Hormel Foods (HRL) 10-Q 9 Jun 17 2017 Q2 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	6 Months Ended
	Apr. 30, 2017	Jun. 04, 2017
Entity Registrant Name	HORMEL FOODS CORP /DE/
Entity Central Index Key	48,465
Document Type	10-Q
Document Period End Date	Apr. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--10-29
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Common Stock
Entity Common Stock, Shares Outstanding		528,550,346
Common stock, non-voting
Entity Common Stock, Shares Outstanding		0

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 30, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 548,901	$ 415,143
Accounts receivable	525,322	591,310
Inventories	988,408	985,683
Income taxes receivable	42,026	18,282
Prepaid expenses	15,892	13,775
Other current assets	5,242	5,719
TOTAL CURRENT ASSETS	2,125,791	2,029,912
DEFERRED INCOME TAXES		6,223
GOODWILL	1,822,671	1,834,497
OTHER INTANGIBLES	884,739	903,258
PENSION ASSETS	78,168	68,901
INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES	246,840	239,590
OTHER ASSETS	183,932	182,237
PROPERTY, PLANT AND EQUIPMENT
Land	46,608	67,557
Buildings	742,462	805,858
Equipment	1,616,733	1,675,549
Construction in progress	183,198	218,351
Less: Allowance for depreciation	(1,545,435)	(1,661,866)
Net property, plant and equipment	1,043,566	1,105,449
TOTAL ASSETS	6,385,707	6,370,067
CURRENT LIABILITIES
Accounts payable	372,361	481,826
Accrued expenses	57,137	82,145
Accrued workers compensation	24,796	36,612
Accrued marketing expenses	106,613	119,583
Employee related expenses	171,552	251,433
Taxes payable	1,666	4,331
Interest and dividends payable	90,462	77,266
TOTAL CURRENT LIABILITIES	824,587	1,053,196
LONG-TERM DEBT-less current maturities	250,000	250,000
PENSION AND POST-RETIREMENT BENEFITS	526,992	522,356
OTHER LONG-TERM LIABILITIES	90,180	93,109
DEFERRED INCOME TAXES	7,520
SHAREHOLDERS' INVESTMENT
Preferred stock, par value $.01 a share - authorized 160,000,000 shares; issued - none
Accumulated other comprehensive loss	(299,151)	(296,303)
Retained earnings	4,974,512	4,736,567
HORMEL FOODS CORPORATION SHAREHOLDERS' INVESTMENT	4,683,104	4,448,006
NONCONTROLLING INTEREST	3,324	3,400
TOTAL SHAREHOLDERS' INVESTMENT	4,686,428	4,451,406
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT	6,385,707	6,370,067
Common stock, non-voting
SHAREHOLDERS' INVESTMENT
Common stock
Common Stock
SHAREHOLDERS' INVESTMENT
Common stock	$ 7,743	$ 7,742

CONSOLIDATED STATEMENTS OF FIN3

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (PARENTHETICAL) - $ / shares	Apr. 30, 2017	Oct. 30, 2016
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	160,000,000	160,000,000
Preferred stock, issued shares	0	0
Common stock, non-voting
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	400,000,000	400,000,000
Common stock, issued shares	0	0
Common Stock
Common stock, par value (in dollars per share)	$ 0.01465	$ 0.01465
Common stock, authorized shares	1,600,000,000	1,600,000,000
Common stock, issued shares	528,536,346	528,483,868

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 2,187,309	$ 2,300,235	$ 4,467,536	$ 4,592,907
Cost of products sold	1,700,389	1,773,876	3,428,336	3,508,537
GROSS PROFIT	486,920	526,359	1,039,200	1,084,370
Selling, general and administrative	181,009	211,144	391,226	421,092
Goodwill impairment charge		991		991
Equity in earnings of affiliates	10,121	9,593	23,420	21,068
OPERATING INCOME	316,032	323,817	671,394	683,355
Other income and expense:
Interest and investment income	2,818	3,409	5,267	1,446
Interest expense	(3,023)	(3,029)	(6,049)	(6,436)
EARNINGS BEFORE INCOME TAXES	315,827	324,197	670,612	678,365
Provision for income taxes	104,941	108,813	224,423	227,814
NET EARNINGS	210,886	215,384	446,189	450,551
Less: Net (loss) earnings attributable to noncontrolling interest	(40)	(13)	116	93
NET EARNINGS ATTRIBUTABLE TO HORMEL FOODS CORPORATION	$ 210,926	$ 215,397	$ 446,073	$ 450,458
NET EARNINGS PER SHARE:
BASIC (in dollars per share)	$ 0.40	$ 0.41	$ 0.84	$ 0.85
DILUTED (in dollars per share)	$ 0.39	$ 0.40	$ 0.83	$ 0.83
WEIGHTED-AVERAGE SHARES OUTSTANDING:
BASIC (in shares)	528,712	529,898	528,649	529,380
DILUTED (in shares)	539,635	543,769	539,850	543,253
DIVIDENDS DECLARED PER SHARE (in dollars per share):	$ 0.170	$ 0.145	$ 0.340	$ 0.290

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NET EARNINGS	$ 210,886	$ 215,384	$ 446,189	$ 450,551
Other comprehensive income (loss), net of tax:
Foreign currency translation	907	893	(7,180)	(1,722)
Pension and other benefits	3,314	1,774	6,647	3,540
Deferred hedging	(1,184)	(650)	(2,507)	(1,948)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	3,037	2,017	(3,040)	(130)
COMPREHENSIVE INCOME	213,923	217,401	443,149	450,421
Less: Comprehensive income (loss) attributable to noncontrolling interest	8	(69)	(76)	(39)
COMPREHENSIVE INCOME ATTRIBUTABLE TO HORMEL FOODS CORPORATION	$ 213,915	$ 217,470	$ 443,225	$ 450,460

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' INVESTMENT - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Apr. 30, 2017	Apr. 30, 2017	Apr. 24, 2016	Oct. 30, 2016
Increase (Decrease) in Shareholders' Investment
Balance		$ 4,451,406	$ 4,001,393	$ 4,001,393
Net earnings	$ 210,886	446,189	450,551	890,517
Other comprehensive loss	3,037	(3,040)	(130)	(70,895)
Purchases of common stock		(49,583)		(87,885)
Stock-based compensation expense		11,861		17,829
Exercise of stock options/nonvested shares		9,297		7,511
Declared cash dividends - $0.58 per share and $0.34 per share for the year ended October 30, 2016 and six months ended April 30, 2017, respectively		(179,702)		(307,064)
Balance	4,686,428	4,686,428		4,451,406
Common Stock
Increase (Decrease) in Shareholders' Investment
Balance		7,742	7,741	7,741
Stock-based compensation expense		1		1
Exercise of stock options/nonvested shares		21		35
Shares retired		(21)		(35)
Balance	7,743	7,743		7,742
Treasury Stock
Increase (Decrease) in Shareholders' Investment
Purchases of common stock		(49,583)		(87,885)
Shares retired		49,583		87,885
Additional Paid-in Capital
Increase (Decrease) in Shareholders' Investment
Stock-based compensation expense		11,860		17,828
Exercise of stock options/nonvested shares		9,276		7,476
Shares retired		(21,136)		(25,304)
Retained Earnings
Increase (Decrease) in Shareholders' Investment
Balance		4,736,567	4,216,125	4,216,125
Net earnings		446,073		890,052
Shares retired		(28,426)		(62,546)
Declared cash dividends - $0.58 per share and $0.34 per share for the year ended October 30, 2016 and six months ended April 30, 2017, respectively		(179,702)		(307,064)
Balance	4,974,512	4,974,512		4,736,567
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Shareholders' Investment
Balance		(296,303)	(225,668)	(225,668)
Other comprehensive loss		(2,848)		(70,635)
Balance	(299,151)	(299,151)		(296,303)
Non-controlling Interest
Increase (Decrease) in Shareholders' Investment
Balance		3,400	$ 3,195	3,195
Net earnings		116		465
Other comprehensive loss		(192)		(260)
Balance	$ 3,324	$ 3,324		$ 3,400

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' INVESTMENT (PARENTHETICAL) - $ / shares	3 Months Ended		6 Months Ended		12 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016	Oct. 30, 2016
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' INVESTMENT
Declared cash dividends (in dollars per share)	$ 0.170	$ 0.145	$ 0.340	$ 0.290	$ 0.58

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016
OPERATING ACTIVITIES
Net earnings	$ 446,189	$ 450,551
Adjustments to reconcile to net cash provided by operating activities:
Depreciation	59,185	59,863
Amortization of intangibles	4,143	4,045
Goodwill impairment charge		991
Equity in earnings of affiliates, net of dividends	(10,898)	(6,524)
Provision for deferred income taxes	11,336	(2,397)
Loss on property/equipment sales and plant facilities	1,285	88
Non-cash investment activities	(2,618)	(375)
Stock-based compensation expense	11,861	14,178
Excess tax benefit from stock-based compensation	(20,704)	(36,456)
Changes in operating assets and liabilities, net of acquisitions:
Decrease in accounts receivable	42,036	57,191
Increase in inventories	(47,792)	(34,052)
(Increase) decrease in prepaid expenses and other current assets	(21,790)	2,781
Increase in pension and post-retirement benefits	6,468	2,346
Decrease in accounts payable and accrued expenses	(215,253)	(146,397)
(Decrease) increase in net income taxes payable	(2,292)	43,302
NET CASH PROVIDED BY OPERATING ACTIVITIES	261,156	409,135
INVESTING ACTIVITIES
Proceeds from sale of business	135,944
Purchases of property/equipment	(76,975)	(99,852)
Proceeds from sales of property/equipment	1,157	2,709
Decrease in investments, equity in affiliates, and other assets	2,669	12,178
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES	62,795	(84,965)
FINANCING ACTIVITIES
Principal payments on short-term debt		(185,000)
Dividends paid on common stock	(166,507)	(142,878)
Share repurchase	(49,583)	(6,358)
Proceeds from exercise of stock options	8,879	8,370
Excess tax benefit from stock-based compensation	20,704	36,456
NET CASH USED IN FINANCING ACTIVITIES	(186,507)	(289,410)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(3,686)	(2,118)
INCREASE IN CASH AND CASH EQUIVALENTS	133,758	32,642
Cash and cash equivalents at beginning of year	415,143	347,239
CASH AND CASH EQUIVALENTS AT END OF QUARTER	$ 548,901	$ 379,881

