Sanderson Farms (SAFM) 10-Q 26 Feb 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 31, 2019	Feb. 21, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2019
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Trading Symbol	SAFM
Entity Registrant Name	SANDERSON FARMS INC
Entity Central Index Key	812,128
Current Fiscal Year End Date	--10-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Share Outstanding (in shares)		22,156,474

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2019	Oct. 31, 2018
Current assets:
Cash and cash equivalents	$ 74,710	$ 121,193
Accounts receivable, net	123,593	121,932
Receivable from insurance companies	5,699	7,094
Inventories	261,768	240,056
Refundable income taxes	32,851	32,974
Prepaid expenses and other current assets	53,383	43,240
Total current assets	552,004	566,489
Property, plant and equipment	2,022,063	1,961,497
Less accumulated depreciation	(893,996)	(873,909)
Property, plant and equipment, net	1,128,067	1,087,588
Other assets	5,030	5,363
Total assets	1,685,101	1,659,440
Current liabilities:
Accounts payable	125,285	128,936
Dividends payable	7,089	0
Accrued expenses	63,108	69,953
Total current liabilities	195,482	198,889
Long-term debt	60,000	0
Claims payable and other liabilities	9,961	9,865
Deferred income taxes	56,447	62,793
Commitments and contingencies
Stockholders’ equity:
Common Stock, $1 par value: authorized 100,000,000 shares; issued and outstanding shares—22,153,468 and 22,099,780 at January 31, 2019 and October 31, 2018, respectively	22,153	22,100
Paid-in capital	81,456	81,269
Retained earnings	1,259,602	1,284,524
Total stockholders’ equity	1,363,211	1,387,893
Total liabilities and stockholders’ equity	1,685,101	1,659,440
Series A Junior Participating Preferred Stock, $100 par value: authorized 500,000 shares, none issued
Stockholders’ equity:
Preferred Stock
Par value to be determined by the Board of Directors: authorized 4,500,000 shares; none issued
Stockholders’ equity:
Preferred Stock

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 31, 2019	Oct. 31, 2018
Common Stock, par value (in usd per share)	$ 1	$ 1
Common Stock, shares authorized (in shares)	100,000,000	100,000,000
Common Stock, shares issued (in shares)	22,153,468	22,099,780
Common Stock, shares outstanding (in shares)	22,153,468	22,099,780
Series A Junior Participating Preferred Stock
Preferred Stock, par value (in usd per share)	$ 100	$ 100
Preferred Stock, authorized shares (in shares)	500,000	500,000
Preferred Stock, shares issued (in shares)	0	0
Other Preferred Stock
Preferred Stock, authorized shares (in shares)	4,500,000	4,500,000
Preferred Stock, shares issued (in shares)	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Income Statement [Abstract]
Net sales	$ 743,388	$ 771,948
Cost and expenses:
Cost of sales	708,400	702,101
Selling, general and administrative	58,535	52,575
Cost and expenses	766,935	754,676
Operating income (loss)	(23,547)	17,272
Other income (expense):
Interest income	0	419
Interest expense	(509)	(523)
Other	0	2
Other income (expense)	(509)	(102)
Income (loss) before income taxes	(24,056)	17,170
Income tax benefit	(6,223)	(34,036)
Net income (loss)	$ (17,833)	$ 51,206
Earnings (loss) per share:
Basic (in usd per share)	$ (0.82)	$ 2.24
Diluted (in usd per share)	(0.82)	2.24
Dividends per share (in usd per share)	$ 0.32	$ 0.32

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Paid-In Capital	Retained Earnings
Beginning Balance at Oct. 31, 2017	$ 1,432,862	$ 22,803	$ 134,999	$ 1,275,060
Beginning Balance (in shares) at Oct. 31, 2017		22,802,690
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	51,206			51,206
Cash dividends ($0.32 per share)	(7,305)			(7,305)
Issuance of stock under stock compensation plans	(4,162)	$ 26	(4,188)
Issuance of stock under stock compensation plans (in shares)		26,208
Amortization of unearned compensation	5,730		5,730
Ending Balance at Jan. 31, 2018	1,478,331	$ 22,829	136,541	1,318,961
Ending Balance (in shares) at Jan. 31, 2018		22,828,898
Beginning Balance at Oct. 31, 2018	1,387,893	$ 22,100	81,269	1,284,524
Beginning Balance (in shares) at Oct. 31, 2018		22,099,780
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(17,833)			(17,833)
Cash dividends ($0.32 per share)	(7,089)			(7,089)
Issuance of stock under stock compensation plans	(2,073)	$ 53	(2,126)
Issuance of stock under stock compensation plans (in shares)		53,688
Amortization of unearned compensation	2,313		2,313
Ending Balance at Jan. 31, 2019	$ 1,363,211	$ 22,153	$ 81,456	$ 1,259,602
Ending Balance (in shares) at Jan. 31, 2019		22,153,468

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends, per share (in usd per share)	$ 0.32	$ 0.32

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Operating activities
Net income (loss)	$ (17,833)	$ 51,206
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	29,041	26,630
Amortization of share-based compensation	2,941	6,230
Live inventory adjustment	(9,600)	0
Deferred income taxes	(6,346)	(34,036)
Change in assets and liabilities:
Accounts receivable - trade	(1,661)	4,823
Accounts receivable - insurance	1,395	0
Income taxes	123	0
Inventories	(12,112)	(316)
Prepaid expenses and other assets	(10,072)	(5,237)
Accounts payable	10,107	19,984
Accrued expenses and other liabilities	(7,322)	(44,316)
Total adjustments	(3,506)	(26,238)
Net cash provided by (used in) operating activities	(21,339)	24,968
Investing activities
Capital expenditures	(83,388)	(51,734)
Net proceeds from sale of property and equipment	371	566
Net cash used in investing activities	(83,017)	(51,168)
Financing activities
Borrowings from revolving line of credit	60,000	0
Proceeds from issuance of restricted stock under stock compensation plans	198	659
Payments from issuance of common stock under stock compensation plans	(2,325)	(4,848)
Net cash provided by (used in) financing activities	57,873	(4,189)
Net change in cash and cash equivalents	(46,483)	(30,389)
Cash and cash equivalents at beginning of period	121,193	419,285
Cash and cash equivalents at end of period	74,710	388,896
Supplemental disclosure of non-cash investing and financing activities:
Capital expenditures included in accounts payable	11,162	5,068
Dividends payable	$ (7,089)	$ (7,305)

