INVEST

TRANSFORM
2023 Annual Report

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Dear fellow shareholders: In fiscal 2023, we achieved our second consecutive year of
net sales exceeding $12 billion, continued to reinvest in the growth of our leading brands,
drove strong operating cash flows of $1 billion, returned a record amount of cash to our
shareholders in the form of dividends and achieved the safest year in our Company’s
history. We also made progress in our evolution as a global branded food company,
including the implementation of our new operating model, GoFWD, and the integration
of Jennie-O Turkey Store.

Fiscal 2023 was also a challenging year for the organization • We are increasingly balanced across the channels in
as we navigated an environment that remained volatile, which we compete, including scale in the U.S. retail and
complex and high cost. Regardless, our results did not meet foodservice channels, and through the investments we
our expectations. have made in global markets and emerging channels.

Invest. Transform. Grow. • We are led by an experienced and proven management

We announced at our 2023 Investor Day actions to further team and are now organized for long-term growth,
transform and modernize our organization to better position headlined by our GoFWD reorganization, centralized One
the Company for long-term growth. When combined with Supply Chain and direct-selling teams.
the growth from our current business, we expect to • We are focused on reducing our commodity exposure,
drive operating income growth of $250 million or more staying disciplined in our financial strategy and driving
by fiscal 2026. consistent cash flows to grow our business and return
cash to shareholders.
We have already made significant progress in our evolution
to become a stronger, more balanced and less volatile • We are committed to corporate citizenship, guided by Our
company, and we are embarking on this next era of growth Food Journey™, our 20 By 30 Challenge and our desire
from a position of strength: to support the communities where we live and work.

• We have iconic and diverse brands, with leading Over the next three years, we will be investing in our people,
positions in more than 40 categories at retail,* trusted processes, data and technology, and brands … to transform
and reputable brands in foodservice, and brands and modernize our processes, portfolios and how we create
recognized around the world, including SPAM®, Skippy®, value as a company … to grow our business and the impact
Hormel® Black Label®, Jennie-O® and Planters®. we have on the world.

The Company transitioned to three operating segments — Retail,

Foodservice and International — at the beginning of fiscal 2023. These
segments are supported by Brand Fuel, which houses enterprisewide
brand management expertise, e-commerce capabilities, insights-led
innovation and analytical support; One Supply Chain, the Company’s
centralized supply chain function; and other centers of excellence.

*Circana 52 weeks ending 11/5/2023 – MULO; SPINS 52 weeks ending 11/5/2023.

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 To support these actions, we updated our strategic priorities
to better align with our new business segments and
enterprisewide initiatives.

We must drive focus and growth in our Retail business – our

nearly $8 billion powerhouse of leading brands, talented
people and strong capabilities. Our brands remain a staple in
U.S. homes, and we expect to drive continued growth for our
brands, including SPAM®, Hormel® Black Label®, Planters®,
Jennie-O® and Hormel® pepperoni.

We will continue to expand leadership in Foodservice.

This business emerged from the pandemic stronger,
delivered excellent results again in fiscal 2023 and continues
to outpace industry growth. Our portfolio is designed to
solve for labor pressures and diversify menu offerings. It is
resonating with operators, led by brands such as Hormel®
Bacon 1™, Austin Blues®, Café H®, Hormel® Fire Braised™
and Fontanini®.
Jim Snee
We are aggressively developing our global presence through
Chairman of the Board, President
our legacy export business, multinational businesses in and Chief Executive Officer
China and Brazil, recent investment in Indonesia and through
our partnerships around the world. We are confident that
We are future-fitting our One Supply Chain, which to us
our international teams will resume delivering accelerated
means reducing cost and minimizing complexity, while
growth over the coming years.
investing in long-term growth. Our immediate focus areas are
We must execute our enterprise entertaining and snacking simplifying our portfolios and improving efficiency across all
vision, and we are positioned to win in this space with brands parts of the supply chain.
and products such as Planters®, Corn Nuts®, Hormel®
Finally, we continue to transform and modernize our
pepperoni, Columbus®, Hormel Gatherings® and Skippy®. We
Company, which is a critical piece to our growth over the next
plan to use our leading positions and innovation capabilities
three years. We will be investing in our people, implementing
to drive growth in this important category, especially for
new processes that are best in class, modernizing our
younger and more diverse consumers.
technology solutions, and ensuring the relevancy, profitability

Invest Transform Grow

in people, processes, and modernize processes, net sales, earnings
data and technology, portfolios and how we and the impact we
and brands create value as a company have on the world

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and staying power of our leading brands. Through highly repetitive jobs, and improve employee retention and
transformational work, we expect to build significant satisfaction, as evidenced by a best-in-class automation
capabilities for the future. This is truly exciting work for project at the Faribault, Minn., facility.
the organization!
Lastly, we purchased a minority interest in PT Garudafood
As we look ahead to fiscal 2024, our team continues to Putra Putri Jaya Tbk (Garudafood), one of the largest food
navigate through a dynamic environment characterized and beverage companies in Indonesia. This investment
by slowing consumer demand and persistent inflationary expands our presence in Southeast Asia and supports the
pressures. We expect fiscal 2024 to be a year of investment, global execution of our entertaining and snacking strategy.
as we remain focused on our proven strategies, executing
Senior Leadership and Board Member Changes
our transformation and modernization initiative, fueling our
Fiscal 2023 included a series of leadership appointments
innovation pipeline and exiting the year with momentum in
and advancements to new positions as we better structured
our business segments.
our business. We continue to have an experienced, deep
Capital Management and talented bench of leaders who can drive growth for
We remain committed to dividend growth, investing in our our business, lead change and develop future leaders for
business and maintaining an investment-grade rating. Our the Company.
consistent cash flows and disciplined financial strategy
At the beginning of fiscal year 2023, Henry Hsia was
directly support these commitments.
elevated to vice president of Retail marketing – snacking
In fiscal 2023, we returned a record $593 million in dividends and entertaining. In July 2023, 33-year company veteran
to our shareholders. Fiscal 2024 will represent a remarkable Scott Aakre, who was instrumental in standing up Brand
58th consecutive year of dividend increases. We recently Fuel, was promoted to the newly created role of group vice
announced an increase to our dividend of 3%, for an annual president and chief marketing officer of the Retail business.
dividend of $1.13 per share. Lisa Selk advanced to senior vice president of Brand Fuel
following Scott’s promotion. Natosha Walsh was appointed
We also invested $270 million in capital, led by capacity
vice president of marketing for convenient meals and
expansions to support growth for our retail and foodservice
proteins, replacing Lisa, and Lynn Egner was promoted to
pepperoni, and for the SPAM® family of products. We
vice president of Retail sales – west, following Natosha’s
continued to seek opportunities to automate difficult,
advancement.

Update on Strategic Priorities The Company updated its six strategic priorities to better align with its new business
segments and support earnings growth over the next three years.

Drive focus and growth Execute our enterprise entertaining

in our Retail business & snacking vision
By uniting our leading brands, sales and marketing By unlocking the power of our brands across the
organizations, and Brand Fuel center of excellence. channels in which we compete.

Expand leadership in Future-fit our

Foodservice One Supply Chain
By leveraging our expertise, partnerships and By minimizing complexity, reducing cost and investing
solutions-based portfolio. for growth.

Aggressively develop our Continue to transform &

global presence modernize our Company
By bringing meaningful scale to select global markets. By investing in our people, processes, data and
technology.

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Company recognition We are consistently recognized for our commitment to consumers, team members and the
communities where we live and work.

During the year, Terry Crews retired from our Board of named one of America’s most trustworthy companies and
Directors. Terry served for more than 15 years on our Board, one of America’s greatest workplaces by Newsweek, honored
and we thank him for his valuable contributions during that as a best-for-vets employer for the 11th consecutive year,
time. In March, Ray Young, former vice chairman and chief named to the annual Drucker Institute Management Top 250
financial officer of Archer-Daniels-Midland Company, and List of America’s best-run companies, recognized as one
Mike Zechmeister, chief financial officer of C.H. Robinson of Barron’s Most Sustainable U.S. Companies, ranked as
Worldwide, Inc., were elected to the Board of Directors. Both one of the 50 best companies to sell for by Selling Power
Ray and Mike will be great additions to our exceptional team magazine and named one of Fast Company’s best workplaces
of directors, given their extensive financial and operational for innovators.
experience with some of the most well-known companies in
We are proud of these accolades, our long track record of
the world.
strong corporate citizenship and the progress we are making
Our Food Journey™ and 20 By 30 Challenge** on our aggressive goals to achieve by 2030. I encourage you
Guided by Our Food Journey™, we believe that being a to read our 17th annual Global Impact Report, which has more
successful company means more than just delivering information about our progress in these important areas.
exceptional products to consumers. It means understanding
As we turn the page to fiscal 2024, we have a realistic and
and embracing our global impact — the broader responsibility
achievable path to deliver earnings growth and improve our
we have to the planet and society.
business over the next three years. Achieving our goals is
We again made progress with our 20 By 30 Challenge, expected to return the business to its historical earnings
including: trajectory, supply the fuel necessary to drive future growth
• Matching 100% of our U.S. and 96% of global electricity and support further dividend increases. I remain confident
usage with renewable sources. that we have the right brands, strategy, people and culture
to deliver on this commitment to improve our business and
• Receiving validation for our greenhouse gas (GHG)
drive long-term shareholder returns and growth.
reduction targets by the Science Based Targets initiative.
• Announcing an expansion of our college tuition program To our team members: THANK YOU for all the hard work to
for eligible team members in the U.S. to earn their set us up for future success.
degrees or complete nondegree programs for free. To our shareholders: THANK YOU for your continued trust
• Achieving the safest year in our Company’s history. and support.
• Remaining on track to achieve our goal of providing the
equivalent of 70 million meals to those in need.
• As a convener of local agencies and nonprofit
organizations, the Hometown Food Security Project was James P. Snee
launched in Austin, Minn. Chairman of the Board, President
and Chief Executive Officer
Additionally, we were named to Fortune magazine’s World’s
Most Admired Companies list, recognized as one of America’s
best companies to work for by U.S. News & World Report,

**More information on the 20 By 30 Challenge can be found in the Company’s INVEST

2022 Annual Global Impact Report available online at hormelfoods.com in TRANSFORM
the Responsibility section. GROW
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Retail
Leveraging our leading
consumer brands and scale
in the marketplace

The Retail segment is an almost $8 billion powerhouse of leading brands, talented people and strong
capabilities. Home to many long-established, trusted brands and products — such as SPAM® products,
Hormel® Black Label® bacon, Hormel® pepperoni and Jennie-O® turkey — our large, balanced and
scalable retail portfolio remains relevant and positioned for growth. We are driving focus and growth
in our Retail business by investing in our brands, leading with innovation, and constantly evolving our
portfolio to meet the changing needs of our consumers and our customers.

Aligning with today’s Economic uncertainty Demographic changes

consumers
Many of our brands have emerged
®

from the pandemic stronger and more BRAND

relevant with consumers. Our brands

continue to hold a No. 1 or No. 2 position
in more than 40 categories,1 with
approximately 84% of all households in
the United States purchasing products
sold by Hormel Foods.2 Sustaining the good Holistic well-being

~84% BRAND

U.S. households ®

purchasing Hormel

D
AN
BR

BRAND

Foods retail products2

Standing up Brand Fuel

Our newest center of excellence, Brand
Fuel, is focused on consumer and shopper
insights, data analytics, product innovation
and media strategy. It also houses the
Digital Experience Group, the e-commerce
Insights and and digital content team that supports the
analytics Company’s brands and businesses in the
Digital experience
virtual marketplace. Brand Fuel allows team
Innovation +5%CAGR in advertising
investments since 2019
members with specialized skills to create
solutions benefiting the entire organization.

Source: (1) Circana 52 weeks ending 11/5/2023 – MULO; SPINS 52 weeks ending 11/5/2023; (2) Circana Scan Panel, Total US All Outlet, 52 weeks ending 11/5/2023;
(3) Circana 2023 Snacking Survey; (4) The NPD Group/CREST®, YE Feb. 2022.

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Winning in entertaining and snacking
Snacking is a growing lifestyle in the United States, especially for the younger
generations.3 We are positioned to win in this on-trend category, and are using
our powerful and complementary portfolio of brands to innovate for younger and
more diverse consumers.

®
®

®
BRAND

D
AN
BR

Innovating in global flavors

Through our joint venture with
MegaMex Foods, we are innovating Mexican is the top
in Mexican flavors, with a portfolio of ethnic cuisine in
authentic, high-quality and convenient
items. The Herdez® and Wholly®
the United States
brand teams are expanding beyond with millennials,4
their core products to create dynamic both at and away
innovation pipelines.
from home

Changing the Meat We Eat®

We know consumers are increasingly seeking and
supporting brands that are genuinely advancing
ESG initiatives. Our Applegate® brand remains
an industry leader in natural and organic meats,
offering choice for diverse taste profiles, lifestyles
and eating occasions.

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 Delivering high-quality,

Foodservice innovative culinary

solutions with an
operator-first mentality

Our Foodservice segment is a highly differentiated business focused on delivering innovative solutions
to solve for operator challenges. We have grown our leadership position within foodservice through our
direct sales force, industry expertise, balanced go-to-market strategy, and high-quality and versatile
products. Our portfolio is designed to simplify operations, save time and maximize available labor, all
while providing operators the flexibility they need to create their own unique menu offerings.

Combining brands across

the organization
Through our GoFWD initiative, we
have combined our leading foodservice
brands across the organization to
drive accelerated growth. Our trusted
and well-known portfolio of brands
helps address the needs and
challenges of operators in today’s ®

dynamic environment.
D
AN

BR

Delivering above-industry growth

By aligning with industry trends, operator shifts and
macroeconomic changes, we have consistently outpaced
foodservice industry growth. Our focus on building and
maintaining decadeslong relationships within the industry
has been a key to our success.

Source: (1) NACS State of the Industry 2022.

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 Growing our key categories
We are seen as an industry leader and authority in bacon, pizza toppings, prepared proteins and turkey. We
have robust plans to continue growing in these areas, while further unlocking value and opportunities from
the integration of the Jennie-O Turkey Store foodservice business.
Premium
Bacon Pizza toppings prepared proteins Turkey

Leveraging our
differentiated capabilities
We are structured for long-term
growth, organized as a full-solutions
provider across branded, customized
and distributor label spaces. Our
vision is to continue to outpace
industry growth by delivering value-
added, differentiated products to the
market through the leading sales team
Expanding our c-store presence
in the industry.
With the addition of the Planters® snack nuts business, our team
is focused on expanding our presence in the convenience store Solutions-based portfolio
channel, which will further balance our business in an important, Direct-selling model
growing and relevant industry subsegment. Our products align with
Operator-focused innovation
many key areas of the convenience store, presenting a compelling
and attractive opportunity for future growth.

Key categories in c-stores1

Prepared foods Salty snacks

#1Inside sales contributor #5 Inside sales contributor

®
D
AN

BR

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 Aggressively developing

International our global presence by

bringing meaningful scale
to select global markets

Our ambitions to accelerate growth internationally remain strong. We are continuing to develop our
global presence by: leveraging our global brands, including SPAM®, Skippy® and Hormel®; replicating
our balanced business model in China and Brazil; continuing to grow our partnerships in South Korea,
Europe and the Philippines; and expanding our business into Indonesia and Southeast Asia with our
investment in Garudafood.

Multinational
Exports Partnerships business

Expanding our global entertaining and

snacking presence
Our minority investment in Garudafood is driving the execution of
our entertaining and snacking strategy globally. Garudafood is a
market leader, with strong and reputable brands, local expertise
and a best-in-class distribution network. This investment allows
us to increase our presence in high-growth geographies and in the
snacking and entertaining category.

Growing and expanding in China

For almost 30 years, we have been developing
our presence in China. Today, our team focuses
on four categories: refrigerated meats, canned
foods, condiments, and entertaining and
snacking. We are continuously innovating to
stay relevant with our customers, consumers
and operators to drive retail and foodservice
growth in this important market.

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Enterprise
Investing in transformation
to accelerate growth as a
global branded food company

We have identified a clear, realistic and achievable path to return our business to its historical earnings
trajectory. Guided by our purpose statement — Inspired People. Inspired Food.™ — our focus going
forward is clear: grow our existing businesses, generate value from our investments and execute our
transformation and modernization initiative across the enterprise.

Building on our strengths

As we continue our evolution as a global branded food company, we will lean on our leading brands, balanced business
model, experienced management team, strong financial position and the trust we have earned through our dedication to
corporate citizenship.

Our future
Our present
Our past Accelerating growth
Evolution to a global through transformation
Refined focus branded food company Projected $250M+ in operating
Meat-centric to Stronger, more balanced, income growth by fiscal 2026
protein-centric less volatile

Executing our enterprise strategies

Execute our enterprise Future-fit our Continue to transform &

entertaining & snacking vision One Supply Chain modernize our Company

By unlocking the power of our By minimizing complexity, By investing in our

brands across the channels in which reducing cost and investing people, processes, data
we compete for growth and technology

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Selected financial data

(in thousands, except per-share amounts) 2023 2022 Change % Change

Net Sales $12,110,010 $12,458,806 $ (348,796) (2.8)

Net Earnings Attributable to Hormel Foods Corporation 793,572 999,987 (206,415) (20.6)
Percent of Sales 6.6% 8.0%
Earnings Per Share
Basic $ 1.45 $ 1.84 $ (0.39) (21.2)
Diluted 1.45 1.82 (0.37) (20.3)
Dividends Paid on Common Stock 592,932 557,839 35,093 6.3
Per Share of Common Stock 1.10 1.04 0.06 5.8
Average Common Shares Outstanding
Basic 546,421 544,918 1,503 0.3
Diluted 548,982 549,566 (584) (0.1)
Capital Expenditures $ 270,211 $ 278,918 $ (8,707) (3.1)
Depreciation and Amortization 253,311 235,885 17,426 7.4
Working Capital 985,473 2,163,858 (1,178,385) (54.5)
Hormel Foods Corporation Shareholders' Investment 7,734,885 7,535,284 199,601 2.6

Net sales Diluted earnings per share**

Dollars in billions Dollars per share
3.3% CAGR $12.46 $12.11 4.1% CAGR $1.86 $1.80 $1.82
$11.39 $1.64 $1.66 $1.66
$1.57
$9.32 $9.26 $9.52 $9.17 $9.55 $9.50 $9.61 $1.45
$8.75 $1.27
$1.12
$0.97

13 14 15 16 17 18 19 20 21 22 23 13 14 15 16 17 18 19 20 21 22 23

Operating income* Annual dividends**

Dollars in billions Dollars per share
2.6% CAGR $1.31 $1.28 $1.31 12.5% CAGR $1.10
$1.04
$1.18 $1.20 $0.98
$1.06 $1.10 $1.12 $1.07 $0.93
$0.84
$0.92 $0.75
$0.83 $0.68
$0.58
$0.50
$0.40
$0.34

13 14 15 16 17 18 19 20 21 22 23 13 14 15 16 17 18 19 20 21 22 23

*Fiscal year 2018 and prior years have been adjusted due to the **Per-share figures have been restated to reflect the two-for-
adoption of ASU 2017-07, Compensation – Retirement Benefits: one stock split distributed on Feb. 9, 2016. Fiscal years 2016
Improving the Presentation of Net Periodic Pension Cost and and 2021 included 53 weeks.
Net Periodic Postretirement Benefit Cost (Topic 715).
12
Form 10-K For the fiscal year ended October 29, 2023
 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended October 29, 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)
Registrant’s telephone number, including area code (507) 437-5611
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common Stock $0.01465 par value HRL New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No
☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐
No ☒
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 Regulations 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 has filed a report on and attestation to its management's assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b))
by the registered public accounting firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the
registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-
based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to
§240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

1
The aggregate market value of the voting and nonvoting common stock held by non-affiliates of the registrant as of April 30,
2023, was $11,661,390,985 based on the closing price of $40.44 on the last business day of the registrant’s most recently
completed second fiscal quarter.
As of December 3, 2023, the number of shares outstanding of each of the registrant’s classes of common stock was as follows:
Common Stock, $0.01465 Par Value – 546,840,056 shares
Common Stock Nonvoting, $0.01 Par Value – 0 shares

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held January 30, 2024, are incorporated by
reference into Part III, Items 10-14. The Proxy Statement will be filed with the Securities and Exchange Commission within 120
days after the end of the fiscal year to which this report relates.

HORMEL FOODS CORPORATION

TABLE OF CONTENTS

PART I
Item 1. Business 3
Item 1A. Risk Factors 6
Item 1B. Unresolved Staff Comments 11
Item 2. Properties 12
Item 3. Legal Proceedings 13
Item 4. Mine Safety Disclosures 13

PART II
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity 14
Securities
Item 6. Reserved 15
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 15
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 34
Item 8. Financial Statements and Supplemental Data 35
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 72
Item 9A. Controls and Procedures 72
Item 9B. Other Information 72
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 72

PART III
Item 10. Directors, Executive Officers, and Corporate Governance 72
Item 11. Executive Compensation 73
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 73
Item 13. Certain Relationships and Related Transactions, and Director Independence 73
Item 14. Principal Accountant Fees and Services 73

PART IV
Item 15. Exhibits and Financial Statement Schedules 74
Item 16. Form 10-K Summary 76

SIGNATURES 77

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PART I

Item 1. BUSINESS

General Development of Business

Hormel Foods Corporation, a Delaware corporation (collectively, the "Company", "we," "us," and "our"), was founded by George
A. Hormel in 1891 in Austin, Minnesota, as Geo. A. Hormel & Company. The Company started as a processor of meat and food
products and continues in this line of business with emphasis on the manufacturing and distribution of branded, value-added
consumer items rather than commodity fresh meat products. The Company builds on its founder's legacy of innovation, quality,
and integrity with focus on its purpose statement — Inspired People. Inspired Food.™ Today, the Company is a global branded
food company bringing some of the most trusted and iconic brands to tables across the globe with over $12 billion in annual
revenue in more than 80 countries.

The Company has continually expanded its product portfolio through organic growth and acquisitions. In fiscal 2021, the
Company acquired the Planters® snack nuts business, expanding the Company's presence in the growing snacking space. Refer
to Note B - Acquisitions and Divestitures of the Notes to the Consolidated Financial Statements for additional information. During
fiscal 2023, the Company purchased a 30% common stock interest in PT Garudafood Putra Putri Jaya Tbk (Garudafood), a food
and beverage company in Indonesia, expanding the Company's presence in Southeast Asia and supporting global execution in
the snacking and entertaining category. Refer to Note D - Investments in Affiliates of the Notes to the Consolidated Financial
Statements for additional information.

Description of Business

Segments
Effective in 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. The Company currently operates with the following three operating
and reportable segments: Retail, Foodservice, and International.

Retail
The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in the
retail market. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.

Foodservice
The Foodservice segment consists primarily of the processing, marketing, and sale of food and nutritional products for
foodservice, convenience store, and commercial customers.

International
The International segment processes, markets, and sells Company products internationally. This segment also includes the
results from the Company’s international joint ventures, equity method investments, and royalty arrangements.

Prior period results for fiscal 2022 and 2021 have been recast to reflect the new reportable segments. Net sales to unaffiliated
customers, segment profit, and certain other financial information by segment are reported in Note P - Segment Reporting of the
Notes to the Consolidated Financial Statements and in Management’s Discussion and Analysis of Financial Condition and
Results of Operations.

Products and Distribution

The Company develops, processes, and distributes a wide array of food products in a variety of markets and manufactures its
products through various processing facilities and trusted co-manufacturers. The Company’s products primarily consist of meat,
nuts, and other food products sold across multiple distribution channels, such as U.S. Retail, U.S. Foodservice, and International.

Domestically, the Company sells its products in all 50 states. The Company’s products are sold through its sales personnel, who
operate in assigned territories or in dedicated teams serving major customers and who are coordinated from sales offices
predominately located in major U.S. cities. The Company also utilizes independent brokers and distributors. Products are
primarily distributed by common carrier.

The Company has a global presence within several major international markets, including Australia, Brazil, Canada, China,
England, Indonesia, Japan, Mexico, the Philippines, Singapore, and South Korea. Distribution of export sales to customers is by
common carrier, while the China and Brazil operations own and operate their own delivery systems. The Company has licensed
companies to manufacture various products internationally on a royalty basis, with the primary licensees being Danish Crown UK

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Ltd., and CJ CheilJedang Corporation. The Company also has minority positions in food companies in the Philippines (The
Purefoods-Hormel Company, Inc., 40 percent holding) and Indonesia (Garudafood, 30 percent holding).

Raw Materials
The Company concentrates on the marketing and sale of branded, value-added food products. The principal raw materials used
by the Company include pork, turkey, beef, chicken, and nuts. The Company takes a balanced approach to sourcing pork raw
materials, including hogs purchased for the Austin, Minnesota processing facility, long-term supply agreements for pork, and spot
market purchases of pork. The majority of the turkeys needed to meet raw material requirements are raised by the Company.
Production costs from raising turkeys are subject to fluctuations in grain prices and fuel costs. To manage these risks, the
Company uses futures, swaps, and options contracts to hedge a portion of its anticipated purchases.

The Company also purchases raw materials from various suppliers. As the Company has shifted its focus toward a more value-
added portfolio, it has become increasingly dependent on these suppliers to meet its raw material needs. Certain raw materials,
such as cashews, are sourced internationally, which may cause additional risks to pricing and availability. The Company utilizes
supply contracts and forward buying strategies to ensure an adequate supply and mitigate price fluctuations.

Human Capital
The Company’s employees are the driving force behind innovation, improvement, and success. As of October 29, 2023, the
Company had approximately 20,000 active employees, with over 90 percent located within the U.S. Approximately 20 percent of
employees are covered by collective bargaining agreements.

Talent Acquisition, Development, and Retention

Hormel’s team members are the cornerstone of the Company and of the fulfillment of its purpose — Inspired People.
Inspired Food.™ The Company places great importance on the growth, development, and engagement of its team
members. The Company offers a competitive compensation package and a multitude of benefits, including medical, life and
disability insurance, contributory and non-contributory retirement savings plans, free post-secondary tuition and tuition
reimbursement programs, and two years of tuition-free community and technical college for U.S. employees’ dependent
children.

The Company believes investing in the education, training, and development of employees contributes to the overall
success of the business. The Company provides learning opportunities for employees through various training courses,
including instructor-led internal and external programs and on-the-job training.

The Company considers the tenure of its team members to be an important indicator of overall performance and is proud of
its tenure figures. As of October 29, 2023, approximately 50 percent of the Company's team members had five or more
years of service, and the 34-person officer team had an average of 25 years of service.

Diversity, Equity, and Inclusion

The Company welcomes the diversity of all team members, customers, and consumers, and encourages the integration of
their unique skills, thoughts, experiences, and identities. The Company’s workforce is made up of approximately 40 percent
female and approximately 60 percent underrepresented minorities. The Company’s salaried employees are made up of
approximately 35 percent female and over 20 percent underrepresented minorities. By fostering an inclusive culture, the
Company enables every member of the workforce to leverage unique talents and high performance standards to drive
innovation and success.

Executives of the Company are held accountable for creating an inclusive, diverse workplace through their annual incentive
plan, which includes a component focused on overall belonging scores and the representation of female and
underrepresented minorities in salaried positions.

The Company supports twelve employee resource groups (ERGs) that support the Company’s mission to create a
workplace where all people feel welcomed, respected, and valued. These employee-driven groups play a critical role in
diversity, equity, and inclusion efforts and provide professional development and mentorship opportunities.

Safety, Health, and Wellness

The Company’s dedicated corporate safety department develops and administers company-wide policies to ensure the
safety of each employee and compliance with Occupational Safety and Health Administration standards. The corporate
safety department also conducts regular audits of production facilities to ensure compliance with Company safety policies.
The Company conducts safety training for all team members and completes approximately 1,000 safety assessments each
month.

The Company recognizes that team members perform best when they are healthy, and that optimal performance is
necessary for the Company to achieve its key results. In addition to the health care benefits package, the Company’s
Inspired Health program aims to cultivate and maintain a culture of health and wellness that is focused on encouraging and
empowering team members to make healthy lifestyle choices through awareness, prevention, and positive health behavior

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 changes. This program includes biometric screenings, on-site fitness centers and fitness center discounts, an online health
university with robust information and resources, a tobacco cessation program, wellness challenges, and confidential health
and wellness support.

Governmental Regulation and Environmental Matters

The Company’s operations are subject to regulation by various governmental agencies which oversee areas such as food safety,
workforce immigration, environmental laws, animal welfare, tax regulations, and the processing, packaging, storage, distribution,
advertising, and labeling of the Company’s products. The Company believes it is in compliance with current laws and regulations
and does not expect continued compliance to have a material impact on capital expenditures, earnings, or competitive position.
The Company continues to monitor existing and pending laws and regulations and, while the impact of regulatory changes
cannot be predicted with certainty, the Company does not expect compliance to have a material adverse effect on the
Company's business. In addition to compliance with environmental laws and regulations, the Company sets goals to further
improve its sustainability efforts and reduce its environmental impact. These goals are outlined in the Company’s 20 by 30
Challenge and include matching energy with renewable sourcing, reducing organic waste and greenhouse gas emissions,
supporting regenerative agriculture, focusing on packaging sustainability, and reducing food waste. In addition, the Company's
greenhouse gas reduction targets were validated by the Science Based Targets initiative in 2023.

Significant Customers
The Company serves many customers throughout the world across various sales channels. Sales to the Company’s largest
customer, Walmart Inc. (Walmart), accounted for approximately 15 percent of consolidated gross sales less returns and
allowances during fiscal 2023. Walmart is a customer for the Company's Retail and International segments. The Company’s top
five customers collectively represent approximately 36 percent of consolidated gross sales less returns and allowances. The loss
of one or more of the top customers in any of the reportable segments could have a material adverse effect upon such segment’s
financial results.

Competition
The production and sale of meat and food products in the U.S. and internationally is highly competitive. The Company competes
with manufacturers of pork and turkey products as well as national and regional producers of other meat and protein sources,
such as beef, chicken, fish, nuts, and plant-based proteins.

All operating segments compete on the basis of price, product quality and attributes, brand identification, breadth of product line,
and customer service. Through effective marketing and strong quality assurance programs, the Company’s strategy is to provide
high quality products that possess strong brand recognition, which support higher value perceptions with customers. To grow and
maintain market position, the Company focuses on meeting consumer preferences, delivering product innovation, and
maintaining long-term and lasting relationships with industry partners.

Patents and Trademarks

There are numerous patents and trademarks important to the Company’s business. The Company holds 23 U.S. and eight
foreign patents. Most of the trademarks the Company uses are registered in the U.S. and other countries. Some of the more
significant owned or licensed trademarks used by the Company or its affiliates are:

HORMEL, ALWAYS TENDER, APPLEGATE, AUSTIN BLUES, BACON 1, BLACK LABEL, BREAD READY, BURKE, CAFÉ H,
CERATTI, CHI-CHI’S, COLUMBUS, COMPLEATS, CORN NUTS, CURE 81, DAN’S PRIZE, DI LUSSO, DINTY MOORE, DON
MIGUEL, DOÑA MARIA, EMBASA, FAST ‘N EASY, FIRE BRAISED, FONTANINI, HAPPY LITTLE PLANTS, HERDEZ, HORMEL
GATHERINGS, HORMEL SQUARE TABLE, HORMEL VITAL CUISINE, HOUSE OF TSANG, JENNIE-O, JUSTIN’S, LA
VICTORIA, LAYOUT, LLOYD’S, MARY KITCHEN, MR. PEANUT, NATURAL CHOICE, NUT-RITION, OLD SMOKEHOUSE,
OVEN READY, PILLOW PACK, PLANTERS, ROSA GRANDE, SADLER'S SMOKEHOUSE, SKIPPY, SPAM, SPECIAL RECIPE,
THICK & EASY, VALLEY FRESH, and WHOLLY.

The Company’s patents expire after a term that is typically 20 years from the date of filing, with earlier expiration possible based
on the Company’s decision whether to pay required maintenance fees. As long as the Company continues to use its trademarks,
they are renewed indefinitely.

