Document and Entity Information
Document and Entity Information - Jun. 27, 2015 - shares | Total |
Entity Registrant Name | TYSON FOODS INC |
Entity Central Index Key | 100,493 |
Current Fiscal Year End Date | --10-03 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 27, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Class A [Member] | |
Entity Common Stock, Shares Outstanding | 304,359,140 |
Class B [Member] | |
Entity Common Stock, Shares Outstanding | 70,010,805 |
Consolidated Condensed Statemen
Consolidated Condensed Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |||||
Sales | $ 10,071 | $ 9,682 | $ 30,867 | $ 27,475 | ||||
Cost of Sales | 9,085 | 9,045 | 27,936 | 25,502 | ||||
Gross Profit | 986 | 637 | 2,931 | 1,973 | ||||
Operating Expenses: | ||||||||
Selling, General and Administrative | 423 | 286 | 1,312 | 849 | ||||
Operating Income | 563 | 351 | 1,619 | 1,124 | ||||
Other (Income) Expense: | ||||||||
Interest income | (3) | (1) | (6) | (6) | ||||
Interest expense | 73 | 25 | 221 | 78 | ||||
Other, net | (25) | 17 | (32) | 18 | ||||
Total Other (Income) Expense | 45 | [1] | 41 | [2] | 183 | [1] | 90 | [2] |
Income before Income Taxes | 518 | 310 | 1,436 | 1,034 | ||||
Income Tax Expense | 174 | 52 | 471 | 314 | ||||
Net Income | 344 | 258 | 965 | 720 | ||||
Less: Net income (loss) attributable to noncontrolling interest | 1 | (2) | 3 | (7) | ||||
Net Income Attributable to Tyson | $ 343 | $ 260 | $ 962 | $ 727 | ||||
Weighted Average Shares Outstanding: | ||||||||
Diluted, Shares | 414 | 356 | 414 | 355 | ||||
Net Income Per Share Attributable to Tyson: | ||||||||
Diluted (USD per share) | $ 0.83 | $ 0.73 | $ 2.32 | $ 2.05 | ||||
Class A [Member] | ||||||||
Weighted Average Shares Outstanding: | ||||||||
Basic, Shares | 335 | 280 | 335 | 275 | ||||
Net Income Per Share Attributable to Tyson: | ||||||||
Basic (USD per share) | $ 0.86 | $ 0.75 | $ 2.41 | $ 2.15 | ||||
Dividends Declared Per Share: | ||||||||
Dividends Declared (USD per share) | $ 0.100 | $ 0.075 | $ 0.325 | $ 0.250 | ||||
Class B [Member] | ||||||||
Weighted Average Shares Outstanding: | ||||||||
Basic, Shares | 70 | 70 | 70 | 70 | ||||
Net Income Per Share Attributable to Tyson: | ||||||||
Basic (USD per share) | $ 0.78 | $ 0.68 | $ 2.20 | $ 1.94 | ||||
Dividends Declared Per Share: | ||||||||
Dividends Declared (USD per share) | $ 0.090 | $ 0.068 | $ 0.293 | $ 0.226 | ||||
[1] | Operating income in Other includes merger and integration costs of $15 million and $39 million for the three and nine months ended June 27, 2015, respectively, and Other (Income) Expense includes a $21 million gain on the sale of equity securities. | |||||||
[2] | Operating income in Other includes $7 million related to merger and integration costs and Other (Income) Expense includes $22 million related to costs associated with bridge financing facilities, both incurred as part of the Hillshire Brands acquisition. |
Consolidated Condensed Stateme3
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 344 | $ 258 | $ 965 | $ 720 |
Other Comprehensive Income (Loss), Net of Taxes: | ||||
Derivatives accounted for as cash flow hedges | 1 | (5) | 1 | 0 |
Investments | (12) | 0 | (1) | 3 |
Currency translation | 2 | 12 | (17) | 7 |
Postretirement benefits | 0 | 0 | 7 | 2 |
Total Other Comprehensive Income (Loss), Net of Taxes | (9) | 7 | (10) | 12 |
Comprehensive Income | 335 | 265 | 955 | 732 |
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 1 | (2) | 3 | (7) |
Comprehensive Income Attributable to Tyson | $ 334 | $ 267 | $ 952 | $ 739 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Assets | ||
Cash and cash equivalents | $ 471 | $ 438 |
Accounts receivable, net | 1,633 | 1,684 |
Inventories | 3,082 | 3,274 |
Other current assets | 214 | 379 |
Assets held for sale | 189 | 446 |
Total Current Assets | 5,589 | 6,221 |
Net Property, Plant and Equipment | 5,312 | 5,130 |
Goodwill | 6,690 | 6,706 |
Intangible Assets, net | 5,202 | 5,276 |
Other Assets | 650 | 623 |
Total Assets | 23,443 | 23,956 |
Liabilities and Shareholders' Equity | ||
Current debt | 1,205 | 643 |
Accounts payable | 1,621 | 1,806 |
Other current liabilities | 1,150 | 1,207 |
Liabilities held for sale | 52 | 141 |
Total Current Liabilities | 4,028 | 3,797 |
Long-Term Debt | 6,029 | 7,535 |
Deferred Income Taxes | 2,447 | 2,450 |
Other Liabilities | $ 1,256 | $ 1,270 |
Commitments and Contingencies (Note 16) | ||
Shareholders' Equity: | ||
Capital in excess of par value | $ 4,303 | $ 4,257 |
Retained earnings | 6,591 | 5,748 |
Accumulated other comprehensive loss | (157) | (147) |
Treasury stock, at cost - 41 million shares at June 27, 2015 and 40 million shares at September 27, 2014 | (1,112) | (1,010) |
Total Tyson Shareholders' Equity | 9,667 | 8,890 |
Noncontrolling Interest | 16 | 14 |
Total Shareholders' Equity | 9,683 | 8,904 |
Total Liabilities and Shareholders' Equity | 23,443 | 23,956 |
Class A [Member] | ||
Shareholders' Equity: | ||
Common stock | 35 | 35 |
Convertible Class B [Member] | ||
Shareholders' Equity: | ||
Common stock | $ 7 | $ 7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Treasury Stock, shares | 41 | 40 |
Class A [Member] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 900 | 900 |
Common stock, shares issued | 346 | 346 |
Convertible Class B [Member] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 900 | 900 |
Common stock, shares issued | 70 | 70 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 965 | $ 720 |
Depreciation and amortization | 524 | 382 |
Deferred income taxes | 16 | (64) |
Convertible debt discount | 0 | (92) |
Other, net | 57 | 76 |
Net changes in operating assets and liabilities | 110 | (479) |
Cash Provided by Operating Activities | 1,672 | 543 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (636) | (437) |
Purchases of marketable securities | (24) | (25) |
Proceeds from sale of marketable securities | 43 | 24 |
Acquisitions, net of cash acquired | 0 | (56) |
Proceeds from sale of businesses | 165 | 0 |
Other, net | 26 | 44 |
Cash Provided by (Used for) Investing Activities | (426) | (450) |
Cash Flows From Financing Activities: | ||
Payments on debt | (1,485) | (407) |
Proceeds from issuance of long-term debt | 501 | 28 |
Borrowings on revolving credit facility | 1,345 | 0 |
Payments on revolving credit facility | (1,345) | 0 |
Purchases of Tyson Class A common stock | (197) | (286) |
Dividends | (110) | (76) |
Stock options exercised | 71 | 61 |
Other, net | 17 | 26 |
Cash Provided by (Used for) Financing Activities | (1,203) | (654) |
Effect of Exchange Rate Changes on Cash | (10) | 3 |
Increase (Decrease) in Cash and Cash Equivalents | 33 | (558) |
Cash and Cash Equivalents at Beginning of Year | 438 | 1,145 |
Cash and Cash Equivalents at End of Period | $ 471 | $ 587 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Jun. 27, 2015 | |
Policy Text Block [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Basis of Presentation The consolidated condensed financial statements are unaudited and have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations of the United States Securities and Exchange Commission. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended September 27, 2014 . Preparation of consolidated condensed financial statements requires us to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of June 27, 2015 , and the results of operations for the three and nine months ended June 27, 2015 , and June 28, 2014 . Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year. Consolidation The consolidated condensed financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance changing the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. In February 2015, the FASB issued guidance changing the analysis procedures that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods, beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. In April 2015, the FASB issued guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. This new guidance is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued guidance on the recognition of fees paid by a customer for cloud computing arrangements. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the software license consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Jun. 27, 2015 | |
Business Combinations [Abstract] | |
Business Combinations and Disposal Group Operation | ACQUISITIONS AND DISPOSITIONS Acquisitions On August 28, 2014, we acquired all of the outstanding stock of The Hillshire Brands Company ("Hillshire Brands") as part of our strategic expansion initiative. The purchase price was equal to $63.00 per share for Hillshire Brands' outstanding common stock, or $8,081 million . In addition, we paid $163 million in cash for breakage costs incurred by Hillshire Brands related to a previously announced acquisition. We funded the acquisition with existing cash on hand, net proceeds from the issuance of new senior notes, Class A common stock (Class A stock), and tangible equity units as well as borrowings under a new term loan facility (refer to Note 6: Debt and Note 7: Equity). Hillshire Brands' results from operations subsequent to the acquisition closing are included in the Prepared Foods segment. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. Certain estimated values for the acquisition, including goodwill, intangible assets, property, plant and equipment, and deferred taxes, are not yet finalized and the preliminary purchase price allocations are subject to change as we complete our analysis of the fair value at the date of acquisition. The purchase price was allocated based on information available at the acquisition date. During the first nine months of fiscal 2015, we recorded measurement period adjustments, which reduced goodwill by $14 million , after obtaining additional information regarding, among other things, asset valuations and liabilities assumed. The amount was not considered material and therefore prior periods have not been revised. in millions Cash and cash equivalents $ 72 Accounts receivable 236 Inventories 414 Other current assets 343 Property, Plant and Equipment 1,301 Goodwill 4,790 Intangible Assets 5,141 Other Assets 64 Accounts payable (347 ) Other current liabilities (327 ) Long-Term Debt (869 ) Deferred Income Taxes (2,074 ) Other Liabilities (500 ) Net assets acquired $ 8,244 The fair value of identifiable intangible assets is as follows (in millions): Intangible Asset Category Type Life in Years Fair Value Brands & trademarks Non-amortizable Indefinite $ 4,062 Brands & trademarks Amortizable 20 years 532 Customer relationships Amortizable Weighted average life of 16 years 541 Non-compete agreements Amortizable One year 6 Total identifiable intangible assets $ 5,141 As a result of the acquisition, we recognized a total of $4,790 million of goodwill. The purchase price was assigned to assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition, and any excess was allocated to goodwill, as shown in the table above. Goodwill represents the value we expect to achieve through the implementation of operational synergies and growth opportunities primarily in our Prepared Foods segment. The allocation of goodwill to our reporting units is pending finalization of the expected synergies and the impact of the synergies to our reporting units. The fair value of this goodwill is not deductible for U.S. income tax purposes. We used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow analysis, relief-from-royalty and excess earnings valuation approaches, each of which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, we are required to make estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. The acquisition of Hillshire Brands was accounted for using the acquisition method of accounting, and consequently, the results of operations for Hillshire Brands are reported in our consolidated condensed financial statements from the date of acquisition. The following pro forma information presents the combined results of operations as if the acquisition of Hillshire Brands had occurred at the beginning of fiscal 2013. Hillshire Brands' pre-acquisition results have been added to our historical results. The pro forma results contained in the following table include adjustments for amortization of acquired intangibles, depreciation expense, interest expense related to the financing and related income taxes. Any potential cost savings or other operational efficiencies that could result from the acquisition are not included in these pro forma results. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisition occurred on the assumed date, nor is it necessarily an indication of future operating results. The pro forma results for the nine months ended June 28, 2014, include a nonrecurring tax benefit of $46 million recognized by Hillshire Brands primarily related to the release of valuation allowances on state deferred tax assets. in millions Three Months Ended Nine Months Ended June 28, 2014 June 28, 2014 Pro forma sales $ 10,722 $ 30,509 Pro forma net income from continuing operations attributable to Tyson $ 258 $ 819 Pro forma net income per diluted share from continuing operations attributable to Tyson $ 0.61 $ 1.95 Additionally, during the second quarter of fiscal 2014, we acquired a value-added food business as part of our strategic expansion initiative, which is also included in our Prepared Foods segment. The aggregate purchase price of the acquisition was $56 million , which included $12 million for Property, Plant and Equipment, $27 million allocated to Intangible Assets and $18 million allocated to Goodwill. Dispositions In fiscal 2014, we announced our plan to sell the Brazil and Mexico operations, which are included in our International segment, to JBS SA ("JBS") for a combined $575 million in cash, subject to certain adjustments. As a result, we conducted an impairment test and recorded a $39 million impairment charge in the fourth quarter of fiscal 2014 related to the Brazil operation. We completed the sale of the Brazil operation in the first quarter of fiscal 2015 and received net proceeds of $153 million including working capital and net debt adjustments. The sale did not result in a significant gain or loss as the carrying value of the Brazil operation approximated the sales proceeds at the time of sale. The assets and liabilities associated with the Brazil operation were classified as held for sale on the balance sheet at September 27, 2014. The sale of the Mexico operation closed on June 29, 2015, which is in our fiscal fourth quarter, and consequently, the sale is not recorded in the results for the periods ended June 27, 2015. We received proceeds of $400 million , subject to potential working capital and net debt adjustments. As a result of the sale in the fourth quarter of fiscal 2015, we anticipate we will record a gain, net of accumulated foreign currency translation losses and income tax impacts, of approximately $80 million , subject to final adjustments. We utilized the net proceeds to retire the 2.75% senior notes due September 2015. The assets and liabilities related to the Mexico operation are classified as held for sale on the balance sheet at June 27, 2015, and September 27, 2014. The following table summarizes the net assets and liabilities held for sale (in millions): June 27, 2015 September 27, 2014 Assets held for sale: Accounts receivable, net $ 15 $ 74 Inventories 68 141 Other current assets 11 72 Net property, plant and equipment 74 132 Goodwill 14 16 Other assets 7 11 Total assets held for sale $ 189 $ 446 Liabilities held for sale: Current debt $ — $ 32 Accounts payable 23 61 Other current liabilities 18 27 Long-term debt — 9 Deferred income taxes 11 12 Total liabilities held for sale $ 52 $ 141 In fiscal 2014, we sold our 50 percent ownership interest of Dynamic Fuels LLC (Dynamic Fuels) for $30 million cash consideration at closing and up to $35 million in future cash payments contingent on Dynamic Fuels' production volumes over a period of up to 11.5 years. Additionally as part of the terms of the sale, we were released from our guarantee of the $100 million Gulf Opportunity Zone tax-exempt bonds, which were issued in October 2008 to fund a portion of the plant construction costs. Dynamic Fuels previously qualified as a variable interest entity which we consolidated, as we were the primary beneficiary. As a result of the sale, we deconsolidated Dynamic Fuels and recorded a gain of approximately $3 million in the third quarter of fiscal 2014. We will recognize the future contingent payments in income as the required volumes are produced. In the second quarter of fiscal 2015, as part of our ongoing efforts to increase efficiencies in our Chicken business, we announced the planned closure of our Buena Vista, Georgia plant. The plant closed in May 2015 and the closure costs did not have a significant impact on the Company's operating results. In fiscal 2014, we recorded impairment charges of $52 million related to the planned closure of three Prepared Foods plants. The Company’s Cherokee, Iowa plant closed in September 2014 and the Buffalo, New York and Santa Teresa, New Mexico plants each closed in January 2015. Additionally, in April 2014, Hillshire Brands announced that it would discontinue all production at its Florence, Alabama plant. The plant closed in December 2014 and the closure costs did not have a significant impact on the Company's financial results. |
Inventories
Inventories | 9 Months Ended |
Jun. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories. At June 27, 2015 , and September 27, 2014, 66% of the cost of inventories was determined by the first-in, first-out ("FIFO") method. The remaining cost of inventories for both years is determined by the weighted-average method. The following table reflects the major components of inventory (in millions): June 27, 2015 September 27, 2014 Processed products $ 1,686 $ 1,794 Livestock 979 1,066 Supplies and other 417 414 Total inventory $ 3,082 $ 3,274 |
Property, Plant And Equipment
Property, Plant And Equipment | 9 Months Ended |
Jun. 27, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant And Equipment | PROPERTY, PLANT AND EQUIPMENT The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): June 27, 2015 September 27, 2014 Land $ 126 $ 126 Buildings and leasehold improvements 3,623 3,501 Machinery and equipment 6,387 6,144 Land improvements and other 284 276 Buildings and equipment under construction 451 334 10,871 10,381 Less accumulated depreciation 5,559 5,251 Net property, plant and equipment $ 5,312 $ 5,130 |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Jun. 27, 2015 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | OTHER CURRENT LIABILITIES Other current liabilities are as follows (in millions): June 27, 2015 September 27, 2014 Accrued salaries, wages and benefits $ 461 $ 490 Other 689 717 Total other current liabilities $ 1,150 $ 1,207 |
