Prepared by MERRILL CORPORATION www.edgaradvantage.com

		2000		1999
Net Sales		$	3,675,132,000		$	3,357,757,000
Net Earnings		$	170,217,000		$	163,438,000
Per Share of Common Stock (Diluted)		$	1.28		$	1.11	*
	Percent of Sales			4.63	%		4.87	%
Dividends to Shareholders		$	49,028,000		$	47,986,000
	Per Share of Common Stock		$	.35		$	.33	*
Capital Additions		$	100,125,000		$	79,121,000
Depreciation and Amortization		$	65,886,000		$	64,656,000
Working Capital		$	368,484,000		$	414,736,000
Shareholders' investment		$	873,877,000		$	841,142,000

Hormel Foods Corporation is a multinational manufacturer and marketer of consumer-branded meat and food products, many of which are among the best known and trusted in the food industry. The company enjoys a strong reputation among consumers, retail grocers, foodservice and industrial customers for products highly regarded for quality, taste, nutrition, convenience and value. Hormel Foods Corporation is composed of more than 12,200 employees, including subsidiaries. There are approximately 11,200 record shareholders of the company's stock and another 12,500 shareholders whose shares are held in street name by brokerage firms and financial institutions.

Trademarks Throughout this Annual Report to Shareholders, references in italic represent valuable trademarks owned or licensed by Hormel Foods Corporation or its subsidiaries.

Internet Sites Hormel Foods Corporation has a presence on the Internet through a number of sites, including:

www.hormel.com
www.spam.com
www.jennieo.com
www.hormelpepperoni.com
www.hormel-spd.com
www.hometheaterlabs.om
www.worldfood.com
www.gmbond.com

Management's Discussion and Analysis of Financial Condition and Results of Operations

Fiscal Years 2000 and 1999: Fiscal year 2000 was a particularly strong year for Hormel Foods. Company marketing efforts, combined with strong consumer demand, resulted in record sales and earnings. With all major operating units experiencing record sales levels, company facilities were able to operate at optimum efficiencies. Adequate supplies of live hogs supported the sales increases.

Although cash markets for hog purchases were higher in 2000 than a year earlier, existing hog procurement contracts resulted in a cost of hogs less than the quoted spot cash market. It is anticipated that the company's hog contracts will continue to provide hogs at prices below the quoted markets into the first quarter of 2001.

The company continues to expand its line of consumer-branded products through both new product introductions and line extensions. Increased sales of branded products helped to reduce exposure to fluctuating commodity prices. The company made considerable progress in 2000 with the continued expansion of consumer-branded pork products further reducing the effect of fluctuating commodity prices on the company's principal raw materials.

Net earnings for the year increased 4.1 percent to $170,217 from $163,438 in 1999. Results for 1999 include an after-tax gain of $3,808 from the sale of land by Campofrio Alimentacion, S.A., Madrid, Spain, a company in which Hormel Foods has an equity ownership interest. Excluding the one-time gain, net earnings for 2000 increased by $10,587, or 6.6 percent. Net sales in 2000 increased 9.5 percent to $3,675,132 from $3,357,757 last year. Tonnage for the year increased 1.0 percent compared to 1999.

Net earnings for the fourth quarter of 2000 were $60,979, an increase of 2.2 percent over earnings of $59,674 for the same period last year. Sales for the quarter increased 5.8 percent to $1,006,181 compared to $950,839 in 1999. Tonnage increased 0.2 percent for the quarter compared to last year.

The company's core branded business continued to be the major contributor to earnings as all core business groups and subsidiaries contributed to the record performance. Increased market share and distribution by some of the company's best-known brands, as well as increased activity in new market introductions, drove the record sales and earnings performance.

Margins for the Refrigerated Foods Group during the fourth quarter were impacted by live hog prices that were 25.4 percent higher than the same period a year ago. As noted earlier, the company's hog procurement contracts with suppliers softened the impact of the higher live hog prices. The company processed 1.0 percent more hogs during the quarter compared to 1999.

Sales by the Foodservice Division increased 25.8 and 30.3 percent for the quarter and year, respectively, when compared to last year. Increases were realized in all 15 categories of branded products. The largest category gain occurred in premium pork, which includes Always Tender pork, which was up 88.0 percent over the same quarter a year ago.

Total Meat Products Division tonnage decreased 2.6 percent for the fourth quarter and increased 3.6 percent for the year compared to last year. Branded tonnage increased 36.6 percent for the year compared to 1999. Record market share was accomplished in fiscal 2000 for pepperoni and bacon. The fully cooked entree lines continue to perform strongly. Four new entrees were introduced in the fourth quarter.

Sales by the Grocery Products Division were down 6.5 percent for the quarter but finished on plan with an increase of just under 1.0 percent for the year. The 2000 plan had anticipated a decrease for the quarter as a result of an extremely strong fourth quarter in 1999 that included Y2K stocking. The

decrease in sales, on a comparative basis, is expected to continue into the first quarter of 2001 but should be offset by favorable sales comparisons expected to be attained in the final three quarters of 2001.

Jennie-O sales dollars increased 8.8 percent for the quarter and 3.4 percent for the year compared to 1999 primarily as a result of an improved sales mix. Tonnage for the quarter increased by 5.9 percent compared to last year. Tonnage was flat for the year primarily as a result of a decision earlier in the year to convert traditional summer cut-up breast and commodity part sales into whole birds. As anticipated, the whole bird market remained strong this fall, particularly on the hen side, and allowed Jennie-O to profit from this strategy.

Other value-added segments of Jennie-O's business continued to grow with foodservice again registering double-digit sales increases for the quarter and year. The most recent 12-week AC Nielsen scanner data shows increases in sales volume with an increase in market share and distribution for most of Jennie-O's measured retail brands. Jennie-O continues to be aggressive in new product development. The company will roll out four new foodservice products in the first quarter of 2001 which follows the successful launch of four new retail items in the fourth quarter of 2000.

Hormel Foods International experienced significant tonnage growth as many of the company's domestic brands continued to gain increased recognition and distribution in world markets. China, Canada and the Asia-Pacific region, including Japan, Micronesia and South Korea, all experienced double-digit volume growth. Sales of Stagg chili and SPAM luncheon meat, including the introduction of SPAM hot & spicy flavored with TABASCO brand pepper sauce and SPAM oven roasted turkey, were significant contributors to growth in the international market.

