Financial Analysis

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 10 years and seven years, respectively. The Company has also entered into grow-out contracts with independent farmers to raise turkeys for the Company for periods up to 24 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 two years. As of October 26, 2025, the Company is committed to make purchases under these contracts, assuming current price levels, for future fiscal years as follows: In thousands 2026 $ 1,229,259 2027 854,304 2028 553,565 2029 324,840 2030 241,015 Later Years 560,870 Total $ 3,763,854 Purchases under these contracts for fiscal 2025, 2024, and 2023 were $1.3 billion, $1.3 billion, and $1.4 billion, respectively. Other Commitments and Guarantees: The Company has commitments of approximately $18.0 million related to infrastructure improvements supporting various manufacturing facilities and $4.7 million for a media advertising agreement as of October 26, 2025. The Company has future commitments totaling $28.7 million for a corporate …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

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 2025, 2024, and 2023, was $25.6 million, $23.2 million, and $24.1 million, respectively. As of October 26, 2025, there was $23.2 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 2025, 2024, and 2023, cash received from stock option exercises was $22.1 million, $40.7 million, and $12.0 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 5.3 million at October 26, 2025, 8.2 million at October 27, 2024, and 10.1 million at October 29, 2023. Stock Options: The Companys 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 26, 2025, is: Shares (in thousands) Weighted-average Exercise Price Weighted-average Remaining Co …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The Companys financial assets and liabilities carried at fair value on a recurring basis and their level within the fair value hierarchy are presented in the tables below. See additional discussion of fair value measurements in Note A - Summary of Significant Accounting Policies. Fair Value Measurements at October 26, 2025 Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) In thousands Assets at Fair Value Short-term Marketable Securities $ 32,909 $ 6,944 $ 25,965 $ Other Trading Securities 219,197 219,197 Commodity Derivatives 9,888 9,212 676 Total Assets at Fair Value $ 261,994 $ 16,156 $ 245,838 $ Liabilities at Fair Value Deferred Compensation $ 63,582 $ $ 63,582 $ Commodity Derivatives 4,291 3,436 855 Total Liabilities at Fair Value $ 67,873 $ 3,436 $ 64,437 $ Fair Value Measurements at October 27, 2024 Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) In thousands Assets at Fair Value Short-term Marketable Securities $ 24,742 $ 5,134 $ 19,608 $ Other Trading Securities 209,729 209,729 Commodity Derivatives 9,890 9,575 314 Total Assets at Fair Value $ 244,361 $ 14,710 $ 229,652 $ Liabilities at Fair Value Deferred Compensation $ 62,101 $ $ 62,101 $ Commodity Derivatives 12,638 11,127 1,510 Total Liabilities at Fair V …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill and Intangible Assets Goodwill: The change in the carrying amount of goodwill for the fiscal years ended October 26, 2025, and October 27, 2024, is: In thousands Retail Foodservice International Total Balance at October 29, 2023 $ 2,916,796 $ 1,750,594 $ 261,074 $ 4,928,464 Goodwill Sold (2,239) (2,239) Foreign Currency Translation (2,738) (2,738) Balance at October 27, 2024 $ 2,916,796 $ 1,748,355 $ 258,336 $ 4,923,487 Foreign Currency Translation 600 600 Balance at October 26, 2025 $ 2,916,796 $ 1,748,355 $ 258,936 $ 4,924,087 The goodwill sold during fiscal 2024 was due to the divestiture of Hormel Health Labs. Intangible Assets: The Company's intangible assets by type are: October 26, 2025 October 27, 2024 In thousands Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived Intangible Assets Customer Relationships $ 134,328 $ (78,565) $ 55,763 $ 168,239 $ (93,536) $ 74,703 Other Definite-lived Intangibles 59,445 (24,620) 34,824 59,241 (20,107) 39,134 Trade Names/Trademarks 6,210 (6,210) 6,210 (5,996) 214 Foreign Currency Translation (4,476) (4,476) (4,458) (4,458) Total Definite-lived Intangible Assets $ 199,982 $ (113,872) $ 86,111 $ 233,690 $ (124,097) $ 109,593 Indefinite-lived Intangible Assets Brands/Trade Names/Trademarks $ 1,567,623 $ 1,629,582 Other Indefinite-lived Intangibles 184 Foreign Currency Translation (6,437) (6,655) Total Indefinite-lived Intangible Asse …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes The components of the Provision for Income Taxes are as follows: Fiscal Year Ended In thousands October 26, 2025 October 27, 2024 October 29, 2023 Current U.S. Federal $ 97,519 $ 110,928 $ 161,016 State 17,618 17,002 20,166 Foreign 17,675 15,203 7,576 Total Current 132,812 143,133 188,758 Deferred U.S. Federal 46,851 74,461 23,221 State 7,658 14,868 8,602 Foreign (1,637) (1,659) (29) Total Deferred 52,872 87,670 31,794 Total Provision for Income Taxes $ 185,684 $ 230,803 $ 