ACCOUNTING POLICIES

ACCOUNTING POLICIES	3 Months Ended
	Jan. 31, 2019
Accounting Policies [Abstract]
Accounting Policies	ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring accruals considered necessary for a fair presentation have been included. Operating results for the three months ended January 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2019 . The condensed consolidated balance sheet at October 31, 2018 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2018 . New Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, Scope of Modification Accounting, which amends the requirements related to accounting for changes to stock compensation awards. The guidance is effective for annual periods,and interim periods within those annual periods, beginning after December 15, 2017, our fiscal 2019. The Company adopted this guidance during the first quarter of fiscal 2019, and it did not have an impact on our consolidated financial statements. The impact this guidance will have on our future consolidated financial statements will depend on the nature and extent of future changes, if any, to the terms and conditions of the Company's Stock Incentive Plan. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which changes the criteria for recognizing revenue. ASU 2014-09 was amended by ASU 2015-14 to defer the effective date by one year. The guidance also modifies the related disclosure requirements, clarifies guidance for multiple-element arrangements and provides guidance for transactions that were not addressed fully in previous guidance. The guidance, as amended, is effective for annual reporting periods, and interim periods within those annual reporting periods, beginning after December 15, 2017, our fiscal 2019. The Company adopted this guidance using the modified retrospective transition method during the first quarter of fiscal 2019, and it did not have a material impact on our consolidated financial statements. Under the modified retrospective method, prior periods were not adjusted. Additionally, based on our contract assessments, no cumulative-effect adjustment was made to the opening balance of retained earnings. For further information regarding the Company's revenue, refer to Part I, Item 1, Notes to Condensed Consolidated Financial Statements, Note 2 - Revenue. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718, Compensation - Stock Compensation, to include all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The guidance is intended to increase transparency and comparability among companies by requiring an entity that is a lessee to recognize on the balance sheet the right-of-use assets and lease liabilities arising from all leases with terms, as defined by the guidance, of greater than twelve months. The guidance also requires disclosure of key information about leasing arrangements. The guidance is effective for annual reporting periods, and interim periods within those annual reporting periods, beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.

REVENUE

REVENUE	3 Months Ended
	Jan. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue Recognition The Company recognizes revenue in connection with a contract in which the Company has agreed to sell, and a customer has agreed to purchase, specific quantities of product at agreed-upon prices and when the Company's performance obligation related to that contract has been satisfied. In the majority of its contracts with customers, the Company's performance obligation is satisfied when delivery of the product has occurred, either at the customer's facility or the Company's facility, depending on the terms of each contract. In a small number of contracts, ownership of the product passes from the Company to the customer at some point during transit, at which time the performance obligation is satisfied and revenue is recognized. Revenue and related receivables are recognized based on the transaction price within the contract and are reduced by estimated or known amounts for items such as rebates, discounts, cooperative advertising allowances and other various items. The cost incurred for shipping and handling activities to deliver the product to the customer is recognized in cost of sales during the period in which the corresponding revenue is recognized. Where shipping and handling activities occur after the customer has obtained control of the product, the Company has elected to account for those expenses as fulfillment costs in cost of sales, rather than an additional promised service. This accounting treatment is the same as the accounting treatment prior to the Company's adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers. The Company has, prior to the adoption of ASU 2014-09, accounted for freight one of two ways. First, when the Company's agreement with its customer did not authorize the Company to invoice the customer separately for freight, the Company attempted to negotiate a higher price, and paid freight costs associated with the sale. In these instances, that cost was booked as an expense in cost of sales. In some instances, the Company's agreement with its customers authorize the Company to invoice the customer for freight costs separately on its invoice to the customer. Under these arrangements, the Company has previously accounted for freight by recognizing revenue net of the freight costs. Subsequent to the adoption of ASU 2014-09, both arrangements will be accounted for in the same manner. That is, in both instances, revenue will be reported gross of any freight charge, and all freight costs will be accounted for as cost of sales. Because we adopted ASU 2014-09 using the modified-retrospective transition method, we did not restate prior-period financial statements, and the separately-invoiced freight costs from periods prior to fiscal 2019 remain presented as a reduction to cost of sales. During the first quarter of fiscal 2019, we recognized revenue of approximately $6.6 million related to those freight charges, as compared to approximately $3.9 million recognized as a reduction to cost of sales during the first quarter of fiscal 2018. Due to the nature of our contracts, commissions associated with such contracts provide only a short-term benefit (i.e. less than one year); therefore, with our adoption of ASU 2014-09, we recognize costs of commissions paid to third-party brokers as selling, general and administrative expenses effective as of November 1, 2018. Prior to our adoption of ASU 2014-09, those commissions were recognized as a reduction of revenue. Because we transitioned using the modified-retrospective method, we did not restate prior-period financial statements, and those commissions from periods prior to fiscal 2019 remain presented as a reduction to revenue. During the first quarter of fiscal 2019, we recognized approximately $2.6 million in commissions as selling, general and administrative expenses, as compared to approximately $2.5 million recognized as a reduction to revenue during the first quarter of fiscal 2018. Disaggregation of Revenue The following table disaggregates our net sales by product category (in thousands): Product Category Three Months Ended January 31, 2019 Fresh, chill-packed chicken $ 268.5 Fresh, vacuum-sealed chicken 260.0 Fresh, ice-packed chicken 100.0 Minimally prepared chicken 57.4 Frozen chicken 48.6 Other 8.9 Total net sales $ 743.4

INVENTORIES

INVENTORIES	3 Months Ended
	Jan. 31, 2019
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories consisted of the following: January 31, 2019 October 31, 2018 (In thousands) Live poultry-broilers and breeders $ 174,221 $ 150,980 Feed, eggs and other 38,151 37,965 Processed poultry 27,176 30,973 Prepared chicken 14,296 13,591 Packaging materials 7,924 6,547 $ 261,768 $ 240,056