Debt
Debt | 9 Months Ended |
Jun. 27, 2015 | |
Debt Instruments [Abstract] | |
Debt | DEBT The major components of debt are as follows (in millions): June 27, 2015 September 27, 2014 Revolving credit facility $ — $ — Senior notes: 2.75% Senior notes due September 2015 (2015 Notes) 401 407 6.60% Senior notes due April 2016 (2016 Notes) 638 638 7.00% Notes due May 2018 120 120 2.65% Notes due August 2019 (2019 Notes) 1,000 1,000 4.10% Notes due September 2020 (2020 Notes) 286 287 4.50% Senior notes due June 2022 (2022 Notes) 1,000 1,000 3.95% Notes due August 2024 (2024 Notes) 1,250 1,250 7.00% Notes due January 2028 18 18 6.13% Notes due November 2032 (2032 Notes) 164 164 4.88% Notes due August 2034 (2034 Notes) 500 500 5.15% Notes due August 2044 (2044 Notes) 500 500 Discount on senior notes (10 ) (12 ) Term loans: 3-year tranche A (1.56% at 06/27/2015) 92 1,172 3-year tranche B (1.31% at 06/27/2015) 500 — 5-year tranche A — 353 5-year tranche B (1.69% at 06/27/2015) 552 552 Amortizing Notes - Tangible Equity Units (see Note 7: Equity) 157 205 Other 66 24 Total debt 7,234 8,178 Less current debt 1,205 643 Total long-term debt $ 6,029 $ 7,535 Revolving Credit Facility We have a $1.25 billion revolving credit facility that supports short-term funding needs and letters of credit. The facility will mature and the commitments thereunder will terminate in September 2019. After reducing for the amount borrowed and outstanding letters of credit issued under this facility, the amount available for borrowing at June 27, 2015 , was $1,244 million . At June 27, 2015 , we had outstanding letters of credit issued under this facility totaling $6 million , none of which were drawn upon. We had an additional $95 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of workers’ compensation insurance programs and derivative activities. The revolving credit facility is unsecured and is fully guaranteed by Tyson Fresh Meats, Inc. (TFM Parent), our wholly owned subsidiary, until such date TFM Parent is released from all of its guarantees of other material indebtedness. If in the future any of our other subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall also be required to guarantee the indebtedness, obligations and liabilities under this facility. 2019 / 2024 / 2034 / 2044 Notes In August 2014, we issued senior unsecured notes with an aggregate principal amount of $3,250 million , consisting of $1,000 million due August 2019, $1,250 million due August 2024, $500 million due August 2034, and $500 million due August 2044. The 2019 Notes, 2024 Notes, 2034 Notes, and 2044 Notes carry interest rates of 2.65% , 3.95% , 4.88% and 5.15% , respectively, with interest payments due semi-annually on August 15 and February 15. After the original issue discounts of $7 million , we received net proceeds of $3,243 million . In addition, we incurred offering expenses of $27 million . Term Loans In August 2014, we borrowed under an unsecured term loan facility, which provided for total term loans in an aggregate principal amount of $2,300 million , consisting of a $1,202 million 3 -year tranche A facility, a $546 million 5 -year tranche A facility, and a $552 million 5 -year tranche B facility. The principal of the 3 -year tranche A facility amortizes at 2.5% per quarter. Interest is reset based on the selected LIBOR interest period plus 1.375% for the 3 -year tranche A facility and 1.50% for the 5 -year tranche B facility. In addition, we incurred term loan issuance costs of approximately $11 million . In April 2015, we entered into a term loan agreement, which provided total borrowings in an aggregate principal amount of $500 million , the full balance of which was used to prepay outstanding borrowings under the existing 3 -year tranche A term loan facility. The $500 million 3-year tranche B term loan facility is due April 7, 2018. Interest is reset based on the selected LIBOR interest period plus 1.125% . 2015 / 2020 / 2032 Notes In August 2014, in connection with our acquisition of Hillshire Brands, we assumed $840 million of Hillshire Brands' debt, which had an estimated fair value of approximately $868 million as of the acquisition date. We recorded the assumed debt at fair value. The fair value adjustment is being amortized and recorded as a reduction of interest expense. The debt assumed is mainly comprised of senior unsecured notes which consist of $400 million due September 2015, $278 million due September 2020, and $152 million due November 2032. The 2015 Notes, 2020 Notes, and the 2032 Notes carry interest rates of 2.75% , 4.10% , and 6.13% , respectively. In July 2015, we exercised an early redemption option to retire the outstanding $401 million balance of the 2015 Notes using cash proceeds from the sale of the Mexico operation as further described in Note 2: Acquisitions and Dispositions. Debt Covenants Our revolving credit and term loan facilities contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; make acquisitions and investments; dispose of or transfer assets; change the nature of our business; engage in certain transactions with affiliates; and enter into hedging transactions, in each case, subject to certain qualifications and exceptions. In addition, we are required to maintain minimum interest expense coverage and maximum debt-to-capitalization ratios. Our senior notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens; engage in certain sale/leaseback transactions; and engage in certain consolidations, mergers and sales of assets. We were in compliance with all debt covenants at June 27, 2015 . |
Equity (Notes)
Equity (Notes) | 9 Months Ended |
Jun. 27, 2015 | |
Equity [Abstract] | |
Equity | EQUITY Share Repurchases In fiscal 2014, our Board of Directors approved an increase of 25 million shares authorized for repurchase under our share repurchase program. As of June 27, 2015 , 27.9 million shares remained available for repurchases under this program. The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, our working capital needs, markets, industry conditions, liquidity targets, limitations under our debt obligations and regulatory requirements. In addition to the share repurchase program, we purchase shares on the open market to fund certain obligations under our equity compensation plans. A summary of cumulative share repurchases of our Class A stock is as follows (in millions): Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Shares Dollars Shares Dollars Shares Dollars Shares Dollars Shares repurchased: Under share repurchase program 0.9 $ 37 — $ — 4.2 $ 168 7.1 $ 250 To fund certain obligations under equity compensation plans 0.2 10 0.3 11 0.6 29 1.0 36 Total share repurchases 1.1 $ 47 0.3 $ 11 4.8 $ 197 8.1 $ 286 Share Issuance In fiscal 2014, we issued 23.8 million shares of our Class A stock to provide funding for the Hillshire Brands acquisition. Total proceeds, net of underwriting discounts and other offering related fees and expenses were $873 million . Tangible Equity Units In fiscal 2014, we completed the public issuance of 30 million 4.75% tangible equity units (TEUs). Total proceeds, net of underwriting discounts and other expenses, were $1,454 million . Each TEU, which has a stated amount of $50 , is comprised of a prepaid stock purchase contract and a senior amortizing note due July 15, 2017. We allocated the proceeds from the issuance of the TEUs to equity and debt based on the relative fair values of the respective components of each TEU. The fair value of the prepaid stock purchase contracts, which was $1,295 million , is recorded in Capital in Excess of Par Value, net of issuance costs. The fair value of the senior amortizing notes, which was $205 million , was recorded in debt, of which $65 million was current. Issuance costs associated with the TEU debt were recorded as deferred financing costs in the Consolidated Condensed Balance Sheets in Other Assets and are amortized over the term of the instrument to July 15, 2017. The aggregate values assigned upon issuance of each component of the TEUs, based on the relative fair value of the respective components of each TEU, were as follows (in millions, except price per TEU): Equity Component Debt Component Total Price per TEU $ 43.17 $ 6.83 $ 50.00 Gross Proceeds 1,295 205 1,500 Issuance cost (40 ) (6 ) (46 ) Net proceeds $ 1,255 $ 199 $ 1,454 Each senior amortizing note has an initial principal amount of $6.83 and bears interest at 1.5% per annum. On each January 15, April 15, July 15 and October 15, we will pay equal quarterly cash installments of $0.59 per amortizing note, which cash payment in the aggregate (principal and interest) is equivalent to 4.75% per year with respect to the $50 stated amount per TEU. Each installment constitutes a payment of interest and partial repayment of principal. Unless settled earlier at the holder's or the Company's option, each purchase contract will automatically settle on July 15, 2017, subject to postponement in certain limited circumstances. We will deliver between a minimum of 31.8 million shares and a maximum of 39.8 million shares of our Class A stock, subject to adjustment, based upon the Applicable Market Value (as defined below) of our Class A stock as described below: • If the Applicable Market Value is equal to or greater than the conversion price of $47.17 per share, we will deliver 1.0600 shares of Class A stock per purchase contract, or a minimum of 31.8 million Class A shares. • If the Applicable Market Value is greater than the reference price of $37.74 but less than the conversion price of $47.17 per share, we will deliver a number of shares per purchase contract equal to $50 , divided by the Applicable Market Value. • If the Applicable Market Value is less than or equal to the reference price of $37.74 per share, we will deliver 1.3252 shares of Class A stock per purchase contract, or a maximum of 39.8 million Class A shares. The "Applicable Market Value" means the average of the closing prices of our Class A stock on each of the 20 consecutive trading days beginning on, and including, the 23rd scheduled trading day immediately preceding July 15, 2017. On June 15, 2015, we paid our quarterly dividend to shareholders of record at June 1, 2015, equal to $0.10 per share on our Class A stock. The amount of the distribution exceeded the $0.075 per share dividend threshold amount. Consequently, the settlement rates, reference price and conversion price were adjusted and are reflected above. The TEUs have a dilutive effect on our earnings per share. The 31.8 million minimum shares to be issued are included in the calculation of Class A Basic weighted average shares. The 8 million share difference between the minimum shares and the 39.8 million maximum shares are potentially dilutive securities, and accordingly, are included in our diluted earnings per share on a pro rata basis to the extent the Applicable Market Value is higher than the reference price but is less than the conversion price at period end. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 27, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The effective tax rate was 33.6% and 16.8% for the third quarter of fiscal 2015 and 2014 , respectively, and 32.8% and 30.4% for the first nine months of fiscal 2015 and 2014, respectively. The effective tax rates for the third quarter and first nine months of fiscal 2015 and fiscal 2014 were impacted by such items as the domestic production deduction, state income taxes and losses in foreign jurisdictions for which no benefit is recognized. In addition, changes in tax reserves resulting from the expiration of statutes of limitations reduced the effective tax rate for the first nine months of fiscal 2015 by 2.3% and reduced the effective tax rate for the third quarter and nine months of fiscal 2014 by 12.8% and 3.8% , respectively. Unrecognized tax benefits were $227 million and $272 million at June 27, 2015 , and September 27, 2014 , respectively. The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $198 million and $241 million at June 27, 2015 , and September 27, 2014 , respectively. We classify interest and penalties on unrecognized tax benefits as income tax expense. At June 27, 2015 , and September 27, 2014 , before tax benefits, we had $51 million and $54 million , respectively, of accrued interest and penalties on unrecognized tax benefits. We are subject to income tax assessments for U.S. federal income taxes for fiscal years 2011 through 2014. We are also subject to income tax assessments by major state and foreign jurisdictions for fiscal years 2005 through 2014 and 2002 through 2014, respectively. We estimate that during the next twelve months it is reasonably possible that unrecognized tax benefits could decrease up to $22 million primarily due to the expiration of statutes of limitations in various jurisdictions. |
Other Income And Charges
Other Income And Charges | 9 Months Ended |
Jun. 27, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income And Charges | OTHER INCOME AND CHARGES During the first nine months of fiscal 2015, we recorded $7 million of equity earnings in joint ventures, $1 million in net foreign currency exchange gains and $21 million of gains on the sale of equity securities, which were recorded in the Consolidated Condensed Statements of Income in Other, net. During the first nine months of fiscal 2014, we recorded $7 million of equity earnings in joint ventures, $4 million in net foreign currency exchange gains, $6 million of other than temporary impairment related to an available-for-sale security and $22 million of costs associated with bridge financing facilities for the Hillshire Brands acquisition, which were recorded in the Consolidated Condensed Statements of Income in Other, net. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 27, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Numerator: Net Income $ 344 $ 258 $ 965 $ 720 Less: Net income (loss) attributable to noncontrolling interests 1 (2 ) 3 (7 ) Net income attributable to Tyson 343 260 962 727 Less dividends declared: Class A 30 21 99 69 Class B 6 5 20 16 Undistributed earnings $ 307 $ 234 $ 843 $ 642 Class A undistributed earnings $ 258 $ 190 $ 709 $ 522 Class B undistributed earnings 49 44 134 120 Total undistributed earnings $ 307 $ 234 $ 843 $ 642 Denominator: Denominator for basic earnings per share: Class A weighted average shares 335 280 335 275 Class B weighted average shares, and shares under the if-converted method for diluted earnings per share 70 70 70 70 Effect of dilutive securities: Stock options and restricted stock 5 6 5 5 Tangible Equity Units 4 — 4 — Warrants — — — 5 Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions 414 356 414 355 Net Income Per Share Attributable to Tyson: Class A Basic $ 0.86 $ 0.75 $ 2.41 $ 2.15 Class B Basic $ 0.78 $ 0.68 $ 2.20 $ 1.94 Diluted $ 0.83 $ 0.73 $ 2.32 $ 2.05 Approximately 5 million of our stock-based compensation shares were antidilutive for the three and nine months ended June 27, 2015 . We had no stock-based compensation shares that were anti-dilutive for the three months ended June 28, 2014 . Approximately 4 million of our stock-based compensation shares were antidilutive for the nine months ended June 28, 2014 . These shares were not included in the diluted earnings per share calculation. We have two classes of capital stock, Class A stock and Class B stock. Cash dividends cannot be paid to holders of Class B stock unless they are simultaneously paid to holders of Class A stock. The per share amount of cash dividends paid to holders of Class B stock cannot exceed 90% of the cash dividends paid to holders of Class A stock. We allocate undistributed earnings based upon a 1 to 0.9 ratio per share to Class A stock and Class B stock, respectively. We allocate undistributed earnings based on this ratio due to historical dividend patterns, voting control of Class B shareholders and contractual limitations of dividends to Class B stock. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 27, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Our business operations give rise to certain market risk exposures mostly due to changes in commodity prices, foreign currency exchange rates and interest rates. We manage a portion of these risks through the use of derivative financial instruments, primarily futures and options, to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Forward contracts on various commodities, including grains, livestock and energy, are primarily entered into to manage the price risk associated with forecasted purchases of these inputs used in our production processes. Foreign exchange forward contracts are entered into to manage the fluctuations in foreign currency exchange rates, primarily as a result of certain receivable and payable balances. We also periodically utilize interest rate swaps to manage interest rate risk associated with our variable-rate borrowings. Our risk management programs are periodically reviewed by our Board of Directors’ Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using Value-at-Risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit-worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at June 27, 2015 . We recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated Condensed Balance Sheets, with the exception of normal purchases and normal sales expected to result in physical delivery. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged (i.e., cash flow hedge or fair value hedge). We qualify, or designate, a derivative financial instrument as a hedge when contract terms closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. If a derivative instrument is accounted for as a hedge, depending on the nature of the hedge, changes in the fair value of the instrument either will be offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings, or be recognized in other comprehensive income (loss) (OCI) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is recognized in earnings immediately. We designate certain forward contracts as follows: • Cash Flow Hedges - include certain commodity forward and option contracts of forecasted purchases (i.e., grains) and certain foreign exchange forward contracts. • Fair Value Hedges - include certain commodity forward contracts of firm commitments (i.e., livestock). Cash Flow Hedges Derivative instruments, such as futures and options, are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes. We do not purchase forward and option commodity contracts in excess of our physical consumption requirements and generally do not hedge forecasted transactions beyond 18 months . The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchase of those commodities. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant for the three and nine months ended June 27, 2015 , and June 28, 2014 . We had the following aggregated notional values of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons): Metric June 27, 2015 September 27, 2014 Commodity: Corn Bushels 1 — Soy meal Tons 11,600 2,300 Foreign Currency United States dollar $ — $ 1 As of June 27, 2015 , the net amounts expected to be reclassified into earnings within the next 12 months are pretax losses of $2 million related to grains. During the three and nine months ended June 27, 2015 , and June 28, 2014 , we did not reclassify significant pretax gains/losses into earnings as a result of the discontinuance of cash flow hedges due to the probability the original forecasted transaction would not occur by the end of the originally specified time period or within the additional period of time allowed by generally accepted accounting principles. The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions): Gain (Loss) Recognized in OCI On Derivatives Consolidated Condensed Statements of Income Classification Gain (Loss) Reclassified from OCI to Earnings Three Months Ended Three Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Cash Flow Hedge – Derivatives designated as hedging instruments: Commodity contracts $ (1 ) $ (7 ) Cost of Sales $ (1 ) $ 1 Foreign exchange contracts — — Other Income/Expense — — Total $ (1 ) $ (7 ) $ (1 ) $ 1 Gain (Loss) Consolidated Condensed Statements of Income Classification Gain (Loss) Nine Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Cash Flow Hedge – Derivatives designated as hedging instruments: Commodity contracts $ (3 ) $ (1 ) Cost of Sales $ (5 ) $ (2 ) Foreign exchange contracts — (1 ) Other Income/Expense — — Total $ (3 ) $ (2 ) $ (5 ) $ (2 ) Fair Value Hedges We designate certain futures contracts as fair value hedges of firm commitments to purchase livestock for slaughter. Our objective of these hedges is to minimize the risk of changes in fair value created by fluctuations in commodity prices associated with fixed price livestock firm commitments. We had the following aggregated notional values of outstanding forward contracts entered into to hedge firm commitments which are accounted for as a fair value hedge (in millions): Metric June 27, 2015 September 27, 2014 Commodity: Live Cattle Pounds 259 427 Lean Hogs Pounds 153 329 For these derivative instruments we designate and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in earnings in the same period. We include the gain or loss on the hedged items (i.e., livestock purchase firm commitments) in the same line item, Cost of Sales, as the offsetting gain or loss on the related livestock forward position. in millions Consolidated Condensed Statements of Income Classification Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Gain (Loss) on forwards Cost of Sales $ 9 $ (56 ) $ 1 $ (96 ) Gain (Loss) on purchase contract Cost of Sales (9 ) 56 (1 ) 96 Ineffectiveness related to our fair value hedges was not significant for the three and nine months ended June 27, 2015 , and June 28, 2014 . Undesignated Positions In addition to our designated positions, we also hold forward and option contracts for which we do not apply hedge accounting. These include certain derivative instruments related to commodities price risk, including grains, livestock, energy and foreign currency risk. We mark these positions to fair value through earnings at each reporting date. We generally do not enter into undesignated positions beyond 18 months . The objective of our undesignated grains, livestock and energy commodity positions is to reduce the variability of cash flows associated with the forecasted purchase of certain grains, energy and livestock inputs to our production processes. We also enter into certain forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs at fixed prices. The fixed price sales contracts lock in the proceeds from a future sale and the fixed cattle and hog purchases lock in the cost. However, the cost of the livestock and the related boxed beef and boxed pork market prices at the time of the sale or purchase could vary from this fixed price. As we enter into fixed forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs, we also enter into the appropriate number of livestock options and futures positions to mitigate a portion of this risk. Changes in market value of the open livestock options and futures positions are marked to market and reported in earnings at each reporting date, even though the economic impact of our fixed prices being above or below the market price is only realized at the time of sale or purchase. These positions generally do not qualify for hedge treatment due to location basis differences between the commodity exchanges and the actual locations when we purchase the commodities. We have a foreign currency cash flow hedging program to hedge portions of forecasted transactions denominated in foreign currencies, primarily with forward and option contracts, to protect against the reduction in value of forecasted foreign currency cash flows. Our undesignated foreign currency positions generally would qualify for cash flow hedge accounting. However, to reduce earnings volatility, we normally will not elect hedge accounting treatment when the position provides an offset to the underlying related transaction that impacts current earnings. We had the following aggregate outstanding notional values related to our undesignated positions (in millions, except soy meal tons): Metric June 27, 2015 September 27, 2014 Commodity: Corn Bushels 44 — Soy Meal Tons 540,100 195,800 Soy Oil Pounds 68 3 Live Cattle Pounds 12 22 Lean Hogs Pounds 12 22 Foreign Currency United States dollars $ 19 $ 108 The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Condensed Statements of Income (in millions): Consolidated Condensed Statements of Income Classification Gain (Loss) Recognized in Earnings Gain (Loss) Recognized in Earnings Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Derivatives not designated as hedging instruments: Commodity contracts Sales $ (2 ) $ 25 $ (10 ) $ 57 Commodity contracts Cost of Sales — (47 ) (34 ) (89 ) Foreign exchange contracts Other Income/Expense 1 3 (3 ) 4 Total $ (1 ) $ (19 ) $ (47 ) $ (28 ) The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions): Fair Value June 27, 2015 September 27, 2014 Derivative Assets: Derivatives designated as hedging instruments: Commodity contracts $ 16 $ 17 Foreign exchange contracts — — Total derivative assets – designated 16 17 Derivatives not designated as hedging instruments: Commodity contracts 27 42 Foreign exchange contracts — — Total derivative assets – not designated 27 42 Total derivative assets $ 43 $ 59 Derivative Liabilities: Derivatives designated as hedging instruments: Commodity contracts $ 4 $ 78 Foreign exchange contracts — — Total derivative liabilities – designated 4 78 Derivatives not designated as hedging instruments: Commodity contracts 15 80 Foreign exchange contracts — 2 Total derivative liabilities – not designated 15 82 Total derivative liabilities $ 19 $ 160 Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. See Note 12: Fair Value Measurements for a reconciliation to amounts reported in the Consolidated Condensed Balance Sheets in Other current assets and Other current liabilities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows: Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date. Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets in non-active markets; • Inputs other than quoted prices that are observable for the asset or liability; and • Inputs derived principally from or corroborated by other observable market data. Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): June 27, 2015 Level 1 Level 2 Level 3 Netting (a) Total Assets: Commodity Derivatives $ — $ 43 $ — $ (3 ) $ 40 Foreign Exchange Forward Contracts — — — — — Available-for-Sale Securities: Current — 2 — — 2 Non-current — 30 61 — 91 Deferred Compensation Assets 9 235 — — 244 Total Assets $ 9 $ 310 $ 61 $ (3 ) $ 377 Liabilities: Commodity Derivatives $ — $ 19 $ — $ (19 ) $ — Foreign Exchange Forward Contracts — — — — — Total Liabilities $ — $ 19 $ — $ (19 ) $ — September 27, 2014 Level 1 Level 2 Level 3 Netting (a) Total Assets: Commodity Derivatives $ — $ 59 $ — $ (50 ) $ 9 Foreign Exchange Forward Contracts — — — — — Available-for-Sale Securities: Current — 1 — — 1 Non-current 1 24 67 — 92 Deferred Compensation Assets 15 218 — — 233 Total Assets $ 16 $ 302 $ 67 $ (50 ) $ 335 Liabilities: Commodity Derivatives $ — $ 158 $ — $ (148 ) $ 10 Foreign Exchange Forward Contracts — 2 — — 2 Total Liabilities $ — $ 160 $ — $ (148 ) $ 12 (a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At June 27, 2015 , and September 27, 2014 , we had posted with various counterparties $16 million and $98 million , respectively, of cash collateral related to our commodity derivatives and held no cash collateral. The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): Nine Months Ended June 27, 2015 June 28, 2014 Balance at beginning of year $ 67 $ 65 Total realized and unrealized gains (losses): Included in earnings — — Included in other comprehensive income (loss) — — Purchases 13 18 Issuances — — Settlements (19 ) (18 ) Balance at end of period $ 61 $ 65 Total gains (losses) for the nine-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period $ — $ — The following methods and assumptions were used to estimate the fair value of each class of financial instrument: Derivative Assets and Liabilities: Our commodities and foreign exchange forward contracts primarily include exchange-traded and over-the-counter contracts which are further described in Note 11: Derivative Financial Instruments. We record our commodity derivatives at fair value using quoted market prices adjusted for credit and non-performance risk and internal models that use as their basis readily observable market inputs including current and forward commodity market prices. Our foreign exchange forward contracts are recorded at fair value based on quoted prices and spot and forward currency prices adjusted for credit and non-performance risk. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges or observable market transactions of spot currency rates and forward currency prices. Available-for-Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. Short-term investments with maturities of less than 12 months are included in Other current assets in the Consolidated Condensed Balance Sheets and primarily include certificates of deposit and commercial paper. All other marketable debt securities are included in Other Assets in the Consolidated Condensed Balance Sheets and have maturities ranging up to 35 years. We classify our investments in U.S. government, U.S. agency, certificates of deposit and commercial paper debt securities as Level 2 as fair value is generally estimated using discounted cash flow models that are primarily industry-standard models that consider various assumptions, including time value and yield curve as well as other readily available relevant economic measures. We classify certain corporate, asset-backed and other debt securities as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated condensed financial statements. The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions): June 27, 2015 September 27, 2014 Amortized Fair Unrealized Amortized Fair Unrealized Available-for-Sale Securities: Debt Securities: U.S. Treasury and Agency $ 32 $ 32 $ — $ 25 $ 25 $ — Corporate and Asset-Backed 60 61 1 65 67 2 Equity Securities: Common Stock (a) — — — 1 1 — (a) At June 27, 2015, and September 27, 2014, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of nil and $2 million , respectively. Unrealized holding gains (losses), net of tax, are excluded from earnings and reported in OCI until the security is settled or sold. On a quarterly basis, we evaluate whether losses related to our available-for-sale securities are temporary in nature. Losses on equity securities are recognized in earnings if the decline in value is judged to be other than temporary. If losses related to our debt securities are determined to be other than temporary, the loss would be recognized in earnings if we intend, or more likely than not will be required, to sell the security prior to recovery. For debt securities in which we have the intent and ability to hold until maturity, losses determined to be other than temporary would remain in OCI, other than expected credit losses which are recognized in earnings. We consider many factors in determining whether a loss is temporary, including the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. We recognized no other than temporary impairment in earnings for the three and nine months ended June 27, 2015, and $6 million for the nine months ended June 28, 2014, which was recorded in the Consolidated Condensed Statements of Income in Other, net. No other than temporary losses were deferred in OCI as of June 27, 2015 , and September 27, 2014 . Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated Condensed Balance Sheets. We classify the investments which have observable market prices in active markets in Level 1 as these are generally publicly-traded mutual funds. The remaining deferred compensation assets are classified in Level 2, as fair value can be corroborated based on observable market data. Realized and unrealized gains (losses) on deferred compensation are included in earnings. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the three and nine months ended June 27, 2015. However, during the third quarter of fiscal 2014, we recorded a $49 million impairment charge related to the closure of three Prepared Foods plants. Our valuation of these assets incorporated unobservable Level 3 inputs. Other Financial Instruments Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions): June 27, 2015 September 27, 2014 Fair Value Carrying Value Fair Value Carrying Value Total Debt $ 7,374 $ 7,234 $ 8,347 $ 8,178 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Jun. 27, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The components of the net periodic cost for the pension and postretirement benefit plans for the three and nine months ended June 27, 2015 , and June 28, 2014 , are as follows (in millions): Pension Plans Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Service cost $ 5 $ 2 $ 13 $ 5 Interest cost 21 2 63 6 Expected return on plan assets (25 ) (1 ) (75 ) (3 ) Amortization of: Net actuarial loss 1 1 4 3 Settlement loss — — 8 — Net periodic cost $ 2 $ 4 $ 13 $ 11 Postretirement Benefit Plans Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Service cost $ 2 $ 1 $ 4 $ 2 Interest cost 2 — 5 2 Amortization of: Net actuarial (gain) loss 6 (6 ) 6 (6 ) Prior service credit — (1 ) — (1 ) Net periodic cost (credit) $ 10 $ (6 ) $ 15 $ (3 ) We contributed $3 million and $12 million to our pension plans for the three and nine months ended June 27, 2015 , respectively. We contributed $2 million and $7 million to our pension plans for the three and nine months ended June 28, 2014 , respectively. We expect to contribute an additional $3 million during the remainder of fiscal 2015. The amount of contributions made to pension plans in any year is dependent upon a number of factors including minimum funding requirements in the jurisdictions in which we operate. As a result, the actual funding in fiscal 2015 may differ from the current estimate. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Jun. 27, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions): Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Derivatives accounted for as cash flow hedges: (Gain) loss reclassified to Cost of Sales $ 1 $ — $ 1 $ (1 ) $ — $ (1 ) $ 5 $ (2 ) $ 3 $ 2 $ (1 ) $ 1 Unrealized gain (loss) (1 ) 1 — (7 ) 3 (4 ) (3 ) 1 (2 ) (2 ) 1 (1 ) Investments: (Gain) loss reclassified to Other Income/Expense (21 ) 8 (13 ) — — — (21 ) 8 (13 ) 6 (2 ) 4 Unrealized gain (loss) 1 — 1 — — — 20 (8 ) 12 (1 ) — (1 ) Currency translation: Translation loss reclassified to Cost of Sales (a) — — — — — — 37 (1 ) 36 — — — Translation adjustment 1 1 2 10 2 12 (63 ) 10 (53 ) 5 2 7 Postretirement benefits — — — 1 (1 ) — 10 (3 ) 7 3 (1 ) 2 Total Other Comprehensive Income (Loss) $ (19 ) $ 10 $ (9 ) $ 3 $ 4 $ 7 $ (15 ) $ 5 $ (10 ) $ 13 $ (1 ) $ 12 (a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 2: Acquisitions and Dispositions. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Jun. 27, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We operate in five segments: Chicken, Beef, Pork, Prepared Foods and International. We measure segment profit as operating income (loss). Chicken: Chicken includes our domestic operations related to raising and processing live chickens into fresh, frozen and value-added chicken products, as well as sales from allied products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes logistics operations to move products through our domestic supply chain and the global operations of our chicken breeding stock subsidiary. Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes sales from allied products such as hides and variety meats, as well as logistics operations to move products through the supply chain. Pork: Pork includes our operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain. Prepared Foods: Prepared Foods includes our operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. Products primarily include pepperoni, bacon, sausage, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. In fiscal 2014, we acquired Hillshire Brands, a manufacturer and marketer of branded, convenient foods which includes brands such as Jimmy Dean®, Ball Park®, Hillshire Farm®, State Fair®, Van's®, Sara Lee® frozen bakery and Chef Pierre® pies as well as artisanal brands Aidells®, Gallo Salame®, and Golden Island® premium jerky. Hillshire Brands' results from operations are included in the Prepared Foods segment. International : International includes our foreign operations primarily related to raising and processing live chickens into fresh, frozen and value-added chicken products in Brazil, China, India and Mexico. Products are marketed in each respective country to food retailers, foodservice distributors, restaurant operators, hotel chains, noncommercial foodservice establishments and live markets, as well as to other international export markets. In fiscal 2014, we announced our plan to sell the Brazil and Mexico operations, part of our International segment, to JBS for $ 575 million in cash, subject to certain adjustments. As further described in Note 2: Acquisitions and Dispositions, we sold the Brazil operation in the first quarter of fiscal 2015. The sale of the Mexico operation closed on June 29, 2015, which is in our fourth quarter of fiscal 2015. The results from Dynamic Fuels are included in Other in fiscal 2014. We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs which are included in Other. Information on segments and a reconciliation to income before income taxes are as follows (in millions): Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Sales: Chicken $ 2,757 $ 2,829 $ 8,366 $ 8,327 Beef 4,305 4,189 12,826 11,748 Pork 1,207 1,766 3,951 4,677 Prepared Foods 1,810 901 5,814 2,669 International 244 365 771 1,020 Other — — — — Intersegment Sales (252 ) (368 ) (861 ) (966 ) Total Sales $ 10,071 $ 9,682 $ 30,867 $ 27,475 Operating Income (Loss): Chicken $ 313 $ 195 $ 996 $ 682 Beef (7 ) 101 (33 ) 194 Pork 64 128 285 356 Prepared Foods 207 (a) (50 ) (c) 438 (a) (13 ) (c) International 1 (15 ) (28 ) (73 ) Other (15 ) (b) (8 ) (d) (39 ) (b) (22 ) (d) Total Operating Income 563 351 1,619 1,124 Total Other (Income) Expense 45 (b) 41 (d) 183 (b) 90 (d) Income before Income Taxes $ 518 $ 310 $ 1,436 $ 1,034 (a) Includes merger and integration costs of $1 million and $10 million for the three and nine months ended June 27, 2015, respectively, and $11 million net proceeds and $17 million net costs related to a legacy Hillshire Brands plant fire for the three and nine months ended June 27, 2015, respectively. (b) Operating income in Other includes merger and integration costs of $15 million and $39 million for the three and nine months ended June 27, 2015, respectively, and Other (Income) Expense includes a $21 million gain on the sale of equity securities. (c) Includes $49 million impairment charge related to the closure of three Prepared Foods plants. (d) Operating income in Other includes $7 million related to merger and integration costs and Other (Income) Expense includes $22 million related to costs associated with bridge financing facilities, both incurred as part of the Hillshire Brands acquisition. The Chicken segment had sales of $6 million and $2 million in the third quarter of fiscal 2015 and 2014 , respectively, and sales of $13 million and $6 million in the first nine months of fiscal 2015 and 2014, respectively, from transactions with other operating segments of the Company. The Beef segment had sales of $93 million and $83 million in the third quarter of fiscal 2015 and 2014 , respectively, and sales of $248 million and $213 million in the first nine months of fiscal 2015 and 2014, respectively, from transactions with other operating segments of the Company. The Pork segment had sales of $153 million and $283 million in the third quarter of fiscal 2015 and 2014 , respectively, and sales of $600 million and $747 million in the first nine months of fiscal 2015 and 2014, respectively, from transactions with other operating segments of the Company. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Jun. 27, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Commitments We guarantee obligations of certain outside third parties, consisting primarily of leases, debt and grower loans, which are substantially collateralized by the underlying assets. Terms of the underlying debt cover periods up to 10 years, and the maximum potential amount of future payments as of June 27, 2015 , was $50 million . We also maintain operating leases for various types of equipment, some of which contain residual value guarantees for the market value of the underlying leased assets at the end of the term of the lease. The remaining terms of the lease maturities cover periods over the next 13 years. The maximum potential amount of the residual value guarantees is $76 million , of which $69 million could be recoverable through various recourse provisions and an additional undeterminable recoverable amount based on the fair value of the underlying leased assets. The likelihood of material payments under these guarantees is not considered probable. At June 27, 2015 , and September 27, 2014 , no material liabilities for guarantees were recorded. We have cash flow assistance programs in which certain livestock suppliers participate. Under these programs, we pay an amount for livestock equivalent to a standard cost to grow such livestock during periods of low market sales prices. The amounts of such payments that are in excess of the market sales price are recorded as receivables and accrue interest. Participating suppliers are obligated to repay these receivables balances when market sales prices exceed this standard cost, or upon termination of the agreement. Our maximum obligation associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets. The potential maximum obligation as of June 27, 2015 , was approximately $320 million . The total receivables under these programs were $1 million and $4 million at June 27, 2015, and September 27, 2014 , respectively. These receivables are included, net of allowance for uncollectible amounts, in Accounts Receivable in our Consolidated Condensed Balance Sheets. Even though these programs are limited to the net tangible assets of the participating livestock suppliers, we also manage a portion of our credit risk associated with these programs by obtaining security interests in livestock suppliers’ assets. After analyzing residual credit risks and general market conditions, we have no allowance for these programs’ estimated uncollectible receivables at June 27, 2015 , and September 27, 2014 . Contingencies We are involved in various claims and legal proceedings. We routinely assess the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. We record accruals for such matters to the extent that we conclude a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Such accruals are reflected in the Company’s consolidated condensed financial statements. In our opinion, we have made appropriate and adequate accruals for these matters and believe the probability of a material loss beyond the amounts accrued to be remote; however, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the consolidated financial condition or results of operations. Listed below are certain claims made against the Company and/or our subsidiaries for which the potential exposure is considered material to the Company’s consolidated condensed financial statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters. There are eight pending lawsuits involving our beef, pork and prepared foods plants, in which certain present and past employees allege that we failed to compensate them for the time it takes to engage in pre- and post-shift activities, such as changing into and out of protective and sanitary clothing and walking to and from the changing area, work areas and break areas in violation of the Fair Labor Standards Act and various state laws. The plaintiffs seek back wages, liquidated damages, pre- and post-judgment interest, attorneys’ fees and costs. Each case is proceeding in its jurisdiction. • Bouaphakeo (f/k/a Sharp), et al. v. Tyson Foods, Inc., N.D. Iowa, February 6, 2007 - A jury trial was held involving our Storm Lake, Iowa pork plant which resulted in a jury verdict in favor of the plaintiffs for violations of federal and state laws for pre- and post-shift work activities. The trial court also awarded the plaintiffs liquidated damages, resulting in total damages awarded in the amount of $5,784,758 . The plaintiffs' counsel has also filed an application for attorneys' fees and expenses in the amount of $2,692,145 . We appealed the jury's verdict and trial court's award to the Eighth Circuit Court of Appeals. The appellate court affirmed the jury verdict and judgment on August 25, 2014, and we filed a petition for rehearing on September 22, 2014, which was denied. We filed a petition for a writ of certiorari with the U.S. Supreme Court, which was granted on June 8, 2015. • Acosta, et al. v Tyson Foods, Inc. dba Tyson Fresh Meats, Inc., D. Nebraska, February 29, 2008 - A bench trial was held involving our Madison, Nebraska pork plant, in January 2013. In May 2013 the trial court awarded the plaintiffs $5,733,943 for unpaid overtime wages. Subsequently, the court ordered the class of plaintiffs expanded, and the plaintiffs submitted an updated calculation of $6,258,330 for unpaid overtime wages as reflected by payroll data through May 2013. On January 30, 2014, the trial court entered judgment in favor of the plaintiffs in the amount of $18,774,989 , which represents a tripling of the plaintiffs’ alleged damages. The court denied our post-trial motions, and we appealed to the Eighth Circuit Court of Appeals. Oral argument was held before the appellate court on January 15, 2015. • Gomez, et al. v. Tyson Foods, Inc., D. Nebraska, January 16, 2008 - A jury trial involving our Dakota City, Nebraska beef plant, was held, and the jury found in favor of the plaintiffs on April 3, 2013. On October 2, 2013, the trial court denied the parties’ post-trial motions and entered judgment awarding unpaid overtime wages, liquidated damages, and penalties totaling $4,960,787 . We appealed the jury’s verdict and trial court’s award to the Eighth Circuit Court of Appeals. Oral argument was held before the appellate court on January 15, 2015. • Edwards, et al. v. Tyson Foods, Inc. dba Tyson Fresh Meats, Inc., S.D. Iowa, March 20, 2008 - The trial court in this case, which involves our Perry and Waterloo, Iowa pork plants, decertified the state law class and granted other pre-trial motions that resulted in judgment in our favor with respect to the plaintiffs’ claims. The plaintiffs have filed a motion to modify this judgment. • Abdiaziz, et al. v. Tyson Foods, Inc., Tyson Fresh Meats, Inc., D. Kansas, September 30, 2011 - This case involves our Emporia, Kansas beef plant. The parties filed a joint motion for approval of a settlement, totaling $730,548 in back pay and attorneys’ fees and costs, which the court preliminarily approved on March 30, 2015. • Murray, et al. v. Tyson Foods, Inc., C.D. Illinois, January 2, 2008 ; and DeVoss v. Tyson Foods, Inc. d.b.a. Tyson Fresh Meats, C.D. Illinois, March 2, 2011 - These cases involve our Joslin, Illinois beef plant and are in their preliminary stages. • Dozier, Southerland, et al. v. Hillshire Brands, Co., Inc. E.D. North Carolina, September 2, 2014 - This case involves our Tarboro, North Carolina prepared foods plant and is in its preliminary stages. • Awad, et al. v. Tyson Foods, Inc. and Tyson Fresh Meats, Inc., M.D. Tennessee, February 12, 2015 - This case involves our Goodlettsville, Tennessee case ready beef plant and is in its preliminary stages. Our subsidiary, The Hillshire Brands Company (formerly named Sara Lee Corporation), is a party to a consolidation of cases filed by individual complainants with the Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission (NLRC) from 1998 through July 1999. The complaint is filed against Aris Philippines, Inc., Sara Lee Corporation, Sara Lee Philippines, Inc., Fashion Accessories Philippines, Inc., and Attorney Cesar C. Cruz (collectively, the “respondents”). The complaint alleges, among other things, that the respondents engaged in unfair labor practices in connection with the termination of manufacturing operations in the Philippines by Aris Philippines, Inc., a former subsidiary of The Hillshire Brands Company. In 2006, an arbitrator ruled against the respondents and awarded the complainants PHP 3,453,664,710 (approximately US $76 million ) in damages and fees. The respondents appealed the arbitrator’s ruling, and it was subsequently set aside by the NLRC in December 2006. Subsequent to the NLRC’s decision, the parties filed numerous appeals, motions for reconsideration and petitions for review, certain of which remained outstanding for several years. While various of those appeals, motions and/or petitions were pending, The Hillshire Brands Company, on June 23, 2014, without admitting liability, filed a settlement motion requesting that the Supreme Court of the Philippines order dismissal with prejudice of all claims against it and its predecessors-in-interest in exchange for payments allocated by the court among the complainants in an amount not to exceed PHP 342,287,800 (approximately US $8 million ). Based in part on its finding that the consideration to be paid to the complainants as part of such settlement was insufficient, the Supreme Court of the Philippines denied the respondents’ motion for reconsideration and the settlement motion. While such settlement motion remained pending, however, the Supreme Court of the Philippines set aside as premature the NLRC’s December 2006 ruling. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 9 Months Ended |
Jun. 27, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
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 |
Accounting Policies (Policy)
Accounting Policies (Policy) | 9 Months Ended |
Jun. 27, 2015 | |
Policy Text Block [Abstract] | |
Basis Of Presentation | Basis of Presentation The consolidated condensed financial statements are unaudited and have been prepared by Tyson Foods, Inc. (“Tyson,” “the Company,” “we,” “us” or “our”). Certain information and accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations of the United States Securities and Exchange Commission. Although we believe the disclosures contained herein are adequate to make the information presented not misleading, these consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the fiscal year ended September 27, 2014 . Preparation of consolidated condensed financial statements requires us to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. We believe the accompanying consolidated condensed financial statements contain all adjustments, which are of a normal recurring nature, necessary to state fairly our financial position as of June 27, 2015 , and the results of operations for the three and nine months ended June 27, 2015 , and June 28, 2014 . Results of operations and cash flows for the periods presented are not necessarily indicative of results to be expected for the full year. |
Consolidation | Consolidation The consolidated condensed financial statements include the accounts of all wholly-owned subsidiaries, as well as majority-owned subsidiaries over which we exercise control and, when applicable, entities for which we have a controlling financial interest or variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued guidance changing the criteria for recognizing revenue. The guidance provides for a single five-step model to be applied to all revenue contracts with customers. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2017, our fiscal 2019. Early adoption is permitted for fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. In February 2015, the FASB issued guidance changing the analysis procedures that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. This guidance is effective for annual reporting periods and interim periods within those annual reporting periods, beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. In April 2015, the FASB issued guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. Early adoption is permitted. This new guidance is not expected to have a material impact on our consolidated financial statements. In April 2015, the FASB issued guidance on the recognition of fees paid by a customer for cloud computing arrangements. The new guidance clarifies that if a cloud computing arrangement includes a software license, the customer should account for the software license consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2015, our fiscal 2017. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. |
Inventories (Policy)
Inventories (Policy) | 9 Months Ended |
Jun. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy [Policy Text Block] | INVENTORIES Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date. Certain estimated values for the acquisition, including goodwill, intangible assets, property, plant and equipment, and deferred taxes, are not yet finalized and the preliminary purchase price allocations are subject to change as we complete our analysis of the fair value at the date of acquisition. The purchase price was allocated based on information available at the acquisition date. During the first nine months of fiscal 2015, we recorded measurement period adjustments, which reduced goodwill by $14 million , after obtaining additional information regarding, among other things, asset valuations and liabilities assumed. The amount was not considered material and therefore prior periods have not been revised. in millions Cash and cash equivalents $ 72 Accounts receivable 236 Inventories 414 Other current assets 343 Property, Plant and Equipment 1,301 Goodwill 4,790 Intangible Assets 5,141 Other Assets 64 Accounts payable (347 ) Other current liabilities (327 ) Long-Term Debt (869 ) Deferred Income Taxes (2,074 ) Other Liabilities (500 ) Net assets acquired $ 8,244 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The fair value of identifiable intangible assets is as follows (in millions): Intangible Asset Category Type Life in Years Fair Value Brands & trademarks Non-amortizable Indefinite $ 4,062 Brands & trademarks Amortizable 20 years 532 Customer relationships Amortizable Weighted average life of 16 years 541 Non-compete agreements Amortizable One year 6 Total identifiable intangible assets $ 5,141 |
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The fair value of identifiable intangible assets is as follows (in millions): Intangible Asset Category Type Life in Years Fair Value Brands & trademarks Non-amortizable Indefinite $ 4,062 Brands & trademarks Amortizable 20 years 532 Customer relationships Amortizable Weighted average life of 16 years 541 Non-compete agreements Amortizable One year 6 Total identifiable intangible assets $ 5,141 |
Business Acquisition, Pro Forma Information [Table Text Block] | The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisition occurred on the assumed date, nor is it necessarily an indication of future operating results. The pro forma results for the nine months ended June 28, 2014, include a nonrecurring tax benefit of $46 million recognized by Hillshire Brands primarily related to the release of valuation allowances on state deferred tax assets. in millions Three Months Ended Nine Months Ended June 28, 2014 June 28, 2014 Pro forma sales $ 10,722 $ 30,509 Pro forma net income from continuing operations attributable to Tyson $ 258 $ 819 Pro forma net income per diluted share from continuing operations attributable to Tyson $ 0.61 $ 1.95 |
