Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Dec. 10, 2013 | Apr. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Oct-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'SAFM | ' | ' |
Entity Registrant Name | 'SANDERSON FARMS INC | ' | ' |
Entity Central Index Key | '0000812128 | ' | ' |
Current Fiscal Year End Date | '--10-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 23,068,220 | ' |
Entity Public Float | ' | ' | $1,172,888,738 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $85,563 | $27,802 |
Accounts receivable, less allowance of $2,200 in 2013 and $1,785 in 2012 | 108,980 | 98,022 |
Inventories | 205,855 | 235,912 |
Refundable income taxes | 0 | 4,467 |
Deferred income taxes | 478 | 3,945 |
Prepaid expenses | 29,867 | 27,639 |
Total current assets | 430,743 | 397,787 |
Property, plant and equipment: | ' | ' |
Land and buildings | 437,864 | 435,412 |
Machinery and equipment | 597,180 | 549,786 |
Property, Plant and Equipment, Gross, Total | 1,035,044 | 985,198 |
Accumulated depreciation | -546,578 | -489,885 |
Property, Plant and Equipment, Net, Total | 488,466 | 495,313 |
Other assets | 5,436 | 3,353 |
Total assets | 924,645 | 896,453 |
Current liabilities: | ' | ' |
Accounts payable | 81,418 | 82,755 |
Accrued expenses | 58,271 | 42,082 |
Accrued income taxes | 11,055 | 0 |
Current maturities of long-term debt | 10,799 | 10,757 |
Total current liabilities | 161,543 | 135,594 |
Long-term debt, less current maturities | 29,414 | 150,212 |
Claims payable | 9,000 | 4,000 |
Deferred income taxes | 53,089 | 56,572 |
Commitments and contingencies | ' | ' |
Preferred Stock: | ' | ' |
Preferred Stock, value | ' | ' |
Common Stock, $1 par value: authorized shares-100,000,000; issued and outstanding shares- 23,016,241 in 2013 and 22,968,832 in 2012 | 23,016 | 22,969 |
Paid-in capital | 142,482 | 135,283 |
Retained earnings | 506,101 | 391,823 |
Total stockholders' equity | 671,599 | 550,075 |
Total liabilities and stockholders' equity | $924,645 | $896,453 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $2,200 | $1,785 |
Common Stock, par value | $1 | $1 |
Common Stock, authorized shares | 100,000,000 | 100,000,000 |
Common Stock, issued | 23,016,241 | 22,968,832 |
Common Stock, outstanding shares | 23,016,241 | 22,968,832 |
Series A Preferred Stock | ' | ' |
Preferred Stock, par value | $100 | $100 |
Preferred Stock, authorized shares | 500,000 | 500,000 |
Preferred Stock, issued | ' | ' |
Other Preferred Stock | ' | ' |
Preferred Stock, authorized shares | 4,500,000 | 4,500,000 |
Preferred Stock, issued | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Net sales | $2,682,980 | $2,386,105 | $1,978,085 |
Cost and expenses: | ' | ' | ' |
Cost of sales | 2,377,055 | 2,212,692 | 2,085,248 |
Live inventory adjustment | 0 | 0 | 9,000 |
Selling, general and administrative | 100,247 | 77,097 | 72,217 |
Costs and Expenses, Total | 2,477,302 | 2,289,789 | 2,166,465 |
Operating income (loss) | 205,678 | 96,316 | -188,380 |
Other income (expense): | ' | ' | ' |
Interest income | 27 | 17 | 41 |
Interest expense | -6,136 | -9,201 | -6,413 |
Other | 544 | -560 | 510 |
Nonoperating Income (Expense), Total | -5,565 | -9,744 | -5,862 |
Income (loss) before income taxes | 200,113 | 86,572 | -194,242 |
Income tax expense (benefit) | 69,496 | 32,628 | -67,165 |
Net income (loss) | $130,617 | $53,944 | ($127,077) |
Earnings (loss) per share: | ' | ' | ' |
Basic | $5.68 | $2.35 | ($5.74) |
Diluted | $5.68 | $2.35 | ($5.74) |
Dividends per share | $0.71 | $0.68 | $0.68 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Paid-In Capital | Retained Earnings |
In Thousands, except Share data | ||||
Beginning Balance at Oct. 31, 2010 | $645,713 | $22,655 | $127,003 | $496,055 |
Beginning Balance (in shares) at Oct. 31, 2010 | ' | 22,654,680 | ' | ' |
Net income for year | -127,077 | ' | ' | -127,077 |
Cash dividends ($.68, $.68 and $.71 per share for the year ended 2011, 2012 and 2013 respectively) | -15,478 | ' | ' | -15,478 |
Issuance of stock under stock compensation plans (in shares) | ' | 216,908 | ' | ' |
Issuance of stock under stock compensation plans | -1,761 | 217 | -1,978 | ' |
Amortization of unearned compensation | 5,503 | ' | 5,503 | ' |
Ending Balance at Oct. 31, 2011 | 506,900 | 22,872 | 130,528 | 353,500 |
Ending Balance (in shares) at Oct. 31, 2011 | ' | 22,871,588 | ' | ' |
Net income for year | 53,944 | ' | ' | 53,944 |
Cash dividends ($.68, $.68 and $.71 per share for the year ended 2011, 2012 and 2013 respectively) | -15,621 | ' | ' | -15,621 |
Issuance of stock under stock compensation plans (in shares) | ' | 97,244 | ' | ' |
Issuance of stock under stock compensation plans | 71 | 97 | -26 | ' |
Amortization of unearned compensation | 4,781 | ' | 4,781 | ' |
Ending Balance at Oct. 31, 2012 | 550,075 | 22,969 | 135,283 | 391,823 |
Ending Balance (in shares) at Oct. 31, 2012 | ' | 22,968,832 | ' | ' |
Net income for year | 130,617 | ' | ' | 130,617 |
Cash dividends ($.68, $.68 and $.71 per share for the year ended 2011, 2012 and 2013 respectively) | -16,339 | ' | ' | -16,339 |
Issuance of stock under stock compensation plans (in shares) | ' | 47,409 | ' | ' |
Issuance of stock under stock compensation plans | -865 | 47 | -912 | ' |
Amortization of unearned compensation | 8,111 | ' | 8,111 | ' |
Ending Balance at Oct. 31, 2013 | $671,599 | $23,016 | $142,482 | $506,101 |
Ending Balance (in shares) at Oct. 31, 2013 | ' | 23,016,241 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Cash dividends,per share | $0.71 | $0.68 | $0.68 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Operating activities | ' | ' | ' |
Net income (loss) | $130,617 | $53,944 | ($127,077) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 62,225 | 59,979 | 51,661 |
Amortization of unearned compensation | 8,111 | 4,781 | 5,503 |
Live inventory adjustment | 0 | -9,000 | 9,000 |
Provision for losses on accounts receivable | 415 | 412 | 0 |
Deferred income taxes | -16 | 7,995 | 21,462 |
Change in assets and liabilities: | ' | ' | ' |
Accounts receivable | -11,373 | -4,413 | -1,554 |
Inventories | 30,057 | -15,159 | -67,464 |
Refundable income taxes | 4,467 | 84,045 | -88,512 |
Prepaid expenses and other assets | -2,546 | 354 | -2,345 |
Accounts payable | -1,337 | 15,994 | 17,324 |
Accrued expenses and claims payable | 32,244 | 6,987 | -19,322 |
Total adjustments | 122,247 | 151,975 | -74,247 |
Net cash provided by (used in) operating activities | 252,864 | 205,919 | -201,324 |
Investing activities | ' | ' | ' |
Capital expenditures | -54,529 | -49,249 | -62,958 |
Net proceeds from sale of property and equipment | 169 | 39 | 174 |
Net cash used in investing activities | -54,360 | -49,210 | -62,784 |
Financing activities | ' | ' | ' |
Borrowings from revolving line of credit | 15,000 | 45,000 | 222,701 |
Payments on revolving line of credit | -125,000 | -157,701 | 0 |
Principal payments on long-term debt | -10,000 | -10,000 | 0 |
Principal payments on capital lease obligations | -756 | -1,106 | -1,048 |
Payments for debt issuance costs | -2,783 | -625 | -2,650 |
Dividends paid | -16,339 | -15,621 | -15,478 |
Tax benefit from stock incentive plans | 145 | 706 | 70 |
Proceeds from issuance of restricted stock under stock compensation plans | 827 | 758 | 945 |
Payments from issuance of common stock under stock compensation plans | -1,837 | -1,393 | -2,776 |
Net cash provided by (used in) financing activities | -140,743 | -139,982 | 201,764 |
Net change in cash and cash equivalents | 57,761 | 16,727 | -62,344 |
Cash and cash equivalents at beginning of year | 27,802 | 11,075 | 73,419 |
Cash and cash equivalents at end of year | 85,563 | 27,802 | 11,075 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Income taxes paid (refunded) net | 54,969 | -60,142 | 4,391 |
Interest paid | $6,489 | $9,433 | $6,581 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
1. Significant Accounting Policies | |||||||||||||||||
Principles of Consolidation: The consolidated financial statements include the accounts of Sanderson Farms, Inc. (the “Company”) and its wholly-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. | |||||||||||||||||
Business: The Company is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared chicken items. The Company’s net sales and cost of sales are significantly affected by market price fluctuations of its principal products sold and of its principal feed ingredients, corn and other grains. | |||||||||||||||||
The Company sells to retailers, distributors and casual dining operators primarily in the southeastern, southwestern, northeastern and western United States. Management periodically performs credit evaluations of its customers’ financial condition and generally does not require collateral. One customer accounted for more than 10% of consolidated sales for each of the years ended October 31, 2013, 2012 and 2011. Sales to that customer accounted for 14.2%, 13.0%, and 10.6% of the Company’s consolidated net sales in fiscal 2013, 2012, and 2011, respectively. Shipping and handling costs are included as a component of cost of sales. | |||||||||||||||||
Generally, revenue is recognized in connection with a transaction when the Company has agreed to sell, and our customer has agreed to purchase, a specific quantity of product, when delivery has occurred, when the price to the buyer has been fixed, and when collectability is reasonably assured. For most customers, this occurs when the product is delivered to customers, which for domestic sales usually occurs at the time of shipment. Revenue on certain international sales is recognized upon transfer of title, which may occur after shipment. Revenue is recognized as the net amount estimated to be received after deducting estimated amounts for discounts, cooperative advertising allowances, product terms and other items. | |||||||||||||||||
RECONCILIATION OF GROSS SALES TO NET SALES DOLLARS (in millions) | |||||||||||||||||
Product | Description | Fiscal Year | Fiscal Year | Fiscal Year | |||||||||||||
Category | 2013 | 2012 | 2011 | ||||||||||||||
Fresh Ice Packed Chicken | Gross Sales | $ | 367.4 | $ | 308.4 | $ | 263.9 | ||||||||||
Commissions | (4.1 | ) | (4.3 | ) | (3.9 | ) | |||||||||||
Sales and Customer Allowances | (11.2 | ) | (9.8 | ) | (8.5 | ) | |||||||||||
Other (1) | (9.8 | ) | (6.9 | ) | (5.3 | ) | |||||||||||
Net Sales | 342.3 | 287.4 | 246.2 | ||||||||||||||
Chill Pack Chicken | Gross Sales | 955 | 821.3 | 670.1 | |||||||||||||
Commissions | (6.5 | ) | (6.8 | ) | (6.0 | ) | |||||||||||
Sales and Customer Allowances | (9.5 | ) | (10.2 | ) | (8.5 | ) | |||||||||||
Other (1) | (6.3 | ) | (5.2 | ) | (3.2 | ) | |||||||||||
Net Sales | 932.7 | 799.1 | 652.4 | ||||||||||||||
Frozen Chicken | Gross Sales | 282 | 314.1 | 272 | |||||||||||||
Commissions | (0.2 | ) | (0.1 | ) | (0.0 | ) | |||||||||||
Sales and Customer Allowances | (0.0 | ) | (0.3 | ) | (0.0 | ) | |||||||||||
Other (1) | (0.8 | ) | (0.8 | ) | (1.8 | ) | |||||||||||
Net Sales | 281 | 312.9 | 270.2 | ||||||||||||||
Fresh Vacuum Sealed Chicken | Gross Sales | 1,009.60 | 875.7 | 690.8 | |||||||||||||
Commissions | (1.8 | ) | (1.9 | ) | (1.8 | ) | |||||||||||
Sales and Customer Allowances | (8.3 | ) | (6.4 | ) | (6.0 | ) | |||||||||||
Other (1) | (7.5 | ) | (5.1 | ) | (4.0 | ) | |||||||||||
Net Sales | 992 | 862.3 | 679 | ||||||||||||||
Partially Cooked Chicken | Gross Sales | 98.3 | 90.4 | 107.9 | |||||||||||||
Commissions | (0.8 | ) | (0.8 | ) | (1.0 | ) | |||||||||||
Sales and Customer Allowances | (0.4 | ) | (0.4 | ) | (0.4 | ) | |||||||||||
Other (1) | (0.2 | ) | (0.1 | ) | (0.1 | ) | |||||||||||
Net Sales | 96.9 | 89.1 | 106.4 | ||||||||||||||
Mechanically Deboned Chicken | Gross Sales | 38.1 | 35.3 | 23.9 | |||||||||||||
Commissions | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Sales and Customer Allowances | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Other (1) | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Net Sales | 38.1 | 35.3 | 23.9 | ||||||||||||||
Totals | Gross Sales | 2,750.40 | 2,445.20 | 2,028.60 | |||||||||||||
Commissions | (13.4 | ) | (13.9 | ) | (12.7 | ) | |||||||||||
Sales and Customer Allowances | (29.4 | ) | (27.1 | ) | (23.4 | ) | |||||||||||
Other (1) | (24.6 | ) | (18.1 | ) | (14.4 | ) | |||||||||||
Net Sales | $ | 2,683.00 | $ | 2,386.10 | $ | 1,978.10 | |||||||||||
-1 | Other deductions include short weights, credit memos, rebates and other items, none of which, individually, is material. | ||||||||||||||||
Sales of offal to rendering companies are considered by-products; accordingly, these amounts reduce cost of sales and totaled $47.6 million, $43.1 million and $35.4 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
