10-Q 1 hrl-20230730.htm 10-Q hrl-20230730
0000048465false10/292023Q3P2YP2YP7Y12http://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#InvestmentIncomeNethttp://fasb.org/us-gaap/2023#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2023#PrepaidExpenseAndOtherAssetsCurrent00000484652022-10-312023-07-300000048465us-gaap:CommonStockMember2023-08-27xbrli:shares0000048465us-gaap:NonvotingCommonStockMember2023-08-2700000484652023-05-012023-07-30iso4217:USD00000484652022-05-022022-07-3100000484652021-11-012022-07-31iso4217:USDxbrli:shares00000484652023-07-3000000484652022-10-300000048465us-gaap:NonvotingCommonStockMember2023-07-300000048465us-gaap:NonvotingCommonStockMember2022-10-300000048465us-gaap:CommonStockMember2023-07-300000048465us-gaap:CommonStockMember2022-10-300000048465us-gaap:CommonStockMember2022-05-010000048465us-gaap:TreasuryStockCommonMember2022-05-010000048465us-gaap:AdditionalPaidInCapitalMember2022-05-010000048465us-gaap:RetainedEarningsMember2022-05-010000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-010000048465us-gaap:NoncontrollingInterestMember2022-05-0100000484652022-05-010000048465us-gaap:RetainedEarningsMember2022-05-022022-07-310000048465us-gaap:NoncontrollingInterestMember2022-05-022022-07-310000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-05-022022-07-310000048465us-gaap:AdditionalPaidInCapitalMember2022-05-022022-07-310000048465us-gaap:CommonStockMember2022-05-022022-07-310000048465us-gaap:CommonStockMember2022-07-310000048465us-gaap:TreasuryStockCommonMember2022-07-310000048465us-gaap:AdditionalPaidInCapitalMember2022-07-310000048465us-gaap:RetainedEarningsMember2022-07-310000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-310000048465us-gaap:NoncontrollingInterestMember2022-07-3100000484652022-07-310000048465us-gaap:CommonStockMember2023-04-300000048465us-gaap:TreasuryStockCommonMember2023-04-300000048465us-gaap:AdditionalPaidInCapitalMember2023-04-300000048465us-gaap:RetainedEarningsMember2023-04-300000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-300000048465us-gaap:NoncontrollingInterestMember2023-04-3000000484652023-04-300000048465us-gaap:RetainedEarningsMember2023-05-012023-07-300000048465us-gaap:NoncontrollingInterestMember2023-05-012023-07-300000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-05-012023-07-300000048465us-gaap:AdditionalPaidInCapitalMember2023-05-012023-07-300000048465us-gaap:CommonStockMember2023-05-012023-07-300000048465us-gaap:CommonStockMember2023-07-300000048465us-gaap:TreasuryStockCommonMember2023-07-300000048465us-gaap:AdditionalPaidInCapitalMember2023-07-300000048465us-gaap:RetainedEarningsMember2023-07-300000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-300000048465us-gaap:NoncontrollingInterestMember2023-07-300000048465us-gaap:CommonStockMember2021-10-310000048465us-gaap:TreasuryStockCommonMember2021-10-310000048465us-gaap:AdditionalPaidInCapitalMember2021-10-310000048465us-gaap:RetainedEarningsMember2021-10-310000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-310000048465us-gaap:NoncontrollingInterestMember2021-10-3100000484652021-10-310000048465us-gaap:RetainedEarningsMember2021-11-012022-07-310000048465us-gaap:NoncontrollingInterestMember2021-11-012022-07-310000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-11-012022-07-310000048465us-gaap:CommonStockMember2021-11-012022-07-310000048465us-gaap:AdditionalPaidInCapitalMember2021-11-012022-07-310000048465us-gaap:CommonStockMember2022-10-300000048465us-gaap:TreasuryStockCommonMember2022-10-300000048465us-gaap:AdditionalPaidInCapitalMember2022-10-300000048465us-gaap:RetainedEarningsMember2022-10-300000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-300000048465us-gaap:NoncontrollingInterestMember2022-10-300000048465us-gaap:RetainedEarningsMember2022-10-312023-07-300000048465us-gaap:NoncontrollingInterestMember2022-10-312023-07-300000048465us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-312023-07-300000048465us-gaap:TreasuryStockCommonMember2022-10-312023-07-300000048465us-gaap:CommonStockMember2022-10-312023-07-300000048465us-gaap:AdditionalPaidInCapitalMember2022-10-312023-07-3000000484652022-10-302022-10-30hrl:segment00000484652022-10-312022-10-310000048465hrl:RetailSegmentMember2022-10-300000048465hrl:FoodserviceSegmentMember2022-10-300000048465hrl:InternationalSegmentMember2022-10-300000048465hrl:RetailSegmentMember2022-10-312023-07-300000048465hrl:FoodserviceSegmentMember2022-10-312023-07-300000048465hrl:InternationalSegmentMember2022-10-312023-07-300000048465hrl:RetailSegmentMember2023-07-300000048465hrl:FoodserviceSegmentMember2023-07-300000048465hrl:InternationalSegmentMember2023-07-300000048465hrl:BrandsTrademarksAndTradeNamesMember2023-07-300000048465hrl:BrandsTrademarksAndTradeNamesMember2022-10-300000048465us-gaap:OtherIntangibleAssetsMember2023-07-300000048465us-gaap:OtherIntangibleAssetsMember2022-10-300000048465hrl:CurrencyTranslationMember2023-07-300000048465hrl:CurrencyTranslationMember2022-10-300000048465hrl:CustomerListsOrRelationshipsMember2023-07-300000048465hrl:CustomerListsOrRelationshipsMember2022-10-300000048465us-gaap:OtherIntangibleAssetsMember2023-07-300000048465us-gaap:OtherIntangibleAssetsMember2022-10-300000048465us-gaap:TrademarksAndTradeNamesMember2023-07-300000048465us-gaap:TrademarksAndTradeNamesMember2022-10-300000048465hrl:CurrencyTranslationMember2023-07-300000048465hrl:CurrencyTranslationMember2022-10-300000048465hrl:PTGarudafoodPutraPutriJayaTbkMember2022-12-15xbrli:pure0000048465hrl:PTGarudafoodPutraPutriJayaTbkMember2023-04-120000048465hrl:PTGarudafoodPutraPutriJayaTbkMember2022-12-152022-12-150000048465hrl:PTGarudafoodPutraPutriJayaTbkMember2023-07-300000048465hrl:PTGarudafoodPutraPutriJayaTbkMember2023-07-280000048465hrl:MegaMexFoodsLLCMember2022-07-310000048465hrl:MegaMexFoodsLLCMember2023-07-300000048465hrl:MegaMexFoodsLLCMember2023-05-012023-07-300000048465hrl:MegaMexFoodsLLCMember2022-05-022022-07-310000048465hrl:MegaMexFoodsLLCMember2022-10-312023-07-300000048465hrl:MegaMexFoodsLLCMember2021-11-012022-07-310000048465srt:MinimumMemberhrl:OtherJointVenturesMember2023-07-300000048465srt:MinimumMemberhrl:OtherJointVenturesMember2022-07-310000048465srt:MaximumMemberhrl:OtherJointVenturesMember2022-07-310000048465srt:MaximumMemberhrl:OtherJointVenturesMember2023-07-300000048465hrl:OtherJointVenturesMember2023-05-012023-07-300000048465hrl:OtherJointVenturesMember2022-05-022022-07-310000048465hrl:OtherJointVenturesMember2022-10-312023-07-300000048465hrl:OtherJointVenturesMember2021-11-012022-07-310000048465us-gaap:InvestmentAffiliatedIssuerMember2023-05-012023-07-300000048465us-gaap:InvestmentAffiliatedIssuerMember2022-05-022022-07-310000048465us-gaap:InvestmentAffiliatedIssuerMember2022-10-312023-07-300000048465us-gaap:InvestmentAffiliatedIssuerMember2021-11-012022-07-310000048465hrl:MegaMexFoodsLLCMember2009-10-260000048465hrl:CommodityContractCornMember2022-10-312023-07-300000048465hrl:CommodityContractNaturalGasMember2022-10-312023-07-300000048465us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:TreasuryLockMemberus-gaap:CashFlowHedgingMember2021-04-25hrl:derivative0000048465srt:MinimumMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:TreasuryLockMemberus-gaap:CashFlowHedgingMember2021-04-262021-07-250000048465srt:MaximumMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:TreasuryLockMemberus-gaap:CashFlowHedgingMember2021-04-262021-07-250000048465us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-300000048465us-gaap:CashFlowHedgingMember2022-10-312023-07-300000048465hrl:CommodityContractCornMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-10-312023-07-30utr:bu0000048465hrl:CommodityContractCornMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-10-312023-01-290000048465us-gaap:DesignatedAsHedgingInstrumentMemberhrl:CommodityContractHogsMemberus-gaap:CashFlowHedgingMember2022-10-312023-07-30utr:lb0000048465us-gaap:DesignatedAsHedgingInstrumentMemberhrl:CommodityContractHogsMemberus-gaap:CashFlowHedgingMember2022-10-312023-01-290000048465us-gaap:DesignatedAsHedgingInstrumentMemberhrl:CommodityContractNaturalGasMemberus-gaap:CashFlowHedgingMember2022-10-312023-07-30utr:MMBTU0000048465us-gaap:DesignatedAsHedgingInstrumentMemberhrl:CommodityContractNaturalGasMemberus-gaap:CashFlowHedgingMember2022-10-312023-01-290000048465us-gaap:OtherCurrentAssetsMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-07-300000048465us-gaap:OtherCurrentAssetsMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-10-300000048465us-gaap:FairValueHedgingMemberus-gaap:CommodityContractMemberus-gaap:AccountsPayableMember2023-07-300000048465us-gaap:FairValueHedgingMemberus-gaap:CommodityContractMemberus-gaap:AccountsPayableMember2022-10-300000048465us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMemberhrl:LongTermDebtCurrentMaturitiesMember2023-07-300000048465us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMemberhrl:LongTermDebtCurrentMaturitiesMember2022-10-300000048465us-gaap:FairValueHedgingMemberhrl:LongTermDebtExcludingCurrentMaturitiesMemberus-gaap:InterestRateSwapMember2023-07-300000048465us-gaap:FairValueHedgingMemberhrl:LongTermDebtExcludingCurrentMaturitiesMemberus-gaap:InterestRateSwapMember2022-10-300000048465us-gaap:CommodityContractMember2022-10-312023-07-300000048465us-gaap:InterestRateContractMember2022-10-312023-07-300000048465us-gaap:CostOfSalesMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-05-012023-07-300000048465us-gaap:CostOfSalesMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-05-022022-07-310000048465hrl:CommodityContractCornMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-05-012023-07-300000048465hrl:CommodityContractCornMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-05-022022-07-310000048465us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-05-012023-07-300000048465us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-05-022022-07-310000048465us-gaap:CostOfSalesMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-10-312023-07-300000048465us-gaap:CostOfSalesMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-11-012022-07-310000048465hrl:CommodityContractCornMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-10-312023-07-300000048465hrl:CommodityContractCornMemberus-gaap:CostOfSalesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-11-012022-07-310000048465us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-10-312023-07-300000048465us-gaap:InterestRateContractMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-11-012022-07-310000048465us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2023-05-012023-07-300000048465us