220,552 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 26, 2025 October 27, 2024 Deferred Tax Liabilities Goodwill and Intangible Assets $ (618,099) $ (556,263) Tax over Book Depreciation and Basis Differences (204,612) (211,554) Other, Net (32,828) (39,618) Deferred Tax Assets Pension and Other Postretirement Benefits 43,434 50,078 Employee-related Liabilities 70,803 70,339 Marketing and Promotional Accruals 6,473 9,833 Inventory 8,445 6,853 Other, Net 70,165 84,733 Net Deferred Tax (Liabilities) Assets $ (656,219) $ (585,599) Reconciliation of the statutory federal income tax rate to the Companys effective tax rate is as follows: Fiscal Year Ended October 26, 2025 October 27, 2024 October 29, 2023 U.S. Statutory Rate 21.0 % 2 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company has operating leases for warehouses, manufacturing facilities, office space, transportation equipment, as well as miscellaneous real estate and equipment contracts. Finance leases primarily include turkey growing facilities and an aircraft. The Companys lessor portfolio consists primarily of immaterial operating leases of farmland to third parties. Lease information included on the Consolidated Statements of Financial Position are: In thousands Location on Consolidated Statements of Financial Position October 26, 2025 October 27, 2024 Right-of-Use Assets Operating Other Assets $ 163,351 $ 147,698 Finance Property, Plant, and Equipment, Net 25,589 30,484 Total Right-of-Use Assets $ 188,940 $ 178,183 Lease Liabilities Current Operating Accrued Expenses $ 34,723 $ 32,068 Finance Current Maturities of Long-term Debt 6,095 7,383 Long-term Operating Other Long-term Liabilities 133,263 121,286 Finance Long-term Debt Less Current Maturities 17,027 20,158 Total Lease Liabilities $ 191,109 $ 180,894 Lease expenses are: Fiscal Year Ended In thousands October 26, 2025 October 27, 2024 October 29, 2023 Operating Lease Cost (1) $ 46,355 $ 42,200 $ 34,209 Finance Lease Cost Amortization of Right-of-Use Assets 7,872 7,562 7,594 Interest on Lease Liabilities 799 1,042 1,361 Variable Lease Cost (2) 357,051 390,032 511,906 Total Lease Cost $ 412,077 $ 440,836 $ 555,070 (1) Includes short-term lease costs, which are immaterial. (2) ASC 842 - Leases requires disclosure of payme …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Long-term Debt and Other Borrowing Arrangements Long-term Debt consists of: In thousands October 26, 2025 October 27, 2024 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 4.800% Interest Due Semi-annually through March 2027 Maturity Date 500,000 500,000 Unamortized Discount on Senior Notes (5,848) (6,687) Unamortized Debt Issuance Costs (12,775) (15,628) Finance Lease Liabilities 23,122 27,541 Other Financing Arrangements 2,924 3,530 Total Debt 2,857,424 2,858,756 Less: Current Maturities of Long-term Debt 6,646 7,813 Long-term Debt Less Current Maturities $ 2,850,778 $ 2,850,944 Senior Unsecured Notes: On March 8, 2024, the Company issued senior notes in an aggregate principal amount of $500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800% per annum. Interest accrues on the notes from March 8, 2024, and is payable semi-annually in arrears on March 30 and September 30 of each year, commencing September 30, 2024. The notes may be redeemed in whole or in part at any time at the applicable redemption prices. If a change of control triggering event occurs, the Company must offer to purchase the …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Accounting Changes and Recent Accounting Pronouncements: New Accounting Pronouncements Recently Adopted Fiscal 2025 In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The ASU 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 allows the disclosure of additional measures of a segments 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 Company adopted ASU 2023-07 in fiscal 2025. Refer to Note Q - Segment Reporting for the updated disclosures. Fiscal 2024 No new accounting standards were adopted during fiscal 2024. Fiscal 2023 No new accounting standards were adopted during fiscal 2023. New Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update is intended to enhance transparency and decision usefulness of annual income tax disclosures. The ASU updates income tax disclosure requirements by requiring specific …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pension and Other Postretirement Benefits The Company maintains several defined benefit pension plans for eligible employees. Benefits under defined benefit pension plans for certain bargaining unit employees are based on stated amounts for each year of service. For certain non-bargaining unit hourly and salaried employees, defined benefit plan provisions are determined using one of the following approaches: (i) a formula based on final average compensation, age, and years of service; (ii) a cash balance plan design; or (iii) a combination of both. The Company sponsors several defined contribution benefit plans for eligible employees. Total costs associated with the