SEGMENT REPORTING

3 Months Ended

Jan. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following four segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other.

The Grocery Products segment consists primarily of the processing, marketing, and sale of shelf-stable food products sold predominantly in the retail market, along with the sale of nutritional and private label shelf-stable products to retail, foodservice, and industrial customers. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.

The Refrigerated Foods segment consists primarily of the processing, marketing, and sale of branded and unbranded pork, beef, and poultry products for retail, foodservice, deli, convenience store, and commercial customers.

The Jennie-O Turkey Store segment consists primarily of the processing, marketing, and sale of branded and unbranded turkey products for retail, foodservice, and commercial customers.

The International & Other segment includes Hormel Foods International which manufactures, markets, and sells Company products internationally. This segment also includes the results from the Company’s international joint ventures and royalty arrangements.

Intersegment sales are recorded at prices that approximate cost and are eliminated in the Consolidated Statements of Operations. The Company does not allocate deferred compensation, investment income, interest expense, or interest income to its segments when measuring performance. The Company also retains various other income and expenses at the corporate level. 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
in thousands	January 30, 2022		January 24, 2021
Sales to Unaffiliated Customers
Grocery Products	$	855,591	$	577,599
Refrigerated Foods	1,627,528		1,367,077
Jennie-O Turkey Store	384,471		333,321
International & Other	176,768		183,150
Total	$	3,044,358	$	2,461,147
Intersegment Sales
Grocery Products	$	—	$	—
Refrigerated Foods	7,689		5,957
Jennie-O Turkey Store	47,954		26,692
International & Other	—		—
Total	55,642		32,650
Intersegment Elimination	(55,642)		(32,650)
Total	$	—	$	—
Net Sales
Grocery Products	$	855,591	$	577,599
Refrigerated Foods	1,635,217		1,373,034
Jennie-O Turkey Store	432,425		360,013
International & Other	176,768		183,150
Intersegment Elimination	(55,642)		(32,650)
Total	$	3,044,358	$	2,461,147
Segment Profit
Grocery Products	$	99,486	$	92,202
Refrigerated Foods	162,391		141,171
Jennie-O Turkey Store	43,737		26,940
International & Other	26,084		32,204
Total Segment Profit	331,699		292,517
Net Unallocated Expense	22,933		15,547
Noncontrolling Interest	139		112
Earnings Before Income Taxes	$	308,904	$	277,082

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
in thousands	January 30, 2022		January 24, 2021
U.S. Retail	$	1,958,747	$	1,669,887
U.S. Foodservice	886,065		586,336
International	199,545		204,924
Total	$	3,044,358	$	2,461,147

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
in thousands	January 30, 2022		January 24, 2021
Perishable	$	1,773,203	$	1,376,821
Shelf-stable	635,236		523,936
Poultry	536,604		474,651
Miscellaneous	99,315		85,739
Total	$	3,044,358	$	2,461,147

Perishable includes fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon (excluding Jennie-O Turkey Store products). Shelf-stable includes canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, and other items that do not require refrigeration. The Poultry category is composed primarily of Jennie-O Turkey Store products. The Miscellaneous category primarily consists of nutritional food products and supplements, dessert and drink mixes, and industrial gelatin products.