SEGMENT REPORTING

9 Months Ended

Jul. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE M - SEGMENT REPORTING

The Company develops, processes, and distributes a wide array of food products in a variety of markets. As discussed in Note A - Summary of Significant Accounting Policies, the Company transitioned to a new operating model in the first quarter of fiscal 2023 and now reports its results in the following three segments: Retail, Foodservice, and International, which is consistent with how the Company's chief operating decision maker (CODM) assesses performance and allocates resources. Prior period segment results have been retrospectively recast to reflect the new reportable segments.

The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in the retail market. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.

The Foodservice segment consists primarily of the processing, marketing, and sale of food and nutritional products for foodservice, convenience store, and commercial customers.

The International segment processes, 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 consolidation and are not reviewed when evaluating segment performance. 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.

Financial measures for each of the Company’s reportable segments and reconciliation to consolidated Earnings Before Income Taxes are set forth below. The Company's CODM reviews assets at a consolidated level and does not use assets by segment to

evaluate performance or allocate resources. Therefore, the Company does not disclose assets by segment. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the profit and other financial information shown below.

	Quarter Ended				Nine Months Ended
in thousands	July 30, 2023		July 31, 2022		July 30, 2023		July 31, 2022
Net Sales
Retail	$	1,891,746	$	1,924,553	$	5,765,786	$	5,921,145
Foodservice	890,949		917,671		2,607,140		2,681,737
International	180,605		192,190		539,005		572,450
Total Net Sales	$	2,963,299	$	3,034,414	$	8,911,930	$	9,175,331
Segment Profit
Retail	$	151,128	$	163,092	$	459,031	$	522,980
Foodservice	146,270		128,798		428,110		399,482
International	12,222		24,464		45,723		78,833
Total Segment Profit	309,619		316,354		932,863		1,001,295
Net Unallocated Expense	101,886		26,429		164,997		80,799
Noncontrolling Interest	(108)		(89)		(200)		112
Earnings Before Income Taxes	$	207,626	$	289,836	$	767,666	$	920,608

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 30, 2023		July 31, 2022		July 30, 2023		July 31, 2022
Perishable	$	2,068,787	$	2,123,872	$	6,222,485	$	6,445,419
Shelf-stable	894,512		910,542		2,689,445		2,729,911
Total Net Sales	$	2,963,299	$	3,034,414	$	8,911,930	$	9,175,331

Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items that require refrigeration. Shelf-stable includes canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and other items that do not require refrigeration.