Selling and delivery expenses for the fourth quarter and year were $99,049 and $379,326, respectively, compared to $95,683 and $356,553 last year. As a percentage of sales, selling and delivery expenses were 9.8 and 10.3 percent for the quarter and year compared to 10.1 and 10.6 percent in 1999.

Marketing expenses decreased to $69,180 for the quarter and $292,808 for the year from $82,774 and $307,376 for the same periods last year. As a percentage of sales, marketing expenses decreased to 6.9 and 8.0 percent for the quarter and year, respectively, compared to 8.7 and 9.2 percent in 1999. Marketing expenses were down in the fourth quarter due to program spending based on tonnage of specific product lines.

Administrative and general expenses were $15,848 and $65,517 for the quarter and year, respectively, compared to $20,381 and $73,196 last year. As a percentage of sales, administrative and general expenses for the quarter and year were 1.6 and 1.8 percent compared to 2.1 and 2.2 percent for the same periods in 1999.

Research and development continues to be an integral part of the company's strategy to extend existing brands and expand its offering of new consumer-branded items. Research and development expenses for the quarter and year were $2,520 and $9,592, respectively, compared to $2,457 and $9,566 for the same periods last year. Research and development expenses of Hormel Foods LLC, which has responsibility for the company's intangible assets, are included in administrative and general expenses.

The company's effective tax rate for the quarter and year was 34.9 and 35.6 percent compared to 35.1 and 35.0 percent in 1999. The reduction in the rate for the fourth quarter was the result of favorable settlements of various state audits.

Fiscal Years 1999 and 1998: During 1999, the company experienced record sales levels across all major operating units. Abundant supplies of live hogs at reasonable costs supported the sales increases.

Although benefiting from relatively low markets for cash hog purchases, the company continued to pay substantially more than quoted markets for hogs purchased under procurement contracts. The

contract costs are fully reflected in the company's financial results. Similar market conditions were experienced in 1998.

Net earnings for the year increased 17.3 percent to $163,438 from $139,291 in 1998. Results for 1999 include an after-tax gain of $3,808 from the sale of land by Campofrio Alimentacion, S.A., Madrid, Spain, a company in which Hormel Foods has an equity ownership interest. Results for 1998 include an after-tax gain of $17,402 from the sale of the company's Davenport, Iowa, gelatin plant to Goodman Fielder Limited, Sydney, Australia. Excluding these one-time gains, company net earnings from continuing operations in 1999 of $159,630 exceeded 1998 earnings by $37,741, or 31.0 percent. Net sales in 1999 increased 3.0 percent to $3,357,757 from $3,261,045 the previous year. Tonnage for the year increased 7.1 percent compared to 1998. Fiscal 1999 was a 52-week year compared to a 53-week year in 1998.

Net earnings for the fourth quarter of 1999 were $59,674, an increase of 32.2 percent over earnings of $45,152 for the same period in 1998. Sales for the quarter were $950,839, a 4.3 percent increase from a year earlier. Tonnage increased 1.4 percent for the quarter compared to 1998.

Virtually all divisions and subsidiaries contributed to the record performance. All major divisions experienced volume growth which, in many cases, exceeded category growth. Increased market share and distribution by some of the company's best-known brands resulted in record sales volume and profits for the Foodservice, Meat Products and Prepared Foods Groups.

Jennie-O also had its best year ever with record sales, tonnage and profits. Generally favorable market conditions, including both feed costs and commodity turkey prices, contributed to the results. Jennie-O experienced increased brand distribution for a number of their best-known branded products.

Hormel Foods International experienced record sales and export tonnage for the year while earnings improved over 1998. Sales of Jennie-O whole turkeys, Stagg chili and SPAM luncheon meat were significant contributors to growth in the international market.

Selling and delivery expenses for the fourth quarter and year were $95,683 and $356,553, respectively, compared to $102,028 and $328,050 in 1998. As a percentage of sales, selling and delivery expenses were 10.1 and 10.6 percent for the quarter and year compared to 11.2 and 10.1 percent the previous year.

Marketing expenses increased to $82,774 for the quarter and $307,376 for the year compared to $77,232 and $276,826 in 1998. As a percentage of sales, marketing expenses in 1999 compared to 1998 increased to 8.7 from 8.5 percent for the quarter and to 9.2 from 8.5 percent for the year.

Administrative and general expenses were $20,381 and $73,196 for the quarter and year, respectively, compared to $10,813 and $72,331 in 1998. As a percentage of sales, administrative and general expenses for the quarter and year were 2.1 and 2.2 percent compared to 1.2 and 2.2 percent for the same periods last year.

Research and development expenses for the quarter and year were $2,457 and $9,566 compared to $2,412 and $9,037 for the same periods in 1998.

The company's effective tax rate declined to 35.0 percent from 35.9 percent in 1998. The reduction is primarily due to a decrease in state and local taxes and foreign equity earnings which are net of tax.

Liquidity: The company continues to have an exceptionally strong balance sheet. Cash, cash equivalents and short-term marketable securities were $106,610 at the end of 2000. Long-term debt declined $38,795 to $145,928, reflecting payments made by the company in fiscal 2000. On October 31, 2000, the company entered into a $425,000 short-term credit facility which replaced an existing credit line of $20,000. The credit facility is for general corporate purposes and may be used for acquisitions. The strong balance sheet and available credit facility provide the company with the ability to take advantage of expansion or acquisition opportunities that may arise.

During 2000, cash provided by operating activities was $151,304 as compared to $239,536 last year. The decrease in cash provided by operating activities was primarily due to changes in working capital items which were in the normal course of business.

Cash used for investing activities in 2000 decreased to $74,456 from $144,132 in 1999. The decrease in cash used for investing activities reflects a lower amount of securities held for investment as well as normal purchases of property, plant and equipment. Cash used in 1999 included the equity investment in the Purefoods-Hormel Company in the Philippines.

Cash used for financing activities increased to $164,512 from $111,028 in 1999 primarily due to net payments on long-term debt. Cash dividend payments were up slightly from 1999, and the company continued to repurchase Common Stock in the market. During the year, the company repurchased 4,307,100 shares of its Common Stock at an average price per share of $17.49 under a repurchase plan approved in September 1998. During the fourth quarter, 900,800 shares were repurchased under the plan at an average price per share of $15.98.

