Sanderson Farms (SAFM) 10-Q 24 Feb 22 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Jan. 31, 2022	Feb. 22, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 31, 2022
Document Transition Report	false
Entity File Number	1-14977
Entity Registrant Name	Sanderson Farms, Inc
Entity Incorporation, State or Country Code	MS
Entity Tax Identification Number	64-0615843
Entity Address, Address Line One	127 Flynt Road
Entity Address, City or Town	Laurel
Entity Address, State or Province	MS
Entity Address, Postal Zip Code	39443
City Area Code	601
Local Phone Number	649-4030
Title of 12(b) Security	Common Stock, $1 par value per share
Trading Symbol	SAFM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		22,323,097
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000812128
Current Fiscal Year End Date	--10-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2022	Oct. 31, 2021
Current assets:
Cash and cash equivalents	$ 685,823	$ 439,339
Accounts receivable, net	224,082	223,865
Receivable from insurance companies	0	2,057
Inventories	367,454	350,959
Refundable income taxes	0	7,418
Prepaid expenses and other current assets	69,807	62,632
Total current assets	1,347,166	1,086,270
Property, plant and equipment, net	1,207,512	1,224,334
Right of use assets	24,112	28,238
Other assets	5,927	6,191
Total assets	2,584,717	2,345,033
Current liabilities:
Accounts payable	206,895	152,421
Dividends payable	9,823	0
Accrued expenses	80,566	144,453
Lease liabilities	10,707	12,189
Accrued income taxes	50,946	0
Total current liabilities	358,937	309,063
Claims payable and other liabilities	13,005	13,078
Deferred income taxes	160,465	156,531
Long-term lease liabilities	13,477	16,122
Commitments and contingencies
Preferred Stock:
Common Stock, $1 par value: authorized 100,000,000 shares; issued and outstanding shares—22,324,066 and 22,329,731 at January 31, 2022 and October 31, 2021, respectively	22,324	22,330
Paid-in capital	111,133	105,517
Retained earnings	1,905,376	1,722,392
Total stockholders’ equity	2,038,833	1,850,239
Total liabilities and stockholders’ equity	2,584,717	2,345,033
Series A Junior Participating Preferred Stock, $100 par value: authorized 500,000 shares, none issued
Preferred Stock:
Preferred Stock:
Par value to be determined by the Board of Directors: authorized 4,500,000 shares; none issued
Preferred Stock:
Preferred Stock:

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 31, 2022	Oct. 31, 2021
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)	22,324,066	22,329,731
Common Stock, shares outstanding (in shares)	22,324,066	22,329,731
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, 2022	Jan. 31, 2021
Income Statement [Abstract]
Net sales	$ 1,327,428	$ 909,306
Cost and expenses:
Cost of sales	1,008,054	839,322
Selling, general and administrative	65,738	56,599
Cost and expenses	1,073,792	895,921
Operating income	253,636	13,385
Other income (expense):
Interest income	97	0
Interest expense	(577)	(638)
Other	3	3
Other income (expense)	(477)	(635)
Income before income taxes	253,159	12,750
Income tax expense	60,352	3,272
Net income	$ 192,807	$ 9,478
Earnings per share:
Basic (in usd per share)	$ 8.64	$ 0.42
Diluted (in usd per share)	8.64	0.42
Dividends per share (in usd per share)	$ 0.44	$ 0.44

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Paid-In Capital	Retained Earnings
Beginning balance (in shares) at Oct. 31, 2020		22,251,071
Beginning balance at Oct. 31, 2020	$ 1,419,273	$ 22,251	$ 90,420	$ 1,306,602
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,478			9,478
Cash dividends	(9,824)			(9,824)
Stock compensation plan transactions (in shares)		74,564
Stock compensation plan transactions	(1,592)	$ 75	(1,667)
Amortization of unearned compensation	2,147		2,147
Ending balance (in shares) at Jan. 31, 2021		22,325,635
Ending balance at Jan. 31, 2021	1,419,482	$ 22,326	90,900	1,306,256
Beginning balance (in shares) at Oct. 31, 2021		22,329,731
Beginning balance at Oct. 31, 2021	1,850,239	$ 22,330	105,517	1,722,392
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	192,807			192,807
Cash dividends	(9,823)			(9,823)
Stock compensation plan transactions (in shares)		(5,665)
Stock compensation plan transactions	(2,273)	$ (6)	(2,267)
Amortization of unearned compensation	7,883		7,883
Ending balance (in shares) at Jan. 31, 2022		22,324,066
Ending balance at Jan. 31, 2022	$ 2,038,833	$ 22,324	$ 111,133	$ 1,905,376

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends (in usd per share)	$ 0.44	$ 0.44