Summary of Net Assets and Liabilities Held for Sale | The following table summarizes the net assets and liabilities held for sale (in millions): June 27, 2015 September 27, 2014 Assets held for sale: Accounts receivable, net $ 15 $ 74 Inventories 68 141 Other current assets 11 72 Net property, plant and equipment 74 132 Goodwill 14 16 Other assets 7 11 Total assets held for sale $ 189 $ 446 Liabilities held for sale: Current debt $ — $ 32 Accounts payable 23 61 Other current liabilities 18 27 Long-term debt — 9 Deferred income taxes 11 12 Total liabilities held for sale $ 52 $ 141 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table reflects the major components of inventory (in millions): June 27, 2015 September 27, 2014 Processed products $ 1,686 $ 1,794 Livestock 979 1,066 Supplies and other 417 414 Total inventory $ 3,082 $ 3,274 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant And Equipment And Accumulated Depreciation | The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): June 27, 2015 September 27, 2014 Land $ 126 $ 126 Buildings and leasehold improvements 3,623 3,501 Machinery and equipment 6,387 6,144 Land improvements and other 284 276 Buildings and equipment under construction 451 334 10,871 10,381 Less accumulated depreciation 5,559 5,251 Net property, plant and equipment $ 5,312 $ 5,130 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Other Liabilities, Current [Abstract] | |
Schedule Of Other Current Liabilities | Other current liabilities are as follows (in millions): June 27, 2015 September 27, 2014 Accrued salaries, wages and benefits $ 461 $ 490 Other 689 717 Total other current liabilities $ 1,150 $ 1,207 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Debt Instruments [Abstract] | |
Schedule of Major Components Of Debt | The major components of debt are as follows (in millions): June 27, 2015 September 27, 2014 Revolving credit facility $ — $ — Senior notes: 2.75% Senior notes due September 2015 (2015 Notes) 401 407 6.60% Senior notes due April 2016 (2016 Notes) 638 638 7.00% Notes due May 2018 120 120 2.65% Notes due August 2019 (2019 Notes) 1,000 1,000 4.10% Notes due September 2020 (2020 Notes) 286 287 4.50% Senior notes due June 2022 (2022 Notes) 1,000 1,000 3.95% Notes due August 2024 (2024 Notes) 1,250 1,250 7.00% Notes due January 2028 18 18 6.13% Notes due November 2032 (2032 Notes) 164 164 4.88% Notes due August 2034 (2034 Notes) 500 500 5.15% Notes due August 2044 (2044 Notes) 500 500 Discount on senior notes (10 ) (12 ) Term loans: 3-year tranche A (1.56% at 06/27/2015) 92 1,172 3-year tranche B (1.31% at 06/27/2015) 500 — 5-year tranche A — 353 5-year tranche B (1.69% at 06/27/2015) 552 552 Amortizing Notes - Tangible Equity Units (see Note 7: Equity) 157 205 Other 66 24 Total debt 7,234 8,178 Less current debt 1,205 643 Total long-term debt $ 6,029 $ 7,535 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Equity [Abstract] | |
Schedule of Share Repurchase | A summary of cumulative share repurchases of our Class A stock is as follows (in millions): Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Shares Dollars Shares Dollars Shares Dollars Shares Dollars Shares repurchased: Under share repurchase program 0.9 $ 37 — $ — 4.2 $ 168 7.1 $ 250 To fund certain obligations under equity compensation plans 0.2 10 0.3 11 0.6 29 1.0 36 Total share repurchases 1.1 $ 47 0.3 $ 11 4.8 $ 197 8.1 $ 286 |
Schedule of Tangible Equity Units | The aggregate values assigned upon issuance of each component of the TEUs, based on the relative fair value of the respective components of each TEU, were as follows (in millions, except price per TEU): Equity Component Debt Component Total Price per TEU $ 43.17 $ 6.83 $ 50.00 Gross Proceeds 1,295 205 1,500 Issuance cost (40 ) (6 ) (46 ) Net proceeds $ 1,255 $ 199 $ 1,454 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Numerator: Net Income $ 344 $ 258 $ 965 $ 720 Less: Net income (loss) attributable to noncontrolling interests 1 (2 ) 3 (7 ) Net income attributable to Tyson 343 260 962 727 Less dividends declared: Class A 30 21 99 69 Class B 6 5 20 16 Undistributed earnings $ 307 $ 234 $ 843 $ 642 Class A undistributed earnings $ 258 $ 190 $ 709 $ 522 Class B undistributed earnings 49 44 134 120 Total undistributed earnings $ 307 $ 234 $ 843 $ 642 Denominator: Denominator for basic earnings per share: Class A weighted average shares 335 280 335 275 Class B weighted average shares, and shares under the if-converted method for diluted earnings per share 70 70 70 70 Effect of dilutive securities: Stock options and restricted stock 5 6 5 5 Tangible Equity Units 4 — 4 — Warrants — — — 5 Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions 414 356 414 355 Net Income Per Share Attributable to Tyson: Class A Basic $ 0.86 $ 0.75 $ 2.41 $ 2.15 Class B Basic $ 0.78 $ 0.68 $ 2.20 $ 1.94 Diluted $ 0.83 $ 0.73 $ 2.32 $ 2.05 |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Derivative [Line Items] | |
Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value | The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions): Fair Value June 27, 2015 September 27, 2014 Derivative Assets: Derivatives designated as hedging instruments: Commodity contracts $ 16 $ 17 Foreign exchange contracts — — Total derivative assets – designated 16 17 Derivatives not designated as hedging instruments: Commodity contracts 27 42 Foreign exchange contracts — — Total derivative assets – not designated 27 42 Total derivative assets $ 43 $ 59 Derivative Liabilities: Derivatives designated as hedging instruments: Commodity contracts $ 4 $ 78 Foreign exchange contracts — — Total derivative liabilities – designated 4 78 Derivatives not designated as hedging instruments: Commodity contracts 15 80 Foreign exchange contracts — 2 Total derivative liabilities – not designated 15 82 Total derivative liabilities $ 19 $ 160 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
Schedule Of Notional Amount Of Derivatives | We had the following aggregated notional values of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons): Metric June 27, 2015 September 27, 2014 Commodity: Corn Bushels 1 — Soy meal Tons 11,600 2,300 Foreign Currency United States dollar $ — $ 1 |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions): Gain (Loss) Recognized in OCI On Derivatives Consolidated Condensed Statements of Income Classification Gain (Loss) Reclassified from OCI to Earnings Three Months Ended Three Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Cash Flow Hedge – Derivatives designated as hedging instruments: Commodity contracts $ (1 ) $ (7 ) Cost of Sales $ (1 ) $ 1 Foreign exchange contracts — — Other Income/Expense — — Total $ (1 ) $ (7 ) $ (1 ) $ 1 Gain (Loss) Consolidated Condensed Statements of Income Classification Gain (Loss) Nine Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Cash Flow Hedge – Derivatives designated as hedging instruments: Commodity contracts $ (3 ) $ (1 ) Cost of Sales $ (5 ) $ (2 ) Foreign exchange contracts — (1 ) Other Income/Expense — — Total $ (3 ) $ (2 ) $ (5 ) $ (2 ) |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | |
Derivative [Line Items] | |
Schedule Of Notional Amount Of Derivatives | We had the following aggregated notional values of outstanding forward contracts entered into to hedge firm commitments which are accounted for as a fair value hedge (in millions): Metric June 27, 2015 September 27, 2014 Commodity: Live Cattle Pounds 259 427 Lean Hogs Pounds 153 329 |
Derivative Instruments, Gain (Loss) [Table Text Block] | in millions Consolidated Condensed Statements of Income Classification Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Gain (Loss) on forwards Cost of Sales $ 9 $ (56 ) $ 1 $ (96 ) Gain (Loss) on purchase contract Cost of Sales (9 ) 56 (1 ) 96 |
Not Designated as Hedging Instrument [Member] | |
Derivative [Line Items] | |
Schedule Of Notional Amount Of Derivatives | We had the following aggregate outstanding notional values related to our undesignated positions (in millions, except soy meal tons): Metric June 27, 2015 September 27, 2014 Commodity: Corn Bushels 44 — Soy Meal Tons 540,100 195,800 Soy Oil Pounds 68 3 Live Cattle Pounds 12 22 Lean Hogs Pounds 12 22 Foreign Currency United States dollars $ 19 $ 108 |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Condensed Statements of Income (in millions): Consolidated Condensed Statements of Income Classification Gain (Loss) Recognized in Earnings Gain (Loss) Recognized in Earnings Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Derivatives not designated as hedging instruments: Commodity contracts Sales $ (2 ) $ 25 $ (10 ) $ 57 Commodity contracts Cost of Sales — (47 ) (34 ) (89 ) Foreign exchange contracts Other Income/Expense 1 3 (3 ) 4 Total $ (1 ) $ (19 ) $ (47 ) $ (28 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): June 27, 2015 Level 1 Level 2 Level 3 Netting (a) Total Assets: Commodity Derivatives $ — $ 43 $ — $ (3 ) $ 40 Foreign Exchange Forward Contracts — — — — — Available-for-Sale Securities: Current — 2 — — 2 Non-current — 30 61 — 91 Deferred Compensation Assets 9 235 — — 244 Total Assets $ 9 $ 310 $ 61 $ (3 ) $ 377 Liabilities: Commodity Derivatives $ — $ 19 $ — $ (19 ) $ — Foreign Exchange Forward Contracts — — — — — Total Liabilities $ — $ 19 $ — $ (19 ) $ — September 27, 2014 Level 1 Level 2 Level 3 Netting (a) Total Assets: Commodity Derivatives $ — $ 59 $ — $ (50 ) $ 9 Foreign Exchange Forward Contracts — — — — — Available-for-Sale Securities: Current — 1 — — 1 Non-current 1 24 67 — 92 Deferred Compensation Assets 15 218 — — 233 Total Assets $ 16 $ 302 $ 67 $ (50 ) $ 335 Liabilities: Commodity Derivatives $ — $ 158 $ — $ (148 ) $ 10 Foreign Exchange Forward Contracts — 2 — — 2 Total Liabilities $ — $ 160 $ — $ (148 ) $ 12 (a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At June 27, 2015 , and September 27, 2014 , we had posted with various counterparties $16 million and $98 million , respectively, of cash collateral related to our commodity derivatives and held no cash collateral. |
Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): Nine Months Ended June 27, 2015 June 28, 2014 Balance at beginning of year $ 67 $ 65 Total realized and unrealized gains (losses): Included in earnings — — Included in other comprehensive income (loss) — — Purchases 13 18 Issuances — — Settlements (19 ) (18 ) Balance at end of period $ 61 $ 65 Total gains (losses) for the nine-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period $ — $ — |
Schedule Of Available For Sale Securities | The following table sets forth our available-for-sale securities' amortized cost basis, fair value and unrealized gain (loss) by significant investment category (in millions): June 27, 2015 September 27, 2014 Amortized Fair Unrealized Amortized Fair Unrealized Available-for-Sale Securities: Debt Securities: U.S. Treasury and Agency $ 32 $ 32 $ — $ 25 $ 25 $ — Corporate and Asset-Backed 60 61 1 65 67 2 Equity Securities: Common Stock (a) — — — 1 1 — (a) At June 27, 2015, and September 27, 2014, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of nil and $2 million , respectively. |
Schedule Of Fair Value And Carrying Value Of Debt | Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions): June 27, 2015 September 27, 2014 Fair Value Carrying Value Fair Value Carrying Value Total Debt $ 7,374 $ 7,234 $ 8,347 $ 8,178 |
Pension and Other Postretirem35
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of the net periodic cost for the pension and postretirement benefit plans for the three and nine months ended June 27, 2015 , and June 28, 2014 , are as follows (in millions): Pension Plans Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Service cost $ 5 $ 2 $ 13 $ 5 Interest cost 21 2 63 6 Expected return on plan assets (25 ) (1 ) (75 ) (3 ) Amortization of: Net actuarial loss 1 1 4 3 Settlement loss — — 8 — Net periodic cost $ 2 $ 4 $ 13 $ 11 Postretirement Benefit Plans Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Service cost $ 2 $ 1 $ 4 $ 2 Interest cost 2 — 5 2 Amortization of: Net actuarial (gain) loss 6 (6 ) 6 (6 ) Prior service credit — (1 ) — (1 ) Net periodic cost (credit) $ 10 $ (6 ) $ 15 $ (3 ) |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Components Of Other Comprehensive Income (Loss) | The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions): Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Before Tax Tax After Tax Derivatives accounted for as cash flow hedges: (Gain) loss reclassified to Cost of Sales $ 1 $ — $ 1 $ (1 ) $ — $ (1 ) $ 5 $ (2 ) $ 3 $ 2 $ (1 ) $ 1 Unrealized gain (loss) (1 ) 1 — (7 ) 3 (4 ) (3 ) 1 (2 ) (2 ) 1 (1 ) Investments: (Gain) loss reclassified to Other Income/Expense (21 ) 8 (13 ) — — — (21 ) 8 (13 ) 6 (2 ) 4 Unrealized gain (loss) 1 — 1 — — — 20 (8 ) 12 (1 ) — (1 ) Currency translation: Translation loss reclassified to Cost of Sales (a) — — — — — — 37 (1 ) 36 — — — Translation adjustment 1 1 2 10 2 12 (63 ) 10 (53 ) 5 2 7 Postretirement benefits — — — 1 (1 ) — 10 (3 ) 7 3 (1 ) 2 Total Other Comprehensive Income (Loss) $ (19 ) $ 10 $ (9 ) $ 3 $ 4 $ 7 $ (15 ) $ 5 $ (10 ) $ 13 $ (1 ) $ 12 (a) Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 2: Acquisitions and Dispositions. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, By Segment | Information on segments and a reconciliation to income before income taxes are as follows (in millions): Three Months Ended Nine Months Ended June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Sales: Chicken $ 2,757 $ 2,829 $ 8,366 $ 8,327 Beef 4,305 4,189 12,826 11,748 Pork 1,207 1,766 3,951 4,677 Prepared Foods 1,810 901 5,814 2,669 International 244 365 771 1,020 Other — — — — Intersegment Sales (252 ) (368 ) (861 ) (966 ) Total Sales $ 10,071 $ 9,682 $ 30,867 $ 27,475 Operating Income (Loss): Chicken $ 313 $ 195 $ 996 $ 682 Beef (7 ) 101 (33 ) 194 Pork 64 128 285 356 Prepared Foods 207 (a) (50 ) (c) 438 (a) (13 ) (c) International 1 (15 ) (28 ) (73 ) Other (15 ) (b) (8 ) (d) (39 ) (b) (22 ) (d) Total Operating Income 563 351 1,619 1,124 Total Other (Income) Expense 45 (b) 41 (d) 183 (b) 90 (d) Income before Income Taxes $ 518 $ 310 $ 1,436 $ 1,034 (a) Includes merger and integration costs of $1 million and $10 million for the three and nine months ended June 27, 2015, respectively, and $11 million net proceeds and $17 million net costs related to a legacy Hillshire Brands plant fire for the three and nine months ended June 27, 2015, respectively. (b) Operating income in Other includes merger and integration costs of $15 million and $39 million for the three and nine months ended June 27, 2015, respectively, and Other (Income) Expense includes a $21 million gain on the sale of equity securities. (c) Includes $49 million impairment charge related to the closure of three Prepared Foods plants. (d) Operating income in Other includes $7 million related to merger and integration costs and Other (Income) Expense includes $22 million related to costs associated with bridge financing facilities, both incurred as part of the Hillshire Brands acquisition. |
Condensed Consolidating Finan38
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended |
Jun. 27, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Statement Of Income and Comprehensive Income | 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 | 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 | 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 |
Acquisitions and Dispositions P
Acquisitions and Dispositions Preliminary Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 | Aug. 28, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 6,690 | $ 6,706 | |
Hillshire Brands Company [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 72 | ||
Accounts receivable | 236 | ||
Inventories | 414 | ||
Other current assets | 343 | ||
Property, Plant, and Equipment | 1,301 | ||
Goodwill | 4,790 | ||
Intangible Assets | 5,141 | ||
Other Assets | 64 | ||
Accounts payable | (347) | ||
Other current liabilities | (327) | ||
Long-term Debt | (869) | ||
Deferred Income taxes | (2,074) | ||
Other Liabilities | (500) | ||
Net asset acquired | $ 8,244 |
Acquisitions and Dispositions S
Acquisitions and Dispositions Schedule of Intangible Assets Acquired as Part of Business Combination (Details) - Aug. 28, 2014 - Hillshire Brands Company [Member] - USD ($) $ in Millions | Total |
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Total identifiable intangible assets | $ 5,141 |
Trademarks [Member] | |
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value, Finite-lived Intangible Assets | $ 532 |
Life in Years | 20 years |
Customer Relationships [Member] | |
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value, Finite-lived Intangible Assets | $ 541 |
Life in Years | 16 years |
Noncompete Agreements [Member] | |
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value, Finite-lived Intangible Assets | $ 6 |
Life in Years | 1 year |
Trademarks [Member] | |
Schedule of Intangible Assets Acquired as Part of Business Combination [Line Items] | |
Fair Value, Indefinite-lived Intangible Assets | $ 4,062 |
Acquisitions and Dispositions A
Acquisitions and Dispositions Acquisition Pro Forma information (Details) - Jun. 28, 2014 - Hillshire Brands Company [Member] - USD ($) $ / shares in Units, $ in Millions | Total | Total |
Business Acquisition [Line Items] | ||
Pro forma sales | $ 10,722 | $ 30,509 |
Pro forma net income from continuing operations attributable to Tyson | $ 258 | $ 819 |
Pro Forma net income per diluted share from continuing operations attributable to Tyson | $ 0.61 | $ 1.95 |
Acquisitions and Dispositions42
Acquisitions and Dispositions Summary of Assets Held for Sale (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total assets held for sale | $ 189 | $ 446 |
Liabilities held for sale | 52 | 141 |
International [Member] | Chicken Production Operations in Mexico [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 15 | |
Inventories | 68 | |
Other current assets | 11 | |
Net property, plant and equipment | 74 | |
Goodwill | 14 | |
Other assets | 7 | |
Total assets held for sale | 189 | |
Current debt | 0 | |
Accounts payable | 23 | |
Other current liabilities | 18 | |
Long-term debt | 0 | |
Deferred income taxes | 11 | |
Liabilities held for sale | $ 52 | |
International [Member] | Chicken Production Operations in Brazil and Mexico [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 74 | |
Inventories | 141 | |
Other current assets | 72 | |
Net property, plant and equipment | 132 | |
Goodwill | 16 | |
Other assets | 11 | |
Total assets held for sale | 446 | |
Current debt | 32 | |
Accounts payable | 61 | |
Other current liabilities | 27 | |
Long-term debt | 9 | |
Deferred income taxes | 12 | |
Liabilities held for sale | $ 141 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Millions | Aug. 28, 2014USD ($)$ / shares | Mar. 29, 2014USD ($)business | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Sep. 27, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 6,690 | $ 6,706 | |||
Acquisitions, net of cash acquired | 0 | $ 56 | |||
Hillshire Brands Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price per share of acquired entity's common stock | $ / shares | $ 63 | ||||
Purchase Price | $ 8,081 | ||||