		2000		1999
Liquidity Ratios
Current ratio		2.1		2.1
Receivables turnover		12.8		13.7
Days sales in receivables		30.6		28.9
Inventory turnover		9.7		9.3
Days sales in inventory		38.4		41.5
Leverage Ratio
	Long-term debt to equity (including current maturities)	21.1	%	26.9	%
Operating Ratios
	Pretax profit to net worth	30.8	%	30.4	%
	Pretax profit to total assets	15.9	%	15.5	%

Market Risk: The principal market risk affecting the company is the exposure to changes in interest rates on the company's fixed-rate, long-term debt. Market risk for fixed-rate, long-term debt is estimated as the potential increase in fair value, resulting from a hypothetical 10.0 percent decrease in interest rates, and amounts to approximately $1,604. The fair values of the company's long-term debt were estimated using discounted future cash flows based on the company's incremental borrowing rates for similar types of borrowing arrangements.

While the company does have international operations and operates in international markets, it considers its market risk in such activities to be immaterial.

Forward-Looking Statements: The company and its representatives may from time to time make written or oral statements with respect to annual or long-term goals and expectations of the company. These statements include, but are not limited to, the company's filings with the Securities and Exchange Commission and in its reports to shareholders. The company cautions readers not to place undue reliance on forward-looking statements which represent current views as of the date made.

Exhibit 99 to the Annual Report on Form 10-K for the year ended October 30, 1999, provides the full text of the company's cautionary statement relevant to forward-looking statements and information for the purpose of "Safe Harbor" provisions of the Private Securities Litigations Reform Act of 1995.

The accompanying financial statements were prepared by the management of Hormel Foods Corporation which is responsible for their integrity and objectivity. These statements have been prepared in accordance with generally accepted accounting principles appropriate in the circumstances and, as such, include amounts that are based on our best estimates and judgments.

Hormel Foods Corporation has developed a system of internal controls designed to assure that the records reflect the transactions of the company and that the established policies and procedures are adhered to. This system is augmented by well-communicated written policies and procedures, a strong program of internal audit and well-qualified personnel.

These financial statements have been audited by Ernst & Young LLP, independent auditors, and their report appears on page 32. Their audit is conducted in accordance with generally accepted auditing standards and includes a review of the company's accounting and financial controls and tests of transactions.

The Audit Committee of the Board of Directors, composed solely of outside directors, meets periodically with the independent auditors, management and the internal auditors to assure that each is carrying out its responsibilities. Both Ernst & Young LLP and our internal auditors have full and free access to the Audit Committee, with or without the presence of management, to discuss the results of their audit work and their opinions on the adequacy of internal controls and the quality of financial reporting.

Common Stock Data The high and low closing price of the company's common stock and the dividends per share declared for each fiscal quarter of 2000 and 1999, respectively, are shown at right:

All figures reflect two-for-one stock split approved by shareholders at the Annual Meeting on January 25, 2000.

Business Overview: Hormel Foods is engaged in a single business segment designated as "meat and food processing." As a federally inspected food processor, Hormel Foods is engaged in the processing of meat and poultry products, production of prepared foods and the marketing of those products to food wholesalers, retailers and foodservice distributors in the United States. The principal raw materials for the company's products are pork and turkey. The company's earnings are influenced by the cyclical nature of these raw material costs.

Principles of Consolidation: The consolidated financial statements include the accounts of Hormel Foods Corporation and all of its majority-owned subsidiaries after elimination of all significant intercompany accounts, transactions and profits. Certain reclassifications of previously reported amounts have been made to conform with the current year presentation. The reclassifications had no impact on the net earnings as previously reported.

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Fiscal Year: The company's fiscal year ends on the last Saturday in October. Fiscal years 2000 and 1999 consisted of 52 weeks and fiscal year 1998 consisted of 53 weeks.

Inventories: Inventories are stated at the lower of cost or market. Livestock and the materials portion of products are valued on the first-in, first-out method with the exception of the materials portion of turkey products which is valued on the last-in, first-out method. Substantially all inventoriable expenses, packages and supplies are valued by the last-in, first-out method.

Property, Plant and Equipment: Property, plant and equipment are stated at cost. The company generally uses the straight-line method in computing depreciation. The annual provisions for depreciation have been computed principally in accordance with the following ranges of asset lives: buildings 20 to 40 years, machinery and equipment 5 to 10 years.

Software development and implementation costs are expensed until the company has determined that the software will result in probable future economic benefits, and management has committed to funding the project. Thereafter, all direct, external implementation costs and purchased software costs are capitalized and amortized using the straight-line method over the remaining estimated useful lives, not exceeding five years.

Intangibles: Goodwill and other intangibles are recorded at their estimated fair values at date of acquisition and are amortized on a straight-line basis over periods ranging up to 40 years. Accumulated amortization at October 28, 2000, and October 30, 1999, was $48.0 million and $42.1 million, respectively.

Impairment of Long-lived Assets: The company reviews the long-lived assets, including identifiable intangibles and associated goodwill, for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the assets and any related goodwill, the carrying value is reduced to the estimated fair value as measured by the discounted cash flows.

Foreign Currency Translation: Assets and liabilities denominated in foreign currency are translated at the current exchange rate as of the balance sheet date, and income statement amounts are translated at the average monthly exchange rate. Translation adjustments resulting from fluctuations in exchange rates are recorded as a component of "Accumulated Other Comprehensive Loss" in shareholders' investment. Gains and losses from foreign currency transactions are not material.

Equity Method Investments: The company has a number of investments in joint ventures and other entities where its voting interests are in excess of 20 percent but not greater than 50 percent. The company accounts for such investments under the equity method of accounting, and its underlying share of each investee's equity is reported in the consolidated balance sheet as part of investments in affiliates.

The company's only material equity investments are in the common stock of a Spanish company, Campofrio Alimentacion, S.A. (Campofrio), and a joint venture in the Purefoods-Hormel Company in the Philippines. As of October 28, 2000, the company held an 18.2 percent ownership interest in Campofrio. The company intends and has the ability to regain an ownership interest over 20 percent. The fair value of such publicly traded securities was $75.3 million at October 28, 2000. The company purchased a 40.0 percent interest in the Purefoods-Hormel Company in 1999 for $22.2 million. The company recorded a $3.8 million gain, or $.03 a share, for the sale of land by Campofrio in the first quarter of 1999.