GENERAL

GENERAL	6 Months Ended
	Apr. 30, 2017
GENERAL
GENERAL	NOTE A GENERAL Basis of Presentation The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with generally accepted accounting principles for interim financial information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the full year. The balance sheet at October 30, 2016, has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 30, 2016. Fiscal 2017 is a 52-week year as compared with fiscal 2016, which was 53 weeks, with the additional week occurring in the fourth quarter. Reclassifications Certain reclassifications of previously reported amounts have been made to conform to the current year presentation. The reclassifications had no impact on net earnings or operating cash flows as previously reported. Assets Held for Sale The Company classifies assets as held for sale when management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. The net assets of the business held for sale are then recorded at the lower of their current carrying value or the fair market value, less costs to sell. See additional discussion regarding the Company’s assets held for sale in Note E. Investments The Company maintains a rabbi trust to fund certain supplemental executive retirement plans and deferred income plans. Under the plans, the participants can defer certain types of compensation and elect to receive a return on the deferred amounts based on the changes in fair value of various investment options, primarily a variety of mutual funds. The Company has corporate-owned life insurance policies on certain participants in the deferred compensation plans. The cash surrender value of the policies is included in other assets on the Consolidated Statements of Financial Position. The securities held by the trust are classified as trading securities. Therefore, unrealized gains and losses associated with these investments are included in the Company’s earnings. Securities held by the trust generated gains of $1.8 million and $3.3 million for the second quarter and six months ended April 30, 2017, respectively, compared to gains of $2.9 million and $1.2 million for the second quarter and six months ended April 24, 2016. Supplemental Cash Flow Information Non-cash investment activities presented on the Consolidated Statements of Cash Flows generally consist of unrealized gains or losses on the Company’s rabbi trust. The noted investments are included in other assets on the Consolidated Statements of Financial Position. Changes in the value of these investments are included in the Company’s net earnings and are presented in the Consolidated Statements of Operations as either interest and investment income (loss) or interest expense, as appropriate. Guarantees The Company enters into various agreements guaranteeing specified obligations of affiliated parties. The Company’s guarantees either terminate in one year or remain in place until such time as the Company revokes the agreement. The Company currently provides revocable standby letters of credit totaling $4.0 million to guarantee obligations that may arise under workers compensation claims of an affiliated party. This potential obligation is not reflected in the Company’s Consolidated Statements of Financial Position. New Accounting Pronouncements In May 2014, the FASB issued ASC 606, Revenue from Contracts with Customers . This topic converges the guidance within U.S. generally accepted accounting principles (GAAP) and international financial reporting standards and supersedes ASC 605, Revenue Recognition . The new standard requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions which were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. On July 8, 2015, the FASB approved a one-year deferral of the effective date. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period, and early adoption is permitted for annual reporting periods beginning after December 15, 2016. The updated guidance is to be applied either retrospectively or by using a cumulative effect adjustment. Accordingly, the Company expects to adopt the provisions of this new accounting standard at the beginning of fiscal year 2019, and is currently assessing the impact on its consolidated financial statements with a focus on arrangements with customers. In April 2015, the FASB updated the guidance within ASC 835, Interest . The update provides guidance on simplifying the presentation of debt issuance costs. The amendments require debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The updated guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company retrospectively adopted the new provisions of this accounting standard at the beginning of fiscal year 2017, and adoption did not have a material impact on its consolidated financial statements. In May 2015, the FASB updated the guidance within ASC 820, Fair Value Measurements and Disclosures . The update provides guidance on the disclosures for investments in certain entities that calculate net asset value (NAV) per share (or its equivalent). The amendments remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share (or its equivalent) as a practical expedient. The updated guidance is to be applied retrospectively and is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company adopted the new provisions of this accounting standard at the beginning of fiscal year 2017, and adoption did not have a material impact on its consolidated financial statements. In February 2016, the FASB updated the guidance within ASC 842, Leases . The update requires lessees to put most leases on their balance sheets while recognizing expenses on their income statements in a manner similar to current U.S. GAAP. The guidance also eliminates current real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted and the modified retrospective method is to be applied. Accordingly, the Company expects to adopt the provisions of this new accounting standard at the beginning of fiscal year 2020, and is currently assessing the impact on its consolidated financial statements. In March 2016, the FASB updated the guidance within ASC 718, Compensation-Stock Compensation. The update simplifies several aspects of the accounting for share-based payment transactions , including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted in any interim or annual period, with adjustments reflected as of the beginning of the fiscal year. Accordingly, the Company expects to adopt the provisions of this new accounting standard at the beginning of fiscal year 2018, and is currently assessing the impact on its consolidated financial statements. In June 2016, the FASB updated the guidance within ASC 326, Financial Instruments - Credit Losses . The update provides guidance on the measurement of credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The amendments replace the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to explain credit loss estimates. The updated guidance is to be applied on a modified-retrospective approach and is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for all entities for fiscal years beginning after December 15, 2018, and interim periods therein. The Company is currently assessing the timing and impact of adopting the updated provisions. In August 2016, the FASB updated the guidance within ASC 230, Statement of Cash Flows. The update makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted provided all amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The Company is currently assessing the timing and impact of adopting the updated provisions. In October 2016, the FASB updated the guidance within ASC 740, Income Taxes . The updated guidance requires the recognition of the income tax consequences of an intra-entity asset transfer, other than transfers of inventory, when the transfer occurs. For intra-entity transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The updated guidance is effective for reporting periods beginning after December 15, 2017, with early adoption permitted only within the first interim period of a fiscal year. The guidance is required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently assessing the timing and impact of adopting the updated provisions. In January 2017, the FASB updated the guidance within ASC 350, Intangibles—Goodwill and Other. The updated guidance eliminates the second step of the two-step impairment test. The updated guidance modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An impairment charge should be made if a reporting unit’s carrying amount exceeds its fair value, limited to the amount of goodwill allocated to that reporting unit. The updated guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The updated guidance is required to be adopted on a prospective basis. The Company is currently assessing the timing and impact of adopting the updated provisions. In March 2017, the FASB updated the guidance within ASC 715, Compensation – Retirement Benefits. The updated guidance requires an employer to report the service cost component of net periodic pension cost and net periodic postretirement benefit cost in the same line item or items as other compensation costs. The updated guidance also requires the other components of net periodic pension cost and net periodic postretirement benefit cost to be presented in the income statement separately from the service cost component and outside income from operations. Additionally, only the service cost component is eligible for capitalization, when applicable. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The updated guidance should be applied retrospectively for the presentation of the service cost component and other components of net benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net benefit cost. The Company is currently assessing the timing and impact of adopting the updated provisions.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Apr. 30, 2017
ACQUISITIONS
ACQUISITIONS	NOTE B ACQUISITIONS On May 26, 2016, the Company acquired Justin’s, LLC (Justin’s) for a final purchase price of $280.9 million. The transaction provides a cash flow benefit resulting from the amortization of the tax basis of assets, the net present value of which is approximately $70.0 million. The purchase price was funded by the Company with cash on hand and by utilizing short-term financing. Primary assets acquired include goodwill of $186.4 million and intangibles of $89.9 million. Justin’s is a pioneer in nut butter-based snacking and this acquisition allows the Company to enhance its presence in the specialty natural and organic nut butter category, complementing the Company’s SKIPPY peanut butter products. Operating results for this acquisition have been included in the Company’s Consolidated Statements of Operations from the date of acquisition and are reflected in the Grocery Products segment.

INVENTORIES

INVENTORIES	6 Months Ended
	Apr. 30, 2017
INVENTORIES
INVENTORIES	NOTE C INVENTORIES Principal components of inventories are: (in thousands) April 30, October 30, Finished products $ $ Raw materials and work-in-process Materials and supplies Total $ $

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	6 Months Ended
	Apr. 30, 2017
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	NOTE D GOODWILL AND INTANGIBLE ASSETS The carrying amount of goodwill for the six months ended April 30, 2017, is presented in the table below. There were no changes to the carrying amount of goodwill in the second quarter of fiscal 2017. The reduction during the first six months is due to the sale of Farmer John on January 3, 2017. See additional discussion regarding the Company’s assets held for sale in Note E. (in thousands) Grocery Refrigerated JOTS Specialty International Total Balance as of October 30, 2016 $ $ $ $ $ $ Goodwill sold - ) - - - ) Balance as of April 30, 2017 $ $ $ $ $ $ The gross carrying amount and accumulated amortization for definite-lived intangible assets are presented in the table below. April 30, 2017 October 30, 2016 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Accumulated Amortization Customer lists/relationships $ $ $ $ Formulas and recipes Other intangibles Total $ $ $ $ Amortization expense was $2.0 million and $4.1 million for the second quarter and six months ended April 30, 2017, respectively, compared to $1.9 million and $4.0 million for the second quarter and six months ended April 24, 2016. Estimated annual amortization expense for the five fiscal years after October 30, 2016, is as follows: (in millions) 2017 $ 8.1 2018 2019 2020 2021 The carrying amounts for indefinite-lived intangible assets are presented in the table below. (in thousands) April 30, 2017 October 30, 2016 Brands/tradenames/trademarks $ $ Other intangibles Total $ $

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE	6 Months Ended
	Apr. 30, 2017
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE	NOTE E ASSETS HELD FOR SALE At the end of fiscal year 2016, the Company was actively marketing Clougherty Packing, LLC, parent company of Farmer John and Saag’s Specialty Meats, along with PFFJ, LLC, farm operations in California, Arizona, and Wyoming (Farmer John). Through this process, the Company identified the specific assets and liabilities to be sold and allocated goodwill based on the relative fair values of the assets held for sale and the assets that would be retained by the Company. In November 2016, the Company entered into an agreement for the sale and the transaction closed on January 3, 2017. The purchase price was $145 million in cash, pending final working capital adjustments. The assets held for sale were reported within the Company’s Refrigerated Foods segment. The assets held for sale were not material to the Company’s annual net sales, net earnings, or earnings per share. Amounts classified as assets and liabilities held for sale on October 30, 2016, were presented on the Company’s Consolidated Statement of Financial Position within their respective accounts, and include the following: Assets held for sale (in thousands) Current assets $ Goodwill Intangibles Property, plant and equipment Total assets held for sale $ Liabilities held for sale (in thousands) Total current liabilities held for sale $

