Condensed Consolidating Financial Statements | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS TFM Parent, our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. Additionally, TFM Parent has fully and unconditionally guaranteed the 2022 Notes until such date TFM Parent has been released of its guarantee of both (i) Tyson's $1.25 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2019, 2022, 2024, 2034 and 2044 Notes is permanently released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc. (TFI Parent); TFM Parent; the Non-Guarantor Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor. Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended June 27, 2015 in millions TFI TFM Non- Eliminations Total Sales $ 196 $ 5,417 $ 4,884 $ (426 ) $ 10,071 Cost of Sales 7 5,318 4,186 (426 ) 9,085 Gross Profit 189 99 698 — 986 Selling, General and Administrative 31 62 330 — 423 Operating Income 158 37 368 — 563 Other (Income) Expense: Interest expense, net 65 — 5 — 70 Other, net (22 ) — (3 ) — (25 ) Equity in net earnings of subsidiaries (260 ) (52 ) — 312 — Total Other (Income) Expense (217 ) (52 ) 2 312 45 Income (Loss) before Income Taxes 375 89 366 (312 ) 518 Income Tax (Benefit) Expense 32 13 129 — 174 Net Income 343 76 237 (312 ) 344 Less: Net Income (Loss) Attributable to Noncontrolling Interest — — 1 — 1 Net Income Attributable to Tyson $ 343 $ 76 $ 236 $ (312 ) $ 343 Comprehensive Income (Loss) 335 81 239 (320 ) 335 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest — — 1 — 1 Comprehensive Income (Loss) Attributable to Tyson $ 335 $ 81 $ 238 $ (320 ) $ 334 Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended June 28, 2014 in millions TFI TFM Non- Eliminations Total Sales $ 114 $ 5,807 $ 4,234 $ (473 ) $ 9,682 Cost of Sales 14 5,559 3,945 (473 ) 9,045 Gross Profit 100 248 289 — 637 Selling, General and Administrative 16 55 215 — 286 Operating Income 84 193 74 — 351 Other (Income) Expense: Interest expense, net 23 — 1 — 24 Other, net 22 1 (6 ) — 17 Equity in net earnings of subsidiaries (229 ) (18 ) — 247 — Total Other (Income) Expense (184 ) (17 ) (5 ) 247 41 Income (Loss) before Income Taxes 268 210 79 (247 ) 310 Income Tax (Benefit) Expense 8 62 (18 ) — 52 Net Income 260 148 97 (247 ) 258 Less: Net Income (Loss) Attributable to Noncontrolling Interest — — (2 ) — (2 ) Net Income Attributable to Tyson $ 260 $ 148 $ 99 $ (247 ) $ 260 Comprehensive Income (Loss) 265 156 106 (262 ) 265 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest — — (2 ) — (2 ) Comprehensive Income (Loss) Attributable to Tyson $ 265 $ 156 $ 108 $ (262 ) $ 267 Condensed Consolidating Statement of Income and Comprehensive Income for the nine months ended June 27, 2015 in millions TFI TFM Non- Eliminations Total Sales $ 645 $ 16,478 $ 15,186 $ (1,442 ) $ 30,867 Cost of Sales 43 16,102 13,229 (1,438 ) 27,936 Gross Profit 602 376 1,957 (4 ) 2,931 Selling, General and Administrative 97 182 1,037 (4 ) 1,312 Operating Income 505 194 920 — 1,619 Other (Income) Expense: Interest expense, net 198 1 16 — 215 Other, net (24 ) (2 ) (6 ) — (32 ) Equity in net earnings of subsidiaries (744 ) (140 ) — 884 — Total Other (Income) Expense (570 ) (141 ) 10 884 183 Income (Loss) before Income Taxes 