Available Information
The Company makes available its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 on its
website at www.hormelfoods.com. These reports are accessible under the caption, “Investors – Filings & Reports – SEC Filings”
on the Company’s website and are available as soon as reasonably practicable after such material is electronically filed with or
furnished to the Securities and Exchange Commission (SEC). These filings are also available on the SEC's website at
www.sec.gov. The documents are available in print, free of charge, to any stockholder who requests them.

5
FORWARD-LOOKING STATEMENTS

This report contains “forward-looking” information within the meaning of the federal securities laws. The “forward-looking”
information may include statements concerning the Company’s outlook for the future as well as other statements of beliefs,
future plans, strategies, or anticipated events and similar expressions concerning matters that are not historical facts.

The Private Securities Litigation Reform Act of 1995 (the Reform Act) provides a "safe harbor" for forward-looking statements to
encourage companies to provide prospective information. The Company is filing this cautionary statement in connection with the
Reform Act. When used in the Company’s Annual Report to Stockholders, other filings by the Company with the SEC, the
Company's press releases, and oral statements made by the Company's representatives, the words or phrases "should result,"
"believe," "intend," "plan," "are expected to," "targeted," "will continue," "will approximate," "is anticipated," "estimate," "project,"
or similar expressions are intended to identify forward-looking statements within the meaning of the Reform Act. Such statements
are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those
anticipated or projected.

In connection with the “safe harbor” provisions of the Reform Act, the Company is identifying risk factors that could affect
financial performance and cause the Company’s actual results to differ materially from opinions or statements expressed with
respect to future periods. The following discussion of risk factors contains certain cautionary statements regarding the
Company’s business, which should be considered by investors and others. Such risk factors should be considered in conjunction
with any discussions of operations or results by the Company or its representatives, including any forward-looking discussion, as
well as comments contained in press releases, presentations to securities analysts or investors, or other communications by the
Company.

In making these statements, the Company is not undertaking, and specifically declines to undertake, any obligation to address or
update each or any factor in future filings or communications regarding the Company’s business or results, and is not
undertaking to address how any of these factors may have caused changes to discussions or information contained in previous
filings or communications. Though the Company has attempted to list comprehensively these important cautionary risk factors,
the Company wishes to caution investors and others that other factors may in the future prove to be important in affecting the
Company’s business or results of operations.

The Company cautions readers not to place undue reliance on forward-looking statements, which represent current views as of
the date made. Forward-looking statements are inherently at risk to changes in the national and worldwide economic
environment, which could include, among other things, risks related to the deterioration of economic conditions; risks associated
with acquisitions, joint ventures, equity investments, and divestitures; potential disruption of operations, including at co-
manufacturers, suppliers, logistics providers, customers, or other third-party service providers; failure to realize anticipated cost
savings or operating efficiencies associated with strategic initiatives; risk of loss of a material contract; the Company’s inability to
protect information technology systems against, or effectively respond to, cyber attacks or security breaches; deterioration of
labor relations, labor availability or increases to labor costs; general risks of the food industry, including food contamination;
outbreaks of disease among livestock and poultry flocks; fluctuations in commodity prices and availability of raw materials and
other inputs; fluctuations in market demand for the Company’s products; damage to the Company's reputation or brand image;
climate change, or legal, regulatory, or market measures to address climate change; risks of litigation; potential sanctions and
compliance costs arising from government regulation; compliance with stringent environmental regulations and potential
environmental litigation; and risks arising from the Company’s foreign operations.

Item 1A. RISK FACTORS

Business and Operational Risks

Deterioration of economic conditions could harm the Company’s business. The Company's business may be adversely
affected by changes in national or global economic conditions, including inflation, interest rates, tax rates, availability of capital,
energy availability and costs (including fuel surcharges), political developments, civil unrest, and the effects of governmental
initiatives to manage economic conditions. Decreases in consumer spending rates and shifts in consumer product preferences
could also negatively impact the Company.

Volatility in financial markets and the deterioration of national and global economic conditions could impact the Company’s
operations as follows:
▪ The financial stability of the Company's customers and suppliers may be compromised, which could result in challenges in
collecting accounts receivable or non-performance by suppliers.
▪ Unfavorable economic conditions may lead customers and consumers to delay or reduce purchases of the Company's
products.

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▪ Customer demand for products may not materialize to levels required to achieve the Company's anticipated financial results
or may decline as distributors and retailers seek to reduce inventory positions if there is an economic downturn or economic
uncertainty in key markets.
▪ The value of the Company's investments in debt and equity securities may decline, including most significantly the trading
securities held as part of a rabbi trust to fund supplemental executive retirement plans and deferred income plans and the
Company’s assets held in pension plans.
▪ Future volatility or disruption in the capital and credit markets could impair the Company's liquidity or increase costs of
borrowing.
▪ The Company may be required to redirect cash flow from operations or explore alternative strategies, such as disposing of
assets, to fulfill the payment of principal and interest on its indebtedness.

The Company has no operations in Russia or Ukraine, yet it has experienced inflated fuel costs and supply chain shortages and
delays due to the impact of the military conflict on the global economy. If this conflict, or others such as the Israel-Hamas war,
escalates further, it could result in, among other things, additional supply chain disruptions, rising prices for oil and other
commodities, volatility in capital markets and foreign exchange rates, rising interest rates, or heightened cybersecurity risks, any
of which may adversely affect the Company's business. In addition, the effects of the ongoing conflict could heighten many of the
other risk factors included in Item 1A.

The Company utilizes hedging programs to manage its exposure to various market risks, such as commodity prices and interest
rates, which qualify for hedge accounting for financial reporting purposes. Volatile fluctuations in market conditions could cause
these instruments to become ineffective, which could require any gains or losses associated with these instruments to be
reported in the Company’s earnings each period. These instruments may limit the Company’s ability to benefit from market gains
if commodity prices and/or interest rates become more favorable than those secured under the Company’s hedging programs.

The Company's goodwill and indefinite-lived intangible assets are initially recorded at fair value and are not amortized, but are
reviewed for impairment annually or more frequently if impairment indicators arise. Impairment testing requires judgment around
estimates and assumptions and is impacted by factors such as revenue growth rates, operating margins, tax rates, royalty rates,
and discount rates. An unfavorable change in these factors may lead to the impairment of goodwill and/or intangible assets.
During fiscal 2023, an impairment was indicated for the Justin's® trade name, resulting in an impairment charge of $28.4 million.

Additionally, if a highly pathogenic human disease outbreak developed, such as COVID-19, it may negatively impact the global
economy, demand for Company products, the supply chain, the Company's co-manufacturers, and/or the Company’s workforce
availability including leadership, and the Company’s financial results could suffer. The Company has developed contingency
plans to address infectious disease scenarios and the potential impact on its operations, and will continue to update these plans
as necessary. There can be no assurance given, however, that these plans will be effective in eliminating the negative effects of
any such diseases on the Company’s operating results.

The Company’s operations are subject to the general risks associated with acquisitions, joint ventures, equity
investments, and divestitures. The Company regularly reviews opportunities to support the Company’s strategic initiative of
delivering long-term value to shareholders through acquisitions, joint ventures, and equity investments and to divest non-
strategic assets. The Company has made several acquisitions, joint ventures, equity investments, and divestitures in recent
years, including the acquisition of the Planters® snack nuts business in fiscal 2021 and purchase of a minority interest in
Garudafood in fiscal 2023. Potential risks associated with these transactions include the inability to consummate a transaction
timely or on favorable terms, diversion of management's attention from other business concerns, loss of key employees and
customers of current or acquired companies, inability to integrate or divest operations successfully, assumption of unknown
liabilities, disputes with buyers, sellers, or partners, inability to obtain favorable financing terms, impairment charges if purchase
assumptions are not achieved, and the inherent risks in entering markets or lines of business in which the Company has limited
or no prior experience. Due to the nature of these arrangements, joint ventures and equity investments involve further risks,
including the possibility that the Company is unable to execute business strategies and manage operations given limitations of
the Company's control. Additionally, partners may become bankrupt, make business decisions that are inconsistent with the
Company's goals, or block or delay necessary decisions. Acquisitions, joint ventures, or equity investments outside the U.S. may
also present unique challenges and increase the Company's exposure to the risks associated with foreign operations. Any or all
of these risks could impact the Company’s financial results and business reputation. The Company's level of indebtedness
increased significantly to fund the purchase of the Planters® snack nuts business and may continue to increase to fund future
acquisitions, joint ventures, or equity investments. Higher levels of debt may, among other things, impact the Company's liquidity
and increase the Company's exposure to negative fluctuations in interest rates. During fiscal 2023, an impairment was indicated
for the Justin's® trade name, resulting in an impairment charge of $28.4 million and the Company recorded a $7.0 million
impairment charge related to a corporate venturing investment to recognize a decline in fair value not believed to be temporary.

The Company is subject to disruption of operations at co-manufacturers, suppliers, logistics providers, customers, or
other third-party service providers.
▪ Disruption of operations at co-manufacturers, suppliers, or logistics providers have and may continue to impact the
Company’s product and input supplies as well as the ability to distribute products.

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▪ Disruptions related to significant customers or sales channels has and could continue to result in a reduction in sales or
change in the mix of products sold.
▪ Disruption in services from partners such as third-party service providers used to support various business functions such as
benefit plan administration, payroll processing, information technology and cloud computing services could have an adverse
effect on the Company's business.

Disruptions of third-party providers have had and may continue to have an adverse effect on the Company's financial results.
Actions taken to mitigate the impact of any potential disruption, including increasing inventory in anticipation of a potential
production or supply interruption, may adversely affect the Company’s financial results. Additionally, labor-related challenges
have caused disruptions for many of these providers and may continue to impact the Company's ability to receive inputs or
distribute products.

The Company may not realize the anticipated cost savings or operating efficiencies associated with strategic initiatives.
The Company operates in the highly competitive food industry and is subject to volatile cost inputs. Strategic initiatives are
implemented to achieve a profitable cost structure, operate efficiently, better serve customers, and optimize cash flow. These
initiatives may focus on opportunities to improve the procurement, manufacturing, and logistics within the Company’s supply
chain as well as general and administrative processes. A failure or delay in implementing the improvements associated with
these strategic initiatives could adversely impact the Company’s results, ability to meet its long-term growth expectations, and
ability to fund future initiatives.

The Company began an enterprise transformation and modernization initiative in the second half of fiscal 2023 to provide cost
savings and operating efficiencies by fiscal 2026. If this initiative does not achieve the expected financial impact or is not
completed in a timely manner, the Company’s financial results and ability to meet its long-term growth expectations could be
adversely impacted.

The Company is subject to the loss of a material contract. The Company is a party to several supply, distribution, contract
packaging and other material contracts. The loss of a material contract or failure to obtain new material contracts could adversely
affect the Company’s financial results.

The Company may be adversely impacted if the Company is unable to protect information technology systems against,
or effectively respond to, cyber attacks or security breaches. Information technology systems are an important part of the
Company’s business operations. In addition, the Company increasingly relies upon third-party service providers for a variety of
business functions, including cloud-based services. Cyber incidents are occurring more frequently across U.S. industries and are
being made by groups and individuals with a wide range of motives and expertise. Continued high-profile data security incidents
at other companies evidence an external environment that is becoming increasingly hostile. From time to time, the Company has
experienced, and may experience in the future, breaches of its security measures due to human error, malfeasance, insider
threats, system errors or vulnerabilities or other irregularities, none of which have been material to date. Remote work
arrangements may bring additional information technology and data security risks.

Although the Company has programs in place related to business continuity, disaster recovery, and information security initiatives
to maintain the confidentiality, integrity, and availability of systems, business applications, and customer information, the
Company may not be able to anticipate or implement effective preventive measures against all potential cybersecurity threats,
especially because the techniques used change frequently and because attacks can originate from a wide variety of sources,
both domestic and foreign. Cybersecurity risk is increasingly difficult to identify and quantify and cannot be fully mitigated
because of the rapidly evolving nature of the threats, targets, and consequences.

In addition, the Company is in the midst of multi-year data and technology transformation projects to achieve better analytics,
customer service, and process efficiencies. The projects, including modernizing the order-to-cash process, are expected to
improve the efficiency and effectiveness of certain financial and business transaction processes and the underlying systems
environment. Multiple phases of these projects have already been implemented and additional phases are expected to be
implemented in the upcoming years. These implementations are a major undertaking from a financial, management, and
personnel perspective and may prove to be more difficult, costly, or time consuming than expected, and there can be no
assurance that these projects will be beneficial to the extent anticipated.

Deterioration of labor relations, labor availability or increases in labor costs could harm the Company’s business. As of
October 29, 2023, the Company employed approximately 20,000 people worldwide, of which approximately 20 percent were
represented by labor unions, principally the United Food and Commercial Workers Union. Union contracts at two of the
Company's manufacturing facilities, covering approximately 250 employees, will expire during fiscal 2024. A significant increase
in labor costs or a deterioration of labor relations at any of the Company’s facilities or co-manufacturing facilities resulting in work
slowdowns or stoppages could harm the Company’s financial results. Labor and skilled labor availability challenges could
continue to have an adverse effect on the Company's business.

8
Industry Risks

The Company’s operations are subject to the general risks of the food industry. The food products manufacturing industry
is subject to the risks posed by:
▪ food spoilage;
▪ food contamination caused by disease-producing organisms or pathogens, such as Listeria monocytogenes, Salmonella,
and pathogenic E coli.;
▪ food allergens;
▪ nutritional and health-related concerns;
▪ federal, state, and local food processing controls;
▪ consumer product liability claims;
▪ product tampering; and
▪ the possible unavailability and/or expense of liability insurance.

The pathogens that may cause food contamination are found generally in livestock and in the environment and thus may be
present in the Company's products. These pathogens can also be introduced to products as a result of improper handling by
customers or consumers. The Company does not have control over handling procedures once products have been shipped for
distribution. If one or more of these risks were to materialize, the Company’s brand and business reputation could be negatively
impacted. In addition, revenues could decrease, costs of doing business could increase, and the Company’s operating results
could be adversely affected.

Outbreaks of disease among livestock and poultry flocks could harm the Company’s revenues and operating margins.
The Company is subject to risks associated with the outbreak of disease in pork and beef livestock, and poultry flocks, including
African swine fever (ASF), Bovine Spongiform Encephalopathy (BSE), pneumo-virus, Porcine Circovirus 2 (PCV2), Porcine
Reproduction & Respiratory Syndrome (PRRS), Foot-and-Mouth Disease (FMD), Porcine Epidemic Diarrhea Virus (PEDv), and
Highly Pathogenic Avian Influenza (HPAI). The outbreak of such diseases could adversely affect the Company’s supply of raw
materials, increase the cost of production, reduce utilization of the Company’s harvest facilities, and reduce operating margins.
The impact of global climate change may increase these risks due to changes in weather or migratory patterns which may result
in certain types of diseases occurring more frequently or with more intense effects. Additionally, the outbreak of disease may
hinder the Company’s ability to market and sell products both domestically and internationally.

In recent years, the outbreak of ASF has impacted hog herds in China, Asia, Europe, and the Caribbean. If an outbreak of ASF
were to occur in the U.S., the Company's supply of hogs and pork could be materially impacted.

HPAI was detected within the Company's turkey supply chain during the fourth quarter of fiscal 2023 and first quarter of fiscal
2024. The impact of HPAI has reduced and will continue to reduce production volume in the Company's turkey facilities into fiscal
2024. The Company is continuing to monitor the situation and will take the appropriate actions to protect the health of the turkeys
across the supply chain.

The Company has developed business continuity plans for various disease scenarios and will continue to update these plans as
necessary. There can be no assurance given, however, that these plans will be effective in eliminating the negative effects of any
such diseases on the Company’s operating results.

Fluctuations in commodity prices and availability of raw materials and other inputs could harm the Company’s
earnings. The Company’s results of operations and financial condition are largely dependent upon the cost and supply of pork,
poultry, beef, feed grains, and nuts as well as supplies, energy and other inputs and the selling prices for many of the Company's
products, which are determined by constantly changing market forces of supply and demand.

The Company takes a balanced approach to sourcing pork raw materials, including hogs purchased for the Austin, Minnesota
processing facility, long-term supply agreements for pork, and spot market purchases of pork. This approach ensures a more
stable supply of raw materials while minimizing extreme fluctuations in costs over the long-term. This may result, in the short-
term, in higher or lower live hog costs compared to the cash spot market. Market-based pricing on certain product lines, and lead
time required to implement pricing adjustments, may prevent all or part of these cost increases from being recovered, and these
higher costs could adversely affect the Company's short-term financial results.

The Company raises turkeys and contracts with turkey growers to meet its raw material requirements for whole birds and
processed turkey products. Results in these operations are affected by the cost and supply of feed grains, which fluctuate due to
climate conditions, production forecasts, and supply and demand conditions at local, regional, national, and worldwide markets.
The Company attempts to manage some of its short-term exposure to fluctuations in feed prices by forward buying, using futures
contracts, and pursuing pricing advances. However, these strategies may not be adequate to overcome sustained increases in
market prices due to alternate uses for feed grains or other changes in these market conditions.

9
The Company may be subject to decreased availability or less favorable pricing for nuts, tomatoes, avocados, or other produce if
poor growing conditions have a negative effect on agricultural productivity. Reductions in crop size or quality due to unfavorable
growing conditions may have an adverse effect on the Company’s results.

The supplies of natural and organic proteins may impact the Company’s ability to ensure a continuing supply of these products.
To mitigate this risk, the Company partners with multiple long-term suppliers.

International trade barriers and other restrictions or disruptions could result in decreased foreign demand and increased
domestic supply of proteins, thereby potentially lowering prices. The Company occasionally utilizes in-country production to limit
this exposure.

Market demand for the Company’s products may fluctuate. The Company faces competition from producers of alternative
meats and protein sources, including pork, beef, turkey, chicken, fish, nuts, nut butters, whey, and plant-based proteins. The
factors on which the Company competes include:
▪ price;
▪ product quality and attributes;
▪ brand identification;
▪ breadth of product line; and
▪ customer service.

Demand for the Company’s products is also affected by competitors’ promotional spending, the effectiveness of the Company’s
advertising and marketing programs, and consumer perceptions. Failure to identify and react to changes in food trends such as
sustainability of product sources and animal welfare could lead to, among other things, reduced demand for the Company’s
brands and products. The Company may be unable to compete successfully on any or all of these factors in the future.

Damage to the Company’s reputation or brand image can adversely affect its business. Maintaining and continually
enhancing the perception of the Company’s reputation and brands is critical to business success. The Company’s reputation and
brands have been in the past and could in the future be adversely impacted by a number of factors, including unfavorable
consumer perception related to events or rumors, adverse publicity, and negative information disseminated through social and
digital media. Failure to maintain, extend, and expand the Company’s reputation or brand image could adversely impact
operating results.

Climate change, or legal, regulatory or market measures to address climate change, could have an adverse impact on
the Company’s business and results of operations. There is growing concern that carbon dioxide and other greenhouse
gases in the atmosphere may have an adverse impact on global temperatures, weather patterns, and the frequency and severity
of extreme weather and natural disasters. If such climate change has a negative impact on agricultural productivity, the Company
may have decreased availability or less favorable pricing for the raw materials necessary for its operations. Climate change may
also cause decreased availability or less favorable pricing for water, which could have an adverse effect on the Company’s
operations and supply chain. In addition, natural disasters and extreme weather, including those caused by climate change,
could cause disruptions in the Company’s operations and supply chain.

The increasing concern over climate change may also result in greater local, state, federal, and foreign legal requirements,
including requirements to limit greenhouse gas emissions or conserve water usage. If such requirements are enacted, the
Company could experience significant cost increases in its operations and supply chain.

The Company has developed and publicly announced goals to reduce its impact on the environment such as the 20 by 30
Challenge and the recently announced validation of its greenhouse gas reduction targets by the Science Based Targets initiative.
The Company's ability to achieve these goals is subject to numerous factors and conditions, many of which are outside of its
control. Examples include, among others, evolving regulatory requirements, disclosure frameworks, and methodologies for
reporting data. Failure to accomplish goals set by the Company related to climate change or meet expectations of various
Company stakeholders may cause decreased demand for the Company’s products and have an adverse effect on results of
operations.

Legal and Regulatory Risks

The Company’s operations are subject to the general risks of litigation. The Company is involved on an ongoing basis in
litigation arising in the ordinary course of business. Trends in litigation may include class actions involving employees,
consumers, competitors, suppliers, shareholders, or others, and claims relating to product liability, contract disputes, antitrust
regulations, intellectual property, advertising, labeling, wage and hour laws, employment practices or environmental matters.
Neither litigation trends nor the outcomes of litigation can be predicted with certainty and adverse litigation trends and outcomes
could negatively affect the Company’s financial results.

10
Government regulation, present and future, exposes the Company to potential sanctions and compliance costs that
could adversely affect the Company’s business. The Company’s operations are subject to extensive regulation by the U.S.
Department of Homeland Security, the U.S. Department of Agriculture, the U.S. Food and Drug Administration, federal and state
taxing authorities and other federal, state, and local authorities which oversee workforce immigration, taxation, animal welfare,
food safety, and the processing, packaging, storage, distribution, advertising, and labeling of the Company’s products. The
Company’s manufacturing facilities and products are subject to ongoing inspection by federal, state and local authorities. Claims
or enforcement proceedings could be brought against the Company in the future. The availability of government inspectors due
to a government furlough could also cause disruption to the Company’s manufacturing facilities. Additionally, the Company is
subject to new or modified laws, regulations, and accounting standards. The Company’s failure or inability to comply with such
requirements could subject the Company to civil remedies, including fines, injunctions, recalls or seizures, as well as potential
criminal sanctions. A federal district court ruling has had a negative impact on harvest capacity and labor costs. Harvest facilities
the Company uses are negotiating to resolve the situation and expect to reach a solution, but harvest capacity and labor costs
may continue to be negatively impacted until a solution is reached. There can be no assurance a solution will be reached, in
which case the negative impacts of the ruling would continue.

The Company is subject to stringent environmental regulations and potentially subject to environmental litigation,
proceedings, and investigations. The Company’s past and present business operations and ownership and operation of real
property are subject to stringent federal, state, and local environmental laws and regulations pertaining to the discharge of
materials into the environment and the handling and disposition of wastes (including solid and hazardous wastes) or otherwise
relating to protection of the environment. Compliance with these laws and regulations, as well as any modifications, is material to
the Company’s business. Some of the Company’s facilities have been in operation for many years and, over time, the Company
and other prior operators of these facilities may have generated and disposed of wastes that now may be considered hazardous.
Future discovery of contamination of property underlying or in the vicinity of the Company’s present or former properties or
manufacturing facilities and/or waste disposal sites could require the Company to incur additional expenses related to additional
investigation, assessment or other requirements. The occurrence of any of these events, the implementation of new laws and
regulations or stricter interpretation of existing laws or regulations could adversely affect the Company’s financial results.

The Company’s foreign operations pose additional risks to the Company’s business. The Company operates its business
and markets its products internationally. The Company’s foreign operations are subject to the risks described above, as well as
risks related to fluctuations in currency values, foreign currency exchange controls, compliance with foreign laws, compliance
with applicable U.S. laws, including the Foreign Corrupt Practices Act, and other economic or political uncertainties. International
sales are subject to risks related to general economic conditions, imposition of tariffs, quotas, trade barriers and other
restrictions, enforcement of remedies in foreign jurisdictions and compliance with applicable foreign laws, and other economic
and political uncertainties. All of these risks could result in increased costs or decreased revenues, which could adversely affect
the Company’s financial results.

Item 1B. UNRESOLVED STAFF COMMENTS

None.

11
Item 2. PROPERTIES

The Company's global headquarters are located in Austin, Minnesota. The Company has various processing plants, warehouses
and operational facilities, mainly located in the U.S. The Company maintains a national sales force through strategic placement
of sales offices across the U.S. Properties are also maintained internationally to support global processing and sales. A majority
of the Company's property is owned. Leased property is used as needed for production, distribution, and sales.

The Company believes its operating facilities are well maintained and suitable for current production volumes. The Company
regularly engages in construction and other capital improvement projects with a focus on value-added capacity projects and
automation.

Many of the Company's domestic properties are utilized by more than one segment and utilization of these facilities can change
over time. Therefore, it is impracticable to disclose them by segment. The facilities outside the U.S. serve the International
segment.

Area (1) Warehouse/ Administration/

Square feet, in Production Distribution Sales/Research
thousands Facilities Centers Offices Total Leased Owned
Arizona — — 2 2 2 —
Arkansas 589 — 9 598 9 589
California 323 428 54 805 656 149
Colorado 829 — 10 839 10 829
Florida — — 5 5 5 —
Georgia 259 — — 259 — 259
Illinois 738 — 22 760 22 738
Iowa 1,482 658 3 2,143 283 1,860
Kansas 312 — 3 315 3 312
Massachusetts — — 4 4 4 —
Michigan — — 3 3 3 —
Minnesota 3,761 219 554 4,534 89 4,445
Nebraska 845 — — 845 — 845
New Jersey — — 29 29 29 —
North Carolina — — 3 3 3 —
Ohio — 453 8 461 322 139
Pennsylvania 13 348 9 370 357 13
Texas 285 — 2 287 2 285
Utah — 209 — 209 209 —
Virginia 625 — — 625 — 625
Washington — — 2 2 2 —
Wisconsin 1,227 102 3 1,332 107 1,225
Total Domestic 11,288 2,417 725 14,430 2,117 12,313
Australia — — 2 2 2 —
Brazil 440 — 3 443 440 3
China 842 33 26 901 2 899
Total International 1,282 33 31 1,346 444 902
Total Square Feet 12,570 2,450 756 15,776 2,561 13,215
(1)
Turkey growout facilities are excluded.

12
Item 3. LEGAL PROCEEDINGS

On August 15, 2023, the Company received an unexpected, unfavorable arbitration ruling involving an isolated commercial
dispute with a third party. Pursuant to the ruling, the arbitrator awarded $59.6 million in damages, plus prejudgment interest of
$5.3 million and attorneys’ fees, to the counterparty payable by the Company. The pre-tax impact of the adverse arbitration ruling
of $68.3 million is reflected in Selling, General, and Administrative expenses in the Consolidated Statements of Operations for
fiscal 2023. The arbitration award amount was paid in full by the Company in the fourth quarter of fiscal 2023. The adverse
arbitration ruling is not subject to further appeal or judicial review. Standard confidentiality provisions in the arbitration rules
prohibit the Company from commenting on the substance of the ruling.

Information regarding other legal proceedings is available in Note J - Commitments and Contingencies of the Notes to the
Consolidated Financial Statements.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

Information About Executive Officers

CURRENT OFFICE AND PREVIOUS
NAME AGE FIVE YEARS EXPERIENCE DATES
James P. Snee 56 Chairman of the Board, President and Chief Executive Officer 11/20/17 to Present
Jacinth C. Smiley 55 Executive Vice President and Chief Financial Officer 01/01/22 to Present
Group Vice President (Corporate Strategy) 04/05/21 to 12/31/21
Vice President and Chief Accounting Officer, LyondellBasell 04/01/18 to 04/04/21
Deanna T. Brady 58 Executive Vice President (Retail) 10/31/22 to Present
Executive Vice President (Refrigerated Foods) 10/28/19 to 10/30/22
Group Vice President/President Consumer Product Sales 10/26/15 to 10/27/19
Mark A. Coffey 61 Group Vice President (Supply Chain) 04/26/21 to Present
Senior Vice President (Supply Chain and Manufacturing) 03/28/17 to 04/25/21
Swen Neufeldt 50 Group Vice President (Hormel Foods International Corporation) 06/29/20 to Present
Vice President (Meat Products) 10/31/16 to 06/28/20
Mark J. Ourada 58 Group Vice President (Foodservice) 03/05/18 to Present
Katherine M. Losness- 58 Senior Vice President (Human Resources) 10/31/22 to Present
Larson Director of Human Resources 10/29/18 to 10/30/22
Pierre M. Lilly 52 Senior Vice President and Chief Compliance Officer 10/26/20 to Present
Director of Internal Audit 05/30/16 to 10/25/20
Kevin L. Myers, Ph.D. 58 Senior Vice President (Research and Development, Quality Control) 03/30/15 to Present
Paul R. Kuehneman 52 Vice President and Controller 02/18/22 to Present
Assistant Controller 01/04/21 to 02/17/22
Vice President and CFO (Jennie-O Turkey Store) 05/30/16 to 01/03/21

No family relationship exists among the executive officers.

Executive officers are designated annually by the Board of Directors at the first meeting following the Annual Meeting of
Stockholders. Vacancies may be filled and additional officers elected at any time. The Company's Chief Executive Officer has the
authority to appoint and remove Vice Presidents (other than Executive Vice Presidents, Group Vice Presidents, and Senior Vice
Presidents).

13
PART II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER

MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information
Hormel Foods Corporation’s common stock is traded on the New York Stock Exchange under the symbol HRL. The CUSIP
number is 440452100.

Holders
There are approximately 10,000 record stockholders and 270,000 stockholders whose shares are held in street name by
brokerage firms and financial institutions.

There were no issuer purchases of equity securities in the quarter ended October 29, 2023. On January 29, 2013, the
Company's Board of Directors authorized the repurchase of 10,000,000 shares of its common stock with no expiration date. On
January 26, 2016, the Board of Directors approved a two-for-one split of the Company’s common stock to be effective January
27, 2016. As part of the stock split resolution, the number of shares remaining to be repurchased was adjusted proportionately.
The maximum number of shares that may yet be purchased under the repurchase plans or programs as of October 29, 2023 is
3,677,494.

Dividends
The Company has paid dividends for 381 consecutive quarters. The annual dividend rate for fiscal 2024 will increase to $1.13
per share, representing the 58th consecutive annual dividend increase. The Company is dedicated to returning excess cash flow
to shareholders through dividend payments.

Shareholder Return Performance Graph

The following graph shows a comparison of cumulative total shareholder return, calculated on a dividend-reinvested basis, for
the Company, the S&P 500 Index, and the S&P 500 Packaged Foods & Meats Index for the five years ended October 29, 2023.
The graph assumes $100 was invested in each as of the market close on October 29, 2018. Note that historic stock price
performance is not necessarily indicative of future stock price performance.

Comparison of 5-year Cumulative Total Return

$200

$150

$100

$50

$0
10/29/18 10/28/19 10/26/20 11/01/21 10/28/22 10/27/23

Hormel Foods Corporation S&P 500 S&P 500 Packaged Foods & Meats

14
Item 6. RESERVED

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Executive Overview

Fiscal 2023: The Company achieved its second consecutive year of net sales in excess of $12 billion in fiscal 2023. Net sales
were $12.1 billion, declining 3 percent compared to the prior year, as the benefit from pricing actions to mitigate inflationary
pressures was more than offset by the impact of lower volumes in the Retail and International segments and lower net pricing in
certain categories, such as bacon, reflecting raw material commodity deflation. Volume declined for the full year, primarily due to
declines in commodity pork availability as a result of the Company's new pork supply agreement and lower turkey supply in the
first half of the year due to the impacts of HPAI. Segment profit declined 11 percent, as higher results in the Foodservice segment
were more than offset by significantly lower results in the Retail and International segments. Net earnings declined 21 percent
due to lower segment profit and the pre-tax impact of an adverse arbitration ruling of $68.3 million. Adjusted net earnings(1) —
excluding the impact of the adverse arbitration ruling, non-cash impairment charges, and costs associated with the Company's
transformation and modernization initiative — declined 12 percent. Diluted net earnings per share and adjusted diluted net
earnings per share(1) for fiscal 2023 were $1.45 and $1.61, respectively, compared to $1.82 last year.

Segment profit for the Foodservice segment increased due to improved mix across the portfolio. Retail segment profit declined
significantly for the full year, driven primarily by lower volumes, unfavorable mix, and higher operating expenses, partially offset
by the benefit from pricing actions across the portfolio and higher equity in earnings from MegaMex Foods, LLC (MegaMex
Foods). International segment profit declined due to lower sales in China and lower turkey commodity sales.

