Derivatives and Hedging (Tables)

12 Months Ended

Oct. 26, 2025

Derivatives and hedging

Schedule of gross fair values of derivative instruments

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

	October 26, 2025						October 27, 2024
In thousands	Assets			Liabilities			Assets			Liabilities
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.

Schedule of fair value hedge assets (liabilities)

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

In thousands	Location on Consolidated Statements of Financial Position	October 26, 2025		October 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.

Schedule of gains or losses (before tax) related to derivative instruments

The pre-tax gains (losses) recognized in AOCL related to the Company’s derivative instruments are:

In thousands	Fiscal Year Ended
	October 26, 2025		October 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 thousands	Location on  Consolidated Statements of Operations	Fiscal Year Ended
		October 26, 2025		October 27, 2024
Commodity Contracts	Cost of Products Sold	$	5,341	$	(26,445)
Interest Rate Contracts	Interest Expense	988		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 thousands	October 26, 2025			October 27, 2024			October 29, 2023
Net Earnings Attributable to Hormel Foods Corporation		$	478,197		$	805,038		$	793,572
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL		5,341			(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.

Cash Flow Hedges

Derivatives and hedging

Schedule of outstanding commodity futures contracts

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

In millions	October 26, 2025		October 27, 2024
Corn	27.4	bushels	29.2	bushels
Lean Hogs	188.6	pounds	175.6	pounds
Natural Gas	3.6	MMBtu	4.2	MMBtu
Diesel Fuel	7.5	gallons	4.0	gallons