PENSION AND OTHER POST-RETIREME

PENSION AND OTHER POST-RETIREMENT BENEFITS	6 Months Ended
	Apr. 30, 2017
PENSION AND OTHER POST-RETIREMENT BENEFITS
PENSION AND OTHER POST-RETIREMENT BENEFITS	NOTE F PENSION AND OTHER POST-RETIREMENT BENEFITS Net periodic benefit cost for pension and other post-retirement benefit plans consists of the following: Pension Benefits Three Months Ended Six Months Ended (in thousands) April 30, 2017 April 24, 2016 April 30, 2017 April 24, 2016 Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of prior service cost Recognized actuarial loss Net periodic cost $ $ $ $ Post-retirement Benefits Three Months Ended Six Months Ended (in thousands) April 30, 2017 April 24, 2016 April 30, 2017 April 24, 2016 Service cost $ $ $ $ Interest cost Amortization of prior service cost Recognized actuarial loss Net periodic cost $ $ $ $

DERIVATIVES AND HEDGING

DERIVATIVES AND HEDGING	6 Months Ended
	Apr. 30, 2017
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING	NOTE G DERIVATIVES AND HEDGING The Company uses hedging programs to manage price risk associated with commodity purchases. These programs utilize futures contracts and swaps to manage the Company’s exposure to price fluctuations in the commodities markets. The Company has determined its programs which are designated as hedges are highly effective in offsetting the changes in fair value or cash flows generated by the items hedged. Cash Flow Hedges: The Company utilizes corn and lean hog futures to offset price fluctuation in the Company’s future direct grain and hog purchases. The financial instruments are designated and accounted for as cash flow hedges, and the Company measures the effectiveness of the hedges at least quarterly. Effective gains or losses related to these cash flow hedges are reported in accumulated other comprehensive loss (AOCL) and reclassified into earnings, through cost of products sold, in the period or periods in which the hedged transactions affect earnings. Any gains or losses related to hedge ineffectiveness are recognized in the current period cost of products sold. The Company typically does not hedge its grain exposure beyond the next two upcoming fiscal years and its hog exposure beyond the next fiscal year. As of April 30, 2017, and October 30, 2016, the Company had the following outstanding commodity futures contracts that were entered into to hedge forecasted purchases: Volume Commodity April 30, 2017 October 30, 2016 Corn 15.7 million bushels 22.4 million bushels Lean hogs 0.1 million cwt - As of April 30, 2017, the Company has included in AOCL, hedging gains of $5.2 million (before tax) relating to these positions, compared to gains of $9.2 million (before tax) as of October 30, 2016. The Company expects to recognize the majority of these gains over the next 12 months. Fair Value Hedges: The Company utilizes futures to minimize the price risk assumed when forward priced contracts are offered to the Company’s commodity suppliers. The intent of the program is to make the forward priced commodities cost nearly the same as cash market purchases at the date of delivery. The futures contracts are designated and accounted for as fair value hedges, and the Company measures the effectiveness of the hedges at least quarterly. Changes in the fair value of the futures contracts, along with the gain or loss on the hedged purchase commitment, are marked-to-market through earnings and are recorded on the Consolidated Statements of Financial Position as a current asset and liability, respectively. Effective gains or losses related to these fair value hedges are recognized through cost of products sold in the period or periods in which the hedged transactions affect earnings. Any gains or losses related to hedge ineffectiveness are recognized in the current period cost of products sold. As of April 30, 2017, and October 30, 2016, the Company had the following outstanding commodity futures contracts designated as fair value hedges: Volume Commodity April 30, 2017 October 30, 2016 Corn 1.2 million bushels 3.6 million bushels Lean hogs 0.1 million cwt 0.2 million cwt Other Derivatives: The Company holds certain futures and options contract positions as part of a merchandising program and to manage the Company’s exposure to fluctuations in commodity markets. The Company has not applied hedge accounting to these positions. As of April 30, 2017, and October 30, 2016, the Company had the following outstanding futures related to these programs: Volume Commodity April 30, 2017 October 30, 2016 Corn 0.3 million bushels 4.0 million bushels Soybean meal - 11,000 tons Fair Values: The fair values of the Company’s derivative instruments (in thousands) as of April 30, 2017, and October 30, 2016, were as follows: Fair Value (1) Location on Consolidated Statements of Financial April 30, 2017 October 30, 2016 Asset Derivatives Derivatives Designated as Hedges Commodity contracts Other current assets $ $ Derivatives not Designated as Hedges Commodity contracts Other current assets Total Asset Derivatives $ $ (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. Derivative Gains and Losses: Gains or losses (before tax, in thousands) related to the Company’s derivative instruments for the second quarter ended April 30, 2017, and April 24, 2016, were as follows: Gain/(Loss) (1) Location on Gain/(Loss) (1) Gain/(Loss) (2) (4) Three Months Ended Consolidated Three Months Ended Three Months Ended Cash Flow Hedges April 30, April 24, Statements April 30, April 24, April 30, April 24, Commodity contracts $ $ Cost of products sold $ $ $ $ Location on Gain/(Loss) (3) Gain/(Loss) (2) (5) Consolidated Three Months Ended Three Months Ended Fair Value Hedges Statements April 30, April 24, April 30, April 24, Commodity contracts Cost of products sold $ $ $ $ Location on Gain/(Loss) Consolidated Three Months Ended Derivatives not Statements April 30, April 24, Commodity contracts Cost of products sold $ $ Derivative Gains and Losses: Gains or losses (before tax, in thousands) related to the Company’s derivative instruments for the six months ended April 30, 2017, and April 24, 2016, were as follows: Gain/(Loss) (1) Location on Gain/(Loss) (1) Gain/(Loss) (2) (4) Six Months Ended Consolidated Six Months Ended Six Months Ended Cash Flow Hedges April 30, April 24, Statements April 30, April 24, April 30, April 24 Commodity contracts $ $ Cost of products sold $ $ $ $ Location on Gain/(Loss) (3) Gain/(Loss) (2) (5) Consolidated Six Months Ended Six Months Ended Fair Value Hedges Statements April 30, 2017 April 24, 2016 April 30, April 24, Commodity contracts Cost of products sold $ $ $ $ Location on Gain/(Loss) Consolidated Six Months Ended Derivatives not Statements April 30, April 24, Commodity contracts Cost of products sold $ $ (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 second quarter or first six months. (3) Amounts represent losses on commodity contracts designated as fair value hedges that were closed during the second quarter or first six months, 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 second quarter or first six months. (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 second quarter or first six months.