The Company again reinvested into the business through capital expenditures and returned a record amount of cash to
shareholders in the form of dividends. Capital expenditures in fiscal 2023 were $270 million, including investments in new
production capabilities for retail and foodservice pepperoni and an expansion for the SPAM® family of products. The Company
continues to prioritize investments in growth, innovation, cost savings, automation, and maintenance. The annual dividend for
2024 will be $1.13 per share, representing an increase of 3 percent and marking the 58th consecutive year of dividend
increases.

During fiscal 2023, the Company purchased a 30% common stock interest in Garudafood, a food and beverage company in
Indonesia. This investment expands the Company's presence in Southeast Asia and supports the global execution of the
snacking and entertaining strategic priority. The Company obtained this minority interest in Garudafood for a purchase price of
$426 million, including associated transaction costs. The Company funded this transaction with cash on hand.

Fiscal 2024 Outlook(2): The Company continues to navigate through a dynamic operating environment characterized by slowing
consumer demand, inflationary pressures, and headwinds in its turkey business. Net sales growth of 1 percent to 3 percent is
expected and assumes volume growth in key categories, higher brand support and innovation, a benefit from incremental pricing
actions, and the current assumptions for raw material input costs. From a bottom-line perspective, diluted net earnings per share
are expected to be $1.43 to $1.57 and adjusted diluted net earnings per share(1) are expected to be $1.51 to $1.65. Earnings are
expected to decline in the first half of the year due to the impact from lower turkey markets, lower volumes in the Retail segment,
expenses associated with the transformation and modernization initiative, and softness in the Company's China business.
Segment profit growth from all three segments is expected in the back half of the year as these pressures abate and as benefits
from the transformation and modernization initiative are realized. Major risks to the outlook include incremental inflationary
pressures, significantly lower turkey markets than expected, and the impact of deteriorating macroeconomic conditions on the
Company's customers, consumers, and operators.

The Company remains in a strong financial position due to its consistent cash flow, liquidity, and strong balance sheet. The
Company plans to continue to support the business through increased marketing and advertising investments for its leading
brands as well as investments into its production capabilities, including converting the Barron, Wisconsin, plant into a value-
added facility to support growth across the portfolio. The Company is also expanding capacity for high-demand Planters® snack
nuts items. Returning cash to shareholders in the form of dividends remains a top priority for the Company.

Consistent with the plan outlined at its recent investor day, the Company expects fiscal 2024 to be a year of investment and
remains focused on its strategic priorities, executing on its transformation and modernization initiative, fueling its innovation
pipeline, and exiting the year with momentum in its business segments. For fiscal 2024, the Company expects a modest benefit
to net earnings from its transformation and modernization initiative.

15
A detailed review of the Company's fiscal 2023 performance compared to fiscal 2022 appears in the following section. A detailed
review of fiscal 2022 performance compared to fiscal 2021 is also provided due to the change in reportable segments which
occurred in the first quarter of fiscal 2023.

(1) See the "Non-GAAP Financial Measures" section below for a description of the Company's use of measures not defined by U.S. generally accepted accounting
principles (GAAP).
(2) All forward-looking comparisons for fiscal 2024 are comparing fiscal 2023 GAAP figures to projected fiscal 2024 GAAP figures, unless otherwise noted.

Results of Operations

OVERVIEW

The Company is a processor of branded and unbranded food products for retail, foodservice, deli, and commercial customers.

The Company transitioned to a new operating model in the first quarter of fiscal 2023 and now reports its results in the following
three reportable segments:

The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in the
retail market. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.

The Foodservice segment consists primarily of the processing, marketing, and sale of food and nutritional products for
foodservice, convenience store, and commercial customers.

The International segment processes, markets, and sells Company products internationally. This segment also includes the
results from the Company’s international joint ventures, equity method investments, and royalty arrangements.

Prior period segment results have been retrospectively recast to reflect the new reportable segments.

The Company’s fiscal year consisted of 52 weeks in fiscal years 2023 and 2022 and 53 weeks in fiscal year 2021. Fiscal year
2024 will consist of 52 weeks.

FISCAL YEARS 2023 AND 2022

CONSOLIDATED RESULTS

Net Earnings and Diluted Earnings Per Share

Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands, except per share amounts 2023 2022 % Change 2023 2022 % Change
Net Earnings $ 195,935 $ 279,883 (30.0) $ 793,572 $ 999,987 (20.6)
Diluted Earnings Per Share 0.36 0.51 (29.4) 1.45 1.82 (20.3)
Adjusted Diluted Earnings Per Share(1) 0.42 0.51 (17.2) 1.61 1.82 (11.4)
(1) See the "Non-GAAP Financial Measures" section below for a description of the Company's use of measures not defined by U.S. generally accepted accounting
principles (GAAP).

Volume and Net Sales

Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Volume (lbs.) 1,155,445 1,160,490 (0.4) 4,411,738 4,604,169 (4.2)
Net Sales $ 3,198,079 $ 3,283,475 (2.6) $ 12,110,010 $ 12,458,806 (2.8)

Volume for the fourth quarter of fiscal 2023 was comparable with last year, as higher turkey volumes in each segment were offset
by lower Retail volumes in the convenient meals and proteins and the snacking and entertaining verticals. Net sales declined in
the fourth quarter, as higher Foodservice segment sales and the benefit from higher turkey volumes were more than offset by
lower volumes in the Retail segment and continued pressure in the International segment.

Fiscal 2023 marked the second consecutive year of net sales in excess of $12 billion. Net sales declined for the full year, as the
benefit from pricing actions to mitigate inflationary pressures was more than offset by the impact of lower volumes in the Retail
and International segments and lower net pricing in certain categories, such as bacon, reflecting raw material commodity

16
deflation. The primary drivers of lower volume in fiscal 2023 were declines in commodity pork availability as a result of the
Company's new pork supply agreement and lower turkey supply in the first half of the year from the impacts of HPAI.

In fiscal 2024, the Company expects sales growth, which assumes benefits from modestly higher volumes, growth in key
categories, higher brand support and innovation, incremental pricing actions, and the current assumptions for raw material costs.
Risks to this outlook include slowing consumer demand and greater-than-expected pricing headwinds in the turkey business.

Cost of Products Sold

Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Cost of Products Sold $ 2,683,655 $ 2,717,058 (1.2) $ 10,110,169 $ 10,294,120 (1.8)

Cost of products sold for the fourth quarter and full year of fiscal 2023 decreased due to lower sales. On a volume basis, cost of
products sold increased 2 percent in fiscal 2023, driven primarily by inflationary pressures stemming from, among other inputs,
packaging, logistics, and labor.

In fiscal 2024, costs are expected to moderate relative to the high levels of inflation the business has absorbed since the
beginning of fiscal 2021. Raw material input costs for pork, beef, and feed are anticipated to remain volatile and above historical
levels. The Company expects its transformation and modernization initiative to begin delivering modest cost savings in fiscal
2024, targeting packaging, logistics, and production costs.

Gross Profit
Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Gross Profit $ 514,425 $ 566,417 (9.2) $ 1,999,841 $ 2,164,686 (7.6)
Percent of Net Sales 16.1 % 17.3 % 16.5 % 17.4 %

Consolidated gross profit as a percent of net sales for the fourth quarter and full year of fiscal 2023 decreased, driven primarily
by unfavorable mix in the Retail and International segments and the persistent impact of inflationary pressures. Pricing actions
helped mitigate some of the impact from inflationary pressures. Compared to fiscal 2022, gross profit as a percent of net sales
for the fourth quarter and full year increased for the Foodservice segment but declined for the Retail and International segments.

In fiscal 2024, the Company expects gross profit as a percent of net sales to be comparable to fiscal 2023. Incremental cost
inflation and unfavorable sales mix pose the largest risks to this outlook.

Selling, General, and Administrative (SG&A)

Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
SG&A $ 216,546 $ 206,487 4.9 $ 942,167 $ 879,265 7.2
Percent of Net Sales 6.8 % 6.3 % 7.8 % 7.1 %
Adjusted Percent of Net Sales(1) 6.6 % 6.3 % 7.1 % 7.1 %
(1) See the "Non-GAAP Financial Measures" section below for a description of the Company's use of measures not defined by U.S. generally accepted accounting
principles (GAAP).

SG&A expenses for the fourth quarter of fiscal 2023 increased as higher professional service expense related to the Company's
transformation and modernization initiative and higher advertising expense were partially offset by lower employee-related
expenses. For full year fiscal 2023, the increase in SG&A expenses and SG&A expenses as a percent of net sales is attributed to
an adverse arbitration ruling totaling $68.3 million. Adjusted SG&A expenses as a percent of net sales(1) for fiscal 2023 were
comparable to the prior year.

Advertising investments in fiscal 2023 were $160 million, representing a 2% increase compared to fiscal 2022.

In fiscal 2024, the Company intends to continue investing in its leading brands and for full year advertising expense to increase
compared to the prior year.

Research and development continues to be a vital part of the Company's strategy to grow existing brands and expand into new
branded items. Research and development expenses were $33.7 million in fiscal 2023, compared to $34.7 million in fiscal 2022.

17
Equity in Earnings of Affiliates
Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Equity in Earnings of Affiliates $ 541 $ 7,234 (92.5) $ 42,754 $ 27,185 57.3

Equity in earnings of affiliates for the fourth quarter of fiscal 2023 decreased, resulting from the $7.0 million impairment of a
corporate venturing investment. Equity in earnings of affiliates for the full year of fiscal 2023 increased due to significantly higher
results for MegaMex Foods, reflecting a benefit from pricing actions and lower avocado input costs.

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 or cost
method. These investments, including balances due to or from affiliates, are included on the Consolidated Statements of
Financial Position as Investments in Affiliates. The composition of this line item as of October 29, 2023, was as follows:

In thousands Investments in Affiliates

U.S. $ 214,019
Foreign 511,103
Total $ 725,121

Goodwill and Intangible Impairment

An impairment charge related to the Justin's® trade name of $28.4 million was recorded in the fourth quarter of fiscal 2023.

Interest and Investment Income and Interest Expense

Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Interest and Investment Income $ (5,872) $ 7,933 (174.0) $ 14,828 $ 28,012 (47.1)
Interest Expense 18,360 17,602 4.3 73,402 62,515 17.4

Interest and investment income decreased in the fourth quarter of fiscal 2023 primarily due to higher pension costs. Interest and
investment income decreased for the full year of fiscal 2023 due to higher pension costs, partially offset by increased interest
income and improved performance on the rabbi trust. Interest expense increased in fiscal 2023 due to the impact of an interest
rate swap.

Effective Tax Rate

Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
2023 2022 2023 2022
Effective Tax Rate 20.5 % 21.7 % 21.8 % 21.7 %

The effective tax rate for fiscal 2023 reflects a benefit related to the deduction for foreign-derived intangible income. The fiscal
2022 effective tax rate included a benefit for stock option exercises. For additional information, refer to Note N - Income Taxes of
the Notes to the Consolidated Financial Statements.

The Company expects the effective tax rate in fiscal 2024 to be between 21.0 and 23.0 percent.

18
SEGMENT RESULTS

Net sales and segment profit for each of the Company’s reportable segments are set forth below. The Company is an integrated
enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the
Company does not represent that these segments, if operated independently, would report the profit and other financial
information shown below. Additional segment financial information can be found in Note P - Segment Reporting of the Notes to
the Consolidated Financial Statements.
Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Net Sales
Retail $ 1,983,253 $ 2,066,454 (4.0) $ 7,749,039 $ 7,987,598 (3.0)
Foodservice 1,032,353 1,009,672 2.2 3,639,492 3,691,408 (1.4)
International 182,474 207,350 (12.0) 721,479 779,799 (7.5)
Total Net Sales $ 3,198,079 $ 3,283,475 (2.6) $ 12,110,010 $ 12,458,806 (2.8)
Segment Profit
Retail $ 118,660 $ 198,852 (40.3) $ 577,690 $ 721,832 (20.0)
Foodservice 167,571 148,203 13.1 595,682 547,686 8.8
International 9,511 28,810 (67.0) 55,234 107,642 (48.7)
Total Segment Profit 295,743 375,865 (21.3) 1,228,606 1,377,161 (10.8)
Net Unallocated Expense 49,485 18,498 167.5 214,482 99,297 116.0
Noncontrolling Interest (452) 128 (454.6) (653) 239 (372.7)
Earnings Before Income Taxes $ 245,805 $ 357,495 (31.2) $ 1,013,472 $ 1,278,103 (20.7)

Volume for the full year of fiscal 2023 was negatively impacted by lower fresh pork availability resulting from the Company's new
pork supply agreement (primarily impacting the first quarter) and lower turkey volumes due to the impacts of HPAI in the
Company's vertically integrated turkey supply chain (primarily impacting the first half).

Retail
Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Volume (lbs.) 788,030 810,044 (2.7) 3,055,393 3,245,625 (5.9)
Net Sales $ 1,983,253 $ 2,066,454 (4.0) $ 7,749,039 $ 7,987,598 (3.0)
Segment Profit 118,660 198,852 (40.3) 577,690 721,832 (20.0)
Adjusted Segment Profit(1) 147,043 198,852 (26.1) 606,073 721,832 (16.0)
(1) See the "Non-GAAP Financial Measures" section below for a description of the Company's use of measures not defined by U.S. generally accepted accounting
principles (GAAP).

For the fourth quarter of fiscal 2023, volume and net sales growth from the value-added meats, emerging brands and bacon
verticals was more than offset by declines in the convenient meals and proteins and the snacking and entertaining verticals. In
addition to continued recovery across the Jennie-O® turkey portfolio, items such as Applegate® natural and organic meats,
Hormel® Black Label® bacon, Chi-Chi's® and La Victoria® salsas, Corn Nuts® products and Hormel® Square Table™ entrees
grew volume and net sales during the quarter. Net sales declines continued to be partially attributed to the difficult comparison
from high levels of demand for Skippy® spreads last year. Full year fiscal 2023 net sales declined primarily due to lower volumes
from the convenient meals and proteins and value-added meats verticals, declines in the snacking and entertaining vertical and
lower market-driven pricing on raw bacon items.

Segment profit declined for the fourth quarter due to lower sales, unfavorable mix and increased brand investments. Additionally,
a non-cash impairment charge of $28.4 million was recorded in the fourth quarter associated with the Justin's® trade name. For
fiscal 2023, segment profit declined due to lower volumes, unfavorable mix, and higher operating expenses, partially offset by the
benefit from pricing actions across the portfolio, higher equity in earnings from MegaMex Foods, and improved bacon volumes.

In fiscal 2024, the Company expects volume and net sales from its Retail segment to be comparable to the prior year. Volume
growth in key categories, higher brand support and innovation, and a benefit from incremental pricing actions are expected to be
positive catalysts for the business. Earnings are expected to decline compared to the prior year, driven primarily by commodity
headwinds in the Company's turkey business. Risks to this outlook include a further slowing in consumer demand and greater-
than-expected pricing headwinds in the turkey business.

19
Foodservice
Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Volume (lbs.) 279,288 266,447 4.8 1,026,772 1,027,124 —
Net Sales $ 1,032,353 $ 1,009,672 2.2 $ 3,639,492 $ 3,691,408 (1.4)
Segment Profit 167,571 148,203 13.1 595,682 547,686 8.8

Volume and net sales for the fourth quarter of fiscal 2023 increased, driven by a significant recovery across the Jennie-O® turkey
portfolio and strong demand for premium bacon, pizza toppings and premium breakfast sausage. Additionally, volume and net
sales increased for the Cafe H®, Austin Blues® and Hormel® Cure 81® brands. Net sales declined for full year fiscal 2023
primarily due to lower net pricing in certain categories, reflecting raw material commodity deflation and lower turkey and fresh
pork volumes.

For the fourth quarter, segment profit increased due to the contribution from higher volumes and improved mix. Segment profit
increased during fiscal 2023 due to improved mix across the portfolio.

In fiscal 2024, the Company anticipates higher volume, net sales and segment profit from its Foodservice segment compared to
the prior year. Risks to this outlook include a softening of foodservice industry demand, lower-than-expected raw material input
costs (negatively impacting net sales), and higher-than-expected operating costs.

International
Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 % Change 2023 2022 % Change
Volume (lbs.) 88,128 83,999 4.9 329,573 331,421 (0.6)
Net Sales $ 182,474 $ 207,350 (12.0) $ 721,479 $ 779,799 (7.5)
Segment Profit 9,511 28,810 (67.0) 55,234 107,642 (48.7)

As anticipated, net sales declined for the fourth quarter of fiscal 2023 as a result of lower branded export volumes and lower
sales in China, primarily related to the retail business. Volume growth was driven by low-margin turkey and commodity fresh
pork. For the full year of fiscal 2023, net sales declined primarily due to lower SPAM® luncheon meat exports, lower sales in
China, and lower commodity turkey prices.

Segment profit for the fourth quarter declined significantly due to continued softness in China and lower branded export demand,
partially offset by the contribution from the Company's minority investment in Garudafood. Segment profit for fiscal 2023 declined
significantly due to lower sales in China, lower commodity turkey sales, and lower branded export margins.

In fiscal 2024, the Company expects a rebound in its International segment, including higher net sales and segment profit. This
recovery is expected to be driven by improvement across the business, including from its multinational businesses in China and
Brazil, partnership in the Philippines, and branded exports. Risks to this outlook include continued softness in China and
commodity headwinds impacting the export business.

20
Unallocated Income and Expense
The Company does not allocate deferred compensation, investment income, interest expense, or interest income to its segments
when measuring performance. The Company also retains various other income and unallocated expenses at the corporate level.
Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing
investments and noncontrolling interests are excluded.
Fourth Quarter Ended Fiscal Year Ended
October 29, October 30, October 29, October 30,
In thousands 2023 2022 2023 2022
Net Unallocated Expense $ 49,485 $ 18,498 $ 214,482 $ 99,297
Noncontrolling Interest (452) 128 (653) 239

For the fourth quarter of fiscal 2023, net unallocated expense increased as a result of higher pension costs, higher professional
service expenses related to the Company's transformation and modernization initiative, and from the impairment of a corporate
venturing investment. In addition to these drivers, net unallocated expense for fiscal 2023 increased as a result of an adverse
arbitration ruling totaling $68.3 million.

(1)
Non-GAAP Financial Measures
This filing includes measures of financial performance that are not defined by U.S. GAAP. The Company utilizes these non-GAAP
measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when
making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-
GAAP financial measures provide useful information to investors because they facilitate year-over-year comparison and provide
additional information about trends in the Company’s operations. Non-GAAP measures are not intended to be a substitute for
U.S. GAAP measures in analyzing financial performance. These non-GAAP measures are not in accordance with generally
accepted accounting principles and may be different from non-GAAP measures used by other companies.

Adjusted SG&A expenses as a percent of net sales excludes the impact of an adverse arbitration ruling and certain costs
associated with the transformation and modernization initiative. Adjusted diluted net earnings per share excludes the impact of
an adverse arbitration ruling, impairment charges associated with the Justin's® trade name and a corporate venturing investment,
and costs associated with the transformation and modernization initiative. The tax impact was calculated using the effective tax
rate for the quarter in which the expense was incurred. The non-GAAP financial measure of adjusted segment profit for the Retail
segment excludes the impact of the impairment charge associated with the Justin's® trade name.

The Company's fiscal 2024 outlook for adjusted diluted net earnings per share is a non-GAAP financial measure that excludes,
or has otherwise been adjusted for, items impacting comparability, including estimated charges associated with the
transformation and modernization initiative. The Company's strategic investments in the transformation and modernization
initiative are expected to cease at the end of the investment period, are not expected to recur in the foreseeable future, and are
not considered representative of the Company's underlying operating performance.

The Company provides earnings before interest and taxes (EBIT) and earnings before interest, taxes, depreciation, and
amortization (EBITDA) because these measures are useful to management and investors as indicators of operating strength
relative to prior years and are commonly used to benchmark the Company’s performance.

21
The following tables show the calculations to reconcile from the GAAP measures to the non-GAAP financial measures.

ADJUSTED SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES AS A PERCENT OF NET SALES (NON-
GAAP) AND ADJUSTED DILUTED NET EARNINGS PER SHARE (NON-GAAP)
Fourth Quarter Ended
October 29, 2023 October 30, 2022
Non-GAAP Reported Non-GAAP
In thousands, except per share amounts GAAP Adjustments Non-GAAP GAAP % Change
Net Sales $ 3,198,079 $ — $ 3,198,079 $ 3,283,475 (2.6)
Cost of Products Sold 2,683,655 (944) 2,682,711 2,717,058 (1.3)
Gross Profit 514,425 944 515,368 566,417 (9.0)
Selling, General, and Administrative 216,546 (6,726) 209,820 206,487 1.6
Equity in Earnings of Affiliates 541 6,985 7,526 7,234 4.0
Goodwill and Intangible Impairment 28,383 (28,383) — — —
Operating Income 270,037 43,038 313,074 367,164 (14.7)
Interest and Investment Income (5,872) — (5,872) 7,933 (174.0)
Interest Expense 18,360 — 18,360 17,602 4.3
Earnings Before Income Taxes 245,805 43,038 288,843 357,495 (19.2)
Provision for Income Taxes 50,322 8,822 59,145 77,484 (23.7)
Net Earnings 195,483 34,216 229,698 280,011 (18.0)
Less: Net Earnings (Loss) Attributable to
Noncontrolling Interest (452) — (452) 128 (454.6)
Net Earnings Attributable to Hormel Foods
Corporation $ 195,935 $ 34,216 $ 230,150 $ 279,883 (17.8)

Diluted Net Earnings Per Share $ 0.36 $ 0.06 $ 0.42 $ 0.51 (17.2)

Selling, General, and Administrative Expenses

as a Percent of Net Sales 6.8 % 6.6 % 6.3 %

Fiscal Year Ended

October 29, 2023 October 30, 2022
Non-GAAP Reported Non-GAAP
In thousands, except per share amounts GAAP Adjustments Non-GAAP GAAP % Change
Net Sales $ 12,110,010 $ — $ 12,110,010 $ 12,458,806 (2.8)
Cost of Products Sold 10,110,169 (944) 10,109,225 10,294,120 (1.8)
Gross Profit 1,999,841 944 2,000,785 2,164,686 (7.6)
Selling, General, and Administrative 942,167 (76,726) 865,441 879,265 (1.6)
Equity in Earnings of Affiliates 42,754 6,985 49,739 27,185 83.0
Goodwill and Intangible Impairment 28,383 (28,383) — — —
Operating Income 1,072,046 113,038 1,185,083 1,312,607 (9.7)
Interest and Investment Income 14,828 — 14,828 28,012 (47.1)
Interest Expense 73,402 — 73,402 62,515 17.4
Earnings Before Income Taxes 1,013,472 113,038 1,126,509 1,278,103 (11.9)
Provision for Income Taxes 220,552 24,012 244,565 277,877 (12.0)
Net Earnings 792,920 89,026 881,945 1,000,226 (11.8)
Less: Net Earnings (Loss) Attributable to
Noncontrolling Interest (653) — (653) 239 (372.7)
Net Earnings Attributable to Hormel Foods
Corporation $ 793,572 $ 89,026 $ 882,597 $ 999,987 (11.7)

Diluted Net Earnings Per Share $ 1.45 $ 0.16 $ 1.61 $ 1.82 (11.4)

Selling, General, and Administrative Expenses

as a Percent of Net Sales 7.8 % 7.1 % 7.1 %

22
ADJUSTED SEGMENT PROFIT (NON-GAAP)
Fourth Quarter Ended
October 29, 2023 October 30, 2022
Non-GAAP Reported Non-GAAP
In thousands GAAP Adjustments Non-GAAP GAAP % Change
Segment Profit
Retail $ 118,660 $ 28,383 $ 147,043 $ 198,852 (26.1)
Foodservice 167,571 — 167,571 148,203 13.1
International 9,511 — 9,511 28,810 (67.0)
Total Segment Profit 295,743 28,383 324,126 375,865 (13.8)
Net Unallocated Expense 49,485 (14,655) 34,830 18,498 88.3
Noncontrolling Interest (452) — (452) 128 (454.6)
Earnings Before Income Taxes $ 245,805 $ 43,038 $ 288,843 $ 357,495 (19.2)

Fiscal Year Ended

October 29, 2023 October 30, 2022
Non-GAAP Reported Non-GAAP
In thousands GAAP Adjustments Non-GAAP GAAP % Change
Segment Profit
Retail $ 577,690 $ 28,383 $ 606,073 $ 721,832 (16.0)
Foodservice 595,682 — 595,682 547,686 8.8
International 55,234 — 55,234 107,642 (48.7)
Total Segment Profit 1,228,606 28,383 1,256,989 1,377,161 (8.7)
Net Unallocated Expense 214,482 (84,655) 129,827 99,297 30.7
Noncontrolling Interest (653) — (653) 239 (373.1)
Earnings Before Income Taxes $ 1,013,472 $ 113,038 $ 1,126,510 $ 1,278,103 (11.9)

ADJUSTED DILUTED NET EARNINGS PER SHARE OUTLOOK (NON-GAAP)

Fiscal Year
2024 Outlook 2023 Results
Diluted Net Earnings per Share $1.43 - $1.57 $1.45
Arbitration Ruling — $0.10
Impairment Charges — $0.05
Transformation and Modernization Initiative $0.08 $0.01
Adjusted Diluted Net Earnings per Share $1.51 - $1.65 $1.61

EBIT AND EBITDA (NON-GAAP)

Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022
EBIT:
Net Earnings Attributable to Hormel Foods Corporation $ 793,572 $ 999,987
Plus: Income Tax Expense 220,552 277,877
Plus: Interest Expense 73,402 62,515
Less: Interest and Investment Income 14,828 28,012
EBIT $ 1,072,698 $ 1,312,367
EBITDA:
EBIT per above 1,072,698 1,312,367
Plus: Depreciation and Amortization 253,311 235,885
EBITDA $ 1,326,009 $ 1,548,252

23
FISCAL YEARS 2022 AND 2021

CONSOLIDATED RESULTS
A detailed review of fiscal 2022 performance compared to fiscal 2021 is provided due to the change in reportable segments
which occurred in the first quarter of fiscal 2023.

Net Earnings and Diluted Earnings Per Share

Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands, except per share amounts 2022 2021 % Change 2022 2021 % Change
Net Earnings $ 279,883 $ 281,738 (0.7) $ 999,987 $ 908,839 10.0
Diluted Earnings Per Share 0.51 0.51 — 1.82 1.66 9.6
Adjusted Diluted Earnings Per Share(1) 0.51 0.51 — 1.82 1.73 5.2

Volume and Net Sales

Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Volume (lbs.) 1,160,490 1,379,848 (15.9) 4,604,169 4,933,136 (6.7)
Organic Volume(1) 1,160,490 1,281,287 (9.4) 4,440,352 4,834,575 (8.2)
Net Sales $ 3,283,475 $ 3,454,751 (5.0) $ 12,458,806 $ 11,386,189 9.4
Organic Net Sales(1) 3,283,475 3,207,983 2.4 11,853,241 11,139,421 6.4
(1) See the "Non-GAAP Financial Measures" section below for a description of the Company's use of measures not defined by U.S. generally accepted accounting
principles (GAAP).

Consistent with the Company's long-term strategy to better align resources to value-added growth, the overall decline in volume
for the fourth quarter and full year of fiscal 2022 was primarily due to lower commodity sales resulting from the Company's new
pork supply agreement, which was effective January 1, 2022.

Net sales decreased for the fourth quarter of fiscal 2022 due to reduced commodity sales and the impact from an additional week
of sales last year. Organic net sales for the fourth quarter increased, led by growth from the Retail and Foodservice segments.
The Retail segment benefited from pricing actions effective at the beginning of the fourth quarter.

Fiscal 2022 marked the third consecutive year of record sales for the Company. Record net sales were primarily driven by the
inclusion of the Planters® snack nuts business and growth from the Foodservice segment. All segments implemented pricing
actions during the fiscal year to combat inflationary pressures.

Cost of Products Sold

Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Cost of Products Sold $ 2,717,058 $ 2,876,669 (5.5) $ 10,294,120 $ 9,458,283 8.8

Cost of products sold for the fourth quarter decreased, resulting from lower sales due to the additional week in fiscal 2021. For
fiscal 2022, cost of products sold increased due to inflationary pressures stemming from raw materials, packaging, freight, labor,
and other inputs. The inclusion of the Planters® snack nuts business was also a driver of higher costs for the full year.

Gross Profit
Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Gross Profit $ 566,417 $ 578,081 (2.0) $ 2,164,686 $ 1,927,906 12.3
Percent of Net Sales 17.3 % 16.7 % 17.4 % 16.9 %

Consolidated gross profit as a percent of net sales for the fourth quarter of fiscal 2022 increased primarily due to improved
profitability from the Retail segment. For fiscal 2022, gross profit as a percent of net sales increased primarily due to improved
profitability from the Foodservice and International segments, the inclusion of the Planters® snack nuts business, and pricing
actions to help mitigate inflationary pressures across all segments. Gross profit as a percent of net sales for fiscal 2022 also
benefited from the reduction of lower margin commodity sales resulting from the Company's pork supply agreement that was
new in fiscal 2022.

24
Compared to the prior year, gross profit as a percent of net sales for the fourth quarter of fiscal 2022 increased for the Retail
segment and declined for the other segments. For fiscal 2022, gross profit as a percent of net sales increased for Foodservice
and International segments and decreased modestly for the Retail segment. All business segments were negatively impacted by
broad-based inflationary pressures.

Selling, General, and Administrative (SG&A)

Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
SG&A $ 206,487 $ 230,441 (10.4) $ 879,265 $ 853,071 3.1
Percent of Net Sales 6.3 % 6.7 % 7.1 % 7.5 %

SG&A expenses for the fourth quarter of fiscal 2022 declined primarily due to the additional week in fiscal 2021. SG&A expenses
for fiscal 2022 increased due to the inclusion of the Planters® snack nuts business and higher marketing and advertising
investments. As a percent of net sales, SG&A expenses declined for the full year, driven by record sales and disciplined cost
management.

Advertising investments in fiscal 2022 were $157 million, representing a 14 percent increase compared to fiscal 2021.

Research and development continued to be a vital part of the Company's strategy to grow existing brands and expand into new
branded items. Research and development expenses were $34.7 million in fiscal 2022, compared to $33.6 million in fiscal 2021.

Equity in Earnings of Affiliates

Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Equity in Earnings of Affiliates $ 7,234 $ 10,041 (28.0) $ 27,185 $ 47,763 (43.1)

Equity in earnings of affiliates for the fourth quarter and full year of fiscal 2022 decreased significantly due to lower results for
MegaMex Foods. MegaMex Foods results were negatively impacted by inflationary pressures, including significantly higher costs
for avocados.

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 or cost
method. These investments, along with receivables from other affiliates, are included on the Consolidated Statements of
Financial Position as Investments in Affiliates. The composition of this line item as of October 30, 2022, was as follows:

In thousands Investments in Affiliates

U.S. $ 192,577
Foreign 78,481
Total $ 271,058

Interest and Investment Income and Interest Expense

Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Interest and Investment Income $ 7,933 $ 10,138 (21.7) $ 28,012 $ 46,878 (40.2)
Interest Expense 17,602 15,589 12.9 62,515 43,307 44.4

Interest and investment income decreased in the fourth quarter and full year of fiscal 2022 primarily due to losses on the rabbi
trust. Interest expense in fiscal 2022 reflects the full year impact of debt issued in 2021.

25
Effective Tax Rate
Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
2022 2021 2022 2021
Effective Tax Rate 21.7 % 20.0 % 21.7 % 19.3 %

The effective tax rate for fiscal 2021 included the benefit of one-time state tax discrete items. For additional information, refer to
Note N - Income Taxes of the Notes to the Consolidated Financial Statements.

