REVENUE

3 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

The Company recognizes revenue in connection with a contract in which the Company has agreed to sell, and a customer has agreed to purchase, specific quantities of product at agreed-upon prices and when the Company's performance obligation related to that contract has been satisfied. In the majority of its contracts with customers, the Company's performance obligation is satisfied when delivery of the product has occurred, either at the customer's facility or the Company's facility, depending on the terms of each contract. In a smaller number of contracts, ownership of the product passes from the Company to the customer at some point during transit, at which time the performance obligation is satisfied and revenue is recognized. Revenue and related receivables are recognized based on the transaction price within the contract and are reduced by estimated or known amounts for items such as rebates, discounts, cooperative advertising allowances and other various items.

The cost incurred for shipping and handling activities to deliver the product to the customer is recognized in cost of sales during the period in which the corresponding revenue is recognized. Where shipping and handling activities occur after the customer has obtained control of the product, the Company has elected to account for those expenses as fulfillment costs in cost of sales,

rather than an additional promised service. Revenue is reported gross of any freight charge that is separately invoiced to a customer, and all freight costs are accounted for as cost of sales.

Due to the nature of our contracts, commissions associated with such contracts provide only a short-term benefit (i.e. less than one year); therefore, we recognize costs of commissions paid to third-party brokers as selling, general and administrative expenses.

Disaggregation of Revenue

The following table disaggregates our net sales by product category (in thousands):


Product Category	Three Months Ended January 31, 2020		Three Months Ended January 31, 2019
Fresh, vacuum-sealed chicken	$	311,296	$	260,069
Fresh, chill-packed chicken	287,267		268,464
Fresh, ice-packed chicken	120,463		100,032
Prepared chicken	51,382		57,396
Frozen chicken	46,674		48,591
Other	5,996		8,836
Total net sales	$	823,078	$	743,388