Companys defined contribution benefit plans in fiscal 2025, 2024, and 2023 were $42.7 million, $42.5 million, and $41.0 million, respectively. Certain groups of employees are eligible for postretirement 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 Company's Retiree Health Care Payment Program and may change each year as the cost to provide coverage is determined. Net periodic cost of defined benefit plans included the following for fiscal years ending: Pension Benefits Postretirement Benefits In thousands October 26, 2025 October 27, 2024 October 29, 2023 October 26, 2025 October 27, 2024 October 29, 2023 Service Cost $ 43,214 $ 36,11 …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring The Company is undertaking a corporate restructuring plan designed to reduce administrative expenses, improve efficiencies, and align its workforce to the Companys future needs, while enabling continued investment in the Companys growth. The restructuring includes a voluntary early retirement program for certain groups of employees, the closing of certain open roles, involuntary role reductions, and making select changes to benefit programs. The Company expects to incur restructuring charges in the range of $20.0 million to $25.0 million for one-time pension benefits, cash severance payments, other employee benefit costs, and professional fees. The charges are expected to be primarily recognized in the fourth quarter of fiscal 2025 and the first quarter of fiscal 2026. Of the estimated charges, the Company expects that approximately $8.0 million to $10.0 million will be in future cash expenditures during fiscal 2026. The Company recognized $13.3 million of costs associated with restructuring activities during fiscal 2025. All costs in fiscal 2025 are unallocated corporate expenses which are not included in any of the reportable segments' measure of segment profit. A summary of these costs by type is as follows: In thousands Location on Consolidated Statements of Operations Fiscal Year Ended October 26, 2025 Professional Fees Selling, General, and Administrative $ 594 Pension Benefits Other Income (Expense), Net 12,696 Total Restructuring Costs $ 13,290 As of Oct …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Segment Reporting Segment Results: The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following three segments: Retail, Foodservice, and International. The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in retail channels, including grocery stores, mass merchandisers, club stores, natural food chains, drug, dollar and discount chains, and e-commerce providers in the U.S. This segment also includes the results from the Companys MegaMex Foods joint venture. The Foodservice segment consists primarily of the processing, marketing, and sale of food products to distributors and operators across a wide range of providers of food away from home, including restaurants, hospitality, healthcare, K-12, college and universities, and convenience stores in the U.S. The International segment processes, markets, and sells the Company's products through retail and foodservice channels internationally. This segment also includes the results from the Companys international joint ventures, equity method investments, and royalty arrangements, as well as operations in China and Brazil. The results of each segment are regularly provided to the Company's Interim Chief Executive Officer, who is the chief operating decision maker (CODM). The CODM primarily uses net sales and segment profit to compare results to the prior year, annual operating plan, a …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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. Financial information from certain foreign subsidiaries is reported on a one-month lag. 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 consolidated 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 Companys fiscal year ends on the last Sunday in October. Fiscal 2025, 2024, and 2023 consisted of 52 weeks. Fiscal 2026 will consist of 52 weeks. Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation. Consolidated Statements of Operations: Interest and Investment Income has been separated into Interest Income and Other Income (Expense), Net. Consolidated Statements of Financial Position: The major classes of Property, Plant, and Equipment are now disclosed in Note F - Property, Plant, and Equipment. Consolidated Statements of Cash Flows: The …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE K - COMMITMENTS AND CONTINGENCIES During the quarter ended January 25, 2026, there were no material changes outside the ordinary course of business to the purchase commitments and other commitments and guarantees last disclosed in the Companys Annual Report on Form 10-K for the fiscal year ended October 26, 2025. 