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS	3 Months Ended
	Jan. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK COMPENSATION PLANS	STOCK COMPENSATION PLANS Refer to Note 8 and Note 9 of the Company’s October 31, 2018 audited financial statements in the Company's 2018 Annual Report on Form 10-K for further information on our employee benefit plans and stock based compensation plans, respectively. Total stock based compensation expense during the three months ended January 31, 2019 was $2.9 million , as compared to total stock based compensation expense of $6.2 million for the three months ended January 31, 2018 . During the three months ended January 31, 2019 , participants in the Company’s Management Share Purchase Plan ("MSPP") elected to receive a total of 1,992 shares of restricted stock at an average price of $99.29 per share instead of a specified percentage of their cash compensation, and the Company issued 474 matching restricted shares. During the three months ended January 31, 2019 , the Company recorded compensation expense for the MSPP shares, included in the total stock based compensation expense above, of $91,000 as compared to $62,000 during the three months ended January 31, 2018 . During fiscal 2019, 2018 and 2017, the Company entered into performance share agreements that grant certain officers and key employees the right to receive shares of the Company's common stock, subject to the Company's achievement of certain performance measures. The performance share agreements specify a target number of shares that a participant can receive based upon the Company's average return on equity and average return on sales, as defined, during a two-year performance period beginning November 1 of each performance period. Although the performance share agreements have a two -year performance period, there is an additional one -year period during which the participant must remain employed by the Company before the shares are paid out. If the Company's average return on equity and average return on sales exceed certain threshold amounts for the performance period, participants will receive 50 percent to 200 percent of the target number of shares, depending upon the Company's level of performance. Accruals for performance shares begin during the period management determines that achievement of the applicable performance based criteria is probable at some level. In estimating the probability of the number of shares that will be awarded, the Company considers, among other factors, current and projected grain costs and chicken volumes and pricing, as well as the amount of the Company's commitments to procure grain at a fixed price throughout the performance period. Due to the high level of volatility of these commodity prices and the impact that the change in pricing can have on the Company's results, the Company's assessment of probability can change from period to period and can result in a significant revision to the amounts accrued related to the arrangements, as the accruals are adjusted using the cumulative catch-up method of accounting. The target number of shares specified in the performance share agreements executed on November 1, 2018 totaled 74,650 . As of January 31, 2019 , the Company could not determine that achievement of the applicable performance based criteria is probable due to the uncertainties discussed above, and therefore recorded no compensation expense related to those agreements. The Company also has performance share agreements in place with certain officers and key employees that were entered into on November 1, 2017. The target number of shares specified in the agreements executed on November 1, 2017 totaled 53,850 . As of January 31, 2019, the Company could not determine that achievement of the applicable performance based criteria is probable due to the uncertainties discussed above, and therefore recorded no compensation expense related to those agreements. The Compensation Committee of the Company's Board of Directors has determined that the performance share agreements entered into on November 1, 2016 have been earned at a level between the threshold and target levels for the return on equity performance criteria and between the target and maximum levels for the return on sales criteria, subject to the satisfaction of the additional one -year service period ending on October 31, 2019. Accordingly, the three months ended January 31, 2019 include compensation expense of $0.6 million related to those agreements, as compared to compensation expense of $3.3 million during the three months ended January 31, 2018 . Because management's initial determination of probability was made during the three months ended January 31, 2018, and because the accrual is made using the cumulative catch-up method, the compensation expense recorded during the first quarter of fiscal 2018 related to the agreements entered into on November 1, 2016 was greater than that recorded during the first quarter of fiscal 2019. As of January 31, 2019 , the aggregate number of shares estimated to be awarded related to the performance share agreements entered into on November 1, 2016 totaled 85,159 shares. Since the performance period for those agreements has ended, the actual number of shares that will be awarded can change only due to potential forfeitures during the remaining nine months of the service period ending October 31, 2019. The Company will recognize the remaining $2.0 million of unearned compensation related to these shares over the remaining service period. Had the Company determined that it was probable that the maximum amount of those outstanding awards from the agreements entered into on November 1, 2017 and November 1, 2018 would be earned, an additional $6.5 million and $1.3 million, respectively, would have been accrued as of January 31, 2019 . The Company's compensation cost related to performance share agreements is summarized as follows (in thousands, except number of shares): Three months ended Date of Performance Share Agreement Number of shares issued (actual (a) or estimated (e)) January 31, 2019 January 31, 2018 November 1, 2015 145,197 (a) $ — $ 846 November 1, 2016 85,159 (e) 613 3,326 November 1, 2017 (1) — — — November 1, 2018 (1) — — — Total compensation cost $ 613 $ 4,172 Note (1) - As of January 31, 2019, the Company could not determine that achievement of the applicable performance-based criteria is probable for the agreements entered into on November 1, 2017 and 2018 due to the uncertainties discussed above, and therefore recorded no compensation expense related to those agreements. On November 1, 2018, the Company granted 74,650 shares of restricted stock to certain officers and key management employees. The restricted stock had a grant date fair value of $102.18 per share and will vest on November 1, 2022 . On February 14, 2019 the Company granted an aggregate of 13,684 shares of restricted stock to all of its non-employee directors. The restricted stock had a grant date fair value of $120.61 per share and vests one , two or three years from the date of grant. The Company also has unvested restricted stock grants outstanding that were granted during prior fiscal years to its officers, key employees and outside directors. The aggregate number of shares outstanding at January 31, 2019 related to all unvested restricted stock grants totaled 301,706 . During the three months ended January 31, 2019 , the Company recorded compensation expense, included in the total stock based compensation expense above, of $2.2 million related to restricted stock grants, as compared to $2.0 million during the three months ended January 31, 2018 . The Company had $16.9 million in unrecognized share-based compensation costs as of January 31, 2019 , which will be recognized over a weighted average remaining vesting period of approximately 1 year, 9 months .

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Jan. 31, 2019
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Certain share-based payment awards described in Note 4 - Stock Compensation Plans above entitling holders to receive non-forfeitable dividends before vesting are considered participating securities and thus are included in the calculation of basic earnings per share, to the extent they are dilutive. These awards are included in the calculation of basic earnings per share under the two-class method. The two-class method allocates earnings for the period between common shareholders and other security holders. The participating awards receiving dividends are allocated the same amount of income as if they were vested shares. The following table presents earnings (loss) per share. Three months ended January 31, 2019 January 31, 2018 (in thousands except per share amounts) Net income (loss) $ (17,833 ) $ 51,206 Distributed and undistributed (earnings) to unvested restricted stock — (732 ) Distributed and undistributed earnings (loss) to common shareholders—Basic $ (17,833 ) $ 50,474 Weighted average shares outstanding—Basic 21,814 22,501 Weighted average shares outstanding—Diluted 21,814 22,501 Earnings (loss) per common share—Basic $ (0.82 ) $ 2.24 Earnings (loss) per common share—Diluted $ (0.82 ) $ 2.24