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Operating activities
Net income	$ 192,807	$ 9,478
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43,523	40,566
Amortization of share-based compensation	8,406	2,671
Deferred income taxes	3,934	1,169
Gain on asset disposals	(119)	(48)
Change in assets and liabilities:
Accounts receivable - trade	(217)	(20,165)
Accounts receivable - insurance	2,057	0
Income taxes	58,364	2,076
Inventories	(16,495)	(35,665)
Prepaid expenses and other assets	(7,164)	(4,191)
Right of use assets	4,126	3,891
Lease liabilities	(4,126)	(3,891)
Accounts payable	55,865	17,995
Accrued expenses and other liabilities	(64,459)	(4,455)
Total adjustments	83,695	(47)
Net cash provided by operating activities	276,502	9,431
Investing activities
Capital expenditures	(27,876)	(36,859)
Net proceeds from sale of property and equipment	156	65
Net cash used in investing activities	(27,720)	(36,794)
Financing activities
Borrowings from revolving line of credit	0	30,000
Proceeds from issuance of restricted stock under stock compensation plans	656	265
Payments from issuance of common stock under stock compensation plans	(2,954)	(1,873)
Net cash provided by (used in) financing activities	(2,298)	28,392
Net change in cash and cash equivalents	246,484	1,029
Cash and cash equivalents at beginning of period	439,339	49,061
Cash and cash equivalents at end of period	685,823	50,090
Supplemental disclosure of non-cash investing and financing activities:
Capital expenditures included in accounts payable	3,740	5,405
Dividends payable	$ 9,823	$ 9,823

ACCOUNTING POLICIES

ACCOUNTING POLICIES	3 Months Ended
	Jan. 31, 2022
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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2022. The condensed consolidated balance sheet at October 31, 2021 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, 2021. New Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Accounting Standards Codification 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2020, our fiscal 2022. We adopted this guidance during the first quarter of fiscal 2022, and adoption did not materially affect our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. This guidance, which became effective on March 12, 2020, and can be applied through December 31, 2022, has not affected our consolidated financial statements. We have a revolving credit facility that references LIBOR, and we are assessing how this standard may be applied to specific contract modifications through December 31, 2022.

REVENUE

REVENUE	3 Months Ended
	Jan. 31, 2022
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 smaller number of contracts, ownership of the product passes from the Company to the customer at some point during transit, at which time the performance obligation is satisfied and revenue is recognized. Revenue and related receivables are recognized based on the transaction price within the contract and are reduced by estimated or known amounts for items such as rebates, discounts, cooperative advertising allowances and other various items. The cost incurred for shipping and handling activities to deliver the product to the customer is recognized in cost of sales during the period in which the corresponding revenue is recognized. Where shipping and handling activities occur after the customer has obtained control of the product, the Company has elected to account for those expenses as fulfillment costs in cost of sales, rather than an additional promised service. Revenue is reported gross of any freight charge that is separately invoiced to a customer, and all freight costs are accounted for as cost of sales. Due to the nature of our contracts, commissions associated with such contracts provide only a short-term benefit (i.e. less than one year); therefore, we recognize costs of commissions paid to third-party brokers as selling, general and administrative expenses. Disaggregation of Revenue The following table disaggregates our net sales by product category: Product Category Three Months Ended January 31, 2022 Three Months Ended January 31, 2021 (in thousands) Fresh, vacuum-sealed chicken $ 519,631 $ 294,118 Fresh, chill-packed chicken 427,191 376,252 Fresh, ice-packed chicken 229,125 131,681 Frozen chicken 80,624 63,403 Prepared chicken 64,256 38,915 Other 6,601 4,937 Total net sales $ 1,327,428 $ 909,306

INVENTORIES

INVENTORIES	3 Months Ended
	Jan. 31, 2022
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories consisted of the following: Inventory type January 31, 2022 October 31, 2021 (in thousands) Live poultry-broilers and breeders $ 236,713 $ 229,245 Feed, eggs and other 62,813 57,994 Processed poultry 42,911 42,775 Prepared chicken 14,252 11,157 Packaging materials 10,765 9,788 Total Inventories $ 367,454 $ 350,959

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	3 Months Ended
	Jan. 31, 2022
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net, consisted of the following: Description January 31, 2022 October 31, 2021 (in thousands) Land and buildings $ 978,853 $ 976,012 Machinery and equipment 1,467,741 1,439,762 Work-in-process 13,791 19,924 2,460,385 2,435,698 Less accumulated depreciation (1,252,873) (1,211,364) Property, plant and equipment, net $ 1,207,512 $ 1,224,334