Divestitures and Acquisitions: The company recorded a $28.4 million gain ($17.4 million after tax, or $.12 per share) in the first quarter of 1998 related to the sale of its Davenport (Iowa) gelatin/specialized proteins plant.

Revenue Recognition: The company follows a policy of recognizing sales at the time of product shipment.

Advertising Expenses: Advertising costs are expensed when incurred. Advertising expenses include all media advertising but exclude the costs associated with coupons, samples and market research. Advertising costs for fiscal years 2000, 1999 and 1998 were $260.1 million, $273.2 million and $246.1 million, respectively.

Research and Development Expenses: Research and development expenses incurred for fiscal years 2000, 1999 and 1998 were $9.6 million, $9.6 million and $9.0 million, respectively.

Income Taxes: The company records income taxes in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

Employee Stock Options: The company uses the intrinsic value method prescribed by Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees" and related interpretations in accounting for employee stock options. Under the intrinsic value method, compensation expense is recognized only to the extent the market price of the common stock exceeds the exercise price of the stock option at the date of the grant.

Earnings Per Share: The following table presents information necessary to calculate basic and diluted earnings per common share and common share equivalents:

	2000		1999		1998
	(In thousands, except per share data)
Net earnings	$	170,217	$	163,438	$	139,291

Weighted-average shares outstanding for basic earnings per share		140,532		145,794		149,486
Dilutive effect of stock options		991		1,216		920

Adjusted weighted-average shares outstanding and assumed conversions for diluted earnings per share		141,523		147,010		150,406

Basic earnings per share	$	1.21	$	1.12	$	0.93

Diluted earnings per share	$	1.20	$	1.11	$	0.93

On November 22, 1999, the Hormel Foods Corporation Board of Directors authorized a two-for-one split of the company's common stock that was approved by the shareholders at the Annual Meeting on January 25, 2000. The calculation of earnings per share in the above table and elsewhere in this Annual Report reflects the impact from this split.

Accounting Changes and Recent Accounting Pronouncements: The Financial Accounting Standards Board has issued Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities"; SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities—Deferral of the Effective Date of SFAS No. 133"; and SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities—an amendment of SFAS No. 133." These statements outline the accounting treatment for all derivative activity. The company is required to adopt SFAS No. 133 in the first quarter of fiscal 2001 and does not expect adoption to have a material effect on its results of operations or financial position.

The company considers all investments with an original maturity of three months or less on their acquisition date to be cash equivalents. The company classifies investments with an original maturity of more than three months on their acquisition date as short-term marketable securities. The company's cash and cash equivalents and short-term marketable securities at October 28, 2000, and October 30, 1999, consisted of the following (cost approximates fair value):

		October 28, 2000				October 30, 1999
		Cash and Cash Equivalents		Short-term Marketable Securities		Cash and Cash Equivalents		Short-term Marketable Securities
		(In thousands)
Held-to-maturity securities:
	Commercial paper			$	5,964	$	25,339	$	54,256
	Municipal securities	$	5,521				38,151		996
	Preferred securities						33,642		5,000
	Taxable securities						3,702
Cash			95,125				87,476

Total		$	100,646	$	5,964	$	188,310	$	60,252

	October 28, 2000			October 30, 1999
	(In thousands)
Finished products	$	174,032		$	158,824
Raw materials and work-in-process		76,432			76,639
Materials and supplies		61,480			62,143
LIFO reserve		(30,540	)		(27,367	)

Total	$	281,404		$	270,239

Inventoriable expenses, packages and supplies and turkey products amounting to approximately $87.6 million at October 28, 2000, and $92.7 million at October 30, 1999, are stated at cost determined by the last-in, first-out method and are $30.5 million and $27.4 million lower in the respective years than such inventories determined under the first-in, first-out method.

	October 28, 2000		October 30, 1999
	(In thousands)
Industrial revenue bonds with variable interest rates, due 2005	$	4,700	$	4,700
Promissory notes, principal and interest due annually through 2007, interest at 7.23% and 8.9%, secured by limited partnership interests in affordable housing		2,872		5,789
Medium-term unsecured notes, $35,000 maturing in 2002 and $75,000 maturing in 2006, with interest at 7.16% and 7.35%, respectively, principal and interest due annually through 2006		87,619		110,000
Medium-term unsecured note, denominated in euros, with variable interest rate, principal and interest due semi-annually through 2004		40,620		52,200
Declining balance credit facility, denominated in euros, with variable interest rate, principal due annually through 2004		20,312		22,647
Medium-term secured notes with variable rates, principal and interest due semi-annually through 2006, secured by various equipment		11,377		14,096
Variable rate—revolving credit agreements		13,300		14,150
Other		3,567		2,355

		184,367		225,937
Less current maturities		38,439		41,214

Total	$	145,928	$	184,723

The company has various lines of credit which have a maximum available commitment of $37.3 million. As of October 28, 2000, the company has unused lines of credit of $24.0 million which bear interest at variable rates below prime. A fixed fee is paid for the availability of credit lines.

Aggregate annual maturities of long-term debt for the five fiscal years after October 28, 2000, are as follows:

	(In thousands)
2001	$	38,439
2002		41,990
2003		31,684
2004		28,695
2005		16,758

Total interest paid during fiscal 2000, 1999 and 1998 was $16.5 million, $14.8 million and $13.6 million, respectively. Based on borrowing rates currently available to the company for long-term financing with similar terms and average maturities, the fair value of long-term debt, including current maturities, utilizing discounted cash flows is $185 million.

On October 31, 2000, the company entered into a $425.0 million line of credit which replaced an existing credit line of $20.0 million.

The company has several noncontributory defined benefit plans and defined contribution plans covering most employees. Total costs associated with the company's defined contribution benefit plans in 2000, 1999 and 1998 were $11.5 million, $10.9 million and $9.9 million, respectively. Benefits for defined benefit pension plans covering hourly employees are provided based on stated amounts for each year of service while plan benefits covering salaried employees are based on final average compensation. The company's funding policy is to make annual contributions of not less than the minimum required by applicable regulations.