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Jan. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The Company holds certain items that are required to be disclosed at fair value, primarily debt instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 – Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. Fair values for debt are based on quoted market prices or published forward interest rate curves, and were categorized as Level 2 measurements. The fair value and carrying value of the Company's borrowings under its long-term debt were as follows: January 31, 2019 October 31, 2018 Fair Value Carrying Value Fair Value Carrying Value Total Debt (in millions) $ 58.5 $ 60.0 $ — $ —

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jan. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Property, Plant and Equipment In March 2017, the Company announced the selection of sites in Lindale, Mineola and Smith County, Texas, for the construction of a new poultry processing complex. The completed complex consists of a hatchery, feed mill, processing plant and waste water treatment facility. Construction commenced on this project during the fourth quarter of fiscal 2017, and the initial phase of operations of the completed complex began during the first quarter of 2019. The Company estimates the total capital expenditures for the complex will be approximately $225.0 million . As of January 31, 2019, the Company has spent approximately $208.3 million on the project, including approximately $298,000 of capitalized interest, and the remaining $16.7 million is expected to be spent during the remainder of fiscal 2019. As of January 31, 2019 , the Company has outstanding commitments totaling approximately $4.0 million related to purchase agreements for future delivery of aircraft. These commitments are expected to be paid during the second quarter of fiscal 2019. Litigation Between September 2, 2016 and October 13, 2016, Sanderson Farms, Inc. and our subsidiaries were named as defendants, along with 13 other poultry producers and certain of their affiliated companies, in multiple putative class action lawsuits filed by direct and indirect purchasers of broiler chickens in the United States District Court for the Northern District of Illinois. The complaints allege that the defendants conspired to unlawfully fix, raise, maintain, and stabilize the price of broiler chickens, thereby violating federal and certain states’ antitrust laws, and also allege certain related state-law claims. The complaints also allege that the defendants fraudulently concealed the alleged anticompetitive conduct in furtherance of the conspiracy. The complaints seek damages, including treble damages for the antitrust claims, injunctive relief, costs, and attorneys’ fees. As detailed below, the Court has consolidated all of the direct purchaser complaints into one case, and the indirect purchaser complaints into two cases, one on behalf of commercial and institutional indirect purchaser plaintiffs and one on behalf of end-user consumer plaintiffs. On October 28, 2016, the direct and indirect purchaser plaintiffs filed consolidated, amended complaints, and on November 23, 2016, the direct and indirect purchaser plaintiffs filed second amended complaints. On December 16, 2016, the indirect purchaser plaintiffs separated into two cases. On that date, the commercial and institutional indirect purchaser plaintiffs filed a third amended complaint, and the end-user consumer plaintiffs filed an amended complaint. On January 27, 2017, the defendants filed motions to dismiss the amended complaints in all of the cases, and on November 20, 2017, the motions to dismiss were denied. On February 7, 2018, the direct purchaser plaintiffs filed their third amended complaint, adding three additional poultry producers as defendants. On February 12, 2018, the end-user consumer plaintiffs filed their second amended complaint, in which they also added three additional poultry producers as defendants, along with Agri Stats. On February 20, 2018, the commercial and institutional indirect purchaser plaintiffs filed their fourth amended complaint. On November 13, 2018, the commercial and institutional indirect purchaser plaintiffs filed their fifth amended complaint, adding three additional poultry producers as defendants. On November 28, 2018, the end-user consumer plaintiffs filed their third amended complaint. On January 15, 2019, the direct purchaser plaintiffs filed their fourth amended complaint, and the commercial and institutional indirect purchaser plaintiffs filed their sixth amended complaint. Both the direct purchaser plaintiffs and the commercial and institutional indirect purchaser plaintiffs added two new poultry producers as defendants. The parties are currently engaged in discovery. We intend to continue to defend the lawsuits vigorously; however, the Company cannot predict the outcome of these actions. If the plaintiffs were to prevail, the Company could be liable for damages, which could have a material, adverse effect on our financial position and results of operations. Between December 8, 2017 and February 18, 2019, additional purported direct-purchaser entities individually brought twenty-one separate suits against seventeen poultry producers, including Sanderson Farms, and Agri Stats in the United States District Court for the Northern District of Illinois and the United States District Court for the District of Kansas. These suits allege substantially similar claims to the direct purchaser class complaint described above. Those filed in the Northern District of Illinois are now pending in front of the same judge as the putative class action lawsuits. The parties are currently engaged in discovery. On June 26, 2018, the defendants filed a motion to transfer the case filed in the District of Kansas to the Northern District of Illinois, and that motion was granted on September 13, 2018. It is possible additional individual actions may be filed. Sanderson Farms, Inc.; Joe F. Sanderson, Jr., the Chairman of the Registrant’s Board of Directors and its Chief Executive Officer; and D. Michael Cockrell, director and Chief Financial Officer, were named as defendants in a putative class action lawsuit filed on October 28, 2016, in the United States District Court for the Southern District of New York. On March 30, 2017, the lead plaintiff filed an amended complaint adding Lampkin Butts, director, Chief Operating Officer, and President, as a defendant, and on June 15, 2017, the lead plaintiff filed a second amended complaint. The complaint alleges that the defendants made statements in the Company’s SEC filings and press releases, and other public statements, that were materially false and misleading in light of the Company’s alleged, undisclosed violation of the federal antitrust laws described above. The complaint also alleges that the material misstatements were made in order to, among other things, “artificially inflate and maintain the market price of Sanderson Farms securities.” The complaint alleges the defendants thereby violated the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and, for the individual defendants, Section 20(a) of the Exchange Act, and seeks damages, interest, costs and attorneys’ fees. On January 19, 2018, the Court granted the defendants’ motion to dismiss and entered judgment for the defendants. On January 31, 2018, the plaintiff filed a notice of appeal to the United States Court of Appeals for the Second Circuit. That appeal is now fully briefed, and the Court of Appeals heard oral argument on August 31, 2018. The Company is awaiting a ruling on the appeal. If the plaintiffs were to prevail in the action, the Company could be liable for damages, which could have a material, adverse effect on our financial position and results of operations. On January 30, 2017, the Company received a letter from a putative shareholder demanding that the Company take action against current and/or former officers and directors of the Company for alleged breach of their fiduciary duties. The shareholder asserted that the officers and directors (i) failed to take any action to stop the alleged antitrust conspiracy described above, despite their alleged knowledge of the conspiracy, and (ii) made and/or caused the Company to make materially false and misleading statements by failing to disclose the alleged conspiracy. The shareholder also asserted that certain directors engaged in “insider sales” from which they improperly benefited. The shareholder also demanded that the Company adopt unspecified corporate governance improvements. On February 9, 2017, pursuant to statutory procedures available