting arrangements described above.

(2) Represents the carrying amount of the hedged portion of the "2024 Notes". As of July 31, 2022, a cumulative basis adjustment of $17.5 million has been included in the carrying amount.

Schedule of gains or losses related to derivative instruments

The effect of AOCL for gains or losses (before tax) related to the Company's derivative instruments are:

	Gain/(Loss) Recognized  in AOCL (1)				Gain/(Loss) Reclassified from AOCL into Earnings (1)				Location on Consolidated Statements of Operations
	Quarter Ended				Quarter Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Cash Flow Hedges:
Commodity Contracts	$	(24,312)	$	5,467	$	21,216	$	14,261	Cost of Products Sold
Excluded Component (2)	(576)		1,261		—		—
Interest Rate Contracts	—		(3,675)		247		152		Interest Expense
	Gain/(Loss) Recognized  in AOCL (1)				Gain/(Loss) Reclassified from AOCL into Earnings (1)				Location on Consolidated Statements of Operations
	Nine Months Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Cash Flow Hedges:
Commodity Contracts	$	46,299	$	58,129	$	40,231	$	18,723	Cost of Products Sold
Excluded Component (2)	(4,020)		1,261		—		—
Interest Rate Contracts	—		14,864		741		152		Interest Expense

(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 of corn 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 are:

	Consolidated Statements of Operations Impact
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Net Earnings Attributable to Hormel Foods Corporation	$	218,915	$	176,917	$	720,103	$	627,101
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL	21,216		14,261		38,561		18,723
Amortization of Excluded Component from Options	(1,145)		(1,543)		(3,089)		(1,543)
Gain (Loss) Due to Discontinuance of Cash Flow Hedges (1)	—		—		1,620		—
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures (2)	(6,758)		(11,739)		(20,165)		(26,010)
Total Gain (Loss) on Commodity Contracts (3)	$	13,313	$	979	$	16,927	$	(8,830)
Cash Flow Hedges - Interest Rate Locks
Amortization of Gain on Interest Rate Locks	247		152		741		152
Fair Value Hedge - Interest Rate Swap
Gain (Loss) on Interest Rate Swap	(222)		—		1,270		—
Total Gain (Loss) on Interest Rate Contracts (4)	$	25	$	152	$	2,011	$	152
Total Gain (Loss) Recognized in Earnings	$	13,338	$	1,131	$	18,938	$	(8,678)

(1) During the second quarter of fiscal 2022, the Company discontinued hedge accounting on 0.6 million bushels of corn usage that was deemed no longer probable to occur.

(2)     Amounts represent gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and nine months ended July 31, 2022, which were offset by a corresponding gain or loss 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.

(3)    Total Gain (Loss) on Commodity Contracts is recognized in earnings through Cost of Products Sold.

(4)    Total Gain (Loss) on Interest Rate Contracts is recognized in earnings through Interest Expense.

Cash Flow Hedges

Derivative [Line Items]

Schedule of outstanding commodity futures contracts

The Company's outstanding contracts related to its commodity hedging programs include:

	Volume
Commodity Contracts	July 31, 2022	October 31, 2021
Corn	34.9 million bushels	33.1 million bushels
Lean Hogs	165.0 million pounds	120.0 million pounds

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PENSION AND OTHER POST-RETIREMENT BENEFITS (Tables)

9 Months Ended

Jul. 31, 2022

Retirement Benefits [Abstract]

Schedule of net periodic cost of defined benefit plans

Net periodic benefit cost for pension and other post-retirement benefit plans consists of:

	Pension Benefits
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Service Cost	$	10,019	$	9,107	$	30,057	$	27,321
Interest Cost	12,639		12,362		37,919		37,086
Expected Return on Plan Assets	(27,062)		(25,189)		(81,186)		(75,567)
Amortization of Prior Service Cost	(374)		(367)		(1,122)		(1,101)
Recognized Actuarial Loss	3,132		5,578		9,397		16,735
Net Periodic Cost	$	(1,645)	$	1,491	$	(4,936)	$	4,474

	Post-retirement Benefits
	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Service Cost	$	118	$	131	$	351	$	392
Interest Cost	1,923		1,948		5,763		5,844
Amortization of Prior Service Cost	2		(164)		6		(492)
Recognized Actuarial Loss	610		495		1,829		1,486
Net Periodic Cost	$	2,652	$	2,410	$	7,950	$	7,230

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

9 Months Ended

Jul. 31, 2022

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of components of accumulated other comprehensive loss