INVESTMENTS IN AND RECEIVABLES

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES	6 Months Ended
	Apr. 30, 2017
INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES
INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES	NOTE H INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES The Company accounts for its majority-owned operations under the consolidation method. Investments in which the Company owns a minority interest, and for which there are no other indicators of control, are accounted for under the equity or cost method. These investments, along with any related receivables from affiliates, are included in the Consolidated Statements of Financial Position as investments in and receivables from affiliates. Investments in and receivables from affiliates consists of the following: (in thousands) Segment % Owned April 30, October 30, MegaMex Foods, LLC Grocery Products 50% $ $ Foreign Joint Ventures International & Other Various (26-40%) Total $ $ Equity in earnings of affiliates consists of the following: Three Months Ended Six Months Ended (in thousands) Segment April 30, April 24, April 30, April 24, MegaMex Foods, LLC Grocery Products $ $ $ $ Foreign Joint Ventures International & Other Total $ $ $ $ Dividends received from affiliates for the second quarter and six months ended April 30, 2017, were $10.0 million and $12.5 million, respectively, compared to $9.5 million and $14.5 million, respectively, for the second quarter and six months ended April 24, 2016. The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $14.9 million is remaining as of April 30, 2017. This difference is being amortized through equity in earnings of affiliates.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	6 Months Ended
	Apr. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE LOSS
ACCUMULATED OTHER COMPREHENSIVE LOSS	NOTE I Components of accumulated other comprehensive loss are as follows: ` (in thousands) Foreign Pension & Deferred Accumulated Balance at January 29, 2017 $ $ $ $ Unrecognized gains (losses) Gross - Tax effect - - Reclassification into net earnings Gross - 5,321 (1) (1,753) (2) Tax effect - Net of tax amount Balance at April 30, 2017 $ $ $ $ (in thousands) Foreign Pension & Deferred Accumulated Balance at October 30, 2016 $ $ $ $ Unrecognized gains (losses) Gross - Tax effect - - Reclassification into net earnings Gross - 10,673 (1) (3,222) (2) Tax effect - Net of tax amount Balance at April 30, 2017 $ $ $ $ (1) Included in the computation of net periodic cost (see Note F “Pension and Other Post-Retirement Benefits” for additional details). (2) Included in cost of products sold in the Consolidated Statements of Operations.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Apr. 30, 2017
INCOME TAXES
INCOME TAXES	NOTE J The amount of unrecognized tax benefits, including interest and penalties, is recorded in other long-term liabilities. If recognized as of April 30, 2017, and April 24, 2016, $19.8 million and $18.3 million, respectively, would impact the Company’s effective tax rate. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense. Interest and penalties included in income tax expense for the second quarter and first six months of fiscal 2017 was $(0.1) million and $0.1 million, respectively, compared to $0.7 million and $0.4 million for the comparable quarter and first six months of fiscal 2016. The amount of accrued interest and penalties at April 30, 2017, and April 24, 2016, associated with unrecognized tax benefits was $2.7 million and $2.9 million, respectively. The Company is regularly audited by federal and state taxing authorities. The United States Internal Revenue Service (I.R.S.) concluded their examination of fiscal year 2015 in the first quarter of fiscal 2017. The Company has elected to participate in the Compliance Assurance Process (CAP) for fiscal years 2016 and 2017. The objective of CAP is to contemporaneously work with the I.R.S. to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2011. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change based on the status of the examinations, it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Apr. 30, 2017
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION	NOTE K STOCK-BASED COMPENSATION The Company issues stock options and nonvested shares as part of its stock incentive plans for employees and non-employee directors. The Company’s policy is to grant options with the exercise price equal to the market price of the common stock on the date of grant. Options typically vest over four years and expire ten years after the date of the grant. The Company recognizes stock-based compensation expense ratably over the shorter of the requisite service period or vesting period. The fair value of stock-based compensation granted to retirement-eligible individuals is expensed at the time of grant. A reconciliation of the number of options outstanding and exercisable (in thousands) as of April 30, 2017, and changes during the six months then ended, is as follows: Shares Weighted- Exercise Price Weighted- Aggregate Outstanding at October 30, 2016 $ 16.05 Granted Exercised Forfeited Outstanding at April 30, 2017 $ 17.80 5.0 years $ 558,326 Exercisable at April 30, 2017 $ 14.46 4.1 years $ 532,730 The weighted-average grant date fair value of stock options granted and the total intrinsic value of options exercised (in thousands) during the second quarter and first six months of fiscal years 2017 and 2016, are as follows: Three Months Ended Six Months Ended April 30, April 24, April 30, April 24, Weighted-average grant date fair value $ 7.03 $ 8.36 $ 6.41 $ 7.82 Intrinsic value of exercised options $ 9,070 $ 45,081 $ 61,088 $ 103,216 The fair value of each option award is calculated on the date of grant using the Black-Scholes valuation model utilizing the following weighted-average assumptions: Three Months Ended Six Months Ended April 30, April 24, April 30, April 24, Risk-free interest rate Dividend yield Stock price volatility Expected option life 8 years 8 years 8 years 8 years As part of the annual valuation process, the Company reassesses the appropriateness of the inputs used in the valuation models. The Company establishes the risk-free interest rate using stripped U.S. Treasury yields as of the grant date where the remaining term is approximately the expected life of the option. The dividend yield is set based on the dividend rate approved by the Company’s Board of Directors and the stock price on the grant date. The expected volatility assumption is set based primarily on historical volatility. As a reasonableness test, implied volatility from exchange traded options is also examined to validate the volatility range obtained from the historical analysis. The expected life assumption is set based on an analysis of past exercise behavior by option holders. In performing the valuations for option grants, the Company has not stratified option holders as exercise behavior has historically been consistent across all employee and non-employee director groups. Nonvested shares vest on the earlier of the day before the Company’s next annual meeting date or one year. A reconciliation of the nonvested shares (in thousands) as of April 30, 2017, and changes during the six months then ended, is as follows: Shares Weighted- Nonvested at October 30, 2016 $ 41.01 Granted Vested Nonvested at April 30, 2017 $ 35.62 The weighted-average grant date fair value of nonvested shares granted, the total fair value (in thousands) of nonvested shares granted, and the fair value (in thousands) of shares that have vested during the first six months of fiscal years 2017 and 2016, are as follows: Six Months Ended April 30, April 24, Weighted-average grant date fair value $ 35.62 $ 41.01 Fair value of nonvested shares granted $ 2,080 $ 1,920 Fair value of shares vested $ 1,920 $ 1,920 Stock-based compensation expense, along with the related income tax benefit, for the second quarter and first six months of fiscal years 2017 and 2016 is presented in the table below. Three Months Ended Six Months Ended (in thousands) April 30, April 24, April 30, April 24, Stock-based compensation expense recognized $ 4,621 $ 7,016 $ 11,861 $ 14,178 Income tax benefit recognized (1,753) (2,662) (4,500) (5,379) After-tax stock-based compensation expense $ 2,868 $ 4,354 $ 7,361 $ 8,799 At April 30, 2017, there was $15.2 million of total unrecognized compensation expense from stock-based compensation arrangements granted under the plans. This compensation is expected to be recognized over a weighted-average period of approximately 2.5 years. During the second quarter and six months ended April 30, 2017, cash received from stock option exercises was $1.5 million and $8.9 million, respectively, compared to $4.9 million and $8.4 million for the second quarter and six months ended April 24, 2016. The total tax benefit to be realized for tax deductions from these option exercises for the second quarter and six months ended April 30, 2017, was $3.4 million and $23.0 million, respectively, compared to $17.2 million and $39.2 million in the comparable periods of fiscal 2016. Shares issued for option exercises and nonvested shares may be either authorized but unissued shares, or shares of treasury stock acquired in the open market or otherwise.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Apr. 30, 2017
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE L FAIR VALUE MEASUREMENTS Pursuant to the provisions of ASC 820, Fair Value Measurements and Disclosures (ASC 820), the Company measures certain assets and liabilities at fair value or discloses the fair value of certain assets and liabilities recorded at cost in the consolidated financial statements. Fair value is calculated as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). ASC 820 establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of three levels based on the inputs used in the valuation. Assets and liabilities are classified in their entirety based on the lowest level of input significant to the fair value measurement. The three levels are defined as follows: Level 1: Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets. Level 3: Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances. The Company’s financial assets and liabilities are measured at fair value on a recurring basis as of April 30, 2017, and October 30, 2016, and their level within the fair value hierarchy, are presented in the tables below. Fair Value Measurements at April 30, 2017 (in thousands) Fair Value at Quoted Prices Significant Significant Assets at Fair Value Cash and cash equivalents (1) $ $ $ - $ - Other trading securities (2) - - Commodity derivatives (3) - - Total Assets at Fair Value $ $ $ $ - Liabilities at Fair Value Deferred compensation (2) $ $ - $ $ - Total Liabilities at Fair Value $ $ - $ $ - Fair Value Measurements at October 30, 2016 (in thousands) Fair Value at Quoted Prices Significant Significant Assets at Fair Value Cash and cash equivalents (1) $ 415,143 $ 415,143 $ - $ - Other trading securities (2) - - Commodity derivatives (3) - - Total Assets at Fair Value $ 540,542 $ 418,237 $ 122,305 $ - Liabilities at Fair Value Deferred compensation (2) $ 60,949 $ - $ 60,949 $ - Total Liabilities at Fair Value $ 60,949 $ - $ 60,949 $ - The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above: (1) The Company’s cash equivalents consist primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts. As these investments have a maturity date of three months or less, the carrying value approximates fair value. (2) A majority of the funds held in the rabbi trust relate to the supplemental executive retirement plans and have been invested in fixed income funds managed by a third party. The declared rate on these funds is set based on a formula using the yield of the general account investment portfolio supporting the fund, adjusted for expenses and other charges. The rate is guaranteed for one year at issue, and may be reset annually on the policy anniversary, subject to a guaranteed minimum rate. As the value is based on adjusted market rates, and the fixed rate is only reset on an annual basis, these funds are classified as Level 2. The remaining funds held are also managed by a third party insurance policy, the values of which represent their cash surrender value based on the fair value of the underlying investments in the account and include equity securities, money market accounts, bond funds, or other portfolios for which there is an active quoted market. Therefore these policies are also classified as Level 2. The related deferred compensation liabilities are included in other long-term liabilities on the Consolidated Statements of Financial Position with investment options generally mirroring those funds held by the rabbi trust. Therefore these investment balances are classified as Level 2. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based on a specified percentage of the United States Internal Revenue Service (I.R.S.) Applicable Federal Rates. These balances are classified as Level 2. (3) The Company’s commodity derivatives represent futures contracts used in its hedging or other programs to offset price fluctuations associated with purchases of corn, soybean meal, and hogs, and to minimize the price risk assumed when forward priced contracts are offered to the Company’s commodity suppliers. The Company’s futures contracts for corn and soybean meal are traded on the Chicago Board of Trade, while futures contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available and these contracts are classified as Level 1. All derivatives are reviewed for potential credit risk and risk of nonperformance. 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 net balance for each program is included in other current assets or accounts payable, as appropriate, in the Consolidated Statements of Financial Position. As of April 30, 2017, the Company has recognized the right to reclaim net cash collateral of $3.6 million from various counterparties (including $12.3 million of realized gains offset by cash owed of $8.7 million on closed positions). As of October 30, 2016, the Company had recognized the right to reclaim net cash collateral of $3.1 million from various counterparties (including $7.1 million of realized gains offset by cash owed of $4.0 million on closed positions). The Company’s financial assets and liabilities include accounts receivable, accounts payable, and other liabilities, for which carrying value approximates fair value. The Company does not carry its long-term debt at fair value in its Consolidated Statements of Financial Position. Based on borrowing rates available to the Company for long-term financing with similar terms and average maturities, the fair value of long-term debt, utilizing discounted cash flows (Level 2), was $269.2 million as of April 30, 2017, and $274.9 million as of October 30, 2016. In accordance with the provisions of ASC 820, the Company measures certain nonfinancial assets and liabilities at fair value, which are recognized or disclosed on a nonrecurring basis (e.g. goodwill, intangible assets, and property, plant and equipment). During the second quarter of fiscal year 2016, a $1.0 million goodwill impairment charge was recorded for the portion of DCB assets held for sale which was based on the valuation of these assets as implied by the agreed-upon sales price. See additional discussion regarding the Company’s assets held for sale in Note E. During the six months ended April 30, 2017, there were no material remeasurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.