SEGMENT RESULTS

Net sales and segment profit for each of the Company’s reportable segments are set forth below. The Company is an integrated
enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the
Company does not represent that these segments, if operated independently, would report the profit and other financial
information shown below. Additional segment financial information can be found in Note P - Segment Reporting of the Notes to
the Consolidated Financial Statements.
Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Net Sales
Retail $ 2,066,454 $ 2,181,048 (5.3) $ 7,987,598 $ 7,418,079 7.7
Foodservice 1,009,672 1,043,634 (3.3) 3,691,408 3,130,174 17.9
International 207,350 230,068 (9.9) 779,799 837,936 (6.9)
Total Net Sales $ 3,283,475 $ 3,454,751 (5.0) $ 12,458,806 $ 11,386,189 9.4
Segment Profit
Retail $ 198,852 $ 167,551 18.7 $ 721,832 $ 690,127 4.6
Foodservice 148,203 163,367 (9.3) 547,686 431,992 26.8
International 28,810 38,970 (26.1) 107,642 116,585 (7.7)
Total Segment Profit 375,865 369,888 1.6 1,377,161 1,238,704 11.2
Net Unallocated Expense 18,498 17,669 4.7 99,297 112,836 (12.0)
Noncontrolling Interest 128 12 994.1 239 301 (20.6)
Earnings Before Income Taxes $ 357,495 $ 352,230 1.5 $ 1,278,103 $ 1,126,170 13.5

Retail
Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Volume (lbs.) 810,044 980,339 (17.4) 3,245,625 3,546,324 (8.5)
Net Sales $ 2,066,454 $ 2,181,048 (5.3) $ 7,987,598 $ 7,418,079 7.7
Segment Profit 198,852 167,551 18.7 721,832 690,127 4.6

Net sales for the fourth quarter of fiscal 2022 decreased due to the impact from an additional week in the fourth quarter of last
year and lower commodity sales. These declines more than offset strong demand for Skippy® peanut butter and the impact of
pricing actions across the global flavors and convenient meals and proteins verticals. For fiscal 2022, net sales increased
primarily due to the inclusion of the Planters® snack nuts business and the impact from strategic pricing actions. Consistent with
the Company's long-term strategy to better align resources to value-added growth, the overall decline in volume for the fourth
quarter and full year of fiscal 2022 was primarily due to lower commodity sales resulting from the Company's new pork supply
agreement, in addition to supply impacts on the Company's vertically integrated supply chain as a result of HPAI.

For the fourth quarter of fiscal 2022, segment profit increased due to higher commodity turkey prices, improved value-added mix,
and pricing actions to offset the impact from continued inflationary pressures. Fiscal 2022 segment profit increased, as the
contribution from the Planters® snack nuts business and higher commodity turkey prices more than offset the impact of
inflationary pressures and lower results from MegaMex Foods.

26
Foodservice
Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Volume (lbs.) 266,447 301,111 (11.5) 1,027,124 1,007,667 1.9
Net Sales $ 1,009,672 $ 1,043,634 (3.3) $ 3,691,408 $ 3,130,174 17.9
Segment Profit 148,203 163,367 (9.3) 547,686 431,992 26.8

Volume and net sales declined in the fourth quarter of fiscal 2022 due to the impact from an additional week in the fourth quarter
of fiscal 2021 and lower turkey sales. Partially offsetting these declines, products such as Hormel® Natural Choice® meats,
Hormel® Bacon 1TM fully cooked bacon and Hormel® Fire BraisedTM flame-seared meats grew volume and sales for the fourth
quarter of fiscal 2022. Fiscal 2022 volume and net sales increased due to strong results across the portfolio as the industry
continued to recover from pandemic-related declines and from the inclusion of the Planters® snack nuts business in the
convenience channel.

The decline in segment profit for the fourth quarter of fiscal 2022 was driven by the impact from an additional week in the fourth
quarter of fiscal 2021 and higher operational, logistics and raw material costs. Segment profit growth for fiscal 2022 was primarily
due to significantly higher net sales as described above.

International
Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 % Change 2022 2021 % Change
Volume (lbs.) 83,999 98,399 (14.6) 331,421 379,145 (12.6)
Net Sales $ 207,350 $ 230,068 (9.9) $ 779,799 $ 837,936 (6.9)
Segment Profit 28,810 38,970 (26.1) 107,642 116,585 (7.7)

In the fourth quarter of fiscal 2022, volume and net sales growth from the SPAM® and Skippy® brands and the multinational
businesses were more than offset by lower commodity turkey, fresh pork and refrigerated export sales. For fiscal 2022, volume
and sales declined as a result of lower commodity sales due to the Company's new pork supply agreement, lower turkey sales
as a result of the supply impacts on the Company's vertically integrated supply chain from HPAI, and ongoing export logistics
challenges.

Segment profit declined in the fourth quarter of fiscal 2022, as growth in China did not overcome the impact of lower commodity
turkey sales, lower branded export margins, and higher logistics expenses for the export business. Segment profit for fiscal 2022
declined due in large part to lower results from the export business, which was negatively impacted by logistics challenges and
meaningfully higher freight expenses.

Unallocated Income and Expense

The Company does not allocate deferred compensation, investment income, interest expense, or interest income to its segments
when measuring performance. The Company also retains various other income and unallocated expenses at the corporate level.
Equity in Earnings of Affiliates is included in segment profit; however, earnings attributable to the Company’s corporate venturing
investments and noncontrolling interests are excluded.
Fourth Quarter Ended Fiscal Year Ended
October 30, October 31, October 30, October 31,
In thousands 2022 2021 2022 2021
Net Unallocated Expense $ 18,498 $ 17,669 $ 99,297 $ 112,836
Noncontrolling Interest 128 12 239 301

For the fourth quarter of fiscal 2022, net unallocated expense increased slightly as unfavorable investment performance was
mostly offset with lower corporate expense.

For fiscal 2022, net unallocated expense decreased due to one-time acquisition costs and accounting adjustments of $43 million
related to the acquisition of the Planters® snack nuts business in fiscal 2021. The overall decline was partially offset by higher
interest expense and lower investment income net of deferred compensation.

27
Non-GAAP Financial Measures
The non-GAAP financial measure of adjusted diluted earnings per share is presented to provide investors with additional
information to facilitate the comparison of past and present operations. This measurement excludes the impact of the acquisition-
related expenses and accounting adjustments related to the acquisition of the Planters® snack nuts business. The tax impact
was calculated using the effective tax rate for the quarter in which the expenses and accounting adjustments were incurred.

The non-GAAP financial measures of organic volume and organic net sales are presented to provide investors with additional
information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the
impacts of the acquisition of the Planters® snack nuts business (June 2021) in the Retail, Foodservice, and International
segments. Organic volume and organic net sales also exclude the impact of the 53rd week in fiscal 2021 as approximated based
on average weekly sales for the fourth quarter (fourteen weeks) ended October 31, 2021.

The Company provides earnings before interest and taxes (EBIT) and earnings before interest, taxes, depreciation, and
amortization (EBITDA) because these measures are useful to management and investors as indicators of operating strength
relative to prior years and are commonly used to benchmark the Company’s performance.

The Company believes these non-GAAP financial measures provide useful information to investors because they are the
measures used to evaluate performance on a comparable year-over-year basis. Non-GAAP measures are not intended to be a
substitute for U.S. GAAP measures in analyzing financial performance. These non-GAAP measures are not in accordance with
generally accepted accounting principles and may be different from non-GAAP measures used by other companies.

The following tables show the calculations to reconcile from the GAAP measures to the non-GAAP adjusted measures.

ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP)

Fiscal Year Ended
October 30,
2022 October 31, 2021
Reported Reported Acquisition Costs Non-GAAP
In thousands, except per share amounts GAAP GAAP and Adjustments Non-GAAP % Change
Net Sales $ 12,458,806 $ 11,386,189 $ — $ 11,386,189 9.4
Cost of Products Sold 10,294,120 9,458,283 (12,900) 9,445,383 9.0
Gross Profit 2,164,686 1,927,906 12,900 1,940,806 11.5
Selling, General, and Administrative 879,265 853,071 (30,303) 822,768 6.9
Equity in Earnings of Affiliates 27,185 47,763 — 47,763 (43.1)
Operating Income 1,312,607 1,122,599 43,203 1,165,802 12.6
Interest and Investment Income (Expense) 28,012 46,878 — 46,878 (40.2)
Interest Expense 62,515 43,307 — 43,307 44.4
Earnings Before Income Taxes 1,278,103 1,126,170 43,203 1,169,373 9.3
Provision for Income Taxes 277,877 217,029 5,975 223,004 24.6
Net Earnings 1,000,226 909,140 37,228 946,368 5.7
Less: Net Earnings Attributable to Noncontrolling
Interest 239 301 — 301 (20.5)
Net Earnings Attributable to Hormel Foods
Corporation $ 999,987 $ 908,839 $ 37,228 $ 946,067 5.7

Diluted Net Earnings Per Share $ 1.82 $ 1.66 $ 0.06 $ 1.73 5.2

ORGANIC VOLUME (NON-GAAP)

Fourth Quarter Ended
October 30, 2022 October 31, 2021
Reported Reported Organic Organic
Lbs., in thousands (GAAP) (GAAP) 53rd Week (Non-GAAP) % Change
Retail 810,044 980,339 (70,024) 910,315 (11.0)
Foodservice 266,447 301,111 (21,508) 279,603 (4.7)
International 83,999 98,399 (7,029) 91,371 (8.1)
Total Volume 1,160,490 1,379,848 (98,561) 1,281,287 (9.4)

28
 Fiscal Year Ended
October 30, 2022 October 31, 2021
Reported Organic Reported Organic Organic
Lbs., in thousands (GAAP) Acquisitions (Non-GAAP) (GAAP) 53rd Week (Non-GAAP) % Change
Retail 3,245,625 (138,186) 3,107,439 3,546,324 (70,024) 3,476,300 (10.6)
Foodservice 1,027,124 (22,127) 1,004,997 1,007,667 (21,508) 986,159 1.9
International 331,421 (3,503) 327,918 379,145 (7,029) 372,117 (11.9)
Total Volume 4,604,169 (163,817) 4,440,352 4,933,136 (98,561) 4,834,575 (8.2)

ORGANIC NET SALES (NON-GAAP)

Fourth Quarter Ended
October 30, 2022 October 31, 2021
Reported Reported Organic Organic
In thousands (GAAP) (GAAP) 53rd Week (Non-GAAP) % Change
Retail $ 2,066,454 $ 2,181,048 $ (155,789) $ 2,025,259 2.0
Foodservice 1,009,672 1,043,634 (74,545) 969,089 4.2
International 207,350 230,068 (16,433) 213,635 (2.9)
Total Net Sales $ 3,283,475 $ 3,454,751 $ (246,768) $ 3,207,983 2.4

Fiscal Year Ended

October 30, 2022 October 31, 2021
Reported Organic Reported Organic Organic
In thousands (GAAP) Acquisitions (Non-GAAP) (GAAP) 53rd Week (Non-GAAP) % Change
Retail $ 7,987,598 $ (514,708) $ 7,472,890 $ 7,418,079 $ (155,789) $ 7,262,290 2.9
Foodservice 3,691,408 (80,979) 3,610,429 3,130,174 (74,545) 3,055,629 18.2
International 779,799 (9,877) 769,922 837,936 (16,433) 821,503 (6.3)
Total Net Sales $ 12,458,806 $ (605,565) $ 11,853,241 $ 11,386,189 $ (246,768) $ 11,139,421 6.4

EBIT AND EBITDA (NON-GAAP)

Fiscal Year Ended
In thousands October 30, 2022 October 31, 2021
EBIT:
Net Earnings Attributable to Hormel Foods Corporation $ 999,987 $ 908,839
Plus: Income Tax Expense 277,877 217,029
Plus: Interest Expense 62,515 43,307
Less: Interest and Investment Income 28,012 46,878
EBIT $ 1,312,367 $ 1,122,297
EBITDA:
EBIT per above 1,312,367 1,122,297
Plus: Depreciation and Amortization 235,885 209,309
EBITDA $ 1,548,252 $ 1,331,606

LIQUIDITY AND CAPITAL RESOURCES

When assessing liquidity and capital resources, the Company evaluates cash and cash equivalents, short-term and long-term
investments, income from operations, and borrowing capacity.

Cash Flow Highlights

Fiscal Year Ended
In millions October 29, 2023 October 30, 2022
Cash and Cash Equivalents $ 737 $ 982
Cash Provided By (Used in) Operating Activities 1,048 1,135
Cash Provided by (Used in) Investing Activities (690) (258)
Cash Provided by (Used in) Financing Activities (600) (487)

Cash and cash equivalents decreased in fiscal 2023. The Company’s income from operations was sufficient to cover dividend
payments and capital expenditures. Cash on hand was also used to fund an investment in Garudafood, a food and beverage
company in Indonesia. Additional details related to significant drivers of cash flows are provided below.

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Cash Provided by (Used in) Operating Activities
▪ Cash flows from operating activities were largely impacted by changes in operating assets and liabilities.
– Accounts receivable decreased $49 million in fiscal 2023 primarily due to timing of sales and more efficient
collections. The $28 million decrease in fiscal 2022 is largely due to timing of collections.
– In fiscal 2023, inventory decreased $36 million as a result of strategic inventory management efforts implemented
to address elevated inventory levels. The $352 million increase in fiscal 2022 is due to inflation in raw material and
other input costs and maintaining higher inventory levels.
– Prepaid expenses and other assets increased $69 million in fiscal 2023 primarily due to cash collateral
requirements for the Company's hedging programs and timing of payments related to infrastructure improvement
commitments. The increase in fiscal 2022 of $15 million is primarily due to the timing of payments.
– Accounts payable and accrued expenses decreased $141 million in fiscal 2023 related to the timing of payments
and lower promotional and incentive compensation expenses. In fiscal 2022, accounts payable and accrued
expenses decreased $15 million related to the timing of payments.

Cash Provided by (Used in) Investing Activities

▪ In fiscal 2023, the Company acquired a minority interest in Garudafood for $426 million, including associated transaction
costs.
▪ Capital expenditures were $270 million and $279 million in fiscal 2023 and 2022, respectively. The largest projects for fiscal
2023 included a new production line for the SPAM® family of products in Dubuque, Iowa, initial phases of the transition from
harvest to value-added capacity in Barron, Wisconsin, wastewater infrastructure in Austin, Minnesota, and pepperoni
capacity in Omaha, Nebraska. The largest spend in fiscal 2022 also included the capacity expansion for SPAM® and
pepperoni as well as for bacon in Austin, Minnesota.

Cash Provided by (Used in) Financing Activities

▪ Cash dividends paid to the Company’s shareholders are an ongoing financing activity for the Company with payments
totaling $593 million in fiscal 2023 and $558 million in fiscal 2022. The dividend rate was $1.10 per share in fiscal 2023
compared to $1.04 per share in fiscal 2022.
▪ During fiscal 2023, the Company repurchased 310,000 shares for $12 million.

Sources and Uses of Cash

The Company's balanced business model, with diversification across raw material inputs, channels, and categories, provides
stability in ever changing economic environments. The Company maintains a disciplined capital allocation strategy by applying a
waterfall approach, which focuses first on required uses of cash such as capital expenditures to maintain facilities, dividend
returns to investors, mandatory debt repayments, and pension obligations. Next, the Company looks to strategic items in support
of growth initiatives such as capital projects, acquisitions, additional dividend increases, and working capital investments. Finally,
the Company evaluates opportunistic uses including incremental debt repayment and share repurchases.

The Company believes its anticipated income from operations, cash on hand, borrowing capacity under the current credit facility,
and access to capital markets will be adequate to meet all short-term and long-term commitments. The Company continues to
look for opportunities to make investments and acquisitions that align with its strategic priorities. The Company's ability to
leverage its balance sheet through the issuance of debt provides the flexibility to pursue strategic opportunities which may
require additional funding.

Dividend Payments
The Company remains committed to providing returns to investors through cash dividends. The Company has paid 381
consecutive quarterly dividends since becoming a public company in 1928. The annual dividend rate for fiscal 2024 will increase
to $1.13 per share, representing the 58th consecutive annual dividend increase.

Capital Expenditures
Capital expenditures are first allocated to required maintenance and then growth opportunities based on the needs of the
business. Capital expenditures supporting growth opportunities in fiscal 2024 are expected to focus on projects related to value-
added capacity, infrastructure, and new technology. Capital expenditures for fiscal 2024 are estimated to be $280 million.

Debt
As of October 29, 2023, the Company’s outstanding debt included $3.3 billion of fixed rate unsecured senior notes due in fiscal
2024, 2028, 2030, and 2051 with interest payable semi-annually. During fiscal 2023, the Company made $55 million of interest
payments and expects to make $55 million of interest payments in fiscal 2024 on these notes. In fiscal 2023, $950 million of the
notes was reclassified as Current Maturities of Long-term Debt on the Consolidated Statements of Financial Position. See Note L
- Long-Term Debt and Other Borrowing Arrangements of the Notes to the Consolidated Financial Statements for additional
information.

Borrowing Capacity
As a source of short-term financing, the Company maintains a $750 million unsecured revolving credit facility. The maximum
commitment under this credit facility may be further increased by $375 million, generally by mutual agreement of the lenders and

30
the Company, subject to certain customary conditions. Funds drawn from this facility may be used by the Company to refinance
existing debt, for working capital or other general corporate purposes, and for funding acquisitions. The lending commitments
under the facility are scheduled to expire on May 6, 2026, at which time the Company will be required to pay in full all obligations
then outstanding. As of October 29, 2023, the Company had no outstanding draws from this facility.

Debt Covenants
The Company’s debt and credit agreements contain customary terms and conditions including representations, warranties, and
covenants. These debt covenants limit the ability of the Company to, among other things, incur debt for borrowed money secured
by certain liens, engage in certain sale and leaseback transactions, and require maintenance of certain consolidated leverage
ratios. As of October 29, 2023, the Company was in compliance with all covenants and expects to maintain compliance in the
future.

Cash Held by International Subsidiaries

As of October 29, 2023, the Company had $164 million of cash and cash equivalents held by international subsidiaries. The
Company maintains all undistributed earnings as permanently reinvested. The Company evaluates the balance and uses of cash
held internationally based on the needs of the business.

Share Repurchases
The Company is authorized to repurchase 3,677,494 shares of common stock as part of an existing plan approved by the
Company’s Board of Directors. During fiscal 2023, the Company repurchased 310,000 shares for $12 million. The Company
continues to evaluate share repurchases as part of its capital allocation strategy.

Commitments
The following table shows a schedule of the Company's material cash commitments as of October 29, 2023:
Payments Due by Periods

Less than 1 More than 5

Total 1-3 years 3-5 years
In millions year years

Purchase Commitments(1) $ 2,763 $ 1,229 $ 1,178 $ 298 $ 59

(2)
Debt Repayments 3,300 950 — 750 1,600
(2)
Interest Payments on Long-term Debt 708 55 98 98 457
Pension & Other Post-retirement Benefit Payments(3) 1,138 104 217 227 590
(4)
Lease Obligations 194 41 69 47 36
(5)
Other Commitments 110 51 59 — —
(1) The Company commits to purchase quantities of livestock, grain, and other raw materials to ensure a steady supply of production inputs. The Company uses
hedging programs to manage price risk associated with a portion of the future grain and hog commitments. The purchase commitments listed above do not
reflect the impact of the hedging instruments that manage the risk of fluctuating commodity markets. See Note F - Derivatives and Hedging and Note J -
Commitments and Contingencies of the Notes to the Consolidated Financial Statements for additional information.

(2) As of October 29, 2023, the Company’s outstanding debt included unsecured senior notes due in fiscal 2024, 2028, 2030, and 2051. The Company is required
by certain covenants in its debt agreements to maintain specified levels of financial ratios and financial position. See Note L - Long-Term Debt and Other
Borrowing Arrangements of the Notes to the Consolidated Financial Statements for additional information.

(3) Represents pension and other post-retirement benefit payments related to the Company's unfunded defined benefit plans. Benefit payments reflect
expectations for the next ten years as estimates are not readily available beyond that point. See Note G - Pension and Other Post-Retirement Benefits of the
Notes to the Consolidated Financial Statements for additional information.

(4) See Note K - Leases of the Notes to the Consolidated Financial Statements for additional detail. Lease payments exclude $31.2 million of legally binding
minimum lease payments for leases signed but not yet commenced.

(5) Includes obligations related to infrastructure improvements supporting various manufacturing facilities and a media advertising agreement.

Off Balance Sheet Arrangements

As of October 29, 2023, the Company had $48.6 million of standby letters of credit issued on its behalf. The standby letters of
credit are primarily related to the Company’s self-insured workers compensation programs. This amount includes revocable
standby letters of credit totaling $2.7 million for obligations of an affiliated party that may arise under workers compensation
claims. Letters of credit are not reflected on the Consolidated Statements of Financial Position.

CRITICAL ACCOUNTING ESTIMATES

Management's discussion and analysis of financial condition and results of operations is based upon the Company's
consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles.
The preparation of these financial statements requires the Company to make estimates, judgments, and assumptions that can

31
have a meaningful effect on the reporting of consolidated financial statements. See Note A - Summary of Significant Accounting
Policies of the Notes to the Consolidated Financial Statements for additional information.

Critical accounting estimates are defined as those reflective of significant judgments, estimates and uncertainties, which may
result in materially different results under different assumptions and conditions. The Company believes the following are its
critical accounting estimates:

Revenue Recognition
Description: The Company recognizes sales at the point in time when the performance obligation has been satisfied and control
of the product has transferred to the customer. Obligations for the Company are usually fulfilled once shipped product is received
or picked up by the customer. Revenue is recorded net of applicable provisions for discounts, returns, and allowances.

Judgments and Uncertainties: The Company offers various sales incentives to customers and consumers. Incentives offered
off-invoice include prompt pay allowances, will call allowances, spoilage allowances, and temporary price reductions. These
incentives are recognized as reductions of revenue at the time control is transferred. Coupons are used as an incentive for
consumers to purchase various products. The coupons reduce revenue at the time they are offered, based on estimated
redemption rates. Promotional contracts are performed by customers to promote the Company’s products to consumers. These
incentives reduce revenue at the time of performance through direct payments and accrued promotional funds. Accrued
promotional funds are unpaid liabilities for promotional contracts in process or completed at the end of a quarter or fiscal year.
Accruals with customers are based on defined performance.

Sensitivity of Estimate to Change: The liability relating to these agreements is based on a review of the outstanding contracts
on which performance has taken place but which the promotional payments relating to such contracts remain unpaid as of the
end of the fiscal year. The level of customer performance and the historical spend rate versus contracted rates are estimates
used to determine these liabilities.

Income Taxes
Description: The Company records income taxes in accordance with the liability method of accounting. Deferred taxes are
recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates
are reflected in the tax provision as they occur.

Judgments and Uncertainties: The Company computes its provision for income taxes based on the statutory tax rates and tax
planning opportunities available to it in the various jurisdictions in which it operates. Judgment is required in evaluating the
Company’s tax positions and determining its annual tax provision.

Sensitivity of Estimate to Change: While the Company considers all of its tax positions fully supportable, the Company is
occasionally challenged by various tax authorities regarding the amount of taxes due. The Company recognizes a tax position in
its financial statements when it is more likely than not the position will be sustained upon examination, based on its technical
merits. The position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon
ultimate settlement. A change in judgment related to the expected ultimate resolution of uncertain tax positions will be recognized
in earnings in the quarter of such change. As of October 29, 2023, the Company had $21.5 million of unrecognized tax benefits,
including estimated interest and penalties, recorded in Other Long-term Liabilities.

Business Combinations
Description: The Company accounts for business combinations using the acquisition method of accounting. The Company
allocates the purchase price of an acquired business to the assets acquired and liabilities assumed based upon their estimated
fair values at the acquisition date with the excess recorded as Goodwill.

Judgments and Uncertainties: The acquisition method of accounting requires the Company to make significant estimates and
assumptions regarding the fair value of the acquired assets. Fair value of the assets and liabilities acquired is determined
through established valuation techniques, such as the income, cost or market approach. The Company may utilize third-party
valuation experts to assist in the fair value determination. The fair value measurements of identifiable intangibles are based on
available historical information and expectations and assumptions about the future. Significant assumptions used to value
identifiable intangible assets may include projected revenue growth, estimated cash flows, discount rates, royalty rates, and
other factors.

Determining the useful life of an intangible asset also requires judgment. Certain acquired brands are expected to have indefinite
lives based on their history and the Company’s intent to continue to support and build the brands. Other acquired assets, such as
customer relationships, are expected to have determinable useful lives.

Sensitivity of Estimate to Change: The Company did not have any business combinations in fiscal 2023 and 2022. On June 7,
2021, the Company acquired the Planters® snack nuts business for $3.4 billion and used a third-party valuation specialist to
perform the valuation of the assets acquired. Refer to Note B - Acquisitions and Divestitures of the Notes to the Consolidated

32
Financial Statements for additional information. The Company acquired trade names which were determined to have a fair value
of $712.0 million. Key assumptions used to calculate the fair value of the trade names using a relief from royalty model included
revenue projections, royalty rates, and discount rates. The Company also identified customer relationships which were assigned
a fair value of $51.0 million using the distributor method under the income approach. Assumptions in valuing this asset included
future earnings projections, customer attrition rate, and discount rate, among others. The Company believes the estimates
applied are based on reasonable assumptions, but which are inherently uncertain. As a result, actual results may differ from the
assumptions and judgments used to determine fair value of the assets acquired, which could result in material impairment losses
in the future.

Goodwill and Other Indefinite-Lived Intangibles

Description: Other indefinite-lived intangible assets primarily include trade names obtained through business acquisitions which
are originally recorded at their estimated fair values at the date of acquisition. Goodwill is the residual after allocating the
purchase price to net assets acquired and is allocated across the Company’s reporting units: Retail, Foodservice, and
International. Goodwill and indefinite-lived intangible assets are not amortized but tested annually for impairment, or more
frequently if impairment indicators arise. If the carrying value of these assets exceeds the estimated fair value, the asset is
considered impaired which requires a reduction to earnings. See Note A - Summary of Significant Accounting Policies of the
Notes to the Consolidated Financial Statements for additional details regarding the Company’s procedures.

Judgments and Uncertainties: Determining whether impairment indicators exist and estimating the fair value of the Company’s
goodwill reporting units and intangible assets for impairment testing requires significant judgment. Indefinite-lived trade names
are evaluated for impairment using an income approach utilizing the relief from royalty method. Significant assumptions include
royalty rate, annual projected revenue, discount rate, and estimated long-term growth rate. Estimating the fair value of goodwill
reporting units using the discounted cash flow model requires management to make assumptions and projections of future cash
flows, revenues, earnings, discount rates, long-term growth rates, and other factors.

Sensitivity of Estimate to Change: The assumptions used to assess impairment consider historical trends, macroeconomic
conditions, and projections consistent with the Company’s operating strategy. Changes in these estimates can have a significant
impact on the assessment of fair value which could result in material impairment losses.

As a result of organizational changes in the first quarter of fiscal 2023, 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. Prior to the
goodwill reallocation, an impairment assessment was performed which indicated no impairment to the Company's reporting units.
Subsequent to the goodwill reallocation, the Company completed quantitative impairment testing on each new reporting unit. The
estimated fair value of each goodwill reporting unit exceeded the calculated carrying value by more than 50 percent. During the
fourth quarter of fiscal 2023, the Company performed a qualitative assessment of goodwill. No goodwill impairment charges were
recorded as a result of the assessment. Based on the quantitative testing performed in the first quarter of fiscal 2023, a 10
percent decline in projected cash flows or 10 percent increase in the discount rate would not result in an impairment.

The Company also performed a qualitative impairment assessment for indefinite-lived intangible assets in the fourth quarter of
fiscal 2023. As a result of the qualitative assessment, it was determined that it was more likely than not the Justin's® trade name
was impaired, and the Company performed a quantitative impairment test. As a result of the quantitative impairment test, a
$28.4 million intangible asset impairment charge was recorded for the Justin's® trade name. No other impairment charges were
recorded as a result of the qualitative assessment. The Company last completed quantitative testing for the other indefinite-lived
intangible assets in fiscal 2021 and the estimated fair value of each indefinite-lived intangible asset exceeded the carrying value
by more than 10 percent. Based on the fiscal 2021 testing, a 10 percent decline in forecasted revenue or 10 percent increase in
the discount rate would not result in a material impairment. Based on the fiscal 2023 quantitative impairment test, a 10 percent
decline in forecasted revenue or 10 percent increase in the discount rate used for the Justin's® trade name would not result in
additional material impairment.

Pension and Other Post-Retirement Benefits

Description: The Company sponsors several defined benefit pension and post-retirement health care benefit plans and
recognizes the associated expenses, assets, and liabilities.

Judgments and Uncertainties: In accounting for these employment costs and the associated benefit obligations, management
must make a variety of assumptions and estimates including mortality rates, discount rates, compensation increases, expected
return on plan assets, health care cost trend rates, and interest crediting rates. The Company considers historical data as well as
current facts and circumstances when determining these estimates. Expected long-term rate of return on plan assets is based on
fair value, composition of the asset portfolio, historical long-term rates of return, and estimates of future performance. Mortality
and discount rates used are based on actuarial tables elected at each fiscal year-end. The Company uses third-party specialists
to assist in the determination of these estimates and the calculation of certain employee benefit expenses and the outstanding
obligation.

33
Benefit plan assets are stated at fair value. Due to the lack of readily available market prices, private equity investments are
valued by models using a combination of available market data and unobservable inputs that consider earnings multiples,
discounted cash flows, and other qualitative and quantitative factors. Other benefit plan investments are measured at Net Asset
Value (NAV) per share of the fund's underlying investments as a practical expedient.

Sensitivity of Estimate to Change: The assumed discount rate, expected long-term rate of return on plan assets, rate of future
compensation increase, interest crediting rate, and the health care cost trend rate have a significant impact on the amounts
reported for the benefit plans. For the year ended October 29, 2023, the Company had $1.2 billion and $186.2 million in pension
benefit obligation and post-retirement benefit obligation, respectively. For fiscal 2024, the Company expects pension benefit
costs of $44.3 million and post-retirement benefit costs of $10.5 million. A one-percentage-point change in these rates would
have the following effects:
One-Percentage-Point
Benefit Cost Benefit Obligation
In millions Increase Decrease Increase Decrease
Pension Benefits
Discount Rate $ (11.0) $ 13.0 $ (108.5) $ 129.7
Expected Long-term Rate of Return on Plan Assets (11.5) 11.5 — —
Rate of Future Compensation Increase 1.7 (1.5) 1.0 (1.3)
Interest Crediting Rate 4.3 (3.6) 11.6 (10.2)
Post-retirement Benefits
Discount Rate $ (0.2) $ 0.3 $ (12.4) $ 14.3
Health Care Cost Trend Rate 1.0 (0.9) 14.3 (12.6)

As of October 29, 2023, the Company had $79.4 million and $638.4 million of private equity and NAV investments, respectively.
These valuations are subject to judgments and assumptions of the funds which may prove to be incorrect, resulting in risks of
incorrect valuation of these investments. The Company seeks to mitigate these risks by evaluating the appropriateness of the
funds’ judgments and assumptions by reviewing the financial data included in the funds’ financial statements. The Company also
holds quarterly meetings with the investment adviser to review fund performance, which include comparisons to the relevant
indices. On an annual basis, the Company performs pricing tests on certain underlying investments to gain additional assurance
of the reliability of values received from the fund manager.

See Note G - Pension and Other Post-Retirement Benefits of the Notes to the Consolidated Financial Statements for additional
information.

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to various forms of market risk as a part of its ongoing business practices. The Company utilizes
derivative instruments to mitigate earnings fluctuations due to market volatility.

Commodity Price Risk: The Company is subject to commodity price risk primarily through grain, lean hog, and natural gas
markets. To reduce these exposures and offset the fluctuations caused by changes in market conditions, the Company employs
hedging programs. These programs utilize futures, swaps, and options contracts and are accounted for as cash flow hedges.
The fair value of the Company’s cash flow commodity contracts as of October 29, 2023, was $17.1 million compared to $21.6
million as of October 30, 2022. The Company measures its market risk exposure on its cash flow commodity contracts using a
sensitivity analysis, which considers a hypothetical 10 percent change in the market prices. A 10 percent decrease in the market
price would have negatively impacted the fair value of the Company's cash flow commodity contracts as of October 29, 2023, by
$26.3 million, which in turn would lower the Company's future cost on purchased commodities by a similar amount.