STOCK COMPENSATION PLANS

STOCK COMPENSATION PLANS	3 Months Ended
	Jan. 31, 2022
Share-based Payment Arrangement [Abstract]
STOCK COMPENSATION PLANS	STOCK COMPENSATION PLANS Refer to Note 10 and Note 11 of the Company’s October 31, 2021 audited financial statements in the Company's 2021 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, 2022 was $8.4 million, as compared to total stock based compensation expense of $2.7 million for the three months ended January 31, 2021. During the three months ended January 31, 2022, participants in the Company’s Management Share Purchase Plan ("MSPP") elected to receive a total of 3,443 shares of restricted stock at an average price of $190.64 per share instead of a specified percentage of their cash compensation, and the Company issued 824 matching restricted shares. During the three months ended January 31, 2022, the Company recorded compensation expense for the MSPP shares, included in the total stock based compensation expense above, of $58,000, as compared to $75,000 during the three months ended January 31, 2021. Pursuant to the Agreement and Plan of Merger with Walnut Sycamore Holdings LLC, a Delaware limited liability company (“Parent”), Sycamore Merger Sub LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of Parent (“Merger Sub”), and solely for purposes of certain provisions specified therein, Wayne Farms LLC, a Delaware limited liability company (the “Merger Agreement”), no new cash compensation reduction elections under the MSPP may be made after August 8, 2021, and no participants may increase their cash compensation reduction elections under the MSPP after August 8, 2021. During fiscal 2020 and 2021, 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 meet or 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, 2020 totaled 87,350. During the first quarter of fiscal 2022, the Company determined that achievement of the applicable performance based criteria for the November 1, 2020 agreements is probable at a level between threshold and target for the return on equity criteria and at a level between target and maximum for the return on sales criteria. Accordingly, the quarter ended January 31, 2022 includes compensation expense of $5,137,000, included in the total stock based compensation expense above, related to the agreements executed on November 1, 2020, as compared to no compensation expense related to those same agreements recorded during the quarter ended January 31, 2021. As of January 31, 2022, the aggregate number of shares estimated to be awarded related to the performance share agreements entered into on November 1, 2020 totaled 88,924 shares. The actual number of shares that can be awarded for those agreements could change materially from that estimate due to the Company's actual performance during the remaining nine months of the performance period ending October 31, 2022, and due to potential forfeitures. The Company will recognize the remaining unearned compensation related to these agreements over the remaining service period, which ends on October 31, 2023. Had the Company determined that it was probable that the maximum amount of those outstanding awards from the agreements entered into on November 1, 2020 would be earned, an additional $3.5 million of compensation expense would have been accrued as of January 31, 2022. The Company also has performance share agreements in place with certain officers and key employees that were entered into on November 1, 2019. The target number of shares specified in those agreements totaled 56,575. The Company has determined that shares covered by these agreements have been earned at a level between the threshold and target for the portion dependent upon return on equity criteria and at a level between target and maximum for the portion dependent upon return on sales criteria. Accordingly, the quarter ended January 31, 2022 includes compensation expense of $881,000 related to those agreements, included in the total stock based compensation expense above, as compared to no compensation expense related to those agreements recorded during the quarter ended January 31, 2021. There was no compensation expense recorded during the first quarter of fiscal 2021 related to these agreements, because the Company first determined it was probable that some portion of these shares would be earned during the third quarter of fiscal 2021. As of January 31, 2022, the aggregate number of shares estimated to be awarded related to the performance share agreements entered into on November 1, 2019 totaled 60,682 shares. Since the performance period for these 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, 2022. The Company will recognize the remaining unearned compensation related to these agreements over the remaining service period. Typically, the Company would have also entered into performance share agreements dated November 1, 2021, with its officers and key employees, but covenants in the Merger Agreement prohibited the Company from doing so. The Company's compensation expense 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, 2022 January 31, 2021 November 1, 2019 60,682 (e) 881 — November 1, 2020 88,924 (e) 5,137 — Total performance share compensation expense $ 6,018 $ —

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Jan. 31, 2022
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Certain share-based payment awards described in Note 5 - 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 per share: Three Months Ended January 31, 2022 January 31, 2021 (in thousands, except per share amounts) Net income $ 192,807 $ 9,478 Distributed and undistributed (earnings) to unvested restricted stock $ (2,186) $ (133) Distributed and undistributed earnings to common shareholders—Basic $ 190,621 $ 9,345 Weighted average shares outstanding—Basic 22,069 22,010 Weighted average shares outstanding—Diluted 22,069 22,010 Earnings per common share—Basic $ 8.64 $ 0.42 Earnings per common share—Diluted $ 8.64 $ 0.42