The Company sells certain of its products either directly to foreign markets or to U.S. based customers who resell the product in foreign markets. These foreign markets are primarily Russia, Eastern Europe, China, Mexico and the Caribbean. These export sales for fiscal years 2013, 2012 and 2011 totaled approximately $292.6 million, $318.7 million and $253.8 million, respectively. The Company does not believe that the amount of sales attributable to any single foreign country is material to its total sales during any of the periods presented. The Company’s export sales are facilitated through independent food brokers located in the United States and the Company’s internal sales staff. | |||||||||||||||||
Use of Estimates: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||||||||
Cash Equivalents: The Company considers all highly liquid investments with maturities of ninety days or less when purchased to be cash equivalents. | |||||||||||||||||
Allowance for Doubtful Accounts: In the normal course of business, the Company extends credit to its customers on a short-term basis. Although credit risks associated with our customers are considered minimal, the Company routinely reviews its accounts receivable balances and makes provisions for probable doubtful accounts based on an individual assessment of a customer’s credit quality as well as subjective factors and trends, including the aging of receivable balances. In circumstances where management is aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve is recorded to reduce the receivable to the amount expected to be collected. If circumstances change (i.e., higher than expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations to us), our estimates of the recoverability of amounts due us could be reduced by a material amount and the allowance for doubtful accounts and related bad debt expense would increase by the same amount. | |||||||||||||||||
Inventories: Processed and prepared inventories and inventories of feed, eggs, medication and packaging supplies are stated at the lower of cost (first-in, first-out method) or market value. | |||||||||||||||||
Live poultry inventories of broilers are stated at the lower of cost or market value and breeders at cost less accumulated amortization. The costs associated with breeders, including breeder chicks, feed, medicine and grower pay, are accumulated up to the production stage and amortized over nine months using the straight-line method. | |||||||||||||||||
When the projected cost to complete, process and sell broilers exceeds the expected market value for the finished product, the Company reduces the value of live inventories from cost to market. | |||||||||||||||||
Property, Plant and Equipment: Property, plant and equipment is stated at cost. Depreciation of property, plant and equipment is provided by the straight-line method over the estimated useful lives of 15 to 39 years for buildings and 3 to 12 years for machinery and equipment. During fiscal 2013 and 2011, the Company capitalized interest of $75,000 and $630,000, respectively, to the new complexes under construction at the time in Palestine, Texas and Kinston, North Carolina. With the absence of a major construction project, the Company did not capitalize any interest during fiscal 2012. | |||||||||||||||||
Impairment of Long-Lived Assets: The Company continually reevaluates the carrying value of its long-lived assets based on events or changes in circumstances which indicate that the carrying value may not be recoverable. As part of this reevaluation and when indicators are present, the Company estimates the future cash flows expected to result from the use of the asset and its eventual disposal. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss, based on the fair value of the assets, is recognized through a charge to operations. | |||||||||||||||||
Self-Insurance Programs: Insurance expense for workers’ compensation benefits and employee-related health care benefits are estimated using historical experience and actuarial estimates. The Company accrues expenses in its workers’ compensation and employee benefit plans for both known claims as well as claims incurred but not reported. Stop-loss coverage is maintained with third party insurers to limit the Company’s total exposure. Management regularly reviews the assumptions used to recognize periodic expenses. Any resulting adjustments to accrued claims are reflected in current operating results. There are no material adjustments to expenses accrued in prior periods in current expenses. If historical experience proves not to be a good indicator of future expenses, if management were to use different actuarial assumptions, or if there is a negative trend in the Company’s claims history, there could be a significant increase or decrease in cost of sales depending on whether these expenses increased or decreased, respectively. | |||||||||||||||||
Advertising and Marketing Costs: The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expenses and totaled $3,340,000, $1,268,000 and $875,000 for fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
Income Taxes: Deferred income taxes are accounted for using the liability method and relate principally to depreciation expense, stock based compensation programs and self-insurance programs accounted for differently for financial and income tax purposes. | |||||||||||||||||
Valuation allowances are recorded when it is more likely than not some or all of a deferred tax asset will not be realized. | |||||||||||||||||
The Company is periodically audited by taxing authorities and considers any adjustments, interest, and penalties incurred as a result of the audits in computing income tax expense. Any audit adjustments affecting permanent differences could have an impact on the Company’s effective tax rate. Tax periods for fiscal years 2009 through 2013 remain open to examination by federal and state taxing jurisdictions to which the Company is subject. | |||||||||||||||||
Share-Based Compensation: The Company accounts for all share-based payments to employees, including grants of employee stock options, restricted stock and performance-based shares in the income statement based on their fair values. For performance-based shares, the Company recognizes expense when management determines the performance criteria are probable of being met. | |||||||||||||||||
Earnings Per Share: Basic earnings per share is based upon the weighted average number of common shares outstanding during the year. Share-based payment awards entitling holders to receive non-forfeitable dividends before vesting are considered participating securities and thus included in the calculation of basic earnings per share. 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 outstanding shares. Diluted earnings per share includes any dilutive effects of options, warrants, restricted stock and convertible securities. | |||||||||||||||||
Fair Value of Financial Instruments: The Company holds certain items that are required to be disclosed at fair value, primarily cash equivalents representing overnight investments and 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. | |||||||||||||||||
At October 31, 2013 and 2012, the fair value of the Company’s cash and short-term cash investments of approximately $85.6 million and $27.8 million, respectively, approximated their carrying value due to the short maturity of these financial instruments and were categorized as a Level 2 measurement. Inputs used to measure fair value were primarily recent trading prices and prevailing market interest rates. | |||||||||||||||||
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 credit facilities, long-term debt and capital lease obligations were as follows (in millions): | |||||||||||||||||
October 31, 2013 | October 31, 2012 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
Total Debt (In millions) | $ | 43 | $ | 40 | $ | 163 | $ | 161 | |||||||||
Reclassifications: The Company has made reclassifications to prior year financial statements to conform with the presentation for the current year financial statements. The reclassifications are for consistency of presentation and do not affect previously reported net income (loss), stockholders’ equity or total assets. | |||||||||||||||||
Impact of Recently Issued Accounting Standards: In May 2011, FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS”. The amendments in this update generally represent clarifications of Topic 820, but also include some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This update results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and IFRS. This update is effective for annual and interim periods beginning after December 15, 2011, and was adopted in the three month period ending January 31, 2013. This update did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. |
Inventories
Inventories | 12 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Inventories | ' | ||||||||
2. Inventories | |||||||||
Inventories consisted of the following: | |||||||||
October 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Live poultry-broilers and breeders | $ | 124,260 | $ | 147,102 | |||||
Feed, eggs and other | 34,949 | 39,343 | |||||||
Processed poultry | 32,139 | 32,196 | |||||||
Prepared chicken | 6,483 | 9,894 | |||||||
Packaging materials | 8,024 | 7,377 | |||||||
$ | 205,855 | $ | 235,912 | ||||||
Prepaid_expenses
Prepaid expenses | 12 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Prepaid expenses | ' | ||||||||
3. Prepaid expenses | |||||||||
Prepaid expenses consisted of the following: | |||||||||
October 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Parts and supplies | $ | 16,880 | $ | 15,598 | |||||
Prepaid insurance | 9,450 | 8,675 | |||||||
Other prepaid expenses | 3,537 | 3,366 | |||||||
$ | 29,867 | $ | 27,639 | ||||||
Accrued_expenses
Accrued expenses | 12 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Accrued expenses | ' | ||||||||
4. Accrued expenses | |||||||||
Accrued expenses consisted of the following: | |||||||||
October 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Accrued bonuses | $ | 21,574 | $ | 0 | |||||
Workers’ compensation claims | 5,531 | 9,894 | |||||||
Accrued wages | 9,708 | 7,957 | |||||||
Accrued rebates | 6,618 | 6,193 | |||||||
Accrued vacation | 5,174 | 5,179 | |||||||
Accrued property taxes | 4,484 | 4,796 | |||||||
Accrued commissions | 1,464 | 1,772 | |||||||
Accrued payroll taxes | 842 | 1,728 | |||||||
Post-retirement benefit | 1,244 | 1,273 | |||||||
Deferred revenue | 400 | 1,100 | |||||||
Other accrued expenses | 1,232 | 2,190 | |||||||
$ | 58,271 | $ | 42,082 | ||||||
LongTerm_debt_and_capital_leas
Long-Term debt and capital lease obligations | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
Long-Term debt and capital lease obligations | ' | ||||||||||
5. Long-Term debt and capital lease obligations | |||||||||||
Long-term debt and capital lease obligations consisted of the following: | |||||||||||
October 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Revolving credit agreement with banks | $ | 0 | $ | 110,000 | |||||||
Term loan, accruing interest at 6.12%, maturing in 2016 | 30,000 | 40,000 | |||||||||
Capital lease obligation, imputed interest at 5.53%, due in monthly installments of $112,015, including interest, maturity in 2015 | 10,213 | 10,969 | |||||||||
40,213 | 160,969 | ||||||||||
Less current maturities of long-term debt and capital leases | 10,799 | 10,757 | |||||||||
$ | 29,414 | $ | 150,212 | ||||||||
The Company entered into a new revolving credit facility on October 24, 2013, to, among other things, increase the available credit to $600.0 million from $500.0 million. The new facility increases the annual capital expenditure limitation from $55.0 million to $65.0 million for fiscal years 2013 through 2018, plus, for each year, up to $10.0 million carryover from the preceding fiscal year, when it is not actually spent in that year. The capital expenditure limitation for fiscal 2013, with the permitted carry over, was $75.0 million. The new facility also permits the Company to spend up to $140.0 million each in capital expenditures on the construction of two new poultry complexes to be located anywhere in the United States, which expenditures are in addition to the annual overall capital expenditure limits. The $140.0 million limit represents an increase from the $125.0 million limit available under the previous agreement. Under the facility, the Company may not exceed a maximum debt to total capitalization ratio of 55% from the date of the agreement through October 30, 2014, and 50% thereafter. 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 5% in connection with the construction of either of the two potential new poultry 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 did not exercise this right in fiscal 2013. The amendment also sets a minimum net worth requirement that at October 31, 2013, was $475.3 million. The total committed credit under the facility is $600.0 million. The credit is unsecured and, unless extended, will expire on October 24, 2018. As of October 31, 2013, the Company had no outstanding draws under the facility, and had approximately $10.8 million outstanding in letters of credit. As of December 10, 2013, the Company had no outstanding draws under the revolving credit facility and had approximately $13.9 million outstanding in letters of credit, leaving $586.1 million available. | |||||||||||
The Company has the option to borrow funds under the revolving line of credit based on the Prime interest rate or the Libor interest rate plus a spread ranging from 0.50% to 2.25%. The spread on Libor borrowings and the commitment fee for the unused balance of the revolving credit agreement are determined based upon the Company’s leverage ratio as follows: | |||||||||||
Level | Leverage Ratio | Spread | Commitment Fee | ||||||||
1 | < 25% | 0.5 | % | 0.25 | % | ||||||
2 | ³ 25% and < 35% | 0.75 | % | 0.3 | % | ||||||
3 | ³ 35% and < 45% | 1.25 | % | 0.35 | % | ||||||
4 | ³ 45% and < 55% | 1.75 | % | 0.4 | % | ||||||
5 | ³ 55% | 2.25 | % | 0.5 | % | ||||||
The term loan consists of a private placement of $30.0 million in unsecured debt. The term loan matures in 2016 with annual principal installments of $10.0 million which began in 2012. The term loan has net worth, current ratio and debt to capitalization covenants comparable to that of the Company’s revolving credit facility. The Company was in compliance with all covenants at October 31, 2013. | |||||||||||
The aggregate annual maturities of long-term debt and capital lease obligations at October 31, 2013, are as follows (in thousands): | |||||||||||
Fiscal Year | Amount | ||||||||||
2014 | $ | 10,799 | |||||||||
2015 | 19,414 | ||||||||||
2016 | 10,000 | ||||||||||
$ | 40,213 | ||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
6. Income Taxes | |||||||||||||
Income tax expense (benefit) consisted of the following: | |||||||||||||
Years Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 63,923 | $ | 23,641 | $ | (84,207 | ) | ||||||
State | 5,589 | 992 | (4,420 | ) | |||||||||
69,512 | 24,633 | (88,627 | ) | ||||||||||
Deferred: | |||||||||||||
Federal | (1,389 | ) | 6,435 | 23,656 | |||||||||
State | (5,450 | ) | (40 | ) | (11,869 | ) | |||||||
Change in valuation allowance | 6,823 | 1,600 | 9,675 | ||||||||||
(16 | ) | 7,995 | 21,462 | ||||||||||
$ | 69,496 | $ | 32,628 | $ | (67,165 | ) | |||||||
Significant components of the Company’s deferred tax assets and liabilities were as follows: | |||||||||||||
October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | $ | 69,942 | $ | 66,957 | |||||||||
Prepaid and other assets | 1,765 | 1,374 | |||||||||||
Total deferred tax liabilities | 71,707 | 68,331 | |||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and accounts receivable | 9,187 | 7,742 | |||||||||||
Inventory | 85 | 670 | |||||||||||
Compensation on restricted stock | 7,514 | 6,523 | |||||||||||
State income tax credits | 18,098 | 11,275 | |||||||||||
Other | 2,310 | 769 | |||||||||||
Valuation allowance | (18,098 | ) | (11,275 | ) | |||||||||
Total deferred tax assets | 19,096 | 15,704 | |||||||||||
Net deferred tax liabilities | $ | 52,611 | $ | 52,627 | |||||||||
Current deferred tax assets | $ | (478 | ) | $ | (3,945 | ) | |||||||
Long-term deferred tax liabilities | 53,089 | 56,572 | |||||||||||
Net deferred tax liabilities | $ | 52,611 | $ | 52,627 | |||||||||
The differences between the consolidated effective income tax rate and the federal statutory rate of 35.0% are as follows: | |||||||||||||
Years Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Income taxes at statutory rate | $ | 70,040 | $ | 30,300 | $ | (67,985 | ) | ||||||
State income taxes | 4,525 | 1,659 | (4,299 | ) | |||||||||
State income tax credits | (6,823 | ) | (1,600 | ) | (9,675 | ) | |||||||
Federal income tax credits | (715 | ) | (130 | ) | (748 | ) | |||||||
Federal manufacturers (deduction) recapture | (6,469 | ) | (2,191 | ) | 5,281 | ||||||||
Nondeductible expenses | 2,353 | 3,008 | 678 | ||||||||||
Other, net | (238 | ) | (18 | ) | (92 | ) | |||||||
Change in valuation allowance | 6,823 | 1,600 | 9,675 | ||||||||||
Income tax expense (benefit) | $ | 69,496 | $ | 32,628 | $ | (67,165 | ) | ||||||
Included in the deferred tax assets at October 31, 2013, are North Carolina Investing in Business Property Credit and North Carolina Jobs Credits totaling $13,676,000, as well as Georgia Job Tax Credits totaling $4,422,000. The North Carolina Investing in Business Property Credit provides a 7% investment tax credit for property located in a North Carolina development area, the North Carolina Creating Jobs Credit provides a tax credit for increased employment in North Carolina, and the Georgia Job Tax Credit provides a tax credit for creation and retention of qualifying jobs in Georgia. It is management’s opinion that the North Carolina and Georgia income tax credits will not be utilized before they expire, and an $18,098,000 gross valuation allowance has been recorded. These credits expire between fiscal years 2017 and 2023. | |||||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
7. Earnings Per Share | |||||||||||||
Certain share-based payment awards entitling holders to receive non-forfeitable dividends before vesting are considered participating securities and thus 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 outstanding shares. | |||||||||||||
The following table presents earnings per share. | |||||||||||||
For the years ended | |||||||||||||
October 31, 2013 | October 31, 2012 | October 31, 2011 | |||||||||||
Net income (loss) | $ | 130,617 | $ | 53,944 | $ | (127,077 | ) | ||||||
Distributed and undistributed (earnings) losses to unvested restricted stock | (3,704 | ) | (1,612 | ) | 0 | ||||||||
Distributed and undistributed earnings (losses) to common shareholders — Basic | 126,913 | 52,332 | (127,077 | ) | |||||||||
Weighted average shares outstanding — Basic | 22,363 | 22,280 | 22,130 | ||||||||||
Weighted average shares outstanding — Diluted | 22,363 | 22,282 | 22,130 | ||||||||||
Earnings per common share — Basic | $ | 5.68 | $ | 2.35 | $ | (5.74 | ) | ||||||
Earnings per common share — Diluted | $ | 5.68 | $ | 2.35 | $ | (5.74 | ) |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Oct. 31, 2013 | |
Employee Benefit Plans | ' |
8. Employee Benefit Plans | |
The Company has an Employee Stock Ownership Plan (“ESOP”) covering substantially all employees. Contributions to the ESOP are made at the discretion of the Company’s Board of Directors. Total contributions to the ESOP were $8,400,000, $3,800,000, and $0 in fiscal 2013, 2012, and 2011, respectively. The Company did not make a contribution to the ESOP during fiscal 2011, as contributions are dependent upon profitability. | |
The Company has a 401(k) Plan which covers substantially all employees after one year of service. Participants in the Plan may contribute up to the maximum allowed by IRS regulations. The Company matches 100% of employee contributions to the 401(k) Plan up to 3% of each employee’s salary, and 50% of employee contributions between 3% and 5% of each employee’s salary. The Company’s contributions to the 401(k) Plan totaled $5,717,000 in fiscal 2013; $5,481,000 in fiscal 2012; and $4,992,000 in fiscal 2011. |
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Stock Compensation Plans | ' | ||||||||
9. Stock Compensation Plans | |||||||||
On February 17, 2005, the shareholders of the Company approved the Sanderson Farms, Inc. and Affiliates Stock Incentive Plan (the “Plan”). The Plan allows the Company’s Board of Directors to grant certain incentive awards including stock options, stock appreciation rights, restricted stock, and other similar awards. The Company was authorized to award up to 2,250,000 shares under the Plan. On February 17, 2011, the shareholders approved changes to the plan to increase the shares that may be issued under the plan from 2,250,000 to 3,500,000 shares and to increase the number of shares that may be granted in the form of restricted stock from 562,500 to 1,562,500 shares. | |||||||||
Pursuant to the Plan, the Company’s Board of Directors approves agreements for the issuance of restricted stock to directors, executive officers and other key employees. Restricted stock granted in fiscal 2011, 2012 and 2013, vests three to four years from the date of grant. In some cases, the vesting schedule is accelerated upon death, disability, the participant’s termination of employment after reaching retirement eligibility, or upon a change in control, as defined. Restricted stock grants are valued based upon the closing market price of the Company’s common stock on the date of grant and are recognized as compensation expense over the vesting period. Compensation expense related to restricted stock grants totaled $4,487,000; $4,588,000; and $3,816,000 during fiscal 2013, 2012 and 2011, respectively. | |||||||||
A summary of the Company’s restricted stock activity and related information is as follows: | |||||||||
Number of | Weighted | ||||||||
Shares | Average Grant | ||||||||
Price | |||||||||
Outstanding at October 31, 2006 | 379,000 | $ | 43.81 | ||||||
Granted during fiscal 2007 | 15,000 | $ | 33.7 | ||||||
Vested during 2007 | 0 | $ | 0 | ||||||
Forfeited during 2007 | (5,050 | ) | $ | 42.62 | |||||
Outstanding at October 31, 2007 | 388,950 | $ | 42.79 | ||||||
Granted during fiscal 2008 | 45,209 | $ | 35 | ||||||
Vested during 2008 | (21,000 | ) | $ | 44.56 | |||||
Forfeited during 2008 | (3,485 | ) | $ | 41.36 | |||||
Outstanding at October 31, 2008 | 409,674 | $ | 41.86 | ||||||
Granted during fiscal 2009 | 78,826 | $ | 36.12 | ||||||
Vested during 2009 | (9,000 | ) | $ | 25.53 | |||||
Forfeited during 2009 | 0 | $ | 0 | ||||||
Outstanding at October 31, 2009 | 479,500 | $ | 41.22 | ||||||
Granted during fiscal 2010 | 127,150 | $ | 40.8 | ||||||
Vested during 2010 | (96,838 | ) | $ | 36.93 | |||||
Forfeited during 2010 | (16,864 | ) | $ | 38.99 | |||||
Outstanding at October 31, 2010 | 492,948 | $ | 41.98 | ||||||
Granted during fiscal 2011 | 112,025 | $ | 43.7 | ||||||
Vested during 2011 | (35,193 | ) | $ | 40.21 | |||||
Forfeited during 2011 | (3,267 | ) | $ | 40.1 | |||||
Outstanding at October 31, 2011 | 566,513 | $ | 42.44 | ||||||
Granted during fiscal 2012 | 118,175 | $ | 48.5 | ||||||
Vested during 2012 | (81,819 | ) | $ | 39.97 | |||||
Forfeited during 2012 | (14,669 | ) | $ | 43.32 | |||||
Outstanding at October 31, 2012 | 588,200 | $ | 43.98 | ||||||
Granted during fiscal 2013 | 78,700 | $ | 48.5 | ||||||
Vested during 2013 | (87,431 | ) | $ | 42.26 | |||||
Forfeited during 2013 | (10,844 | ) | $ | 45.3 | |||||
Outstanding at October 31, 2013 | 568,625 | $ | 44.85 | ||||||
As reflected in the schedule above, 331,281 shares of the restricted stock awards were vested as of October 31, 2013. Of the 331,281 shares vested as of October 31, 2013, 92,463 were withheld by the Company to satisfy the tax withholding obligations of the recipients. The Company had $6.2 million in unrecognized share-based compensation costs as of October 31, 2013, that will be recognized over a weighted average period of 1.5 years. | |||||||||
Also pursuant to the Plan, the Company’s Board of Directors approves Management Share Purchase Plan agreements (the “Purchase Plan”) that authorize the issuance of shares of restricted stock to the Company’s directors, executive officers and other key employees. Pursuant to the Purchase Plan, non-employee directors may elect to receive up to 100 percent of their annual retainer and meeting fees in the form of restricted stock. Other participants may elect to receive up to 15 percent of their salary and up to 75 percent of any bonus earned in the form of restricted stock. The purchase price of the restricted stock is the closing market price of the Company’s common stock on the date of purchase. The Company makes matching contributions of 25 percent of the restricted shares purchased by participants. Restricted stock issued pursuant to the Purchase Plan vests after three years or immediately upon death, disability, or change in control, as defined. If an employee terminates employment after attaining eligibility for retirement, or a non-employee director retires upon the expiration of his or her board term, the participant’s Purchase Plan shares vest immediately. If a participant’s employment or service as a director is terminated for any other reason prior to the three-year vesting period, the participant forfeits the matching contribution and the Company may, at its option, repurchase restricted stock purchased by the participant at the price paid by the participant. Matching contributions are recognized as compensation expense over the vesting period. During fiscal 2013, 2012 and 2011, the participants purchased a total of 14,431, 16,359, and 21,497 shares of restricted stock pursuant to the Purchase Plan, valued at an average $57.30, $48.13, and $43.97 per share, respectively, and the Company issued 3,514, 4,005, and 5,277 matching shares, valued at an average $57.30, $48.13, and $43.97 per share, respectively. Compensation expense related to the Company’s matching contribution totaled approximately $199,000, $197,000 and $201,000 in fiscal 2013, 2012 and 2011, respectively. | |||||||||