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-05-022022-07-310000048465us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-10-312023-07-300000048465us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-11-012022-07-310000048465us-gaap:FairValueHedgingMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-05-012023-07-300000048465us-gaap:FairValueHedgingMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-05-022022-07-310000048465us-gaap:FairValueHedgingMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-10-312023-07-300000048465us-gaap:FairValueHedgingMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-11-012022-07-310000048465us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-05-012023-07-300000048465us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-05-022022-07-310000048465us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-10-312023-07-300000048465us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-11-012022-07-310000048465us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:TreasuryLockMemberus-gaap:CashFlowHedgingMember2023-05-012023-07-300000048465us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:TreasuryLockMemberus-gaap:CashFlowHedgingMember2022-05-022022-07-310000048465us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:TreasuryLockMemberus-gaap:CashFlowHedgingMember2022-10-312023-07-300000048465us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:TreasuryLockMemberus-gaap:CashFlowHedgingMember2021-11-012022-07-310000048465us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-05-012023-07-300000048465us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-05-022022-07-310000048465us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-10-312023-07-300000048465us-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-11-012022-07-310000048465us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-05-012023-07-300000048465us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-05-022022-07-310000048465us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-10-312023-07-300000048465us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-11-012022-07-310000048465hrl:CommodityContractCornMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-01-312022-05-010000048465hrl:CommodityContractHogsMember2022-10-312023-07-300000048465us-gaap:PensionPlansDefinedBenefitMember2023-05-012023-07-300000048465us-gaap:PensionPlansDefinedBenefitMember2022-05-022022-07-310000048465us-gaap:PensionPlansDefinedBenefitMember2022-10-312023-07-300000048465us-gaap:PensionPlansDefinedBenefitMember2021-11-012022-07-310000048465us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-05-012023-07-300000048465us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-05-022022-07-310000048465us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-10-312023-07-300000048465us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-11-012022-07-310000048465us-gaap:AccumulatedTranslationAdjustmentMember2023-04-300000048465us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-04-300000048465us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-04-300000048465hrl:AOCIEquityMethodInvestmentsParentMember2023-04-300000048465us-gaap:AccumulatedTranslationAdjustmentMember2023-05-012023-07-300000048465us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-05-012023-07-300000048465us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-05-012023-07-300000048465hrl:AOCIEquityMethodInvestmentsParentMember2023-05-012023-07-300000048465us-gaap:AccumulatedTranslationAdjustmentMember2023-07-300000048465us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-07-300000048465us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-07-300000048465hrl:AOCIEquityMethodInvestmentsParentMember2023-07-300000048465us-gaap:AccumulatedTranslationAdjustmentMember2022-10-300000048465us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-300000048465us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-10-300000048465hrl:AOCIEquityMethodInvestmentsParentMember2022-10-300000048465us-gaap:AccumulatedTranslationAdjustmentMember2022-10-312023-07-300000048465us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-10-312023-07-300000048465us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-10-312023-07-300000048465hrl:AOCIEquityMethodInvestmentsParentMember2022-10-312023-07-300000048465us-gaap:FairValueMeasurementsRecurringMember2023-07-300000048465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-07-300000048465us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-07-300000048465us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-07-300000048465us-gaap:FairValueMeasurementsRecurringMember2022-10-300000048465us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-10-300000048465us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-10-300000048465us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-10-300000048465us-gaap:TrustForBenefitOfEmployeesMember2023-05-012023-07-300000048465us-gaap:TrustForBenefitOfEmployeesMember2022-10-312023-07-300000048465us-gaap:TrustForBenefitOfEmployeesMember2022-05-022022-07-310000048465us-gaap:TrustForBenefitOfEmployeesMember2021-11-012022-07-310000048465hrl:IsolatedCommercialDisputeWithThirdPartyLitigationMemberus-gaap:UnfavorableRegulatoryActionMemberhrl:AccruedLiabilitiesCurrentMemberus-gaap:SettledLitigationMember2023-07-300000048465hrl:IsolatedCommercialDisputeWithThirdPartyLitigationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:UnfavorableRegulatoryActionMemberus-gaap:SettledLitigationMember2023-05-012023-07-300000048465hrl:IsolatedCommercialDisputeWithThirdPartyLitigationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMemberus-gaap:UnfavorableRegulatoryActionMemberus-gaap:SettledLitigationMember2022-10-312023-07-300000048465hrl:UnsecuredSeniorNotesDueJune2051Memberus-gaap:SeniorNotesMember2023-07-300000048465hrl:UnsecuredSeniorNotesDueJune2051Memberus-gaap:SeniorNotesMember2022-10-300000048465us-gaap:SeniorNotesMemberhrl:UnsecuredSeniorNotesDueJune2030Member2023-07-300000048465us-gaap:SeniorNotesMemberhrl:UnsecuredSeniorNotesDueJune2030Member2022-10-300000048465hrl:UnsecuredSeniorNotesDueJune2028Memberus-gaap:SeniorNotesMember2023-07-300000048465hrl:UnsecuredSeniorNotesDueJune2028Memberus-gaap:SeniorNotesMember2022-10-300000048465us-gaap:SeniorNotesMemberhrl:UnsecuredSeniorNotesDueJune2024Member2023-07-300000048465us-gaap:SeniorNotesMemberhrl:UnsecuredSeniorNotesDueJune2024Member2022-10-300000048465us-gaap:SeniorNotesMember2023-07-300000048465us-gaap:SeniorNotesMember2022-10-300000048465us-gaap:SeniorNotesMemberhrl:UnsecuredSeniorNotesDueJune2024Member2021-06-030000048465hrl:UnsecuredSeniorNotesDueJune2028Memberus-gaap:SeniorNotesMember2021-06-030000048465hrl:UnsecuredSeniorNotesDueJune2051Memberus-gaap:SeniorNotesMember2021-06-030000048465us-gaap:SeniorNotesMemberhrl:UnsecuredSeniorNotesDueJune2024Member2021-06-032021-06-030000048465hrl:UnsecuredSeniorNotesDueJune2028Memberus-gaap:SeniorNotesMember2021-06-032021-06-030000048465hrl:UnsecuredSeniorNotesDueJune2051Memberus-gaap:SeniorNotesMember2021-06-032021-06-030000048465us-gaap:SeniorNotesMemberhrl:UnsecuredSeniorNotesDueJune2030Member2020-06-110000048465us-gaap:SeniorNotesMemberhrl:UnsecuredSeniorNotesDueJune2030Member2020-06-112020-06-110000048465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-05-060000048465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-04-17hrl:extension_option0000048465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-04-172023-04-170000048465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-04-16hrl:interest_period0000048465srt:MinimumMemberus-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-05-062021-05-060000048465us-gaap:BaseRateMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-05-062021-05-060000048465srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:EurodollarMember2021-05-062021-05-060000048465srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberus-gaap:EurodollarMember2021-05-062021-05-060000048465srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-05-062021-05-060000048465srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-05-062021-05-060000048465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-10-300000048465us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2023-07-300000048465hrl:RetailSegmentMember2023-05-012023-07-300000048465hrl:RetailSegmentMember2022-05-022022-07-310000048465hrl:RetailSegmentMember2021-11-012022-07-310000048465hrl:FoodserviceSegmentMember2023-05-012023-07-300000048465hrl:FoodserviceSegmentMember2022-05-022022-07-310000048465hrl:FoodserviceSegmentMember2021-11-012022-07-310000048465hrl:InternationalSegmentMember2023-05-012023-07-300000048465hrl:InternationalSegmentMember2022-05-022022-07-310000048465hrl:InternationalSegmentMember2021-11-012022-07-310000048465us-gaap:OperatingSegmentsMemberhrl:RetailSegmentMember2023-05-012023-07-300000048465us-gaap:OperatingSegmentsMemberhrl:RetailSegmentMember2022-05-022022-07-310000048465us-gaap:OperatingSegmentsMemberhrl:RetailSegmentMember2022-10-312023-07-300000048465us-gaap:OperatingSegmentsMemberhrl:RetailSegmentMember2021-11-012022-07-310000048465us-gaap:OperatingSegmentsMemberhrl:FoodserviceSegmentMember2023-05-012023-07-300000048465us-gaap:OperatingSegmentsMemberhrl:FoodserviceSegmentMember2022-05-022022-07-310000048465us-gaap:OperatingSegmentsMemberhrl:FoodserviceSegmentMember2022-10-312023-07-300000048465us-gaap:OperatingSegmentsMemberhrl:FoodserviceSegmentMember2021-11-012022-07-310000048465us-gaap:OperatingSegmentsMemberhrl:InternationalSegmentMember2023-05-012023-07-300000048465us-gaap:OperatingSegmentsMemberhrl:InternationalSegmentMember2022-05-022022-07-310000048465us-gaap:OperatingSegmentsMemberhrl:InternationalSegmentMember2022-10-312023-07-300000048465us-gaap:OperatingSegmentsMemberhrl:InternationalSegmentMember2021-11-012022-07-310000048465us-gaap:OperatingSegmentsMember2023-05-012023-07-300000048465us-gaap:OperatingSegmentsMember2022-05-022022-07-310000048465us-gaap:OperatingSegmentsMember2022-10-312023-07-300000048465us-gaap:OperatingSegmentsMember2021-11-012022-07-310000048465hrl:PerishableMeatMember2023-05-012023-07-300000048465hrl:PerishableMeatMember2022-05-022022-07-310000048465hrl:PerishableMeatMember2022-10-312023-07-300000048465hrl:PerishableMeatMember2021-11-012022-07-310000048465hrl:ShelfStableMember2023-05-012023-07-300000048465hrl:ShelfStableMember2022-05-022022-07-310000048465hrl:ShelfStableMember2022-10-312023-07-300000048465hrl:ShelfStableMember2021-11-012022-07-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 30, 2023
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________