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, regulators, 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 Companys financial condition, results of operations, or liquidity. Pork Antitrust Litigation Beginning in June 2018, a series of 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 …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE J - FAIR VALUE MEASUREMENTS Accounting guidance establishes a fair value hierarchy which requires assets and liabilities measured at fair value to be categorized into one of three levels based on the inputs used in the valuation. 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 entitys 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. The Companys financial assets and liabilities carried at fair value on a recurring basis and their level within the fair value hierarchy are presented in the tables below. Fair Value Measurements at January 25, 2026 In thousands Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets at Fair Value Short-term Marketable Securities $ 33,302 $ 7,229 $ 26,073 $ Other Trading Securities 222,364 222,364 Commodity Derivatives 19,483 18,528 955 Total Assets at Fair Value $ 275,149 $ 25,757 $ 249,392 $ Liabilities at Fair Value Deferred Compensation $ 63,036 $ …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE C - GOODWILL AND INTANGIBLE ASSETS Goodwill: The change in the carrying amount of goodwill for the quarter ended January 25, 2026, is: In thousands Retail Foodservice International Total Balance at October 26, 2025 $ 2,916,796 $ 1,748,355 $ 258,936 $ 4,924,087 Goodwill Sold (1) (33,570) (1,330) (34,900) Foreign Currency Translation (655) (655) Balance at January 25, 2026 $ 2,883,226 $ 1,747,025 $ 258,281 $ 4,888,532 (1) Goodwill sold during fiscal 2026 was due to the sale of the Company's controlling equity interest in Justin's, LLC. See Note B - Acquisitions and Divestitures for additional information. Intangible Assets: The Company's intangible assets by type are: January 25, 2026 October 26, 2025 In thousands Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived Intangible Assets Customer Relationships $ 107,648 $ (57,026) $ 50,622 $ 134,328 $ (78,565) $ 55,763 Other Definite-lived Intangibles 59,095 (25,330) 33,764 59,445 (24,620) 34,824 Trade Names/Trademarks 6,210 (6,210) Foreign Currency Translation (2,885) (2,885) (4,476) (4,476) Total Definite-lived Intangible Assets $ 166,742 $ (85,241) $ 81,501 $ 199,982 $ (113,872) $ 86,111 Indefinite-lived Intangible Assets Brands/Trade Names/Trademarks (1) $ 1,513,306 $ 1,567,623 Foreign Currency Translation (6,703) (6,437) Total Indefinite-lived Intangible Assets 1,506,603 1,561,186 Total Intangible Assets $ 1,588,104 $ 1,647,297 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE M - INCOME TAXES The Companys tax provision is determined using an estimated annual effective tax rate and adjusted for discrete taxable events that may occur during the quarter. The effects of tax legislation are recognized in the period in which the law is enacted. The deferred tax assets and liabilities are remeasured using enacted tax rates expected to apply to taxable income in the years the related temporary differences are anticipated to reverse. The Companys effective tax rate was 22.4% and 21.8% for the quarters ended January 25, 2026, and January 26, 2025, respectively. The change was primarily due to increased stock option expirations in the quarter ended January 25, 2026. Unrecognized tax benefits, if recognized as of January 25, 2026, would impact the Companys effective tax rate by $16.8 million compared to $16.7 million as of January 26, 2025. The Company includes accrued interest and penalties related to uncertain tax positions in Provision for Income Taxes, with immaterial expenses included during the quarters ended January 25, 2026, and January 26, 2025. The amount of accrued interest and penalties associated with unrecognized tax benefits was $2.9 million at January 25, 2026, and $2.6 million at January 26, 2025. Tax Examinations: The Company is regularly audited by federal, state, and foreign taxing authorities. The Company has elected to participate in the IRS Compliance Assurance Process (CAP) through fiscal 2027. The objective of CAP is to contempor …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE L - LONG-TERM DEBT AND OTHER BORROWING ARRANGEMENTS Long-term Debt consists of: In thousands January 25, 2026 October 26, 2025 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 4.800% Interest Due Semi-annually through March 2027 Maturity Date 500,000 500,000 Unamortized Discount on Senior Notes (5,638) (5,848) Unamortized Debt Issuance Costs (12,062) (12,775) Finance Lease Liabilities 22,378 23,122 Other Financing Arrangements 2,814 2,924 Total Debt 2,857,492 2,857,424 Less: Current Maturities of Long-term Debt 6,485 6,646 Long-term Debt Less Current Maturities $ 2,851,007 $ 2,850,778 Senior Unsecured Notes: On March 8, 2024, the Company issued senior notes in an aggregate principal amount of $500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800% per annum. Interest accrues on the notes from March 8, 2024, and is payable semi-annually in arrears on March 30 and September 30 of each year, commencing September 30, 2024. The notes may be redeemed in whole or