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 year ended October 3, 2015 in millions TFI Parent TFM Parent Non- Guarantors Eliminations Total Sales $ 897 $ 22,155 $ 20,345 $ (2,024 ) $ 41,373 Cost of Sales 26 21,675 17,774 (2,019 ) 37,456 Gross Profit 871 480 2,571 (5 ) 3,917 Selling, General and Administrative 128 260 1,365 (5 ) 1,748 Operating Income 743 220 1,206 — 2,169 Other (Income) Expense: Interest expense, net 263 2 19 — 284 Other, net (22 ) (2 ) (12 ) — (36 ) Equity in net earnings of subsidiaries (925 ) (109 ) — 1,034 — Total Other (Income) Expense (684 ) (109 ) 7 1,034 248 Income from Continuing Operations before Income Taxes 1,427 329 1,199 (1,034 ) 1,921 Income Tax Expense 207 72 418 — 697 Income from Continuing Operations 1,220 257 781 (1,034 ) 1,224 Loss from Discontinued Operation, Net of Tax — — — — — Net Income 1,220 257 781 (1,034 ) 1,224 Less: Net Gain (Loss) Attributable to Noncontrolling Interests — — 4 — 4 Net Income Attributable to Tyson $ 1,220 $ 257 $ 777 $ (1,034 ) $ 1,220 Comprehensive Income (Loss) $ 1,281 $ 291 $ 840 $ (1,131 ) $ 1,281 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest — — 4 — 4 Comprehensive Income (Loss) Attributable to Tyson $ 1,281 $ 291 $ 836 $ (1,131 ) $ 1,277 Condensed Consolidating Statement of Income and Comprehensive Income for the year ended September 27, 2014 in millions TFI Parent TFM Parent Non- Guarantors Eliminations Total Sales $ 579 $ 21,924 $ 16,926 $ (1,849 ) $ 37,580 Cost of Sales 74 20,971 15,689 (1,839 ) 34,895 Gross Profit 505 953 1,237 (10 ) 2,685 Selling, General and Administrative 141 240 884 (10 ) 1,255 Operating Income 364 713 353 — 1,430 Other (Income) Expense: Interest expense, net 63 49 13 — 125 Other, net 67 (1 ) (13 ) — 53 Equity in net earnings of subsidiaries (731 ) (43 ) — 774 — Total Other (Income) Expense (601 ) 5 — 774 178 Income from Continuing Operations before Income Taxes 965 708 353 (774 ) 1,252 Income Tax Expense 101 227 68 — 396 Income from Continuing Operations 864 481 285 (774 ) 856 Loss from Discontinued Operation, Net of Tax — — — — — Net Income 864 481 285 (774 ) 856 Less: Net Gain (Loss) Attributable to Noncontrolling Interests — — (8 ) — (8 ) Net Income Attributable to Tyson $ 864 $ 481 $ 293 $ (774 ) $ 864 Comprehensive Income (Loss) $ 817 $ 449 $ 243 $ (692 ) $ 817 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests — — (8 ) — (8 ) Comprehensive Income (Loss) Attributable to Tyson $ 817 $ 449 $ 251 $ (692 ) $ 825 Condensed Consolidating Statement of Income and Comprehensive Income for the year ended September 28, 2013 in millions TFI Parent TFM Parent Non- Guarantors Eliminations Total Sales $ 431 $ 19,243 $ 16,120 $ (1,420 ) $ 34,374 Cost of Sales 40 18,464 14,932 (1,420 ) 32,016 Gross Profit 391 779 1,188 — 2,358 Selling, General and Administrative 68 201 714 — 983 Operating Income 323 578 474 — 1,375 Other (Income) Expense: Interest expense, net 36 62 40 — 138 Other, net 4 (1 ) (23 ) — (20 ) Equity in net earnings of subsidiaries (582 ) (40 ) — 622 — Total Other (Income) Expense (542 ) 21 17 622 118 Income from Continuing Operations before Income Taxes 865 557 457 (622 ) 1,257 Income Tax Expense 87 172 150 — 409 Income from Continuing Operations 778 385 307 (622 ) 848 Loss from Discontinued Operation, Net of Tax — — (70 ) — (70 ) Net Income 778 385 237 (622 ) 778 Less: Net Gain (Loss) Attributable to Noncontrolling Interests — — — — — Net Income