in connection with demands of this type, the Company’s board of directors appointed a special committee of qualified directors to determine, after conducting a reasonable inquiry, whether it is in the Company’s best interests to pursue any of the actions asserted in the shareholder’s letter. On April 26, 2017, the special committee reported to the Company’s board of directors its determination that it is not in the Company’s best interests to take any of the demanded actions at this time, and that no governance improvements related to the subject matter of the demand are needed at this time. On May 5, 2017, the special committee’s counsel informed the shareholder’s counsel of the committee’s determination. As of the date of filing of this report, and to the Company’s knowledge, no legal proceedings related to the shareholder’s demand have been filed. On January 27, 2017, Sanderson Farms, Inc. and our subsidiaries were named as defendants, along with four other poultry producers and certain of their affiliated companies, in a putative class action lawsuit filed in the United States District Court for the Eastern District of Oklahoma. On March 27, 2017, Sanderson Farms, Inc. and our subsidiaries were named as defendants, along with four other poultry producers and certain of their affiliated companies, in a second putative class action lawsuit filed in the United States District Court for the Eastern District of Oklahoma. The Court ordered the suits consolidated into one proceeding, and on July 10, 2017, the plaintiffs filed a consolidated amended complaint. The consolidated amended complaint alleges that the defendants unlawfully conspired by sharing data on compensation paid to broiler farmers, with the purpose and effect of suppressing the farmers’ compensation below competitive levels. The consolidated amended complaint also alleges that the defendants unlawfully conspired to not solicit or hire the broiler farmers who were providing services to other defendants. The consolidated amended complaint seeks treble damages, costs and attorneys’ fees. On September 8, 2017, the defendants filed a motion to dismiss the amended complaint, on October 23, 2017, the plaintiffs filed their response, and on November 22, 2017, the defendants filed a reply. On January 19, 2018, the Court granted the Sanderson Farms defendants’ motion to dismiss for lack of personal jurisdiction. The motion to dismiss the complaint filed in the Eastern District of Oklahoma on its merits is pending as to the remaining defendants. On February 21, 2018, the plaintiffs filed a substantially similar lawsuit in the United States District Court for the Eastern District of North Carolina against Sanderson Farms and our subsidiaries and another poultry producer. The plaintiffs subsequently moved to consolidate this action with the Eastern District of Oklahoma action in the Eastern District of Oklahoma for pre-trial proceedings, with the defendants in support thereof. That motion was denied. On July 13, 2018, the defendants moved to dismiss the lawsuit in the Eastern District of North Carolina. On January 15, 2019, the Court granted in part the defendants' motion to dismiss and stayed the action in the Eastern District of North Carolina pending resolution of the action in the Eastern District of Oklahoma. We intend to defend this case vigorously; however, the Company cannot predict the outcome of this action. If the plaintiffs were to prevail, the Company could be liable for damages, which could have a material, adverse effect on our financial position and results of operations. On February 21, 2017, Sanderson Farms, Inc. received an antitrust civil investigative demand from the Office of the Attorney General, Department of Legal Affairs, of the State of Florida. Among other things, the demand seeks information related to the Georgia Dock Index and other information on poultry and poultry products published by the Georgia Department of Agriculture and its Poultry Market News division. The Company is cooperating fully with the investigative demand, and we have responded to all requests received to date; however, we are unable to predict its outcome at this time. On June 22, 2017, the Company was named as a defendant in a lawsuit filed in the United States District Court for the Northern District of California. The complaint, which was brought by three non-profit organizations (the Organic Consumers Association, Friends of the Earth, and Center for Food Safety) alleged that the Company is violating the California Unfair Competition Law and the California False Advertising Law by representing that its poultry products are “100% Natural” products raised with “100% Natural” farming procedures. Among other things, the plaintiffs alleged that the Company’s products contain residues of human and animal antibiotics, other pharmaceuticals, hormones, steroids, and pesticides. Plaintiffs seek an order enjoining the Company from continuing its allegedly unlawful marketing program and requiring the Company to conduct a corrective advertising campaign; an accounting of the Company’s profits derived from the allegedly unlawful marketing practices; and attorneys’ fees, costs and interest. On August 2, 2017, the Company moved to dismiss the lawsuit on various grounds. On August 23, 2017, the plaintiffs filed an amended complaint, which includes substantially similar allegations as the original complaint, and the Company filed a motion to dismiss the amended complaint on September 13, 2017. On February 9, 2018, the Court denied the Company’s motion to dismiss. On February 13, 2018, the Company filed a motion for sanctions under Federal Rule of Civil Procedure 11 on the basis that Plaintiffs and their counsel knowingly included false or inaccurate statements and unsupported allegations in their complaints and other filings. The Court denied that motion on April 2, 2018. An initial scheduling conference was held on March 1, 2018, and discovery started thereafter. On June 25, 2018, the plaintiffs amended their complaint for a second time, including to remove allegations that USDA had found the Company’s chicken samples to contain residues of antibiotics or other substances. On July 9, 2018, the Company filed a motion to dismiss the second amended complaint. On July 18, 2018, during the pendency of that motion, the parties stipulated to the voluntary dismissal of one of the plaintiff organizations (the Organic Consumers Association). The other two plaintiffs continue to prosecute their claims. On September 11, 2018, the Court granted the motion to dismiss the second amended complaint with leave to amend the complaint, and on October 2, 2018, the plaintiffs filed a third amended complaint. The third amended complaint alleges that the Company misleads consumers with regard to (1) the presence of unnatural residues in its chicken products; (2) the fact that it uses antibiotics in raising its chickens; (3) the conditions in which it raises its chickens; and (4) the risks of human antibiotic resistance caused by the Company’s use of antibiotics. On October 16, 2018, the Company filed a motion to dismiss the third amended complaint, and on December 3, 2018, the Court denied that motion. The case is currently back in discovery. The Company continues to vigorously defend itself; however, the Company cannot predict the outcome of this action. If the plaintiffs were to prevail, the Company’s reputation and marketing program could be materially, adversely affected, which could have a material, adverse effect on our financial position and results of operations. The Company is involved in various other claims and litigation incidental to its business. Although the outcome of these matters cannot be determined with certainty, management, upon the advice of counsel, is of the opinion that the final outcome of currently pending matters, other than those discussed above, should not have a material effect on the Company’s consolidated results of operations or financial position. The Company recognizes the costs of legal defense for the legal proceedings to which it is a party in the periods incurred. After a considerable analysis of each case, the Company has determined that no accrual is required for any of the foregoing matters as of January 31, 2019. Future reserves may be required if losses are deemed reasonably estimable and probable due to changes in the Company’s assumptions, the effectiveness of legal strategies, or other factors beyond the Company’s control. Future results of operations may be materially affected by the creation of reserves or by accruals of losses to reflect any adverse determinations in these legal proceedings.