Components of Accumulated Other Comprehensive Loss are:

in thousands	Foreign Currency Translation		Pension & Other Benefits			Derivatives &  Hedging			Accumulated Other Comprehensive Loss
Balance at May 1, 2022	$	(36,319)	$	(256,073)		$	71,228		$	(221,164)
Unrecognized Gains (Losses)
Gross	(28,777)		(39)			(24,888)			(53,703)
Tax Effect	—		—			5,999			5,999
Reclassification into Net Earnings
Gross	—		3,370		(1)	(21,463)		(2)	(18,093)
Tax Effect	—		(827)			5,214			4,387
Net of Tax Amount	(28,777)		2,505			(35,138)			(61,410)
Balance at July 31, 2022	$	(65,096)	$	(253,568)		$	36,090		$	(282,574)
Balance at October 31, 2021	$	(51,181)	$	(261,211)		$	35,123		$	(277,269)
Unrecognized Gains (Losses)
Gross	(13,915)		12			42,279			28,377
Tax Effect	—		—			(10,285)			(10,285)
Reclassification into Net Earnings
Gross	—		10,110		(1)	(40,972)		(2)	(30,862)
Tax Effect	—		(2,480)			9,944			7,465
Net of Tax Amount	(13,915)		7,643			967			(5,305)
Balance at July 31, 2022	$	(65,096)	$	(253,568)		$	36,090		$	(282,574)

(1)    Included in the computation of net periodic cost. See Note G - Pension and Other Post-Retirement Benefits for additional information.

(2)    Included in Cost of Products Sold and Interest Expense in the Consolidated Statements of Operations. See Note F - Derivatives and Hedging for additional information.

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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Jul. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of financial assets and liabilities carried at fair value on a recurring basis

The Company’s financial assets and liabilities carried at fair value on a recurring basis as of July 31, 2022, and October 31, 2021, and their level within the fair value hierarchy are presented in the table below.

	Fair Value Measurements at July 31, 2022
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)	$	850,344	$	850,015	$	328	$	—
Short-term Marketable Securities (2)	18,314		9,395		8,919		—
Other Trading Securities (3)	190,962		—		190,962		—
Commodity Derivatives (4)	14,719		12,678		2,042		—
Total Assets at Fair Value	$	1,074,339	$	872,088	$	202,251	$	—
Liabilities at Fair Value
Deferred Compensation (3)	$	60,977	$	—	$	60,977	$	—
Interest Rate Derivatives (5)	17,473		—		17,473		—
Total Liabilities at Fair Value	$	78,450	$	—	$	78,450	$	—

	Fair Value Measurements at October 31, 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)	$	613,530	$	611,111	$	2,419	$	—
Short-term Marketable Securities (2)	21,162		8,790		12,372		—
Other Trading Securities (3)	203,020		—		203,020		—
Commodity Derivatives (4)	13,522		8,104		5,418		—
Total Assets at Fair Value	$	851,234	$	628,005	$	223,229	$	—
Liabilities at Fair Value
Deferred Compensation (3)	$	70,466	$	—	$	70,466	$	—
Total Liabilities at Fair Value	$	70,466	$	—	$	70,466	$	—

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 majority of the funds held in the rabbi trust relate to 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 Company's deferred compensation plans, participants can defer certain types of compensation and elect to receive a return based on the changes in fair value of various investment options which include equity securities, money market accounts, bond funds or other portfolios for which there is an active quoted market. 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 liabilities are classified as Level 2. The Company maintains funding in the rabbi trust generally mirroring the selections within the deferred compensation plans. 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. These policies are classified as Level 2.

The rabbi trust is included in Other Assets and deferred compensation liabilities in Other Long-term Liabilities on the Consolidated Condensed Statements of Financial Position. Securities held by the rabbi trust are classified as trading securities. Unrealized gains and losses associated with these investments are included in the Company's earnings. During the quarter and nine months ended July 31, 2022, securities held by the rabbi trust generated losses of $0.1 million and $12.1 million, respectively, compared to gains of $1.5 million and $18.6 million for the quarter and nine months ended July 25, 2021.

(4)    The Company’s commodity derivatives represent futures, swaps, and options contracts 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. The Company’s corn futures option contracts are OTC instruments classified as Level 2 whose value is calculated using the Black-Scholes pricing model, corn future prices quoted from the Chicago Board of Trade, and other adjustments to inputs that are observable in active markets. 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 Condensed Statements of Financial Position. As of July 31, 2022, the Company has recognized the obligation to return net cash collateral of $4.8 million from various counterparties (including cash of $24.9 million less $20.1 million of realized gain). As of October 31, 2021, the Company had recognized the obligation to return net cash collateral of $10.8 million from various counterparties (including cash of $45.6 million less $34.8 million of realized gain).

(5)    The Company holds an interest rate hedging position to minimize the risk related to future interest rate changes. The fair value of the outstanding interest rate hedge agreement is based on an observable benchmark interest rate (LIBOR) and therefore classified as Level 2. The interest rate derivatives are included in Interest and Dividends Payable in the Consolidated Condensed Statements of Financial Position.