EARNINGS PER SHARE DATA

EARNINGS PER SHARE DATA	6 Months Ended
	Apr. 30, 2017
EARNINGS PER SHARE DATA
EARNINGS PER SHARE DATA	NOTE M EARNINGS PER SHARE DATA The reported net earnings attributable to the Company were used when computing basic and diluted earnings per share. The following table sets forth the shares used as the denominator for those computations: Three Months Ended Six Months Ended (in thousands) April 30, April 24, April 30, April 24, Basic weighted-average shares outstanding Dilutive potential common shares Diluted weighted-average shares outstanding For the second quarter and six months ended April 30, 2017, 4.5 million and 3.9 million, respectively, weighted-average stock options were not included in the computation of dilutive potential common shares since their inclusion would have had an antidilutive effect on earnings per share, compared to none and 0.5 million, respectively, for the second quarter and six months ended April 24, 2016.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Apr. 30, 2017
SEGMENT REPORTING
SEGMENT REPORTING	NOTE N SEGMENT REPORTING The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. The Grocery Products segment consists primarily of the processing, marketing, and sale of shelf-stable food products sold predominantly in the retail market. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture. The Refrigerated Foods segment consists primarily of the processing, marketing, and sale of branded and unbranded pork, beef, chicken, and turkey products products for retail, foodservice, and fresh product customers. The Jennie-O Turkey Store segment consists primarily of the processing, marketing, and sale of branded and unbranded turkey products for retail, foodservice, and fresh product customers. The Specialty Foods segment consists of the processing, marketing, and sale of nutritional and private label shelf-stable products to retail, foodservice, and industrial customers. The International & Other segment includes Hormel Foods International which manufactures, markets, and sells Company products internationally. This segment also includes the results from the Company’s international joint ventures. Intersegment sales are recorded at approximate cost and are eliminated in the Consolidated Statements of Operations. The Company does not allocate investment income, interest expense, and interest income to its segments when measuring performance. The Company also retains various other income and unallocated expenses at corporate. Equity in earnings of affiliates is included in segment operating profit; however, earnings attributable to the Company’s noncontrolling interests are excluded. These items are included below as net interest and investment expense (income), general corporate expense, and noncontrolling interest when reconciling to earnings before income taxes. Sales and operating profits for each of the Company’s reportable segments and reconciliation to earnings before income taxes are set forth below. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent these segments, if operated independently, would report the operating profit and other financial information shown below. Three Months Ended Six Months Ended (in thousands) April 30, April 24, April 30, April 24, Sales to Unaffiliated Customers Grocery Products $ 432,205 $ 401,472 $ 849,950 $ 793,690 Refrigerated Foods 1,027,486 1,092,479 2,150,525 2,254,600 Jennie-O Turkey Store 388,237 423,540 809,226 795,606 Specialty Foods 208,214 272,484 400,843 510,263 International & Other 131,167 110,260 256,992 238,748 Total $ 2,187,309 $ 2,300,235 $ 4,467,536 $ 4,592,907 Intersegment Sales Grocery Products $ - $ - $ - $ - Refrigerated Foods 1,677 3,657 3,816 5,987 Jennie-O Turkey Store 27,560 30,280 55,816 60,683 Specialty Foods 10 9 15 9 International & Other - - - - Total 29,247 33,946 59,647 66,679 Intersegment elimination (29,247) (33,946) (59,647) (66,679) Total $ - $ - $ - $ - Net Sales Grocery Products $ 432,205 $ 401,472 $ 849,950 $ 793,690 Refrigerated Foods 1,029,163 1,096,136 2,154,341 2,260,587 Jennie-O Turkey Store 415,797 453,820 865,042 856,289 Specialty Foods 208,224 272,493 400,858 510,272 International & Other 131,167 110,260 256,991 238,748 Intersegment elimination (29,247) (33,946) (59,647) (66,679) Total $ 2,187,309 $ 2,300,235 $ 4,467,536 $ 4,592,907 Segment Operating Profit Grocery Products $ 77,487 $ 67,110 $ 143,114 $ 132,383 Refrigerated Foods 130,194 130,002 304,002 296,910 Jennie-O Turkey Store 63,786 89,678 131,966 180,981 Specialty Foods 30,810 36,853 57,559 63,646 International & Other 19,617 14,244 45,080 38,531 Total segment operating profit 321,894 337,887 681,721 712,451 Net interest and investment expense (income) 205 (380) 782 4,990 General corporate expense 5,822 14,057 10,443 29,189 Less: Noncontrolling interest (40) (13) 116 93 Earnings before income taxes $ 315,827 $ 324,197 $ 670,612 $ 678,365

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Apr. 30, 2017
INVENTORIES
Principal components of inventories	(in thousands) April 30, October 30, Finished products $ $ Raw materials and work-in-process Materials and supplies Total $ $

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	6 Months Ended
	Apr. 30, 2017
GOODWILL AND INTANGIBLE ASSETS
Schedule of changes in the carrying amount of goodwill	(in thousands) Grocery Refrigerated JOTS Specialty International Total Balance as of October 30, 2016 $ $ $ $ $ $ Goodwill sold - ) - - - ) Balance as of April 30, 2017 $ $ $ $ $ $
Schedule of gross carrying amount and accumulated amortization for definite-lived intangible assets	April 30, 2017 October 30, 2016 (in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Accumulated Amortization Customer lists/relationships $ $ $ $ Formulas and recipes Other intangibles Total $ $ $ $
Schedule of estimated annual amortization expense	Estimated annual amortization expense for the five fiscal years after October 30, 2016, is as follows: (in millions) 2017 $ 8.1 2018 2019 2020 2021
Schedule of carrying amounts for indefinite-lived intangible assets	(in thousands) April 30, 2017 October 30, 2016 Brands/tradenames/trademarks $ $ Other intangibles Total $ $

ASSETS HELD FOR SALE (Tables)

ASSETS HELD FOR SALE (Tables)	6 Months Ended
	Apr. 30, 2017
ASSETS HELD FOR SALE
Schedule of assets and liabilities held for sale	Assets held for sale (in thousands) Current assets $ Goodwill Intangibles Property, plant and equipment Total assets held for sale $ Liabilities held for sale (in thousands) Total current liabilities held for sale $

PENSION AND OTHER POST-RETIRE26

PENSION AND OTHER POST-RETIREMENT BENEFITS (Tables)	6 Months Ended
	Apr. 30, 2017
PENSION AND OTHER POST-RETIREMENT BENEFITS
Schedule of net periodic cost of defined benefit plans	Pension Benefits Three Months Ended Six Months Ended (in thousands) April 30, 2017 April 24, 2016 April 30, 2017 April 24, 2016 Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of prior service cost Recognized actuarial loss Net periodic cost $ $ $ $ Post-retirement Benefits Three Months Ended Six Months Ended (in thousands) April 30, 2017 April 24, 2016 April 30, 2017 April 24, 2016 Service cost $ $ $ $ Interest cost Amortization of prior service cost Recognized actuarial loss Net periodic cost $ $ $ $

DERIVATIVES AND HEDGING (Tables

DERIVATIVES AND HEDGING (Tables)	6 Months Ended
	Apr. 30, 2017
DERIVATIVES AND HEDGING
Schedule of fair values of derivative instruments	The fair values of the Company’s derivative instruments (in thousands) as of April 30, 2017, and October 30, 2016, were as follows: Fair Value (1) Location on Consolidated Statements of Financial April 30, 2017 October 30, 2016 Asset Derivatives Derivatives Designated as Hedges Commodity contracts Other current assets $ $ Derivatives not Designated as Hedges Commodity contracts Other current assets Total Asset Derivatives $ $ (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 second quarter ended April 30, 2017, and April 24, 2016, were as follows: Gain/(Loss) (1) Location on Gain/(Loss) (1) Gain/(Loss) (2) (4) Three Months Ended Consolidated Three Months Ended Three Months Ended Cash Flow Hedges April 30, April 24, Statements April 30, April 24, April 30, April 24, Commodity contracts $ (141) $ (1,620) Cost of products sold $ 1,753 $ (577) $ 40 $ (29) Location on Gain/(Loss) (3) Gain/(Loss) (2) (5) Consolidated Three Months Ended Three Months Ended Fair Value Hedges Statements April 30, April 24, April 30, April 24, Commodity contracts Cost of products sold $ (467) $ 664 $ 1 $ 13 Location on Gain/(Loss) Consolidated Three Months Ended Derivatives not Statements April 30, April 24, Commodity contracts Cost of products sold $ (9) $ 50 Gains or losses (before tax, in thousands) related to the Company’s derivative instruments for the six months ended April 30, 2017, and April 24, 2016, were as follows: Gain/(Loss) (1) Location on Gain/(Loss) (1) Gain/(Loss) (2) (4) Six Months Ended Consolidated Six Months Ended Six Months Ended Cash Flow Hedges April 30, April 24, Statements April 30, April 24, April 30, April 24 Commodity contracts $ (787) $ (4,468) Cost of products sold $ 3,222 $ (1,344) $ 40 $ (28) Location on Gain/(Loss) (3) Gain/(Loss) (2) (5) Consolidated Six Months Ended Six Months Ended Fair Value Hedges Statements April 30, 2017 April 24, 2016 April 30, April 24, Commodity contracts Cost of products sold $ (591) $ 1,906 $ 1 $ (239) Location on Gain/(Loss) Consolidated Six Months Ended Derivatives not Statements April 30, April 24, Commodity contracts Cost of products sold $ (237) $ (430 ) (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 second quarter or first six months. (3) Amounts represent losses on commodity contracts designated as fair value hedges that were closed during the second quarter or first six months, 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 second quarter or first six months. (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 second quarter or first six months.
Derivatives not designated as hedges
DERIVATIVES AND HEDGING
Schedule of outstanding commodity futures contracts	Volume Commodity April 30, 2017 October 30, 2016 Corn 0.3 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 April 30, 2017 October 30, 2016 Corn 15.7 million bushels 22.4 million bushels Lean hogs 0.1 million cwt -
Fair Value Hedges
DERIVATIVES AND HEDGING
Schedule of outstanding commodity futures contracts	Volume Commodity April 30, 2017 October 30, 2016 Corn 1.2 million bushels 3.6 million bushels Lean hogs 0.1 million cwt 0.2 million cwt

INVESTMENTS IN AND RECEIVABLE28

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES (Tables)	6 Months Ended
	Apr. 30, 2017
INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES
Schedule of investments in and receivables from affiliates	(in thousands) Segment % Owned April 30, October 30, MegaMex Foods, LLC Grocery Products 50% $ $ Foreign Joint Ventures International & Other Various (26-40%) Total $ $
Schedule of equity in earnings of affiliates	Three Months Ended Six Months Ended (in thousands) Segment April 30, April 24, April 30, April 24, MegaMex Foods, LLC Grocery Products $ $ $ $ Foreign Joint Ventures International & Other Total $ $ $ $

ACCUMULATED OTHER COMPREHENSI29

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	6 Months Ended
	Apr. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE LOSS
Schedule of components of accumulated other comprehensive loss	(in thousands) Foreign Pension & Deferred Accumulated Balance at January 29, 2017 $ $ $ $ Unrecognized gains (losses) Gross - Tax effect - - Reclassification into net earnings Gross - 5,321 (1) (1,753) (2) Tax effect - Net of tax amount Balance at April 30, 2017 $ $ $ $ (in thousands) Foreign Pension & Deferred Accumulated Balance at October 30, 2016 $ $ $ $ Unrecognized gains (losses) Gross - Tax effect - - Reclassification into net earnings Gross - 10,673 (1) (3,222) (2) Tax effect - Net of tax amount Balance at April 30, 2017 $ $ $ $ (1) Included in the computation of net periodic cost (see Note F “Pension and Other Post-Retirement Benefits” for additional details). (2) Included in cost of products sold in the Consolidated Statements of Operations.

