DERIVATIVES AND HEDGING (Tables)
|
3 Months Ended |
Jan. 29, 2017 |
|---|
| DERIVATIVES AND HEDGING |
|
| Schedule of fair values of derivative instruments |
The fair values of the Company’s derivative instruments (in thousands) as of January 29, 2017, and October 30, 2016, were as follows:
|
|
|
|
|
Fair Value (1)
|
|
|
|
|
Location on
Consolidated
Statements of Financial
Position
|
|
January 29,
2017
|
|
October 30,
2016
|
|
|
Asset Derivatives:
|
|
|
|
|
|
|
|
|
Derivatives Designated as Hedges:
|
|
|
|
|
|
|
|
|
Commodity contracts
|
|
Other current assets
|
|
$
|
(1,832)
|
|
$
|
(194)
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives Not Designated as Hedges:
|
|
|
|
|
|
|
|
|
Commodity contracts
|
|
Other current assets
|
|
1
|
|
144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Asset Derivatives
|
|
|
|
$
|
(1,831)
|
|
$
|
(50)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
| |
Amounts represent the gross fair value of derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its hedging programs, including cash collateral, when a master netting arrangement exists between the Company and the counterparty to the derivative contract. The amount or timing of cash collateral balances may impact the classification of the derivative in the Consolidated Statements of Financial Position. See Note L “Fair Value Measurements” for a discussion of these net amounts as reported in the Consolidated Statements of Financial Position. |
|
| Schedule of gains or losses (before tax) related to derivative instruments |
Gains or losses (before tax, in thousands) related to the Company’s derivative instruments for the three months ended January 29, 2017, and January 24, 2016, were as follows:
|
|
|
Gain/(Loss)
Recognized in
AOCL
(Effective Portion) (1)
|
|
Location on
|
|
Gain/(Loss)
Reclassified from
AOCL into Earnings
(Effective Portion) (1)
|
|
Gain/(Loss)
Recognized in Earnings
(Ineffective
Portion) (2)(4)
|
|
|
|
Three Months Ended
|
|
Consolidated
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Cash Flow Hedges:
|
|
January 29,
2017
|
|
January 24,
2016
|
|
Statements
of Operations
|
|
January 29, 2017
|
|
January 24, 2016
|
|
January 29, 2017
|
|
January 24, 2016
|
|
Commodity contracts
|
|
$
|
(646)
|
|
$
|
(2,848)
|
|
Cost of products sold
|
|
$
|
1,469
|
|
$
|
(767)
|
|
$
|
-
|
|
$
|
1
|
|
|
|
|
|
Location on
|
|
Gain/(Loss)
Recognized in Earnings
(Effective Portion) (3)
|
|
Gain/(Loss)
Recognized in Earnings
(Ineffective
Portion) (2)(5)
|
|
|
|
|
|
Consolidated
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Fair Value Hedges:
|
|
|
|
|
|
Statements
of Operations
|
|
January 29, 2017
|
|
January 24, 2016
|
|
January 29, 2017
|
|
January 24, 2016
|
|
Commodity contracts
|
|
|
|
|
|
Cost of products sold
|
|
$
|
(54)
|
|
$
|
1,242
|
|
$
|
-
|
|
$
|
(252)
|
|
|
|
|
|
Location on
|
|
Gain/(Loss)
Recognized
in Earnings
|
|
|
|
|
|
|
|
Consolidated
|
|
Three Months Ended
|
|
|
|
Derivatives Not
Designated as Hedges:
|
|
|
|
|
|
Statements
of Operations
|
|
January 29, 2017
|
|
January 24, 2016
|
|
|
|
|
|
Commodity contracts
|
|
|
|
|
|
Cost of products sold
|
|
$
|
(228)
|
|
$
|
(480)
|
|
|
|
|
|
(1)
| |
Amounts represent gains or losses in AOCL before tax. See Note I “Accumulated Other Comprehensive Loss” or the Consolidated Statements of Comprehensive Income for the after-tax impact of these gains or losses on net earnings. |
|
(2)
| |
There were no gains or losses excluded from the assessment of hedge effectiveness during the quarter. |
|
(3)
| |
Amounts represent gains on commodity contracts designated as fair value hedges that were closed during the quarter, which were offset by a corresponding loss on the underlying hedged purchase commitment. Additional gains or losses related to changes in the fair value of open commodity contracts, along with the offsetting gain or loss on the hedged purchase commitment, are also marked-to-market through earnings with no impact on a net basis. |
|
(4)
| |
There were no gains or losses resulting from the discontinuance of cash flow hedges during the quarter. |
|
(5)
| |
There were no gains or losses recognized as a result of a hedged firm commitment no longer qualifying as a fair value hedge during the quarter. |
|
| Derivatives not designated as hedges |
|
| DERIVATIVES AND HEDGING |
|
| Schedule of outstanding commodity futures contracts |
|
|
|
Volume
|
|
Commodity
|
|
January 29, 2017
|
|
October 30, 2016
|
|
Corn
|
|
0.1 million bushels
|
|
4.0 million bushels
|
|
Soybean meal
|
|
-
|
|
11,000 tons
|
|
| Cash Flow Hedges |
|
| DERIVATIVES AND HEDGING |
|
| Schedule of outstanding commodity futures contracts |
|
|
|
Volume
|
|
|
Commodity
|
|
January 29, 2017
|
|
October 30, 2016
|
|
|
Corn
|
|
18.3 million bushels
|
|
22.4 million bushels
|
|
|
| Fair Value Hedges |
|
| DERIVATIVES AND HEDGING |
|
| Schedule of outstanding commodity futures contracts |
|
|
|
Volume
|
|
Commodity
|
|
January 29, 2017
|
|
October 30, 2016
|
|
Corn
|
|
3.6 million bushels
|
|
3.6 million bushels
|
|
Lean hogs
|
|
0.2 million cwt
|
|
0.2 million cwt
|
|