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LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS (Tables)

9 Months Ended

Jul. 31, 2022

Debt Disclosure [Abstract]

Schedule of long-term debt

Long-term Debt consists of: 

in thousands	July 31, 2022		October 31, 2021
Senior Unsecured Notes, with Interest at 3.050%      Interest Due Semi-annually through June 2051 Maturity Date	$	600,000	$	600,000
Senior Unsecured Notes, with Interest at 1.800%      Interest Due Semi-annually through June 2030 Maturity Date	1,000,000		1,000,000
Senior Unsecured Notes, with Interest at 1.700%      Interest Due Semi-annually through June 2028 Maturity Date	750,000		750,000
Senior Unsecured Notes, with Interest at 0.650%      Interest Due Semi-annually through June 2024 Maturity Date	950,000		950,000
Unamortized Discount on Senior Notes	(7,934)		(8,484)
Unamortized Debt Issuance Costs	(20,751)		(23,435)
Interest Rate Swap	(17,473)		—
Finance Lease Liabilities	46,723		52,999
Other Financing Arrangements	2,529		2,823
Total	$	3,303,094	$	3,323,903
Less: Current Maturities of Long-term Debt	8,807		8,756
Long-term Debt Less Current Maturities	$	3,294,287	$	3,315,147

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EARNINGS PER SHARE DATA (Tables)

9 Months Ended

Jul. 31, 2022

Earnings Per Share [Abstract]

Schedule of denominator for the computation of basic and diluted earnings per share

The following table sets forth the shares used as the denominator for those computations:

	Quarter Ended		Nine Months Ended
in thousands	July 31, 2022	July 25, 2021	July 31, 2022	July 25, 2021
Basic Weighted-Average Shares Outstanding	546,077	541,746	544,486	540,618
Dilutive Potential Common Shares	4,090	6,326	4,891	7,066
Diluted Weighted-Average Shares Outstanding	550,167	548,072	549,377	547,684
Antidilutive Potential Common Shares	1,787	2,350	2,026	2,305

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SEGMENT REPORTING (Tables)

9 Months Ended

Jul. 31, 2022

Segment Reporting [Abstract]

Schedule of sales and operating profits for each of the reportable segments and reconciliation 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.

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Sales to Unaffiliated Customers
Grocery Products	$	869,802	$	698,584	$	2,598,964	$	1,904,415
Refrigerated Foods	1,660,257		1,624,641		4,932,070		4,445,099
Jennie-O Turkey Store	323,796		350,897		1,115,554		1,035,397
International & Other	180,559		189,548		528,743		546,528
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438
Intersegment Sales
Grocery Products	$	—	$	—	$	—	$	—
Refrigerated Foods	4,645		7,636		18,825		19,527
Jennie-O Turkey Store	66,803		30,581		167,256		89,715
International & Other	—		—		—		—
Total	71,449		38,217		186,080		109,242
Intersegment Elimination	(71,449)		(38,217)		(186,080)		(109,242)
Total	$	—	$	—	$	—	$	—
Net Sales
Grocery Products	$	869,802	$	698,584	$	2,598,964	$	1,904,415
Refrigerated Foods	1,664,902		1,632,277		4,950,895		4,464,626
Jennie-O Turkey Store	390,599		381,478		1,282,810		1,125,112
International & Other	180,559		189,548		528,743		546,528
Intersegment Elimination	(71,449)		(38,217)		(186,080)		(109,242)
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438
Segment Profit
Grocery Products	$	76,478	$	80,791	$	265,263	$	270,963
Refrigerated Foods	177,109		153,216		517,993		467,740
Jennie-O Turkey Store	37,433		5,874		142,969		45,514
International & Other	25,334		27,915		75,071		84,600
Total Segment Profit	316,354		267,796		1,001,295		868,817
Net Unallocated Expense	26,429		63,715		80,799		95,166
Noncontrolling Interest	(89)		157		112		290
Earnings Before Income Taxes	$	289,836	$	204,238	$	920,608	$	773,940

Schedule of total revenues contributed by sales channel

Total revenue contributed by sales channel are:

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
U.S. Retail	$	1,866,971	$	1,786,871	$	5,771,835	$	5,142,389
U.S. Foodservice	971,201		851,897		2,816,733		2,162,481
International	196,242		224,902		586,763		626,568
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438

Total revenue contributed by classes of similar products are: 

	Quarter Ended				Nine Months Ended
in thousands	July 31, 2022		July 25, 2021		July 31, 2022		July 25, 2021
Perishable	$	1,813,513	$	1,610,378	$	5,369,888	$	4,440,347
Shelf-stable	649,853		670,446		1,914,496		1,761,883
Poultry	470,207		500,121		1,572,342		1,468,957
Miscellaneous	100,841		82,726		318,606		260,251
Total	$	3,034,414	$	2,863,670	$	9,175,331	$	7,931,438

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ACQUISITIONS AND DIVESTITURES - Narrative (Details) - Planters Snack Nuts Business - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Jun. 07, 2021	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
ACQUISITIONS
Final purchase price, including working capital adjustments	$ 3,400.0
Net sales contributed by acquisition		$ 243.1	$ 141.3	$ 753.9	$ 141.3
Acquisition-related costs			27.5		30.3
Acquisition adjustments related to the preliminary revaluation of acquired inventory			12.9		12.9
Acquisition-related costs and adjustments			$ 40.4		$ 43.2