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jan. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation In re Broiler Chicken Antitrust 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. The cases are part of a coordinated proceeding captioned In re Broiler Chicken Antitrust Litigation . 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, Inc. 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, as well as Agri Stats, Inc. On August 6, 2020, the end-user consumer plaintiffs filed a motion for leave to file a fifth amended complaint. The Court granted the end-user consumer plaintiffs’ motion on September 22, 2020 and deemed the version of the complaint filed on August 7, 2020 operative on October 19, 2020. On October 23, 2020, the direct purchaser plaintiffs filed their fifth amended complaint and the commercial and institutional indirect purchaser plaintiffs filed their seventh amended complaint. Between December 8, 2017 and June 11, 2020, additional purported direct-purchaser entities individually brought separate suits against 20 poultry producers, including Sanderson Farms and Agri Stats, Inc., which have been consolidated with the other cases. These suits allege substantially similar claims to the direct purchaser class complaint described above; certain of the suits additionally allege related state-law and common-law claims, and related claims under federal and Georgia RICO statutes. Four complaints filed on June 12, 2020 also plead allegations of federal bid rigging. Since that time, an additional forty-eight individual actions have been filed, some of which also plead allegations of federal bid rigging. On January 29, 2021, the individual-action plaintiffs filed a consolidated amended complaint. Those suits filed in the Northern District of Illinois are now pending in front of the same judge as the putative class action lawsuits. On October 30, 2020, direct purchaser plaintiffs, commercial and institutional indirect purchaser plaintiffs, and end-user consumer plaintiffs filed motions for class certification. Defendants' oppositions to class certification were filed January 22, 2021. Class plaintiffs' replies in support of class certification were filed March 29, 2021. Those motions remain pending. On October 15, 2021, the Court ordered two different tracks of litigation with different timelines. The Court further clarified the two tracks at a December 20, 2021 hearing and in a December 20, 2021 order. One track is engaged in merits expert discovery. Plaintiffs proceeding on the second track will file a consolidated amended complaint on February 28, 2022. Otherwise, the second track does not have an agreed-upon schedule to date. It is possible additional individual actions may be filed. Department of Justice Antitrust Investigation The Company is aware that certain plaintiffs’ counsel in In re Broiler Chicken Antitrust Litigation received from the United States Department of Justice, Antitrust Division, a subpoena that included a request to produce all discovery in the case to a grand jury. On June 27, 2019, the Court in In re Broiler Chicken Antitrust Litigation permitted the United States Department of Justice to intervene in the case, as well as ordered certain discovery stayed until September 27, 2019. Before the discovery stay expired on September 27, 2019, the United States Department of Justice asked the Court in In re Broiler Chicken Antitrust Litigation to extend the discovery stay for an additional six months. On September 25, 2019, the Court granted the additional stay of not less than three months. On October 16, 2019, after further consideration, the Court extended the stay until June 27, 2020. On December 18, 2019, the Court after further consideration ordered that the stay be lifted on March 31, 2020, with the exception of certain discovery related to alleged bid-rigging claims brought by plaintiffs on the second track in In re Broiler Chicken Antitrust Litigation . The Company received a grand jury subpoena in connection with the United States Department of Justice Antitrust Division investigation on September 9, 2019. The Company is complying with the subpoena and providing documents and information as requested by the Department of Justice in connection with its investigation. State of New Mexico, ex rel. Hector Balderas v. Koch Foods Inc., et al. On September 1, 2020, the Attorney General of the State of New Mexico filed a lawsuit in New Mexico state court against Agri Stats, Inc. and producer defendants, including the Company. The lawsuit is substantially similar to those brought in In re Broiler Chicken Antitrust Litigation . The case also brings claims under the New Mexico Antitrust Act and New Mexico Unfair Trade Practices Act, as well as a common law unjust enrichment claim. Defendants responded to the complaint on February 1, 2021. The parties are currently engaged in discovery. State of Alaska v. Agri Stats, Inc. et al. On February 19, 2021, the Attorney General of the State of Alaska filed a lawsuit in Alaska state court against Agri Stats, Inc. and producer defendants, including the Company. The lawsuit is substantially similar to those brought in In re Broiler Chicken Antitrust Litigation . The case also brings claims under Alaska's antitrust statute and the Alaska Unfair Trade Practices and Consumer Protection Act, as well as a common law unjust enrichment claim. On May 12, 2021, certain defendants, including the Company, filed motions to dismiss the complaint for lack of personal jurisdiction. On November 18, 2021, the Court heard arguments on the motions to dismiss, but deferred ruling on the motions pending jurisdictional discovery. State of Washington v. Tyson Foods, Inc. et al. On August 6, 2020, the Company received a civil investigative demand ("CID") from the Office of the Attorney General for the State of Washington seeking information in connection with its investigation of possible violations of the Washington Consumer Protection Act and/or the Sherman Act concerning contracts, combinations, or conspiracies in restraint of trade or commerce in the market for broiler chicken. The Company cooperated with the investigative demand and provided documents and information as requested by the Office of the Attorney General. On October 25, 2021, the Attorney General filed an action in Washington state court against Agri Stats, Inc. and producer defendants, including the Company. The lawsuit is substantially similar to those brought in In re Broiler Chicken Antitrust Litigation . The complaint brings claims under the Washington Consumer Protection Act. Sanderson Farms was served with the complaint on November 1, 2021. The Company filed an answer denying the substance of the allegations on January 21, 2022. Discovery is ongoing. We intend to defend the In re Broiler Chicken Antitrust Litigation and related lawsuits vigorously; however, the Company cannot predict the outcome of these actions. If the plaintiffs were to prevail or the Department of Justice were to pursue charges, the Company could be liable for damages or other sanctions, which could have a material, adverse effect on our financial position and results of operations. In re Broiler Chicken Grower Litigation 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. 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, and briefing was completed on September 4, 2018. 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. On January 6, 2020, the Court in the Eastern District of Oklahoma denied defendants’ motion to dismiss. On May 27, 2020, the Company moved to dismiss the action in the Eastern District of North Carolina under the first-to-file rule. Plaintiffs filed their opposition on June 17, 2020, and the Company filed its reply on July 1, 2020. On September 11, 2020, additional named grower plaintiffs filed an identical putative class action in the District Court of Colorado against Sanderson Farms, Inc. and its Foods, Production, and Processing Divisions, as well as the other poultry producer defendants in the Oklahoma action. On October 14, 2020, Defendants moved to dismiss the case under the first-to-file doctrine because it is substantively identical to the earlier-filed cases pending in Oklahoma and North Carolina. Briefing on that motion was completed on December 16, 2020. On September 18, 2020, another named grower plaintiff filed another duplicate class action in the District Court of Kansas against the same defendants as the Colorado action. On October 13, 2020, Defendants moved to dismiss the case under the first-to-file doctrine because it is substantively identical to the earlier-filed cases pending in Oklahoma, North Carolina, and Colorado. Briefing on that motion was completed on December 15, 2020. On October 8, 2020, new named grower plaintiffs filed another duplicate class action in the Northern District of California against the same defendants as the Colorado and Kansas actions. On October 23, 2020, the District Court of Kansas stayed proceedings in that action (other than those related to the first-to-file motion) pending resolution of