DERIVATIVES AND HEDGING (Tables)

3 Months Ended

Jan. 25, 2015

Derivatives and hedging

Schedule of fair values of derivative instruments

The fair values of the Company’s derivative instruments (in thousands) as of January 25, 2015, and October 26, 2014, were as follows:

		Fair Value(1)
	Location on Consolidated Statements of Financial Position	January 25, 2015	October 26, 2014
Asset Derivatives:
Derivatives Designated as Hedges:
Commodity contracts	Other current assets	$  3,827	$   (7,124)
Derivatives Not Designated as Hedges:
Commodity contracts	Other current assets	(316)	(938)
Total Asset Derivatives		$  3,511	$   (8,062)

(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 Statements of Financial Position.  See Note J “Fair Value Measurements” 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

Gains or losses (before tax, in thousands) related to the Company’s derivative instruments for the first quarter ended January 25, 2015, and January 26, 2014, were as follows:

	Gain/(Loss) Recognized in 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)(4)
	Three Months Ended			Three Months Ended		Three Months Ended
Cash Flow Hedges:	January 25, 2015	January 26, 2014	Statements of Operations	January 25, 2015	January 26, 2014	January 25, 2015	January 26, 2014
Commodity contracts	$   3,663	$   (4,004)	Cost of products sold	$   (4,379)	$   (3,249)	$       0	$      (294)

	Location on Consolidated	Gain/(Loss) Recognized in Earnings (Effective Portion) (3)		Gain/(Loss) Recognized in Earnings (Ineffective Portion) (2)(5)
		Three Months Ended		Three Months Ended
Fair Value Hedges:	Statements of Operations	January 25, 2015	January 26, 2014	January 25, 2015	January 26, 2014
Commodity contracts	Cost of products sold	$  (168)	$     1,254	$     (110)	$     (38)

	Location on Consolidated	Gain/(Loss) Recognized in Earnings
		Three Months Ended
Derivatives Not Designated as Hedges:	Statements of Operations	January 25, 2015	January 26, 2014
Commodity contracts	Cost of products sold	$   129	$  (517)

(1) Amounts represent gains or losses in AOCL before tax.  See Note G “Accumulated Other Comprehensive Loss” or the Consolidated Statements of 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 quarter.

(3) Amounts represent losses on commodity contracts designated as fair value hedges that were closed during the quarter, 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.

(4) There were no gains or losses resulting from the discontinuance of cash flow hedges during the quarter.

(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 quarter.

Derivatives not designated as hedges

Derivatives and hedging

Schedule of outstanding commodity futures contracts

	Volume
Commodity	January 25, 2015	October 26, 2014
Corn	1.9 million bushels	2.9 million bushels

Cash Flow Hedges

Derivatives and hedging

Schedule of outstanding commodity futures contracts

	Volume
Commodity	January 25, 2015	October 26, 2014
Corn	17.3 million bushels	18.3 million bushels

Fair Value Hedges

Derivatives and hedging

Schedule of outstanding commodity futures contracts

	Volume
Commodity	January 25, 2015	October 26, 2014
Corn	6.6 million bushels	8.0 million bushels
Lean hogs	0.4 million cwt	0.7 million cwt