Commission File Number: 1-2402
HORMEL FOODS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
41-0319970
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

1 Hormel Place, Austin Minnesota
55912-3680
(Address of principal executive offices)(Zip Code)
(507) 437-5611
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock
$0.01465 par value
HRL
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☒ Yes                ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     ☒  Yes                ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
 Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding at August 27, 2023
Common Stock$0.01465par value546,481,141 
Common Stock Non-Voting$0.01par value0 

TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
PART II - OTHER INFORMATION


2
PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share amounts
Unaudited
 Quarter EndedNine Months Ended
 July 30, 2023July 31, 2022July 30, 2023July 31, 2022
Net Sales$2,963,299 $3,034,414 $8,911,930 $9,175,331 
Cost of Products Sold2,465,251 2,528,364 7,426,514 7,577,062 
Gross Profit498,048 506,049 1,485,417 1,598,269 
Selling, General, and Administrative291,073 222,147 725,621 672,777 
Equity in Earnings of Affiliates
9,784 7,138 42,213 19,951 
Operating Income216,759 291,040 802,009 945,443 
Interest and Investment Income9,239 14,411 20,700 20,078 
Interest Expense18,372 15,615 55,042 44,913 
Earnings Before Income Taxes207,626 289,836 767,666 920,608 
Provision for Income Taxes
45,055 71,010 170,230 200,393 
Net Earnings162,571 218,826 597,437 720,215 
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest
(108)(89)(200)112 
Net Earnings Attributable to Hormel Foods Corporation
$162,679 $218,915 $597,637 $720,103 
Net Earnings Per Share
Basic$0.30 $0.40 $1.09 $1.32 
Diluted$0.30 $0.40 $1.09 $1.31 
Weighted-average Shares Outstanding
Basic546,358 546,077 546,389 544,486 
Diluted548,637 550,167 549,227 549,377 
 
See Notes to Consolidated Financial Statements


3
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
In thousands
Unaudited
 Quarter EndedNine Months Ended
 July 30, 2023July 31, 2022July 30, 2023July 31, 2022
Net Earnings$162,571 $218,826 $597,437 $720,215 
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation(10,572)(29,228)27,362 (14,233)
Pension and Other Benefits2,195 2,505 7,368 7,643 
Deferred Hedging2,518 (35,138)(31,058)967 
Equity Method Investments8,733 — 10,141 — 
Total Other Comprehensive Income (Loss)
2,875 (61,861)13,813 (5,623)
Comprehensive Income165,445 156,965 611,250 714,592 
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest
(510)(540)(338)(206)
Comprehensive Income Attributable to Hormel Foods Corporation
$165,955 $157,505 $611,588 $714,798 
 