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ACQUISITIONS AND DIVESTITURES - Unaudited Pro Forma Financial Information (Details) - Planters Snack Nuts Business - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jul. 25, 2021	Jul. 25, 2021
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Pro Forma Net Sales	$ 2,981,630	$ 8,606,935
Pro Forma Net Earnings Attributable to Hormel Foods Corporation	$ 215,983	$ 704,143

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GOODWILL AND INTANGIBLE ASSETS - Changes in Carrying Amounts of Goodwill (Details) $ in Thousands	9 Months Ended
	Jul. 31, 2022 USD ($)
Changes in the carrying amount of goodwill
Beginning Balance	$ 4,929,102
Foreign Currency Translation	235
Ending Balance	4,929,337
Grocery Products
Changes in the carrying amount of goodwill
Beginning Balance	2,398,354
Foreign Currency Translation	0
Ending Balance	2,398,354
Refrigerated Foods
Changes in the carrying amount of goodwill
Beginning Balance	2,094,421
Foreign Currency Translation	0
Ending Balance	2,094,421
Jennie-O Turkey Store
Changes in the carrying amount of goodwill
Beginning Balance	176,628
Foreign Currency Translation	0
Ending Balance	176,628
International & Other
Changes in the carrying amount of goodwill
Beginning Balance	259,699
Foreign Currency Translation	235
Ending Balance	$ 259,935

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GOODWILL AND INTANGIBLE ASSETS - Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Carrying amounts for indefinite-lived intangible assets
Total	$ 1,659,056	$ 1,658,728
Brands/Tradenames/Trademarks
Carrying amounts for indefinite-lived intangible assets
Total	1,665,190	1,665,190
Other Intangibles
Carrying amounts for indefinite-lived intangible assets
Total	184	184
Foreign Currency Translation
Carrying amounts for indefinite-lived intangible assets
Total	$ 6,318	$ 6,646

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GOODWILL AND INTANGIBLE ASSETS - Definite Lived Intangibles Assets (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	$ 238,016	$ 239,016
Accumulated Amortization	(88,836)	(75,471)
Customer Lists/Relationships
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	168,239	168,239
Accumulated Amortization	(66,558)	(56,882)
Other Intangibles
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	59,241	60,241
Accumulated Amortization	(10,544)	(8,356)
Tradenames/Trademarks
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	10,536	10,536
Accumulated Amortization	(7,308)	(5,700)
Foreign Currency Translation
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	0	0
Accumulated Amortization	$ (4,426)	$ (4,534)

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GOODWILL AND INTANGIBLE ASSETS - Estimated Annual Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021	Oct. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 4,800	$ 4,400	$ 14,500	$ 12,300
Amortization Expense
2022					$ 19,244
2023					18,351
2024					16,352
2025					14,627
2026					$ 14,170

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INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES - Schedule of Investments and Equity Information (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Investments In and Receivables from Affiliates
Total	$ 277,727	$ 299,019
MegaMex Foods, LLC
Investments In and Receivables from Affiliates
% Owned	50.00%	50.00%
Total	$ 188,746	$ 205,413
Other Joint Ventures
Investments In and Receivables from Affiliates
Total	$ 88,981	$ 93,606
Other Joint Ventures | Minimum
Investments In and Receivables from Affiliates
% Owned	20.00%	20.00%
Other Joint Ventures | Maximum
Investments In and Receivables from Affiliates
% Owned	50.00%	50.00%

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INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES - Schedule of Equity in Earnings of Affiliates (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Investments In and Receivables from Affiliates
Total	$ 7,138	$ 10,420	$ 19,951	$ 37,722
MegaMex Foods, LLC
Investments In and Receivables from Affiliates
Total	4,555	7,529	14,562	29,625
Other Joint Ventures
Investments In and Receivables from Affiliates
Total	$ 2,582	$ 2,891	$ 5,390	$ 8,097

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INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021	Oct. 26, 2009
Schedule of Equity Method Investments [Line Items]
Dividends received from affiliates	$ 0.0	$ 11.2	$ 30.5	$ 33.7
MegaMex Foods, LLC
Schedule of Equity Method Investments [Line Items]
Excess of investment over the underlying equity in net assets of the joint venture	$ 10.4		$ 10.4		$ 21.3

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INVENTORIES - Schedule of Principal Components of Inventories (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Inventory, Net [Abstract]
Finished Products	$ 945,454	$ 725,115
Raw Materials and Work-in-Process	431,005	395,403
Operating Supplies	207,504	163,416
Maintenance Materials and Parts	95,216	85,264
Total	$ 1,679,179	$ 1,369,198