Interest Rate Risk: The Company is subject to interest rate risk primarily from changes in fair value of long-term fixed rate debt.
As of October 29, 2023, the Company’s long-term debt had a fair value of $2.7 billion compared to $2.7 billion as of October 30,
2022. The Company measures its market risk exposure of long-term fixed rate debt using a sensitivity analysis, which considers
a 10 percent change in interest rates. A 10 percent decrease in interest rates would have positively impacted the fair value of the
Company’s long-term debt as of October 29, 2023, by $83.6 million. A 10 percent increase would have negatively impacted the
long-term debt by $77.5 million.

Foreign Currency Exchange Rate Risk: The fair values of certain assets are subject to fluctuations in foreign currency
exchange rates. The Company's net asset position in foreign currencies as of October 29, 2023, was $1.1 billion, compared to
$652.4 million as of October 30, 2022, with most of the exposure existing in Indonesian rupiah, Chinese yuan, and Brazilian real.
The Company currently does not use market risk sensitive instruments to manage this risk.

Investment Risk: The Company has corporate-owned life insurance policies classified as trading securities as part of a rabbi
trust to fund certain supplemental executive retirement plans and deferred income plans. As of October 29, 2023, the balance of

34
these securities totaled $188.2 million compared to $186.2 million as of October 30, 2022. The rabbi trust is invested primarily in
fixed income funds. The Company is subject to market risk due to fluctuations in the value of the remaining investments as
unrealized gains and losses associated with these securities are included in the Company’s net earnings on a mark-to-market
basis. A 10 percent decline in the value of the investments not held in fixed income funds would have negatively impacted the
Company’s pretax earnings by approximately $7.8 million, while a 10 percent increase in value would have a positive impact of
the same amount.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Management

Management’s Responsibility for Financial Statements

The accompanying financial statements were prepared by the management of Hormel Foods Corporation which is responsible
for their integrity and objectivity. These statements have been prepared in accordance with U.S. generally accepted accounting
principles appropriate in the circumstances and, as such, include amounts that are based on our best estimates and judgments.

Hormel Foods Corporation has developed a system of internal controls designed to assure that the records reflect the
transactions of the Company and that the established policies and procedures are adhered to. This system is augmented by
well-communicated written policies and procedures, a strong program of internal audit and well-qualified personnel.

These financial statements have been audited by Ernst & Young LLP, an independent registered public accounting firm, and their
report is included herein. The audit was conducted in accordance with the standards of the U.S. Public Company Accounting
Oversight Board and includes a review of the Company’s accounting and financial controls and tests of transactions.

The Audit Committee of the Board of Directors, composed solely of outside directors, meets periodically with the independent
auditors, management, and the internal auditors to assure that each is carrying out its responsibilities. Both Ernst & Young LLP
and our internal auditors have full and free access to the Audit Committee, with or without the presence of management, to
discuss the results of their audit work and their opinions on the adequacy of internal controls and the quality of financial reporting.

Management’s Report on Internal Control Over Financial Reporting

Management of Hormel Foods Corporation is responsible for establishing and maintaining adequate internal control over
financial reporting for the Company, as such term is defined in Exchange Act Rule 13a–15(f). The Company’s internal control
system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting standards. Under the supervision, and with
the participation of management, including the Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of
the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework).

Based on our evaluation under the framework in Internal Control - Integrated Framework, we concluded that our internal control
over financial reporting was effective as of October 29, 2023. Our internal control over financial reporting as of October 29, 2023,
has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is
included herein.

/s/ James P. Snee /s/ Jacinth C. Smiley

James P. Snee Jacinth C. Smiley
Chairman of the Board, Executive Vice President
President and Chief Executive Officer and Chief Financial Officer

35
Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Hormel Foods Corporation

Opinion on Internal Control Over Financial Reporting

We have audited Hormel Foods Corporation’s internal control over financial reporting as of October 29, 2023, based on criteria
established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (2013 framework) (the COSO criteria). In our opinion, Hormel Foods Corporation (the Company) maintained, in all
material respects, effective internal control over financial reporting as of October 29, 2023, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated statements of financial position of the Company as of October 29, 2023 and October 30, 2022, the
related consolidated statements of operations, comprehensive income, changes in shareholders’ investment and cash flows for
each of the three years in the period ended October 29, 2023 and the related notes and schedule listed in the Index at Item 15
and our report dated December 6, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report
on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over
financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk,
and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Minneapolis, Minnesota
December 6, 2023

36
Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Hormel Foods Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of Hormel Foods Corporation (the Company)
as of October 29, 2023 and October 30, 2022, the related consolidated statements of operations, comprehensive income,
changes in shareholders’ investment and cash flows for each of the three years in the period ended October 29, 2023 and the
related notes and financial statement schedule listed in the Index at Item 15 (collectively referred to as the consolidated financial
statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of
the Company at October 29, 2023 and October 30, 2022, and the results of its operations and its cash flows for each of the three
years in the period ended October 29, 2023, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of October 29, 2023, based on criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) and our report dated December 6, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are
material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The
communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken
as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit
matter or on the account or disclosure to which it relates.

Valuation of Alternative Investments — Pension Assets

Description of the At October 29, 2023, the Company had $1.2 billion in plan assets related to the defined benefit
Matter pension plans. Approximately 61% of the total pension assets are in private equity funds, real
estate – domestic funds, global stocks – collective investment funds, global stocks – gold funds,
hedge funds, fixed income – hedge funds, and fixed income – collective investment funds. These
types of investments are referred to as “alternative investments.” As documented in the notes of
the financial statements, these alternative investments are valued at net asset value (NAV) or are
valued using significant unobservable inputs.

Auditing the fair value of these alternative investments is challenging because of the higher
estimation uncertainty of the inputs to the fair value calculations, including the underlying NAVs,
discounted cash flow valuations, comparable market valuations, and adjustments for currency,
credit liquidity and other risks. Additionally, certain information regarding the fair value of these
alternative investments is based on unaudited information available to management at the time of
valuation.

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 Valuation of Alternative Investments — Pension Assets

How We Addressed the We obtained an understanding, evaluated the design and tested the operating effectiveness of
Matter in Our Audit controls addressing the risk of material misstatement relating to valuation of alternative
investments. This included testing management's review controls over the valuation of alternative
investments, for example, a review of fund performance in comparison to the selected benchmark
and meetings with the investment advisor on a quarterly basis to review market performance and
fund returns in comparison with relevant indices and the investment policy. We also tested
management’s independent price testing of underlying investments performed for certain
investments on a quarterly basis.

Our audit procedures included, among others, inquiring of management and the investment
advisor regarding changes to the investment portfolio and investment strategies. We confirmed the
fair value of the investments and ownership interest directly with the fund managers. We inspected
the trust statement for observable transactions near year end to compare to the estimated fair
value. We also obtained the latest audited financial statements for certain investments, performed
a rollforward of the investment balance to compute an estimated market return on investment, and
compared the market return to relevant benchmarks.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 1931.
Minneapolis, Minnesota
December 6, 2023

38
Consolidated Statements of Operations
Fiscal Year Ended
October 29, October 30, October 31,
In thousands, except per share amounts 2023 2022 2021
Net Sales $ 12,110,010 $ 12,458,806 $ 11,386,189
Cost of Products Sold 10,110,169 10,294,120 9,458,283
Gross Profit 1,999,841 2,164,686 1,927,906
Selling, General, and Administrative 942,167 879,265 853,071
Equity in Earnings of Affiliates 42,754 27,185 47,763
Goodwill and Intangible Impairment 28,383 — —
Operating Income 1,072,046 1,312,607 1,122,599
Interest and Investment Income 14,828 28,012 46,878
Interest Expense 73,402 62,515 43,307
Earnings Before Income Taxes 1,013,472 1,278,103 1,126,170
Provision for Income Taxes 220,552 277,877 217,029
Net Earnings 792,920 1,000,226 909,140
Less: Net Earnings (Loss) Attributable to Noncontrolling Interest (653) 239 301
Net Earnings Attributable to Hormel Foods Corporation $ 793,572 $ 999,987 $ 908,839

Net Earnings Per Share:

Basic $ 1.45 $ 1.84 $ 1.68
Diluted $ 1.45 $ 1.82 $ 1.66
Weighted-average Shares Outstanding:
Basic 546,421 544,918 541,114
Diluted 548,982 549,566 547,580

See Notes to the Consolidated Financial Statements

39
Consolidated Statements of Comprehensive Income
Fiscal Year Ended
October 29, October 30, October 31,
In thousands 2023 2022 2021

Net Earnings $ 792,920 $ 1,000,226 $ 909,140

Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation 3,588 (39,393) 13,379
Pension and Other Benefits 11,632 65,587 71,967
Derivatives and Hedging (38,940) (5,267) 33,034
Equity Method Investments 6,847 — —
Total Other Comprehensive Income (Loss) (16,874) 20,927 118,380
Comprehensive Income 776,045 1,021,153 1,027,520
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest (836) (542) 700
Comprehensive Income Attributable to Hormel Foods Corporation $ 776,881 $ 1,021,695 $ 1,026,820

See Notes to the Consolidated Financial Statements

40
Consolidated Statements of Financial Position
October 29, October 30,
In thousands, except share and per share amounts 2023 2022
Assets
Cash and Cash Equivalents $ 736,532 $ 982,107
Short-term Marketable Securities 16,664 16,149
Accounts Receivable (Net of Allowance for Doubtful Accounts of $3,557
at October 29, 2023 and $3,507 at October 30, 2022) 817,391 867,593
Inventories 1,680,406 1,716,059
Taxes Receivable 7,242 7,177
Prepaid Expenses and Other Current Assets 39,014 48,041
Total Current Assets 3,297,249 3,637,125
Goodwill 4,928,464 4,925,829
Other Intangibles 1,757,171 1,803,027
Pension Assets 204,697 245,566
Investments in Affiliates 725,121 271,058
Other Assets 370,252 283,169
Property, Plant, and Equipment
Land 74,626 74,303
Buildings 1,458,354 1,398,255
Equipment 2,781,730 2,636,660
Construction in Progress 195,665 216,246
Less: Allowance for Depreciation (2,344,557) (2,184,319)
Net Property, Plant, and Equipment 2,165,818 2,141,146
Total Assets $ 13,448,772 $ 13,306,919
Liabilities and Shareholders’ Investment
Accounts Payable $ 771,397 $ 816,604
Accrued Expenses 51,679 58,801
Accrued Marketing Expenses 87,452 113,105
Employee-Related Expenses 263,330 279,072
Interest and Dividends Payable 172,178 163,963
Taxes Payable 15,212 32,925
Current Maturities of Long-term Debt 950,529 8,796
Total Current Liabilities 2,311,776 1,473,266
Long-term Debt Less Current Maturities 2,358,719 3,290,549
Pension and Post-retirement Benefits 349,268 385,832
Deferred Income Taxes 498,106 475,212
Other Long-term Liabilities 191,917 141,840
Shareholders’ Investment
Preferred Stock, Par Value $0.01 a Share — Authorized 160,000,000 Shares;
Issued — None — —
Common Stock, Nonvoting, Par Value $0.01 a Share —
Authorized 400,000,000 Shares; Issued — None — —
Common Stock, Par Value $0.01465 a Share — Authorized 1,600,000,000 Shares;
Issued 546,599,420 Shares October 29, 2023
Issued 546,237,051 Shares October 30, 2022 8,007 8,002
Additional Paid-in Capital 506,179 469,468
Accumulated Other Comprehensive Loss (272,252) (255,561)
Retained Earnings 7,492,952 7,313,374
Hormel Foods Corporation Shareholders’ Investment 7,734,885 7,535,284
Noncontrolling Interest 4,100 4,936
Total Shareholders’ Investment 7,738,985 7,540,219
Total Liabilities and Shareholders’ Investment $ 13,448,772 $ 13,306,919

See Notes to the Consolidated Financial Statements

41
Consolidated Statements of Changes in Shareholders’ Investment
Hormel Foods Corporation Shareholders

Accumulated
In thousands, except per Common Stock Treasury Stock Additional Other Non- Total
Paid-In Retained Comprehensive controlling Shareholders’
share amounts Shares Amount Shares Amount Capital Earnings Income (Loss) Interest Investment
Balance at October 25, 2020 539,887 $ 7,909 — $ — $ 289,554 $ 6,523,335 $ (395,250) $ 4,778 $ 6,430,326
Net Earnings 908,839 301 909,140
Other Comprehensive Income
(Loss) 117,981 399 118,380
Purchases of Common Stock (469) (19,958) (19,958)
Stock-based Compensation
Expense 38 1 24,743 24,744
Exercise of Stock Options/
Restricted Shares 2,956 43 46,326 46,369
Shares Retired (469) (7) 469 19,958 (287) (19,664) —
Declared Dividends —
$0.98 per Share (530,640) (530,640)
Balance at October 31, 2021 542,412 $ 7,946 — $ — $ 360,336 $ 6,881,870 $ (277,269) $ 5,478 $ 6,978,360
Net Earnings 999,987 239 1,000,226
Other Comprehensive Income
(Loss) 21,708 (782) 20,927
Stock-based Compensation
Expense 37 1 27,786 27,786
Exercise of Stock Options/
Restricted Shares 3,787 55 79,871 79,927
Declared Dividends —
$1.04 per Share 1,475 (568,482) (567,007)
Balance at October 30, 2022 546,237 $ 8,002 — $ — $ 469,468 $ 7,313,374 $ (255,561) $ 4,936 $ 7,540,219
Net Earnings 793,572 (653) 792,920
Other Comprehensive Income
(Loss) (16,691) (183) (16,874)
Purchases of Common Stock (310) (12,303) (12,303)
Stock-based Compensation
Expense 44 — 24,077 24,077
Exercise of Stock Options/
Restricted Shares 629 9 12,009 12,018
Shares Retired (310) (5) 310 12,303 (277) (12,021) —
Declared Dividends —
$1.10 per Share 902 (601,974) (601,072)
Balance at October 29, 2023 546,599 $ 8,007 — $ — $ 506,179 $ 7,492,952 $ (272,252) $ 4,100 $ 7,738,985

See Notes to the Consolidated Financial Statements

42
Consolidated Statements of Cash Flows
Fiscal Year Ended
October 29, October 30, October 31,
In thousands 2023 2022 2021
Operating Activities
Net Earnings $ 792,920 $ 1,000,226 $ 909,140
Adjustments to Reconcile to Net Cash Provided by
(Used in) Operating Activities:
Depreciation 227,331 213,026 183,772
Amortization 25,980 22,859 25,537
Equity in Earnings of Affiliates (42,754) (27,185) (47,763)
Distributions Received from Equity Method Investees 38,160 43,039 44,999
Provision for Deferred Income Taxes 31,794 177,000 28,677
Non-cash Investment Activities (2,392) 19,298 (24,215)
Stock-based Compensation Expense 24,077 24,943 24,744
Operating Lease Cost 29,072 20,633 16,699
Goodwill and Intangible Impairment 28,383 — —
Other Non-cash, Net 20,034 12,931 6,129
Changes in Operating Assets and Liabilities, Net of Acquisitions:
Decrease (Increase) in Accounts Receivable 48,998 28,365 (191,627)
Decrease (Increase) in Inventories 35,714 (351,663) (145,176)
Decrease (Increase) in Prepaid Expenses and Other Assets (68,666) (15,460) 34,555
Increase (Decrease) in Pension and Post-retirement Benefits 18,272 (29,392) (15,448)
Increase (Decrease) in Accounts Payable and Accrued Expenses (140,519) (14,511) 115,099
Increase (Decrease) in Net Income Taxes Payable (18,557) 10,869 36,811
Net Cash Provided by (Used in) Operating Activities 1,047,847 1,134,977 1,001,934
Investing Activities
Net (Purchase) Sale of Securities (42) 2,493 (4,364)
Acquisitions of Businesses and Intangibles — — (3,396,246)
Purchases of Property, Plant, and Equipment (270,211) (278,918) (232,416)
Proceeds from Sales of Property, Plant, and Equipment 5,322 1,224 2,216
Proceeds from (Purchases of) Affiliates and Other Investments (427,709) 2,404 (343)
Proceeds from Company-owned Life Insurance 3,096 14,761 5,315
Net Cash Provided by (Used in) Investing Activities (689,544) (258,037) (3,625,839)
Financing Activities
Proceeds from Long-term Debt 1,980 — 2,276,292
Repayments of Long-term Debt and Finance Leases (8,827) (8,673) (258,617)
Dividends Paid on Common Stock (592,932) (557,839) (523,114)
Share Repurchase (12,303) — (19,958)
Proceeds from Exercise of Stock Options 12,018 79,827 45,919
Net Cash Provided by (Used in) Financing Activities (600,064) (486,684) 1,520,520
Effect of Exchange Rate Changes on Cash (3,814) (21,679) 2,606
Increase (Decrease) in Cash and Cash Equivalents (245,575) 368,577 (1,100,778)
Cash and Cash Equivalents at Beginning of Year 982,107 613,530 1,714,309
Cash and Cash Equivalents at End of Year $ 736,532 $ 982,107 $ 613,530

See Notes to the Consolidated Financial Statements

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Notes to the Consolidated Financial Statements

Note A
Summary of Significant Accounting Policies

Principles of Consolidation: The Consolidated Financial Statements include the accounts of Hormel Foods Corporation (the
Company) and all its majority-owned subsidiaries after elimination of intercompany accounts, transactions, and profits.

Use of Estimates: The preparation of 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 financial statements and
accompanying notes. Actual results could differ from those estimates.

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.

Fiscal Year: The Company’s fiscal year ends on the last Sunday in October. Fiscal years 2023 and 2022 consisted of 52 weeks.
Fiscal year 2021 consisted of 53 weeks. Fiscal year 2024 will consist of 52 weeks.

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.

Cash and Cash Equivalents: The Company considers all investments with an original maturity of three months or less on their
acquisition date to be cash equivalents. The Company’s cash equivalents as of October 29, 2023 and October 30, 2022,
consisted primarily of bank deposits, money market funds rated AAA, or other highly liquid investment accounts. The Net Asset
Value (NAV) of the Company’s money market funds is based on the market value of the securities in the portfolio.

Fair Value Measurements: Pursuant to the provisions of Accounting Standards Codification (ASC) 820, Fair Value
Measurements and Disclosures, the Company measures certain assets and liabilities at fair value or discloses the fair value of
certain assets and liabilities recorded at cost in the Consolidated Financial Statements. Fair value is calculated as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date (an exit price). ASC 820 establishes a fair value hierarchy which requires assets and liabilities measured at
fair value to be categorized into one of three levels based on the inputs used in the valuation. The Company classifies assets
and liabilities in their entirety based on the lowest level of input significant to the fair value measurement. The three levels are
defined as follows:

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.

See additional discussion regarding the Company’s fair value measurements in Note F - Derivatives and Hedging, Note G -
Pension and Other Post-Retirement Benefits, and Note I - Fair Value Measurements.

Compensation: The Company maintains a rabbi trust to fund certain supplemental executive retirement plans and deferred
compensation plans. Under the plans, participants can defer certain types of compensation and elect to receive a return on the
deferred amounts based on the changes in fair value of various investment options, primarily a variety of mutual funds. The
Company has corporate-owned life insurance policies on certain participants in the deferred compensation plans. The cash
surrender value of the policies is included in Other Assets on the Consolidated Statements of Financial Position. The securities
held by the trust are classified as trading securities. Therefore, unrealized gains and losses associated with these investments

44
are included in the Company’s earnings. Securities held by the trust generated gains (losses) of $3.2 million, $(16.8) million, and
$21.2 million for fiscal years 2023, 2022, and 2021, respectively.

Inventories: Inventories are stated at the lower of cost or net realizable value. Cost is determined principally under the average
cost method. Adjustments to the Company’s lower of cost or net realizable value inventory reserve are reflected in Cost of
Products Sold in the Consolidated Statements of Operations.

Property, Plant, and Equipment: Property, Plant, and Equipment are stated at cost. The Company uses the straight-line
method in computing depreciation. The annual provisions for depreciation have been computed principally using the following
ranges of asset lives: buildings 20 to 40 years, and equipment 3 to 14 years.

Leases: The Company determines if an arrangement contains a lease at inception. Right-of-use assets and lease liabilities are
recognized based on the present value of future minimum lease payments over the lease term at the commencement date.
Leases with an initial term of twelve months or less are not recorded on the Consolidated Statements of Financial Position. The
Company combines lease and non-lease components together in determining the minimum lease payments for all leases.

The length of the lease term used in recording right-of-use assets and lease liabilities is based on the contractually required
lease term adjusted for any options to renew, early terminate, or purchase the lease that are reasonably certain of being
exercised. Most leases include one or more options to renew or terminate. The exercise of lease renewal and termination options
is at the Company’s discretion and generally is not reasonably certain at lease commencement. The Company’s lease
agreements typically do not contain material residual value guarantees. The Company has one lease with an immaterial residual
value guarantee that is included in the minimum lease payments.

Certain lease agreements include rental payment increases over the lease term that can be fixed or variable. Fixed payment
increases and variable payment increases based on an index or rate are included in the initial lease liability using the index or
rate at commencement date. Variable payment increases not based on an index or rate are recognized as incurred.

If the rate implicit in the lease is not readily determinable, the Company used its periodic incremental borrowing rate, based on
the information available at commencement date, to determine the present value of future lease payments. Leases and right-of-
use assets that existed prior to the adoption of Accounting Standards Update 2016-02, Leases (Topic 842) were valued using the
incremental borrowing rate on October 28, 2019.

Impairment of Long-Lived Assets and Definite-Lived Intangible Assets: Definite-lived intangible assets are amortized over
their estimated useful lives. The Company reviews long-lived assets and definite-lived intangible assets for impairment annually,
or more frequently when events or changes in circumstances indicate that the carrying amount of an asset may not be
recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying
value of the assets and any related goodwill, the carrying value is reduced to the estimated fair value. The Company recorded no
material impairment charges for long-lived or definite-lived assets in fiscal years 2023, 2022, or 2021.

Goodwill and Other Indefinite-Lived Intangibles: Indefinite-lived intangible assets are originally recorded at their estimated fair
values at date of acquisition. Goodwill is the residual after allocating the purchase price to net assets acquired. Acquired goodwill
and other indefinite-lived intangible assets are allocated to reporting units that will receive the related benefits. Goodwill and
indefinite-lived intangible assets are tested annually for impairment during the fourth quarter following the annual planning
process or more frequently if impairment indicators arise.

See additional discussion regarding the Company’s goodwill and intangible assets in Note C - Goodwill and Intangible Assets.

Goodwill
In conducting the annual impairment test for goodwill, the Company has the option to first assess qualitative factors to
determine whether it is more likely than not (> 50 percent likelihood) the fair value of any reporting unit is less than its
carrying amount. If the Company elects to perform a qualitative assessment and determines an impairment is more likely
than not, the Company is required to perform a quantitative impairment test. Otherwise, no further analysis is required.
Alternatively, the Company may elect to proceed directly to the quantitative impairment test.

In conducting a qualitative assessment, the Company analyzes actual and projected growth trends for net sales, gross
margin and segment profit for each reporting unit, as well as historical performance versus plan and the results of prior
quantitative tests. Additionally, the Company assesses factors that may impact the business's financial results such as
macroeconomic conditions and the related impact, market-related exposures, plans to market for sale all or a portion of the
business, competitive changes, new or discontinued product lines, and changes in key personnel.

If performed, the quantitative goodwill impairment test is performed at the reporting unit level. First, the fair value of each
reporting unit is compared to its corresponding carrying value, including goodwill. The fair value of each reporting unit is
estimated using discounted cash flow valuations (Level 3), which incorporate assumptions regarding future growth rates,
terminal values and discount rates. The estimates and assumptions used consider historical performance and are consistent

45
 with the assumptions used in determining future profit plans for each reporting unit, which are approved by the Company’s
Board of Directors. If the quantitative assessment results in the carrying value exceeding the fair value of any reporting unit,
the results from the quantitative analysis will be relied upon to determine both the existence and amount of goodwill
impairment. An impairment loss will be recognized for the amount by which the reporting unit’s carrying amount exceeds its
fair value, not to exceed the carrying amount of goodwill in that reporting unit.

As a result of organizational changes in the first quarter of fiscal 2023, 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. Prior to the goodwill reallocation, an impairment assessment was performed which indicated no impairment to the
Company's reporting units. Subsequent to the goodwill reallocation, the Company completed quantitative impairment testing
on each new reporting unit. The fair value of each reporting unit exceeded its carrying amount; therefore, no impairment
charges were recorded.

During the fourth quarter of fiscal 2023, the Company completed its annual goodwill impairment tests and performed
qualitative assessments. No impairment charges were recorded as a result of the annual assessments in fiscal years 2023,
2022, and 2021.

Indefinite-Lived Intangibles
In conducting the annual impairment test for its indefinite-lived intangible assets, the Company first performs a qualitative
assessment to determine whether it is more likely than not (> 50 percent likelihood) an indefinite-lived intangible asset is
impaired. If the Company concludes this is the case, a quantitative test for impairment must be performed. Otherwise, the
Company does not need to perform a quantitative test.

In conducting the qualitative assessment, the Company analyzes growth rates for historical and projected net sales and the
results of prior quantitative tests. Additionally, each operating segment assesses items that may impact the value of their
intangible assets or the applicable royalty rates to determine if impairment may be indicated.

If performed, the quantitative impairment test compares the fair value and carrying amount of the indefinite-lived intangible
asset. The fair value of indefinite-lived intangible assets is primarily determined on the basis of estimated discounted value
using the relief from royalty method (Level 3), which incorporates assumptions regarding future sales projections, discount
rates and royalty rates. If the carrying amount exceeds fair value, the indefinite-lived intangible asset is considered impaired,
and an impairment charge is recorded for the difference. Even if not required, the Company may elect to perform the
quantitative test in order to gain further assurance in the qualitative assessment.

During the fourth quarter of fiscal 2023, the Company completed its annual indefinite-lived asset impairment tests by
performing qualitative assessments. As a result of the qualitative assessments, it was determined that more likely than not
the Justin's® trade name was impaired, and the Company performed a quantitative impairment test. As a result of the
quantitative impairment test, a $28.4 million intangible asset impairment charge was recorded for the Justin's® trade name.
No other impairment charges were recorded as a result of the qualitative assessments in fiscal years 2023 and 2022 and
quantitative assessments in fiscal year 2021.

Pension and Other Post-retirement Benefits: The Company has elected to use the corridor approach to recognize expenses
related to its defined benefit pension and other post-retirement benefit plans. Under the corridor approach, actuarial gains or
losses resulting from experience and changes in assumptions are deferred and amortized over future periods. For the defined
benefit pension plans, the unrecognized gains and losses are amortized when the net gain or loss exceeds 10 percent of the
greater of the projected benefit obligation or the fair value of plan assets at the beginning of the year. For the other post-
retirement plans, the unrecognized gains and losses are amortized when the net gain or loss exceeds 10 percent of the
accumulated pension benefit obligation at the beginning of the year. For plans with primarily active participants, net gains or
losses in excess of the corridor are amortized over the average remaining service period of participating employees expected to
receive benefits under those plans. For plans with primarily inactive participants, net gains or losses in excess of the corridor are
amortized over the average remaining life of the participants receiving benefits under those plans.

Contingent Liabilities: The Company may be subject to investigations, legal proceedings, or claims related to the ongoing
operation of its business, including claims both by and against the Company. Such proceedings typically involve claims related to
product liability, contract disputes, antitrust regulations, wage and hour laws, employment practices, or other actions brought by
employees, consumers, competitors or suppliers. The Company establishes accruals for its potential exposure for claims when
losses become probable and reasonably estimable. Where the Company is able to reasonably estimate a range of potential
losses, the Company records the amount within that range which constitutes the Company’s best estimate. The Company also
discloses the nature of and range of loss for claims against the Company when losses are reasonably possible and material.

Foreign Currency Translation: Assets and liabilities denominated in foreign currency are translated at the current exchange
rate as of the date of the Consolidated Statements of Financial Position. Amounts in the Consolidated Statements of Operations

46
are translated at the average monthly exchange rate. Translation adjustments resulting from fluctuations in exchange rates are
recorded as a component of Accumulated Other Comprehensive Loss within Shareholders’ Investment.

When calculating foreign currency translation, the Company deemed its foreign investments to be permanent in nature and has
not provided for taxes on currency translation adjustments arising from converting the investment in a foreign currency to U.S.
dollars.

Derivatives and Hedging Activity: The Company uses derivative instruments to manage its exposure to commodity prices and
interest rates. The derivative instruments are recorded at fair value on the Consolidated Statements of Financial Position. The
cash flow impacts from the derivative instruments are primarily included in Operating Activities in the Consolidated Statements of
Cash Flows. Additional information on hedging activities is presented in Note F - Derivatives and Hedging.

Equity Method Investments: The Company has a number of investments for which its voting interests are in excess of 20
percent but not greater than 50 percent and for which there are no other indicators of control. The Company accounts for such
investments under the equity method of accounting and its underlying share of each investee’s equity, along with any balances
due to or from affiliates, is reported on the Consolidated Statements of Financial Position as part of Investments in Affiliates. The
Company records its interest in the net earnings of its equity method investments, along with adjustments for unrealized profits
on intra-entity transactions and amortization of basis differences, within Equity in Earnings of Affiliates in the Consolidated
Statements of Operations. Financial results for certain entities are reported on a 30- to 90-day lag.

The Company regularly monitors and evaluates the fair value of its equity investments. If events and circumstances, such as
ongoing or projected decreases in earnings or significant business disruptions, indicate that a decline in the fair value of these
assets has occurred and is other than temporary, the Company will record a charge in Equity in Earnings of Affiliates in the
Consolidated Statements of Operations. The Company recorded a $7.0 million impairment in fiscal 2023 related to a corporate
venturing investment. The Company did not record an impairment charge on any of its equity investments in fiscal 2022 or 2021.
See additional information pertaining to the Company’s equity method investments in Note D - Investments in Affiliates.

The Company uses the cumulative earnings approach to determine the cash flow presentation of distributions from equity
method investments. Distributions received are reflected in operating activities in the Consolidated Statements of Cash Flows
unless the cumulative distributions exceed the portion of the cumulative equity in earnings of the equity method investment.
Distributions in excess of the cumulative equity in earnings are deemed to be returns of the investment and classified as
investing activities in the Consolidated Statements of Cash Flows.

Revenue Recognition: The Company’s customer contracts predominantly contain a single performance obligation to fulfill
customer orders for the purchase of specified products. Revenue from product sales is primarily identified by purchase orders
(“contracts”), which in some cases are governed by a master sales agreement. The purchase orders in combination with the
invoice typically specify quantity and product(s) ordered, shipping terms, and certain aspects of the transaction price including
discounts. Contracts are at standalone pricing or governed by pricing lists or brackets. The Company's revenue is recognized at
the point in time when performance obligations have been satisfied and control of the product has transferred to the customer.
This is typically once the shipped product is received or picked up by the customer. Revenue is recognized at the net
consideration the Company expects to receive in exchange for the goods. The amount of net consideration recognized includes
estimates of variable consideration, including costs for trade promotion programs, consumer incentives, and allowances and
discounts associated with distressed or potentially unsaleable products.

A majority of the Company’s revenue is short-term in nature with shipments within one year from order date. The Company's
payment terms generally range between 7 to 45 days and vary by sales channel and other factors. The Company accounts for
shipping and handling costs as contract fulfillment costs and excludes taxes imposed on and collected from customers in
revenue producing transactions from the transaction price. The Company does not have significant deferred revenue or unbilled
receivable balances as a result of transactions with customers. Costs to obtain contracts with a duration of one year or less are
expensed and included in the Consolidated Statements of Operations.

The Company promotes products through advertising, consumer incentives, and trade promotions. These programs include
discounts, slotting fees, coupons, rebates, and in-store display incentives. Customer trade promotion and consumer incentive
activities are recorded as a reduction to the sale price based on amounts estimated as variable consideration. The Company
estimates variable consideration at the expected value method to determine the total consideration which the Company expects
to be entitled. Estimated amounts are included in the transaction price to the extent it is probable that a significant reversal of
cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The
Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction
price are based largely on an assessment of anticipated performance and all information (historical, current, and forecasted) that
is reasonably available.

The Company discloses revenue by reportable segment and class of similar product in Note P - Segment Reporting.