See Notes to Consolidated Financial Statements


4
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
In thousands, except share and per share amounts
Unaudited
July 30, 2023October 30, 2022
Assets  
Cash and Cash Equivalents$669,124 $982,107 
Short-term Marketable Securities17,423 16,149 
Accounts Receivable (Net of Allowance for Doubtful Accounts of
   $3,561 at July 30, 2023, and $3,507 at October 30, 2022)
786,246 867,593 
Inventories1,737,865 1,716,059 
Taxes Receivable7,498 7,177 
Prepaid Expenses and Other Current Assets36,613 48,041 
Total Current Assets3,254,770 3,637,125 
Goodwill
4,931,590 4,925,829 
Other Intangibles
1,790,761 1,803,027 
Pension Assets
235,943 245,566 
Investments in Affiliates743,474 271,058 
Other Assets
338,741 283,169 
Property, Plant, and Equipment
Land72,648 74,303 
Buildings1,426,048 1,398,255 
Equipment2,717,472 2,636,660 
Construction in Progress216,478 216,246 
Less: Allowance for Depreciation(2,301,168)(2,184,319)
Net Property, Plant, and Equipment2,131,479 2,141,146 
Total Assets$13,426,757 $13,306,919 
 
See Notes to Consolidated Financial Statements


5
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
In thousands, except share and per share amounts
Unaudited
July 30, 2023October 30, 2022
Liabilities and Shareholders' Investment  
Accounts Payable$703,407 $816,604 
Accrued Expenses119,464 58,801 
Accrued Marketing Expenses100,974 113,105 
Employee Related Expenses241,879 279,072 
Interest and Dividends Payable158,335 163,963 
Taxes Payable49,583 32,925 
Current Maturities of Long-term Debt946,981 8,796 
Total Current Liabilities2,320,622 1,473,266 
Long-term Debt Less Current Maturities2,360,380 3,290,549 
Pension and Post-retirement Benefits396,297 385,832 
Deferred Income Taxes467,827 475,212 
Other Long-term Liabilities163,768 141,840 
Shareholders' Investment
Preferred Stock, Par Value $0.01 a Share–
— — 
Authorized 160,000,000 Shares: Issued–None
Common Stock, Non-voting, Par Value $0.01 a Share–
— — 
Authorized 400,000,000 Shares: Issued–None
Common Stock, Par Value $0.01465 a Share–
8,005 8,002 
Authorized 1,600,000,000 Shares:
Shares Issued as of July 30, 2023: 546,466,703
Shares Issued as of October 30, 2022: 546,237,051
Additional Paid-in Capital499,304 469,468 
Accumulated Other Comprehensive Loss(241,610)(255,561)
Retained Earnings7,447,567 7,313,374 
Hormel Foods Corporation Shareholders' Investment7,713,265 7,535,284 
Noncontrolling Interest4,598 4,936 
Total Shareholders' Investment7,717,863 7,540,219 
Total Liabilities and Shareholders' Investment$13,426,757 $13,306,919 
 
See Notes to Consolidated Financial Statements

6
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT
In thousands, except per share amounts
Unaudited
Quarter Ended July 31, 2022
Common
Stock
Treasury
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Non-
controlling
Interest
Total
Shareholders’
Investment
SharesAmountSharesAmount
Balance at May 1, 2022546,053 $8,000 — $— $451,836 $7,100,730 $(221,164)$5,812 $7,345,214 
Net Earnings
218,915 (89)218,826 
Other Comprehensive Income (Loss)
(61,410)(451)(61,861)
Stock-based Compensation Expense
4,566 4,566 
Exercise of Stock Options/Restricted Shares
103 2 2,870 2,872 
Declared Dividends – $0.2600 per Share
(142,668)(142,668)
Balance at July 31, 2022546,156 $8,001 — $— $459,272 $7,176,977 $(282,574)$5,272 $7,366,948 
Quarter Ended July 30, 2023
Common
Stock		Treasury
Stock		Additional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Non-
controlling
Interest		Total
Shareholders’
Investment
SharesAmountSharesAmount
Balance at April 30, 2023546,255 $8,002 — $— $488,100 $7,435,292 $(244,887)$5,108 $7,691,615 
Net Earnings
162,679 (108)162,571 
Other Comprehensive Income (Loss)
3,277 (402)2,875 
Stock-based Compensation Expense
 5,034 5,034 
Exercise of Stock Options/Restricted Shares
212 3 5,931 5,933 
Declared Dividends – $0.2750 per Share
239(150,404)(150,165)
Balance at July 30, 2023546,467 $8,005 — $— $499,304 $7,447,567 $(241,610)$4,598 $7,717,863 

See Notes to Consolidated Financial Statements

7
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ INVESTMENT
In thousands, except per share amounts
Unaudited
Nine Months Ended July 31, 2022
Common
Stock		Treasury
Stock		Additional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Non-
controlling
Interest		Total
Shareholders’
Investment
SharesAmountSharesAmount
Balance at October 31, 2021542,412 $7,946 — $— $360,336 $6,881,870 $(277,269)$5,478 $6,978,360 
Net Earnings720,103 112 720,215 
Other Comprehensive Income (Loss)(5,305)(318)(5,623)
Stock-based Compensation Expense371 20,933 20,933 
Exercise of Stock Options/Restricted Shares3,706 54 78,003 78,058 
Declared Dividends – $0.7800 per Share
(424,996)(424,996)
Balance at July 31, 2022546,156 $8,001 — $— $459,272 $7,176,977 $(282,574)$5,272 $7,366,948 
Nine Months Ended July 30, 2023
Common
Stock		Treasury
Stock		Additional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income (Loss)		Non-
controlling
Interest		Total
Shareholders’
Investment
SharesAmountSharesAmount
Balance at October 30, 2022546,237 $8,002 — $— $469,468 $7,313,374 $(255,561)$4,936 $7,540,219 
Net Earnings597,637 (200)597,437 
Other Comprehensive Income (Loss)13,950 (138)13,813 
Purchases of Common Stock(310)(12,303)(12,303)
Stock-based Compensation Expense44 – 20,946 20,946 
Exercise of Stock Options/Restricted Shares496 7 8,482 8,489 
Shares Retired(310)(5)310 12,303 (277)(12,021)— 
Declared Dividends – $0.8250 per Share
685 (451,423)(450,738)
Balance at July 30, 2023546,467 $8,005 — $— $499,304 $7,447,567 $(241,610)$4,598 $7,717,863 