Breakage costs incurred related to previously proposed acquisition | 163 | ||||
Goodwill, Purchase Accounting Adjustments | $ 14 | ||||
Goodwill | 4,790 | ||||
Valuation Allowances and Reserves, Adjustments | $ 46 | ||||
Property, Plant, and Equipment | 1,301 | ||||
Intangible Assets | $ 5,141 | ||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 18 | ||||
Number of Businesses Acquired | business | 1 | ||||
Acquisitions, net of cash acquired | $ 56 | ||||
Property, Plant, and Equipment | 12 | ||||
Intangible Assets | $ 27 |
Dispositions (Details)
Dispositions (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 03, 2015USD ($) | Dec. 27, 2014USD ($) | Sep. 27, 2014USD ($) | Jun. 28, 2014USD ($)Facilities | Jun. 28, 2014USD ($)Facilities | Sep. 27, 2014USD ($)Facilities | Jun. 27, 2015 | |
Prepared Foods [Member] | Facility Closing [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Plants Closed | Facilities | 3 | 3 | 3 | ||||
Prepared Foods [Member] | Operating Segments [Member] | Facility Closing [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Asset Impairment Charges | $ 49 | $ 49 | $ 52 | ||||
Chicken Production Operations in Brazil and Mexico [Member] | International [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Consideration | $ 575 | $ 575 | |||||
Chicken Production Operations in Brazil [Member] | International [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Asset Impairment Charges | $ 39 | ||||||
Proceeds from Divestiture of Businesses | $ 153 | ||||||
Dynamic Fuels Deconsolidation [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal Group, Future Contingent Consideration, Period of production volumes | 11 years 6 months | ||||||
Guarantor Obligations Release of Guarantees | $ 100 | ||||||
Dynamic Fuels Deconsolidation [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 50.00% | ||||||
Proceeds from Divestiture of Businesses | $ 30 | ||||||
Future Contingent Cash Payment | $ 35 | ||||||
Dynamic Fuels Deconsolidation [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Cost of Sales [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain (Loss) on Disposition of Business | $ 3 | ||||||
Subsequent Event [Member] | Chicken Production Operations in Mexico [Member] | International [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Divestiture of Businesses | $ 400 | ||||||
Gain (Loss) on Disposition of Business | $ 80 | ||||||
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Stated interest rate | 2.75% |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventory) (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Inventory Disclosure [Abstract] | ||
Processed products | $ 1,686 | $ 1,794 |
Livestock | 979 | 1,066 |
Supplies and other | 417 | 414 |
Total inventories | $ 3,082 | $ 3,274 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) | Jun. 27, 2015 | Sep. 27, 2014 |
Inventory Disclosure [Abstract] | ||
Percentage of FIFO Inventory | 66.00% | 66.00% |
Property, Plant And Equipment47
Property, Plant And Equipment (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 10,871 | $ 10,381 |
Less accumulated depreciation | 5,559 | 5,251 |
Net property, plant and equipment | 5,312 | 5,130 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 126 | 126 |
Buildings And Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,623 | 3,501 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,387 | 6,144 |
Land Improvements And Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 284 | 276 |
Buildings And Equipment Under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 451 | $ 334 |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Other Liabilities, Current [Abstract] | ||
Accrued salaries, wages and benefits | $ 461 | $ 490 |
Other | 689 | 717 |
Total other current liabilities | $ 1,150 | $ 1,207 |
Debt (Major Components Of Debt)
Debt (Major Components Of Debt) (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Aug. 31, 2014 | Jun. 27, 2015 | Sep. 27, 2014 | |
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 0 | $ 0 | |
Discount on senior notes | (10) | (12) | |
Amortizing Notes- Tangible Equity Units | 157 | 205 | |
Other | 66 | 24 | |
Total debt | 7,234 | 8,178 | |
Less current debt | 1,205 | 643 | |
Total long-term debt | 6,029 | 7,535 | |
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 401 | 407 | |
Stated interest rate | 2.75% | ||
6.60% Senior Notes Due April 2016 (2016 Notes) [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 638 | 638 | |
Stated interest rate | 6.60% | ||
7.00% Notes Due May 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 120 | 120 | |
Stated interest rate | 7.00% | ||
2.65% Senior Unsecured Notes Due August, Two Thousand and Nineteen [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 1,000 | 1,000 | |
Stated interest rate | 2.65% | ||
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 286 | 287 | |
Stated interest rate | 4.10% | ||
4.50% Senior Notes Due June 2022 (2022 Notes) [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 1,000 | 1,000 | |
Stated interest rate | 4.50% | ||
3.95% Senior Unsecured Notes Due August, Two Thousand and Twenty Four [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 1,250 | 1,250 | |
Stated interest rate | 3.95% | ||
7.00% Notes Due January 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 18 | 18 | |
Stated interest rate | 7.00% | ||
6.13% Unsecured Notes Due November Two Thousand And Thirty Two [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 164 | 164 | |
Stated interest rate | 6.13% | ||
4.88% Percentage Senior Unsecured Notes Due August, Two Thousand and Thirty Four [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 500 | 500 | |
Stated interest rate | 4.88% | ||
5.15% Senior Unsecured Notes Due August, Two Thousand and Forty Four [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 500 | 500 | |
Stated interest rate | 5.15% | ||
3-Year Tranche A [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 92 | 1,172 | |
Stated interest rate | 1.56% | ||
Debt Instrument, Term | 3 years | 3 years | |
3-Year Tranche B [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 500 | 0 | |
Stated interest rate | 1.31% | ||
Debt Instrument, Term | 3 years | ||
5-Year Tranche A [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 0 | 353 | |
Debt Instrument, Term | 5 years | ||
5-Year Tranche B [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes/Term Loans | $ 552 | $ 552 | |
Stated interest rate | 1.69% | ||
Debt Instrument, Term | 5 years | 5 years |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Jul. 31, 2015 | Aug. 31, 2014 | Jun. 27, 2015 | Apr. 07, 2015 | Sep. 27, 2014 | |
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,250,000,000 | ||||
Amount available for borrowing under credit facility | 1,244,000,000 | ||||
Debt Instrument, Unamortized Discount | 10,000,000 | $ 12,000,000 | |||
Debt Instrument, Fair Value Disclosure | $ 7,374,000,000 | $ 8,347,000,000 | |||
Hillshire Brands Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 840,000,000 | ||||
Debt Instrument, Fair Value Disclosure | 868,000,000 | ||||
2.65% Senior Unsecured Notes Due August, Two Thousand and Nineteen [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||||
3.95% Senior Unsecured Notes Due August, Two Thousand and Twenty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||||
4.88% Percentage Senior Unsecured Notes Due August, Two Thousand and Thirty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.88% | ||||
5.15% Senior Unsecured Notes Due August, Two Thousand and Forty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | ||||
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | ||||
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member] | Hillshire Brands Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 400,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | ||||
2.75% Senior Unsecured Notes Due September Two Thousand And Fifteen [Member] [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of Debt | $ 401,000,000 | ||||
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | ||||
4.10% Percentage Unsecured Notes Due September Two Thousand And Twenty [Member] | Hillshire Brands Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 278,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | ||||
6.13% Unsecured Notes Due November Two Thousand And Thirty Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | ||||
6.13% Unsecured Notes Due November Two Thousand And Thirty Two [Member] | Hillshire Brands Company [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 152,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | ||||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 3,250,000,000 | ||||
Debt Instrument, Unamortized Discount | 7,000,000 | ||||
Proceeds from Issuance of Unsecured Debt | 3,243,000,000 | ||||
Debt Issuance Cost | 27,000,000 | ||||
Unsecured Debt [Member] | 2.65% Senior Unsecured Notes Due August, Two Thousand and Nineteen [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 1,000,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | ||||
Unsecured Debt [Member] | 3.95% Senior Unsecured Notes Due August, Two Thousand and Twenty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 1,250,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||||
Unsecured Debt [Member] | 4.88% Percentage Senior Unsecured Notes Due August, Two Thousand and Thirty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.88% | ||||
Unsecured Debt [Member] | 5.15% Senior Unsecured Notes Due August, Two Thousand and Forty Four [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | ||||
Standby Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | $ 6,000,000 | ||||
Bilateral Letters Of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Letters of Credit Outstanding, Amount | $ 95,000,000 | ||||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Cost | $ 11,000,000 | ||||
Loans Payable to Bank | 2,300,000,000 | ||||
Term Loan [Member] | 3-Year Tranche A [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.56% | ||||
Loans Payable to Bank | $ 1,202,000,000 | ||||
Debt Instrument, Term | 3 years | 3 years | |||
Required Quarterly Principal Payment as a Percentage of Remaining Balance | 2.50% | ||||
Loans Receivable, Basis Spread on Variable Rate | 1.375% | ||||
Term Loan [Member] | 5-Year Tranche A [Member] | |||||
Debt Instrument [Line Items] | |||||
Loans Payable to Bank | $ 546,000,000 | ||||
Debt Instrument, Term | 5 years | ||||
Term Loan [Member] | 5-Year Tranche B [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.69% | ||||
Loans Payable to Bank | $ 552,000,000 | ||||
Debt Instrument, Term | 5 years | 5 years | |||
Loans Receivable, Basis Spread on Variable Rate | 1.50% | ||||
Term Loan [Member] | 3-Year Tranche B [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.31% | ||||
Loans Payable to Bank | $ 500,000,000 | ||||
Debt Instrument, Term | 3 years | ||||
Loans Receivable, Basis Spread on Variable Rate | 1.125% |
Equity (Schedule of Share Repur
Equity (Schedule of Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Class of Stock [Line Items] | ||||
Payments for Repurchase of Common Stock | $ 197 | $ 286 | ||
Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | 1.1 | 0.3 | 4.8 | 8.1 |
Payments for Repurchase of Common Stock | $ 47 | $ 11 | $ 197 | $ 286 |
Share Repurchase Program [Member] | Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | 0.9 | 0 | 4.2 | 7.1 |
Payments for Repurchase of Common Stock | $ 37 | $ 0 | $ 168 | $ 250 |
Open Market Repurchases [Member] | Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Acquired | 0.2 | 0.3 | 0.6 | 1 |
Payments for Repurchase of Common Stock | $ 10 | $ 11 | $ 29 | $ 36 |
Equity (Schedule of Tangible Eq
Equity (Schedule of Tangible Equity Units) (Details) - 12 months ended Sep. 27, 2014 - USD ($) $ / shares in Units, $ in Millions | Total |
Equity [Abstract] | |
Price per TEU, Equity Component (in dollars per share) | $ 43.17 |
Price per TEU, Debt Component (in dollars per share) | 6.83 |
Price per TEU, Total (in dollars per share) | $ 50 |
Gross Proceeds, Equity Component | $ 1,295 |
Gross Proceeds, Debt Component | 205 |
Gross Proceeds, Total | 1,500 |
Issuance cost, Equity Component | (40) |
Issuance cost, Debt Component | (6) |
Issuance cost, Total | 46 |
Net Proceeds, Equity Component | 1,255 |
Net Proceeds, Debt Component | 199 |
Net proceeds, Total | $ 1,454 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | Jun. 15, 2015$ / shares | Jun. 27, 2015USD ($)shares$ / shares | Sep. 27, 2014USD ($)$ / sharesshares | Aug. 31, 2014USD ($) |
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 27,900,000 | |||
TEU's issued (in units) | 30,000,000 | |||
TEU's Dividend Rate | 4.75% | |||
Proceeds from Issuance of Tangible Equity Units, Net | $ | $ 1,454,000,000 | |||
TEUs, stated amount per unit (in dollars per unit) | $ / shares | $ 50 | |||
TEUs, Equity Component | $ | $ 1,295,000,000 | |||
TEUs, Debt Component | $ | $ 157,000,000 | 205,000,000 | ||
TEUs, Debt Component, Current | $ | 65,000,000 | |||
Convertible Debt [Member] | Tangible Equity Unit, Senior Amortizing Note [Member] | ||||
Class of Stock [Line Items] | ||||
Senior amortizing note, initial principal amount | $ | $ 6.83 | |||
Senior amortizing note, interest rate | 1.50% | |||
Senior amortizing note, quarterly principal and interest payment, first three annual quarters | $ | $ 0.59 | |||
Hillshire Brands Company [Member] | ||||
Class of Stock [Line Items] | ||||
Proceeds from Issuance of Common Stock | $ | $ 873,000,000 | |||
Senior amortizing note, initial principal amount | $ | $ 840,000,000 | |||
Class A [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 0.10 | |||
Class A [Member] | Convertible Debt [Member] | Tangible Equity Unit, Senior Amortizing Note [Member] | ||||
Class of Stock [Line Items] | ||||
Senior amortizing note, conversion price | $ / shares | $ 47.17 | |||
Senior amortizing note, number of shares per contract if applicable market value equal to or greater than conversion price | 1.0600 | |||
Senior amortizing note, reference price | $ / shares | $ 37.74 | |||
Senior amortizing note, if applicable market value greater than reference price, number of shares equal to amount divided by Applicable Market Value | $ / shares | $ 50 | |||
Senior amortizing note, number of shares per contract, if Applicable Market Value is less than or equal to reference price | 1.3252 | |||
Senior amortizing note, consecutive trading days for calculation of applicable market value | 20 days | |||
Debt Instrument, Convertible, Dividend Threshold Amount | $ / shares | $ 0.075 | |||
Senior amortizing note, incremental common shares attributable to dilutive effect of conversion, if applicable market value higher than reference price | 8,000,000 | |||
Class A [Member] | Convertible Debt [Member] | Tangible Equity Unit, Senior Amortizing Note [Member] | Minimum [Member] | ||||
Class of Stock [Line Items] | ||||
Senior amortizing note, number of shares to be issued | 31,800,000 | |||
Class A [Member] | Convertible Debt [Member] | Tangible Equity Unit, Senior Amortizing Note [Member] | Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Senior amortizing note, number of shares to be issued | 39,800,000 | |||
Class A [Member] | Hillshire Brands Company [Member] | ||||
Class of Stock [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 23,800,000 | |||
Class A [Member] | Share Repurchase Program [Member] | ||||
Class of Stock [Line Items] | ||||
Stock Repurchase Program, Increase (Decrease) in Authorized Shares | 25,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Sep. 27, 2014 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate for continuing operations | 33.60% | 16.80% | 32.80% | 30.40% | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 12.80% | 2.30% | 3.80% | ||
Unrecognized tax benefits | $ 227 | $ 227 | $ 272 | ||
Unrecognized tax benefits that would impact effective tax rate | 198 | 198 | 241 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 51 | 51 | $ 54 | ||
Unrecognized tax benefits, reductions that could result from tax audit resolutions | $ 22 | $ 22 |
Other Income And Charges (Detai
Other Income And Charges (Details) - Other Nonoperating Income (Expense) [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 27, 2015 | Jun. 27, 2015 | Jun. 28, 2014 | |
Components of Other Income and Expenses [Line Items] | |||
Equity Earnings in Joint Ventures | $ 7 | $ 7 | |
Foreign Currency Transaction Gain (Loss), Realized | 1 | 4 | |
Gain (Loss) on Sale of Equity Investments | $ 21 | $ 21 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | 6 | ||
Expense Associated with Bridge Facility | $ 22 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Net income | $ 344 | $ 258 | $ 965 | $ 720 |
Less: Net income (loss) attributable to noncontrolling interest | 1 | (2) | 3 | (7) |
Net income attributable to Tyson | 343 | 260 | 962 | 727 |
Undistributed earnings | $ 307 | $ 234 | $ 843 | $ 642 |
Stock options and restricted stock | 5 | 6 | 5 | 5 |
Tangible Equity Units | 4 | 0 | 4 | 0 |
Warrants | 0 | 0 | 0 | 5 |
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions | 414 | 356 | 414 | 355 |
Net Income Per Share Attributable to Tyson - Diluted | $ 0.83 | $ 0.73 | $ 2.32 | $ 2.05 |
Class A [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Less Dividends Declared: | $ 30 | $ 21 | $ 99 | $ 69 |
Undistributed earnings | $ 258 | $ 190 | $ 709 | $ 522 |
Weighted average number of shares outstanding - Basic | 335 | 280 | 335 | 275 |
Net Income Per Share Attributable to Tyson - Basic | $ 0.86 | $ 0.75 | $ 2.41 | $ 2.15 |
Class B [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Less Dividends Declared: | $ 6 | $ 5 | $ 20 | $ 16 |
Undistributed earnings | $ 49 | $ 44 | $ 134 | $ 120 |
Weighted average number of shares outstanding - Basic | 70 | 70 | 70 | 70 |
Net Income Per Share Attributable to Tyson - Basic | $ 0.78 | $ 0.68 | $ 2.20 | $ 1.94 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015shares | Jun. 28, 2014shares | Jun. 27, 2015Classesshares | Jun. 28, 2014shares | |
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Number Of Classes Of Common Stock | Classes | 2 | |||
Percentage amount of per share cash dividends paid to holders of Class B stock that cannot exceed paid to holders of Class A stock | 90.00% | 90.00% | ||
Class A [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Undistributed earnings (losses), ratio used to calculate allocation to class of stock | 1 | |||
Class B [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Undistributed earnings (losses), ratio used to calculate allocation to class of stock | 0.9 | |||
Stock Compensation Plan [Member] | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, shares | 5 | 0 | 5 | 4 |
Derivative Financial Instrume58