During fiscal 2013, 2012 and 2011 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, they are subject to an additional one year holding period before they 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. The target number of shares specified in the performance share agreements executed during fiscal 2008 totaled 67,820, during fiscal 2009 totaled 60,500, during fiscal 2010 totaled 70,000, during fiscal 2011 totaled 86,725, during fiscal 2012 totaled 95,175, and during fiscal 2013 totaled 98,950. The Company recorded compensation cost of $1,485,000 and $3,190,000 during fiscal 2011 and 2010, respectively, related to the performance share agreements entered into during fiscal 2008 and 2009. During fiscal 2012, no compensation cost was recorded related to performance share agreements entered into during fiscal 2012, fiscal 2011 and fiscal 2010. The Company recorded compensation cost of $3,425,000 during fiscal 2013, related to the performance share agreements entered into during fiscal 2012, but the Company recorded no compensation cost related to the performance share agreements entered into during fiscal 2013. In estimating the compensation expense to record in a period, the Company considers, among other factors, the current and projected grain costs and chicken volumes and pricing, as well as the amount of 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. The accounting for these arrangements requires the Company to accrue over the three year service period the estimated amounts of the shares that will be earned with changes made during the service period adjusted using the cumulative catch up method. | |||||||||
Under the Company’s Stock Option Plan, 2,250,000 shares of common stock were reserved for grant to key management personnel. Options outstanding at October 31, 2008, were granted in fiscal 2002, have ten-year terms and vest over four years beginning one year after the date of grant. The Company did not grant any options during fiscal 2013, 2012 or 2011. The Stock Option Plan has been superseded by the Plan described above and no further options may be issued under the Stock Option Plan. | |||||||||
A summary of the Company’s stock option activity and related information is as follows: | |||||||||
Shares | Weighted-Average | ||||||||
Exercise Price | |||||||||
Outstanding at October 31, 2010 | 7,501 | $ | 12.37 | ||||||
Granted | 0 | — | |||||||
Exercised | (1,500 | ) | 12.37 | ||||||
Forfeited | 0 | — | |||||||
Outstanding at October 31, 2011 | 6,001 | 12.37 | |||||||
Granted | 0 | — | |||||||
Exercised | (6,000 | ) | 12.37 | ||||||
Forfeited | (1 | ) | 12.37 | ||||||
Outstanding at October 31, 2012 | 0 | $ | — | ||||||
During the fiscal year ended October 31, 2012, 6,000 options were exercised with an intrinsic value of $197,600 and 1 option was forfeited with an intrinsic value of $32.93. | |||||||||
Other_Matters
Other Matters | 12 Months Ended | ||||
Oct. 31, 2013 | |||||
Other Matters | ' | ||||
10. Other Matters | |||||
The Company has approximately 11,271 employees, approximately 27.7% of which are covered by collective bargaining agreements. Each collective bargaining agreement has a grievance procedure and no strike-no lockout clauses that should assist in maintaining stable labor relations at the respective facility. | |||||
The Company has vehicle and equipment operating leases that expire at various dates through fiscal 2018. Rental expense under these leases totaled $7.0 million, $6.8 million, and $7.7 million during fiscal 2013, 2012 and 2011, respectively. The minimum lease payments of obligations under non-cancelable operating leases at October 31, 2013 were as follows (in millions): | |||||
Fiscal Year | Amount | ||||
2014 | $ | 5.7 | |||
2015 | 5.5 | ||||
2016 | 3.1 | ||||
2017 | 1.7 | ||||
2018 | 0.8 | ||||
$ | 16.8 | ||||
At October 31, 2013, the Company’s estimated contractual obligations for feed grains, feed ingredients, and packaging supplies totaled $77.2 million, with the entire amount due in less than one year. | |||||
As reported in Item 3 of the Company’s Form 10-K for the fiscal year ended October 31, 2012, two of our former employees filed a complaint on February 16, 2012, alleging violations of the federal and State of Georgia’s Racketeer Influenced and Corrupt Organizations (“RICO”) Acts against us and seven of our current and former employees in the United States District Court for the Middle District of Georgia. The plaintiffs contend in their complaint that the Company conspired to knowingly hire undocumented immigrants at the Moultrie plant to “save Sanderson millions of dollars in labor costs because illegal aliens will work for extremely low wages”. The action is brought as a class action lawsuit on behalf of all legally authorized hourly employees that worked at the Moultrie plant in the four years before the filing of the case. The plaintiffs are suing for money damages, injunctive relief and revocation of our license to conduct business in the State of Georgia. | |||||
On September 13, 2012, the Court entered an Order granting a motion to dismiss the Complaint, but provided the plaintiffs an opportunity to file an Amended Complaint on one of the alleged violations. After an Amended Complaint was filed by the plaintiffs on October 5, 2012, the Company filed a motion to dismiss the Amended Complaint on October 29, 2012. On February 5, 2013, the Court granted the Company’s motion to dismiss and entered an Order dismissing the Amended Complaint with prejudice. The plaintiffs filed a notice of appeal with the United States Court of Appeals for the Eleventh Circuit on February 8, 2013. The Brief for Plaintiffs-Appellants was filed on March 19, 2013, and the Brief for Defendants-Appellees was filed on April 22, 2013. The Plaintiffs-Appellants’ Reply Brief was filed May 6, 2013. Oral argument was held on November 20, 2013. This matter is pending. | |||||
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 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 determines the amount of reserves required, if any. At this time, the Company has not accrued any reserve for any of these matters. 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. |
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Quarterly Financial Data (unaudited) | ' | ||||||||||||||||
11. Quarterly Financial Data (unaudited) | |||||||||||||||||
Fiscal Year 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Net sales | $ | 595,760 | $ | 621,195 | $ | 738,964 | $ | 727,061 | |||||||||
Gross profit | 10,893 | 58,962 | 133,946 | 102,124 | |||||||||||||
Net income (loss) | (6,943 | ) | 24,371 | 67,919 | 45,270 | ||||||||||||
Diluted earnings (loss) per share | $ | (0.31 | ) | $ | 1.06 | $ | 2.95 | $ | 1.97 | ||||||||
Fiscal Year 2012 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Net sales | $ | 517,826 | $ | 595,046 | $ | 624,854 | $ | 648,379 | |||||||||
Gross profit | 8,822 | 59,145 | 69,614 | 35,832 | |||||||||||||
Net income (loss) | (7,989 | ) | 23,865 | 28,721 | 9,347 | ||||||||||||
Diluted earnings (loss) per share | $ | (0.36 | ) | $ | 1.05 | $ | 1.25 | $ | 0.41 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts Schedule II | 12 Months Ended | ||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||
Valuation and Qualifying Accounts Schedule II | ' | ||||||||||||||||||
Sanderson Farms, Inc. and Subsidiaries | |||||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||||
Schedule II | |||||||||||||||||||
COL. A | COL. B | COL. C | COL. D | COL. E | COL. F | ||||||||||||||
Classification | Balance at | Charged to | Charged to | Deductions | Balance at | ||||||||||||||
Beginning | Costs and | Other | Describe(1) | End of | |||||||||||||||
of Period | Expenses | Accounts | Period | ||||||||||||||||
(In Thousands) | |||||||||||||||||||
Year ended October 31, 2013 | |||||||||||||||||||
Deducted from accounts receivable: | |||||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||||
Totals | $ | 1,785 | $ | 470 | $ | 55 | $ | 2,200 | |||||||||||
Year ended October 31, 2012 | |||||||||||||||||||
Deducted from accounts receivable: | |||||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||||
Totals | $ | 1,373 | $ | 412 | $ | 0 | $ | 1,785 | |||||||||||
Year ended October 31, 2011 | |||||||||||||||||||
Deducted from accounts receivable: | |||||||||||||||||||
Allowance for doubtful accounts | |||||||||||||||||||
Totals | $ | 1,373 | $ | 0 | $ | 0 | $ | 1,373 | |||||||||||
-1 | Uncollectible accounts written off, net of recoveries |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation: The consolidated financial statements include the accounts of Sanderson Farms, Inc. (the “Company”) and its wholly-owned subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. | |||||||||||||||||
Business | ' | ||||||||||||||||
Business: The Company is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared chicken items. The Company’s net sales and cost of sales are significantly affected by market price fluctuations of its principal products sold and of its principal feed ingredients, corn and other grains. | |||||||||||||||||
The Company sells to retailers, distributors and casual dining operators primarily in the southeastern, southwestern, northeastern and western United States. Management periodically performs credit evaluations of its customers’ financial condition and generally does not require collateral. One customer accounted for more than 10% of consolidated sales for each of the years ended October 31, 2013, 2012 and 2011. Sales to that customer accounted for 14.2%, 13.0%, and 10.6% of the Company’s consolidated net sales in fiscal 2013, 2012, and 2011, respectively. Shipping and handling costs are included as a component of cost of sales. | |||||||||||||||||
Generally, revenue is recognized in connection with a transaction when the Company has agreed to sell, and our customer has agreed to purchase, a specific quantity of product, when delivery has occurred, when the price to the buyer has been fixed, and when collectability is reasonably assured. For most customers, this occurs when the product is delivered to customers, which for domestic sales usually occurs at the time of shipment. Revenue on certain international sales is recognized upon transfer of title, which may occur after shipment. Revenue is recognized as the net amount estimated to be received after deducting estimated amounts for discounts, cooperative advertising allowances, product terms and other items. | |||||||||||||||||
RECONCILIATION OF GROSS SALES TO NET SALES DOLLARS (in millions) | |||||||||||||||||
Product | Description | Fiscal Year | Fiscal Year | Fiscal Year | |||||||||||||
Category | 2013 | 2012 | 2011 | ||||||||||||||
Fresh Ice Packed Chicken | Gross Sales | $ | 367.4 | $ | 308.4 | $ | 263.9 | ||||||||||
Commissions | (4.1 | ) | (4.3 | ) | (3.9 | ) | |||||||||||
Sales and Customer Allowances | (11.2 | ) | (9.8 | ) | (8.5 | ) | |||||||||||
Other (1) | (9.8 | ) | (6.9 | ) | (5.3 | ) | |||||||||||
Net Sales | 342.3 | 287.4 | 246.2 | ||||||||||||||
Chill Pack Chicken | Gross Sales | 955 | 821.3 | 670.1 | |||||||||||||
Commissions | (6.5 | ) | (6.8 | ) | (6.0 | ) | |||||||||||
Sales and Customer Allowances | (9.5 | ) | (10.2 | ) | (8.5 | ) | |||||||||||
Other (1) | (6.3 | ) | (5.2 | ) | (3.2 | ) | |||||||||||
Net Sales | 932.7 | 799.1 | 652.4 | ||||||||||||||
Frozen Chicken | Gross Sales | 282 | 314.1 | 272 | |||||||||||||
Commissions | (0.2 | ) | (0.1 | ) | (0.0 | ) | |||||||||||
Sales and Customer Allowances | (0.0 | ) | (0.3 | ) | (0.0 | ) | |||||||||||
Other (1) | (0.8 | ) | (0.8 | ) | (1.8 | ) | |||||||||||
Net Sales | 281 | 312.9 | 270.2 | ||||||||||||||
Fresh Vacuum Sealed Chicken | Gross Sales | 1,009.60 | 875.7 | 690.8 | |||||||||||||
Commissions | (1.8 | ) | (1.9 | ) | (1.8 | ) | |||||||||||
Sales and Customer Allowances | (8.3 | ) | (6.4 | ) | (6.0 | ) | |||||||||||
Other (1) | (7.5 | ) | (5.1 | ) | (4.0 | ) | |||||||||||
Net Sales | 992 | 862.3 | 679 | ||||||||||||||
Partially Cooked Chicken | Gross Sales | 98.3 | 90.4 | 107.9 | |||||||||||||
Commissions | (0.8 | ) | (0.8 | ) | (1.0 | ) | |||||||||||
Sales and Customer Allowances | (0.4 | ) | (0.4 | ) | (0.4 | ) | |||||||||||
Other (1) | (0.2 | ) | (0.1 | ) | (0.1 | ) | |||||||||||
Net Sales | 96.9 | 89.1 | 106.4 | ||||||||||||||