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DERIVATIVES AND HEDGING - Narrative (Details)	3 Months Ended	9 Months Ended
	Jul. 25, 2021	Jul. 31, 2022 USD ($)	Jan. 30, 2022 USD ($)	Apr. 25, 2021 USD ($) derivative
Corn
Derivative [Line Items]
Maximum length of time to hedge exposure		2 years
Lean Hogs
Derivative [Line Items]
Maximum length of time to hedge exposure		12 months
Interest Rate Locks | Derivatives designated as hedges | Cash Flow Hedges
Derivative [Line Items]
Number of hedging instruments | derivative				2
Total notional amount of hedging				$ 1,250,000,000
Interest Rate Locks | Derivatives designated as hedges | Cash Flow Hedges | Minimum
Derivative [Line Items]
Tenor of hedging contracts	7 years
Interest Rate Locks | Derivatives designated as hedges | Cash Flow Hedges | Maximum
Derivative [Line Items]
Tenor of hedging contracts	30 years
Interest Rate Contracts | Derivatives designated as hedges | Fair Value Hedges
Derivative [Line Items]
Total notional amount of hedging			$ 450,000,000
Commodity Contracts
Derivative [Line Items]
Hedging gains to be recognized within next twelve months		$ 34,000,000
Interest Rate Contracts
Derivative [Line Items]
Hedging gains to be recognized within next twelve months		$ 13,700,000

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DERIVATIVES AND HEDGING - Outstanding Commodity Future Contracts (Details) - Cash Flow Hedges lb in Millions, bu in Millions	9 Months Ended	12 Months Ended
	Jul. 31, 2022 lb bu	Oct. 31, 2021 lb bu
Corn
Derivative [Line Items]
Futures contracts, volume (in million bushels) | bu	34.9	33.1
Lean Hogs
Derivative [Line Items]
Futures contracts, volume (in million pounds) | lb	165.0	120.0

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DERIVATIVES AND HEDGING - Fair Value of Derivatives (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Derivatives fair value
Obligation to return net cash collateral	$ 4,800	$ 10,800
Derivatives designated as hedges | Cash Flow Hedges | Commodity Contracts | Other Current Assets
Derivatives fair value
Gross Fair Value	19,058	21,798
Derivatives designated as hedges | Cash Flow Hedges | Interest Rate Contracts | Interest and Dividends Payable
Derivatives fair value
Gross Fair Value	$ (17,473)	$ 0

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DERIVATIVES AND HEDGING - Fair Value Hedge Assets (Liabilities) (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Derivatives fair value
Cumulative basis adjustment of carrying amount of hedged portion of 2024 Notes	$ 17,473	$ 0
Fair Value Hedges | Commodity Contracts | Accounts Payable
Derivatives fair value
Carrying Amount of Hedged Assets/(Liabilities)	(2,126)	3,432
Fair Value Hedges | Interest Rate Contracts | Long-term Debt - Less Current Maturities
Derivatives fair value
Carrying Amount of Hedged Assets/(Liabilities)	$ (432,527)	$ 0

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DERIVATIVES AND HEDGING - Effects on Accumulated Other Comprehensive Gains and Losses (Before Tax) of Derivative Instruments (Details) - Derivatives designated as hedges - Cash Flow Hedges - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Commodity Contracts
Derivative instruments gains or losses (before tax)
Gain/(Loss) Reclassified from AOCL into Earnings	$ 21,216	$ 14,261	$ 38,561	$ 18,723
Cost of Products Sold | Commodity Contracts
Derivative instruments gains or losses (before tax)
Gain/(Loss) Recognized in AOCL	(24,312)	5,467	46,299	58,129
Gain/(Loss) Reclassified from AOCL into Earnings	21,216	14,261	40,231	18,723
Cost of Products Sold | Corn Options
Derivative instruments gains or losses (before tax)
Excluded Component	(576)	1,261	(4,020)	1,261
Excluded Component	0	0	0	0
Interest Expense | Interest Rate Contracts
Derivative instruments gains or losses (before tax)
Gain/(Loss) Recognized in AOCL	0	(3,675)	0	14,864
Gain/(Loss) Reclassified from AOCL into Earnings	$ 247	$ 152	$ 741	$ 152

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DERIVATIVES AND HEDGING - Consolidated Condensed Statements of Operations Impact of Gains or Losses on Derivative Instruments (Details) $ in Thousands, bu in Millions	3 Months Ended			9 Months Ended		12 Months Ended
	Jul. 31, 2022 USD ($)	May 01, 2022 bu	Jul. 25, 2021 USD ($)	Jul. 31, 2022 USD ($) bu	Jul. 25, 2021 USD ($)	Oct. 31, 2021 bu
Derivative [Line Items]
Net Earnings Attributable to Hormel Foods Corporation	$ 218,915		$ 176,917	$ 720,103	$ 627,101
Fair Value Hedges
Total Gain (Loss) Recognized in Earnings	13,338		1,131	$ 18,938	(8,678)
Cash Flow Hedges | Corn
Fair Value Hedges
Futures contracts, volume (in million bushels) | bu				34.9		33.1
Derivatives designated as hedges | Commodity Contracts
Fair Value Hedges
Total Gain (Loss) Recognized in Earnings	13,313		979	$ 16,927	(8,830)
Derivatives designated as hedges | Interest Rate Contracts
Fair Value Hedges
Total Gain (Loss) Recognized in Earnings	25		152	2,011	152
Derivatives designated as hedges | Cash Flow Hedges | Commodity Contracts
Cash Flow Hedges
Gain (Loss) Reclassified from AOCL and Amortization of Gain on Interest Rate Locks	21,216		14,261	38,561	18,723
Amortization of Excluded Component from Options	(1,145)		(1,543)	(3,089)	(1,543)
Gain (Loss) Due to Discontinuance of Cash Flow Hedges	0		0	1,620	0
Derivatives designated as hedges | Cash Flow Hedges | Interest Rate Locks
Cash Flow Hedges
Gain (Loss) Reclassified from AOCL and Amortization of Gain on Interest Rate Locks	247		152	741	152
Derivatives designated as hedges | Cash Flow Hedges | Corn
Fair Value Hedges
Futures contracts, volume (in million bushels) | bu		0.6
Derivatives designated as hedges | Fair Value Hedges | Commodity Contracts
Fair Value Hedges
Gain (loss) on Commodity Futures and Interest Rate Swap	(6,758)		(11,739)	(20,165)	(26,010)
Derivatives designated as hedges | Fair Value Hedges | Interest Rate Swap
Fair Value Hedges
Gain (loss) on Commodity Futures and Interest Rate Swap	$ (222)		$ 0	$ 1,270	$ 0