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Apr. 30, 2017
STOCK-BASED COMPENSATION
Schedule of reconciliation of the number of options outstanding and exercisable	A reconciliation of the number of options outstanding and exercisable (in thousands) as of April 30, 2017, and changes during the six months then ended, is as follows: Shares Weighted- Exercise Price Weighted- Aggregate Outstanding at October 30, 2016 31,998 $ 16.05 Granted 2,360 33.58 Exercised 2,410 10.12 Forfeited 36 9.35 Outstanding at April 30, 2017 31,912 $ 17.80 5.0 years $ 558,326 Exercisable at April 30, 2017 25,753 $ 14.46 4.1 years $ 532,730
Schedule of weighted-average grant date fair value of stock options granted and the total intrinsic value of options exercised	The weighted-average grant date fair value of stock options granted and the total intrinsic value of options exercised (in thousands) during the second quarter and first six months of fiscal years 2017 and 2016, are as follows: Three Months Ended Six Months Ended April 30, April 24, April 30, April 24, Weighted-average grant date fair value $ 7.03 $ 8.36 $ 6.41 $ 7.82 Intrinsic value of exercised options $ 9,070 $ 45,081 $ 61,088 $ 103,216
Schedule of weighted-average assumptions used to calculate fair value of each option award	Three Months Ended Six Months Ended April 30, April 24, April 30, April 24, Risk-free interest rate 2.5% 1.9% 2.4% 2.1% Dividend yield 1.9% 1.4% 2.0% 1.5% Stock price volatility 19.0% 19.0% 19.0% 19.0% Expected option life 8 years 8 years 8 years 8 years
Schedule of reconciliation of the nonvested shares	A reconciliation of the nonvested shares (in thousands) as of April 30, 2017, and changes during the six months then ended, is as follows: Shares Weighted- Nonvested at October 30, 2016 47 $ 41.01 Granted 58 Vested 47 Nonvested at April 30, 2017 58 $ 35.62
Schedule of the weighted-average grant date fair value of nonvested shares granted, the total fair value of nonvested shares granted, and the fair value of shares that have vested	The weighted-average grant date fair value of nonvested shares granted, the total fair value (in thousands) of nonvested shares granted, and the fair value (in thousands) of shares that have vested during the first six months of fiscal years 2017 and 2016, are as follows: Six Months Ended April 30, April 24, Weighted-average grant date fair value $ 35.62 $ 41.01 Fair value of nonvested shares granted $ 2,080 $ 1,920 Fair value of shares vested $ 1,920 $ 1,920
Schedule of stock-based compensation expense, along with the related income tax benefit	Three Months Ended Six Months Ended (in thousands) April 30, April 24, April 30, April 24, Stock-based compensation expense recognized $ 4,621 $ 7,016 $ 11,861 $ 14,178 Income tax benefit recognized (1,753) (2,662) (4,500) (5,379) After-tax stock-based compensation expense $ 2,868 $ 4,354 $ 7,361 $ 8,799

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Apr. 30, 2017
FAIR VALUE MEASUREMENTS
Schedule of financial assets and liabilities are measured at fair value on a recurring basis	Fair Value Measurements at April 30, 2017 (in thousands) Fair Value at Quoted Prices Significant Significant Assets at Fair Value Cash and cash equivalents (1) $ 548,901 $ 548,901 $ - $ - Other trading securities (2) 125,602 - 125,602 - Commodity derivatives (3) 2,606 2,606 - - Total Assets at Fair Value $ 677,109 $ 551,507 $ 125,602 $ - Liabilities at Fair Value Deferred compensation (2) $ 62,145 $ - $ 62,145 $ - Total Liabilities at Fair Value $ 62,145 $ - $ 62,145 $ - Fair Value Measurements at October 30, 2016 (in thousands) Fair Value at Quoted Prices Significant Significant Assets at Fair Value Cash and cash equivalents (1) $ 415,143 $ 415,143 $ - $ - Other trading securities (2) 122,305 - 122,305 - Commodity derivatives (3) 3,094 3,094 - - Total Assets at Fair Value $ 540,542 $ 418,237 $ 122,305 $ - Liabilities at Fair Value Deferred compensation (2) $ 60,949 $ - $ 60,949 $ - Total Liabilities at Fair Value $ 60,949 $ - $ 60,949 $ - The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above: (1) The Company’s cash equivalents consist primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts. As these investments have a maturity date of three months or less, the carrying value approximates fair value. (2) A majority of the funds held in the rabbi trust relate to the supplemental executive retirement plans and have been invested in fixed income funds managed by a third party. The declared rate on these funds is set based on a formula using the yield of the general account investment portfolio supporting the fund, adjusted for expenses and other charges. The rate is guaranteed for one year at issue, and may be reset annually on the policy anniversary, subject to a guaranteed minimum rate. As the value is based on adjusted market rates, and the fixed rate is only reset on an annual basis, these funds are classified as Level 2. The remaining funds held are also managed by a third party insurance policy, the values of which represent their cash surrender value based on the fair value of the underlying investments in the account and include equity securities, money market accounts, bond funds, or other portfolios for which there is an active quoted market. Therefore these policies are also classified as Level 2. The related deferred compensation liabilities are included in other long-term liabilities on the Consolidated Statements of Financial Position with investment options generally mirroring those funds held by the rabbi trust. Therefore these investment balances are classified as Level 2. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based on a specified percentage of the United States Internal Revenue Service (I.R.S.) Applicable Federal Rates. These balances are classified as Level 2. (3) The Company’s commodity derivatives represent futures contracts used in its hedging or other programs to offset price fluctuations associated with purchases of corn, soybean meal, and hogs, and to minimize the price risk assumed when forward priced contracts are offered to the Company’s commodity suppliers. The Company’s futures contracts for corn and soybean meal are traded on the Chicago Board of Trade, while futures contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available and these contracts are classified as Level 1. All derivatives are reviewed for potential credit risk and risk of nonperformance. 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 net balance for each program is included in other current assets or accounts payable, as appropriate, in the Consolidated Statements of Financial Position. As of April 30, 2017, the Company has recognized the right to reclaim net cash collateral of $3.6 million from various counterparties (including $12.3 million of realized gains offset by cash owed of $8.7 million on closed positions). As of October 30, 2016, the Company had recognized the right to reclaim net cash collateral of $3.1 million from various counterparties (including $7.1 million of realized gains offset by cash owed of $4.0 million on closed positions).

EARNINGS PER SHARE DATA (Tables

EARNINGS PER SHARE DATA (Tables)	6 Months Ended
	Apr. 30, 2017
EARNINGS PER SHARE DATA
Schedule of denominator for the computation of basic and diluted earnings per share	Three Months Ended Six Months Ended (in thousands) April 30, April 24, April 30, April 24, Basic weighted-average shares outstanding 528,712 529,898 528,649 529,380 Dilutive potential common shares 10,923 13,871 11,201 13,873 Diluted weighted-average shares outstanding 539,635 543,769 539,850 543,253

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Apr. 30, 2017
SEGMENT REPORTING
Schedule of sales and operating profits for each of the reportable segments and reconciliation to earnings before income taxes	Three Months Ended Six Months Ended (in thousands) April 30, April 24, April 30, April 24, Sales to Unaffiliated Customers Grocery Products $ 432,205 $ 401,472 $ 849,950 $ 793,690 Refrigerated Foods 1,027,486 1,092,479 2,150,525 2,254,600 Jennie-O Turkey Store 388,237 423,540 809,226 795,606 Specialty Foods 208,214 272,484 400,843 510,263 International & Other 131,167 110,260 256,992 238,748 Total $ 2,187,309 $ 2,300,235 $ 4,467,536 $ 4,592,907 Intersegment Sales Grocery Products $ - $ - $ - $ - Refrigerated Foods 1,677 3,657 3,816 5,987 Jennie-O Turkey Store 27,560 30,280 55,816 60,683 Specialty Foods 10 9 15 9 International & Other - - - - Total 29,247 33,946 59,647 66,679 Intersegment elimination (29,247) (33,946) (59,647) (66,679) Total $ - $ - $ - $ - Net Sales Grocery Products $ 432,205 $ 401,472 $ 849,950 $ 793,690 Refrigerated Foods 1,029,163 1,096,136 2,154,341 2,260,587 Jennie-O Turkey Store 415,797 453,820 865,042 856,289 Specialty Foods 208,224 272,493 400,858 510,272 International & Other 131,167 110,260 256,991 238,748 Intersegment elimination (29,247) (33,946) (59,647) (66,679) Total $ 2,187,309 $ 2,300,235 $ 4,467,536 $ 4,592,907 Segment Operating Profit Grocery Products $ 77,487 $ 67,110 $ 143,114 $ 132,383 Refrigerated Foods 130,194 130,002 304,002 296,910 Jennie-O Turkey Store 63,786 89,678 131,966 180,981 Specialty Foods 30,810 36,853 57,559 63,646 International & Other 19,617 14,244 45,080 38,531 Total segment operating profit 321,894 337,887 681,721 712,451 Net interest and investment expense (income) 205 (380) 782 4,990 General corporate expense 5,822 14,057 10,443 29,189 Less: Noncontrolling interest (40) (13) 116 93 Earnings before income taxes $ 315,827 $ 324,197 $ 670,612 $ 678,365

GENERAL - Basis of Presentation

GENERAL - Basis of Presentation (Details)	6 Months Ended	12 Months Ended
	Apr. 30, 2017	Oct. 30, 2016
GENERAL
Fiscal year term	364 days	371 days

GENERAL - Investments (Details)

GENERAL - Investments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
Rabbi trust
Investments
Gains related to securities held	$ 1.8	$ 2.9	$ 3.3	$ 1.2

GENERAL - Guarantees (Details)