See Notes to Consolidated Financial Statements


8
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
In thousands
Unaudited
Nine Months Ended
July 30, 2023July 31, 2022
Operating Activities  
Net Earnings$597,437 $720,215 
Adjustments to Reconcile to Net Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization216,432 191,568 
Equity in Earnings of Affiliates(42,213)(19,951)
Distributions Received from Equity Method Investees28,160 30,539 
Provision for Deferred Income Taxes(273)71,427 
Loss (Gain) on Sales of Property, Plant, and Equipment(314)5,098 
Non-cash Investment Activities(12,047)13,610 
Stock-based Compensation Expense20,946 20,933 
Changes in Operating Assets and Liabilities:
Decrease (Increase) in Accounts Receivable81,423 96,674 
Decrease (Increase) in Inventories(20,536)(311,312)
Decrease (Increase) in Prepaid Expenses and Other Assets(52,117)(3,666)
Increase (Decrease) in Pension and Post-retirement Benefits29,571 (6,906)
Increase (Decrease) in Accounts Payable and Accrued Expenses(131,204)(84,384)
Increase (Decrease) in Net Income Taxes Payable13,491 39,312 
Net Cash Provided by (Used in) Operating Activities728,756 763,157 
Investing Activities
Net (Purchase) Sale of Securities(49)1,296 
Purchases of Property, Plant, and Equipment(168,529)(189,184)
Proceeds from Sales of Property, Plant, and Equipment5,306 1,044 
Proceeds from (Purchases of) Affiliates and Other Investments(427,195)8,275 
Proceeds from Company-owned Life Insurance1,980 6,742 
Net Cash Provided by (Used in) Investing Activities(588,489)(171,827)
Financing Activities
Proceeds from Long-term Debt1,980 — 
Repayments of Long-term Debt and Finance Leases(6,584)(6,498)
Dividends Paid on Common Stock(442,560)(415,923)
Share Repurchase(12,303)— 
Proceeds from Exercise of Stock Options8,489 77,958 
Net Cash Provided by (Used in) Financing Activities(450,977)(344,463)
Effect of Exchange Rate Changes on Cash(2,273)(10,054)
Increase (Decrease) in Cash and Cash Equivalents(312,983)236,814 
Cash and Cash Equivalents at Beginning of Year982,107 613,530 
Cash and Cash Equivalents at End of Period$669,124 $850,344 

See Notes to Consolidated Financial Statements

9
HORMEL FOODS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited
 
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis of Presentation: The accompanying unaudited consolidated financial statements of Hormel Foods Corporation (the Company) have been prepared in accordance with accounting principles generally accepted in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include certain information and footnotes required by U.S. generally accepted accounting principles (GAAP) for comprehensive financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results and cash flows for the interim period are not necessarily indicative of the results that may be expected for the full year.

These statements should be reviewed in conjunction with the consolidated financial statements and associated notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 30, 2022. The significant accounting policies used in preparing these interim consolidated financial statements are consistent with those described in Note A - Summary of Significant Accounting Policies to the consolidated financial statements in the Form 10-K. The Company has determined there have been no material changes in the Company’s significant accounting policies, including estimates and assumptions, as disclosed in its Annual Report on Form 10-K for the fiscal year ended October 30, 2022.

Rounding: Certain amounts in the Consolidated Financial Statements and associated notes may not foot due to rounding. All percentages have been calculated using unrounded amounts.

Reclassifications: Certain reclassifications of previously reported amounts have been made to conform to the current year presentation.

Reportable Segments: As of October 30, 2022, the Company had four operating and reportable segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International and Other. At the beginning of fiscal 2023, the Company transitioned to a new strategic operating model, which aligns its businesses to be more agile, consumer and customer focused, and market driven. Effective on October 31, 2022, the Company operates with the following three operating and reportable segments: Retail, Foodservice, and International, which are consistent with how the Company's chief operating decision maker assesses performance and allocates resources. This change had no impact on the consolidated results of operations, financial position, shareholders' investment, or cash flows. Prior period segment results have been retrospectively recast to reflect the new reportable segments.

Accounting Changes and Recent Accounting Pronouncements: Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not relevant to the Company.


NOTE B - GOODWILL AND INTANGIBLE ASSETS

Goodwill: In the first quarter of fiscal 2023, as a result of the organizational changes referenced in Note A - Summary of Significant Accounting Policies, the Company conducted an assessment of its operating segments and reporting units. Based on this analysis, goodwill was reallocated using the relative fair value approach. The change in the carrying amount of goodwill for the nine months ended July 30, 2023, is:
in thousandsRetailFoodserviceInternationalTotal
Balance at October 30, 2022
$2,916,796 $1,750,594 $258,440 $4,925,829 
Foreign Currency Translation— — 5,761 5,761 
Balance at July 30, 2023
$2,916,796 $1,750,594 $264,200 $4,931,590 

Intangible Assets: The carrying amounts for indefinite-lived intangible assets are:
in thousandsJuly 30, 2023October 30, 2022
Brands/Tradenames/Trademarks$1,665,190 $1,665,190 
Other Intangibles184 184 
Foreign Currency Translation(5,380)(6,599)
Total$1,659,994 $1,658,775 

10

The gross carrying amount and accumulated amortization for definite-lived intangible assets are:
 July 30, 2023October 30, 2022
in thousands
Gross Carrying
Amount
Accumulated
Amortization
Gross Carrying
Amount
Accumulated
Amortization
Customer Lists/Relationships$168,239 $(79,450)$168,239 $(69,779)
Other Intangibles59,241 (14,794)59,241 (11,606)
Tradenames/Trademarks6,540 (4,779)10,536 (7,828)
Foreign Currency Translation— (4,229)— (4,551)
Total$234,020 $(103,252)$238,016 $(93,764)
 
Amortization expense is as follows:
 Quarter EndedNine Months Ended
in thousandsJuly 30, 2023July 31, 2022July 30, 2023July 31, 2022
Amortization Expense$4,605 $4,838 $13,806 $14,474 

Estimated annual amortization expense for the five fiscal years after October 30, 2022, is as follows:
in thousandsAmortization Expense
2023$18,320 
202416,331 
202514,628 
202614,172 
202713,940 


NOTE C - INVESTMENTS IN AFFILIATES
 
The Company accounts for its majority-owned operations under the consolidation method. Investments in which the Company owns a minority interest and for which there are no other indicators of control are accounted for under the equity method. These investments, including balances due to or from affiliates, are reflected in the Consolidated Condensed Statements of Financial Position as Investments in Affiliates. Financial results for certain entities are reported on a 30- to 90-day lag. The Company reviewed the investments in affiliates and determined that no other-than-temporary impairment existed as of July 30, 2023.

On December 15, 2022, the Company purchased a 29% common stock interest in PT Garudafood Putra Putri Jaya Tbk (Garudafood), a food and beverage company in Indonesia, from various minority shareholders. On April 12, 2023, the Company purchased additional shares increasing the ownership interest to 30%. This investment expands the Company's presence in Southeast Asia and supports the global execution of the snacking and entertaining strategic priority. The Company has the ability to exercise significant influence, but not control, over Garudafood; therefore, the investment is accounted for under the equity method.

The Company obtained the Garudafood interest for a purchase price of $425.8 million, including associated transaction costs. The transaction was funded using the Company's cash on hand. Based on a third-party valuation, the Company's basis difference between the fair value of the investment and proportionate share of the carrying value of Garudafood's net assets is $324.8 million. The basis difference related to inventory, property, plant and equipment, and certain intangible assets is being amortized through Equity in Earnings of Affiliates over the associated useful lives. As of July 30, 2023, the remaining basis difference was $335.3 million, which includes the impact of foreign currency translation. Based on quoted market prices, the fair value of the common stock held in Garudafood was $348.2 million as of July 28, 2023.


11
Equity in Earnings of Affiliates consists of:
  Quarter EndedNine Months Ended
in thousands% Owned
 
Segment
July 30, 2023July 31, 2022July 30, 2023July 31, 2022
MegaMex Foods, LLC50%Retail$8,099 $4,555 $34,712 $14,562 
Other Joint Ventures
Various (20-50%)
International1,685 2,582 7,501 5,390 
Total$9,784 $7,138 $42,213 $19,951 

Distributions received from equity method investees include:
 Quarter EndedNine Months Ended
in thousandsJuly 30, 2023July 31, 2022July 30, 2023July 31, 2022
Dividends$14,509 $— $28,160 $30,539 

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which $9.5 million is remaining as of July 30, 2023. This difference is being amortized through Equity in Earnings of Affiliates.