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PENSION AND OTHER POST-RETIREMENT BENEFITS - Schedule of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Pension Benefits
Net periodic cost of defined benefit plans
Service Cost	$ 10,019	$ 9,107	$ 30,057	$ 27,321
Interest Cost	12,639	12,362	37,919	37,086
Expected Return on Plan Assets	(27,062)	(25,189)	(81,186)	(75,567)
Amortization of Prior Service Cost	(374)	(367)	(1,122)	(1,101)
Recognized Actuarial Loss	3,132	5,578	9,397	16,735
Net Periodic Cost	(1,645)	1,491	(4,936)	4,474
Post-retirement Benefits
Net periodic cost of defined benefit plans
Service Cost	118	131	351	392
Interest Cost	1,923	1,948	5,763	5,844
Amortization of Prior Service Cost	2	(164)	6	(492)
Recognized Actuarial Loss	610	495	1,829	1,486
Net Periodic Cost	$ 2,652	$ 2,410	$ 7,950	$ 7,230

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ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Components (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jul. 31, 2022	Jul. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance		$ 6,972,883
Unrecognized Gains (Losses)
Gross	$ (53,703)	28,377
Tax Effect	5,999	(10,285)
Reclassification into Net Earnings
Gross	(18,093)	(30,862)
Tax Effect	4,387	7,465
Net of Tax Amount	(61,410)	(5,305)
Ending Balance	7,361,676	7,361,676
Accumulated Other Comprehensive Loss
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(221,164)	(277,269)
Reclassification into Net Earnings
Ending Balance	(282,574)	(282,574)
Foreign Currency Translation
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(36,319)	(51,181)
Unrecognized Gains (Losses)
Gross	(28,777)	(13,915)
Tax Effect	0	0
Reclassification into Net Earnings
Gross	0	0
Tax Effect	0	0
Net of Tax Amount	(28,777)	(13,915)
Ending Balance	(65,096)	(65,096)
Pension & Other Benefits
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(256,073)	(261,211)
Unrecognized Gains (Losses)
Gross	(39)	12
Tax Effect	0	0
Reclassification into Net Earnings
Gross	3,370	10,110
Tax Effect	(827)	(2,480)
Net of Tax Amount	2,505	7,643
Ending Balance	(253,568)	(253,568)
Derivatives & Hedging
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	71,228	35,123
Unrecognized Gains (Losses)
Gross	(24,888)	42,279
Tax Effect	5,999	(10,285)
Reclassification into Net Earnings
Gross	(21,463)	(40,972)
Tax Effect	5,214	9,944
Net of Tax Amount	(35,138)	967
Ending Balance	$ 36,090	$ 36,090