1,075 335 910 (884 ) 1,436 Income Tax (Benefit) Expense 113 67 291 — 471 Net Income 962 268 619 (884 ) 965 Less: Net Income (Loss) Attributable to Noncontrolling Interest — — 3 — 3 Net Income Attributable to Tyson $ 962 $ 268 $ 616 $ (884 ) $ 962 Comprehensive Income (Loss) 955 257 601 (858 ) 955 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest — — 3 — 3 Comprehensive Income (Loss) Attributable to Tyson $ 955 $ 257 $ 598 $ (858 ) $ 952 Condensed Consolidating Statement of Income and Comprehensive Income for the nine months ended June 28, 2014 in millions TFI TFM Non- Eliminations Total Sales $ 429 $ 16,023 $ 12,380 $ (1,357 ) $ 27,475 Cost of Sales 35 15,338 11,486 (1,357 ) 25,502 Gross Profit 394 685 894 — 1,973 Selling, General and Administrative 67 167 615 — 849 Operating Income 327 518 279 — 1,124 Other (Income) Expense: Interest expense, net 13 49 10 — 72 Other, net 29 — (11 ) — 18 Equity in net earnings of subsidiaries (532 ) (30 ) — 562 — Total Other (Income) Expense (490 ) 19 (1 ) 562 90 Income (Loss) before Income Taxes 817 499 280 (562 ) 1,034 Income Tax (Benefit) Expense 90 158 66 — 314 Net Income 727 341 214 (562 ) 720 Less: Net Income (Loss) Attributable to Noncontrolling Interest — — (7 ) — (7 ) Net Income Attributable to Tyson $ 727 $ 341 $ 221 $ (562 ) $ 727 Comprehensive Income (Loss) 732 348 220 (568 ) 732 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest — — (7 ) — (7 ) Comprehensive Income (Loss) Attributable to Tyson $ 732 $ 348 $ 227 $ (568 ) $ 739 Condensed Consolidating Balance Sheet as of June 27, 2015 in millions TFI TFM Non- Eliminations Total Assets Current Assets: Cash and cash equivalents $ — $ 13 $ 458 $ — $ 471 Accounts receivable, net 4 612 1,017 — 1,633 Inventories — 1,260 1,822 — 3,082 Other current assets 13 48 165 (12 ) 214 Assets held for sale 3 — 186 — 189 Total Current Assets 20 1,933 3,648 (12 ) 5,589 Net Property, Plant and Equipment 27 979 4,306 — 5,312 Goodwill — 881 5,809 — 6,690 Intangible Assets, net — 12 5,190 — 5,202 Other Assets 139 154 357 — 650 Investment in Subsidiaries 21,626 2,169 — (23,795 ) — Total Assets $ 21,812 $ 6,128 $ 19,310 $ (23,807 ) $ 23,443 Liabilities and Shareholders’ Equity Current Liabilities: Current debt $ 799 $ 1 $ 405 $ — $ 1,205 Accounts payable 25 716 880 — 1,621 Other current liabilities 5,620 159 857 (5,486 ) 1,150 Liabilities held for sale — — 52 — 52 Total Current Liabilities 6,444 876 2,194 (5,486 ) 4,028 Long-Term Debt 5,518 1 510 — 6,029 Deferred Income Taxes 3 98 2,346 — 2,447 Other Liabilities 180 123 953 — 1,256 Total Tyson Shareholders’ Equity 9,667 5,030 13,291 (18,321 ) 9,667 Noncontrolling Interest — — 16 — 16 Total Shareholders’ Equity 9,667 5,030 13,307 (18,321 ) 9,683 Total Liabilities and Shareholders’ Equity $ 21,812 $ 6,128 $ 19,310 $ (23,807 ) $ 23,443 Condensed Consolidating Balance Sheet as of September 27, 2014 in millions TFI TFM Non- Eliminations Total Assets Current Assets: Cash and cash equivalents $ — $ 41 $ 397 $ — $ 438 Accounts receivable, net 3 665 1,016 — 1,684 Inventories — 1,272 2,002 — 3,274 Other current assets 42 78 379 (120 ) 379 Assets held for sale 3 — 443 — 446 Total Current Assets 48 2,056 4,237 (120 ) 6,221 Net Property, Plant and Equipment 30 