NOTE D - INVENTORIES
 
Principal components of inventories are:
in thousandsJuly 30, 2023October 30, 2022
Finished Products$969,749 $974,160 
Raw Materials and Work-in-Process479,371 440,193 
Operating Supplies182,586 206,289 
Maintenance Materials and Parts106,159 95,417 
Total$1,737,865 $1,716,059 


NOTE E - DERIVATIVES AND HEDGING
 
The Company uses hedging programs to manage risk associated with commodity purchases and interest rates. These programs utilize futures, swaps, and options contracts to manage the Company’s exposure to market fluctuations. The Company has determined its designated hedging programs to be highly effective in offsetting the changes in fair value or cash flows generated by the items hedged. Effectiveness testing is performed on a quarterly basis to ascertain a high level of effectiveness for cash flow and fair value hedging programs. If the requirements of hedge accounting are no longer met, hedge accounting is discontinued immediately and any future changes to fair value are recorded directly through earnings.

Cash Flow Commodity Hedges:  The Company designates grain, lean hog, and natural gas futures, swaps, and options contracts used to offset price fluctuations in the Company’s future purchases of these commodities as cash flow hedges. Effective gains or losses related to these cash flow hedges are reported in Accumulated Other Comprehensive Loss (AOCL) and reclassified into earnings, through Cost of Products Sold, in the periods in which the hedged transactions affect earnings. The Company typically does not hedge its grain or natural gas exposure beyond the next two upcoming fiscal years and its lean hog exposure beyond the next fiscal year.

Fair Value Commodity Hedges:  The Company designates the futures it uses to minimize the price risk assumed when fixed forward priced contracts are offered to the Company’s commodity suppliers as fair value hedges. The intent of the program is to make the forward priced commodities cost nearly the same as cash market purchases at the date of delivery. Changes in the fair value of the futures contracts and the gain or loss on the hedged purchase commitment are marked-to-market through earnings and recorded in the Consolidated Condensed Statements of Financial Position as a Current Asset and Current Liability, respectively. Gains or losses related to these fair value hedges are recognized through Cost of Products Sold in the periods in which the hedged transactions affect earnings.

Cash Flow Interest Rate Hedges: In the second quarter of fiscal 2021, the Company designated two separate interest rate locks as cash flow hedges to manage interest rate risk associated with the anticipated debt transactions required to fund the acquisition of the Planters® snack nuts business. The total notional amount of the Company's locks was $1.25 billion. In the third quarter of fiscal 2021, the associated unsecured senior notes were issued with a tenor of seven and thirty years and both locks

12
were lifted (See Note J - Long-Term Debt and Other Borrowing Arrangements). Mark-to-market gains and losses on these instruments were deferred as a component of AOCL. The resulting gain in AOCL is reclassified to Interest Expense in the period in which the hedged transactions affect earnings.

Fair Value Interest Rate Hedge: In the first quarter of fiscal 2022, the Company entered into an interest rate swap to protect against changes in the fair value of a portion of previously issued senior unsecured notes attributable to the change in the benchmark interest rate. The hedge specifically designated the last $450 million of the notes due June 2024 (the 2024 Notes). The Company terminated the swap in the fourth quarter of fiscal 2022. The loss related to the swap was recorded as a fair value hedging adjustment to the hedged debt and will be amortized through earnings over the remaining life of the debt.

Other Derivatives:  The Company holds certain futures and swap contracts to manage the Company's exposure to fluctuations in grain and pork commodity markets. The Company has not applied hedge accounting to these positions. Activity related to derivatives not designated as hedges is immaterial to the consolidated financial statements.

Volume: The Company's outstanding contracts related to its commodity hedging programs include:
 Volume
in millionsJuly 30, 2023October 30, 2022
Corn30.0 bushels34.3 bushels
Lean Hogs151.9 pounds177.5 pounds
Natural Gas2.1 MMBtu— MMBtu

Fair Value of Derivatives:  The fair values of the Company’s derivative instruments designated as hedges are:
  Gross Fair Value
in thousandsLocation on Consolidated Condensed Statements of Financial PositionJuly 30,
2023		October 30,
2022
Commodity Contracts (1)
Other Current Assets$(6,510)$13,504 
(1)    Amounts represent the gross fair value of commodity derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its commodity 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 commodity derivative on the Consolidated Condensed Statements of Financial Position. The gross liability position as of July 30, 2023, includes the right to reclaim net cash collateral of $27.3 million contained within the master netting arrangement. The gross asset position as of October 30, 2022, is offset by the obligation to return net cash collateral of $1.3 million. See Note H - Fair Value Measurements for a discussion of these net amounts as reported on the Consolidated Condensed Statements of Financial Position.
 
Fair Value Hedge - Assets (Liabilities): The carrying amount of the Company's fair value hedged assets (liabilities) are:
Carrying Amount of Hedged
Assets (Liabilities)
in thousandsLocation on Consolidated Condensed Statements of Financial PositionJuly 30,
2023		October 30,
2022
Commodity Contracts
Accounts Payable (1)
$2,664 $5,725 
Interest Rate Contracts
Current Maturities of Long-term Debt (2)
(439,424)— 
Interest Rate ContractsLong-term Debt Less Current Maturities— (430,050)
(1)    Represents the carrying amount of fair value hedged assets and liabilities which are offset by other assets included in master netting arrangements described above.
(2)    Represents the carrying amount of the hedged portion of the 2024 Notes. As of July 30, 2023, the carrying amount of the 2024 Notes included a cumulative fair value hedging adjustment of $10.6 million from discontinued hedges. In the third quarter of fiscal 2023, the 2024 Notes and the fair value hedging adjustment were reclassified from Long-term Debt less Current Maturities to Current Maturities of Long-term Debt on the Consolidated Condensed Statements of Financial Position.

Accumulated Other Comprehensive Loss Impact: As of July 30, 2023, the Company included in AOCL hedging losses (before tax) of $14.3 million on commodity contracts and gains of $12.7 million related to interest rate settled positions. The Company expects to recognize the majority of the losses on commodity contracts over the next twelve months. Gains on interest rate contracts offset the hedged interest payments over the tenor of the associated debt instruments.


13
The effect on AOCL for gains or losses (before tax) related to the Company's derivative instruments are:
 
Gain/(Loss)
Recognized
 in AOCL (1)
Gain/(Loss)
Reclassified from
AOCL into Earnings (1)
Location on
Consolidated
Statements
of Operations
 Quarter EndedQuarter Ended
in thousandsJuly 30, 2023July 31, 2022July 30, 2023July 31, 2022
Cash Flow Hedges
Commodity Contracts$(2,600)$(24,312)$(5,758)$21,216 Cost of Products Sold
Excluded Component (2)
423 (576)— — 
Interest Rate Contracts
— — 247 247 Interest Expense
Gain/(Loss)
Recognized
 in AOCL (1)
Gain/(Loss)
Reclassified from
AOCL into Earnings (1)
Location on
Consolidated
Statements
of Operations
Nine Months EndedNine Months Ended
in thousandsJuly 30, 2023July 31, 2022July 30, 2023July 31, 2022
Cash Flow Hedges
Commodity Contracts$(34,151)$46,299 $5,833 $40,231 Cost of Products Sold
Excluded Component (2)
(268)(4,020)— — 
Interest Rate Contracts
— — 741 741 Interest Expense
(1)    See Note G - Accumulated Other Comprehensive Loss for the after-tax impact of these gains or losses on Net Earnings.
(2)    Represents the time value of corn options excluded from the assessment of effectiveness for which the difference between changes in fair value and periodic amortization is recorded in AOCL.

