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for as fair value hedges, and the Company measures the effectiveness of the hedges at least quarterly. Changes in the fair value of the futures contracts, along with the gain or loss on the hedged purchase commitment, are marked-to-market through earnings and are recorded on the Consolidated Statement of Financial Position as a current asset and liabil- ity, respectively. Effective gains or losses related to these fair value hedges are recognized through cost of products sold in the period or periods in which the hedged transactions affect earnings. Any gains or losses related to hedge ineffectiveness are recognized in the current period cost of products sold. As of October 26, 2014, and October 27, 2013, the Company had the following outstanding commodity futures contracts desig- nated as fair value hedges: 

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Other Derivatives: During fiscal years 2014 and 2013, the Company held certain futures and options contract positions as part of a merchandising program and to manage the Company’s exposure to fluctuations in commodity markets and foreign currencies. The Company did not apply hedge accounting to these positions. All foreign exchange contracts were closed as of the end of fiscal year 2013. 

During fiscal year 2013, the Company dedesignated its corn futures contracts held for its hog operations that were pre- viously designated as cash flow hedges, as these contracts were no longer highly effective. Hedge accounting is no longer being applied to these contracts, and gains or losses occur- ring after the date of dedesignation have been recognized in earnings as incurred. 

As of October 26, 2014, and October 27, 2013, the Company had the following outstanding futures and options contracts related to these programs: 

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Fair Values: The fair values of the Company’s derivative instruments as of October 26, 2014, and October 27, 2013, were as follows: 

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(1)  Amounts represent the gross fair value of derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its hedging programs, including cash collateral, when a master netting arrangement exists between the Company and the counterparty to the deriv- ative contract. The amount or timing of cash collateral balances may impact the classification of the derivative in the Consolidated Statement of Financial Position. See Note N for a discussion of these net amounts as reported in the Consolidated Statements of Financial Position. 