the first-to-file motion and the multi-district litigation ("MDL") consolidation motion discussed below. On November 12, 2020, the District Court of Colorado stayed proceeding in that action (other than those related to the first-to-file motion) pending resolution of the first-to-file motion and the MDL consolidation motion discussed below. On October 6, 2020, Plaintiffs in the Oklahoma action moved to consolidate all of these duplicative cases into a MDL before the judge presiding over the Oklahoma case. Briefing on that motion was completed on November 6, 2020, and oral argument on the motion occurred on December 3, 2020. On December 15, 2020, the panel ordered that all actions be consolidated in the Eastern District of Oklahoma for pretrial proceedings. Given the panel's ruling on consolidation, the Company does not expect rulings on the first-to-file motions in the various actions described above. On February 19, 2021, Plaintiffs filed a Consolidated Class Action Complaint in the MDL Court. The complaint is substantively identical to previous complaints. Fact discovery in the MDL is ongoing and is currently scheduled to end in August 2022. We intend to defend these cases 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. Antitrust Civil Investigative Demands On February 21, 2017, Sanderson Farms, Inc. received an antitrust CID 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. Separately, the Company is also aware that certain plaintiffs’ counsel in In re Broiler Chicken Antitrust Litigation received from the Office of the Attorney General, Department of Legal Affairs, of the State of Florida, an antitrust CID that includes a request to produce all documents submitted by the recipients to the Department of Justice relating to In re Broiler Chicken Antitrust Litigation. The Company is also aware that certain plaintiffs’ counsel in In re Broiler Chicken Antitrust Litigation received from the Louisiana Department of Justice - Office of the Attorney General a CID that included a request to produce all deposition transcripts from the civil litigation. The Company is unable to predict the outcome of these investigations at this time. Judy Jien v. Perdue Farms, Inc., et al. On August 30, 2019, Sanderson Farms, Inc. and its Foods and Processing Divisions, as well as seventeen other poultry producers and their affiliates; Agri Stats, Inc.; and Webber, Meng, Sahl and Company, Inc. (“WMS”), were named in a putative class action filed in the United States District Court for the District of Maryland. To date, three other nearly identical putative class action complaints, each seeking to represent the same putative class, also were filed. The complaints, brought on behalf of non-supervisory production and maintenance employees at broiler chicken processing plants, alleged that the defendants unlawfully conspired by agreeing to fix and depress the compensation paid to them, including hourly wages and compensation benefits, from January 1, 2009 to the present. The plaintiffs claim that broiler producers shared competitively sensitive wage and benefits compensation information in three ways: (1) attending in-person meetings in Destin, Florida; (2) receiving Agri Stats reports, as well as surveys taken and published by WMS; and (3) directly exchanging wage and benefits information with plant managers at other defendant broiler producers. Plaintiffs allege that this conduct violated the Sherman Antitrust Act. On November 12, 2019, the Court ordered that the four putative class action complaints would be consolidated for all pretrial purposes. The Court ordered plaintiffs to file their consolidated complaint on or before November 14, 2019. Defendants’ motions to dismiss the consolidated complaint were filed on November 22, 2019. Briefing was scheduled to be completed on or before February 28, 2020; however, after the defendants filed their motions to dismiss, on November 26, 2019, plaintiffs notified defendants that they intended to file an amended consolidated complaint. Plaintiffs filed an amended consolidated complaint on December 20, 2019. Plaintiffs name as defendants Sanderson Farms, Inc. and its Foods and Processing Divisions, as well as ten other broiler chicken producers and their affiliates; three turkey producers and their affiliates; Agri Stats, Inc.; and WMS. Plaintiffs brought their amended consolidated complaint on behalf of employees at broiler chicken and turkey processing plants and allege that the defendants unlawfully conspired by agreeing to fix and depress the compensation paid to them. On January 9, 2020 and January 27, 2020, the court approved the voluntary dismissal without prejudice of two of the three nearly identical putative class action lawsuits. On March 12, 2020, the Court approved the voluntary dismissal without prejudice of the third nearly identical putative class action lawsuit. On March 2, 2020, defendants moved to dismiss the amended consolidated complaint. The Company also filed an individual motion to dismiss plaintiffs’ claims against the Company. After several COVID-19 related extensions, plaintiffs filed their omnibus opposition to defendants’ motions to dismiss on July 17, 2020. Defendants filed their reply brief on August 13, 2020. On September 16, 2020, the Court granted in part and denied in part defendants’ motion without prejudice, finding that plaintiffs’ allegations against certain corporate defendant families, including Sanderson Farms, were deficient. Plaintiffs filed a second amended complaint against Sanderson Farms, Inc. on November 2, 2020. Sanderson Farms filed a renewed motion to dismiss resisting plaintiffs' amended allegations. The Court denied that motion and allowed plaintiffs' case to go forward in an order dated March 10, 2021. Sanderson Farms filed an answer denying the substance of plaintiffs' allegations on April 7, 2021. Discovery in this case is underway. Plaintiffs filed a motion for leave to file a Third Amended Complaint on December 17, 2021, and the Plaintiffs filed an amended motion for leave to file a Third Amended Complaint on January 20, 2022. Defendants filed their response to Plaintiffs' motion on February 4, 2022. Plaintiffs' proposed Third Amended Complaint, among other things, adds new allegations, expands the putative class to include workers at hatcheries and feed mills, and extends the putative class period to January 1, 2000 through July 20, 2021. We intend to defend this case 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. Other On January 30, 2017, the Company received a letter from an attorney representing 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. In addition to demanding that the officers and directors be sued, 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 was in the Company’s best interests to pursue any of the actions demanded in the shareholder’s letter. On April 26, 2017, the special committee reported to the Company’s board of directors its determination that it was not in the Company’s best interests to take any of the demanded actions at that time, and that no governance improvements related to the subject matter of the demand were needed. 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. 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, 2022. 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, 2022
Debt Disclosure [Abstract]
CREDIT AGREEMENT	CREDIT AGREEMENTThe Company is a party to a revolving credit facility dated April 23, 2021, with a maximum available borrowing capacity of $1.0 billion. 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 a new poultry complex 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, 2022, was $1.3 billion. The credit is unsecured and, unless extended, will expire on April 23, 2026. As of January 31, 2022, the Company had no outstanding borrowings and had approximately $24.1 million outstanding in letters of credit, leaving $975.9 million of borrowing capacity available under the facility. As of February 23, 2022, the Company had no outstanding borrowings and had approximately $29.1 million outstanding in letters of credit, leaving $970.9 million of borrowing capacity available under the facility.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Jan. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s estimated annual effective tax rate for the three months ended January 31, 2022 was 23.8%, as compared to an estimated annual effective tax rate of 25.7%, for the three months ended January 31, 2021. Excluding the effects of discrete items recognized during the periods, the Company's estimated annual effective tax rate for the three months ended January 31, 2022 would have remained approximately 23.8%, as compared to an estimated annual effective tax rate of 23.8% for the three months ended January 31, 2021. The Company estimates its effective tax rate for the full fiscal year 2022, exclusive of discrete items, will be approximately 23.8%. As of January 31, 2022, the Company's deferred income tax liability was $160.5 million, as compared to $156.5 million at October 31, 2021, an increase of $3.9 million.