The company provides medical and life insurance benefits to certain retired employees. Eligible employees who retired prior to January 1, 1987, remain on the medical plan in effect when they retired. The medical plan for eligible employees who retired after January 1, 1987, is automatically modified to incorporate plan benefit and plan provision changes whenever they are made to the active employee plan. Employees hired after January 1, 1990, are eligible for postretirement medical coverage but must pay the full cost of the coverage.

The following is a reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets:

	Pension Benefits						Other Benefits
	2000			1999			2000			1999
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	485,937		$	492,614		$	266,676		$	274,205
Service cost		10,964			10,921			2,229			2,920
Interest cost		35,455			33,298			19,284			18,555
Actuarial loss (gain)		11,102			(17,712	)		15,831			(10,137	)
Benefits paid		(42,959	)		(33,184	)		(22,309	)		(18,867	)

Benefit obligation at end of year		500,499			485,937			281,711			266,676

Change in plan assets:
Fair value of plan assets at beginning of year		571,241			566,216
Actual return on plan assets		14,530			35,684
Employer contributions		11,970			2,525
Benefits paid		(42,959	)		(33,184	)

Fair value of plan assets at end of year		554,782			571,241

Funded status		54,283			85,304			(281,711	)		(266,676	)
Unrecognized net transition liability		2,144			2,947
Unrecognized actuarial (gain) loss		(16,307	)		(66,406	)		26,641			10,866
Unrecognized prior service cost		6,550			7,990			(2,382	)		(2,734	)
Benefit payments subsequent to measurement date		256			193			5,334			6,308

Net amount recognized	$	46,926		$	30,028		$	(252,118	)	$	(252,236	)

As of the 2000 valuation date, plan assets included common stock of the company having a market value of $57.7 million. Dividends paid during the year on shares held by the plan were $1.2 million.

Amounts recognized in the consolidated balance sheets as of October 28, 2000, and October 30, 1999, were as follows:

	Pension Benefits						Other Benefits
	2000			1999			2000			1999
	(In thousands)
Prepaid benefit cost	$	80,265		$	68,662
Accrued benefit liability		(50,981	)		(44,263	)	$	(257,452	)	$	(258,544	)
Intangible asset		3,170			3,891
Accumulated other comprehensive loss		14,216			1,545
Benefit payments subsequent to measurement date		256			193			5,334			6,308

Net amount recognized	$	46,926		$	30,028		$	(252,118	)	$	(252,236	)

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligation in excess of plan assets were $55.0 million,

$50.7 million and $0, respectively, as of October 28, 2000, and $49.5 million, $44.3 million and $0, respectively, as of October 30, 1999.

	2000		1999		1998
Discount rate	7.50	%	7.50	%	7.00	%
Rate of future compensation increase	5.00	%	5.00	%	5.00	%
Expected long-term return on plan assets	9.50	%	9.50	%	9.50	%

For measurement purposes, a 5.9% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2001. The rate was assumed to decrease to 5.5% for 2004 and remain at that level thereafter.

	Pension Benefits
	2000			1999			1998
	(In thousands)
Service cost	$	10,964		$	10,921		$	9,567
Interest cost		35,455			33,298			32,628
Expected return on plan assets		(52,724	)		(52,293	)		(50,137	)
Amortization of transition obligation		803			803			803
Amortization of prior service cost		1,440			1,153			1,153
Recognized actuarial (gain) loss		(803	)		(878	)		(1,967	)

Net periodic benefit cost	$	(4,865	)	$	(6,996	)	$	(7,953	)

	Other Benefits
	2000			1999			1998
	(In thousands)
Service cost	$	2,229		$	2,920		$	3,438
Interest cost		19,284			18,555			18,384
Amortization of prior service cost		(352	)		(351	)		(351	)
Recognized actuarial (gain) loss		56			1,446			1,362

Net periodic benefit cost	$	21,217		$	22,570		$	22,833

Assumed health care cost trend rates have a significant impact on the amounts reported for the health care plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	1-Percentage-Point
	Increase		Decrease
	(In thousands)
Effect on total of service and interest cost components	$	797		$	(707	)
Effect on the postretirement benefit obligation		26,971			(15,362	)

		2000		1999			1998
		(In thousands)
Current:
	U.S. Federal	$	78,384	$	80,621		$	62,823
	State		8,226		9,098			10,049
	Foreign		394		154			653

Total current			87,004		89,873			73,525

Deferred:
	U.S. Federal		6,464		(1,657	)		4,080
	State		696		(181	)		440

Total deferred			7,160		(1,838	)		4,520

Total provision for income taxes		$	94,164	$	88,035		$	78,045

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The company believes that, based upon its lengthy and consistent history of profitable operations, it is probable that the net deferred tax assets of $70.6 million will be realized on future tax returns, primarily from the generation of future taxable income. Significant components of the deferred income tax liabilities and assets were as follows:

		October 28, 2000			October 30, 1999
		(In thousands)
Deferred tax liabilities:
	Tax over book depreciation	$	(32,844	)	$	(31,961	)
	Prepaid pension		(31,119	)		(26,620	)
	Other, net		(19,095	)		(19,690	)
Deferred tax assets:
	Vacation accrual		5,009			4,467
	Insurance accruals		5,403			6,107
	Deferred compensation		10,252			7,834
	Postretirement benefits		97,746			97,792
	Pension accrual		12,953			14,999
	Other, net		22,338			16,649

Net deferred tax assets		$	70,643		$	69,577

Reconciliation of the statutory federal income tax rate to the company's effective tax rate is as follows:

	2000		1999		1998
U.S. statutory rate	35.0	%	35.0	%	35.0	%
State taxes on income, net of federal tax benefit	2.2		2.3		3.1
All other, net	(1.6	)	(2.3	)	(2.2	)

Effective tax rate	35.6	%	35.0	%	35.9	%

Total income taxes paid during fiscal 2000, 1999 and 1998 were $98.1 million, $76.4 million and $76.5 million, respectively.

In order to ensure a steady supply of hogs and turkeys and to keep the cost of products stable, the company has entered into contracts with producers for the purchase of hogs and turkeys at formula-based prices over periods of up to 15 years. Under these contracts, the company is committed at October 28, 2000, to purchase hogs and turkeys, assuming current price levels, as follows:

Estimated purchases under these contracts for fiscal 2000, 1999 and 1998 were $815.9 million, $582.1 million and $514.4 million, respectively.