Consolidated Statements of Operations Impact: The effect on the Consolidated Statements of Operations for gains or losses (before tax) related to the Company's derivative instruments are:
Consolidated Statements of Operations Impact
Quarter EndedNine Months Ended
in thousandsJuly 30, 2023July 31, 2022July 30, 2023July 31, 2022
Net Earnings Attributable to Hormel Foods Corporation$162,679 $218,915 $597,637 $720,103 
Cash Flow Hedges - Commodity Contracts
Gain (Loss) Reclassified from AOCL(5,758)21,216 5,833 38,561 
Amortization of Excluded Component from Options(1,531)(1,145)(4,441)(3,089)
Gain (Loss) Reclassified from AOCL Due to Discontinuance of Cash Flow Hedges (1)
— — — 1,620 
Fair Value Hedges - Commodity Contracts
   Gain (Loss) on Commodity Futures (2)
1,019 (6,758)(440)(20,165)
Total Gain (Loss) on Commodity Contracts (3)
(6,271)13,313 952 16,927 
Cash Flow Hedges - Interest Rate Locks
Gain (Loss) Reclassified from AOCL247 247 741 741 
Fair Value Hedge - Interest Rate Swap
   Gain (Loss) on Interest Rate Swap— (222)— 1,270 
Amortization of Loss Due to Discontinuance of Fair Value Hedge (4)
(3,125)— (9,374)— 
Total Gain (Loss) on Interest Rate Contracts (5)
(2,878)25 (8,633)2,011 
Total Gain (Loss) Recognized in Earnings$(9,148)$13,338 $(7,681)$18,938 


14
(1)    During the second quarter of fiscal 2022, the Company discontinued hedge accounting on 0.6 million bushels of corn usage that was deemed no longer probable to occur. A gain of $1.7 million related to the discontinued hedges and an immaterial loss related to the excluded component from options was reclassified directly into earnings.
(2)    Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the quarter ended July 30, 2023, which were offset by a corresponding gain or 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.
(3)    Total Gain (Loss) on Commodity Contracts is recognized in earnings through Cost of Products Sold.
(4)    Represents the fair value hedging adjustment amortized through earnings.
(5)    Total Gain (Loss) on Interest Rate Contracts is recognized in earnings through Interest Expense.


NOTE F - PENSION AND OTHER POST-RETIREMENT BENEFITS
 
Net periodic benefit cost for pension and other post-retirement benefit plans consists of:
 Pension Benefits
 Quarter EndedNine Months Ended
in thousandsJuly 30, 2023July 31, 2022July 30, 2023July 31, 2022
Service Cost$8,902 $10,019 $26,705 $30,057 
Interest Cost17,157 12,639 51,472 37,919 
Expected Return on Plan Assets(19,571)(27,062)(58,714)(81,186)
Amortization of Prior Service Cost(461)(374)(1,383)(1,122)
Recognized Actuarial (Gain) Loss3,325 3,132 9,976 9,397 
Net Periodic Benefit Cost$9,353 $(1,645)$28,058 $(4,936)

 Post-retirement Benefits
 Quarter EndedNine Months Ended
in thousandsJuly 30, 2023July 31, 2022July 30, 2023July 31, 2022
Service Cost$62 $118 $185 $351 
Interest Cost3,016 1,923 9,044 5,763 
Amortization of Prior Service Cost2 2 6 6 
Recognized Actuarial (Gain) Loss(7)610 (21)1,829 
Net Periodic Benefit Cost$3,073 $2,652 $9,214 $7,950 

Non-service cost components of net pension and post-retirement benefit cost are presented within Interest and Investment Income in the Consolidated Statements of Operations.



15
NOTE G - ACCUMULATED OTHER COMPREHENSIVE LOSS
 
Components of Accumulated Other Comprehensive Loss are as follows:
in thousandsForeign
Currency
Translation		Pension &
Other
Benefits		Derivatives &
 Hedging		Equity
Method
Investments		Accumulated
Other
Comprehensive
Loss
Balance at April 30, 2023$(52,124)$(190,451)$(3,720)$1,408 $(244,887)
Unrecognized Gains (Losses)00
Gross(10,170)39 (2,177)8,733 (3,575)
Tax Effect— — 542 — 542 
Reclassification into Net Earnings0000
Gross— 2,859 
(1)
5,511 
(2)
— 8,371 
Tax Effect— (703)(1,358)— (2,062)
Change Net of Tax(10,170)2,195 2,518 8,733 3,277 
Balance at July 30, 2023
$(62,293)$(188,256)$(1,202)$10,141 $(241,610)
Balance at October 30, 2022
$(89,793)$(195,624)$29,856 $— $(255,561)
Unrecognized Gains (Losses)
Gross27,499 1,166 (34,419)10,141 4,388 
Tax Effect— (266)8,394 — 8,128 
Reclassification into Net Earnings
Gross— 8,578 
(1)
(6,574)
(2)
— 2,004 
Tax Effect— (2,110)1,541 — (570)
Change Net of Tax27,499 7,368 (31,058)10,141 13,950 
Balance at July 30, 2023
$(62,293)$(188,256)$(1,202)$10,141 $(241,610)

(1)    Included in the computation of net periodic benefit cost. See Note F - Pension and Other Post-Retirement Benefits for additional information.
(2)    Included in Cost of Products Sold and Interest Expense in the Consolidated Statements of Operations. See Note E - Derivatives and Hedging for additional information.


NOTE H - FAIR VALUE MEASUREMENTS
 
Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of the three levels below based on the inputs used in the valuation.
 
Level 1:  Observable inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
 
Level 2: Observable inputs, other than those included in Level 1, based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.
 
Level 3:  Unobservable inputs that reflect an entity’s own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.
 

16
The Company’s financial assets and liabilities carried at fair value on a recurring basis and their level within the fair value hierarchy are presented in the tables below.
 Fair Value Measurements at July 30, 2023
in thousands
Total Fair
Value
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents (1)
$669,124 $668,157 $966 $— 
Short-term Marketable Securities (2)
17,423 2,818 14,606 — 
Other Trading Securities (3)
197,065 — 197,065 — 
Commodity Derivatives (4)
11,381 11,558 (176)— 
Total Assets at Fair Value$894,994 $682,533 $212,461 $— 
Liabilities at Fair Value
Deferred Compensation (3)
$60,789 $— $60,789 $— 
Total Liabilities at Fair Value$60,789 $— $60,789 $— 

 Fair Value Measurements at October 30, 2022
in thousands
Total Fair
Value
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets at Fair Value    
Cash and Cash Equivalents (1)
$982,107 $980,730 $1,377 $— 
Short-term Marketable Securities (2)
16,149 8,763 7,386 — 
Other Trading Securities (3)
186,243 — 186,243 — 
Commodity Derivatives (4)
12,448 12,228 220 — 
Total Assets at Fair Value$1,196,947 $1,001,721 $195,226 $— 
Liabilities at Fair Value
Deferred Compensation (3)
$57,790 $— $57,790 $— 
Total Liabilities at Fair Value$57,790 $— $57,790 $— 
 
The following methods and assumptions were used to estimate the fair value of the financial assets and liabilities above:

(1)    The Company’s cash equivalents considered Level 1 consist primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts, and have a maturity date of three months or less. Cash equivalents considered Level 2 are funds holding agency bonds or securities recognized at amortized cost.

(2)    The Company holds securities as part of a portfolio maintained to generate investment income and to provide cash for operations of the Company, if necessary. The portfolio is managed by a third party who is responsible for daily trading activities, and all assets within the portfolio are highly liquid. The cash, U.S. government securities, and money market funds rated AAA held by the portfolio are classified as Level 1. The current investment portfolio also includes corporate bonds and other asset backed securities for which there is an active, quoted market. Market prices are obtained from a variety of industry providers, large financial institutions, and other third-party sources to calculate a representative daily market value, and therefore, these securities are classified as Level 2.

(3)    The Company maintains a rabbi trust to fund certain supplemental executive retirement plans and deferred compensation plans. The majority of the funds held in the rabbi trust relate to supplemental executive retirement plans and have been invested primarily in fixed income funds managed by a third party. The declared rate on these funds is set based on a formula using the yield of the general account investment portfolio supporting the fund as adjusted for expenses and other charges. The rate is guaranteed for one year at issue and may be reset annually on the policy anniversary, subject to a guaranteed minimum rate. As the value is based on adjusted market rates and the fixed rate is only reset on an annual basis, these funds are classified as Level 2.