47
Allowance for Doubtful Accounts: The Company estimates the Allowance for Doubtful Accounts based on a combination of
factors, evaluations, and historical data while considering current and future economic conditions.

Advertising Expenses: Advertising costs are included in Selling, General, and Administrative and expensed when incurred.
Advertising expenses include all media advertising but exclude the costs associated with samples, demonstrations, and market
research. Advertising costs for fiscal years 2023, 2022, and 2021 were $160.1 million, $157.3 million, and $138.5 million,
respectively.

Shipping and Handling Costs: The Company’s shipping and handling expenses are included in Cost of Products Sold in the
Consolidated Statements of Operations.

Research and Development Expenses: Research and development costs are expensed as incurred and are included in
Selling, General, and Administrative expenses in the Consolidated Statements of Operations. Research and development
expenses incurred for fiscal years 2023, 2022, and 2021 were $33.7 million, $34.7 million, and $33.6 million, respectively.

Income Taxes: The Company records income taxes in accordance with the liability method of accounting. Deferred taxes are
recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates
are reflected in the tax provision as they occur.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position in its financial statements when it is more
likely than not that the position will be sustained upon examination based on the technical merits of the position. That position is
then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.

Stock-Based Compensation: The Company records stock-based compensation expense in accordance with ASC 718,
Compensation – Stock Compensation. For options subject to graded vesting, the Company recognizes stock-based
compensation expense ratably over the shorter of the vesting period or the individual's retirement eligibility date. The Company
estimates forfeitures at the time of grant based on historical experience and revises in subsequent periods if actual forfeitures
differ.

Share Repurchases: The Company may purchase shares of its common stock through open market and privately negotiated
transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under the
repurchase authorization depend on market conditions as well as corporate and regulatory considerations. For additional share
repurchases information, see Part II, Item 5 - Market for Registrants' Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities.

Supplemental Cash Flow Information: Non-cash investment activities presented in the Consolidated Statements of Cash
Flows primarily consist of unrealized gains or losses on the Company’s rabbi trust. The noted investments are included in Other
Assets on the Consolidated Statements of Financial Position. Changes in the value of these investments are presented in the
Consolidated Statements of Operations as Interest and Investment Income.

Reclassifications: Certain reclassifications of previously reported amounts have been made to conform to the current year
presentation. Amortization related to operating leases and debt issuance costs were reclassified from Amortization to separate
line items within the operating activities section of the Consolidated Statements of Cash Flows. These reclassifications had no
impact on the Consolidated Statements of Operations, Consolidated Statements of Financial Position, or the Increase
(Decrease) in Cash and Cash Equivalents in the Consolidated Statements of Cash Flows.

Accounting Changes and Recent Accounting Pronouncements:

New Accounting Pronouncements Recently Adopted

Fiscal 2023
No new accounting standards were adopted during fiscal 2023.

Fiscal 2022
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12,
Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740). The updated guidance simplifies the accounting
for income taxes by removing certain exceptions in Topic 740 and clarifying and amending existing guidance. The
amendments are effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company

48
 adopted the provisions of this new accounting standard at the beginning of fiscal 2022 and adoption did not have a material
impact on its consolidated financial statements.

New Accounting Pronouncements Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07 Segment Reporting - Improving Reportable Segment Disclosures (Topic
280). The update is intended to improve reportable segment disclosure requirements, primarily through enhanced
disclosures about significant expenses. The ASU requires disclosures to include significant segment expenses that are
regularly provided to the chief operating decision maker (CODM), a description of other segment items by reportable
segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate
resources. The ASU also requires all annual disclosures currently required by Topic 280 to be included in interim periods.
The update is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning
after December 15, 2024, with early adoption permitted and requires retrospective application to all prior periods presented
in the financial statements. The Company is currently assessing the timing and impact of adopting the updated provisions.

Recently issued accounting standards or pronouncements not disclosed have been excluded as they are currently not
relevant to the Company.

Note B
Acquisitions and Divestitures

Acquisitions: On June 7, 2021, the Company acquired the Planters® snack nuts business from The Kraft Heinz Company. The
acquisition includes the Planters®, NUT-rition®, and Corn Nuts® brands. The final purchase price, including working capital
adjustments, was $3.4 billion. The transaction was funded with the Company’s cash on hand and from the issuance of long-term
debt.

Planters® is an iconic snack brand and this acquisition significantly expands the Company's presence, and should broaden the
scope for future acquisitions, in the growing snacking space. Operating results for this acquisition have been included in the
Company's Consolidated Statements of Operations from the date of acquisition and are reflected in the Retail, Foodservice, and
International segments. The acquisition contributed $952.5 million, $1.0 billion and $410.8 million of net sales during fiscal 2023,
2022 and 2021, respectively. As the acquisition has been integrated within the Company's existing operations, post-acquisition
net earnings are not discernible.

Acquisition-related costs were $30.3 million for the fiscal year ended October 31, 2021, which are reflected in the Consolidated
Statements of Operations as Selling, General, and Administrative. Additional one-time adjustments related to the revaluation of
acquired inventory of $12.9 million were recognized in the Consolidated Statements of Operations as Cost of Products Sold for
the fiscal year ended October 31, 2021. The combined impact of these one-time acquisition costs and accounting adjustments
was $43.2 million for the fiscal year ended October 31, 2021.

The acquisition was accounted for as a business combination using the acquisition method. The Company determined the
acquisition date fair values of the assets acquired using independent appraisals. The Company completed purchase accounting
allocations in the fourth quarter of fiscal 2021. Allocations of the purchase price to acquired assets, including goodwill and
intangibles assets, are presented in the table below.

In thousands Purchase Price Allocation

Inventory $ 149,224
Property, Plant, and Equipment 170,958
Goodwill 2,313,064
Other Intangibles:
Trade Names 712,000
Customer Relationships 51,000
Purchase Price $ 3,396,246

Goodwill is calculated as the excess of the purchase price over the fair values of the identifiable net assets acquired and is
deductible for tax purposes. The goodwill recorded as part of the acquisition primarily reflects the value of the potential to expand
the Company's presence in the growing snacking space and serve as a platform for innovation.

49
The following unaudited pro forma financial information presents the combined results of operations as if the acquisition of the
Planters® snack nuts business had occurred on October 27, 2019. These unaudited pro forma results do not necessarily reflect
the actual results of operations that would have been achieved had the acquisition occurred on that date, nor are they
necessarily indicative of future results of operations.
Fiscal Year Ended
In thousands October 31, 2021
Pro Forma Net Sales $ 12,061,686
Pro Forma Net Earnings Attributable to Hormel
Foods Corporation 985,881

The pro forma results include charges for depreciation and amortization of acquired assets and interest expense on debt issued
to finance the acquisition, as well as the related income taxes. The pro forma results also reflect an adjustment to add back the
transaction costs incurred and revaluation of inventory acquired along with the related income tax effects.

See Note C - Goodwill and Intangible Assets for amounts assigned to goodwill and intangible assets.

Note C
Goodwill and Intangible Assets

Goodwill: Goodwill was reallocated as of October 31, 2022, due to organizational changes as described in Note A - Summary of
Significant Accounting Policies. The changes in the carrying amount of goodwill for the fiscal years ended October 29, 2023 and
October 30, 2022, are:
Grocery Refrigerated Jennie-O
In thousands Products Foods Turkey Store Retail Foodservice International Total
Balance at October 31, 2021 $ 2,398,354 $ 2,094,421 $ 176,628 $ — $ — $ 259,699 $ 4,929,102
Foreign Currency Translation — — — — — (3,273) (3,273)
Balance at October 30, 2022 $ 2,398,354 $ 2,094,421 $ 176,628 $ — $ — $ 256,427 $ 4,925,829
Goodwill Reallocation (2,398,354) (2,094,421) (176,628) 2,916,796 1,750,594 2,013 —
Foreign Currency Translation — — — — — 2,635 2,635
Balance at October 29, 2023 $ — $ — $ — $ 2,916,796 $ 1,750,594 $ 261,074 $ 4,928,464

Intangible Assets: The carrying amounts for indefinite-lived intangible assets are:
October 29, October 30,
In thousands 2023 2022
Brands/Trade Names/Trademarks $ 1,636,807 $ 1,665,190
Other Intangibles 184 184
Foreign Currency Translation (5,893) (6,599)
Total $ 1,631,098 $ 1,658,775

The gross carrying amount and accumulated amortization for definite-lived intangible assets are:
October 29, 2023 October 30, 2022
Gross Gross
Carrying Accumulated Carrying Accumulated
In thousands Amount Amortization Amount Amortization
Customer Lists/Relationships $ 168,239 $ (82,658) $ 168,239 $ (69,779)
Other Intangibles 59,241 (15,857) 59,241 (11,606)
Trade Names/Trademarks 6,540 (5,089) 10,536 (7,828)
Foreign Currency Translation — (4,344) — (4,551)
Total $ 234,020 $ (107,947) $ 238,016 $ (93,764)

Amortization expense on intangible assets for the last three fiscal years was:
In thousands
2023 $ 18,386
2022 19,274
2021 17,518

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Estimated annual amortization expense on intangible assets for the five fiscal years after October 29, 2023, is as follows:
In thousands
2024 $ 16,381
2025 14,681
2026 14,210
2027 13,940
2028 13,009

During the fourth quarter of fiscal years 2023, 2022, and 2021, the Company completed required annual impairment tests of
indefinite-lived intangible assets and goodwill. In fiscal 2023, an impairment was indicated for the Justin's® trade name, resulting
in an impairment charge of $28.4 million. The expense is reflected in the Retail segment and included in Goodwill and Intangible
Impairment in the Consolidated Statements of Operations. No other impairment was indicated. Useful lives of intangible assets
were also reviewed during this process with no material changes identified.

Note D
Investments in Affiliates

Equity in Earnings of Affiliates consists of:

Fiscal Year Ended
In thousands % Owned October 29, 2023 October 30, 2022 October 31, 2021
MegaMex Foods, LLC (1) 50% $ 40,501 $ 19,861 $ 38,178
Other Equity Method Investments (2) Various (20 - 50%) 2,253 7,324 9,585
Total Equity in Earnings of Affiliates $ 42,754 $ 27,185 $ 47,763
(1) MegaMex, Foods, LLC, is reflected in the Retail Segment.
(2) Other Equity Method Investments are primarily reflected in the International Segment but also include corporate venturing investments.

Distributions received from equity method investees include:

Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022 October 31, 2021
Dividends $ 38,160 $ 43,039 $ 44,999

On December 15, 2022, the Company purchased from various minority shareholders a 29% common stock interest in PT
Garudafood Putra Putri Jaya Tbk (Garudafood), a food and beverage company in Indonesia. 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 its 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 October 29, 2023, the remaining basis
difference was $324.6 million. Based on quoted market prices, the fair value of the common stock held in Garudafood was
$291.2 million as of October 29, 2023.

In fiscal 2023, the Company recorded a $7.0 million impairment charge related to a corporate venturing investment to recognize
a decline in fair value not believed to be temporary. The impact is reflected in Equity in Earnings of Affiliates on the Consolidated
Statements of Operations. The Company determined that no other-than-temporary impairment existed for any other equity
method investments as of October 29, 2023.

The Company recognized a basis difference of $21.3 million associated with the formation of MegaMex Foods, LLC, of which
$9.3 million is remaining as of October 29, 2023. This difference is being amortized through Equity in Earnings of Affiliates.

51
Note E
Inventories

Principal components of inventories are:

In thousands October 29, 2023 October 30, 2022
Finished Products $ 954,432 $ 974,160
Raw Materials and Work-in-Process 448,535 440,193
Operating Supplies 168,289 206,289
Maintenance Materials and Parts 109,151 95,417
Total $ 1,680,406 $ 1,716,059

Note F
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 programs are intended 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 on the Consolidated 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
were lifted (See Note L - 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.

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Volume: The Company's outstanding contracts related to its commodity hedging programs include:
In millions October 29, 2023 October 30, 2022
Corn 30.7 bushels 34.3 bushels
Lean Hogs 144.2 pounds 177.5 pounds
Natural Gas 3.0 MMBtu — MMBtu

Fair Value of Derivatives: The gross fair values of the Company’s derivative instruments designated as hedges are:
Location on Consolidated
In thousands Statements of Financial Position October 29, 2023 October 30, 2022
Commodity Contracts(1) Other Current Assets $ (13,233) $ 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 Statements of Financial
Position. The gross liability position as of October 29, 2023, is offset by the right to reclaim net cash collateral of $32.2 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 I - Fair Value
Measurements for a discussion of these net amounts as reported on the Consolidated Statements of Financial Position.

Fair Value Hedge - Assets (Liabilities): The carrying amount of the Company’s fair value hedged assets (liabilities) are:
Location on Consolidated
In thousands Statements of Financial Position October 29, 2023 October 30, 2022
Commodity Contracts Accounts Payable(1) $ (4,914) $ 5,725
Interest Rate Contracts Current Maturities of Long-term Debt(2) (442,549) —
Interest Rate Contracts Long-term Debt Less Current Maturities(2) — (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 October 29, 2023, the carrying amount of the 2024 Notes included a cumulative
fair value hedging adjustment of $7.5 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 Statements of Financial Position.

Accumulated Other Comprehensive Loss Impact: As of October 29, 2023, the Company included in AOCL hedging losses
(before tax) of $24.5 million on commodity contracts and gains (before tax) of $12.5 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.

The effect on AOCL for gains or losses (before tax) related to the Company's derivative instruments are:
Gain/(Loss)
Gain/(Loss) Reclassified from
Recognized in AOCL(1) Location on AOCL into Earnings(1)
Consolidated
In thousands Fiscal Year Ended Fiscal Year Ended
Statements
Cash Flow Hedges: October 29, 2023 October 30, 2022 of Operations October 29, 2023 October 30, 2022
Commodity Contracts $ (50,353) $ 56,371 Cost of Products Sold $ 1,225 $ 57,592
Excluded Component(2) 1,127 (4,748) — —
Interest Rate Contracts — — Interest Expense 988 988
(1) See Note H - 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.

53
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:
Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022 October 31, 2021
Net Earnings Attributable to Hormel Foods Corporation $ 793,572 $ 999,987 $ 908,839

Cash Flow Hedges - Commodity Contracts

Gain (Loss) Reclassified from AOCL 1,225 55,350 31,787
Amortization of Excluded Component from Options (5,835) (4,369) (3,033)
Gain (Loss) Reclassified from AOCL Due to Discontinuance
of Cash Flow Hedges(1) — 2,242 (743)
Fair Value Hedges - Commodity Contracts
Gain (Loss) on Commodity Futures(2) 656 (18,122) (28,078)
Total Gain (Loss) on Commodity Contracts(3) $ (3,955) $ 35,101 $ (67)

Cash Flow Hedges - Interest Rate Locks

Gain (Loss) Reclassified from AOCL 988 988 399
Fair Value Hedge - Interest Rate Swap
Gain (Loss) on Interest Rate Swap — 928 —
Amortization of Loss Due to Discontinuance of Fair Value
Hedge(4) (12,499) (1,923) —
Total Gain (Loss) on Interest Rate Contracts(5) $ (11,511) $ (7) $ 399

Total Gain (Loss) Recognized in Earnings $ (15,466) $ 35,094 $ 332

(1) In fiscal years 2022 and 2021, the Company discontinued hedge accounting related to corn usage that was deemed no longer probable to occur resulting in the
immediate recognition of gains of $2.2 million (1.0 million bushels) and losses of $0.7 million (2.8 million bushels), respectively.
(2) Represents gains or losses on commodity contracts designated as fair value hedges that were closed during the year, 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 G
Pension and Other Post-retirement Benefits

The Company has several defined benefit plans and defined contribution plans covering most employees. Benefits for defined
benefit pension plans covering hourly employees are provided based on stated amounts for each year of service, while plan
benefits covering salaried employees are based on final average compensation, age and years of service. In the fourth quarter of
fiscal 2022, an amendment was enacted for the salaried pension plan which changed the design from a stable value benefit to a
cash balance benefit effective January 1, 2023. The cash balance design establishes hypothetical accounts for employees that
are credited with an amount equal to a specified percent of their pay plus interest. Total costs associated with the Company’s
defined contribution benefit plans in fiscal years 2023, 2022, and 2021 were $41.0 million, $47.9 million, and $46.7 million,
respectively.

Certain groups of employees are eligible for post-retirement health or welfare benefits. Benefits for retired employees vary for
each group depending on respective retirement dates and applicable plan coverage in effect. Contribution requirements for
retired employees are governed by the Retiree Health Care Payment Program and may change each year as the cost to provide
coverage is determined.

54
Net periodic cost of defined benefit plans included the following for fiscal years ending:
Pension Benefits Post-retirement Benefits
October 29, October 30, October 31, October 29, October 30, October 31,
In thousands 2023 2022 2021 2023 2022 2021
Service Cost $ 35,607 $ 40,076 $ 37,127 $ 248 $ 469 $ 533
Interest Cost 68,630 50,558 50,399 12,064 7,684 7,945
Expected Return on Plan Assets (78,285) (108,248) (102,693) — — —
Amortization of Prior Service Cost
(Credit) (1,843) (1,496) (1,496) 8 8 (669)
Recognized Actuarial Loss (Gain) 13,303 12,530 22,742 (29) 2,439 2,020
Net Periodic Cost $ 37,413 $ (6,581) $ 6,080 $ 12,290 $ 10,600 $ 9,830

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.

Actuarial gains and losses and any adjustments resulting from plan amendments are deferred and amortized over periods
ranging from 8 to 21 years for pension benefits and 13 to 14 years for post-retirement benefits. The following amounts have not
been recognized in net periodic pension cost and are included in Accumulated Other Comprehensive Loss:
Pension Benefits Post-retirement Benefits
October 29, October 30, October 29, October 30,
In thousands 2023 2022 2023 2022
Unrecognized Prior Service (Cost) Credit $ (7,549) $ (2,399) $ (138) $ (146)
Unrecognized Actuarial (Loss) Gain (270,468) (272,401) 35,483 18,044

The following is a reconciliation of the beginning and ending balances of the benefit obligation, fair value of plan assets, and
funded status of the plans as of the measurement dates:
Pension Benefits Post-retirement Benefits
October 29, October 30, October 29, October 30,
In thousands 2023 2022 2023 2022
Change in Benefit Obligation:
Benefit Obligation at Beginning of Year $ 1,200,013 $ 1,711,958 $ 211,986 $ 274,666
Service Cost 35,607 40,076 248 469
Interest Cost 68,630 50,558 12,064 7,684
Actuarial (Gain) Loss(1) (51,106) (515,995) (17,421) (51,219)
Plan Amendments 3,307 (2,722) — —
Participant Contributions — — 2,137 1,808
Medicare Part D Subsidy — — 449 448
Benefits Paid (82,071) (83,862) (23,263) (21,868)
Benefit Obligation at End of Year $ 1,174,380 $ 1,200,013 $ 186,199 $ 211,986
(1) Actuarial gains in fiscal 2022 were primarily due to the change in the discount rate assumptions utilized in measuring plan obligations.

Pension Benefits Post-retirement Benefits

October 29, October 30, October 29, October 30,
In thousands 2023 2022 2023 2022
Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year $ 1,240,200 $ 1,698,596 $ — $ —
Actual Return on Plan Assets 15,810 (387,244) — —
Participant Contributions — — 2,137 1,808
Employer Contributions 11,733 12,711 21,126 20,060
Benefits Paid (82,071) (83,862) (23,263) (21,868)
Fair Value of Plan Assets at End of Year $ 1,185,672 $ 1,240,200 $ — $ —
Funded Status at End of Year $ 11,292 $ 40,187 $ (186,199) $ (211,986)

55
Amounts recognized on the Consolidated Statements of Financial Position are as follows:
Pension Benefits Post-retirement Benefits
October 29, October 30, October 29, October 30,
In thousands 2023 2022 2023 2022
Pension Assets $ 204,697 $ 245,566 $ — $ —
Employee-Related Expenses (12,023) (11,571) (18,313) (19,962)
Pension and Post-retirement Benefits (181,382) (193,808) (167,886) (192,024)
Net Amount Recognized $ 11,292 $ 40,187 $ (186,199) $ (211,986)

The accumulated benefit obligation for all pension plans was $1.2 billion as of October 29, 2023 and October 30, 2022. The
following table provides information for pension plans with projected and accumulated benefit obligations in excess of plan
assets:
In thousands October 29, 2023 October 30, 2022
Projected Benefit Obligation $ 193,404 $ 205,379
Accumulated Benefit Obligation 191,888 204,302
Fair Value of Plan Assets — —

Weighted-average assumptions used to determine benefit obligations are as follows:

October 29, 2023 October 30, 2022
Discount Rate 6.49 % 5.92 %
Rate of Future Compensation Increase (For Plans that Base Benefits on
Final Compensation Level) 4.06 % 3.95 %
Interest Crediting Rate (For Cash Balance Plan) 4.98 % 4.42 %

Weighted-average assumptions used to determine net periodic benefit costs are as follows:
October 29, 2023 October 30, 2022 October 31, 2021
Discount Rate 5.92 % 3.00 % 3.06 %
Rate of Future Compensation Increase (For Plans
that Base Benefits on Final Compensation Level) 3.95 % 4.14 % 4.09 %
Expected Long-term Return on Plan Assets 6.50 % 6.50 % 6.75 %
(1)
Interest Crediting Rate (For Cash Balance Plan) 4.42 % —% —%
(1) Cash balance plan enacted in the fourth quarter of fiscal 2022.

The expected long-term rate of return on plan assets is based on fair value and developed in consultation with outside advisors.
A range is determined based on the composition of the asset portfolio, historical long-term rates of return, and estimates of future
performance. The interest crediting rate is determined annually based on the U.S. 30-year Treasury rate with a floor of 2.65
percent.

For measurement purposes, an 8 percent annual rate of increase in the per capita cost of covered health care benefits for pre-
Medicare and post-Medicare retirees’ coverage is assumed for 2024. The pre-Medicare and post-Medicare rate is assumed to
decrease to 5 percent for 2029 and remain steady thereafter.

The Company’s funding policy is to make annual contributions of not less than the minimum required by applicable regulations.
The Company expects to make contributions of $31.3 million during fiscal 2024, which represent benefit payments for unfunded
plans.

Benefits expected to be paid over the next ten fiscal years are as follows:
In thousands Pension Benefits Post-retirement Benefits
2024 $ 85,068 $ 18,871
2025 87,841 18,430
2026 92,386 17,865
2027 95,000 17,262
2028 97,973 16,649
2029-2033 517,376 73,091

Plan assets for certain defined benefit pension plans are held in the Hormel Foods Corporation Master Trust (Master Trust). The
investment strategy for the Master Trust attempts to minimize the long-term cost of pension benefits, reduce the volatility of
pension expense, and achieve a healthy funded status for the plans. The Company establishes target allocations in consultation

56
with outside advisors through the use of asset-liability modeling in an effort to match the duration of the plan assets with the
duration of the Company’s projected benefit liability.

The actual and target weighted-average asset allocations for the Company’s pension plan assets as of the plan measurement
date are as follows:
October 29, 2023 October 30, 2022

Target Target
Asset Category Actual % Range % Actual % Range %
Fixed Income 47.6 40 – 60 43.3 40 – 60
Global Stocks 31.2 20 – 55 36.9 20 – 55
Real Estate 8.0 0 – 10 8.6 0 – 10
Private Equity 6.7 0 – 15 7.1 0 – 10
Gold 2.4 0 – 5 — 0 – 0
Hedge Funds 2.1 0 – 10 2.1 0 – 10
Cash and Cash Equivalents 2.0 0 – 5 1.9 0 – 5

The following tables show the categories of defined benefit pension plan assets and the level under which fair values were
determined pursuant to the provisions of ASC 820. Assets measured at fair value using the net asset value (NAV) per share
practical expedient are not required to be classified in the fair value hierarchy. These amounts are provided to permit
reconciliation to the total fair value of plan assets.
Fair Value Measurements as of October 29, 2023
Quoted Prices
in Active Significant Other Significant
Markets for Observable Unobservable
Total Identical Assets Inputs Inputs
In thousands Fair Value (Level 1) (Level 2) (Level 3)
Plan Assets in Fair Value Hierarchy
Cash Equivalents(1) $ 23,643 $ 461 $ 23,182 $ —
Private Equity(2)
Domestic 31,383 — — 31,383
International 48,065 — — 48,065
Fixed Income(3)
U.S. Government Issues 171,949 123,683 48,266 —
Municipal Issues 9,884 — 9,884 —
Corporate Issues – Domestic 226,202 — 226,202 —
Corporate Issues – Foreign 36,133 — 36,133 —
Plan Assets in Fair Value Hierarchy $ 547,258 $ 124,144 $ 343,667 $ 79,448

Plan Assets at Net Asset Value

Real Estate – Domestic(4) $ 95,315
Global Stocks – Collective Investment Funds(5) 369,513
Global Stocks – Gold(6) 28,163
Hedge Funds(7) 24,965
Fixed Income – Hedge Funds(8) 64,613
(9)
Fixed Income – Collective Investment Funds 55,845
Plan Assets at Net Asset Value $ 638,414
Total Plan Assets at Fair Value $ 1,185,672

57
 Fair Value Measurements as of October 30, 2022

Quoted Prices
in Active Significant Other Significant
Markets for Observable Unobservable
Total Identical Assets Inputs Inputs
In thousands Fair Value (Level 1) (Level 2) (Level 3)
Plan Assets in Fair Value Hierarchy
Cash Equivalents(1) $ 23,162 $ — $ 23,162 $ —
Private Equity(2)
Domestic 37,032 — — 37,032
International 51,122 — — 51,122
Fixed Income(3)
U.S. Government Issues 166,461 109,643 56,818 —
Municipal Issues 10,541 — 10,541 —
Corporate Issues – Domestic 244,044 — 244,044 —
Corporate Issues – Foreign 41,759 — 41,759 —
Plan Assets in Fair Value Hierarchy $ 574,121 $ 109,643 $ 376,324 $ 88,154

Plan Assets at Net Asset Value

Real Estate – Domestic(4) $ 106,951
Global Stocks – Collective Investment Funds(5) 458,045
Hedge Funds(7) 26,273
Fixed Income – Hedge Funds(8) 62,025
Fixed Income – Collective Investment Funds(9) 12,785
Plan Assets at Net Asset Value $ 666,080
Total Plan Assets at Fair Value $ 1,240,200

The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments:

(1) Cash Equivalents: These Level 1 and Level 2 investments consist primarily of cash and highly liquid money market mutual funds traded in active markets in
addition to highly liquid futures and T-bills with an observable daily settlement price.

(2) Private Equity: These Level 3 investments consist of various collective investment funds, which are managed by a third party, invested in a well-diversified
portfolio of equity investments from top performing, high quality firms focused on U.S. and foreign small to mid-markets, venture capitalists, and entrepreneurs
with a concentration in areas of innovation. Investment strategies include buyouts, growth capital, buildups, and distressed, as well as early stages of company
development mainly in the U.S. The fair value of these funds is based on the fair value of the underlying investments.

(3) Fixed Income: The Level 1 investments include U.S. Treasury bonds and notes, which are valued at the closing price reported on the active market in which the
individual securities are traded. The Level 2 investments consist principally of U.S. government securities, which are valued daily using institutional bond quote
sources and mortgage-backed securities pricing sources, and municipal, domestic, and foreign securities, which are valued daily using institutional bond quote
sources.

(4) Real Estate – Domestic: These investments include ownership in open-ended real estate funds, which manage diversified portfolios of commercial properties
within the office, residential, retail, and industrial property sectors. Investment strategies aim to acquire, own, hold, or dispose of investments with the goal of
achieving current income and/or capital appreciation. The real estate investments are valued at the NAV of shares held by the Master Trust. Requests to redeem
shares are granted on a quarterly basis with either 45 or 90 days advance notice, subject to availability of cash.

(5) Global Stocks – Collective Investment Funds: These investments include commingled funds consisting of a mix of U.S. common stocks and foreign common
stocks. The collective investment funds are valued at the NAV of shares held by the Master Trust. The investment strategy is to obtain long-term capital
appreciation by focusing on companies generating above average earnings growth and are leading growth businesses in the marketplace. All funds are daily
liquid with the exception of one that is available on the first business day of the month for subscriptions and withdrawals.

(6) Global Stocks – Gold: This investment is a limited partnership consisting of physical gold, global mining industry common stocks, and to a limited extent, other
precious metals. The limited partnership is valued at the NAV of shares held by the Master Trust. This fund allows for weekly subscriptions and monthly
redemptions.

(7) Hedge Funds: These investments are designed to provide diversification to an overall institutional portfolio and, in particular, provide protection against equity
market downturns. They are comprised of Commodity Trading Advisor Managed Futures, Global Macro (Discretionary and/or Quant) and Long Volatility/Tail Risk
Hedging strategies. The hedge funds are valued at the NAV of shares held by the Master Trust. Requests to redeem shares are granted daily, monthly or
quarterly.

(8) Fixed Income – Hedge Funds: These investments target absolute, risk-adjusted returns by taking advantage of price dislocations and inconsistencies within credit
markets. Funds are comprised primarily of U.S. and European corporate credit and structured credit. The investments are valued at the NAV of shares held by
the Master Trust. Requests to redeem shares are granted on a quarterly basis on the three year fund anniversary with a ninety day notice period.

(9) Fixed Income – Collective Investment Funds: These investments include commingled funds consisting of a mix of U.S. government and investment grade
corporate bonds. The collective investment funds are valued at NAV of the shares held by the Master Trust. The investment strategy is to achieve an investment
return that approximates as closely to the Bloomberg Barclays U.S. Aggregate Bond Index over the long-term by investing in the securities that comprise the
benchmark. There are no restrictions on redemptions.

58
A reconciliation of the beginning and ending balance of the investments measured at fair value using significant unobservable
inputs (Level 3) is as follows:
In thousands October 29, 2023 October 30, 2022
Fair Value at Beginning of Year $ 88,154 $ 109,419
Purchases, Issuances, and Settlements (Net) (8,926) (29,188)
Unrealized Gains (Losses)(1) (8,525) (18,027)
Realized Gains 6,455 (604)
Interest and Dividend Income 2,290 26,554
Fair Value at End of Year $ 79,448 $ 88,154
(1) Included in Accumulated Other Comprehensive Loss on the Consolidated Statements of Financial Position.

During fiscal 2023, the value of the Level 3 investments ranged from $77.8 million to $88.2 million, with an average value of
$81.2 million.

The Company has commitments totaling $151.9 million for the investments within the pension plans. The unfunded commitment
balance for each investment category is as follows:
In thousands October 29, 2023 October 30, 2022
Domestic Equity $ 16,835 $ 2,146
International Equity 11,396 10,466
Unfunded Commitment Balance $ 28,231 $ 12,612

Funding for future capital calls will come from existing pension plan assets and not from additional cash contributions by the
Company.

59
Note H
Accumulated Other Comprehensive Loss

Components of Accumulated Other Comprehensive Loss are as follows:

Accumulated
Foreign Other
Currency Pension & Other Derivatives & Equity Method Comprehensive
In thousands Translation Benefits Hedging Investments Loss
Balance at October 25, 2020 $ (64,161) $ (333,178) $ 2,089 $ — $ (395,250)
Unrecognized Gains (Losses)
Gross 12,980 72,623 75,084 — 160,687
Tax Effect — (17,715) (18,259) — (35,974)
Reclassification into Net Earnings
(1) (2)
Gross — 22,597 (31,443) — (8,846)
Tax Effect — (5,538) 7,652 — 2,114
Change Net of Tax 12,980 71,967 33,034 — 117,981
Balance at October 31, 2021 $ (51,181) $ (261,211) $ 35,123 $ — $ (277,269)
Unrecognized Gains (Losses)
Gross (38,612) 73,361 51,623 — 86,372
Tax Effect — (17,942) (12,384) — (30,326)
Reclassification into Net Earnings
(1) (2)
Gross — 13,481 (58,580) — (45,099)
Tax Effect — (3,312) 14,073 — 10,761
Change Net of Tax (38,612) 65,587 (5,267) — 21,708
Balance at October 30, 2022 $ (89,793) $ (195,624) $ 29,856 $ — $ (255,561)
Unrecognized Gains (Losses)
Gross 3,771 3,878 (49,226) 15,082 (26,495)
Tax Effect — (880) 11,998 — 11,118
Reclassification into Net Earnings
(1) (2) (3)
Gross — 11,439 (2,213) (8,235) 991
Tax Effect — (2,806) 501 — (2,305)
Change Net of Tax 3,771 11,632 (38,940) 6,847 (16,691)
Balance at October 29, 2023 $ (86,022) $ (183,993) $ (9,084) $ 6,847 $ (272,252)
(1) Included in computation of net periodic cost. See Note G - 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 F - Derivatives and Hedging for additional
information.
(3) Included in Equity in Earnings of Affiliates in the Consolidated Statements of Operations.