The company has noncancelable operating lease commitments on facilities and equipment at October 28, 2000, as follows:

The company has commitments to expend approximately $64.1 million to complete construction in progress at various locations at October 28, 2000. The company has also pledged $28.9 million of securities as collateral guaranteeing loans at October 28, 2000.

The company is involved on an ongoing basis in litigation arising in the ordinary course of business. In the opinion of management, the outcome of litigation currently pending will not materially affect the company's results of operations, financial condition or liquidity.

The company has stock option plans for employees and nonemployee directors. The company's policy is to grant options with the exercise price equal to the market price of the common stock on the date of grant. The company follows APB Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations in accounting for its employee stock options. Under APB Opinion No. 25, when the exercisable price of employee stock options equals the underlying stock on the date of grant, no compensation expense is recorded. Options are exercisable upon grant and expire at various dates ranging from fiscal 2001 to 2010.

	Shares		Weighted-average Option Price
	(In thousands, except per share data)
Balance October 25, 1997	5,092		$	11.40
Granted	826			14.69
Exercised	(373	)		10.48

Balance October 31, 1998	5,545			11.95
Granted	916			15.97
Exercised	(393	)		10.93
Forfeitures	(18	)		12.73

Balance October 30, 1999	6,050			12.62
Granted	849			19.27
Exercised	(271	)		10.75
Forfeitures	(2	)		15.91

Balance October 28, 2000	6,626		$	13.55

Pro forma information regarding net income and earnings per share is required by SFAS No. 123, "Accounting for Stock-Based Compensation," assuming the company accounted for its employee stock options using the fair value method. The fair value of options was estimated at the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions for 2000, 1999 and 1998, respectively; risk free interest rate of 5.8%, 6.3% and 4.5%; a dividend yield of 2.4%, 1.8% and 2.0%; expected volatility of 24.4%, 23.6% and 24.3%; and an expected option life of seven years. The weighted-average fair value of options granted in fiscal 2000, 1999 and 1998 was $5.56, $5.13 and $4.04, respectively. Exercise prices ranged from $10.25 to $20.31 with a remaining average contractual life of six years at October 28, 2000. Pro forma net earnings and diluted earnings per share are as follows:

The number of shares available for future grants was 8,151,000, 138,244 and 1,279,454 at October 28, 2000, October 30, 1999, and October 31, 1998, respectively.

The following tabulations reflect the unaudited quarterly results of operations for the years ended October 28, 2000, and October 30, 1999:

	Net Sales		Gross Profit		Net Earnings		Diluted Earnings Per Share
	(In thousands, except per share data)
2000
First quarter	$	903,913	$	263,081	$	43,848	$	0.30
Second quarter		879,023		240,114		36,254		0.26
Third quarter		886,015		219,386		29,136		0.21
Fourth quarter		1,006,181		277,677		60,979		0.44
1999
First quarter	$	799,005	$	241,765	$	42,380	$	0.29
Second quarter		791,095		227,023		31,834		0.22
Third quarter		816,818		221,005		29,550		0.20
Fourth quarter		950,839		288,239		59,674		0.41

To the Shareholders and Board of Directors
Hormel Foods Corporation
Austin, Minnesota

We have audited the accompanying consolidated statements of financial position of Hormel Foods Corporation as of October 28, 2000 and October 30, 1999, and the related consolidated statements of operations, changes in shareholders' investment and cash flows for each of the three years in the period ended October 28, 2000. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Hormel Foods Corporation at October 28, 2000 and October 30, 1999, and the consolidated results of its operations and its cash flows for each of the three years in the period ended October 28, 2000, in conformity with accounting principles generally accepted in the United States.

Corporate Headquarters
Hormel Foods Corporation
1 Hormel Place
Austin, MN 55912-3680
(507) 437-5611

Independent Auditors
Ernst & Young LLP
1400 Pillsbury Center
Minneapolis, MN 55402-1491

[LOGO] Stock Listing Hormel Foods Corporation's common stock is traded on the New York Stock Exchange. The Company's symbol is HRL and is often shown as Hormel in the New York Stock Exchange listing found in the financial section of most daily newspapers. Here, shareholders are able to find the corporation's daily trading activity, stock price and dividend information.

Transfer Agent and Registrar
Wells Fargo Bank Minnesota, N.A.
161 North Concord Exchange
P.O. Box 64854
South St. Paul, MN 55164-0854

For the convenience of shareholders, a toll-free number (1-877-536-3559) can be used whenever questions arise regarding changes in registered ownership, lost or stolen certificates, address changes or other matters pertaining to the transfer of stock or shareholder records. When requesting information, shareholders must provide their tax identification number, the name(s) in which their stock is registered and their record address.

The transfer agent makes shareholder account data available to shareholders of record via the Internet. This service allows shareholders to view various account details over a secure Internet connection with the required entry of a tax identification number and a PIN number. Information is available 24 hours per day, seven days a week. If you are interested, you may call Wells Fargo Share-owner Services at 1-877-536-3559 (toll-free) or use the "contact us" feature on the web site http://www.css2.sungard.com/Norwest/NLogin.html to arrange for a PIN setup.

If you hold stock in more than one account, duplicate mailings of financial information may result. You can help eliminate the added expense by requesting only one copy be sent. Please supply the transfer agent with the names in which all accounts are registered and the name of the account for which you wish to receive mailings. This will not in any way affect divided check mailings.

Hormel Foods Corporation's DIVIDEND REINVESTMENT PLAN, available to record shareholders, allows for full dividend reinvestment and voluntary cash purchases with brokerage commissions or other service fees paid by the Company. AUTOMATIC DEBIT FOR CASH CONTRIBUTION is also available. This is a convenient method to have money automatically withdrawn each month from a checking or savings account and invested in your DIVIDEND REINVESTMENT PLAN account. To enroll in the plan or obtain additional information, contact Wells Fargo Bank Minnesota, N.A., using the address or telephone number provided with its listing in this section as company transfer agent and registrar.

An optional DIRECT DIVIDEND DEPOSIT service offers shareholders a convenient method of having quarterly dividend payments electronically deposited into their personal checking or savings account. The dividend payment is made in the account each payment date, providing shareholders with

immediate use of their money. For information about the service and how to participate, contact Wells Fargo Bank Minnesota, N.A., transfer agent.