MERGER AGREEMENT

MERGER AGREEMENT	3 Months Ended
	Jan. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
MERGER AGREEMENT	MERGER AGREEMENTOn August 8, 2021, the Company agreed to be acquired by a joint venture between Cargill, Inc. (“Cargill”) and Continental Grain Company (“CGC”) pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) with Walnut Sycamore Holdings LLC, a Delaware limited liability company (“Parent”), Sycamore Merger Sub LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of Parent (“Merger Sub”), and solely for purposes of certain provisions specified therein, Wayne Farms LLC, a Delaware limited liability company, pursuant to which, among other things, Merger Sub will be merged with and into the Company (the “Merger”), with the Company continuing as the surviving corporation and as an indirect wholly owned subsidiary of Parent. Under the terms of the Merger Agreement, each outstanding share of the Company, other than certain excluded shares, will receive $203 per share in cash. The closing of the Merger is subject to the receipt of specified regulatory approvals and other customary closing conditions including, among other things, expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Waiting Period"). On December 20, 2021, the Company and Parent each received a request for additional information and documentary material (the "Second Request") from the Department of Justice (the "DOJ") in connection with the DOJ's review of the transaction contemplated by the Merger Agreement. Issuance of the Second Request extends the HSR Waiting Period until 30 days after both the Company and Parent have substantially complied with the Second Request, unless the waiting period is terminated earlier by the DOJ or extended by agreement of the Company and Parent. The Company and Parent will continue to cooperate with the DOJ staff in its review of the transactions contemplated by the Merger Agreement. The parties expect that the Merger will be completed in the first half of calendar year 2022.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jan. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	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, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending October 31, 2022. The condensed consolidated balance sheet at October 31, 2021 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, 2021.
New Accounting Pronouncements	New Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Accounting Standards Codification 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2020, our fiscal 2022. We adopted this guidance during the first quarter of fiscal 2022, and adoption did not materially affect our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. This guidance, which became effective on March 12, 2020, and can be applied through December 31, 2022, has not affected our consolidated financial statements. We have a revolving credit facility that references LIBOR, and we are assessing how this standard may be applied to specific contract modifications through December 31, 2022.
Earnings Per Share	Certain share-based payment awards described in Note 5 - 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.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Jan. 31, 2022
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates our net sales by product category: Product Category Three Months Ended January 31, 2022 Three Months Ended January 31, 2021 (in thousands) Fresh, vacuum-sealed chicken $ 519,631 $ 294,118 Fresh, chill-packed chicken 427,191 376,252 Fresh, ice-packed chicken 229,125 131,681 Frozen chicken 80,624 63,403 Prepared chicken 64,256 38,915 Other 6,601 4,937 Total net sales $ 1,327,428 $ 909,306