CREDIT AGREEMENT

CREDIT AGREEMENT	3 Months Ended
	Jan. 31, 2019
Debt Disclosure [Abstract]
CREDIT AGREEMENT	CREDIT AGREEMENT The Company is a party to a revolving credit facility dated April 28, 2017, as amended on November 22, 2017 and June 14, 2018, with a maximum available borrowing capacity of $900.0 million . The facility has annual capital expenditure limitations of $110.0 million , $115.0 million , $120.0 million and $125.0 million for fiscal years 2019 through 2022, respectively, and permits up to $20.0 million of the unused capital expenditure limitation for any fiscal year starting with fiscal 2017 to be carried over to the next fiscal year. The capital expenditure limitation for fiscal 2019 is $130.0 million , including $20.0 million carried over from fiscal 2018. As amended on June 14, 2018, the credit facility also permits capital expenditures up to $250.0 million on the construction of a new poultry processing complex in Lindale, Mineola and Smith County, Texas, up to $210.0 million on the construction of a potential additional new poultry complex, up to $15.0 million on expansion of the Company's existing prepared chicken facility in Flowood, Mississippi, up to $60.0 million on a potential new prepared chicken facility, and up to $70.0 million on the purchase of three new aircraft. As amended on November 22, 2017, the facility also excludes from the capital expenditure limits certain capital projects in an aggregate amount of up to $135.0 million . These additional projects, which include the construction of a new feed mill, and other expansions, equipment and changes to the Laurel, Collins, McComb and Hazlehurst, Mississippi complexes; the Waco, Palestine and Brazos, Texas complexes; the Moultrie, Georgia complex; and the Kinston, North Carolina complex, are each subject to their own expenditure limitations. Under the credit facility, the Company may not exceed a maximum debt to total capitalization ratio of 50% . The Company has a one-time right, at any time during the term of the agreement, to increase the maximum debt to total capitalization ratio then in effect by five percentage points in connection with the construction of any of the three aforementioned new complexes for the four fiscal quarters beginning on the first day of the fiscal quarter during which the Company gives written notice of its intent to exercise this right. The Company has not exercised this right. The facility also sets a minimum net worth requirement that at January 31, 2019 , was $1,031.3 million . The credit is unsecured and, unless extended, will expire on April 28, 2022 . As of January 31, 2019 , the Company had borrowed $60.0 million under the revolving credit facility, and had approximately $25.3 million outstanding in letters of credit, leaving $814.7 million of borrowing capacity available under the facility. As of February 25, 2019, the Company had borrowed $100.0 million under the revolving credit facility, and had approximately $25.3 million outstanding in letters of credit, leaving $774.7 million of borrowing capacity available under the facility.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Jan. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s estimated annual effective tax rate for the three months ended January 31, 2019 was 25.9% , as compared to (198.2)% for the three months ended January 31, 2018 . During the first quarter of fiscal 2018, the revaluation of our deferred taxes using the tax rate enacted by the Tax Cuts and Jobs Act during that quarter resulted in the recognition of a $37.5 million discrete income tax benefit. There were no other material discrete items affecting either period. Excluding the effects of discrete items, the Company's estimated annual effective tax rates for the first three months of fiscal 2019 and 2018 would have been approximately 25.4% and 24.4% , respectively. The Company estimates its effective tax rate for the full fiscal year 2019 , exclusive of discrete items, will be approximately 25.4% . As of January 31, 2019 , the Company's long-term deferred income tax liability was $56.4 million as compared to $62.8 million at October 31, 2018 , a decrease of $6.3 million .

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jan. 31, 2019
Accounting Policies [Abstract]
Basis of Accounting	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments consisting of normal recurring accruals considered necessary for a fair presentation have been included. Operating results for the three months ended January 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2019 . The condensed consolidated balance sheet at October 31, 2018 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, reference is made to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended October 31, 2018 .
New Accounting Pronouncements	New Accounting Pronouncements In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-09, Scope of Modification Accounting, which amends the requirements related to accounting for changes to stock compensation awards. The guidance is effective for annual periods,and interim periods within those annual periods, beginning after December 15, 2017, our fiscal 2019. The Company adopted this guidance during the first quarter of fiscal 2019, and it did not have an impact on our consolidated financial statements. The impact this guidance will have on our future consolidated financial statements will depend on the nature and extent of future changes, if any, to the terms and conditions of the Company's Stock Incentive Plan. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which changes the criteria for recognizing revenue. ASU 2014-09 was amended by ASU 2015-14 to defer the effective date by one year. The guidance also modifies the related disclosure requirements, clarifies guidance for multiple-element arrangements and provides guidance for transactions that were not addressed fully in previous guidance. The guidance, as amended, is effective for annual reporting periods, and interim periods within those annual reporting periods, beginning after December 15, 2017, our fiscal 2019. The Company adopted this guidance using the modified retrospective transition method during the first quarter of fiscal 2019, and it did not have a material impact on our consolidated financial statements. Under the modified retrospective method, prior periods were not adjusted. Additionally, based on our contract assessments, no cumulative-effect adjustment was made to the opening balance of retained earnings. For further information regarding the Company's revenue, refer to Part I, Item 1, Notes to Condensed Consolidated Financial Statements, Note 2 - Revenue. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718, Compensation - Stock Compensation, to include all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases. The guidance is intended to increase transparency and comparability among companies by requiring an entity that is a lessee to recognize on the balance sheet the right-of-use assets and lease liabilities arising from all leases with terms, as defined by the guidance, of greater than twelve months. The guidance also requires disclosure of key information about leasing arrangements. The guidance is effective for annual reporting periods, and interim periods within those annual reporting periods, beginning after December 15, 2018, our fiscal 2020. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements.
Earnings Per Share	Certain share-based payment awards described in Note 4 - Stock Compensation Plans above entitling holders to receive non-forfeitable dividends before vesting are considered participating securities and thus are included in the calculation of basic earnings per share, to the extent they are dilutive. These awards are included in the calculation of basic earnings per share under the two-class method. The two-class method allocates earnings for the period between common shareholders and other security holders. The participating awards receiving dividends are allocated the same amount of income as if they were vested shares.
Fair Value Of Financial Instruments	The Company holds certain items that are required to be disclosed at fair value, primarily debt instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 – Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Commitments and Contingencies	The Company is involved in various other claims and litigation incidental to its business. Although the outcome of these matters cannot be determined with certainty, management, upon the advice of counsel, is of the opinion that the final outcome of currently pending matters, other than those discussed above, should not have a material effect on the Company’s consolidated results of operations or financial position. The Company recognizes the costs of legal defense for the legal proceedings to which it is a party in the periods incurred. After a considerable analysis of each case, the Company has determined that no accrual is required for any of the foregoing matters as of January 31, 2019. Future reserves may be required if losses are deemed reasonably estimable and probable due to changes in the Company’s assumptions, the effectiveness of legal strategies, or other factors beyond the Company’s control. Future results of operations may be materially affected by the creation of reserves or by accruals of losses to reflect any adverse determinations in these legal proceedings.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Jan. 31, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates our net sales by product category (in thousands): Product Category Three Months Ended January 31, 2019 Fresh, chill-packed chicken $ 268.5 Fresh, vacuum-sealed chicken 260.0 Fresh, ice-packed chicken 100.0 Minimally prepared chicken 57.4 Frozen chicken 48.6 Other 8.9 Total net sales $ 743.4

