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Derivatives and Hedging
 12 Months Ended
Oct. 26, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging
Derivatives and Hedging

The Company uses hedging programs to manage risk associated with various commodity purchases and interest rates. These programs utilize futures, swaps, and options contracts to manage the Company’s exposure to market fluctuations.

Cash Flow Commodity Hedges: The Company uses futures, swaps, and options contracts to offset price fluctuations in the Company’s future purchases of grain, lean hogs, natural gas, and diesel fuel. These contracts are designated as cash flow hedges; therefore, the related gains or losses 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, natural gas, or diesel fuel exposure beyond two fiscal years and its lean hog exposure beyond one 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 lean hog and grain suppliers as fair value hedges. The programs are intended 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 and the offsetting gain or loss on the hedged purchase commitment are marked-to-market through earnings and recorded as a Current Asset and Current Liability, respectively. 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 anticipated debt transactions. 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 tenors of seven and 30 years and both locks were lifted (See Note M - 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 period 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 designated the last $450 million of the $950 million aggregate principal amount of the Company's 0.650% notes due June 2024 (the 2024 Notes). The Company terminated the swap in the fourth quarter of fiscal 2022. The loss related to the swap was recorded as a fair value hedging adjustment to the hedged debt and amortized through Interest Expense over the remaining life of the debt. In the third quarter of fiscal 2024, the fair value hedging adjustment was completely amortized to correspond with the payment of the 2024 Notes upon maturity.

Other Derivatives: The Company holds certain futures and swap contracts to manage the Company’s exposure to fluctuations in grain and pork commodity markets for which it has not applied hedge accounting. Activity related to derivatives not designated for hedge accounting was immaterial to the consolidated financial statements during fiscal 2025, 2024, and 2023.

Volume: The Company’s outstanding contracts related to its commodity hedging programs include:
In millionsOctober 26, 2025October 27, 2024
Corn27.4 
bushels
29.2 
bushels
Lean Hogs188.6 
pounds
175.6 
pounds
Natural Gas
3.6 
MMBtu
4.2 
MMBtu
Diesel Fuel
7.5 
gallons
4.0 
gallons

Fair Value of Derivatives: The gross fair values of the Company’s derivative instruments designated as hedges are:
October 26, 2025October 27, 2024
In thousandsAssetsLiabilitiesAssetsLiabilities
Gross Fair Value of Commodity Contracts
$9,862 $(4,243)$9,851 $(12,638)
Counterparty and Collateral Netting Offset(1)
304 4,243 (1,785)12,638 
Amounts Recognized in Prepaid Expenses and Other Current Assets
$10,166 $— $8,066 $— 
(1)    Per the terms of the Company's master netting arrangements, the gross fair value of the Company's commodity contracts was offset by the right to reclaim net cash collateral of $4.5 million (including cash payable of $5.5 million and $10.1 million of realized gain) as of October 26, 2025, and the right to reclaim net cash collateral of $10.9 million (including cash receivable of $26.5 million and $15.6 million of realized loss) as of October 27, 2024.

Fair Value Hedge - Assets (Liabilities): The carrying amount of the Company’s fair value hedged assets (liabilities) are:
In thousandsLocation on Consolidated
Statements of Financial Position		October 26, 2025October 27, 2024
Commodity Contracts
Accounts Payable(1)
$(157)$(2,902)
(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.

Accumulated Other Comprehensive Loss Impact: As of October 26, 2025, the Company included in AOCL pre-tax hedging gains of $5.4 million on commodity contracts and gains of $10.5 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 associated debt instruments.

The pre-tax gains (losses) recognized in AOCL related to the Company’s derivative instruments are:
In thousandsFiscal Year Ended
October 26, 2025October 27, 2024
Commodity Contracts$19,637 $(12,898)
Excluded Component(1)
(74)2,136 
(1)    Represents the time value of commodity options excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in AOCL.

The pre-tax gains (losses) reclassified from AOCL into earnings related to the Company’s derivative instruments are:
In thousandsLocation on
 Consolidated Statements of Operations		Fiscal Year Ended
October 26, 2025October 27, 2024
Commodity Contracts
Cost of Products Sold$5,341 $(26,445)
Interest Rate ContractsInterest Expense988 988 

See Note I - Accumulated Other Comprehensive Loss for the after-tax impact of these gains or losses on Net Earnings.
Consolidated Statements of Operations Impact: The effect on the Consolidated Statements of Operations for pre-tax gains (losses) related to the Company’s derivative instruments are:
Fiscal Year Ended
In thousandsOctober 26, 2025October 27, 2024October 29, 2023
Net Earnings Attributable to Hormel Foods Corporation$478,197 $805,038 $793,572 
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL5,341 (26,445)1,225 
Amortization of Excluded Component from Options
(877)(2,774)(5,835)
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures(1)
2,350 6,263 656 
Total Gain (Loss) on Commodity Contracts
$6,813 $(22,957)$(3,955)
Cash Flow Hedges - Interest Rate Contracts
Gain (Loss) Reclassified from AOCL
988 988 988 
Fair Value Hedge - Interest Rate Contracts
Amortization of Loss Due to Discontinuance of Fair Value Hedge(2)
— (7,451)(12,499)
Total Gain (Loss) on Interest Rate Contracts
$988 $(6,463)$(11,511)
Total Gain (Loss) Recognized in Earnings$7,802 $(29,420)$(15,466)
(1)    Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the year, 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.
(2)    Represents the fair value hedging adjustment amortized through earnings.