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FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Carried at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021	Oct. 31, 2021
Right To Reclaim Net Cash Collateral, Commodity Derivatives [Abstract]
Obligation to return net cash collateral	$ 4,800		$ 4,800		$ 10,800
Obligation to return net cash collateral, cash portion	24,900		24,900		45,600
Realized gains on closed positions	20,100		20,100		34,800
Rabbi trust
Right To Reclaim Net Cash Collateral, Commodity Derivatives [Abstract]
(Losses) gains related to securities held by the trust	(100)	$ 1,500	(12,100)	$ 18,600
Recurring basis
Assets at Fair Value
Cash and Cash Equivalents	850,344		850,344		613,530
Short-term Marketable Securities	18,314		18,314		21,162
Other Trading Securities	190,962		190,962		203,020
Commodity Derivatives	14,719		14,719		13,522
Total Assets at Fair Value	1,074,339		1,074,339		851,234
Liabilities at Fair Value
Deferred Compensation	60,977		60,977		70,466
Interest Rate Derivatives	17,473		17,473
Total Liabilities at Fair Value	78,450		78,450		70,466
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets at Fair Value
Cash and Cash Equivalents	850,015		850,015		611,111
Short-term Marketable Securities	9,395		9,395		8,790
Other Trading Securities	0		0		0
Commodity Derivatives	12,678		12,678		8,104
Total Assets at Fair Value	872,088		872,088		628,005
Liabilities at Fair Value
Deferred Compensation	0		0		0
Interest Rate Derivatives	0		0
Total Liabilities at Fair Value	0		0		0
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets at Fair Value
Cash and Cash Equivalents	328		328		2,419
Short-term Marketable Securities	8,919		8,919		12,372
Other Trading Securities	190,962		190,962		203,020
Commodity Derivatives	2,042		2,042		5,418
Total Assets at Fair Value	202,251		202,251		223,229
Liabilities at Fair Value
Deferred Compensation	60,977		60,977		70,466
Interest Rate Derivatives	17,473		17,473
Total Liabilities at Fair Value	78,450		78,450		70,466
Recurring basis | Significant Unobservable Inputs (Level 3)
Assets at Fair Value
Cash and Cash Equivalents	0		0		0
Short-term Marketable Securities	0		0		0
Other Trading Securities	0		0		0
Commodity Derivatives	0		0		0
Total Assets at Fair Value	0		0		0
Liabilities at Fair Value
Deferred Compensation	0		0		0
Interest Rate Derivatives	0		0
Total Liabilities at Fair Value	$ 0		$ 0		$ 0

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FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Billions	Jul. 31, 2022	Oct. 31, 2021
Fair Value Disclosures [Abstract]
Fair value of long-term debt, utilizing discounted cash flows (Level 2)	$ 3.0	$ 3.3

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LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021	Jun. 03, 2021	Jun. 11, 2020
Debt Instrument [Line Items]
Unamortized Debt Issuance Costs	$ (20,751)	$ (23,435)
Interest Rate Swap	(17,473)	0
Finance Lease Liabilities	46,723	52,999
Other Financing Arrangements	2,529	2,823
Total	3,303,094	3,323,903
Less: Current Maturities of Long-term Debt	8,807	8,756
Long-term Debt Less Current Maturities	3,294,287	3,315,147
Senior Notes
Debt Instrument [Line Items]
Unamortized Discount on Senior Notes	$ (7,934)	(8,484)
Senior Notes | Senior Unsecured Notes, with Interest at 3.050% Interest Due Semi-annually through June 2051 Maturity Date
Debt Instrument [Line Items]
Interest rate	3.05%		3.05%
Senior Notes	$ 600,000	600,000
Senior Notes | Senior Unsecured Notes, with Interest at 1.800% Interest Due Semi-annually through June 2030 Maturity Date
Debt Instrument [Line Items]
Interest rate	1.80%			1.80%
Senior Notes	$ 1,000,000	1,000,000
Senior Notes | Senior Unsecured Notes, with Interest at 1.700% Interest Due Semi-annually through June 2028 Maturity Date
Debt Instrument [Line Items]
Interest rate	1.70%		1.70%
Senior Notes	$ 750,000	750,000
Senior Notes | Senior Unsecured Notes, with Interest at 0.650% Interest Due Semi-annually through June 2024 Maturity Date
Debt Instrument [Line Items]
Interest rate	0.65%		0.65%
Senior Notes	$ 950,000	$ 950,000

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LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS - Narrative (Details) - USD ($)	Jun. 03, 2021	May 06, 2021	Jun. 11, 2020	Jul. 31, 2022	Jan. 30, 2022	Oct. 31, 2021
Interest Rate Contracts | Fair Value Hedges | Derivatives designated as hedges
Debt Instrument [Line Items]
Total notional amount of hedging					$ 450,000,000
Senior Notes | Senior Unsecured Notes Due June 2030
Debt Instrument [Line Items]
Aggregate principal amount of debt issued			$ 1,000,000,000
Interest rate			1.80%	1.80%
Redemption price, percentage			101.00%
Senior Notes | 2024 Notes
Debt Instrument [Line Items]
Aggregate principal amount of debt issued	$ 950,000,000
Interest rate	0.65%			0.65%
Period to redeem in whole or in part after the issuance date	1 year
Senior Notes | 2028 Notes
Debt Instrument [Line Items]
Aggregate principal amount of debt issued	$ 750,000,000
Interest rate	1.70%			1.70%
Redemption price, percentage	101.00%
Senior Notes | 2051 Notes
Debt Instrument [Line Items]
Aggregate principal amount of debt issued	$ 600,000,000
Interest rate	3.05%			3.05%
Redemption price, percentage	101.00%
Credit Facility | Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity under credit facility		$ 750,000,000
Additional uncommitted option under credit facility		$ 375,000,000
Amount outstanding under credit facility				$ 0		$ 0
Credit Facility | Unsecured Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Variable fee percentage for availability of line of credit		0.05%
Credit Facility | Unsecured Revolving Credit Facility | Minimum | Base Rate
Debt Instrument [Line Items]
Margin over interest rate percentage		0.00%
Credit Facility | Unsecured Revolving Credit Facility | Minimum | Eurocurrency rate
Debt Instrument [Line Items]
Margin over interest rate percentage		0.575%
Credit Facility | Unsecured Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Variable fee percentage for availability of line of credit		0.10%
Credit Facility | Unsecured Revolving Credit Facility | Maximum | Base Rate
Debt Instrument [Line Items]
Margin over interest rate percentage		0.15%
Credit Facility | Unsecured Revolving Credit Facility | Maximum | Eurocurrency rate
Debt Instrument [Line Items]
Margin over interest rate percentage		1.15%