GENERAL - Guarantees (Details) - Revocable standby letters of credit $ in Millions	6 Months Ended
	Apr. 30, 2017USD ($)
Guarantees
Guarantee term	P1Y
Standby letters of credit	$ 4

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	May 26, 2016	Apr. 30, 2017	Oct. 30, 2016
Allocation of the purchase price to the acquired assets, liabilities, and goodwill
Goodwill		$ 1,822,671	$ 1,834,497
Justin's
ACQUISITIONS
Purchase price	$ 280,900
Present value of the cash flow benefits as a result of tax amortization of the stepped-up basis of assets	70,000
Allocation of the purchase price to the acquired assets, liabilities, and goodwill
Goodwill	186,400
Intangible assets	$ 89,900

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 30, 2016
INVENTORIES
Finished products	$ 562,847	$ 553,634
Raw materials and work-in-process	262,774	253,662
Materials and supplies	162,787	178,387
Total	$ 988,408	$ 985,683

GOODWILL AND INTANGIBLE ASSET39

GOODWILL AND INTANGIBLE ASSETS - Goodwill Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 30, 2017	Apr. 30, 2017
Changes in the carrying amount of goodwill
Changes in carrying amount of goodwill	$ 0
Balance at the beginning of the period		$ 1,834,497
Goodwill sold		(11,826)
Balance at the end of the period	1,822,671	1,822,671
Grocery Products
Changes in the carrying amount of goodwill
Balance at the beginning of the period		508,800
Balance at the end of the period	508,800	508,800
Refrigerated Foods
Changes in the carrying amount of goodwill
Balance at the beginning of the period		584,443
Goodwill sold		(11,826)
Balance at the end of the period	572,617	572,617
Jennie-O Turkey Store
Changes in the carrying amount of goodwill
Balance at the beginning of the period		203,214
Balance at the end of the period	203,214	203,214
Specialty Foods
Changes in the carrying amount of goodwill
Balance at the beginning of the period		373,782
Balance at the end of the period	373,782	373,782
International & Other
Changes in the carrying amount of goodwill
Balance at the beginning of the period		164,258
Balance at the end of the period	$ 164,258	$ 164,258

GOODWILL AND INTANGIBLE ASSET40

GOODWILL AND INTANGIBLE ASSETS - Definite Lived Intangibles Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016	Oct. 30, 2016
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	$ 90,490		$ 90,490		$ 93,710
Accumulated Amortization	(25,770)		(25,770)		(24,210)
Amortization expense	2,000	$ 1,900	4,143	$ 4,045
Estimated amortization expense
2,017	8,100		8,100
2,018	7,600		7,600
2,019	7,400		7,400
2,020	7,400		7,400
2,021	7,400		7,400
Customer lists/relationships
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	85,440		85,440		88,240
Accumulated Amortization	(22,163)		(22,163)		(20,737)
Formulas and recipes
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	1,950		1,950		1,950
Accumulated Amortization	(1,894)		(1,894)		(1,796)
Other intangibles
Gross carrying amount and accumulated amortization for definite-lived intangible assets
Gross Carrying Amount	3,100		3,100		3,520
Accumulated Amortization	$ (1,713)		$ (1,713)		$ (1,677)

GOODWILL AND INTANGIBLE ASSET41

GOODWILL AND INTANGIBLE ASSETS - Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 30, 2016
Carrying amounts for indefinite-lived intangible assets
Carrying amounts for indefinite-lived intangible assets	$ 820,019	$ 833,758
Brands/tradename/trademarks
Carrying amounts for indefinite-lived intangible assets
Carrying amounts for indefinite-lived intangible assets	819,835	825,774
Other intangibles
Carrying amounts for indefinite-lived intangible assets
Carrying amounts for indefinite-lived intangible assets	$ 184	$ 7,984

ASSETS HELD FOR SALE (Details)

ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands	Jan. 03, 2017	Apr. 30, 2017	Oct. 30, 2016
ASSETS HELD FOR SALE
Proceeds from sale of business		$ 135,944
Clougherty Packing, LLC and with PFFJ, LLC | Assets Held For Sale
Assets held for sale
Current assets			$ 80,861
Goodwill			12,703
Intangibles			14,321
Property, plant and equipment			74,812
Total assets held for sale			182,697
Liabilities held for sale
Total current liabilities held for sale			$ 44,066
Clougherty Packing, LLC and with PFFJ, LLC | Assets Sold
ASSETS HELD FOR SALE
Proceeds from sale of business	$ 145,000

PENSION AND OTHER POST-RETIRE43

PENSION AND OTHER POST-RETIREMENT BENEFITS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
Pension Benefits
Net periodic cost of defined benefit plans
Service cost	$ 7,564	$ 6,680	$ 15,128	$ 13,360
Interest cost	13,566	13,678	27,132	27,356
Expected return on plan assets	(22,734)	(21,678)	(45,468)	(43,355)
Amortization of prior service cost	(750)	(1,066)	(1,500)	(2,132)
Recognized actuarial loss	6,542	4,586	13,083	9,171
Net periodic cost	4,188	2,200	8,375	4,400
Post-retirement Benefits
Net periodic cost of defined benefit plans
Service cost	274	317	549	633
Interest cost	2,871	3,236	5,742	6,472
Amortization of prior service cost	(1,069)	(1,051)	(2,137)	(2,101)
Recognized actuarial loss	599	392	1,227	784
Net periodic cost	$ 2,675	$ 2,894	$ 5,381	$ 5,788

DERIVATIVES AND HEDGING - Outst

DERIVATIVES AND HEDGING - Outstanding Contracts (Details) item in Millions, bu in Millions, $ in Millions	6 Months Ended	12 Months Ended
	Apr. 30, 2017USD ($)itembu	Oct. 30, 2016USD ($)itemTbu
DERIVATIVES AND HEDGING
Maximum number of upcoming fiscal years to hedge grain or natural gas exposure	2 years
Corn | Derivatives not designated as hedges
DERIVATIVES AND HEDGING
Futures contracts, volume (in million bushels)	0.3	4
Corn | Cash Flow Hedges
DERIVATIVES AND HEDGING
Futures contracts, volume (in million bushels)	15.7	22.4
Accumulated change, pretax, in accumulated gains from derivative instruments designated and qualifying as the effective portion of cash flow hedges | $	$ 5.2	$ 9.2
Period over which majority of hedging gains is expected to be recognized	12 months
Corn | Fair Value Hedges
DERIVATIVES AND HEDGING
Futures contracts, volume (in million bushels)	1.2	3.6
Lean hogs | Cash Flow Hedges
DERIVATIVES AND HEDGING
Futures contracts, volume ( in centum weight) | item	0.1
Lean hogs | Fair Value Hedges
DERIVATIVES AND HEDGING
Futures contracts, volume ( in centum weight) | item	0.1	0.2
Soybean meal | Derivatives not designated as hedges
DERIVATIVES AND HEDGING
Futures contracts, volume (in tons) | T		11,000

DERIVATIVES AND HEDGING - Fair

DERIVATIVES AND HEDGING - Fair Value Of Derivatives (Details) - USD ($) $ in Thousands	Apr. 30, 2017	Oct. 30, 2016
Derivatives fair value
Fair values of derivative instruments	$ (1,016)	$ (50)
Derivatives designated as hedges | Commodity contracts | Other current assets
Derivatives fair value
Fair values of derivative instruments	(1,011)	(194)
Derivatives not designated as hedges | Commodity contracts | Other current assets
Derivatives fair value
Fair values of derivative instruments	$ (5)	$ 144

DERIVATIVES AND HEDGING - Gains

DERIVATIVES AND HEDGING - Gains And Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
Derivative instruments gains or losses (before tax)
Gains or losses excluded from the assessment of cash flow hedge effectiveness	$ 0	$ 0	$ 0	$ 0
Gains or losses excluded from the assessment of fair value hedge effectiveness	0	0	0	0
Gains or losses resulting from the discontinuance of cash flow hedges	0	0	0	0
Gains or losses recognized as a result of a hedged firm commitment no longer qualifying as a fair value hedge	0	0	0	0
Derivatives not designated as hedges | Commodity contracts | Cost of products sold
Derivative instruments gains or losses (before tax)
Gain/(Loss) Recognized in Earnings	(9)	50	(237)	(430)
Cash Flow Hedges | Derivatives designated as hedges | Commodity contracts
Derivative instruments gains or losses (before tax)
Gain/(Loss) Recognized in AOCL (Effective Portion)	(141)	(1,620)	(787)	(4,468)
Cash Flow Hedges | Derivatives designated as hedges | Commodity contracts | Cost of products sold
Derivative instruments gains or losses (before tax)
Gain/(Loss) Reclassified from AOCL into Earnings (Effective Portion)	1,753	(577)	3,222	(1,344)
Gain/(Loss) Recognized in Earnings (Ineffective Portion)	40	(29)	40	(28)
Fair Value Hedges | Derivatives designated as hedges | Commodity contracts | Cost of products sold
Derivative instruments gains or losses (before tax)
Gain/(Loss) Recognized in Earnings (Effective Portion)	(467)	664	(591)	1,906
Gain/(Loss) Recognized in Earnings (Ineffective Portion)	$ 1	$ 13	$ 1	$ (239)

INVESTMENTS IN AND RECEIVABLE47

INVESTMENTS IN AND RECEIVABLES FROM AFFILIATES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016	Oct. 30, 2016	Oct. 26, 2009
Investments In and Receivables from Affiliates
Investments in and receivables from affiliates	$ 246,840		$ 246,840		$ 239,590
Equity in earnings of affiliates	10,121	$ 9,593	23,420	$ 21,068
Dividends received from affiliates	$ 10,000	9,500	$ 12,500	14,500
MegaMex Foods, LLC
Investments In and Receivables from Affiliates
Ownership percentage	50.00%		50.00%
Investments in and receivables from affiliates	$ 184,379		$ 184,379		180,437
Equity in earnings of affiliates	9,116	8,568	18,187	15,773
Excess of investment over the underlying equity in net assets of the joint venture	14,900		14,900			$ 21,300
Foreign Joint Ventures
Investments In and Receivables from Affiliates
Investments in and receivables from affiliates	62,461		62,461		$ 59,153
Equity in earnings of affiliates	$ 1,005	$ 1,025	$ 5,233	$ 5,295
Foreign Joint Ventures | Minimum
Investments In and Receivables from Affiliates
Ownership percentage	26.00%		26.00%
Foreign Joint Ventures | Maximum
Investments In and Receivables from Affiliates
Ownership percentage	40.00%		40.00%