Derivative Financial Instruments (Aggregate Outstanding Notionals Related To Cash Flow Hedges) (Details) - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] bu in Millions, $ in Millions | Jun. 27, 2015USD ($)buT | Sep. 27, 2014USD ($)buT |
Corn (in bushels) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bu | 1 | 0 |
Soy Meal (in tons) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 11,600 | 2,300 |
Foreign Currency [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 0 | $ 1 |
Derivative Financial Instrume59
Derivative Financial Instruments (Pretax Impact Of Cash Flow Hedge Derivative Instruments On The Consolidated Statements Of Income) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in OCI on Derivatives | $ (1) | $ (7) | $ (3) | $ (2) |
Gain/(Loss) Reclassified from OCI to Earnings | (1) | 1 | (5) | (2) |
Commodity Contracts [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in OCI on Derivatives | (1) | (7) | (3) | (1) |
Commodity Contracts [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Reclassified from OCI to Earnings | (1) | 1 | (5) | (2) |
Foreign Currency [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in OCI on Derivatives | 0 | 0 | 0 | (1) |
Foreign Currency [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Reclassified from OCI to Earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume60
Derivative Financial Instruments (Aggregate Outstanding Notionals Related To Fair Value Hedges) (Details) - Fair Value Hedging [Member] - Designated as Hedging Instrument [Member] - lb lb in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Live Cattle (in pounds) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 259 | 427 |
Lean Hogs (in pounds) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 153 | 329 |
Derivative Financial Instrume61
Derivative Financial Instruments (Pretax Impact Of Fair Value Hedge Derivative Instruments On The Consolidated Statements of Income) (Details) - Fair Value Hedging [Member] - Cost of Sales [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Forward Contracts [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) on forwards | $ 9 | $ (56) | $ 1 | $ (96) |
Purchase Contracts [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) on forwards | $ (9) | $ 56 | $ (1) | $ 96 |
Derivative Financial Instrume62
Derivative Financial Instruments (Aggregate Outstanding Notionals Related To Undesignated Positions) (Details) - Not Designated as Hedging Instrument [Member] lb in Millions, bu in Millions, $ in Millions | Jun. 27, 2015USD ($)bulbT | Sep. 27, 2014USD ($)bulbT |
Corn (in bushels) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bu | 44 | 0 |
Soy Meal (in tons) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | T | 540,100 | 195,800 |
Soy Oil (in pounds) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 68 | 3 |
Live Cattle (in pounds) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 12 | 22 |
Lean Hogs (in pounds) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 12 | 22 |
Foreign Currency [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 19 | $ 108 |
Derivative Financial Instrume63
Derivative Financial Instruments (Pretax Impact Of Undesignated Derivative Instruments On The Consolidated Statements Of Income) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | $ (1) | $ (19) | $ (47) | $ (28) |
Commodity Contracts [Member] | Sales [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | (2) | 25 | (10) | 57 |
Commodity Contracts [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | 0 | (47) | (34) | (89) |
Foreign Currency [Member] | Other Nonoperating Income (Expense) [Member] | ||||
Derivative [Line Items] | ||||
Gain/(Loss) Recognized in Earnings | $ 1 | $ 3 | $ (3) | $ 4 |
Derivative Financial Instrume64
Derivative Financial Instruments (Fair Value Of All Derivative Instruments) (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Derivative [Line Items] | ||
Derivative Assets | $ 43 | $ 59 |
Derivative Liabilities | 19 | 160 |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 16 | 17 |
Derivative Liabilities | 4 | 78 |
Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 16 | 17 |
Derivative Liabilities | 4 | 78 |
Designated as Hedging Instrument [Member] | Foreign Currency [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 27 | 42 |
Derivative Liabilities | 15 | 82 |
Not Designated as Hedging Instrument [Member] | Commodity Contracts [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 27 | 42 |
Derivative Liabilities | 15 | 80 |
Not Designated as Hedging Instrument [Member] | Foreign Currency [Member] | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | $ 0 | $ 2 |
Derivative Financial Instrume65
Derivative Financial Instruments (Narrative) (Details) - 9 months ended Jun. 27, 2015 - USD ($) $ in Millions | Total |
Derivative [Line Items] | |
Maximum length of time hedged forecasted transactions, months | 18 months |
Maximum Length Of Time Hedged Undesignated Positions | 18 months |
Grain [Member] | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (2) |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets and liabilities posted cash collateral | $ 16 | $ 98 | |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 2 | 1 | |
Available for Sale Securities, Noncurrent | 91 | 92 | |
Deferred Compensation Assets | 244 | 233 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | [1] | (3) | (50) |
Total Assets | 377 | 335 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | [1] | (19) | (148) |
Total Liabilities | 0 | 12 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 0 | 0 | |
Available for Sale Securities, Noncurrent | 0 | 1 | |
Deferred Compensation Assets | 9 | 15 | |
Total Assets | 9 | 16 | |
Total Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 2 | 1 | |
Available for Sale Securities, Noncurrent | 30 | 24 | |
Deferred Compensation Assets | 235 | 218 | |
Total Assets | 310 | 302 | |
Total Liabilities | 19 | 160 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 0 | 0 | |
Available for Sale Securities, Noncurrent | 61 | 67 | |
Deferred Compensation Assets | 0 | 0 | |
Total Assets | 61 | 67 | |
Total Liabilities | 0 | 0 | |
Commodity [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity Derivatives | 40 | 9 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | (3) | (50) | |
Derivative Financial Instruments, Liabilities | 0 | 10 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | (19) | (148) | |
Commodity [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity Derivatives | 0 | 0 | |
Derivative Financial Instruments, Liabilities | 0 | 0 | |
Commodity [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity Derivatives | 43 | 59 | |
Derivative Financial Instruments, Liabilities | 19 | 158 | |
Commodity [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity Derivatives | 0 | 0 | |
Derivative Financial Instruments, Liabilities | 0 | 0 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset | 0 | 0 | |
Foreign Exchange Forward Contracts, Liabilities | 0 | 2 | |
Derivative Liability, Fair Value, Gross Asset and Right to Reclaim Cash, Offset | 0 | 0 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Foreign Exchange Forward Contracts, Liabilities | 0 | 0 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Foreign Exchange Forward Contracts, Liabilities | 0 | 2 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Foreign Exchange Forward Contracts, Liabilities | $ 0 | $ 0 | |
[1] | Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At June 27, 2015, and September 27, 2014, we had posted with various counterparties $16 million and $98 million, respectively, of cash collateral related to our commodity derivatives and held no cash collateral. |
Fair Value Measurements (Sche67
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | $ 67 | $ 65 |
Total realized gains (losses) included in earnings | 0 | 0 |
Total unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 |
Purchases | 13 | 18 |
Issuances | 0 | 0 |
Settlements | (19) | (18) |
Balance at end of period | 61 | 65 |
Total gains (losses) for the nine-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period | $ 0 | $ 0 |
Fair Value Measurements (Sche68
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 | |
Common Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Cost Basis | [1] | $ 0 | $ 1 |
Fair Value | 0 | 1 | |
Unrealized Gain/(Loss) | 0 | 0 | |
Cumulative Other-than-Temporary Impairment Loss | 0 | 2 | |
U.S. Treasury and Agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Cost Basis | 32 | 25 | |
Fair Value | 32 | 25 | |
Unrealized Gain/(Loss) | 0 | 0 | |
Corporate And Asset-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amortized Cost Basis | 60 | 65 | |
Fair Value | 61 | 67 | |
Unrealized Gain/(Loss) | $ 1 | $ 2 | |
[1] | At June 27, 2015, and September 27, 2014, the amortized cost basis for Equity Securities had been reduced by accumulated other than temporary impairment of nil and $2 million, respectively. |
Fair Value Measurements (Sche69
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 |
Fair Value Disclosures [Abstract] | ||
Total Debt, Fair Value | $ 7,374 | $ 8,347 |
Total Debt, Carrying Value | $ 7,234 | $ 8,178 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | Sep. 27, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | |||
Facility Closing [Member] | Prepared Foods [Member] | Operating Segments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset Impairment Charges | $ 49 | $ 49 | $ 52 | ||
Fair Value, Measurements, Nonrecurring [Member] | Facility Closing [Member] | Prepared Foods [Member] | Operating Segments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset Impairment Charges | $ 49 | ||||
Common Stock [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | $ 0 | 0 | $ 6 | ||
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent | $ 0 | $ 0 | |||
Maximum [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Short Term Investment Maturity Period | 12 months | ||||
Available For Sale Securities Debt Maturity Period | 35 years |
Pension and Other Postretirem71
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Pension Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service Cost | $ 5 | $ 2 | $ 13 | $ 5 |
Interest Cost | 21 | 2 | 63 | 6 |
Expected Return on Plan Assets | (25) | (1) | (75) | (3) |
Amortization of net actuarial loss | 1 | 1 | 4 | 3 |
Settlement loss | 0 | 0 | 8 | 0 |
Net Periodic Cost | 2 | 4 | 13 | 11 |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service Cost | 2 | 1 | 4 | 2 |
Interest Cost | 2 | 0 | 5 | 2 |
Amortization of net actuarial loss | 6 | (6) | 6 | (6) |
Amortization of Prior Service Cost (Credit) | 0 | (1) | 0 | (1) |
Net Periodic Cost | $ 10 | $ (6) | $ 15 | $ (3) |
Pension and Other Postretirem72
Pension and Other Postretirement Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||||
Defined Benefit Plan, Contributions by Employer | $ 3 | $ 2 | $ 12 | $ 7 |
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 3 |
Other Comprehensive Income (Com
Other Comprehensive Income (Components Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |||
Other Comprehensive Income Loss [Line Items] | ||||||
Total Other Comprehensive Income (Loss), Before Tax | $ (19) | $ 3 | $ (15) | $ 13 | ||
Total Other Comprehensive Income (Loss), Tax | 10 | 4 | 5 | (1) | ||
Total Other Comprehensive Income (Loss), Net of Taxes | (9) | 7 | (10) | 12 | ||
Derivatives accounted for as cash flow hedges [Member] | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | (1) | (7) | (3) | (2) | ||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 1 | 3 | 1 | 1 | ||
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 0 | (4) | (2) | (1) | ||
Derivatives accounted for as cash flow hedges [Member] | Cost of Sales [Member] | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 1 | (1) | 5 | 2 | ||
Reclassification from AOCI, Current Period, Tax | 0 | 0 | (2) | (1) | ||
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | 1 | (1) | 3 | 1 | ||
Investments [Member] | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 1 | 0 | 20 | (1) | ||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | 0 | (8) | 0 | ||
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 1 | 0 | 12 | (1) | ||
Investments [Member] | Other Nonoperating Income (Expense) [Member] | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | (21) | 0 | (21) | 6 | ||
Reclassification from AOCI, Current Period, Tax | 8 | 0 | 8 | (2) | ||
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | (13) | 0 | (13) | 4 | ||
Currency translation [Member] | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 1 | 10 | (63) | 5 | ||
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 1 | 2 | 10 | 2 | ||
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 2 | 12 | (53) | 7 | ||
Currency translation [Member] | Cost of Sales [Member] | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 0 | [1] | 0 | 37 | [1] | 0 |
Reclassification from AOCI, Current Period, Tax | 0 | [1] | 0 | (1) | [1] | 0 |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | 0 | [1] | 0 | 36 | [1] | 0 |
Postretirement benefits [Member] | ||||||
Other Comprehensive Income Loss [Line Items] | ||||||
Total Other Comprehensive Income (Loss), Before Tax | 0 | 1 | 10 | 3 | ||
Total Other Comprehensive Income (Loss), Tax | 0 | (1) | (3) | (1) | ||
Total Other Comprehensive Income (Loss), Net of Taxes | $ 0 | $ 0 | $ 7 | $ 2 | ||
[1] | Translation loss reclassified to Cost of Sales related to disposition of a foreign operation, which is further described in Note 2: Acquisitions and Dispositions. |
Segment Reporting (Segment Repo
Segment Reporting (Segment Reporting Information, By Segment) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($)Facilities | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($)Facilities | Sep. 27, 2014USD ($)Facilities | |||||
Segment Reporting Information [Line Items] | |||||||||
Sales | $ 10,071 | $ 9,682 | $ 30,867 | $ 27,475 | |||||
Operating Income (Loss) | 563 | 351 | 1,619 | 1,124 | |||||
Total Other (Income) Expense | (45) | [1] | (41) | [2] | (183) | [1] | (90) | [2] | |
Income before Income Taxes | 518 | 310 | 1,436 | 1,034 | |||||
Prepared Foods [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Business Combination, Acquisition Related Costs | 1 | 10 | |||||||
Other Nonoperating Income (Expense) [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gain (Loss) on Sale of Equity Investments | 21 | 21 | |||||||
Expense Associated with Bridge Facility | 22 | ||||||||
Operating Segments [Member] | Chicken [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 2,757 | 2,829 | 8,366 | 8,327 | |||||
Operating Income (Loss) | 313 | 195 | 996 | 682 | |||||
Operating Segments [Member] | Beef [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 4,305 | 4,189 | 12,826 | 11,748 | |||||
Operating Income (Loss) | (7) | 101 | (33) | 194 | |||||
Operating Segments [Member] | Pork [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 1,207 | 1,766 | 3,951 | 4,677 | |||||
Operating Income (Loss) | 64 | 128 | 285 | 356 | |||||
Operating Segments [Member] | Prepared Foods [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 1,810 | 901 | 5,814 | 2,669 | |||||
Operating Income (Loss) | 207 | [3] | (50) | [4] | 438 | [3] | (13) | [4] | |
Operating Segments [Member] | International [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 244 | 365 | 771 | 1,020 | |||||
Operating Income (Loss) | 1 | (15) | (28) | (73) | |||||
Segment Reconciling Items [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 0 | 0 | 0 | 0 | |||||
Operating Income (Loss) | (15) | [1] | (8) | [2] | (39) | [1] | (22) | [2] | |
Business Combination, Acquisition Related Costs | 15 | 7 | 39 | 7 | |||||
Intersegment Elimination [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | (252) | (368) | (861) | (966) | |||||
Intersegment Elimination [Member] | Chicken [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 6 | 2 | 13 | 6 | |||||
Intersegment Elimination [Member] | Beef [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 93 | 83 | 248 | 213 | |||||
Intersegment Elimination [Member] | Pork [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Sales | 153 | $ 283 | 600 | $ 747 | |||||
Activity From Fire Related Damages [Member] | Prepared Foods [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Unusual or Infrequent Item, Insurance Proceeds | $ 11 | ||||||||
Other Nonrecurring (Income) Expense | $ 17 | ||||||||
Facility Closing [Member] | Prepared Foods [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Plants Closed | Facilities | 3 | 3 | 3 | ||||||
Facility Closing [Member] | Operating Segments [Member] | Prepared Foods [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Asset Impairment Charges | $ 49 | $ 49 | $ 52 | ||||||
Bridge Facility Commitment [Member] | Hillshire Brands Company [Member] | Other Nonoperating Income (Expense) [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Expense Associated with Bridge Facility | $ 22 | $ 22 | |||||||
[1] | Operating income in Other includes merger and integration costs of $15 million and $39 million for the three and nine months ended June 27, 2015, respectively, and Other (Income) Expense includes a $21 million gain on the sale of equity securities. | ||||||||
[2] | Operating income in Other includes $7 million related to merger and integration costs and Other (Income) Expense includes $22 million related to costs associated with bridge financing facilities, both incurred as part of the Hillshire Brands acquisition. | ||||||||
[3] | Includes merger and integration costs of $1 million and $10 million for the three and nine months ended June 27, 2015, respectively, and $11 million net proceeds and $17 million net costs related to a legacy Hillshire Brands plant fire for the three and nine months ended June 27, 2015, respectively. | ||||||||
[4] | Includes $49 million impairment charge related to the closure of three Prepared Foods plants. |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 27, 2015USD ($)Segments | Jun. 28, 2014USD ($) | Sep. 27, 2014USD ($) | Aug. 28, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of Operating Segments | Segments | 5 | |||||
Goodwill | $ 6,690 | $ 6,690 | $ 6,706 | |||
Sales | 10,071 | $ 9,682 | 30,867 | $ 27,475 | ||
Segment Reconciling Items [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 0 | 0 | 0 | 0 | ||
Intersegment Elimination [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | (252) | (368) | (861) | (966) | ||
Intersegment Elimination [Member] | Chicken [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 6 | 2 | 13 | 6 | ||
Intersegment Elimination [Member] | Beef [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 93 | 83 | 248 | 213 | ||
Intersegment Elimination [Member] | Pork [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | $ 153 | $ 283 | $ 600 | $ 747 | ||
Chicken Production Operations in Brazil and Mexico [Member] | International [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Disposal Group, Consideration | $ 575 | |||||
Hillshire Brands Company [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill | $ 4,790 |
Commitments And Contingencies C
Commitments And Contingencies Commitments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 27, 2015 | Sep. 27, 2014 | |
Guarantor Obligations [Line Items] | ||
Potential maximum obligation under cash flow assistance programs | $ 320 | |
Total receivables under cash flow assistance programs | 1 | $ 4 |
Uncollectible receivables estimated under cash flow assistance programs | $ 0 | $ 0 |
Guarantee of Indebtedness of Others [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Period (in years) | 10 years | |
Maximum potential amount | $ 50 | |
Residual Value Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum potential amount | $ 76 | |
Guarantor Obligations, Maximum Exposure, Remaining Lease Period (in years) | 13 years | |
Amount recoverable through various recourse provisions | $ 69 |
Commitments And Contingencies77
Commitments And Contingencies Contingencies (Details) | Mar. 30, 2015USD ($) | Sep. 22, 2014USD ($) | Aug. 25, 2014USD ($) | Jan. 30, 2014USD ($) | Oct. 02, 2013USD ($) | May. 31, 2013USD ($) | Sep. 30, 2006USD ($) | Sep. 30, 2006PHP | Jun. 27, 2015Claims | Jun. 23, 2014USD ($) | Jun. 23, 2014PHP |
Loss Contingencies [Line Items] | |||||||||||
Number of cases filed | Claims | 8 | ||||||||||
Bouaphakeo Case [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Damages Awarded, Value | $ 5,784,758 | ||||||||||
Loss contingency, damages sought | $ 2,692,145 | ||||||||||
Acosta Case [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Damages Awarded, Value | $ 18,774,989 | $ 5,733,943 | |||||||||
Loss contingency, damages sought | $ 6,258,330 | ||||||||||
Gomez Case [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Damages Awarded, Value | $ 4,960,787 | ||||||||||
Abdiaziz Case [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Damages Awarded, Value | $ 730,548 | ||||||||||
Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Loss Contingency, Damages Awarded, Value | $ 76,000,000 | PHP 3,453,664,710 | |||||||||
Loss Contingency, Range of Possible Loss, Maximum | $ 8,000,000 | PHP 342,287,800 |
Condensed Consolidating Finan78
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income and Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | |||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Sales | $ 10,071 | $ 9,682 | $ 30,867 | $ 27,475 | ||||
Cost of Sales | 9,085 | 9,045 | 27,936 | 25,502 | ||||
Gross Profit | 986 | 637 | 2,931 | 1,973 | ||||
Selling, General and Administrative | 423 | 286 | 1,312 | 849 | ||||
Operating Income | 563 | 351 | 1,619 | 1,124 | ||||
Other (Income) Expense: | ||||||||
Interest expense, net | 70 | 24 | 215 | 72 | ||||
Other, net | (25) | 17 | (32) | 18 | ||||
Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Total Other (Income) Expense | 45 | [1] | 41 | [2] | 183 | [1] | 90 | [2] |
Income (Loss) before Income Taxes | 518 | 310 | 1,436 | 1,034 | ||||
Income Tax (Benefit) Expense | 174 | 52 | 471 | 314 | ||||
Net Income | 344 | 258 | 965 | 720 | ||||
Less: Net income (loss) attributable to noncontrolling interest | 1 | (2) | 3 | (7) | ||||
Net Income Attributable to Tyson | 343 | 260 | 962 | 727 | ||||
Comprehensive Income | 335 | 265 | 955 | 732 | ||||
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 1 | (2) | 3 | (7) | ||||
Comprehensive Income Attributable to Tyson | 334 | 267 | 952 | 739 | ||||
TFI Parent [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Sales | 196 | 114 | 645 | 429 | ||||
Cost of Sales | 7 | 14 | 43 | 35 | ||||
Gross Profit | 189 | 100 | 602 | 394 | ||||
Selling, General and Administrative | 31 | 16 | 97 | 67 | ||||
Operating Income | 158 | 84 | 505 | 327 | ||||
Other (Income) Expense: | ||||||||
Interest expense, net | 65 | 23 | 198 | 13 | ||||
Other, net | (22) | 22 | (24) | 29 | ||||
Equity in net earnings of subsidiaries | (260) | (229) | (744) | (532) | ||||
Total Other (Income) Expense | (217) | (184) | (570) | (490) | ||||
Income (Loss) before Income Taxes | 375 | 268 | 1,075 | 817 | ||||
Income Tax (Benefit) Expense | 32 | 8 | 113 | 90 | ||||
Net Income | 343 | 260 | 962 | 727 | ||||
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net Income Attributable to Tyson | 343 | 260 | 962 | 727 | ||||
Comprehensive Income | 335 | 265 | 955 | 732 | ||||
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 | ||||
Comprehensive Income Attributable to Tyson | 335 | 265 | 955 | 732 | ||||
TFM Parent, Guarantors [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Sales | 5,417 | 5,807 | 16,478 | 16,023 | ||||
Cost of Sales | 5,318 | 5,559 | 16,102 | 15,338 | ||||
Gross Profit | 99 | 248 | 376 | 685 | ||||
Selling, General and Administrative | 62 | 55 | 182 | 167 | ||||
Operating Income | 37 | 193 | 194 | 518 | ||||
Other (Income) Expense: | ||||||||
Interest expense, net | 0 | 0 | 1 | 49 | ||||
Other, net | 0 | 1 | (2) | 0 | ||||
Equity in net earnings of subsidiaries | (52) | (18) | (140) | (30) | ||||
Total Other (Income) Expense | (52) | (17) | (141) | 19 | ||||
Income (Loss) before Income Taxes | 89 | 210 | 335 | 499 | ||||
Income Tax (Benefit) Expense | 13 | 62 | 67 | 158 | ||||
Net Income | 76 | 148 | 268 | 341 | ||||
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net Income Attributable to Tyson | 76 | 148 | 268 | 341 | ||||
Comprehensive Income | 81 | 156 | 257 | 348 | ||||
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 | ||||
Comprehensive Income Attributable to Tyson | 81 | 156 | 257 | 348 | ||||
Non-Guarantors [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Sales | 4,884 | 4,234 | 15,186 | 12,380 | ||||
Cost of Sales | 4,186 | 3,945 | 13,229 | 11,486 | ||||
Gross Profit | 698 | 289 | 1,957 | 894 | ||||
Selling, General and Administrative | 330 | 215 | 1,037 | 615 | ||||
Operating Income | 368 | 74 | 920 | 279 | ||||
Other (Income) Expense: | ||||||||
Interest expense, net | 5 | 1 | 16 | 10 | ||||
Other, net | (3) | (6) | (6) | (11) | ||||
Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Total Other (Income) Expense | 2 | (5) | 10 | (1) | ||||
Income (Loss) before Income Taxes | 366 | 79 | 910 | 280 | ||||
Income Tax (Benefit) Expense | 129 | (18) | 291 | 66 | ||||
Net Income | 237 | 97 | 619 | 214 | ||||
Less: Net income (loss) attributable to noncontrolling interest | 1 | (2) | 3 | (7) | ||||
Net Income Attributable to Tyson | 236 | 99 | 616 | 221 | ||||
Comprehensive Income | 239 | 106 | 601 | 220 | ||||
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 1 | (2) | 3 | (7) | ||||
Comprehensive Income Attributable to Tyson | 238 | 108 | 598 | 227 | ||||
Eliminations [Member] | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Sales | (426) | (473) | (1,442) | (1,357) | ||||
Cost of Sales | (426) | (473) | (1,438) | (1,357) | ||||
Gross Profit | 0 | 0 | (4) | 0 | ||||
Selling, General and Administrative | 0 | 0 | (4) | 0 | ||||
Operating Income | 0 | 0 | 0 | 0 | ||||
Other (Income) Expense: | ||||||||
Interest expense, net | 0 | 0 | 0 | 0 | ||||
Other, net | 0 | 0 | 0 | 0 | ||||
Equity in net earnings of subsidiaries | 312 | 247 | 884 | 562 | ||||
Total Other (Income) Expense | 312 | 247 | 884 | 562 | ||||
Income (Loss) before Income Taxes | (312) | (247) | (884) | (562) | ||||
Income Tax (Benefit) Expense | 0 | 0 | 0 | 0 | ||||
Net Income | (312) | (247) | (884) | (562) | ||||
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||||
Net Income Attributable to Tyson | (312) | (247) | (884) | (562) | ||||
Comprehensive Income | (320) | (262) | (858) | (568) | ||||
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 | ||||
Comprehensive Income Attributable to Tyson | $ (320) | $ (262) | $ (858) | $ (568) | ||||
[1] | Operating income in Other includes merger and integration costs of $15 million and $39 million for the three and nine months ended June 27, 2015, respectively, and Other (Income) Expense includes a $21 million gain on the sale of equity securities. | |||||||
[2] | Operating income in Other includes $7 million related to merger and integration costs and Other (Income) Expense includes $22 million related to costs associated with bridge financing facilities, both incurred as part of the Hillshire Brands acquisition. |
Condensed Consolidating Finan79
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 27, 2015 | Sep. 27, 2014 | Jun. 28, 2014 | Sep. 28, 2013 |
Assets | ||||
Cash and cash equivalents | $ 471 | $ 438 | $ 587 | $ 1,145 |
Accounts receivable, net | 1,633 | 1,684 | ||
Inventories | 3,082 | 3,274 | ||
Other current assets | 214 | 379 | ||
Assets held for sale | 189 | 446 | ||
Total Current Assets | 5,589 | 6,221 | ||
Net Property, Plant and Equipment | 5,312 | 5,130 | ||
Goodwill | 6,690 | 6,706 | ||
Intangible Assets, net | 5,202 | 5,276 | ||
Other Assets | 650 | 623 | ||
Investment in Subsidiaries | 0 | 0 | ||
Total Assets | 23,443 | 23,956 | ||
Liabilities and Shareholders' Equity | ||||
Current debt | 1,205 | 643 | ||
Accounts payable | 1,621 | 1,806 | ||
Other current liabilities | 1,150 | 1,207 | ||
Liabilities held for sale | 52 | 141 | ||
Total Current Liabilities | 4,028 | 3,797 | ||
Long-Term Debt | 6,029 | 7,535 | ||
Deferred Income Taxes | 2,447 | 2,450 | ||
Other Liabilities | 1,256 | 1,270 | ||
Total Tyson Shareholders' Equity | 9,667 | 8,890 | ||
Noncontrolling Interest | 16 | 14 | ||
Total Shareholders' Equity | 9,683 | 8,904 | ||
Total Liabilities and Shareholders' Equity | 23,443 | 23,956 | ||
TFI Parent [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 4 | 3 | ||
Inventories | 0 | 0 | ||
Other current assets | 13 | 42 | ||
Assets held for sale | 3 | 3 | ||
Total Current Assets | 20 | 48 | ||
Net Property, Plant and Equipment | 27 | 30 | ||
Goodwill | 0 | 0 | ||
Intangible Assets, net | 0 | 0 | ||
Other Assets | 139 | 204 | ||
Investment in Subsidiaries | 21,626 | 20,845 | ||
Total Assets | 21,812 | 21,127 | ||
Liabilities and Shareholders' Equity | ||||
Current debt | 799 | 240 | ||
Accounts payable | 25 | 35 | ||
Other current liabilities | 5,620 | 4,718 | ||
Liabilities held for sale | 0 | 0 | ||
Total Current Liabilities | 6,444 | 4,993 | ||
Long-Term Debt | 5,518 | 7,056 | ||
Deferred Income Taxes | 3 | 21 | ||
Other Liabilities | 180 | 167 | ||
Total Tyson Shareholders' Equity | 9,667 | 8,890 | ||
Noncontrolling Interest | 0 | 0 | ||
Total Shareholders' Equity | 9,667 | 8,890 | ||
Total Liabilities and Shareholders' Equity | 21,812 | 21,127 | ||
TFM Parent, Guarantors [Member] | ||||
Assets | ||||
Cash and cash equivalents | 13 | 41 | 15 | 21 |
Accounts receivable, net | 612 | 665 | ||
Inventories | 1,260 | 1,272 | ||
Other current assets | 48 | 78 | ||
Assets held for sale | 0 | 0 | ||
Total Current Assets | 1,933 | 2,056 | ||
Net Property, Plant and Equipment | 979 | 932 | ||
Goodwill | 881 | 881 | ||
Intangible Assets, net | 12 | 15 | ||
Other Assets | 154 | 148 | ||
Investment in Subsidiaries | 2,169 | 2,049 | ||
Total Assets | 6,128 | 6,081 | ||
Liabilities and Shareholders' Equity | ||||
Current debt | 1 | 0 | ||
Accounts payable | 716 | 755 | ||
Other current liabilities | 159 | 235 | ||
Liabilities held for sale | 0 | 0 | ||
Total Current Liabilities | 876 | 990 | ||
Long-Term Debt | 1 | 2 | ||
Deferred Income Taxes | 98 | 96 | ||
Other Liabilities | 123 | 125 | ||
Total Tyson Shareholders' Equity | 5,030 | 4,868 | ||
Noncontrolling Interest | 0 | 0 | ||
Total Shareholders' Equity | 5,030 | 4,868 | ||
Total Liabilities and Shareholders' Equity | 6,128 | 6,081 | ||
Non-Guarantors [Member] | ||||
Assets | ||||
Cash and cash equivalents | 458 | 397 | 572 | 1,124 |
Accounts receivable, net | 1,017 | 1,016 | ||
Inventories | 1,822 | 2,002 | ||
Other current assets | 165 | 379 | ||
Assets held for sale | 186 | 443 | ||
Total Current Assets | 3,648 | 4,237 | ||
Net Property, Plant and Equipment | 4,306 | 4,168 | ||
Goodwill | 5,809 | 5,825 | ||
Intangible Assets, net | 5,190 | 5,261 | ||
Other Assets | 357 | 326 | ||
Investment in Subsidiaries | 0 | 0 | ||
Total Assets | 19,310 | 19,817 | ||
Liabilities and Shareholders' Equity | ||||
Current debt | 405 | 403 | ||
Accounts payable | 880 | 1,016 | ||
Other current liabilities | 857 | 921 | ||
Liabilities held for sale | 52 | 141 | ||
Total Current Liabilities | 2,194 | 2,481 | ||
Long-Term Debt | 510 | 532 | ||
Deferred Income Taxes | 2,346 | 2,333 | ||
Other Liabilities | 953 | 978 | ||
Total Tyson Shareholders' Equity | 13,291 | 13,479 | ||
Noncontrolling Interest | 16 | 14 | ||
Total Shareholders' Equity | 13,307 | 13,493 | ||
Total Liabilities and Shareholders' Equity | 19,310 | 19,817 | ||
Eliminations [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | (12) | (120) | ||
Assets held for sale | 0 | 0 | ||
Total Current Assets | (12) | (120) | ||
Net Property, Plant and Equipment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible Assets, net | 0 | 0 | ||
Other Assets | 0 | (55) | ||
Investment in Subsidiaries | (23,795) | (22,894) | ||
Total Assets | (23,807) | (23,069) | ||
Liabilities and Shareholders' Equity | ||||
Current debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Other current liabilities | (5,486) | (4,667) | ||
Liabilities held for sale | 0 | 0 | ||
Total Current Liabilities | (5,486) | (4,667) | ||
Long-Term Debt | 0 | (55) | ||
Deferred Income Taxes | 0 | 0 | ||
Other Liabilities | 0 | 0 | ||
Total Tyson Shareholders' Equity | (18,321) | (18,347) | ||
Noncontrolling Interest | 0 | 0 | ||
Total Shareholders' Equity | (18,321) | (18,347) | ||
Total Liabilities and Shareholders' Equity | $ (23,807) | $ (23,069) |
Condensed Consolidating Finan80
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | ||
Cash Provided by (Used for) Operating Activities | $ 1,672 | $ 543 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (636) | (437) |
(Purchases of)/ Proceeds from marketable securities, net | 19 | (1) |
Acquisitions, net of cash acquired | 0 | (56) |
Proceeds from sale of businesses | 165 | 0 |
Other, net | 26 | 44 |
Cash Provided by (Used for) Investing Activities | (426) | (450) |
Cash Flows From Financing Activities: | ||
Net change in debt | (984) | (379) |
Purchases of Tyson Class A common stock | (197) | (286) |
Dividends | (110) | (76) |
Stock options exercised | 71 | 61 |
Other, net | 17 | 26 |
Net change in intercompany balances | 0 | 0 |
Cash Provided by (Used for) Financing Activities | (1,203) | (654) |
Effect of Exchange Rate Changes on Cash | (10) | 3 |
Increase (Decrease) in Cash and Cash Equivalents | 33 | (558) |
Cash and Cash Equivalents at Beginning of Year | 438 | 1,145 |
Cash and Cash Equivalents at End of Period | 471 | 587 |
TFI Parent [Member] | ||
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | ||
Cash Provided by (Used for) Operating Activities | 213 | 12 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | 0 | (1) |
(Purchases of)/ Proceeds from marketable securities, net | 21 | 0 |
Acquisitions, net of cash acquired | 0 | |
Proceeds from sale of businesses | 0 | |
Other, net | 26 | 30 |
Cash Provided by (Used for) Investing Activities | 47 | 29 |
Cash Flows From Financing Activities: | ||
Net change in debt | (982) | (370) |
Purchases of Tyson Class A common stock | (197) | (286) |
Dividends | (110) | (76) |
Stock options exercised | 71 | 61 |
Other, net | 17 | 26 |
Net change in intercompany balances | 941 | 604 |
Cash Provided by (Used for) Financing Activities | (260) | (41) |
Effect of Exchange Rate Changes on Cash | 0 | 0 |
Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 |
Cash and Cash Equivalents at Beginning of Year | 0 | 0 |
Cash and Cash Equivalents at End of Period | 0 | 0 |
TFM Parent, Guarantors [Member] | ||
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | ||
Cash Provided by (Used for) Operating Activities | 190 | 264 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (127) | (109) |
(Purchases of)/ Proceeds from marketable securities, net | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Proceeds from sale of businesses | 0 | |
Other, net | 1 | 1 |
Cash Provided by (Used for) Investing Activities | (126) | (108) |
Cash Flows From Financing Activities: | ||
Net change in debt | 0 | 0 |
Purchases of Tyson Class A common stock | 0 | 0 |
Dividends | 0 | 0 |
Stock options exercised | 0 | 0 |
Other, net | 0 | 0 |
Net change in intercompany balances | (92) | (162) |
Cash Provided by (Used for) Financing Activities | (92) | (162) |
Effect of Exchange Rate Changes on Cash | 0 | 0 |
Increase (Decrease) in Cash and Cash Equivalents | (28) | (6) |
Cash and Cash Equivalents at Beginning of Year | 41 | 21 |
Cash and Cash Equivalents at End of Period | 13 | 15 |
Non-Guarantors [Member] | ||
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | ||
Cash Provided by (Used for) Operating Activities | 1,290 | 312 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (509) | (327) |
(Purchases of)/ Proceeds from marketable securities, net | (2) | (1) |
Acquisitions, net of cash acquired | (56) | |
Proceeds from sale of businesses | 165 | |
Other, net | (1) | 13 |
Cash Provided by (Used for) Investing Activities | (347) | (371) |
Cash Flows From Financing Activities: | ||
Net change in debt | (2) | (9) |
Purchases of Tyson Class A common stock | 0 | 0 |
Dividends | (21) | (45) |
Stock options exercised | 0 | 0 |
Other, net | 0 | 0 |
Net change in intercompany balances | (849) | (442) |
Cash Provided by (Used for) Financing Activities | (872) | (496) |
Effect of Exchange Rate Changes on Cash | (10) | 3 |
Increase (Decrease) in Cash and Cash Equivalents | 61 | (552) |
Cash and Cash Equivalents at Beginning of Year | 397 | 1,124 |
Cash and Cash Equivalents at End of Period | 458 | 572 |
Eliminations [Member] | ||
Cash and Cash Equivalents, Period Increase (Decrease) [Abstract] | ||
Cash Provided by (Used for) Operating Activities | (21) | (45) |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | 0 | 0 |
(Purchases of)/ Proceeds from marketable securities, net | 0 | 0 |
Acquisitions, net of cash acquired | 0 | |
Proceeds from sale of businesses | 0 | |
Other, net | 0 | 0 |
Cash Provided by (Used for) Investing Activities | 0 | 0 |
Cash Flows From Financing Activities: | ||
Net change in debt | 0 | 0 |
Purchases of Tyson Class A common stock | 0 | 0 |
Dividends | 21 | 45 |
Stock options exercised | 0 | 0 |
Other, net | 0 | 0 |
Net change in intercompany balances | 0 | 0 |
Cash Provided by (Used for) Financing Activities | 21 | 45 |
Effect of Exchange Rate Changes on Cash | 0 | 0 |
Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 |
Cash and Cash Equivalents at Beginning of Year | 0 | 0 |
Cash and Cash Equivalents at End of Period | $ 0 | $ 0 |
Condensed Consolidating Finan81
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements (Narrative) (Details) | Jun. 27, 2015USD ($) |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Amount available under credit facility | $ 1,250,000,000 |