DERIVATIVES AND HEDGING (Tables)

6 Months Ended

Apr. 29, 2012

Derivatives and hedging

Schedule of fair values of derivative instruments

		Fair Value (1)
	Location on Consolidated Statements of Financial Position	April 29, 2012	October 30, 2011
Asset Derivatives:
Derivatives Designated as Hedges:
Commodity contracts	Other current assets	$     15,959	$    58,753
Derivatives Not Designated as Hedges:
Commodity contracts	Other current assets	49	121
Total Asset Derivatives		$    16,008	$    58,874
Liability Derivatives:
Derivatives Designated as Hedges:
Commodity contracts	Accounts payable	$     523	$     351
Total Liability Derivatives		$     523	$     351

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

Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (AOCL) (Effective Portion) (1)

Location on Consolidated

Gain/(Loss) Reclassified from AOCL into Earnings (Effective Portion) (1)

Gain/(Loss) Recognized in Earnings (Ineffective Portion) (2) (3)

Three Months Ended

Three Months Ended

Three Months Ended

Cash Flow Hedges:

April 29, 2012

May 1, 2011

Statements of Operations

April 29, 2012

May 1, 2011

April 29, 2012

May 1, 2011

Commodity contracts

$  (4,843)

$   21,073

Cost of products sold

$

3,751

$

9,210

$

0

$

(2,247)

Location on Consolidated

Gain/(Loss) Recognized in Earnings (Effective Portion) (4)

Gain/(Loss) Recognized in Earnings (Ineffective Portion) (2) (5)

Three Months Ended

Three Months Ended

Fair Value Hedges:

Statements of Operations

April 29, 2012

May 1, 2011

April 29, 2012

May 1, 2011

Commodity contracts

Cost of products sold

$

2,695

$

(9,121)

$

135

$

(297)

Location on Consolidated

Gain/(Loss) Recognized in Earnings

Three Months Ended

Derivatives Not  Designated as Hedges:

Statements of Operations

April 29, 2012

May 1, 2011

Commodity contracts

Cost of products sold

$

86

$

(2,363)

Foreign exchange contracts

Net sales

$

0

$

(191)

Derivative Gains and Losses:  Gains or losses (before tax, in thousands) related to the Company’s derivative instruments for the six months ended April 29, 2012, and May 1, 2011, were as follows:

Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (AOCL) (Effective Portion) (1)

Location on

Gain/(Loss) Reclassified from AOCL into Earnings (Effective Portion) (1)

Gain/(Loss) Recognized in Earnings (Ineffective Portion) (2) (3)

Six Months Ended

Consolidated

Six Months Ended

Six Months Ended

Cash Flow Hedges:

April 29, 2012

May 1, 2011

Statements of Operations

April 29, 2012

May 1, 2011

April 29, 2012

May 1, 2011

Commodity contracts

$  (12,085)

$   40,663

Cost of products sold

$

14,641

$

14,457

$

0

$

(5,328)

Location on

Gain/(Loss) Recognized in Earnings (Effective Portion) (4)

Gain/(Loss) Recognized in Earnings (Ineffective Portion) (2) (5)

Consolidated

Six Months Ended

Six Months Ended

Fair Value Hedges:

Statements of Operations

April 29, 2012

May 1, 2011

April 29, 2012

May 1, 2011

Commodity contracts

Cost of products sold

$

5,349

$

(11,664)

$

46

$

(419)

Location on

Gain/(Loss) Recognized in Earnings

Consolidated

Six Months Ended

Derivatives Not  Designated as Hedges:

Statements of Operations

April 29, 2012

May 1, 2011

Commodity contracts

Cost of products sold

$

46

$

(1,947)

Foreign exchange contracts

Net sales

$

0

$

(191)

(1)	Amounts represent gains or losses in AOCL before tax. See Note F — Comprehensive Income for the after tax impact of these gains or losses on net earnings.
(2)	There were no gains or losses excluded from the assessment of hedge effectiveness during the second quarter or first six months of fiscal years 2012 and 2011.
(3)	There were no gains or losses resulting from the discontinuance of cash flow hedges during the second quarter or first six months of fiscal years 2012 and 2011. However, effective January 30, 2011, the Company de-designated and discontinued hedge accounting for its soybean meal futures contracts. At the date of de-designation of these hedges, gains of $17.7 million (before tax) were deferred in AOCL, with $2.6 million (before tax) remaining as of April 29, 2012. These gains will remain in AOCL until the hedged transactions occur or it is probable the hedged transactions will not occur. Gains or losses related to these contracts after the date of de-designation have been recognized in earnings as incurred.
(4)	Amounts represent losses on commodity contracts designated as fair value hedges that were closed during the second quarter or first six months of fiscal years 2012 and 2011, which were offset by a corresponding gain 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.
(5)	There were no gains or losses recognized as a result of a hedged firm commitment no longer qualifying as a fair value hedge during the second quarter or first six months of fiscal years 2012 and 2011.

Derivatives not designated as hedges

Derivatives and hedging

Schedule of outstanding commodity or foreign exchange contracts

	Volume
Commodity	April 29, 2012	October 30, 2011
Soybean meal	-	4,300 tons

Cash Flow Hedges

Derivatives and hedging

Schedule of outstanding commodity or foreign exchange contracts

	Volume
Commodity	April 29, 2012	October 30, 2011
Corn	14.8 million bushels	20.8 million bushels
Natural gas	0.2 million MMBTU’s	0.5 million MMBTU’s

Fair Value Hedges

Derivatives and hedging

Schedule of outstanding commodity or foreign exchange contracts

	Volume
Commodity	April 29, 2012	October 30, 2011
Corn	9.2 million bushels	12.4 million bushels
Lean hogs	0.8 million cwt	1.3 million cwt