ACCUMULATED OTHER COMPREHENSI48

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 30, 2017	Apr. 30, 2017
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance at beginning of period		$ 4,448,006
Reclassification into net earnings:
Balance at end of period	$ 4,683,104	4,683,104
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance at beginning of period	(302,140)	(296,303)
Unrecognized gains (losses):
Gross	718	(7,775)
Tax effect	52	294
Reclassification into net earnings:
Gross	3,568	7,451
Tax effect	(1,349)	(2,818)
Net tax amount	2,989	(2,848)
Balance at end of period	(299,151)	(299,151)
Foreign Currency Translation
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance at beginning of period	(13,336)	(5,489)
Unrecognized gains (losses):
Gross	859	(6,988)
Reclassification into net earnings:
Net tax amount	859	(6,988)
Balance at end of period	(12,477)	(12,477)
Pension & Other Benefits
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance at beginning of period	(293,219)	(296,552)
Reclassification into net earnings:
Gross	5,321	10,673
Tax effect	(2,007)	(4,026)
Net tax amount	3,314	6,647
Balance at end of period	(289,905)	(289,905)
Deferred Gain (Loss) - Hedging
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance at beginning of period	4,415	5,738
Unrecognized gains (losses):
Gross	(141)	(787)
Tax effect	52	294
Reclassification into net earnings:
Gross	(1,753)	(3,222)
Tax effect	658	1,208
Net tax amount	(1,184)	(2,507)
Balance at end of period	$ 3,231	$ 3,231

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
INCOME TAXES
Portion of unrecognized tax benefit including interest and penalties, that if recognized, would impact effective tax rate	$ 19.8	$ 18.3	$ 19.8	$ 18.3
Interest and penalties expense related to uncertain tax positions recognized in income tax expense	(0.1)	0.7	0.1	0.4
Accrued interest and penalties, associated with unrecognized tax benefits	$ 2.7	$ 2.9	$ 2.7	$ 2.9

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Options (Details) - Stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
STOCK-BASED COMPENSATION
Vesting period			4 years
Stock option expiration period			10 years
Shares
Outstanding at the beginning of the period (in shares)			31,998
Granted (in shares)			2,360
Exercised (in shares)			2,410
Forfeited (in shares)			36
Outstanding at the end of the period (in shares)	31,912		31,912
Exercisable at the end of the period (in shares)	25,753		25,753
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)			$ 16.05
Granted (in dollars per share)			33.58
Exercised (in dollars per share)			10.12
Forfeited (in dollars per share)			9.35
Outstanding at the end of the period (in dollars per share)	$ 17.80		17.80
Exercisable at end of period (in dollars per share)	$ 14.46		$ 14.46
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period			5 years
Exercisable at end of period			4 years 1 month 6 days
Aggregate Intrinsic Value
Outstanding at the end of the period	$ 558,326		$ 558,326
Exercisable at end of period	$ 532,730		$ 532,730
Weighted-average grant date fair value of stock options granted and the total intrinsic value of options exercised
Weighted-average grant date fair value of options granted (in dollars per share)	$ 7.03	$ 8.36	$ 6.41	$ 7.82
Intrinsic value of exercised options	$ 9,070	$ 45,081	$ 61,088	$ 103,216
Weighted-average assumptions used to calculate fair value of each ordinary option award
Risk-free interest rate (as a percent)	2.50%	1.90%	2.40%	2.10%
Dividend yield (as a percent)	1.90%	1.40%	2.00%	1.50%
Stock price volatility (as a percent)	19.00%	19.00%	19.00%	19.00%
Expected option life	8 years	8 years	8 years	8 years

STOCK-BASED COMPENSATION - Nonv

STOCK-BASED COMPENSATION - Nonvested Shares (Details) - Nonvested shares - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016
Shares
Nonvested shares at the beginning of the period	47
Granted	58
Vested	47
Nonvested shares at the end of the period	58
Weighted-Average Grant-Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share)	$ 41.01
Nonvested shares at the end of the period (in dollars per share)	$ 35.62	$ 41.01
Weighted-average grant date fair value, the total fair value of nonvested shares granted, and the fair value of shares that have vested
Fair value of nonvested shares granted	$ 2,080	$ 1,920
Fair value of shares vested	$ 1,920	$ 1,920
Maximum
STOCK-BASED COMPENSATION
Vesting period	1 year

STOCK-BASED COMPENSATION - Expe

STOCK-BASED COMPENSATION - Expense And Exercises (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
Stock-based compensation expense, along with the related income tax benefit
Stock-based compensation expense recognized	$ 4,621	$ 7,016	$ 11,861	$ 14,178
Income tax benefit recognized	(1,753)	(2,662)	(4,500)	(5,379)
After-tax stock-based compensation expense	2,868	4,354	7,361	8,799
Other disclosures
Stock-based compensation expense unrecognized	15,200		$ 15,200
Period for recognition of unrecognized stock-based compensation expense			2 years 6 months
Stock options
Other disclosures
Cash received from stock options exercises	1,500	4,900	$ 8,900	8,400
Tax benefit realized from stock options, aggregate	$ 3,400	$ 17,200	$ 23,000	$ 39,200

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 24, 2016	Apr. 24, 2016	Apr. 30, 2017	Oct. 30, 2016
Methods and assumptions used to estimate the fair value of the financial assets and liabilities
Recognized right to reclaim net cash collateral			$ 3,600	$ 3,100
Realized gains on closed positions			12,300	7,100
Recognized obligation to return cash collateral			8,700	4,000
Fair value, long-term debt
Fair value of long-term debt (including current maturities)			269,200	274,900
Impairment charge
Goodwill impairment charge	$ 991	$ 991
Fair Value | Recurring basis
Assets at Fair Value
Cash and cash equivalents			548,901	415,143
Other trading securities			125,602	122,305
Commodity derivatives			2,606	3,094
Total Assets at Fair Value			677,109	540,542
Liabilities at Fair Value
Deferred compensation			62,145	60,949
Total Liabilities at Fair Value			62,145	60,949
Fair Value | Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets at Fair Value
Cash and cash equivalents			548,901	415,143
Commodity derivatives			2,606	3,094
Total Assets at Fair Value			551,507	418,237
Fair Value | Recurring basis | Significant Other Observable Inputs (Level 2)
Assets at Fair Value
Other trading securities			125,602	122,305
Total Assets at Fair Value			125,602	122,305
Liabilities at Fair Value
Deferred compensation			62,145	60,949
Total Liabilities at Fair Value			$ 62,145	$ 60,949
Assets Held For Sale | Portion of DCB
Impairment charge
Goodwill impairment charge	$ 1,000

EARNINGS PER SHARE DATA (Detail

EARNINGS PER SHARE DATA (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017	Apr. 24, 2016	Apr. 30, 2017	Apr. 24, 2016
EARNINGS PER SHARE DATA
Basic weighted-average shares outstanding	528,712	529,898	528,649	529,380
Dilutive potential common shares	10,923	13,871	11,201	13,873
Diluted weighted-average shares outstanding	539,635	543,769	539,850	543,253
Weighted-average stock options were not included in the computation of dilutive potential common shares	4,500	0	3,900	500

SEGMENT REPORTING - Operating P

SEGMENT REPORTING - Operating Profit (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 30, 2017USD ($)	Apr. 24, 2016USD ($)	Apr. 30, 2017USD ($)segment	Apr. 24, 2016USD ($)
Operating profit and other financial information
Number of reportable business segments | segment			5
Sales	$ 2,187,309	$ 2,300,235	$ 4,467,536	$ 4,592,907
Segment Operating Profit	316,032	323,817	671,394	683,355
Net interest and investment expense (income)	205	(380)	782	4,990
General corporate expense	5,822	14,057	10,443	29,189
Less: Noncontrolling interest	(40)	(13)	116	93
EARNINGS BEFORE INCOME TAXES	315,827	324,197	670,612	678,365
Intersegment sales
Operating profit and other financial information
Sales	29,247	33,946	59,647	66,679
Operating segment
Operating profit and other financial information
Sales	2,187,309	2,300,235	4,467,536	4,592,907
Segment Operating Profit	321,894	337,887	681,721	712,451
Intersegment elimination
Operating profit and other financial information
Sales	(29,247)	(33,946)	(59,647)	(66,679)
Grocery Products
Operating profit and other financial information
Sales	432,205	401,472	849,950	793,690
Grocery Products | Operating segment
Operating profit and other financial information
Sales	432,205	401,472	849,950	793,690
Segment Operating Profit	77,487	67,110	143,114	132,383
Refrigerated Foods
Operating profit and other financial information
Sales	1,027,486	1,092,479	2,150,525	2,254,600
Refrigerated Foods | Intersegment sales
Operating profit and other financial information
Sales	1,677	3,657	3,816	5,987
Refrigerated Foods | Operating segment
Operating profit and other financial information
Sales	1,029,163	1,096,136	2,154,341	2,260,587
Segment Operating Profit	130,194	130,002	304,002	296,910
Jennie-O Turkey Store
Operating profit and other financial information
Sales	388,237	423,540	809,226	795,606
Jennie-O Turkey Store | Intersegment sales
Operating profit and other financial information
Sales	27,560	30,280	55,816	60,683
Jennie-O Turkey Store | Operating segment
Operating profit and other financial information
Sales	415,797	453,820	865,042	856,289
Segment Operating Profit	63,786	89,678	131,966	180,981
Specialty Foods
Operating profit and other financial information
Sales	208,214	272,484	400,843	510,263
Specialty Foods | Intersegment sales
Operating profit and other financial information
Sales	10	9	15	9
Specialty Foods | Operating segment
Operating profit and other financial information
Sales	208,224	272,493	400,858	510,272
Segment Operating Profit	30,810	36,853	57,559	63,646
International & Other
Operating profit and other financial information
Sales	131,167	110,260	256,992	238,748
International & Other | Operating segment
Operating profit and other financial information
Sales	131,167	110,260	256,991	238,748
Segment Operating Profit	$ 19,617	$ 14,244	$ 45,080	$ 38,531