Dividends The declaration of dividends and all dates related to the declaration of dividends are subject to the judgement and discretion of the Board of Directors of Hormel Foods Corporation. Quarterly dividends are typically paid on the fifteenth of February, May, August and November. Postal delays may cause receipt dates to vary.

Reports and Publications Copies of the company's Form 10-K annual report to the Securities and Exchange Commission (SEC); the Form 10-Q quarterly reports to the SEC; proxy statement; quarterly earnings releases, and other printed corporate literature are available free of charge upon request. Telephone (507) 437-5164 or access financial and other information on the Internet at www.hormel.com. As part of our ongoing effort to reduce costs, and recognizing the company's Annual Report to Shareholders in mailed approximately one month following the fourth quarter earnings release date, no quarterly report will be produced and mailed to shareholders. If desired, shareholders may contact (507) 437-5164 to obtain a copy of the fourth quarter earnings release made available to news media and security analysis or check www.hormel.com.

Annual Meeting The Annual Meeting of Shareholders will be held Tuesday, January 30, 2001, in the Richard L. Knowlton Auditorium at Austin (Minn.) High School. The meeting will convene at 8:00 p.m.

Consumer Affairs Inquiries regarding products of Hormel Foods Corporation should be addressed:

Consumer Affairs Department
Hormel Foods Corporation
1 Hormel Place
Austin, MN 55912-3680
or call 1-800-523-4635

Forward-Looking Information This report may contain "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. "Forward-looking" statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. These risks and uncertainties include but are not limited to availability and prices of live hogs; raw material and supplies; live turkey production costs; product pricing; the competitive environment and related market conditions; operating efficiencies; consumer perceptions, and actions of domestic and foreign governments. Please refer to Exhibit 99 of the company's Form 10-K annual report to the Securities Exchange Commission for further information on the company's position regarding "forward-looking" information.

Financial Highlights	Inside Front Cover
Executive Letter	2
U.S. Operations	6
International Operations	14
Officers and Board of Directors	16
Management's Discussion and Analysis of Financial Condition and Results of Operations	17
Responsibilities for Financial Statements	19
Selected Financial Data	20
Consolidated Statements of Financial Position	22
Consolidated Statements of Operations	24
Consolidated Statements of Changes in Shareholders' Investment	25
Consolidated Statement of Cash Flows	26
Notes to Consolidated Financial Statements	27
Report of Independent Auditors	32
Shareholder Information	Inside Bank Cover


/s/ Joel W. Johnson		/s/ Michael J. McCoy
Joel W. Johnson Chairman of the Board President and Chief Executive Officer		Michael J. McCoy Senior Vice President Chief Financial Officer

			2000			1999			1998*			1997			1996			1995			1994			1993			1992*			1991			1990
			(In thousands, except per share amounts)
Operations
Net Sales			$	3,675,132		$	3,357,757		$	3,261,045		$	3,256,551		$	3,098,685		$	3,046,195		$	3,064,793		$	2,853,997		$	2,813,651		$	2,836,222		$	2,681,180
Net Earnings Before Cumulative Effect of Accounting Changes				170,217			163,438			139,291			109,492			79,408			120,436			117,975			100,770			95,174			86,393			77,124
		Percent of Sales		4.63	%		4.87	%		4.27	%		3.36	%		2.56	%		3.95	%		3.85	%		3.53	%		3.38	%		3.05	%		2.88	%
Cumulative Effect of Accounting Changes																									(127,529	)**
Net Earnings (Loss)				170,217			163,438			139,291			109,492			79,408			120,436			117,975			(26,759	)		95,174			86,393			77,124
Wage Costs				528,746			503,890			498,973			435,789			398,824			373,901			351,096			325,115			304,696			278,537			267,391
Total Taxes (Excluding Payroll Tax)				105,537			100,381			89,816			73,115			56,992			84,329			82,915			70,026			64,968			60,035			51,990
Depreciation and Amortization				65,886			64,656			60,273			52,925			42,700			37,220			36,611			32,174			38,972			36,269			35,554
Financial Position
Working Capital			$	368,484		$	414,736		$	449,714		$	410,774		$	456,850		$	441,452		$	443,298		$	392,846		$	401,216		$	346,164		$	293,818
Properties (Net)				541,549			505,624			486,907			488,738			421,486			333,084			270,886			244,987			216,390			231,817			235,026
Total Assets				1,641,940			1,685,585			1,555,892			1,528,535			1,436,138			1,223,860			1,196,718			1,093,559			913,015			856,835			799,422
Long-term Debt
	Less Current Maturities			145,928			184,723			204,874			198,232			127,003			16,959			10,300			5,700			7,624			22,833			24,535
Shareholders' Investment				873,877			841,142			813,315			802,202			785,551			732,047			661,089			570,888			644,284			583,408			513,832
Per Share of Common Stock
Net Earnings Before Cumulative Effect of Accounting Changes—Basic			$	1.21		$	1.12		$	0.93		$	0.72		$	0.52		$	0.79		$	0.77		$	0.66		$	0.62		$	0.56		$	0.50
Net Earnings Before Cumulative Effect of Accounting Changes—Diluted				1.20			1.11			0.93			0.71			0.52			0.78			0.77			0.66			0.62			0.56			0.50
Cumulative Effect of Accounting Changes																									(0.83	)**
Net Earnings (Loss)—Basic				1.21			1.12			0.93			0.72			0.52			0.79			0.77			(0.17	)		0.62			0.56			0.50
Net Earnings (Loss)—Diluted				1.20			1.11			0.93			0.71			0.52			0.78			0.77			(0.17	)		0.62			0.56			0.50
Dividends				0.35			0.33			0.32			0.31			0.30			0.29			0.25			0.22			0.18			0.15			0.13
Shareholders' Investment				6.31			5.89			5.53			5.29			5.07			4.77			4.31			3.72			4.20			3.81			3.35

2000	High		Low		Dividend
First Quarter	$	22.2813	$	19.2500	$	.0875
Second Quarter		19.4063		14.1250		.0875
Third Quarter		19.6875		15.0000		.0875
Fourth Quarter		16.8750		15.1875		.0875

1999	High		Low		Dividend
First Quarter	$	17.7500	$	14.7813	$	.0825
Second Quarter		19.0000		17.1563		.0825
Third Quarter		20.2188		18.3750		.0825
Fourth Quarter		22.6250		19.1250		.0825

