v3.26.1
DERIVATIVES AND HEDGING (Tables)
6 Months Ended
Apr. 26, 2026
Derivative [Line Items]  
Schedule of fair values of derivative instruments The gross fair values of the Company’s derivative instruments designated as hedges are:
April 26, 2026October 26, 2025
In thousands
Assets
Liabilities
Assets
Liabilities
Gross Fair Value of Commodity Contracts
$22,516 $(3,394)$9,862 $(4,243)
Counterparty and Collateral Netting Offset(1)
(6,986)3,394 304 4,243 
Amounts Recognized in Prepaid Expenses and Other Current Assets
$15,530 $— $10,166 $— 
(1)    Per the terms of the Company’s master netting arrangements, the gross fair value of the Company’s commodity contracts was offset by the obligation to return net cash collateral of $3.6 million (including cash payable of $10.7 million and $7.1 million of realized gain) as of April 26, 2026, and the right to reclaim net cash collateral of $4.5 million (including cash payable of $5.5 million and $10.1 million of realized gain) as of October 26, 2025.
Schedule of fair value hedge assets (liabilities) The carrying amount of the Company’s fair value hedged assets (liabilities) are:
In thousands
Location on Consolidated Statements of Financial Position
April 26, 2026October 26, 2025
Commodity Contracts
Accounts Payable(1)
$696 $(157)
(1)    Represents the carrying amount of fair value hedged assets and liabilities, which are offset by other assets included in master netting arrangements described above.
Schedule of gains or losses related to derivative instruments
The pre-tax gains (losses) recognized in AOCL related to the Company’s derivative instruments are:
Quarter EndedSix Months Ended
In thousandsApril 26, 2026April 27, 2025April 26, 2026April 27, 2025
Commodity Contracts
$10,830 $(6,135)$22,461 $13,000 
Excluded Component(1)
(25)(96)(15)(183)
(1)    Represents the time value of commodity options excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in AOCL.
The pre-tax gains (losses) reclassified from AOCL into earnings related to the Company’s derivative instruments are:
Location on Consolidated
Statements of Operations
Quarter EndedSix Months Ended
In thousandsApril 26, 2026April 27, 2025April 26, 2026April 27, 2025
Commodity Contracts
Cost of Products Sold
$5,910 $(1,326)$8,104 $(3,467)
Interest Rate Contracts
Interest Expense
247 247 494 494 

See Note K - Accumulated Other Comprehensive Loss for the after-tax impact of these gains or losses on Net Earnings.

Consolidated Statements of Operations Impact: The effect of pre-tax gains (losses) related to the Company’s derivative instruments are:
Quarter EndedSix Months Ended
In thousands
April 26, 2026April 27, 2025April 26, 2026April 27, 2025
Net Earnings Attributable to Hormel Foods Corporation$157,474 $180,017 $339,274 $350,592 
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL5,910 (1,326)8,104 (3,467)
Amortization of Excluded Component from Options(221)(211)(447)(419)
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures(1)
215 (571)123 1,133 
Total Gain (Loss) on Commodity Contracts
5,904 (2,107)7,780 (2,753)
Cash Flow Hedges - Interest Rate Contracts
Gain (Loss) Reclassified from AOCL247 247 494 494 
Total Gain (Loss) on Interest Rate Contracts
247 247 494 494 
Total Gain (Loss) Recognized in Earnings$6,152 $(1,860)$8,274 $(2,259)

(1)    Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter and six months ended April 26, 2026, and April 27, 2025, which were offset by a corresponding gain or 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.
Cash Flow Hedges  
Derivative [Line Items]  
Schedule of outstanding commodity futures contracts The Company’s outstanding contracts related to its commodity hedging programs include:
In millions
April 26, 2026October 26, 2025
Corn31.0 
bushels
27.4 
bushels
Lean Hogs210.0 
pounds
188.6 
pounds
Natural Gas3.8 
MMBtu
3.6 
MMBtu
Diesel Fuel
7.7 
gallons
7.5 
gallons