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Jan. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consisted of the following: January 31, 2019 October 31, 2018 (In thousands) Live poultry-broilers and breeders $ 174,221 $ 150,980 Feed, eggs and other 38,151 37,965 Processed poultry 27,176 30,973 Prepared chicken 14,296 13,591 Packaging materials 7,924 6,547 $ 261,768 $ 240,056

STOCK COMPENSATION PLANS (Table

STOCK COMPENSATION PLANS (Tables)	3 Months Ended
	Jan. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Compensation Cost Related to Performance Share Agreements	The Company's compensation cost related to performance share agreements is summarized as follows (in thousands, except number of shares): Three months ended Date of Performance Share Agreement Number of shares issued (actual (a) or estimated (e)) January 31, 2019 January 31, 2018 November 1, 2015 145,197 (a) $ — $ 846 November 1, 2016 85,159 (e) 613 3,326 November 1, 2017 (1) — — — November 1, 2018 (1) — — — Total compensation cost $ 613 $ 4,172 Note (1) - As of January 31, 2019, the Company could not determine that achievement of the applicable performance-based criteria is probable for the agreements entered into on November 1, 2017 and 2018 due to the uncertainties discussed above, and therefore recorded no compensation expense related to those agreements.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Jan. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	The following table presents earnings (loss) per share. Three months ended January 31, 2019 January 31, 2018 (in thousands except per share amounts) Net income (loss) $ (17,833 ) $ 51,206 Distributed and undistributed (earnings) to unvested restricted stock — (732 ) Distributed and undistributed earnings (loss) to common shareholders—Basic $ (17,833 ) $ 50,474 Weighted average shares outstanding—Basic 21,814 22,501 Weighted average shares outstanding—Diluted 21,814 22,501 Earnings (loss) per common share—Basic $ (0.82 ) $ 2.24 Earnings (loss) per common share—Diluted $ (0.82 ) $ 2.24

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Jan. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet	Fair values for debt are based on quoted market prices or published forward interest rate curves, and were categorized as Level 2 measurements. The fair value and carrying value of the Company's borrowings under its long-term debt were as follows: January 31, 2019 October 31, 2018 Fair Value Carrying Value Fair Value Carrying Value Total Debt (in millions) $ 58.5 $ 60.0 $ — $ —

REVENUE - Additional Informatio

REVENUE - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Revenue from External Customer [Line Items]
Net sales	$ 743,388	$ 771,948
Cost of sales	708,400	702,101
Selling, general and administrative	58,535	52,575
ASC 606
Revenue from External Customer [Line Items]
Net sales		(2,500)
Selling, general and administrative	2,600
ASC 606 | Other
Revenue from External Customer [Line Items]
Net sales	$ 6,600
Cost of sales		$ (3,900)

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Revenue from External Customer [Line Items]
Net sales	$ 743,388	$ 771,948
Fresh, chill-packed chicken
Revenue from External Customer [Line Items]
Net sales	268,500
Fresh, vacuum-sealed chicken
Revenue from External Customer [Line Items]
Net sales	260,000
Fresh, ice-packed chicken
Revenue from External Customer [Line Items]
Net sales	100,000
Minimally prepared chicken
Revenue from External Customer [Line Items]
Net sales	57,400
Frozen chicken
Revenue from External Customer [Line Items]
Net sales	48,600
Other
Revenue from External Customer [Line Items]
Net sales	$ 8,900

INVENTORIES (Detail)

INVENTORIES (Detail) - USD ($) $ in Thousands	Jan. 31, 2019	Oct. 31, 2018
Inventory [Line Items]
Inventories	$ 261,768	$ 240,056
Live poultry-broilers and breeders
Inventory [Line Items]
Inventories	174,221	150,980
Feed, eggs and other
Inventory [Line Items]
Inventories	38,151	37,965
Processed poultry
Inventory [Line Items]
Inventories	27,176	30,973
Prepared chicken
Inventory [Line Items]
Inventories	14,296	13,591
Packaging materials
Inventory [Line Items]
Inventories	$ 7,924	$ 6,547