		October 28, 2000			October 30, 1999
		(In thousands)
Assets
Current Assets
Cash and cash equivalents		$	100,646		$	188,310
Short-term marketable securities			5,964			60,252
Accounts receivable			307,732			266,059
Inventories			281,404			270,239
Deferred income taxes			9,021			9,526
Prepaid expenses			6,342			5,757

	Total Current Assets		711,109			800,143
Deferred Income Taxes			61,622			60,051
Intangibles			92,632			98,544
Investments in and Receivables from Affiliates			151,383			142,879
Other Assets			83,645			78,344
Property, Plant and Equipment
Land			13,314			13,108
Buildings			291,512			286,662
Equipment			701,554			652,723
Construction in progress			75,232			49,693

			1,081,612			1,002,186
Less allowance for depreciation			(540,063	)		(496,562	)

			541,549			505,624

	Total Assets	$	1,641,940		$	1,685,585

		October 28, 2000			October 30, 1999
		(In thousands)
Liabilities and Shareholders' Investment
Current Liabilities
Accounts payable		$	154,893		$	162,585
Accrued expenses			30,117			37,255
Accrued marketing expenses			34,252			34,882
Employee compensation			59,138			73,050
Taxes, other than federal income taxes			10,982			12,333
Dividends payable			12,195			11,902
Federal income taxes			2,609			12,186
Current maturities of long-term debt			38,439			41,214

	Total Current Liabilities		342,625			385,407
Long-term Debt—less current maturities			145,928			184,723
Accumulated Postretirement Benefit Obligation			252,118			252,236
Other Long-term Liabilities			27,392			22,077
Shareholders' Investment
Preferred stock, par value $.01 a share—authorized 80,000,000 shares; issued—none
Common stock, nonvoting, par value $.01 a share—authorized 80,000,000 shares; issued—none
Common stock, par value $.0586 a share—authorized 400,000,000 shares; issued 138,569,429 shares October 28, 2000 issued 142,724,870 shares October 30, 1999			8,120			8,364
Accumulated other comprehensive loss			(20,917	)		(6,305	)
Retained earnings			886,674			839,083

	Total Shareholders' Investment		873,877			841,142

	Total Liabilities and Shareholders' Investment	$	1,641,940		$	1,685,585

			Fiscal Year Ended
			October 28, 2000			October 30, 1999			October 31, 1998
			(In thousands, except per share amounts)
Sales, less returns and allowances			$	3,675,132		$	3,357,757		$	3,261,045
Cost of products sold				2,674,874			2,379,725			2,400,333

		Gross Profit		1,000,258			978,032			860,712
Expenses and gain on plant sale:
	Selling and delivery			379,326			356,553			328,050
	Marketing			292,808			307,376			276,826
	Administrative and general			65,517			73,196			72,331
	Gain on plant sale									(28,379	)

		Operating Income		262,607			240,907			211,884
Other income and expense:
	Interest and investment income			16,204			17,317			14,821
	Equity in earnings of affiliates			476			6,995			4,323
	Interest expense			(14,906	)		(13,746	)		(13,692	)

		Earnings Before Income Taxes		264,381			251,473			217,336
Provision for income taxes				94,164			88,035			78,045

		Net Earnings	$	170,217		$	163,438		$	139,291

		Net Earnings Per Share (basic)	$	1.21		$	1.12		$	0.93

		Net Earnings Per Share (diluted)	$	1.20		$	1.11		$	0.93

		Common Stock					Treasury Stock
		Common Stock					Treasury Stock					Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Shareholders' Investment
		Shares		Amount			Shares		Amount			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Shareholders' Investment
		(In thousands, except per share amounts)
Balance at October 25, 1997		151,553		$	8,881		0		$	0		$	795,119		$	(1,798	)	$	802,202
Comprehensive income
	Net earnings												139,291						139,291
	Foreign currency translation															(2,034	)		(2,034	)
	Adjustment in minimum pension liability															(79	)		(79	)

	Comprehensive income																		137,178
Purchases of common stock							(4,744	)		(80,104	)								(80,104	)
Exercise of stock options							182			3,074			(1,562	)					1,512
Shares retired		(4,324	)		(253	)	4,324			73,471			(73,218	)					0
Cash dividends—$.32 per share													(47,473	)					(47,473	)

Balance at October 31, 1998		147,229			8,628		(238	)		(3,559	)		812,157			(3,911	)		813,315
Comprehensive income
	Net earnings												163,438						163,438
	Foreign currency translation															(3,206	)		(3,206	)
	Adjustment in minimum pension liability															812			812

	Comprehensive income																		161,044
Purchases of common stock							(4,498	)		(87,678	)								(87,678	)
Exercise of stock options							232			4,401			(1,954	)					2,447
Shares retired		(4,504	)		(264	)	4,504			86,836			(86,572	)					0
Cash dividends—$.33 per share													(47,986	)					(47,986	)

Balance at October 30, 1999		142,725			8,364		0			0			839,083			(6,305	)		841,142
Comprehensive income
	Net earnings												170,217						170,217
	Foreign currency translation															(6,972	)		(6,972	)
	Adjustment in minimum pension liability															(7,640	)		(7,640	)

	Comprehensive income																		155,605
Purchases of common stock							(4,429	)		(77,591	)								(77,591	)
Exercise of stock options							273			4,445			(696	)					3,749
Shares retired		(4,156	)		(244	)	4,156			73,146			(72,902	)					0
Cash dividends—$.35 per share													(49,028	)					(49,028	)

Balance at October 28, 2000		138,569		$	8,120		0		$	0		$	886,674		$	(20,917	)	$	873,877

	(In thousands)
2001	$	869,388
2002		761,953
2003		728,979
2004		716,274
2005		415,937
Later years		1,365,648

Total	$	4,858,179

	(In thousands)
2001	$	6,914
2002		7,628
2003		6,883
2004		5,649
2005		5,109
Later years		8,217

Total	$	40,400

	2000		1999		1998
	(In thousands, except per share data)
Pro forma net income	$	168,334	$	162,148	$	138,828
Pro forma diluted earnings per share		1.19		1.10		0.92
Diluted earnings per share—as reported		1.20		1.11		0.93