Under the Company's deferred compensation plans, participants can defer certain types of compensation and elect to receive a return based on the changes in fair value of various investment options which include equity securities, money market accounts, bond funds, or other portfolios for which there is an active quoted market. The Company also offers a fixed rate investment option to participants. The rate earned on these investments is adjusted annually based on a specified percentage of the Internal Revenue Service (IRS) applicable federal rates. These liabilities are classified as Level 2. The Company maintains funding in the rabbi trust generally mirroring the selections within the deferred compensation plans. These funds are managed by a third-party insurance policy, the values of which represent their cash surrender value based on the fair value of the underlying investments in the account. These policies are classified as Level 2.

The rabbi trust is included in Other Assets and deferred compensation liabilities in Other Long-term Liabilities on the Consolidated Condensed Statements of Financial Position. Securities held by the rabbi trust are classified as trading securities. Unrealized gains and losses associated with these investments are

17
included in the Company's earnings. During the quarter and nine months ended July 30, 2023, securities held by the rabbi trust generated gains of $5.1 million and $12.1 million, respectively, compared to losses of $0.1 million and $12.1 million for the quarter and nine months ended July 31, 2022, respectively.

(4)    The Company’s commodity derivatives represent futures, swaps, and options contracts used in its hedging or other programs to offset price fluctuations associated with purchases of corn, natural gas, hogs, and pork, and to minimize the price risk assumed when forward priced contracts are offered to the Company’s commodity suppliers. The Company’s futures and options contracts for corn are traded on the Chicago Board of Trade, while futures contracts for lean hogs are traded on the Chicago Mercantile Exchange. These are active markets with quoted prices available, and these contracts are classified as Level 1. The Company holds natural gas and pork swap contracts that are over-the-counter instruments classified as Level 2. The value of the natural gas swap contracts is calculated using quoted prices from the New York Mercantile Exchange, and the value of the pork swap contracts are calculated using a futures implied USDA estimated pork cut-out value. All derivatives are reviewed for potential credit risk and risk of nonperformance. The net balance for commodity derivatives is included in Other Current Assets or Accounts Payable, as appropriate, in the Consolidated Condensed Statements of Financial Position. As of July 30, 2023, the Company has recognized the right to reclaim net cash collateral of $27.3 million from various counterparties (including cash of $31.1 million less $3.8 million of realized loss). As of October 30, 2022, the Company had recognized the obligation to return net cash collateral of $1.3 million from various counterparties (including cash of $27.5 million less $26.2 million of realized gain).

The Company’s financial assets and liabilities include accounts receivable, accounts payable, and other liabilities, for which carrying value approximates fair value. The Company does not carry its long-term debt at fair value on its Consolidated Condensed Statements of Financial Position. The fair value of long-term debt, utilizing discounted cash flows (Level 2), was $2.8 billion as of July 30, 2023, and $2.7 billion as of October 30, 2022. See Note J - Long-Term Debt and Other Borrowing Arrangements for additional information.

The Company measures certain nonfinancial assets and liabilities at fair value, which are recognized or disclosed on a nonrecurring basis (e.g., goodwill, intangible assets, and property, plant, and equipment). There were no material remeasurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the quarter and nine months ended July 30, 2023, and July 31, 2022.


NOTE I - COMMITMENTS AND CONTINGENCIES

Except as described below, there were no material changes outside the ordinary course of business during the quarter and nine months ended July 30, 2023, to the contractual obligations and other commitments last disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 30, 2022.

On August 15, 2023, the Company received an unexpected, unfavorable arbitration ruling involving an isolated commercial dispute with a third party. The estimated liability of $70.0 million is reflected within Selling, General, and Administrative expense in the Consolidated Statements of Operations for the quarter and nine months ended July 30, 2023, and Accrued Expenses on the Consolidated Condensed Statements of Financial Position as of July 30, 2023. The associated one-time payment is expected to be made in the fourth quarter of fiscal 2023 in accordance with the terms of the arbitrator’s ruling. The adverse arbitration ruling is not subject to further appeal or judicial review.


NOTE J - LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS
Long-term Debt consists of: 
in thousandsJuly 30, 2023October 30, 2022
Senior Unsecured Notes, with Interest at 3.050%
     Interest Due Semi-annually through June 2051 Maturity Date
$600,000 $600,000 
Senior Unsecured Notes, with Interest at 1.800%
     Interest Due Semi-annually through June 2030 Maturity Date
1,000,000 1,000,000 
Senior Unsecured Notes, with Interest at 1.700%
     Interest Due Semi-annually through June 2028 Maturity Date
750,000 750,000 
Senior Unsecured Notes, with Interest at 0.650%
     Interest Due Semi-annually through June 2024 Maturity Date
950,000 950,000 
Unamortized Discount on Senior Notes(7,199)(7,750)
Unamortized Debt Issuance Costs(17,172)(19,856)
Interest Rate Swap Liabilities (1)
(10,576)(19,950)
Finance Lease Liabilities38,211 44,473 
Other Financing Arrangements4,098 2,429 
Total3,307,361 3,299,345 
Less: Current Maturities of Long-term Debt946,981 8,796 
Long-term Debt Less Current Maturities$2,360,380 $3,290,549 
(1)    See Note E - Derivatives and Hedging for additional information.


18
Senior Unsecured Notes: On June 3, 2021, the Company issued $950.0 million aggregate principal amount of its 0.650% notes due 2024 (the 2024 Notes), $750.0 million aggregate principal amount of its 1.700% notes due 2028 (the 2028 Notes), and $600.0 million aggregate principal amount of its 3.050% notes due 2051 (the 2051 Notes). The 2024 Notes may be redeemed in whole or in part one year after their issuance without penalty for early partial payments or full redemption. The 2028 Notes and 2051 Notes may be redeemed in whole or in part at any time at the applicable redemption price. Interest will accrue per annum at the stated rates with interest on the notes being paid semi-annually in arrears on June 3 and December 3 of each year, commencing December 3, 2021. Interest rate risk was hedged utilizing interest rate locks on the 2028 Notes and 2051 Notes. The Company lifted the hedges in conjunction with the issuance of these notes. See Note E - Derivatives and Hedging for additional information. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. During the third quarter of fiscal 2023, the 2024 Notes were reclassified to Current Maturities of Long-term Debt on the Consolidated Condensed Statement of Financial Position.

On June 11, 2020, the Company issued senior notes in an aggregate principal amount of $1.0 billion, due June 11, 2030. The notes bear interest at a fixed rate of 1.800% per annum, with interest paid semi-annually in arrears on June 11 and December 11 of each year, commencing December 11, 2020. The notes may be redeemed in whole or in part at any time at the applicable redemption price set forth in the prospectus supplement. If a change of control triggering event occurs, the Company must offer to purchase the notes at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase.

Unsecured Revolving Credit Facility: On May 6, 2021, the Company entered into an unsecured revolving credit agreement with Wells Fargo Bank, National Association as administrative agent, swingline lender and issuing lender, U.S. Bank National Association, JPMorgan Chase Bank, N.A. and BofA Securities, Inc. as syndication agents and the lenders party thereto. The revolving credit agreement provides for an unsecured revolving credit facility with an aggregate principal commitment amount at any time outstanding of up to $750.0 million with an uncommitted increase option of an additional $375.0 million upon the satisfaction of certain conditions.

On April 17, 2023, the Company entered into a first amendment (Amendment) to the Company’s $750.0 million revolving credit agreement. The Amendment provides for, among other things (i) the replacement of London Interbank Offered Rate (LIBOR) with Term Secured Overnight Financing Rate (SOFR) and Daily Simple Singapore Overnight Rate Average (SORA) for the Eurocurrency Rate for Dollars and Singapore Dollars, including applicable credit sp