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Jan. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consisted of the following: Inventory type January 31, 2022 October 31, 2021 (in thousands) Live poultry-broilers and breeders $ 236,713 $ 229,245 Feed, eggs and other 62,813 57,994 Processed poultry 42,911 42,775 Prepared chicken 14,252 11,157 Packaging materials 10,765 9,788 Total Inventories $ 367,454 $ 350,959

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
	Jan. 31, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment, net, consisted of the following: Description January 31, 2022 October 31, 2021 (in thousands) Land and buildings $ 978,853 $ 976,012 Machinery and equipment 1,467,741 1,439,762 Work-in-process 13,791 19,924 2,460,385 2,435,698 Less accumulated depreciation (1,252,873) (1,211,364) Property, plant and equipment, net $ 1,207,512 $ 1,224,334

STOCK COMPENSATION PLANS (Table

STOCK COMPENSATION PLANS (Tables)	3 Months Ended
	Jan. 31, 2022
Share-based Payment Arrangement [Abstract]
Schedule of Compensation Expense Related to Performance Share Agreements	The Company's compensation expense 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, 2022 January 31, 2021 November 1, 2019 60,682 (e) 881 — November 1, 2020 88,924 (e) 5,137 — Total performance share compensation expense $ 6,018 $ —

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Jan. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	The following table presents earnings per share: Three Months Ended January 31, 2022 January 31, 2021 (in thousands, except per share amounts) Net income $ 192,807 $ 9,478 Distributed and undistributed (earnings) to unvested restricted stock $ (2,186) $ (133) Distributed and undistributed earnings to common shareholders—Basic $ 190,621 $ 9,345 Weighted average shares outstanding—Basic 22,069 22,010 Weighted average shares outstanding—Diluted 22,069 22,010 Earnings per common share—Basic $ 8.64 $ 0.42 Earnings per common share—Diluted $ 8.64 $ 0.42

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Revenue from External Customer [Line Items]
Net sales	$ 1,327,428	$ 909,306
Fresh, vacuum-sealed chicken
Revenue from External Customer [Line Items]
Net sales	519,631	294,118
Fresh, chill-packed chicken
Revenue from External Customer [Line Items]
Net sales	427,191	376,252
Fresh, ice-packed chicken
Revenue from External Customer [Line Items]
Net sales	229,125	131,681
Frozen chicken
Revenue from External Customer [Line Items]
Net sales	80,624	63,403
Prepared chicken
Revenue from External Customer [Line Items]
Net sales	64,256	38,915
Other
Revenue from External Customer [Line Items]
Net sales	$ 6,601	$ 4,937

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jan. 31, 2022	Oct. 31, 2021
Inventory [Line Items]
Inventories	$ 367,454	$ 350,959
Live poultry-broilers and breeders
Inventory [Line Items]
Inventories	236,713	229,245
Feed, eggs and other
Inventory [Line Items]
Inventories	62,813	57,994
Processed poultry
Inventory [Line Items]
Inventories	42,911	42,775
Prepared chicken
Inventory [Line Items]
Inventories	14,252	11,157
Packaging materials
Inventory [Line Items]
Inventories	$ 10,765	$ 9,788

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	Jan. 31, 2022	Oct. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant, equipment, gross	$ 2,460,385	$ 2,435,698
Less accumulated depreciation	(1,252,873)	(1,211,364)
Property, plant and equipment, net	1,207,512	1,224,334
Land and buildings
Property, Plant and Equipment [Line Items]
Property, plant, equipment, gross	978,853	976,012
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant, equipment, gross	1,467,741	1,439,762
Work-in-process
Property, Plant and Equipment [Line Items]
Property, plant, equipment, gross	$ 13,791	$ 19,924

STOCK COMPENSATION PLANS - Addi

STOCK COMPENSATION PLANS - Additional Information (Details) - USD ($)	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Nov. 01, 2020	Nov. 01, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 8,400,000	$ 2,700,000
Management Share Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	58,000	75,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 2,300,000	2,600,000
Aggregate number of shares outstanding (in shares)	223,767
Unrecognized share-based compensation expense	$ 13,200,000
Weighted average vesting period	1 year 8 months
Restricted Stock | Outside Directors | Greater than or equal to 25 percent less than or equal to 35 percent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Restricted Stock | Management Share Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)	3,443
Average price per share purchased by participants (in usd per share)	$ 190.64
Matching Restricted Shares | Management Share Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)	824
Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 6,018,000	0
Additional service period	1 year
Performance Based Awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of potential performance shares received	50.00%
Performance Based Awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of potential performance shares received	200.00%
Performance Based Awards | Performance Share Plan, 2021 | Outside Directors | Greater than or equal to 25 percent less than or equal to 35 percent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Performance Based Awards | Performance Share Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 5,137,000	0
Target number of common stock to be granted (in shares)	88,924		87,350
Potential accrued compensation expense	$ 3,500,000
Aggregate number of shares outstanding (in shares)	88,924
Performance Based Awards | Performance Share Plan 2020 | Outside Directors | Greater than or equal to 25 percent less than or equal to 35 percent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Performance Based Awards | Performance Share Plan 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 881,000	$ 0
Target number of common stock to be granted (in shares)	60,682			56,575
Aggregate number of shares outstanding (in shares)	60,682
Performance Based Awards | Performance Share Plan 2019 | Outside Directors | Greater than or equal to 25 percent less than or equal to 35 percent
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years