in part at any time at the applicable redemption prices. If a change of control triggering event occurs, the Company must offer to pur …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Accounting Changes and Recent Accounting Pronouncements: New Accounting Pronouncements Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update is intended to enhance transparency and decision usefulness of annual income tax disclosures. The ASU updates income tax disclosure requirements by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The ASU is effective for the Company's fiscal year ending October 25, 2026. The Company is currently assessing the impact of adopting the updated provisions. In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. Subsequently, in January 2025, the FASB issued ASU 2025-01 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Dat e. The new guidance is intended to provide investors more detailed disclosures around specific types of expenses. The new disclosures require certain details for expenses presented on the face of the Consolidated Statements of Operations as well as selling expenses to be presented in the notes to the financial statements. As clarified by ASU 2025-01, the guidan …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE H - PENSION AND OTHER POSTRETIREMENT BENEFITS Net periodic cost of defined benefit plans consists of: Pension Benefits Quarter Ended In thousands January 25, 2026 January 26, 2025 Service Cost $ 10,034 $ 11,973 Interest Cost 18,066 17,646 Expected Return on Plan Assets (22,351) (21,737) Amortization of Prior Service Cost (Credit) 128 319 Recognized Actuarial Loss (Gain) 2,190 3,014 Net Periodic Cost $ 8,067 $ 11,215 Postretirement Benefits Quarter Ended In thousands January 25, 2026 January 26, 2025 Service Cost $ 35 $ 42 Interest Cost 2,202 2,480 Amortization of Prior Service Cost (Credit) (7) 2 Recognized Actuarial Loss (Gain) (307) (40) Net Periodic Cost $ 1,922 $ 2,484

PensionAndOtherPostretirementBenefitsDisclosureTextBlock

NOTE P - RESTRUCTURING The Company is undertaking a corporate restructuring plan designed to reduce administrative expenses, improve efficiencies, and align its workforce to the Companys future needs, while enabling continued investment in the Companys growth. The restructuring includes a voluntary early retirement program for certain groups of employees, the closing of certain open roles, involuntary role reductions, and making select changes to benefit programs. The Company expects to incur restructuring charges of approximately $22.0 million for one-time pension benefits, cash severance payments, other employee benefit costs, and professional fees. The charges were primarily recognized in the fourth quarter of fiscal 2025 and the first quarter of fiscal 2026. Of the estimated charges, the Company expects that approximately $9.0 million will be cash expenditures during fiscal 2026. The Company recognized $8.5 million of costs associated with restructuring activities during the first quarter of fiscal 2026. There were no restructuring costs recognized during the first quarter of fiscal 2025. All costs are unallocated corporate expenses which are not included in any of the reportable segments' measure of segment profit. A summary of these costs by type is as follows: In thousands Location on Consolidated Statements of Operations Quarter Ended January 25, 2026 Total Plan Costs Cash Severance Selling, General, and Administrative $ 6,721 $ 6,721 Employee Benefits Selling, Genera …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE O - SEGMENT REPORTING Segment Results: The Company develops, processes, and distributes a wide array of food products in a variety of markets. The Company reports its results in the following three segments: Retail, Foodservice, and International. The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in retail channels, including grocery stores, mass merchandisers, club stores, natural food chains, drug, dollar and discount chains, and e-commerce providers in the U.S. This segment also includes the results from the Companys MegaMex Foods joint venture. The Foodservice segment consists primarily of the processing, marketing, and sale of food products to distributors and operators across a wide range of providers of food away from home, including restaurants, hospitality, healthcare, K-12, college and universities, and convenience stores in the U.S. The International segment processes, markets, and sells the Company's products through retail and foodservice channels internationally. This segment also includes the results from the Companys international joint ventures, equity method investments, and royalty arrangements, as well as operations in China and Brazil. The results of each segment are regularly provided to the Company's Interim Chief Executive Officer, who is the chief operating decision maker (CODM). The CODM primarily uses net sales and segment profit to compare results to the prior year, annual operatin …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing