DERIVATIVES AND HEDGING (Tables)

12 Months Ended

Oct. 28, 2012

Derivatives and hedging

Schedule of fair values of derivative instruments

		Fair Value(1)
(in thousands)	Location on Consolidated Statements of Financial Position	October 28, 2012		October 30, 2011
Asset Derivatives:
Derivatives Designated as Hedges:
Commodity contracts	Other current assets	$	7,483	$	58,753
Derivatives Not Designated as Hedges:
Commodity contracts	Other current assets	–		121
Total Asset Derivatives		$	7,483	$	58,874
Liability Derivatives:
Derivatives Designated as Hedges:
Commodity contracts	Accounts payable	$	–	$	351
Total Liability Derivatives		$	–	$	351

(1) Amounts represent the gross fair value of derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its hedging programs, including cash collateral, when a master netting arrangement exists between the Company and the counterparty to the derivative contract. The amount or timing of cash collateral balances may impact the classification of the derivative in the Consolidated Statement of Financial Position. See Note N for a discussion of these net amounts as reported in the Consolidated Statements of Financial Position.

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

	Gain/(Loss) Recognized in AOCL (Effective Portion)(1)			Gain/(Loss) Reclassified from AOCL into Earnings (Effective Portion)(1)		Gain/(Loss) Recognized in Earnings (Ineffective Portion)(2)(3)
	Fiscal Year Ended			Fiscal Year Ended		Fiscal Year Ended
Cash Flow Hedges:	October 28, 2012	October 30, 2011	Location on Consolidated Statements of Operations	October 28, 2012	October 30, 2011	October 28, 2012	October 30, 2011
Commodity contracts	$10,261	$39,480	Cost of products sold	$22,319	$45,103	$ –	$(8,704)

		Gain/(Loss) Recognized in Earnings (Effective Portion)(4)		Gain/(Loss) Recognized in Earnings (Ineffective Portion)(2)(5)
		Fiscal Year Ended		Fiscal Year Ended
Fair Value Hedges:	Location on Consolidated Statements of Operations	October 28, 2012	October 30, 2011	October 28, 2012	October 30, 2011
Commodity contracts	Cost of products sold	$(10,670)	$(24,373)	$19	$132

		Gain/(Loss) Recognized in Earnings
		Fiscal Year Ended
Derivatives Not Designated as Hedges:	Location on Consolidated Statements of Operations	October 28, 2012	October 30, 2011
Commodity contracts	Cost of products sold	$46	$(1,981)
Foreign exchange contracts	Net sales	$  –	$   (129)

(1) Amounts represent gains or losses in AOCL before tax. See Note B 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 fiscal year.

(3) There were no gains or losses resulting from the discontinuance of cash flow hedges during the fiscal year. 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 $0.4 million (before tax) remaining as of October 28, 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 fiscal year, 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 fiscal year.

Derivatives not designated as hedges

Derivatives and hedging

Schedule of outstanding commodity or foreign exchange contracts

	Volume
Commodity	October 28, 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	October 28, 2012	October 30, 2011
Corn	12.0 million bushels	20.8 million bushels
Natural gas	–	0.5 million MMBTU’s

Fair Value Hedges

Derivatives and hedging

Schedule of outstanding commodity or foreign exchange contracts

	Volume
Commodity	October 28, 2012	October 30, 2011
Corn	8.0 million bushels	12.4 million bushels
Lean hogs	0.9 million cwt	1.3 million cwt