DERIVATIVES AND HEDGING (Tables)

3 Months Ended

Jan. 29, 2017

Schedule of fair values of derivative instruments

The fair values of the Company’s derivative instruments (in thousands) as of January 29, 2017, and October 30, 2016, were as follows:

		Fair Value (1)
	Location on Consolidated Statements of Financial Position	January 29, 2017		October 30, 2016
Asset Derivatives:
Derivatives Designated as Hedges:
Commodity contracts	Other current assets	$	(1,832)	$	(194)

Derivatives Not Designated as Hedges:
Commodity contracts	Other current assets	1		144


Total Asset Derivatives		$	(1,831)	$	(50)

(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 L “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 three months ended January 29, 2017, and January 24, 2016, were as follows:

	Gain/(Loss) Recognized in AOCL (Effective Portion) (1)				Location on	Gain/(Loss) Reclassified from AOCL into Earnings (Effective Portion) (1)				Gain/(Loss) Recognized in Earnings (Ineffective Portion) (2)(4)
	Three Months Ended				Consolidated	Three Months Ended				Three Months Ended
Cash Flow Hedges:	January 29, 2017		January 24, 2016		Statements of Operations	January 29, 2017		January 24, 2016		January 29, 2017		January 24, 2016
Commodity contracts	$	(646)	$	(2,848)	Cost of products sold	$	1,469	$	(767)	$	-	$	1

Location on

Gain/(Loss)
Recognized in Earnings
(Effective Portion) (3)

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

Consolidated

Three Months Ended

Fair Value Hedges:

Statements
of Operations

January 29, 2017

January 24, 2016

January 29, 2017

January 24, 2016

Commodity contracts

Cost of products sold

(54)

1,242

(252)

Location on

Gain/(Loss)

Recognized

in Earnings

Consolidated

Three Months Ended

Derivatives Not
Designated as Hedges:

Statements
of Operations

January 29, 2017

January 24, 2016

Commodity contracts

Cost of products sold

(228)

(480)

(1)

Amounts represent gains or losses in AOCL before tax. See Note I “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 gains on commodity contracts designated as fair value hedges that were closed during the quarter, which were offset by a corresponding 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.

(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 29, 2017	October 30, 2016
Corn	0.1 million bushels	4.0 million bushels
Soybean meal	-	11,000 tons

Cash Flow Hedges

DERIVATIVES AND HEDGING

Schedule of outstanding commodity futures contracts

	Volume
Commodity	January 29, 2017	October 30, 2016
Corn	18.3 million bushels	22.4 million bushels

Fair Value Hedges

DERIVATIVES AND HEDGING

Schedule of outstanding commodity futures contracts

	Volume
Commodity	January 29, 2017	October 30, 2016
Corn	3.6 million bushels	3.6 million bushels
Lean hogs	0.2 million cwt	0.2 million cwt