Mechanically Deboned Chicken | Gross Sales | 38.1 | 35.3 | 23.9 | |||||||||||||
Commissions | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Sales and Customer Allowances | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Other (1) | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Net Sales | 38.1 | 35.3 | 23.9 | ||||||||||||||
Totals | Gross Sales | 2,750.40 | 2,445.20 | 2,028.60 | |||||||||||||
Commissions | (13.4 | ) | (13.9 | ) | (12.7 | ) | |||||||||||
Sales and Customer Allowances | (29.4 | ) | (27.1 | ) | (23.4 | ) | |||||||||||
Other (1) | (24.6 | ) | (18.1 | ) | (14.4 | ) | |||||||||||
Net Sales | $ | 2,683.00 | $ | 2,386.10 | $ | 1,978.10 | |||||||||||
-1 | Other deductions include short weights, credit memos, rebates and other items, none of which, individually, is material. | ||||||||||||||||
Sales of offal to rendering companies are considered by-products; accordingly, these amounts reduce cost of sales and totaled $47.6 million, $43.1 million and $35.4 million in fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
The Company sells certain of its products either directly to foreign markets or to U.S. based customers who resell the product in foreign markets. These foreign markets are primarily Russia, Eastern Europe, China, Mexico and the Caribbean. These export sales for fiscal years 2013, 2012 and 2011 totaled approximately $292.6 million, $318.7 million and $253.8 million, respectively. The Company does not believe that the amount of sales attributable to any single foreign country is material to its total sales during any of the periods presented. The Company’s export sales are facilitated through independent food brokers located in the United States and the Company’s internal sales staff. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||||||||
Cash Equivalents | ' | ||||||||||||||||
Cash Equivalents: The Company considers all highly liquid investments with maturities of ninety days or less when purchased to be cash equivalents. | |||||||||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||||||||
Allowance for Doubtful Accounts: In the normal course of business, the Company extends credit to its customers on a short-term basis. Although credit risks associated with our customers are considered minimal, the Company routinely reviews its accounts receivable balances and makes provisions for probable doubtful accounts based on an individual assessment of a customer’s credit quality as well as subjective factors and trends, including the aging of receivable balances. In circumstances where management is aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve is recorded to reduce the receivable to the amount expected to be collected. If circumstances change (i.e., higher than expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations to us), our estimates of the recoverability of amounts due us could be reduced by a material amount and the allowance for doubtful accounts and related bad debt expense would increase by the same amount. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories: Processed and prepared inventories and inventories of feed, eggs, medication and packaging supplies are stated at the lower of cost (first-in, first-out method) or market value. | |||||||||||||||||
Live poultry inventories of broilers are stated at the lower of cost or market value and breeders at cost less accumulated amortization. The costs associated with breeders, including breeder chicks, feed, medicine and grower pay, are accumulated up to the production stage and amortized over nine months using the straight-line method. | |||||||||||||||||
When the projected cost to complete, process and sell broilers exceeds the expected market value for the finished product, the Company reduces the value of live inventories from cost to market. | |||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
Property, Plant and Equipment: Property, plant and equipment is stated at cost. Depreciation of property, plant and equipment is provided by the straight-line method over the estimated useful lives of 15 to 39 years for buildings and 3 to 12 years for machinery and equipment. During fiscal 2013 and 2011, the Company capitalized interest of $75,000 and $630,000, respectively, to the new complexes under construction at the time in Palestine, Texas and Kinston, North Carolina. With the absence of a major construction project, the Company did not capitalize any interest during fiscal 2012. | |||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||
Impairment of Long-Lived Assets: The Company continually reevaluates the carrying value of its long-lived assets based on events or changes in circumstances which indicate that the carrying value may not be recoverable. As part of this reevaluation and when indicators are present, the Company estimates the future cash flows expected to result from the use of the asset and its eventual disposal. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss, based on the fair value of the assets, is recognized through a charge to operations. | |||||||||||||||||
Self-Insurance Programs | ' | ||||||||||||||||
Self-Insurance Programs: Insurance expense for workers’ compensation benefits and employee-related health care benefits are estimated using historical experience and actuarial estimates. The Company accrues expenses in its workers’ compensation and employee benefit plans for both known claims as well as claims incurred but not reported. Stop-loss coverage is maintained with third party insurers to limit the Company’s total exposure. Management regularly reviews the assumptions used to recognize periodic expenses. Any resulting adjustments to accrued claims are reflected in current operating results. There are no material adjustments to expenses accrued in prior periods in current expenses. If historical experience proves not to be a good indicator of future expenses, if management were to use different actuarial assumptions, or if there is a negative trend in the Company’s claims history, there could be a significant increase or decrease in cost of sales depending on whether these expenses increased or decreased, respectively. | |||||||||||||||||
Advertising and Marketing Costs | ' | ||||||||||||||||
Advertising and Marketing Costs: The Company expenses advertising costs as incurred. Advertising costs are included in selling, general and administrative expenses and totaled $3,340,000, $1,268,000 and $875,000 for fiscal 2013, 2012 and 2011, respectively. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes: Deferred income taxes are accounted for using the liability method and relate principally to depreciation expense, stock based compensation programs and self-insurance programs accounted for differently for financial and income tax purposes. | |||||||||||||||||
Valuation allowances are recorded when it is more likely than not some or all of a deferred tax asset will not be realized. | |||||||||||||||||
The Company is periodically audited by taxing authorities and considers any adjustments, interest, and penalties incurred as a result of the audits in computing income tax expense. Any audit adjustments affecting permanent differences could have an impact on the Company’s effective tax rate. Tax periods for fiscal years 2009 through 2013 remain open to examination by federal and state taxing jurisdictions to which the Company is subject. | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-Based Compensation: The Company accounts for all share-based payments to employees, including grants of employee stock options, restricted stock and performance-based shares in the income statement based on their fair values. For performance-based shares, the Company recognizes expense when management determines the performance criteria are probable of being met. | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Earnings Per Share: Basic earnings per share is based upon the weighted average number of common shares outstanding during the year. Share-based payment awards entitling holders to receive non-forfeitable dividends before vesting are considered participating securities and thus included in the calculation of basic earnings per share. 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 outstanding shares. Diluted earnings per share includes any dilutive effects of options, warrants, restricted stock and convertible securities. | |||||||||||||||||
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 cash equivalents representing overnight investments and 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. | |||||||||||||||||
At October 31, 2013 and 2012, the fair value of the Company’s cash and short-term cash investments of approximately $85.6 million and $27.8 million, respectively, approximated their carrying value due to the short maturity of these financial instruments and were categorized as a Level 2 measurement. Inputs used to measure fair value were primarily recent trading prices and prevailing market interest rates. | |||||||||||||||||
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 credit facilities, long-term debt and capital lease obligations were as follows (in millions): | |||||||||||||||||
October 31, 2013 | October 31, 2012 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
Total Debt (In millions) | $ | 43 | $ | 40 | $ | 163 | $ | 161 | |||||||||
Reclassifications | ' | ||||||||||||||||
Reclassifications: The Company has made reclassifications to prior year financial statements to conform with the presentation for the current year financial statements. The reclassifications are for consistency of presentation and do not affect previously reported net income (loss), stockholders’ equity or total assets. | |||||||||||||||||
Impact of Recently Issued Accounting Standards | ' | ||||||||||||||||
Impact of Recently Issued Accounting Standards: In May 2011, FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS”. The amendments in this update generally represent clarifications of Topic 820, but also include some instances where a particular principle or requirement for measuring fair value or disclosing information about fair value measurements has changed. This update results in common principles and requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and IFRS. This update is effective for annual and interim periods beginning after December 15, 2011, and was adopted in the three month period ending January 31, 2013. This update did not have an impact on the Company’s consolidated financial position, results of operations or cash flows. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Reconciliation of Gross Sales to Net Sales | ' | ||||||||||||||||
RECONCILIATION OF GROSS SALES TO NET SALES DOLLARS (in millions) | |||||||||||||||||
Product | Description | Fiscal Year | Fiscal Year | Fiscal Year | |||||||||||||
Category | 2013 | 2012 | 2011 | ||||||||||||||
Fresh Ice Packed Chicken | Gross Sales | $ | 367.4 | $ | 308.4 | $ | 263.9 | ||||||||||
Commissions | (4.1 | ) | (4.3 | ) | (3.9 | ) | |||||||||||
Sales and Customer Allowances | (11.2 | ) | (9.8 | ) | (8.5 | ) | |||||||||||
Other (1) | (9.8 | ) | (6.9 | ) | (5.3 | ) | |||||||||||
Net Sales | 342.3 | 287.4 | 246.2 | ||||||||||||||
Chill Pack Chicken | Gross Sales | 955 | 821.3 | 670.1 | |||||||||||||
Commissions | (6.5 | ) | (6.8 | ) | (6.0 | ) | |||||||||||
Sales and Customer Allowances | (9.5 | ) | (10.2 | ) | (8.5 | ) | |||||||||||
Other (1) | (6.3 | ) | (5.2 | ) | (3.2 | ) | |||||||||||
Net Sales | 932.7 | 799.1 | 652.4 | ||||||||||||||
Frozen Chicken | Gross Sales | 282 | 314.1 | 272 | |||||||||||||
Commissions | (0.2 | ) | (0.1 | ) | (0.0 | ) | |||||||||||
Sales and Customer Allowances | (0.0 | ) | (0.3 | ) | (0.0 | ) | |||||||||||
Other (1) | (0.8 | ) | (0.8 | ) | (1.8 | ) | |||||||||||
Net Sales | 281 | 312.9 | 270.2 | ||||||||||||||
Fresh Vacuum Sealed Chicken | Gross Sales | 1,009.60 | 875.7 | 690.8 | |||||||||||||
Commissions | (1.8 | ) | (1.9 | ) | (1.8 | ) | |||||||||||
Sales and Customer Allowances | (8.3 | ) | (6.4 | ) | (6.0 | ) | |||||||||||
Other (1) | (7.5 | ) | (5.1 | ) | (4.0 | ) | |||||||||||
Net Sales | 992 | 862.3 | 679 | ||||||||||||||
Partially Cooked Chicken | Gross Sales | 98.3 | 90.4 | 107.9 | |||||||||||||
Commissions | (0.8 | ) | (0.8 | ) | (1.0 | ) | |||||||||||
Sales and Customer Allowances | (0.4 | ) | (0.4 | ) | (0.4 | ) | |||||||||||
Other (1) | (0.2 | ) | (0.1 | ) | (0.1 | ) | |||||||||||
Net Sales | 96.9 | 89.1 | 106.4 | ||||||||||||||
Mechanically Deboned Chicken | Gross Sales | 38.1 | 35.3 | 23.9 | |||||||||||||
Commissions | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Sales and Customer Allowances | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Other (1) | (0.0 | ) | (0.0 | ) | (0.0 | ) | |||||||||||
Net Sales | 38.1 | 35.3 | 23.9 | ||||||||||||||