60
Note I
Fair Value Measurements

The Company’s financial assets and liabilities carried at fair value on a recurring basis as of October 29, 2023 and October 30,
2022, and their level within the fair value hierarchy are presented in the table below.

Fair Value Measurements at October 29, 2023

Quoted Prices in
Active Markets for Significant Other Significant
Total Fair Identical Assets Observable Inputs Unobservable Inputs
In thousands Value (Level 1) (Level 2) (Level 3)
Assets at Fair Value
Cash and Cash Equivalents(1) $ 736,532 $ 735,387 $ 1,145 $ —
Short-term Marketable Securities(2) 16,664 2,499 14,164 —
Other Trading Securities(3) 188,162 — 188,162 —
Commodity Derivatives(4) 9,330 9,603 (273) —
Total Assets at Fair Value $ 950,688 $ 747,489 $ 203,199 $ —
Liabilities at Fair Value
Deferred Compensation(3) $ 55,222 $ — $ 55,222 $ —
Total Liabilities at Fair Value $ 55,222 $ — $ 55,222 $ —

Fair Value Measurements at October 30, 2022

Quoted Prices in Active
Markets for Identical Significant Other Significant
Total Fair Assets Observable Inputs Unobservable Inputs
In thousands Value (Level 1) (Level 2) (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
percent of the U.S. 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 Statements of Financial
Position. Securities held by the rabbi trust are classified as trading securities. Unrealized gains and losses associated with these investments are included in the
Company's earnings. Securities held by the rabbi trust generated gains (losses) of $3.2 million, $(16.8) million, and $21.2 million for fiscal years 2023, 2022, and
2021, 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

61
 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, on the Consolidated Statements of Financial Position. As of October 29, 2023, the
Company has recognized the right to reclaim net cash collateral of $32.2 million from various counterparties (including cash of $42.6 million less $10.4 million of
realized loss). As of October 30, 2022, the Company had recognized 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 the Consolidated
Statements of Financial Position. The fair value of long-term debt, utilizing discounted cash flows (Level 2), was $2.7 billion as of
October 29, 2023 and $2.7 billion as of October 30, 2022. See Note L - 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). During fiscal year 2023, the Company
recorded a $28.4 million impairment charge on the Justin's® trade name and a $7.0 million impairment charge on a corporate
venturing investment. See additional discussion in Note C - Goodwill and Intangible Assets and Note D - Investments in Affiliates.
During fiscal years 2023, 2022, and 2021, there were no other material remeasurements of assets or liabilities at fair value on a
nonrecurring basis subsequent to their initial recognition.

Note J
Commitments and Contingencies

Purchase Commitments: To ensure a steady supply of hogs and turkeys and keep the cost of products stable, the Company
has entered into contracts with producers for the purchase of hogs and turkeys at formula-based prices over periods up to 5
years and 9 years, respectively. The Company has also entered into grow-out contracts with independent farmers to raise
turkeys for the Company for periods up to 25 years. Under these arrangements, the Company owns the livestock, feed, and
other supplies while the independent farmers provide facilities and labor. In addition, the Company has contracted for the
purchase of corn, soybean meal, feed ingredients, and other raw materials from independent suppliers for periods up to 2 years.
As of October 29, 2023, the Company is committed to make purchases under these contracts, assuming current price levels, for
future fiscal years:

In thousands
2024 $ 1,228,731
2025 762,253
2026 415,489
2027 182,925
2028 114,843
Later Years 58,931
Total $ 2,763,172

Purchases under these contracts for fiscal years 2023, 2022, and 2021 were $1.4 billion, $1.2 billion, and $1.1 billion,
respectively.

Other Commitments and Guarantees: The Company has commitments of approximately $48.2 million related to infrastructure
improvements supporting various manufacturing facilities and $62.0 million for a media advertising agreement as of October 29,
2023.

As of October 29, 2023, the Company has $48.6 million of standby letters of credit issued on its behalf. The standby letters of
credit are primarily related to the Company’s self-insured workers compensation programs. This amount includes revocable
standby letters of credit totaling $2.7 million for obligations of an affiliated party that may arise under workers compensation
claims. Letters of credit are not reflected on the Consolidated Statements of Financial Position.

62
Legal Proceedings: The Company is a party to various legal proceedings related to the ongoing operation of its business,
including claims both by and against the Company. At any time, such proceedings typically involve claims related to product
liability, labeling, contracts, antitrust regulations, intellectual property, competition laws, employment practices, or other actions
brought by employees, customers, consumers, competitors, or suppliers. The Company establishes accruals for its potential
exposure, as appropriate, for claims against the Company when losses become probable and reasonably estimable. However,
future developments or settlements are uncertain and may require the Company to change such accruals as proceedings
progress. Resolution of any currently known matter, either individually or in the aggregate, is not expected to have a material
effect on the Company’s financial condition, results of operations, or liquidity.

Pork Antitrust Litigation

Beginning in June 2018, a series of putative class action complaints were filed against the Company, as well as several
other pork-processing companies and a benchmarking service called Agri Stats in the United States District Court for the
District of Minnesota styled In re Pork Antitrust Litigation (the Pork Antitrust Civil Litigation). The plaintiffs allege, among
other things, that beginning in January 2009, the defendants conspired and combined to fix, raise, maintain, and stabilize
the price of pork and pork products—including through the use of Agri Stats—in violation of federal antitrust laws. The
complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair
competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages,
injunctive relief, pre-and post-judgment interest, costs, and attorneys’ fees. Since the original filing, certain direct-action
plaintiffs have opted out of class treatment and are proceeding with individual direct actions making similar claims, and
others may do so in the future. The Company has not recorded any liability for these matters as it does not believe a loss is
probable, and it cannot reasonably estimate any reasonably possible loss as the Company believes that it has valid and
meritorious defenses against the allegations.

The Offices of the Attorney General in New Mexico and Alaska have filed complaints against the Company and certain of
its pork subsidiaries, as well as several other pork processing companies and Agri Stats. The complaints are based on
allegations similar to those asserted in the Pork Antitrust Civil Litigation and allege violations of state antitrust, unfair trade
practice, and unjust enrichment laws based on allegations of conspiracies to exchange information and manipulate the
supply of pork. The Company has not recorded any liability for these matters as it does not believe a loss is probable, and it
cannot reasonably estimate any reasonably possible loss as the Company believes that it has valid and meritorious
defenses against the allegations.

Turkey Antitrust Litigation

Beginning in December 2019, a series of putative class action complaints were filed against the Company, as well as
several other turkey-processing companies and a benchmarking service called Agri Stats, in the U.S. District Court for the
Northern District of Illinois styled In re Turkey Antitrust Litigation. The plaintiffs allege, among other things, that from at least
2010 to 2017, the defendants conspired and combined to fix, raise, maintain, and stabilize the price of turkey products—
including through the use of Agri Stats—in violation of federal antitrust laws. The complaints on behalf of the putative
classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer
protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages, injunctive relief, pre-and post-
judgment interest, costs, and attorneys’ fees. Since the original filing, certain direct-action plaintiffs have opted out of class
treatment and are proceeding with individual direct actions making similar claims, and others may do so in the future. The
Company has not recorded any liability for these matters as it does not believe a loss is probable, and it cannot reasonably
estimate any reasonably possible loss as the Company believes that it has valid and meritorious defenses against the
allegations.

Poultry Wages Antitrust Litigation

In December 2019, a putative class of non-supervisory production and maintenance employees at poultry-processing
plants in the continental United States filed an amended consolidated class action complaint against the Company and
various other poultry processing companies in the United States District Court for the District of Maryland styled Jien, et al.
v. Perdue Farms, Inc., et al. The plaintiffs allege that since 2009, the defendants directly and through a wage survey and
benchmarking service exchanged information regarding compensation in an effort to depress and fix wages and benefits
for employees at poultry-processing plants, feed mills, and hatcheries in violation of federal antitrust laws. The plaintiffs
seek, among other things, treble monetary damages, punitive damages, restitution, and pre-and post-judgment interest, as
well as declaratory and injunctive relief. In July 2022, the Court partially granted the Company’s motion to dismiss, and
dismissed plaintiffs’ per se wage-fixing claim as to the Company. The Company has not recorded any liability for this matter
as it does not believe a loss is probable, and it cannot reasonably estimate any reasonably possible loss as the Company
believes that it has valid and meritorious defenses against the allegations.

Red Meat Wages Antitrust Litigation

In November 2022, a putative class of non-supervisory production and maintenance employees at “red meat” processing
plants in the continental United States filed a class action complaint against the Company and various other beef- and
pork-processing companies in the United States District Court for the District of Colorado styled Brown, et al. v. JBS USA
Food Co., et al. The plaintiffs allege that since 2014, the defendants directly and through a wage survey and benchmarking
service exchanged information regarding compensation in an effort to depress and fix wages and benefits for employees at

63
 beef- and pork-processing plants in violation of federal antitrust laws. The plaintiffs seek, among other things, treble
monetary damages, punitive damages, restitution, and pre-and post-judgment interest, as well as declaratory and injunctive
relief. The Company has not recorded any liability for this matter as it does not believe a loss is probable, and it cannot
reasonably estimate any reasonably possible loss as the Company believes that it has valid and meritorious defenses
against the allegations.

Note K
Leases

The Company has operating leases for manufacturing facilities, office space, warehouses, transportation equipment, as well as
miscellaneous real estate and equipment contracts. Finance leases primarily include turkey growing facilities and an aircraft. The
Company's lessor portfolio consists primarily of immaterial operating leases of farmland to third parties.

Lease information included on the Consolidated Statements of Financial Position are:

Location on Consolidated Statements of
In thousands Financial Position October 29, 2023 October 30, 2022
Right-of-Use Assets
Operating Other Assets $ 131,920 $ 73,613
Finance Net Property, Plant, and Equipment 37,999 45,563
Total Right-of-Use Assets $ 169,919 $ 119,176
Liabilities
Current
Operating Accrued Expenses $ 26,238 $ 21,183
Finance Current Maturities of Long-term Debt 8,597 8,391
Noncurrent
Operating Other Long-term Liabilities 109,237 55,571
Finance Long-term Debt Less Current Maturities 27,488 36,082
Total Lease Liabilities $ 171,560 $ 121,227

Lease expenses are:

Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022 October 31, 2021
Operating Lease Cost (1) $ 34,209 $ 25,702 $ 21,993
Finance Lease Cost
Amortization of Right-of-Use Assets 7,594 7,965 8,104
Interest on Lease Liabilities 1,361 1,707 2,019
Variable Lease Cost (2) 511,906 463,439 544,635
Net Lease Cost $ 555,070 $ 498,813 $ 576,751
(1) Includes short-term lease costs, which are immaterial.
(2) ASC 842 - Leases requires disclosure of payments related to agreements with an embedded lease that are not otherwise reflected on the balance sheet. The
Company's variable lease costs primarily include inventory related expenses, such as materials, labor, and overhead from manufacturing and service agreements
that contain embedded leases. Variability of these costs is determined based on usage or output and may vary for other reasons such as changes in material
prices.

The weighted-average remaining lease term and discount rate for lease liabilities included on the Consolidated Statements of
Financial Position are:
October 29, 2023 October 30, 2022
Weighted-average Remaining Lease Term
Operating Leases 6.0 years 5.3 years
Finance Leases 5.3 years 6.3 years
Weighted-average Discount Rate
Operating Leases 4.43 % 2.08 %
Finance Leases 3.37 % 3.44 %

64
Supplemental cash flow and other information related to leases for the fiscal year ended are:
In thousands October 29, 2023 October 30, 2022 October 31, 2021
Cash Paid for Amounts Included in the Measurement of Lease Liabilities
Operating Cash Flows from Operating Leases $ 29,436 $ 24,098 $ 20,305
Operating Cash Flows from Finance Leases 1,361 1,707 2,019
Financing Cash Flows from Finance Leases 8,407 8,491 8,598

Right-of-Use Assets obtained in exchange for new finance lease liabilities 19 — —

Right-of-Use Assets obtained in exchange for new operating lease liabilities 84,087 19,646 31,962

The maturity of the Company's lease liabilities as of October 29, 2023, are:
In thousands Operating Leases Finance Leases (1) Total (2)
2024 $ 31,718 $ 9,637 $ 41,355
2025 29,050 8,101 37,152
2026 26,066 5,666 31,732
2027 19,769 4,314 24,083
2028 12,873 10,542 23,414
2029 and beyond 35,608 685 36,293
Total Lease Payments $ 155,084 $ 38,944 $ 194,028
Less: Imputed Interest 19,609 2,859 22,468
Present Value of Lease Liabilities $ 135,475 $ 36,085 $ 171,560
(1) Over the life of the lease contracts, finance lease payments include $8.1 million related to purchase options which are reasonably certain of being exercised.
(2) Lease payments exclude $31.2 million of legally binding minimum lease payments for leases signed but not yet commenced.

Note L
Long-term Debt and Other Borrowing Arrangements

Long-term Debt consists of:

In thousands October 29, 2023 October 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 (7,016) (7,750)
Unamortized Debt Issuance Costs (16,278) (19,856)
Interest Rate Swap Liabilities(1) (7,451) (19,950)
Finance Lease Liabilities(2) 36,085 44,473
Other Financing Arrangements 3,908 2,429
Total $ 3,309,247 $ 3,299,345
Less: Current Maturities of Long-term Debt 950,529 8,796
Long-term Debt Less Current Maturities $ 2,358,719 $ 3,290,549
(1) See Note F - Derivatives and Hedging for additional information.
(2) See Note K - Leases for additional information.

Senior Unsecured Notes: On June 3, 2021, the Company issued $950.0 million aggregate principal amount of its 0.650% notes
due 2024 (2024 Notes), $750.0 million aggregate principal amount of its 1.700% notes due 2028 (2028 Notes), and $600.0
million aggregate principal amount of its 3.050% notes due 2051 (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 F - 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

65
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 Statement of
Financial Position.

On June 11, 2020, the Company issued senior notes in an aggregate principal amount of $1.0 billion due 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 U.S. Dollars and Singapore Dollars, including applicable credit spread adjustments and relevant SOFR
benchmark provisions, (ii) permitting two one-year extension options to be exercised at any anniversary, (iii) removing the
change in debt ratings notice requirement, (iv) shortening the notice period requirements for Base Rate Loans to allow for same
day notice, and (v) increasing the number of permitted interest periods from 8 to 15.

The unsecured revolving line of credit bears interest, at the Company’s election, at either a Base Rate plus margin of 0.0% to
0.150% or the Adjusted Term SOFR, Adjusted Daily Simple Risk-Free Rate (RFR) or Eurocurrency Rate plus margin of 0.575%
to 1.150% and a variable fee of 0.050% to 0.100% is paid for the availability of this credit line. Extensions of credit under the
facility may be made in the form of revolving loans, swingline loans and letters of credit. The lending commitments under the
agreement are scheduled to expire on May 6, 2026, at which time the Company will be required to pay in full all obligations then
outstanding. As of October 29, 2023 and October 30, 2022, the Company had no outstanding draws from this facility.

Debt Covenants: The Company is required by certain covenants in its debt agreements to maintain specified levels of financial
ratios and financial position. As of October 29, 2023, the Company was in compliance with all covenants.

Interest Payments: Total interest paid in the last three fiscal years is as follows:
In millions
2023 $ 57.1
2022 57.0
2021 25.1

Note M
Stock-Based Compensation

The Company issues stock options, restricted stock units, restricted shares, and deferred stock units as part of its stock incentive
plans for employees and nonemployee directors. Stock-based compensation expense for fiscal years 2023, 2022, and 2021, was
$24.1 million, $24.9 million, and $24.7 million, respectively. The Company recognizes stock-based compensation expense
ratably over the shorter of the vesting period or the individual's retirement eligibility date.

As of October 29, 2023, there was $16.2 million of total unrecognized compensation expense from stock-based compensation
arrangements granted under the plans. This compensation is expected to be recognized over a weighted-average period of
approximately 1.6 years. During fiscal years 2023, 2022, and 2021, cash received from stock option exercises was $12.0 million,
$79.8 million, and $45.9 million, respectively.

Shares issued for option exercises, restricted stock units, restricted shares, and deferred stock units may be either authorized
but unissued shares or shares of treasury stock. The number of shares available for future grants was 10.1 million at October 29,
2023, 11.1 million at October 30, 2022, and 12.5 million at October 31, 2021.

66
Stock Options: The Company’s policy is to grant options with the exercise price equal to the market price of the common stock
on the date of grant. Options typically vest over four years and expire ten years after the date of the grant.

A reconciliation of the number of options outstanding and exercisable as of October 29, 2023, is:
Weighted-average Aggregate
Shares Weighted-average Remaining Contractual Intrinsic Value
(in thousands) Exercise Price Term (Years) (in thousands)
Stock Options Outstanding at October 30, 2022 16,130 $ 36.85
Granted 1,002 46.46
Exercised (518) 29.24
Forfeited (147) 41.51
Expired (84) 42.55
Stock Options Outstanding at October 29, 2023 16,384 $ 37.61 4.3 $ 18,845
Stock Options Exercisable at October 29, 2023 13,611 $ 36.00 3.5 $ 18,845

The weighted-average grant date fair value of stock options granted and the total intrinsic value of options exercised are:
Fiscal Year Ended
October 29, October 30, October 31,
In thousands, except per share amounts 2023 2022 2021
Weighted-average Grant Date Fair Value $ 10.06 $ 7.09 $ 7.52
Intrinsic Value of Exercised Options 6,350 109,745 94,108

The fair value of each option award is calculated on the date of grant using the Black-Scholes valuation model utilizing the
following weighted-average assumptions:
Fiscal Year Ended
October 29, October 30, October 31,
2023 2022 2021
Risk-free Interest Rate 3.5 % 1.6 % 1.0 %
Dividend Yield 2.4 % 2.4 % 2.1 %
Stock Price Volatility 21.1 % 20.4 % 20.0 %
Expected Option Life 7.4 years 7.5 years 7.4 years

As part of the annual valuation process, the Company reassesses the appropriateness of the inputs used in the valuation
models. The Company establishes the risk-free interest rate using U.S. Treasury yields as of the grant date. The dividend yield is
based on the dividend rate approved by the Company’s Board of Directors and the stock price on the grant date. The expected
volatility assumption is based on historical volatility. The expected life assumption is based on an analysis of past exercise
behavior by option holders. In performing the valuations for option grants, the Company has not stratified option holders as
exercise behavior has historically been consistent across all employees.

Restricted Stock Units: Restricted stock units are valued equal to the market price of the common stock on the date of the
grant and generally vest after three years. These awards accumulate dividend equivalents, which are provided as additional units
and are subject to the same vesting requirements as the underlying grant. A reconciliation of the restricted stock units as of
October 29, 2023, is:
Weighted-
average Weighted-average Aggregate
Shares Grant Date Remaining Contractual Intrinsic Value
(in thousands) Fair Value Term (Years) (in thousands)
Restricted Stock Units Outstanding at October 30, 2022 681 $ 45.53
Granted 237 45.96
Dividend Equivalents 18 41.44
Vested (185) 45.88
Forfeited (28) 45.64
Restricted Stock Units Outstanding at October 29, 2023 723 $ 45.59 1.3 $ 22,692

The weighted-average grant date fair value of restricted stock units granted, the total fair value of restricted stock units granted,
and the fair value of restricted stock units that have vested are:
Fiscal Year Ended
October 29, October 30, October 31,
In thousands, except per share amounts 2023 2022 2021
Weighted-average Grant Date Fair Value $ 45.96 $ 44.14 $ 47.52
Fair Value of Restricted Stock Units Granted 10,889 15,980 10,699
Fair Value of Restricted Stock Units Vested 8,466 1,893 1,460

67
Restricted Shares: Restricted shares awarded to nonemployee directors annually on February 1 are subject to a restricted
period which expires the date of the Company’s next annual stockholders meeting. Newly elected directors receive a prorated
award of restricted shares of the Company's common stock, which expires on the date of the Company's second succeeding
annual stockholders meeting. A reconciliation of the restricted shares as of October 29, 2023, is:
Weighted-
average
Shares Grant Date
(in thousands) Fair Value
Restricted Shares Outstanding at October 30, 2022 37 $ 47.11
Granted 44 44.14
Vested (37) 47.11
Restricted Shares Outstanding at October 29, 2023 44 $ 44.14

The weighted-average grant date fair value of restricted shares granted, the total fair value of restricted shares granted, and the
fair value of shares that have vested are:
Fiscal Year Ended
October 29, October 30, October 31,
In thousands, except per share amounts 2023 2022 2021
Weighted-average Grant Date Fair Value $ 44.14 $ 47.11 $ 46.92
Fair Value of Restricted Shares Granted 1,920 1,760 1,760
Fair Value of Restricted Shares Vested 1,760 1,760 2,133

Deferred Stock Units: Nonemployee directors can elect to receive all or a portion of their annual retainer in the form of non-
forfeitable deferred stock units which vest immediately. The deferred stock units accumulate dividend equivalents, which are
provided as additional units. Each deferred stock unit represents the right to receive one share of the Company’s common stock
following the completion of the director’s service.

During fiscal 2023, the Company granted 17.5 thousand units, credited dividend equivalents of 2.7 thousand units and distributed
6.9 thousand units, which had a weighted-average fair value on the grant date of $38.93, $42.70, and $17.26 per share,
respectively. As of October 29, 2023, 118.2 thousand units were outstanding, which had a weighted-average fair value on the
grant date of $37.84 per share and an aggregate intrinsic fair value of $3.7 million.

Note N
Income Taxes

The components of the Provision for Income Taxes are as follows:

Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022 October 31, 2021
Current
U.S. Federal $ 161,016 $ 67,638 $ 171,732
State 20,166 20,054 7,541
Foreign 7,576 13,185 9,079
Total Current 188,758 100,877 188,352
Deferred
U.S. Federal 23,221 164,091 23,507
State 8,602 13,638 2,220
Foreign (29) (729) 2,950
Total Deferred 31,794 177,000 28,677
Total Provision for Income Taxes $ 220,552 $ 277,877 $ 217,029

The Company has elected to treat global intangible low-taxed income (GILTI) as a period cost.

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Deferred Income Taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred income
tax liabilities and assets are as
follows:
In thousands October 29, 2023 October 30, 2022
Deferred Tax Liabilities
Goodwill and Intangible Assets $ (477,282) $ (404,295)
Tax over Book Depreciation and Basis Differences (233,802) (246,411)
Other, net (33,105) (21,467)
Deferred Tax Assets
Pension and Other Post-retirement Benefits 42,952 42,794
Employee Compensation Related Liabilities 65,958 65,461
Marketing and Promotional Accruals 16,972 29,045
Inventory 46,856 10,368
Other, net 75,562 51,966
Net Deferred Tax (Liabilities) Assets $ (495,889) $ (472,539)

Reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
Fiscal Year Ended
October 29, 2023 October 30, 2022 October 31, 2021
U.S. Statutory Rate 21.0 % 21.0 % 21.0 %
State Taxes on Income, Net of Federal Tax Benefit 2.5 2.4 0.8
Stock-based Compensation (0.1) (1.5) (1.6)
Foreign-derived Intangible Income Deduction (1.3) (0.4) (0.4)
All Other, net (0.3) 0.2 (0.5)
Effective Tax Rate 21.8 % 21.7 % 19.3 %

As of October 29, 2023, the Company had $299.3 million of undistributed earnings from non-U.S. subsidiaries. The Company
maintains all earnings as permanently reinvested. Accordingly, no additional income taxes have been provided for withholding
tax, state tax, or other taxes.

Total income taxes paid during fiscal years 2023, 2022, and 2021 were $205.0 million, $93.1 million, and $167.0 million,
respectively.

The following table sets forth changes in the unrecognized tax benefits, excluding interest and penalties, for fiscal years 2023
and 2022.
In thousands
Balance as of October 31, 2021 $ 22,092
Tax Positions Related to the Current Period
Increases 3,618
Tax Positions Related to Prior Periods
Increases 1,890
Decreases (1,789)
Settlements (2,509)
Decreases Related to a Lapse of Applicable Statute of Limitations (3,782)
Balance as of October 30, 2022 $ 19,520
Tax Positions Related to the Current Period
Increases 3,876
Tax Positions Related to Prior Periods
Increases 2,131
Decreases (1,708)
Settlements (811)
Decreases Related to a Lapse of Applicable Statute of Limitations (3,881)
Balance as of October 29, 2023 $ 19,127

Unrecognized tax benefits, including interest and penalties, are recorded in Other Long-term Liabilities. If recognized as of
October 29, 2023 and October 30, 2022, $17.0 million, and $17.2 million, respectively, would impact the Company’s effective tax
rate. The Company includes accrued interest and penalties related to uncertain tax positions in Provision for Income Taxes, with
immaterial losses included during fiscal 2023, 2022 and 2021. The amount of accrued interest and penalties at October 29, 2023
and October 30, 2022, associated with unrecognized tax benefits was $2.4 million and $2.3 million, respectively.

69
The Company is regularly audited by federal and state taxing authorities. The IRS concluded its examination of fiscal 2021 in the
second quarter of fiscal 2023. Previously, the IRS placed the Company in the Bridge phase of the Compliance Assurance
Process (CAP) for fiscal 2020. In this phase, the IRS will not accept any disclosures, conduct any reviews, or provide any
assurances. The Company has elected to participate in CAP for fiscal years through 2023. The objective of CAP is to
contemporaneously work with the IRS to achieve federal tax compliance and resolve all or most of the issues prior to filing of the
tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the
program at any time.

The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2015.
While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related
unrecognized tax benefits may change based on the status of the examinations, it is not possible to reasonably estimate the
effect of any amount of such change to previously recorded uncertain tax positions.

The Inflation Reduction Act of 2022 was signed into law on August 16, 2022. The 15% corporate minimum tax will apply to the
Company in fiscal year 2024.

Note O
Earnings Per Share Data

The reported net earnings attributable to the Company were used when computing basic and diluted earnings per share. Diluted
earnings per share was calculated using the treasury stock method. The following table sets forth the shares used as the
denominator for those computations.
Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022 October 31, 2021

Basic Weighted-Average Shares Outstanding 546,421 544,918 541,114

Dilutive Potential Common Shares 2,562 4,648 6,466
Diluted Weighted-Average Shares Outstanding 548,982 549,566 547,580

Antidilutive Potential Common Shares 6,834 1,915 2,839

Note P
Segment Reporting

The Company develops, processes, and distributes a wide array of food products in a variety of markets. As described in Note A
- Summary of Significant Accounting Policies, the Company transitioned to a new operating model in the first quarter of fiscal
2023 and now reports its results in the following three segments: Retail, Foodservice, and International, which are consistent with
how the Company's chief operating decision maker (CODM) assesses performance and allocates resources. Prior period
segment results have been retrospectively recast to reflect the new reportable segments.

The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in the
retail market. This segment also includes the results from the Company’s MegaMex Foods, LLC joint venture.

The Foodservice segment consists primarily of the processing, marketing, and sale of food and nutritional products for
foodservice, convenience store, and commercial customers.

The International segment processes, markets, and sells Company products internationally. This segment also includes the
results from the Company’s international joint ventures, equity method investments, and royalty arrangements.

The Company's CODM reviews assets at a consolidated level and does not use assets by segment to evaluate performance or
allocate resources. Therefore, the Company does not disclose assets by segment. Intersegment sales are eliminated in

70
consolidation and are not reviewed when evaluating segment performance. The Company does not allocate deferred
compensation, investment income, interest expense, or interest income to its segments when measuring performance. The
Company also retains various other income and expenses at the corporate level. Equity in Earnings of Affiliates is included in
segment profit; however, earnings attributable to the Company’s corporate venturing investments and noncontrolling interests are
excluded. These items are included below as Net Unallocated Expense and Noncontrolling Interest when reconciling to Earnings
Before Income Taxes.

Financial measures for each of the Company’s reportable segments and reconciliation to consolidated Earnings Before Income
Taxes are set forth below. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost
allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently,
would report the profit and other financial information shown below.
Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022 October 31, 2021
Net Sales
Retail $ 7,749,039 $ 7,987,598 $ 7,418,079
Foodservice 3,639,492 3,691,408 3,130,174
International 721,479 779,799 837,936
Total Net Sales $ 12,110,010 $ 12,458,806 $ 11,386,189
Segment Profit
Retail $ 577,690 $ 721,832 $ 690,127
Foodservice 595,682 547,686 431,992
International 55,234 107,642 116,585
Total Segment Profit $ 1,228,606 $ 1,377,161 $ 1,238,704
Net Unallocated Expense 214,482 99,297 112,836
Noncontrolling Interest (653) 239 301
Earnings Before Income Taxes $ 1,013,472 $ 1,278,103 $ 1,126,170
Depreciation and Amortization
Retail $ 145,690 $ 135,824 $ 124,627
Foodservice 74,370 69,577 53,954
International 15,627 16,072 16,482
Corporate 17,623 14,413 14,246
Total Depreciation and Amortization $ 253,311 $ 235,885 $ 209,309

The Company’s products primarily consist of meat and other food products. Total revenue contributed by classes of similar
products are:
Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022 October 31, 2021
Perishable $ 8,511,795 $ 8,737,486 $ 8,437,851
Shelf-stable 3,598,215 3,721,320 2,948,338
Total Net Sales $ 12,110,010 $ 12,458,806 $ 11,386,189

Perishable includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and other items
that require refrigeration. Shelf-stable includes canned luncheon meats, nut butters, snack nuts, chili, shelf-stable microwaveable
meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and other items that do not require refrigeration.

Revenues from external customers are classified as domestic or foreign based on the location where title passes. No individual
foreign country is material to the consolidated results. Additionally, the Company’s long-lived assets located in foreign countries
are not significant. Total net sales attributed to the U.S. and all foreign countries in total are:
Fiscal Year Ended
In thousands October 29, 2023 October 30, 2022 October 31, 2021
U.S. $ 11,515,094 $ 11,776,883 $ 10,653,088
Foreign 594,915 681,923 733,101
Total Net Sales $ 12,110,010 $ 12,458,806 $ 11,386,189

In fiscal 2023, sales to Walmart Inc. (Walmart) represented $2.0 billion or 15.5% of the Company’s consolidated gross sales less
returns and allowances compared to $2.1 billion or 15.6% in fiscal 2022. Walmart is a customer for the Company's Retail and
International segments.

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Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

None.

Item 9A. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

As of the end of the period covered by this report (the Evaluation Date), the Company carried out an evaluation, under the
supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer, of the
effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the
Securities Exchange Act of 1934, as amended (the Exchange Act)). In designing and evaluating the disclosure controls and
procedures, management recognized any controls and procedures, no matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control objectives. Based on that evaluation, our Chief Executive Officer and
Chief Financial Officer concluded, as of the Evaluation Date, our disclosure controls and procedures were effective to provide
reasonable assurance the information we are required to disclose in reports we file or submit under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified in Securities and Exchange
Commission rules and forms, and such information is accumulated and communicated to our management, including our Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Internal Control over Financial Reporting

Management's report on the Company's internal control over financial reporting is included on page 35 of this report. The report
of the Company's independent registered public accounting firm related to their assessment of the effectiveness of internal
control over financial reporting is included on page 36 of this report.

There were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the
Exchange Act) through the fourth quarter of fiscal 2023 that have materially affected, or are reasonably likely to materially affect,
the Company’s internal control over financial reporting.

Item 9B. OTHER INFORMATION

During the fiscal quarter ended October 29, 2023, no director or officer of the Company adopted or terminated a "Rule 10b5-1
trading arrangement" or "non-Rule 10b5-1 trading arrangement," as the terms are defined in Item 408(a) of Regulation S-K.

Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT

INSPECTIONS
None.

PART III

Item 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

Information under “Item 1 – Election of Directors”, “Board Independence”, and information under “Board of Director and
Committee Meetings” in the definitive proxy statement for the Annual Meeting of Stockholders to be held January 30, 2024, is
incorporated herein by reference.

Information concerning Executive Officers is set forth in Part I of this Annual Report on Form 10-K, pursuant to Instruction to Item
401 of Regulation S-K.

The Company has adopted a Code of Ethical Business Conduct in compliance with applicable rules of the Securities and
Exchange Commission that applies to its principal executive officer, its principal financial officer, and its principal accounting
officer or controller, or persons performing similar functions. A copy of the Code of Ethical Business Conduct is available on the
Company’s website at www.hormelfoods.com, free of charge, under the caption, “Investors – Governance – Governance
Documents.” The Company intends to satisfy any disclosure requirement under Item 5.05 of Form 8-K regarding an amendment

72
to, or waiver from, a provision of this Code of Ethical Business Conduct by posting such information on the Company’s website at
the address and location specified above.

Item 11. EXECUTIVE COMPENSATION

Information commencing with “Executive Compensation” through "CEO Pay Ratio Disclosure”, and information under
“Compensation of Directors” in the definitive proxy statement for the Annual Meeting of Stockholders to be held January 30,
2024, is incorporated herein by reference.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND

MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Information regarding the Company's equity compensation plans as of October 29, 2023, is presented below:
Number of
Securities to be
Issued Upon Number of Securities Remaining
Exercise of Weighted-average Available for Future Issuance
Outstanding Exercise Price of under Equity Compensation
Options, Warrants Outstanding Options, Plans (Excluding Securities
Plan Category and Rights(1) Warrants and Rights(2) Reflected in Column (a))
(a) (b) (c)
Equity Compensation Plans
Approved by
Security Holders 17,268,449 $37.61 10,099,031
Equity Compensation Plans
Not Approved by
Security Holders — — —
Total 17,268,449 $37.61 10,099,031
(1) Includes 16,383,844 stock options, 722,899 restricted stock units, 43,502 restricted shares and 118,204 deferred stock units.
(2) Only includes the weighted-average exercise price of outstanding stock options.

Information under “Security Ownership of Certain Beneficial Owners” and “Security Ownership of Management” in the definitive
proxy statement for the Annual Meeting of Stockholders to be held January 30, 2024, is incorporated herein by reference.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR

INDEPENDENCE

Information under “Related Party Transactions” and “Board Independence” in the definitive proxy statement for the Annual
Meeting of Stockholders to be held January 30, 2024, is incorporated herein by reference.

Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information under “Independent Registered Public Accounting Firm Fees” and “Audit Committee Preapproval Policies and
Procedures” in the definitive proxy statement for the Annual Meeting of Stockholders to be held January 30, 2024, is incorporated
herein by reference.

73
PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

The following consolidated financial statements of Hormel Foods Corporation for the fiscal year ended October 29, 2023, are
filed as part of this report:

Consolidated Statements of Operations – Fiscal Years Ended October 29, 2023, October 30, 2022, and October 31, 2021.

Consolidated Statements of Comprehensive Income – Fiscal Years Ended October 29, 2023, October 30, 2022, and October
31, 2021.

Consolidated Statements of Financial Position – October 29, 2023 and October 30, 2022.

Consolidated Statements of Changes in Shareholders’ Investment – Fiscal Years Ended October 29, 2023, October 30,
2022, and October 31, 2021.

Consolidated Statements of Cash Flows – Fiscal Years Ended October 29, 2023, October 30, 2022, and October 31, 2021.

Notes to the Consolidated Financial Statements

Report of Management

Report of Independent Registered Public Accounting Firm (PCAOB ID: 42)

FINANCIAL STATEMENT SCHEDULES

The following consolidated financial statement schedule of Hormel Foods Corporation required is submitted herewith:

Schedule II – Valuation and Qualifying Accounts and Reserves–Fiscal Years Ended October 29, 2023, October 30, 2022,
and October 31, 2021.

HORMEL FOODS CORPORATION

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
In thousands

Additions/(Benefits)
Balance at Charged to Other
Beginning Charged to Cost Accounts Deductions Balance at
Classification of Period and Expenses (Describe) (Describe) End of Period
Valuation reserve deduction from assets account:
(1)
Fiscal year ended October 29, 2023 $ 3,507 $ 289 $ — $ 275 $ 3,557
Allowance for doubtful accounts receivable (2)
(36)
(1)
Fiscal year ended October 30, 2022 $ 4,033 $ (646) $ — $ 31 $ 3,507
Allowance for doubtful accounts receivable (2)
(151)
(3) (1)
Fiscal year ended October 31, 2021 $ 4,012 $ 146 $ (12) $ 138 $ 4,033
Allowance for doubtful accounts receivable (2)
(25)
(1) Uncollectible accounts written off.
(2) Recoveries on accounts previously written off.
(3) Consolidation of the Sadler's reserve.

FINANCIAL STATEMENTS AND SCHEDULES OMITTED

All other financial statements and schedules for which provision is made in the applicable accounting regulations of the
Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have
been omitted.

74
HORMEL FOODS CORPORATION
LIST OF EXHIBITS
NUMBER DESCRIPTION OF DOCUMENT
3.1(1) Restated Certificate of Incorporation as amended January 27, 2016. (Incorporated by reference to Exhibit 3.1
to Hormel’s Annual Report on Form 10-K dated December 21, 2016, File No. 001-02402.)

3.2(1) Bylaws as amended to date. (Incorporated by reference to Exhibit 3(ii) to Hormel’s Current Report on Form 8-
K dated May 21, 2018, File No. 001-02402.)

4.1(1) Description of Capital Stock. (Incorporated by reference to Exhibit 4.3 to the Company's Annual Report on
Form 10-K filed on December 6, 2019, File No. 001-02402.)

4.2(1) Indenture dated as of April 1, 2011, between the Company and U.S. Bank National Association. (Incorporated
by reference to Exhibit 4.3 to Hormel’s Registration Statement on Form S-3 filed on April 4, 2011, File
No. 333-173284.)

4.3(1) Form of 1.800% Notes due June 11, 2030. (Incorporated by reference to Exhibit 4.1 to the Company's Current
Report on Form 8-K filed on June 11, 2020, File No. 001-02402.)
4.4(1) Pursuant to Item 601(b)(4)(iii) of Regulation S-K, copies of instruments defining the rights of holders of certain
long-term debt are not filed. Hormel agrees to furnish copies thereof to the Securities and Exchange
Commission upon request.

4.5(1) Form of 0.650% Notes due 2024 (Incorporated by reference to Exhibit 4.1 to the Company's Current Report
on Form 8-K dated June 3, 2021, File No. 001-02402.)

4.6(1) Form of 1.700% Notes due 2028 (Incorporated by reference to Exhibit 4.2 to the Company's Current Report
on Form 8-K dated June 3, 2021, File No. 001-02402.)

4.7(1) Form of 3.050% Notes due 2051 (Incorporated by reference to Exhibit 4.3 to the Company's Current Report
on Form 8-K dated June 3, 2021, File No. 001-02402.)

10.1(1)(3) Hormel Foods Corporation Supplemental Executive Retirement Plan (2007 Restatement). (Incorporated by
reference to Exhibit 10.2 to Hormel’s Current Report on Form 8-K dated November 21, 2011, File
No. 001-02402.)

10.2(1)(3) First Amendment of Hormel Foods Corporation Supplemental Executive Retirement Plan (2007 Restatement).
(Incorporated by reference to Exhibit 10.3 to Hormel’s Current Report on Form 8-K dated November 21, 2011,
File No. 001-02402.)
10.3(1)(3) Second Amendment of Hormel Foods Corporation Supplemental Executive Retirement Plan (2007
Restatement). (Incorporated by reference to Exhibit 10.4 to Hormel’s Current Report on Form 8-K dated
November 21, 2011, File No. 001-02402.)

10.4(1)(3) Third Amendment of Hormel Foods Corporation Supplemental Executive Retirement Plan (2007
Restatement). (Incorporated by reference to Exhibit 10.5 to Hormel’s Current Report on Form 8-K dated
November 21, 2011, File No. 001-02402.)

10.5(1)(3) Hormel Foods Corporation 2000 Stock Incentive Plan (Amended 1-31-2006). (Incorporated by reference to
Exhibit 10.1 to Hormel’s Current Report on Form 8-K dated January 31, 2006, File No. 001-02402.)
10.6(1)(3) Hormel Foods Corporation Executive Deferred Income Plan II (November 21, 2011 Restatement).
(Incorporated by reference to Exhibit 10.1 to Hormel’s Current Report on Form 8-K dated November 21, 2011,
File No. 001-02402.)

10.7(1)(3) Form of Indemnification Agreement for Directors and Officers. (Incorporated by reference to Exhibit 10.1 to
Hormel’s Quarterly Report on Form 10-Q for the quarter ended April 29, 2012, File No. 001-02402.)

10.8(1)(3) Hormel Foods Corporation 2009 Nonemployee Director Deferred Stock Plan (Plan Adopted November 24,
2008). (Incorporated by reference to Exhibit 10.2 to Hormel’s Quarterly Report on Form 10-Q for the quarter
ended January 25, 2009, File No. 001-02402.)

10.9(1)(3) Hormel Foods Corporation 2009 Long-Term Incentive Plan. (Incorporated by reference to Appendix A to
Hormel’s definitive Proxy Statement filed on December 18, 2013, File No. 001-02402.)

10.10(1)(3) Hormel Survivor Income Plan for Executives (1993 Restatement). (Incorporated by reference to Exhibit 10.11
to Hormel’s Annual Report on Form 10-K for the fiscal year ended October 29, 2006, File No. 001-02402.)

10.11(1)(3) Hormel Foods Corporation 2018 Incentive Compensation Plan. (Incorporated by reference to Appendix A to
Hormel's Definitive Proxy Statement filed on December 20, 2017, File No. 001-02402.)

10.12(1)(3) Hormel Foods Corporation Restricted Stock Award Agreement Under the 2018 Incentive Compensation Plan
(Non-Employee Directors). (Incorporated by reference to Exhibit 10.1 to Hormel's Current Report on Form 8-K
dated January 30, 2018, File No. 001-02402.)

75
NUMBER DESCRIPTION OF DOCUMENT
(1)(3)
10.13 Hormel Foods Corporation Stock Option Agreement Under the 2018 Incentive Compensation Plan.
(Incorporated by reference to Exhibit 10.2 to Hormel's Current Report on Form 8-K dated January 30, 2018,
File No. 001-02402.)

10.14(1)(3) Hormel Foods Corporation Restricted Stock Unit Agreement Under the 2018 Incentive Compensation Plan.
(Incorporated by reference to Exhibit 10.15 to Hormel's Annual Report on Form 10-K for the fiscal year ended
October 27, 2019, File No. 001-02402.)

10.15(1) First Amendment to the Credit Agreement, dated as of April 17, 2023, among the Company, Wells Fargo
Bank, National Association, as Administrative Agent, Swingline Lender and Issuing Lender, and the lenders
identified on the signature pages thereof. (Incorporated by reference to Exhibit 10.1 to Hormel's Quarterly
Report on Form 10-Q for the quarter ended April 30, 2023, File No. 001-02402)

21.1(2) Subsidiaries of the Registrant.

23.1(2) Consent of Independent Registered Public Accounting Firm.

(2)
24.1 Power of Attorney.

31.1(2) Certification Required Under Section 302 of the Sarbanes-Oxley Act of 2002.

31.2(2) Certification Required Under Section 302 of the Sarbanes-Oxley Act of 2002.
(2)
32.1 Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.

97.1(2) Hormel Foods Corporation Compensation Recovery Policy

101(2) The following financial statements from the Company's Annual Report on Form 10-K for the fiscal year ended
October 29, 2023, formatted in Inline XBRL: (i) Consolidated Statements of Financial Position, (ii)
Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income,
(iv) Consolidated Statements of Changes in Shareholders’ Investment, (v) Consolidated Statements of Cash
Flows, and (vi) Notes to the Consolidated Financial Statements, tagged as blocks of text and including
detailed tags.
104(2) The cover page from the Company's Annual Report on Form 10-K for the fiscal year ended October 29, 2023,
formatted in Inline XBRL (included as Exhibit 101).
(1)
Document has previously been filed with the Securities and Exchange Commission and is incorporated herein by reference.
(2)
These exhibits transmitted via EDGAR.
(3)
Management contract or compensatory plan or arrangement.

Item 16. FORM 10-K SUMMARY

Not applicable.

76
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.

HORMEL FOODS CORPORATION

By: /s/ JAMES P. SNEE December 6, 2023
JAMES P. SNEE Date
Chairman of the Board, President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates indicated.

Signature Title Date

/s/ JAMES P. SNEE Chairman of the Board, President and Chief Executive Officer December 6, 2023
JAMES P. SNEE (Principal Executive Officer)

/s/ JACINTH C. SMILEY Executive Vice President and Chief Financial Officer December 6, 2023
JACINTH C. SMILEY (Principal Financial Officer)

/s/ PAUL R. KUEHNEMAN Vice President and Controller December 6, 2023

PAUL R. KUEHNEMAN (Principal Accounting Officer)

/s/ PRAMA BHATT* Director December 6, 2023

PRAMA BHATT

/s/ GARY C. BHOJWANI* Director December 6, 2023

GARY C. BHOJWANI

/s/ STEPHEN M. LACY* Director December 6, 2023

STEPHEN M. LACY

/s/ ELSA A. MURANO* Director December 6, 2023

ELSA A. MURANO

Director
SUSAN K. NESTEGARD

/s/ WILLIAM A. NEWLANDS* Director December 6, 2023

WILLIAM A. NEWLANDS

/s/ CHRISTOPHER J. POLICINSKI* Director December 6, 2023

CHRISTOPHER J. POLICINSKI

/s/ JOSE L. PRADO* Director December 6, 2023

JOSE L. PRADO

/s/ SALLY J. SMITH* Director December 6, 2023

SALLY J. SMITH

/s/ STEVEN A. WHITE* Director December 6, 2023

STEVEN A. WHITE

/s/ RAYMOND G. YOUNG* Director December 6, 2023

RAYMOND G. YOUNG

/s/ MICHAEL P. ZECHMEISTER* Director December 6, 2023

MICHAEL P. ZECHMEISTER

*By: /s/ PAUL R. KUEHNEMAN December 6, 2023

PAUL R. KUEHNEMAN
as Attorney-In-Fact

77
EXHIBIT 21.1

SUBSIDIARIES OF HORMEL FOODS CORPORATION

The Company owns the indicated percentage of the issued and outstanding stock or other equity interests of the following
entities:
State or
Country of Ownership
Name of Subsidiary Incorporation Percentage
199 Ventures, LLC Minnesota 100 %
Alma Foods, LLC Delaware 100 %
Applegate Farms, LLC Delaware 100 %
Applegate Investment Corporation Delaware 100 %
Beijing Hormel Business Management Co., Ltd China 100 %
Beijing Hormel Foods Co. Ltd. China 80 %
Burke Marketing Corporation Iowa 100 %
Campoco, Inc. Minnesota 100 %
Century Foods International, LLC Delaware 100 %
Century Foods Land Development, LLC Delaware 100 %
Clean Field Comércio de Produtos Alimentícios Ltda. Brazil 100 %
Columbus Manufacturing, Inc. Delaware 100 %
Creative Contract Packaging, LLC Delaware 100 %
Cultivated Foods, LLC Minnesota 100 %
Dan’s Prize, Inc. Minnesota 100 %
Diversified Foods Insurance Company, LLC Vermont 100 %
Dold Foods, LLC Delaware 100 %
Fontanini Foods, LLC Minnesota 100 %
HF International Holdings C.V. Netherlands 100 %
Hormel (China) Investment Co., Ltd. China 100 %
Hormel (Zhejiang) Innovation Technology Co., Ltd. China 100 %
Hormel Canada, Ltd. Canada 100 %
Hormel Financial Services Corporation Minnesota 100 %
Hormel Foods Asia Pacific Pte. Ltd. Singapore 100 %
Hormel Foods Australia Pty Limited Australia 100 %
Hormel Foods Brazil Participações Ltda. Brazil 100 %
Hormel Foods Corporate Services, LLC Delaware 100 %
Hormel Foods International Corporation Delaware 100 %
Hormel Foods Japan KK Japan 100 %
Hormel Foods Mexico, S. de R.L. de C.V. Mexico 100 %
Hormel Foods Operations, LLC Minnesota 100 %
Hormel Foods Panama S.A. Panama 100 %
Hormel Foods Sales, LLC Delaware 100 %
Hormel Foods, LLC Minnesota 100 %
Hormel Health Labs, LLC Minnesota 100 %
Hormel International Investments, LLC Delaware 100 %
Hormel MM Holding Corporation Delaware 100 %
Hormel Netherlands B.V. Netherlands 100 %
Jennie-O Turkey Store International, Inc. Minnesota 100 %
Jennie-O Turkey Store, Inc. Minnesota 100 %
Jennie-O Turkey Store, LLC Minnesota 100 %
Jiaxing Hormel Foods Co., Ltd China 100 %
JJOTS, LLC Minnesota 100 %
Justin’s, LLC Delaware 100 %
Lloyd’s Barbeque Company, LLC Delaware 100 %
Logistic Service, LLC Delaware 100 %
Melting Pot Foods, LLC Delaware 100 %
Mespil, Inc. Delaware 100 %
Mexican Accent, LLC Delaware 100 %
Mountain Prairie, LLC Colorado 100 %

78
 State or
Country of Ownership
Name of Subsidiary Incorporation Percentage
Omamori Indústria de Alimentos Ltda. Brazil 100 %
Osceola Food, LLC Delaware 100 %
Progressive Processing, LLC Delaware 100 %
Provena Foods Inc. California 100 %
PT Hormel Garudafood Jaya Indonesia 51 %
Rochelle Foods, LLC Delaware 100 %
Sadler’s Smokehouse, LLC Minnesota 100 %
Shanghai Hormel Foods Co., Ltd. China 100 %
Skippy Foods, LLC Minnesota 100 %
Stagg Foods, LLC Delaware 100 %
Valley Fresh, Inc. Delaware 100 %
West Central Turkeys, LLC Delaware 100 %

79
EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the following Registration Statements:

(1) Registration Statement Number 33-14615 on Form S-8 dated May 27, 1987,

(2) Post-Effective Amendment Number 1 to Registration Statement Number 33-29053 on Form S-8 dated January 26,
1990,

(3) Registration Statement Number 333-44178 on Form S-8 dated August 21, 2000,

(4) Registration Statement Numbers 333-102805, 333-102806, 333-102808, and 333-102810 on Forms S-8 dated January
29, 2003,

(5) Registration Statement Number 333-110776 on Form S-8 dated November 26, 2003,

(6) Registration Statement Number 333-131625 on Form S-8 dated February 7, 2006,

(7) Registration Statement Number 333-136642 on Form S-8 dated August 15, 2006,

(8) Registration Statement Number 333-162405 on Form S-8 dated October 9, 2009,

(9) Registration Statement Numbers 333-191719 and 333-191720 on Forms S-8 dated October 15, 2013,

(10) Registration Statement Number 333-217593 on Form S-3ASR dated May 2, 2017,

(11) Registration Statement Number 333-222801 on Form S-8 dated January 1, 2018,

(12) Registration Statement Number 333-237980 on Form S-3ASR dated May 4, 2020; and

(13) Registration Statement Number 333-268693 on Form S-3ASR dated December 6, 2022

of our reports dated December 6, 2023, with respect to the consolidated financial statements and schedule of Hormel Foods
Corporation and the effectiveness of internal control over financial reporting of Hormel Foods Corporation included in this Annual
Report (Form 10-K) of Hormel Foods Corporation for the year ended October 29, 2023.

/s/ Ernst & Young LLP

Minneapolis, Minnesota
December 6, 2023

80
EXHIBIT 24.1

POWER OF ATTORNEY

Each person whose signature appears below hereby constitutes and appoints each of Jacinth C. Smiley, Paul R. Kuehneman,
and Florence Makope, with full power to each to act without the other, his or her true and lawful attorney-in-fact and agent with
full power of substitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign the Annual
Report on Form 10-K of Hormel Foods Corporation (“Hormel”) for Hormel’s fiscal year ended October 29, 2023, and any or all
amendments to said Annual Report, and to file the same, with all exhibits thereto, and other documents in connection therewith,
with the Securities and Exchange Commission, and to file the same with such other authorities as necessary, granting unto each
such attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary
to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby
ratifying and confirming all that each such attorney-in-fact and agent, or his substitute, may lawfully do or cause to be done by
virtue hereof.

Signature Title Date

/s/ James P. Snee Chairman of the Board, President, Chief Executive Officer and Director November 17, 2023
James P. Snee (Principal Executive Officer)

/s/ Jacinth C. Smiley Executive Vice President and Chief Financial Officer November 20, 2022
Jacinth C. Smiley (Principal Financial Officer)

/s/ Paul R. Kuehneman Vice President and Controller November 20, 2023
Paul R. Kuehneman (Principal Accounting Officer)

/s/ Prama Bhatt Director November 20, 2023

Prama Bhatt

/s/ Gary C. Bhojwani Director November 16, 2023

Gary C. Bhojwani

/s/ Stephen M. Lacy Director November 15, 2023

Stephen M. Lacy

/s/ Elsa A. Murano Director November 19, 2023

Elsa A. Murano

Director
Susan K. Nestegard

/s/ William A. Newlands Director November 20, 2023

William A. Newlands

/s/ Christopher J. Policinski Director November 20, 2023

Christopher J. Policinski

/s/ Jose L. Prado Director November 20, 2023

Jose L. Prado

/s/ Sally J. Smith Director November 20, 2023

Sally J. Smith

/s/ Steven A. White Director November 19, 2023

Steven A. White

/s/ Raymond G. Young Director November 20, 2023

Raymond G. Young

/s/ Micheal P. Zechmeister Director November 16, 2023

Michael P. Zechmeister

81
EXHIBIT 31.1

CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, James P. Snee, certify that:

1. I have reviewed this Annual Report on Form 10-K of Hormel Foods Corporation for the fiscal year ended October 29, 2023;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.

Dated: December 6, 2023 Signed: /s/ JAMES P. SNEE

JAMES P. SNEE
Chairman of the Board, President and Chief Executive Officer

82
EXHIBIT 31.2

CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jacinth C. Smiley, certify that:

1. I have reviewed this Annual Report on Form 10-K of Hormel Foods Corporation for the fiscal year ended October 29, 2023;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.

Dated: December 6, 2023 Signed: /s/ JACINTH C. SMILEY

JACINTH C. SMILEY
Executive Vice President and Chief Financial Officer

83
EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE
SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Hormel Foods Corporation (the “Company”) for the period ended October
29, 2023, as filed with the Securities and Exchange Commission (the “Report”), the undersigned hereby certify, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934,
as amended; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.

Dated: December 6, 2023 /s/ JAMES P. SNEE

JAMES P. SNEE
Chairman of the Board, President and Chief Executive
Officer

Dated: December 6, 2023 /s/ JACINTH C. SMILEY

JACINTH C. SMILEY
Executive Vice President and Chief Financial Officer

84
Stockholder Information

Independent Auditors An optional direct dividend deposit service offers

Ernst & Young LLP stockholders a convenient method of having quarterly
220 South Sixth Street, Ste. 1400 dividend payments electronically deposited into their personal
Minneapolis, MN 55402-4509 checking or savings accounts. The dividend payment is made
in the account each payment date, providing stockholders
Transfer Agent and Registrar with immediate use of their money. For information about
EQ Shareowner Services the service and how to participate, contact EQ Shareowner
1110 Centre Pointe Curve, Suite 101 Services, transfer agent. You may also activate this feature
MAC N9173-010 on the internet at www.shareowneronline.com.
Mendota Heights, MN 55120
www.shareowneronline.com Dividends
The declaration of dividends and all dates related to the
For the convenience of stockholders, a toll-free number
declaration of dividends are subject to the judgment and
(1-877-536-3559) can be used whenever questions arise
discretion of the Board of Directors of Hormel Foods
regarding changes in registered ownership, lost or stolen
Corporation. Quarterly dividends are typically paid on the
certificates, address changes, or other matters pertaining
15th of February, May, August and November. Postal delays
to the transfer of stock or stockholder records. When
may cause receipt dates to vary.
requesting information, stockholders must provide their EQ
account number or tax identification number, the name(s) in Reports and Publications
which their stock is registered and their record address. Copies of the Company’s Form 10-K (annual report) and
Form 10-Q (quarterly report) to the Securities and Exchange
The Company participates in the Direct Registration Profile
Commission (SEC), proxy statement, all news releases and
Modification System. Transfers or issuances of shares are
other corporate literature are available free upon request by
now issued in book-entry form, unless you specifically
emailing media@hormel.com or by accessing the information
request a stock certificate. A statement will be delivered to
on the internet at www.hormelfoods.com.
you, reflecting any transactions processed in your account.
Notice and access to the Company’s Annual Report is mailed
The transfer agent makes stockholder account data available
approximately 40 days before the Annual Meeting. The
via the internet to stockholders of record. This service
Annual Report can be viewed at the website named above, or
allows stockholders to view various account details, such
a hard copy will be available free upon request by emailing
as certificate information, dividend payment history, and/or
ir@hormel.com.
dividend reinvestment plan records, over a secure internet
connection with the required entry of an account number and Annual Meeting
authentication ID. Information is available 24 hours per day, The Annual Meeting of Stockholders will be held on Tuesday,
seven days a week. If you are interested, you may use the January 30, 2024, at 6:00 p.m. (CST) in a virtual meeting
website www.shareowneronline.com and access “Register” format via live webcast.
to arrange for setup.
To attend the Annual Meeting online, please visit
Dividend Reinvestment Plan www.virtualshareholdermeeting.com/HRL2024.
The Hormel Foods Corporation Dividend Reinvestment Plan,
available to record stockholders, allows for full dividend Questions about Hormel Foods
reinvestment and voluntary cash purchases with brokerage Stockholder and Analyst Inquiries: ir@hormel.com
commissions or other service fees paid by the Company. Media Inquiries: media@hormel.com
Automatic debit for cash contributions is also available.
Consumer Response
This is a convenient method to have money automatically
Inquiries regarding products of Hormel Foods Corporation
withdrawn each month from a checking or savings account
should be addressed to:
and invested in your Dividend Reinvestment Plan account.
To enroll in the plan or obtain additional information, contact Consumer Response
EQ Shareowner Services, using the address or telephone Hormel Foods Corporation
number provided, listed previously in this section as Company 1 Hormel Place
transfer agent and registrar. Enrollment in the plan is also Austin, MN 55912-3680
available on the internet at www.shareowneronline.com. or call 1-800-523-4635
Senior Leadership Team

Jim Snee Katie Larson Tyler Hulsebus

Chairman of the Board, President Senior Vice President, Vice President,
and Chief Executive Officer Human Resources Engineering

Jacinth Smiley Pierre Lilly Brian Johnson

Executive Vice President Senior Vice President Vice President
and Chief Financial Officer and Chief Compliance Office and Corporate Secretary

Deanna Brady Kevin Myers, Ph.D. Paul Kuehneman

Executive Vice President, Senior Vice President, Vice President
Retail Research and Development and Controller
and Quality Control
Scott Aakre Leslie Lee
Group Vice President Lisa Selk Vice President,
and Chief Marketing Officer – Retail Senior Vice President, Digital Experience
Retail – Brand Fuel
Jeff Baker Florence Makope
Group Vice President, Nathan Annis Vice President
Retail Marketing – Value-Added Meats Vice President, and Treasurer
Corporate Development
Mark Coffey Mark Morey
Group Vice President, Richard Carlson Vice President,
Supply Chain Vice President, Operations – Fresh Pork/Foodservice
Quality Management
PJ Connor Pat Schwab
Group Vice President, Lynn Egner Vice President,
Retail Sales Vice President, Retail Sales – East
Retail Sales – West
Steve Lykken Annemarie Vaupel
Group Vice President; Jen Ehresmann Vice President,
President, Jennie-O Turkey Store, Inc. Vice President, Foodservice Marketing
Supply Chain
Swen Neufeldt Mark Vaupel
Group Vice President; John Forsythe Vice President,
President, Hormel Foods Vice President, Information Technology Services
International Corporation Grocery Products Operations – Shelf Stable
Natosha Walsh
Mark Ourada Jeff Grev Vice President,
Group Vice President, Vice President, Retail Marketing – Convenient Meals
Foodservice Legislative Affairs and Proteins

Tony Hoffman Clint Walters

Vice President, Vice President,
Retail Sales – Walmart/Sam’s Operations – Refrigerated Foods

Henry Hsia David Weber

Vice President, Vice President,
Retail Marketing – Snacking and Entertaining Foodservice Sales

Printed on recycled paper. Please recycle.

Board of Directors

James P. Snee Christopher J. Policinski

Chairman of the Board, President Former President and
and Chief Executive Officer Chief Executive Officer,
Director since October 2015 Land O’Lakes, Inc.
Director since September 2012

William A. Newlands Jose Luis Prado

President and Chief Executive Officer, Former President,
Constellation Brands, Inc. Quaker Oats North America and
Director since November 2018 Global Baking, PepsiCo, Inc.

Lead Director since January 2023 Director since March 2019

Prama Bhatt Sally J. Smith

Chief Digital Officer, Former President and
Ulta Beauty, Inc. Chief Executive Officer,
Director since November 2019 Buffalo Wild Wings, Inc.
Director since July 2014

Gary C. Bhojwani Steven A. White

Chief Executive Officer, Former President,
CNO Financial Group, Inc. Comcast West Division,
Director since July 2014 Comcast Corporation
Director since July 2014

Stephen M. Lacy Raymond G. Young

Former Chairman of the Board, Former Vice Chairman and
President and Chief Executive Officer, Chief Financial Officer,
Meredith Corporation Archer-Daniels-Midland Company
Director since September 2011 Director since March 2023

Elsa A. Murano, Ph.D. Michael P. Zechmeister

Director of Norman Borlaug Institute Chief Financial Officer,
for International Agriculture, C.H. Robinson Worldwide, Inc.
Professor and President Emerita, Director since March 2023
Texas A&M University
Director since September 2006

Susan K. Nestegard
Former President,
Global Healthcare Sector,
Ecolab Inc.
Director since October 2009
 Hormel Foods has consistently demonstrated its leadership as a corporate citizen,
setting an exemplary standard for responsible and impactful business practices.
Our 20 By 30 Challenge* furthers this commitment, including aggressive goals
pertaining to our products, environmental sustainability, inclusion and diversity,
education, hunger relief and more. Below are some of the highlights from our
2022 Annual Global Impact Report.

Our People
As one of the most trusted food companies in the world, we maintain an
unwavering commitment to empower, support and inspire our people to make
a difference and drive continuous excellence in their roles within our company
and throughout the food industry. Our team members are the cornerstone of our
successes and help to fulfill our purpose of Inspired People. Inspired Food.™

Our Products
We launched more than 400 new items, including specially designed items
for the underserved patient community and an expansion of our plant-based
product portfolio to support food justice, security and accessibility for all.

Our Supply Chain

Our purchasing spend with diverse businesses was over $1.5 billion across
Tier 1 and Tier 2 suppliers in calendar year 2022. Our supply chain management
efforts are focused on ensuring the quality and safety of ingredients, and
supporting the health of animals and the lives of farmers in our value chain.

Our Communities
We remain inspired to help others and build a thriving future for all.
From cash and product donations to educational support and volunteer
activities, we continually look for ways to do our part in making the
world a better place.

Our Planet
We reduced packaging materials by more than 1.5 million pounds in 2022,
submitted our SBTs for validation and executed a series of sustainability
projects and efforts to continuously improve our environmental footprint and
management strategies.

*More information on the 20 By 30 Challenge can be found in the Company’s 2022 Annual Global Impact Report available online at hormelfoods.com.

Hormel Foods Corporation | 1 Hormel Place | Austin, MN | 55912-3680 | www.hormelfoods.com