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INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Income Tax Disclosure [Abstract]
Effective tax rate	24.50%	13.30%	21.80%	18.90%
Unrecognized tax benefits that would impact effective tax rate	$ 19.5	$ 24.5	$ 19.5	$ 24.5
Accrued interest and penalties associated with unrecognized tax benefits	$ 4.8	$ 7.5	$ 4.8	$ 7.5

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EARNINGS PER SHARE DATA - Shares Used as Denominator (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Earnings Per Share [Abstract]
Basic Weighted-Average Shares Outstanding (in shares)	546,077	541,746	544,486	540,618
Dilutive Potential Common Shares (in shares)	4,090	6,326	4,891	7,066
Diluted Weighted-Average Shares Outstanding (in shares)	550,167	548,072	549,377	547,684
Antidilutive Potential Common Shares (in shares)	1,787	2,350	2,026	2,305

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SEGMENT REPORTING - Narrative (Details)	9 Months Ended
	Jul. 31, 2022 segment
Segment Reporting [Abstract]
Number of reportable business segments	4

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SEGMENT REPORTING - Sales and Operating Profits for Each Reportable and Reconciliation to Earnings Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Operating profit and other financial information
Net Sales	$ 3,034,414	$ 2,863,670	$ 9,175,331	$ 7,931,438
Segment Profit	291,040	207,484	945,443	764,917
Net Unallocated Expense	26,429	63,715	80,799	95,166
Noncontrolling Interest	(89)	157	112	290
Earnings Before Income Taxes	289,836	204,238	920,608	773,940
Grocery Products
Operating profit and other financial information
Net Sales	869,802	698,584	2,598,964	1,904,415
Refrigerated Foods
Operating profit and other financial information
Net Sales	1,660,257	1,624,641	4,932,070	4,445,099
Jennie-O Turkey Store
Operating profit and other financial information
Net Sales	323,796	350,897	1,115,554	1,035,397
International & Other
Operating profit and other financial information
Net Sales	180,559	189,548	528,743	546,528
Intersegment Elimination
Operating profit and other financial information
Net Sales	71,449	38,217	186,080	109,242
Intersegment Elimination | Grocery Products
Operating profit and other financial information
Net Sales	0	0	0	0
Intersegment Elimination | Refrigerated Foods
Operating profit and other financial information
Net Sales	4,645	7,636	18,825	19,527
Intersegment Elimination | Jennie-O Turkey Store
Operating profit and other financial information
Net Sales	66,803	30,581	167,256	89,715
Intersegment Elimination | International & Other
Operating profit and other financial information
Net Sales	0	0	0	0
Operating Segments
Operating profit and other financial information
Segment Profit	316,354	267,796	1,001,295	868,817
Operating Segments | Grocery Products
Operating profit and other financial information
Net Sales	869,802	698,584	2,598,964	1,904,415
Segment Profit	76,478	80,791	265,263	270,963
Operating Segments | Refrigerated Foods
Operating profit and other financial information
Net Sales	1,664,902	1,632,277	4,950,895	4,464,626
Segment Profit	177,109	153,216	517,993	467,740
Operating Segments | Jennie-O Turkey Store
Operating profit and other financial information
Net Sales	390,599	381,478	1,282,810	1,125,112
Segment Profit	37,433	5,874	142,969	45,514
Operating Segments | International & Other
Operating profit and other financial information
Net Sales	180,559	189,548	528,743	546,528
Segment Profit	$ 25,334	$ 27,915	$ 75,071	$ 84,600

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SEGMENT REPORTING - Revenue Contributed by Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 25, 2021	Jul. 31, 2022	Jul. 25, 2021
Revenue from External Customer [Line Items]
Total	$ 3,034,414	$ 2,863,670	$ 9,175,331	$ 7,931,438
Perishable
Revenue from External Customer [Line Items]
Total	1,813,513	1,610,378	5,369,888	4,440,347
Shelf-stable
Revenue from External Customer [Line Items]
Total	649,853	670,446	1,914,496	1,761,883
Poultry
Revenue from External Customer [Line Items]
Total	470,207	500,121	1,572,342	1,468,957
Miscellaneous
Revenue from External Customer [Line Items]
Total	100,841	82,726	318,606	260,251
U.S. Retail
Revenue from External Customer [Line Items]
Total	1,866,971	1,786,871	5,771,835	5,142,389
U.S. Foodservice
Revenue from External Customer [Line Items]
Total	971,201	851,897	2,816,733	2,162,481
International
Revenue from External Customer [Line Items]
Total	$ 196,242	$ 224,902	$ 586,763	$ 626,568