STOCK COMPENSATION PLANS - Addi

STOCK COMPENSATION PLANS - Additional Information (Details) - USD ($)	Feb. 14, 2019	Nov. 01, 2018	Feb. 15, 2018	Jan. 31, 2019	Jan. 31, 2018	Jul. 31, 2018	Oct. 31, 2018	Oct. 31, 2017	Nov. 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense				$ 2,900,000	$ 6,200,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense				$ 2,200,000	2,000,000
Aggregate number of shares outstanding (in shares)				301,706
Unrecognized share-based compensation costs				$ 16,900,000
Weighted average vesting period				1 year 9 months
Restricted Stock | Outside Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant date fair value of restricted shares (in usd per share)			$ 120.61
Restricted Stock | Outside Directors | Scenario One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Restricted Stock | Outside Directors | Scenario Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
Restricted Stock | Outside Directors | Scenario Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense				$ 613,000	4,172,000
Performance period (in years)				2 years
Additional service period				1 year
Target number of shares (in shares)								53,850
Management Share Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense				$ 91,000	62,000
Management Share Purchase Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)				1,992
Average price per share purchased by participants (in usd per share)				$ 99.29
Management Share Purchase Plan | Matching Restricted Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)				474
Performance Share Plan 2017 | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense				$ 0	0
Target number of common stock to be granted (in shares)									74,650
Aggregate number of shares outstanding (in shares)				0
Performance Share Plan 2017 | Performance Based Awards | Officers And Key Management Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of restricted stock granted (in shares)		74,650
Grant date fair value of restricted shares (in usd per share)		$ 102.18
Performance Share Plan 2016 | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense				$ 0	0
Aggregate number of shares outstanding (in shares)				0
Compensation not yet recognized							$ 2,000,000
Performance Share Plan 2015 | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense				$ 613,000	$ 3,326,000
Additional service period				1 year
Aggregate number of shares outstanding (in shares)				85,159
Potential accrued compensation cost				$ 1,300,000		$ 6,500,000
Minimum | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of potential performance shares received				50.00%
Maximum | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of potential performance shares received				200.00%
Subsequent Event | Restricted Stock | Outside Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of restricted stock granted (in shares)	13,684

STOCK COMPENSATION PLANS - Comp

STOCK COMPENSATION PLANS - Compensation Costs (Details) - USD ($)	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense	$ 2,900,000	$ 6,200,000
Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense	$ 613,000	4,172,000
Performance Based Awards | Performance Share Plan 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share issued (in shares)	145,197
Total stock based compensation expense	$ 0	846,000
Performance Based Awards | Performance Share Plan 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share issued (in shares)	85,159
Total stock based compensation expense	$ 613,000	3,326,000
Performance Based Awards | Performance Share Plan 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share issued (in shares)	0
Total stock based compensation expense	$ 0	0
Performance Based Awards | Performance Share Plan 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share issued (in shares)	0
Total stock based compensation expense	$ 0	$ 0

EARNINGS PER SHARE (Detail)

EARNINGS PER SHARE (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2019	Jan. 31, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ (17,833)	$ 51,206
Distributed and undistributed (earnings) to unvested restricted stock	0	(732)
Distributed and undistributed earnings (loss) to common shareholders—Basic	$ (17,833)	$ 50,474
Weighted average shares outstanding—Basic (in shares)	21,814	22,501
Weighted average shares outstanding—Diluted (in shares)	21,814	22,501
Earnings per common share-Basic (in usd per share)	$ (0.82)	$ 2.24
Earnings per common share-Diluted (in usd per share)	$ (0.82)	$ 2.24

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions	Jan. 31, 2019	Oct. 31, 2018
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Debt	$ 58.5	$ 0
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Debt	$ 60	$ 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Detail) $ in Thousands	3 Months Ended
	Jan. 31, 2019USD ($)
Long-term Purchase Commitment [Line Items]
Total purchase obligation	$ 4,000
Texas
Long-term Purchase Commitment [Line Items]
Estimated cost of investment	225,000
Total purchase obligation	208,300
Interest costs capitalized	298
Purchase obligation, due in remainder of fiscal year	$ 16,700

CREDIT AGREEMENT (Detail)

CREDIT AGREEMENT (Detail)	Feb. 25, 2019USD ($)	Jan. 31, 2019USD ($)	Oct. 31, 2018USD ($)	Jun. 14, 2018USD ($)	Nov. 22, 2017USD ($)
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity				$ 900,000,000
Long-term debt		$ 60,000,000	$ 0
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility, permitted carry over of capital expenditure limitation		20,000,000
Revolving credit facility, annual capital expenditure limitations		130,000,000
Line of credit | 2018
Debt Instrument [Line Items]
Revolving credit facility, permitted carry over of capital expenditure limitation		20,000,000
Line of credit | 2019
Debt Instrument [Line Items]
Revolving credit facility, capital expenditure limitation				110,000,000
Line of credit | 2020
Debt Instrument [Line Items]
Revolving credit facility, capital expenditure limitation				115,000,000
Line of credit | 2021
Debt Instrument [Line Items]
Revolving credit facility, capital expenditure limitation				120,000,000
Line of credit | 2022
Debt Instrument [Line Items]
Revolving credit facility, capital expenditure limitation				$ 125,000,000
Line of credit | Revolving Credit Facility
Debt Instrument [Line Items]
Ratio of indebtedness to net capital				0.50
Revolving credit facility, maximum debt to total capitalization ratio (as percent)				0.05
Revolving credit facility, minimum net worth requirement		1,031,300,000
Long-term debt		60,000,000
Revolving credit facility, remaining available balance		814,700,000
Line of credit | Letter of Credit
Debt Instrument [Line Items]
Long-term debt		$ 25,300,000
Construction expenditure limitation | Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility, construction expenditure limitation					$ 135,000,000
Construction expenditure limitation | Revolving Credit Facility | Tyler, Texas
Debt Instrument [Line Items]
Revolving credit facility, construction expenditure limitation				$ 250,000,000
Construction expenditure limitation | Revolving Credit Facility | Unknown City and State
Debt Instrument [Line Items]
Revolving credit facility, construction expenditure limitation				210,000,000
Construction expenditure limitation | Revolving Credit Facility | Floowood, Mississippi
Debt Instrument [Line Items]
Revolving credit facility, construction expenditure limitation				15,000,000
Processing Complex | Revolving Credit Facility | Unknown City and State
Debt Instrument [Line Items]
Revolving credit facility, construction expenditure limitation				60,000,000
Aircraft expenditure | Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility, capital expenditure limitation				$ 70,000,000
Subsequent Event | Line of credit | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt	$ 100,000,000
Revolving credit facility, remaining available balance	774,700,000
Subsequent Event | Line of credit | Letter of Credit
Debt Instrument [Line Items]
Long-term debt	$ 25,300,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jan. 31, 2019	Jan. 31, 2018	Oct. 31, 2019	Oct. 31, 2018
Income Taxes [Line Items]
Effective income tax rate reconciliation	25.90%	(198.20%)
Change in tax rate, deferred tax asset, provisional income tax benefit		$ 37,500
Effective income tax rate, excluding discrete items	25.40%	24.40%
Deferred income taxes	$ 56,447			$ 62,793
Decrease in deferred income taxes	$ 6,300
Scenario, Forecast
Income Taxes [Line Items]
Effective income tax rate, excluding discrete items			25.40%