932 4,168 — 5,130 Goodwill — 881 5,825 — 6,706 Intangible Assets, net — 15 5,261 — 5,276 Other Assets 204 148 326 (55 ) 623 Investment in Subsidiaries 20,845 2,049 — (22,894 ) — Total Assets $ 21,127 $ 6,081 $ 19,817 $ (23,069 ) $ 23,956 Liabilities and Shareholders’ Equity Current Liabilities: Current debt $ 240 $ — $ 403 $ — $ 643 Accounts payable 35 755 1,016 — 1,806 Other current liabilities 4,718 235 921 (4,667 ) 1,207 Liabilities held for sale — — 141 — 141 Total Current Liabilities 4,993 990 2,481 (4,667 ) 3,797 Long-Term Debt 7,056 2 532 (55 ) 7,535 Deferred Income Taxes 21 96 2,333 — 2,450 Other Liabilities 167 125 978 — 1,270 Total Tyson Shareholders’ Equity 8,890 4,868 13,479 (18,347 ) 8,890 Noncontrolling Interest — — 14 — 14 Total Shareholders’ Equity 8,890 4,868 13,493 (18,347 ) 8,904 Total Liabilities and Shareholders’ Equity $ 21,127 $ 6,081 $ 19,817 $ (23,069 ) $ 23,956 Condensed Consolidating Statement of Cash Flows for the nine months ended June 27, 2015 in millions TFI TFM Non- Eliminations Total Cash Provided by (Used for) Operating Activities $ 213 $ 190 $ 1,290 $ (21 ) $ 1,672 Cash Flows from Investing Activities: Additions to property, plant and equipment — (127 ) (509 ) — (636 ) (Purchases of)/Proceeds from marketable securities, net 21 — (2 ) — 19 Proceeds from sale of businesses — — 165 — 165 Other, net 26 1 (1 ) — 26 Cash Provided by (Used for) Investing Activities 47 (126 ) (347 ) — (426 ) Cash Flows from Financing Activities: Net change in debt (982 ) — (2 ) — (984 ) Purchases of Tyson Class A common stock (197 ) — — — (197 ) Dividends (110 ) — (21 ) 21 (110 ) Stock options exercised 71 — — — 71 Other, net 17 — — — 17 Net change in intercompany balances 941 (92 ) (849 ) — — Cash Provided by (Used for) Financing Activities (260 ) (92 ) (872 ) 21 (1,203 ) Effect of Exchange Rate Change on Cash — — (10 ) — (10 ) Increase (Decrease) in Cash and Cash Equivalents — (28 ) 61 — 33 Cash and Cash Equivalents at Beginning of Year — 41 397 — 438 Cash and Cash Equivalents at End of Period $ — $ 13 $ 458 $ — $ 471 Condensed Consolidating Statement of Cash Flows for the nine months ended June 28, 2014 in millions TFI TFM Non- Eliminations Total Cash Provided by (Used for) Operating Activities $ 12 $ 264 $ 312 $ (45 ) $ 543 Cash Flows from Investing Activities: Additions to property, plant and equipment (1 ) (109 ) (327 ) — (437 ) (Purchases of)/Proceeds from marketable securities, net — — (1 ) — (1 ) Acquisitions, net of cash acquired — — (56 ) — (56 ) Other, net 30 1 13 — 44 Cash Provided by (Used for) Investing Activities 29 (108 ) (371 ) — (450 ) Cash Flows from Financing Activities: Net change in debt (370 ) — (9 ) — (379 ) Purchases of Tyson Class A common stock (286 ) — — — (286 ) Dividends (76 ) — (45 ) 45 (76 ) Stock options exercised 61 — — — 61 Other, net 26 — — — 26 Net change in intercompany balances 604 (162 ) (442 ) — — Cash Provided by (Used for) Financing Activities (41 ) (162 ) (496 ) 45 (654 ) Effect of Exchange Rate Change on Cash — — 3 — 3 Increase (Decrease) in Cash and Cash Equivalents — (6 ) (552 ) — (558 ) Cash and Cash Equivalents at Beginning of Year — 21 1,124 — 1,145 Cash and Cash Equivalents at End of Period $ — $ 15 $ 572 $ — $ 587 |