Totals | Gross Sales | 2,750.40 | 2,445.20 | 2,028.60 | |||||||||||||
Commissions | (13.4 | ) | (13.9 | ) | (12.7 | ) | |||||||||||
Sales and Customer Allowances | (29.4 | ) | (27.1 | ) | (23.4 | ) | |||||||||||
Other (1) | (24.6 | ) | (18.1 | ) | (14.4 | ) | |||||||||||
Net Sales | $ | 2,683.00 | $ | 2,386.10 | $ | 1,978.10 | |||||||||||
-1 | Other deductions include short weights, credit memos, rebates and other items, none of which, individually, is material. | ||||||||||||||||
Fair Value and Carrying Value of Borrowings Under Credit Facilties Long-Term Debt and Capital Lease Obligations | ' | ||||||||||||||||
The fair value and carrying value of the Company’s borrowings under its credit facilities, long-term debt and capital lease obligations were as follows (in millions): | |||||||||||||||||
October 31, 2013 | October 31, 2012 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
Total Debt (In millions) | $ | 43 | $ | 40 | $ | 163 | $ | 161 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Schedule of Inventory, Current | ' | ||||||||
Inventories consisted of the following: | |||||||||
October 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Live poultry-broilers and breeders | $ | 124,260 | $ | 147,102 | |||||
Feed, eggs and other | 34,949 | 39,343 | |||||||
Processed poultry | 32,139 | 32,196 | |||||||
Prepared chicken | 6,483 | 9,894 | |||||||
Packaging materials | 8,024 | 7,377 | |||||||
$ | 205,855 | $ | 235,912 | ||||||
Prepaid_expenses_Tables
Prepaid expenses (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Prepaid Expenses | ' | ||||||||
Prepaid expenses consisted of the following: | |||||||||
October 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Parts and supplies | $ | 16,880 | $ | 15,598 | |||||
Prepaid insurance | 9,450 | 8,675 | |||||||
Other prepaid expenses | 3,537 | 3,366 | |||||||
$ | 29,867 | $ | 27,639 | ||||||
Accrued_expenses_Tables
Accrued expenses (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Accrued expenses | ' | ||||||||
Accrued expenses consisted of the following: | |||||||||
October 31, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Accrued bonuses | $ | 21,574 | $ | 0 | |||||
Workers’ compensation claims | 5,531 | 9,894 | |||||||
Accrued wages | 9,708 | 7,957 | |||||||
Accrued rebates | 6,618 | 6,193 | |||||||
Accrued vacation | 5,174 | 5,179 | |||||||
Accrued property taxes | 4,484 | 4,796 | |||||||
Accrued commissions | 1,464 | 1,772 | |||||||
Accrued payroll taxes | 842 | 1,728 | |||||||
Post-retirement benefit | 1,244 | 1,273 | |||||||
Deferred revenue | 400 | 1,100 | |||||||
Other accrued expenses | 1,232 | 2,190 | |||||||
$ | 58,271 | $ | 42,082 | ||||||
LongTerm_debt_and_capital_leas1
Long-Term debt and capital lease obligations (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2013 | |||||||||||
Long-Term Debt and Capital Lease Obligations | ' | ||||||||||
Long-term debt and capital lease obligations consisted of the following: | |||||||||||
October 31, | |||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
Revolving credit agreement with banks | $ | 0 | $ | 110,000 | |||||||
Term loan, accruing interest at 6.12%, maturing in 2016 | 30,000 | 40,000 | |||||||||
Capital lease obligation, imputed interest at 5.53%, due in monthly installments of $112,015, including interest, maturity in 2015 | 10,213 | 10,969 | |||||||||
40,213 | 160,969 | ||||||||||
Less current maturities of long-term debt and capital leases | 10,799 | 10,757 | |||||||||
$ | 29,414 | $ | 150,212 | ||||||||
Leverage Ratio on which Spread on Libor Borrowings and Commitment Fee for Unused Balance of Revolving Credit Agreement are Determined | ' | ||||||||||
The spread on Libor borrowings and the commitment fee for the unused balance of the revolving credit agreement are determined based upon the Company’s leverage ratio as follows: | |||||||||||
Level | Leverage Ratio | Spread | Commitment Fee | ||||||||
1 | < 25% | 0.5 | % | 0.25 | % | ||||||
2 | ³ 25% and < 35% | 0.75 | % | 0.3 | % | ||||||
3 | ³ 35% and < 45% | 1.25 | % | 0.35 | % | ||||||
4 | ³ 45% and < 55% | 1.75 | % | 0.4 | % | ||||||
5 | ³ 55% | 2.25 | % | 0.5 | % | ||||||
Annual Maturities of Long-Term Debt and Capital Lease Obligations | ' | ||||||||||
The aggregate annual maturities of long-term debt and capital lease obligations at October 31, 2013, are as follows (in thousands): | |||||||||||
Fiscal Year | Amount | ||||||||||
2014 | $ | 10,799 | |||||||||
2015 | 19,414 | ||||||||||
2016 | 10,000 | ||||||||||
$ | 40,213 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Income Tax Expense (Benefit) | ' | ||||||||||||
Income tax expense (benefit) consisted of the following: | |||||||||||||
Years Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 63,923 | $ | 23,641 | $ | (84,207 | ) | ||||||
State | 5,589 | 992 | (4,420 | ) | |||||||||
69,512 | 24,633 | (88,627 | ) | ||||||||||
Deferred: | |||||||||||||
Federal | (1,389 | ) | 6,435 | 23,656 | |||||||||
State | (5,450 | ) | (40 | ) | (11,869 | ) | |||||||
Change in valuation allowance | 6,823 | 1,600 | 9,675 | ||||||||||
(16 | ) | 7,995 | 21,462 | ||||||||||
$ | 69,496 | $ | 32,628 | $ | (67,165 | ) | |||||||
Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company’s deferred tax assets and liabilities were as follows: | |||||||||||||
October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax liabilities: | |||||||||||||
Property, plant and equipment | $ | 69,942 | $ | 66,957 | |||||||||
Prepaid and other assets | 1,765 | 1,374 | |||||||||||
Total deferred tax liabilities | 71,707 | 68,331 | |||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and accounts receivable | 9,187 | 7,742 | |||||||||||
Inventory | 85 | 670 | |||||||||||
Compensation on restricted stock | 7,514 | 6,523 | |||||||||||
State income tax credits | 18,098 | 11,275 | |||||||||||
Other | 2,310 | 769 | |||||||||||
Valuation allowance | (18,098 | ) | (11,275 | ) | |||||||||
Total deferred tax assets | 19,096 | 15,704 | |||||||||||
Net deferred tax liabilities | $ | 52,611 | $ | 52,627 | |||||||||
Current deferred tax assets | $ | (478 | ) | $ | (3,945 | ) | |||||||
Long-term deferred tax liabilities | 53,089 | 56,572 | |||||||||||
Net deferred tax liabilities | $ | 52,611 | $ | 52,627 | |||||||||
Differences Between Consolidated Effective Income Tax Rate and Federal Statutory Rate | ' | ||||||||||||
The differences between the consolidated effective income tax rate and the federal statutory rate of 35.0% are as follows: | |||||||||||||
Years Ended October 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Income taxes at statutory rate | $ | 70,040 | $ | 30,300 | $ | (67,985 | ) | ||||||
State income taxes | 4,525 | 1,659 | (4,299 | ) | |||||||||
State income tax credits | (6,823 | ) | (1,600 | ) | (9,675 | ) | |||||||
Federal income tax credits | (715 | ) | (130 | ) | (748 | ) | |||||||
Federal manufacturers (deduction) recapture | (6,469 | ) | (2,191 | ) | 5,281 | ||||||||
Nondeductible expenses | 2,353 | 3,008 | 678 | ||||||||||
Other, net | (238 | ) | (18 | ) | (92 | ) | |||||||
Change in valuation allowance | 6,823 | 1,600 | 9,675 | ||||||||||
Income tax expense (benefit) | $ | 69,496 | $ | 32,628 | $ | (67,165 | ) | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
The following table presents earnings per share. | |||||||||||||
For the years ended | |||||||||||||
October 31, 2013 | October 31, 2012 | October 31, 2011 | |||||||||||
Net income (loss) | $ | 130,617 | $ | 53,944 | $ | (127,077 | ) | ||||||
Distributed and undistributed (earnings) losses to unvested restricted stock | (3,704 | ) | (1,612 | ) | 0 | ||||||||
Distributed and undistributed earnings (losses) to common shareholders — Basic | 126,913 | 52,332 | (127,077 | ) | |||||||||
Weighted average shares outstanding — Basic | 22,363 | 22,280 | 22,130 | ||||||||||
Weighted average shares outstanding — Diluted | 22,363 | 22,282 | 22,130 | ||||||||||
Earnings per common share — Basic | $ | 5.68 | $ | 2.35 | $ | (5.74 | ) | ||||||
Earnings per common share — Diluted | $ | 5.68 | $ | 2.35 | $ | (5.74 | ) |
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2013 | |||||||||
Restricted Stock Activity | ' | ||||||||
A summary of the Company’s restricted stock activity and related information is as follows: | |||||||||
Number of | Weighted | ||||||||
Shares | Average Grant | ||||||||
Price | |||||||||
Outstanding at October 31, 2006 | 379,000 | $ | 43.81 | ||||||
Granted during fiscal 2007 | 15,000 | $ | 33.7 | ||||||
Vested during 2007 | 0 | $ | 0 | ||||||
Forfeited during 2007 | (5,050 | ) | $ | 42.62 | |||||
Outstanding at October 31, 2007 | 388,950 | $ | 42.79 | ||||||
Granted during fiscal 2008 | 45,209 | $ | 35 | ||||||
Vested during 2008 | (21,000 | ) | $ | 44.56 | |||||
Forfeited during 2008 | (3,485 | ) | $ | 41.36 | |||||
Outstanding at October 31, 2008 | 409,674 | $ | 41.86 | ||||||
Granted during fiscal 2009 | 78,826 | $ | 36.12 | ||||||
Vested during 2009 | (9,000 | ) | $ | 25.53 | |||||
Forfeited during 2009 | 0 | $ | 0 | ||||||
Outstanding at October 31, 2009 | 479,500 | $ | 41.22 | ||||||
Granted during fiscal 2010 | 127,150 | $ | 40.8 | ||||||
Vested during 2010 | (96,838 | ) | $ | 36.93 | |||||
Forfeited during 2010 | (16,864 | ) | $ | 38.99 | |||||
Outstanding at October 31, 2010 | 492,948 | $ | 41.98 | ||||||
Granted during fiscal 2011 | 112,025 | $ | 43.7 | ||||||
Vested during 2011 | (35,193 | ) | $ | 40.21 | |||||
Forfeited during 2011 | (3,267 | ) | $ | 40.1 | |||||
Outstanding at October 31, 2011 | 566,513 | $ | 42.44 | ||||||
Granted during fiscal 2012 | 118,175 | $ | 48.5 | ||||||
Vested during 2012 | (81,819 | ) | $ | 39.97 | |||||
Forfeited during 2012 | (14,669 | ) | $ | 43.32 | |||||
Outstanding at October 31, 2012 | 588,200 | $ | 43.98 | ||||||
Granted during fiscal 2013 | 78,700 | $ | 48.5 | ||||||
Vested during 2013 | (87,431 | ) | $ | 42.26 | |||||
Forfeited during 2013 | (10,844 | ) | $ | 45.3 | |||||
Outstanding at October 31, 2013 | 568,625 | $ | 44.85 | ||||||
Stock Option Activity and Related Information | ' | ||||||||
A summary of the Company’s stock option activity and related information is as follows: | |||||||||
Shares | Weighted-Average | ||||||||
Exercise Price | |||||||||
Outstanding at October 31, 2010 | 7,501 | $ | 12.37 | ||||||
Granted | 0 | — | |||||||
Exercised | (1,500 | ) | 12.37 | ||||||
Forfeited | 0 | — | |||||||
Outstanding at October 31, 2011 | 6,001 | 12.37 | |||||||
Granted | 0 | — | |||||||
Exercised | (6,000 | ) | 12.37 | ||||||
Forfeited | (1 | ) | 12.37 | ||||||
Outstanding at October 31, 2012 | 0 | $ | — | ||||||
Other_Matters_Tables
Other Matters (Tables) | 12 Months Ended | ||||
Oct. 31, 2013 | |||||
Minimum Lease Payments of Obligations Under Non-Cancelable Operating Leases | ' | ||||
The minimum lease payments of obligations under non-cancelable operating leases at October 31, 2013 were as follows (in millions): | |||||
Fiscal Year | Amount | ||||
2014 | $ | 5.7 | |||
2015 | 5.5 | ||||
2016 | 3.1 | ||||
2017 | 1.7 | ||||
2018 | 0.8 | ||||
$ | 16.8 | ||||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||
Fiscal Year 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Net sales | $ | 595,760 | $ | 621,195 | $ | 738,964 | $ | 727,061 | |||||||||
Gross profit | 10,893 | 58,962 | 133,946 | 102,124 | |||||||||||||
Net income (loss) | (6,943 | ) | 24,371 | 67,919 | 45,270 | ||||||||||||
Diluted earnings (loss) per share | $ | (0.31 | ) | $ | 1.06 | $ | 2.95 | $ | 1.97 | ||||||||
Fiscal Year 2012 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
(unaudited) | |||||||||||||||||
Net sales | $ | 517,826 | $ | 595,046 | $ | 624,854 | $ | 648,379 | |||||||||
Gross profit | 8,822 | 59,145 | 69,614 | 35,832 | |||||||||||||
Net income (loss) | (7,989 | ) | 23,865 | 28,721 | 9,347 | ||||||||||||
Diluted earnings (loss) per share | $ | (0.36 | ) | $ | 1.05 | $ | 1.25 | $ | 0.41 |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Gross Sales | $2,750,400,000 | $2,445,200,000 | $2,028,600,000 |
Capitalized interest | 75,000 | ' | 630,000 |
Advertising costs | 3,340,000 | 1,268,000 | 875,000 |
Building | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property Plant and Equipment, estimated useful life | '39 years | ' | '39 years |
Building | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property Plant and Equipment, estimated useful life | '15 years | ' | '15 years |
Machinery and Equipment | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property Plant and Equipment, estimated useful life | '12 years | ' | '12 years |
Machinery and Equipment | Minimum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Property Plant and Equipment, estimated useful life | '3 years | ' | '3 years |
Cash Equivalents | Maximum | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Highly liquid investments included as cash equivalents, maximum maturities | '90 days | ' | ' |
Sales | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Percentage of revenue from a single major customer | 14.20% | 13.00% | 10.60% |
Outside United States | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Gross Sales | 292,600,000 | 318,700,000 | 253,800,000 |
Fair Value, Inputs, Level 2 | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Fair value of cash and short-term cash investments | 85,600,000 | 27,800,000 | ' |
Customer Concentration Risk | Individual Customer | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of customer accounted for more than 10% of consolidated sales | 1 | 1 | 1 |
Offal | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Gross Sales | $47,600,000 | $43,100,000 | $35,400,000 |
Reconciliation_of_Gross_Sales_
Reconciliation of Gross Sales to Net Sales (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | ||||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross Sales | ' | ' | ' | ' | ' | ' | ' | ' | $2,750,400,000 | $2,445,200,000 | $2,028,600,000 | |||
Commissions | ' | ' | ' | ' | ' | ' | ' | ' | -13,400,000 | -13,900,000 | -12,700,000 | |||
Sales and Customer Allowances | ' | ' | ' | ' | ' | ' | ' | ' | -29,400,000 | -27,100,000 | -23,400,000 | |||
Other | ' | ' | ' | ' | ' | ' | ' | ' | -24,600,000 | [1] | -18,100,000 | [1] | -14,400,000 | [1] |
Net Sales | 727,061,000 | 738,964,000 | 621,195,000 | 595,760,000 | 648,379,000 | 624,854,000 | 595,046,000 | 517,826,000 | 2,682,980,000 | 2,386,105,000 | 1,978,085,000 | |||
Fresh Ice Packed Chicken | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross Sales | ' | ' | ' | ' | ' | ' | ' | ' | 367,400,000 | 308,400,000 | 263,900,000 | |||
Commissions | ' | ' | ' | ' | ' | ' | ' | ' | -4,100,000 | -4,300,000 | -3,900,000 | |||
Sales and Customer Allowances | ' | ' | ' | ' | ' | ' | ' | ' | -11,200,000 | -9,800,000 | -8,500,000 | |||
Other | ' | ' | ' | ' | ' | ' | ' | ' | -9,800,000 | [1] | -6,900,000 | [1] | -5,300,000 | [1] |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 342,300,000 | 287,400,000 | 246,200,000 | |||
Chill Pack Chicken | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross Sales | ' | ' | ' | ' | ' | ' | ' | ' | 955,000,000 | 821,300,000 | 670,100,000 | |||
Commissions | ' | ' | ' | ' | ' | ' | ' | ' | -6,500,000 | -6,800,000 | -6,000,000 | |||
Sales and Customer Allowances | ' | ' | ' | ' | ' | ' | ' | ' | -9,500,000 | -10,200,000 | -8,500,000 | |||
Other | ' | ' | ' | ' | ' | ' | ' | ' | -6,300,000 | [1] | -5,200,000 | [1] | -3,200,000 | [1] |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 932,700,000 | 799,100,000 | 652,400,000 | |||
Frozen Chicken | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross Sales | ' | ' | ' | ' | ' | ' | ' | ' | 282,000,000 | 314,100,000 | 272,000,000 | |||
Commissions | ' | ' | ' | ' | ' | ' | ' | ' | -200,000 | -100,000 | 0 | |||
Sales and Customer Allowances | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -300,000 | 0 | |||
Other | ' | ' | ' | ' | ' | ' | ' | ' | -800,000 | [1] | -800,000 | [1] | -1,800,000 | [1] |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 281,000,000 | 312,900,000 | 270,200,000 | |||
Fresh Vacuum Sealed Chicken | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,009,600,000 | 875,700,000 | 690,800,000 | |||
Commissions | ' | ' | ' | ' | ' | ' | ' | ' | -1,800,000 | -1,900,000 | -1,800,000 | |||
Sales and Customer Allowances | ' | ' | ' | ' | ' | ' | ' | ' | -8,300,000 | -6,400,000 | -6,000,000 | |||
Other | ' | ' | ' | ' | ' | ' | ' | ' | -7,500,000 | [1] | -5,100,000 | [1] | -4,000,000 | [1] |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 992,000,000 | 862,300,000 | 679,000,000 | |||
Prepared Partially Cooked Chicken | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross Sales | ' | ' | ' | ' | ' | ' | ' | ' | 98,300,000 | 90,400,000 | 107,900,000 | |||
Commissions | ' | ' | ' | ' | ' | ' | ' | ' | -800,000 | -800,000 | -1,000,000 | |||
Sales and Customer Allowances | ' | ' | ' | ' | ' | ' | ' | ' | -400,000 | -400,000 | -400,000 | |||
Other | ' | ' | ' | ' | ' | ' | ' | ' | -200,000 | [1] | -100,000 | [1] | -100,000 | [1] |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 96,900,000 | 89,100,000 | 106,400,000 | |||
Fresh Ice Packed Chicken - Mechanically Deboned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gross Sales | ' | ' | ' | ' | ' | ' | ' | ' | 38,100,000 | 35,300,000 | 23,900,000 | |||
Commissions | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Sales and Customer Allowances | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | |||
Other | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | [1] | 0 | [1] |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | $38,100,000 | $35,300,000 | $23,900,000 | |||
[1] | Other deductions include short weights, credit memos, rebates and other items, none of which, individually, is material. |
Fair_Value_and_Carrying_Value_
Fair Value and Carrying Value of Borrowings Under Credit Facilities Long-Term Debt and Capital Lease Obligations (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Debt | $40 | $161 |
Fair Value, Inputs, Level 2 | Fair Value | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total Debt | $43 | $163 |
Inventories_Detail
Inventories (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventories | $205,855 | $235,912 |
Live poultry-broilers and breeders | ' | ' |
Inventory [Line Items] | ' | ' |
Inventories | 124,260 | 147,102 |
Feed, Eggs and Other | ' | ' |
Inventory [Line Items] | ' | ' |
Inventories | 34,949 | 39,343 |
Processed Poultry | ' | ' |
Inventory [Line Items] | ' | ' |
Inventories | 32,139 | 32,196 |
Prepared chicken | ' | ' |
Inventory [Line Items] | ' | ' |
Inventories | 6,483 | 9,894 |
Packaging Materials | ' | ' |
Inventory [Line Items] | ' | ' |
Inventories | $8,024 | $7,377 |
Prepaid_Expenses_Detail
Prepaid Expenses (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Line Items] | ' | ' |
Parts and supplies | $16,880 | $15,598 |
Prepaid insurance | 9,450 | 8,675 |
Other prepaid expenses | 3,537 | 3,366 |
Prepaid expenses | $29,867 | $27,639 |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Accrued Liabilities [Line Items] | ' | ' |
Accrued bonuses | $21,574 | $0 |
Workers' compensation claims | 5,531 | 9,894 |
Accrued wages | 9,708 | 7,957 |
Accrued rebates | 6,618 | 6,193 |
Accrued vacation | 5,174 | 5,179 |
Accrued property taxes | 4,484 | 4,796 |
Accrued commissions | 1,464 | 1,772 |
Accrued payroll taxes | 842 | 1,728 |
Post-retirement benefit | 1,244 | 1,273 |
Deferred revenue | 400 | 1,100 |
Other accrued expenses | 1,232 | 2,190 |
Accrued expenses | $58,271 | $42,082 |
Recovered_Sheet1
Long-Term Debt and Capital Lease Obligations (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Revolving credit agreement with banks | $0 | $110,000 |
Debt and Capital Lease Obligations | 40,213 | 160,969 |
Less current maturities of long-term debt and capital leases | 10,799 | 10,757 |
Long-term debt, less current maturities | 29,414 | 150,212 |
Term Loan Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Term loan, accruing interest at 6.12%, maturing in 2016 | 30,000 | 40,000 |
Capital Leases, Due 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Capital lease obligation, imputed interest at 5.53%, due in monthly installments of $112,015, including interest, maturity in 2015 | $10,213 | $10,969 |
Recovered_Sheet2
Long-Term Debt and Capital Lease Obligations (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Term Loan Facility | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, interest rate | 6.12% | 6.12% |
Long-term debt, maturity year | '2016 | '2016 |
Capital Leases, Due 2015 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, interest rate | 5.53% | 5.53% |
Long-term debt, monthly installment | 112,015 | 112,015 |
Long-term debt, maturity year | '2015 | '2015 |
LongTerm_Debt_and_Capital_Leas2
Long-Term Debt and Capital Lease Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Oct. 31, 2013 | Oct. 24, 2013 | Feb. 23, 2011 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 24, 2013 | Feb. 23, 2011 | Dec. 10, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 31, 2013 | Dec. 10, 2013 | |
Term Loan Facility | Term Loan Facility | Construction Loans | Construction Loans | Subsequent Event | Revolving Credit Facility | Revolving Credit Facility | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | Oct. 24, 2013 Through October 30, 2014 | Thereafter October 30, 2014 | Letter of Credit | Letter of Credit | ||||
Minimum | Maximum | Maximum | Maximum | Subsequent Event | ||||||||||||||||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum borrowing capacity | ' | $600,000,000 | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, capital expenditure limitation | ' | 65,000,000 | 55,000,000 | ' | ' | 140,000,000 | 125,000,000 | ' | ' | ' | 65,000,000 | 65,000,000 | 65,000,000 | 65,000,000 | 65,000,000 | 65,000,000 | ' | ' | ' | ' |
Revolving credit facility, permitted carry over of capital expenditure limitation | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, capital expenditure limitation with the permitted carry over | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, maximum debt to total capitalization ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.55 | 0.5 | ' | ' |
Revolving credit facility, right | '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 5% in connection with the construction of either of the two potential new poultry 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. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, expiration date | 24-Oct-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, minimum net worth requirement | 475,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,800,000 | 13,900,000 |
Revolving credit facility, amount available | ' | ' | ' | ' | ' | ' | ' | 586,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 2.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan, unsecured private placement | ' | ' | ' | 30,000,000 | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, maturity | ' | ' | ' | '2016 | '2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, annual principal installments | ' | ' | ' | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, payment start date | ' | ' | ' | '2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage_Ratio_on_which_Spread
Leverage Ratio on which Spread on Libor Borrowings and Commitment Fee for Unused Balance of Revolving Credit Agreement are Determined (Detail) | 12 Months Ended |
Oct. 31, 2013 | |
Scenario 1 | ' |
Line of Credit Facility [Line Items] | ' |
Spread | 0.50% |
Commitment Fee | 0.25% |
Scenario 2 | ' |
Line of Credit Facility [Line Items] | ' |
Spread | 0.75% |
Commitment Fee | 0.30% |
Scenario 3 | ' |
Line of Credit Facility [Line Items] | ' |
Spread | 1.25% |
Commitment Fee | 0.35% |
Scenario 4 | ' |
Line of Credit Facility [Line Items] | ' |
Spread | 1.75% |
Commitment Fee | 0.40% |
Scenario 5 | ' |
Line of Credit Facility [Line Items] | ' |
Spread | 2.25% |
Commitment Fee | 0.50% |
Minimum | Scenario 2 | ' |
Line of Credit Facility [Line Items] | ' |
Leverage Ratio | 25.00% |
Minimum | Scenario 3 | ' |
Line of Credit Facility [Line Items] | ' |
Leverage Ratio | 35.00% |
Minimum | Scenario 4 | ' |
Line of Credit Facility [Line Items] | ' |
Leverage Ratio | 45.00% |
Minimum | Scenario 5 | ' |
Line of Credit Facility [Line Items] | ' |
Leverage Ratio | 55.00% |
Maximum | Scenario 1 | ' |
Line of Credit Facility [Line Items] | ' |
Leverage Ratio | 25.00% |
Maximum | Scenario 2 | ' |
Line of Credit Facility [Line Items] | ' |
Leverage Ratio | 35.00% |
Maximum | Scenario 3 | ' |
Line of Credit Facility [Line Items] | ' |
Leverage Ratio | 45.00% |
Maximum | Scenario 4 | ' |
Line of Credit Facility [Line Items] | ' |
Leverage Ratio | 55.00% |
Annual_Maturities_of_LongTerm_
Annual Maturities of Long-Term Debt and Capital Lease Obligations (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
2014 | $10,799 | ' |
2015 | 19,414 | ' |
2016 | 10,000 | ' |
Debt and Capital Lease Obligations, Total | $40,213 | $160,969 |
Income_Tax_Expense_Benefit_Det
Income Tax Expense Benefit (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Current: | ' | ' | ' |
Federal | $63,923 | $23,641 | ($84,207) |
State | 5,589 | 992 | -4,420 |
Current Income Tax Expense (Benefit), Total | 69,512 | 24,633 | -88,627 |
Deferred: | ' | ' | ' |
Federal | -1,389 | 6,435 | 23,656 |
State | -5,450 | -40 | -11,869 |
Change in valuation allowance | 6,823 | 1,600 | 9,675 |
Deferred income taxes | -16 | 7,995 | 21,462 |
Income tax expense (benefit) | $69,496 | $32,628 | ($67,165) |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Oct. 31, 2013 | Oct. 31, 2012 |
Deferred tax liabilities: | ' | ' |
Property, plant and equipment | $69,942,000 | $66,957,000 |
Prepaid and other assets | 1,765,000 | 1,374,000 |
Total deferred tax liabilities | 71,707,000 | 68,331,000 |
Deferred tax assets: | ' | ' |
Accrued expenses and accounts receivable | 9,187,000 | 7,742,000 |
Inventory | 85,000 | 670,000 |
Compensation on restricted stock | 7,514,000 | 6,523,000 |
State income tax credits | 18,098,000 | 11,275,000 |
Other | 2,310,000 | 769,000 |
Valuation allowance | -18,098,000 | -11,275,000 |
Total deferred tax assets | 19,096,000 | 15,704,000 |
Net deferred tax liabilities | 52,611,000 | 52,627,000 |
Current deferred tax assets | -478,000 | -3,945,000 |
Long-term deferred tax liabilities | 53,089,000 | 56,572,000 |
Net deferred tax liabilities | $52,611,000 | $52,627,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Income Taxes [Line Items] | ' | ' |
Federal statutory rate | 35.00% | ' |
Deferred tax assets, Job Tax Credit | $18,098,000 | $11,275,000 |
Investment tax credit provided by Investing in Business Property Credit | 7.00% | ' |
Recorded gross valuation allowance | 18,098,000 | 11,275,000 |
North Carolina | ' | ' |
Income Taxes [Line Items] | ' | ' |
Deferred tax assets, Job Tax Credit | 13,676,000 | ' |
Georgia | ' | ' |
Income Taxes [Line Items] | ' | ' |
Deferred tax assets, Job Tax Credit | $4,422,000 | ' |
Minimum | ' | ' |
Income Taxes [Line Items] | ' | ' |
Deferred tax assets, North Carolina and Georgia Investing in Business Property Credit and North Carolina Jobs Credits, expiration year | '2017 | ' |
Maximum | ' | ' |
Income Taxes [Line Items] | ' | ' |
Deferred tax assets, North Carolina and Georgia Investing in Business Property Credit and North Carolina Jobs Credits, expiration year | '2023 | ' |
Difference_Between_Consolidate
Difference Between Consolidated Effective Income Tax Rate and Federal Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Reconciliation of Provision of Income Taxes [Line Items] | ' | ' | ' |
Income taxes at statutory rate | $70,040 | $30,300 | ($67,985) |
State income taxes | 4,525 | 1,659 | -4,299 |
Federal manufacturers (deduction) recapture | -6,469 | -2,191 | 5,281 |
Nondeductible expenses | 2,353 | 3,008 | 678 |
Other, net | -238 | -18 | -92 |
Change in valuation allowance | 6,823 | 1,600 | 9,675 |
Income tax expense (benefit) | 69,496 | 32,628 | -67,165 |
State | ' | ' | ' |
Reconciliation of Provision of Income Taxes [Line Items] | ' | ' | ' |
Income tax credits | -6,823 | -1,600 | -9,675 |
Federal | ' | ' | ' |
Reconciliation of Provision of Income Taxes [Line Items] | ' | ' | ' |
Income tax credits | ($715) | ($130) | ($748) |
Earnings_Per_Share_Detail
Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $45,270 | $67,919 | $24,371 | ($6,943) | $9,347 | $28,721 | $23,865 | ($7,989) | $130,617 | $53,944 | ($127,077) |
Distributed and undistributed (earnings) losses to unvested restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | -3,704 | -1,612 | 0 |
Distributed and undistributed earnings (losses) to common shareholders - Basic | ' | ' | ' | ' | ' | ' | ' | ' | $126,913 | $52,332 | ($127,077) |
Weighted average shares outstanding - Basic | ' | ' | ' | ' | ' | ' | ' | ' | 22,363 | 22,280 | 22,130 |
Weighted average shares outstanding - Diluted | ' | ' | ' | ' | ' | ' | ' | ' | 22,363 | 22,282 | 22,130 |
Earnings per common share - Basic | ' | ' | ' | ' | ' | ' | ' | ' | $5.68 | $2.35 | ($5.74) |
Earnings per common share - Diluted | $1.97 | $2.95 | $1.06 | ($0.31) | $0.41 | $1.25 | $1.05 | ($0.36) | $5.68 | $2.35 | ($5.74) |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Line Items] | ' | ' | ' |
Total contributions to the ESOP | $8,400,000 | $3,800,000 | $0 |
401(k) Plan | ' | ' | ' |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Line Items] | ' | ' | ' |
Employee benefit plans, total employer contribution | $5,717,000 | $5,481,000 | $4,992,000 |
401(k) Plan | Up to 3 Percent of Employee Salary | ' | ' | ' |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Line Items] | ' | ' | ' |
Employee benefit plans, employer matching contribution percentage | 100.00% | ' | ' |
401(k) Plan | Between 3% and 5% of Employee Salary | ' | ' | ' |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Line Items] | ' | ' | ' |
Employee benefit plans, employer matching contribution percentage | 50.00% | ' | ' |
Stock_Compensation_Plans_Addit
Stock Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||||||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 | Oct. 31, 2009 | Oct. 31, 2008 | Oct. 31, 2007 | Feb. 17, 2011 | Feb. 17, 2005 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, maximum shares that may be issued | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | 2,250,000 |
Share Purchase Plan, company's matched contributions | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options forfeited, intrinsic value | ' | 32.93 | ' | ' | ' | ' | ' | ' | ' |
Options exercised, shares | ' | 6,000 | 1,500 | ' | ' | ' | ' | ' | ' |
Stock options exercised, intrinsic value | ' | 197,600 | ' | ' | ' | ' | ' | ' | ' |
Management | Retainer and Meeting Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Purchase Plan, percentage compensation received in the form of restricted stock | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Other Participants | Base Salary Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Purchase Plan, percentage compensation received in the form of restricted stock | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Other Participants | Deferred Bonus | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Purchase Plan, percentage compensation received in the form of restricted stock | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Purchase Plan, compensation expense related to the matching contribution | 199,000 | 197,000 | 201,000 | ' | ' | ' | ' | ' | ' |
Restricted Stock Units (RSUs) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, maximum shares that may be issued | ' | ' | ' | ' | ' | ' | ' | 1,562,500 | 562,500 |
Restricted stock awards vested | 87,431 | 81,819 | 35,193 | 96,838 | 9,000 | 21,000 | 0 | ' | ' |
Restricted Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost | 4,487,000 | 4,588,000 | 3,816,000 | ' | ' | ' | ' | ' | ' |
Restricted stock awards vested | 331,281 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares withheld to satisfy tax withholding obligations of recipients | 92,463 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized share-based compensation costs | 6,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized share-based compensation costs weighted average period of recognition | '1 year 6 months | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock | Stock Repurchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, vesting period | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
Share Purchase Plan, shares of restricted stock issued | 14,431 | 16,359 | 21,497 | ' | ' | ' | ' | ' | ' |
Share Purchase Plan, value per share of restricted issued | 57.3 | 48.13 | 43.97 | ' | ' | ' | ' | ' | ' |
Restricted Stock | Stock Repurchase Plan | Employer Matched Contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Purchase Plan, shares of restricted stock issued | 3,514 | 4,005 | 5,277 | ' | ' | ' | ' | ' | ' |
Share Purchase Plan, value per share of restricted issued | 57.3 | 48.13 | 43.97 | ' | ' | ' | ' | ' | ' |
Restricted Stock | Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, vesting period | '3 years | '3 years | '3 years | ' | ' | ' | ' | ' | ' |
Restricted Stock | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, vesting period | '4 years | '4 years | '4 years | ' | ' | ' | ' | ' | ' |
Performance Based Awards | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, maximum shares that may be issued | 98,950 | 95,175 | 86,725 | 70,000 | 60,500 | 67,820 | ' | ' | ' |
Compensation cost | 3,425,000 | 0 | 1,485,000 | 3,190,000 | ' | ' | ' | ' | ' |
Performance share agreements, performance period | '2 years | '2 years | '2 years | ' | ' | ' | ' | ' | ' |
Performance share agreements, additional holding period | '1 year | '1 year | '1 year | ' | ' | ' | ' | ' | ' |
Performance share agreements, percentage of grants made, minimum | 50.00% | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' |
Performance share agreements, percentage of grants made, maximum | 200.00% | 200.00% | 200.00% | ' | ' | ' | ' | ' | ' |
Stock Option | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, vesting period | '4 years | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, common Stock reserved for grant | 2,250,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation plan, term | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted_Stock_Activity_Deta
Restricted Stock Activity (Detail) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended | ||||||
Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 | Oct. 31, 2009 | Oct. 31, 2008 | Oct. 31, 2007 | |
Restricted Stock Units (RSUs) | ' | ' | ' | ' | ' | ' | ' |
Number of Shares | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of period | 588,200 | 566,513 | 492,948 | 479,500 | 409,674 | 388,950 | 379,000 |
Granted during fiscal period | 78,700 | 118,175 | 112,025 | 127,150 | 78,826 | 45,209 | 15,000 |
Vested during period | -87,431 | -81,819 | -35,193 | -96,838 | -9,000 | -21,000 | 0 |
Forfeited during period | -10,844 | -14,669 | -3,267 | -16,864 | 0 | -3,485 | -5,050 |
Outstanding at end of period | 568,625 | 588,200 | 566,513 | 492,948 | 479,500 | 409,674 | 388,950 |
Weighted Average Grant Price | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of period | $43.98 | $42.44 | $41.98 | $41.22 | $41.86 | $42.79 | $43.81 |
Granted during fiscal period | $48.50 | $48.50 | $43.70 | $40.80 | $36.12 | $35 | $33.70 |
Vested during the period | $42.26 | $39.97 | $40.21 | $36.93 | $25.53 | $44.56 | $0 |
Forfeited during the period | $45.30 | $43.32 | $40.10 | $38.99 | $0 | $41.36 | $42.62 |
Outstanding at end of period | $44.85 | $43.98 | $42.44 | $41.98 | $41.22 | $41.86 | $42.79 |
Stock_Option_Activity_and_Rela
Stock Option Activity and Related Information (Detail) (USD $) | 12 Months Ended | |
Oct. 31, 2012 | Oct. 31, 2011 | |
Shares | ' | ' |
Outstanding at beginning of period | 6,001 | 7,501 |
Granted | 0 | 0 |
Exercised | -6,000 | -1,500 |
Forfeited | -1 | 0 |
Outstanding at end of period | 0 | 6,001 |
Weighted-Average Exercise Price | ' | ' |
Outstanding at beginning of period | $12.37 | $12.37 |
Granted | ' | ' |
Exercised | $12.37 | $12.37 |
Forfeited | $12.37 | ' |
Outstanding at end of period | ' | $12.37 |
Other_Matters_Additional_Infor
Other Matters - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Feb. 16, 2012 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Plaintiff | Employee | Property Subject to Operating Lease | Property Subject to Operating Lease | Property Subject to Operating Lease | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' |
Number of employees | ' | 11,271 | ' | ' | ' |
Percentage of employees covered by collective bargaining agreements | ' | 27.70% | ' | ' | ' |
Operating leases, expiration year | ' | ' | '2018 | ' | ' |
Operating leases, rental expense | ' | ' | $7 | $6.80 | $7.70 |
Contractual obligations to purchase for feed grains, feed ingredients, and packaging supplies | ' | $77.20 | ' | ' | ' |
Number of former employees who filed for damage claims against the company and seven current and former employees | 2 | ' | ' | ' | ' |
Minimum_Lease_Payments_of_Obli
Minimum Lease Payments of Obligations Under Non-Cancelable Operating Leases (Detail) (USD $) | Oct. 31, 2013 |
In Millions, unless otherwise specified | |
Minimum lease payments of obligations under non-cancelable operating leases | ' |
2014 | $5.70 |
2015 | 5.5 |
2016 | 3.1 |
2017 | 1.7 |
2018 | 0.8 |
Operating Leases, Future Minimum Payments Due, Total | $16.80 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $727,061 | $738,964 | $621,195 | $595,760 | $648,379 | $624,854 | $595,046 | $517,826 | $2,682,980 | $2,386,105 | $1,978,085 |
Gross profit | 102,124 | 133,946 | 58,962 | 10,893 | 35,832 | 69,614 | 59,145 | 8,822 | ' | ' | ' |
Net income (loss) | $45,270 | $67,919 | $24,371 | ($6,943) | $9,347 | $28,721 | $23,865 | ($7,989) | $130,617 | $53,944 | ($127,077) |
Diluted earnings (loss) per share | $1.97 | $2.95 | $1.06 | ($0.31) | $0.41 | $1.25 | $1.05 | ($0.36) | $5.68 | $2.35 | ($5.74) |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Detail) (Allowance for Doubtful Accounts, USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 | |||
Allowance for Doubtful Accounts | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Period | $1,785 | $1,373 | $1,373 | |||
Charged to Costs and Expenses | 470 | 412 | 0 | |||
Charged to Other Accounts | ' | ' | ' | |||
Deductions Describe | 55 | [1] | 0 | [1] | 0 | [1] |
Balance at End of Period | $2,200 | $1,785 | $1,373 | |||
[1] | Uncollectible accounts written off, net of recoveries |