STOCK COMPENSATION PLANS - Comp

STOCK COMPENSATION PLANS - Compensation Costs (Details) - USD ($)	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total performance share compensation expense	$ 8,400,000	$ 2,700,000
Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total performance share compensation expense	$ 6,018,000	0
Performance Share Plan 2019 | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share issued (in shares)	60,682
Total performance share compensation expense	$ 881,000	0
Performance Share Plan 2020 | Performance Based Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share issued (in shares)	88,924
Total performance share compensation expense	$ 5,137,000	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Earnings Per Share [Abstract]
Net income	$ 192,807	$ 9,478
Distributed and undistributed (earnings) to unvested restricted stock	(2,186)	(133)
Distributed and undistributed earnings to common shareholders—Basic	$ 190,621	$ 9,345
Weighted average shares outstanding—Basic (in shares)	22,069	22,010
Weighted average shares outstanding—Diluted (in shares)	22,069	22,010
Earnings per common share - Basic (in usd per share)	$ 8.64	$ 0.42
Earnings per common share - Diluted (in usd per share)	$ 8.64	$ 0.42

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)

Jan. 15, 2019poultry_producer

Nov. 13, 2018poultry_producer

Feb. 12, 2018poultry_producer

Feb. 07, 2018poultry_producer

Jul. 10, 2017lawsuit

Mar. 27, 2017poultry_producer

Jan. 27, 2017poultry_producer

Dec. 16, 2016case

Oct. 13, 2016casepoultry_producer

Jun. 11, 2020poultry_producer

Dec. 20, 2021track

Oct. 15, 2021track

Jun. 12, 2020complaint

Dec. 20, 2019turkey_producerbroiler_chicken_producer

Nov. 12, 2019complaint

Aug. 30, 2019poultry_producercomplaint

Broiler Chicken Antitrust Litigation

Loss Contingencies [Line Items]

Number of poultry producers named as defendants | poultry_producer

2

3

3

3

13

Number of cases, direct purchaser complaints | case

1

Number of cases, indirect purchaser complaints | case

2

2

Litigation case behalf of commercial and institutional indirect purchaser plaintiffs | case

1

Litigation case, behalf of end-user consumer plaintiffs | case

1

Number of poultry producers against lawsuit filed | poultry_producer

20

Number of complaints filed | complaint

4

Number of additional individual action complaints filed | complaint

48

Number of court order tracks | track

2

2

Broiler Chicken Grower Litigation

Loss Contingencies [Line Items]

Number of poultry producers named as defendants | poultry_producer

4

4

Number of cases, consolidation of suits | lawsuit

1

Judy Jien v. Perdue Farms, Inc., et al.

Loss Contingencies [Line Items]

Number of poultry producers, named in putative class action | poultry_producer

17

Number of identical putative class action complaints | complaint

3

Putative class action complaints | complaint

4

Number of broiler chicken producers, named as defendants | broiler_chicken_producer

10

Number of turkey producers, named as defendants | turkey_producer

3

CREDIT AGREEMENT (Details)

CREDIT AGREEMENT (Details) - Line of credit	Feb. 23, 2022USD ($)	Jan. 31, 2022USD ($)	Apr. 23, 2021USD ($)right
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity			$ 1,000,000,000
Ratio of indebtedness to net capital			0.50
Number of rights | right			1
Ratio of indebtedness to net capital, maximum increase			0.05
Revolving credit facility, minimum net worth requirement		$ 1,300,000,000
Long-term debt		0
Revolving credit facility, remaining available balance		975,900,000
Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Long-term debt	$ 0
Revolving credit facility, remaining available balance	970,900,000
Letter of Credit
Debt Instrument [Line Items]
Long-term debt		$ 24,100,000
Letter of Credit | Subsequent Event
Debt Instrument [Line Items]
Long-term debt	$ 29,100,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Jan. 31, 2022	Jan. 31, 2021	Oct. 31, 2022	Oct. 31, 2021
Tax Credit Carryforward [Line Items]
Effective income tax rate	23.80%	25.70%
Effective income tax rate, excluding discrete items	23.80%	23.80%
Deferred income taxes	$ 160,465			$ 156,531
Increase in deferred income taxes	$ 3,900
Scenario, Forecast
Tax Credit Carryforward [Line Items]
Effective income tax rate, excluding discrete items			23.80%

MERGER AGREEMENT (Details)

MERGER AGREEMENT (Details)	Aug. 08, 2021$ / shares
Joint Venture Between Cargill, Inc. and Continental Grain Company | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sanderson Farm
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Merger price per share to be paid at close (USD price per share)	$ 203