Attributable to Tyson $ 778 $ 385 $ 237 $ (622 ) $ 778 Comprehensive Income (Loss) $ 733 $ 380 $ 212 $ (592 ) $ 733 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests — — — — — Comprehensive Income (Loss) Attributable to Tyson $ 733 $ 380 $ 212 $ (592 ) $ 733 Condensed Consolidating Balance Sheet as of October 3, 2015 in millions TFI Parent TFM Parent Non- Guarantors Eliminations Total Assets Current Assets: Cash and cash equivalents $ — $ 12 $ 676 $ — $ 688 Accounts receivable, net — 578 1,042 — 1,620 Inventories 1 1,009 1,868 — 2,878 Other current assets 43 91 147 (86 ) 195 Assets held for sale — — — — — Total Current Assets 44 1,690 3,733 (86 ) 5,381 Net Property, Plant and Equipment 26 975 4,175 — 5,176 Goodwill — 881 5,786 — 6,667 Intangible Assets — 10 5,158 — 5,168 Other Assets 129 146 337 — 612 Investment in Subsidiaries 21,850 2,177 — (24,027 ) — Total Assets $ 22,049 $ 5,879 $ 19,189 $ (24,113 ) $ 23,004 Liabilities and Shareholders’ Equity Current Liabilities: Current debt $ 710 $ 1 $ 22 $ (18 ) $ 715 Accounts payable 28 698 936 — 1,662 Other current liabilities 5,930 152 939 (5,863 ) 1,158 Liabilities held for sale — — — — — Total Current Liabilities 6,668 851 1,897 (5,881 ) 3,535 Long-Term Debt 5,498 1 511 — 6,010 Deferred Income Taxes — 98 2,351 — 2,449 Other Liabilities 192 118 994 — 1,304 Total Tyson Shareholders’ Equity 9,691 4,811 13,421 (18,232 ) 9,691 Noncontrolling Interests — — 15 — 15 Total Shareholders’ Equity 9,691 4,811 13,436 (18,232 ) 9,706 Total Liabilities and Shareholders’ Equity $ 22,049 $ 5,879 $ 19,189 $ (24,113 ) $ 23,004 Condensed Consolidating Balance Sheet as of September 27, 2014 in millions TFI Parent TFM Parent Non- Guarantors 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 — 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 Interests — — 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 year ended October 3, 2015 in millions TFI Parent TFM Parent Non- Guarantors Eliminations Total Cash Provided by (Used for) Operating Activities $ 274 $ 476 $ 1,841 $ (21 ) $ 2,570 Cash Flows from Investing Activities: Additions to property, plant and equipment — (159 ) (695 ) — (854 ) (Purchases of)/Proceeds from marketable securities, net 21 — (7 ) — 14 Acquisitions, net of cash acquired — — — — — Proceeds from sale of businesses — — 539 — 539 Other, net 23 1 7 — 31 Cash Provided by (Used for) Investing Activities 44 (158 ) (156 ) — (270 ) Cash Flows from Financing Activities: Net change in debt (1,092 ) — (402 ) — (1,494 ) Proceeds from issuance of common stock, net of issuance costs — — — — — Proceeds from issuance of equity component of tangible equity units — — — — — Purchases of Tyson Class A common stock (495 ) — — — (495 ) Dividends (147 ) — (21 ) 21 (147 ) Stock options exercised 84 — — — 84 Other, net 22 — (5 ) — 17 Net change in intercompany balances 1,310 (347 ) (963 ) — — Cash Provided by (Used for) Financing Activities (318 ) (347 ) (1,391 ) 21 (2,035 ) Effect of Exchange Rate Change on Cash — — (15 ) — (15 ) Increase (Decrease) in Cash and Cash Equivalents — (29 ) 279 — 250 Cash and Cash Equivalents at Beginning of Year — 41 397 — 438 Cash and Cash Equivalents at End of Period $ — $ 12 $ 676 $ — $ 688 Condensed Consolidating Statement of Cash Flows for the year ended September 27, 2014 in millions TFI Parent TFM Parent Non- Guarantors Eliminations Total Cash Provided by (Used for) Operating Activities $ 132 $ 431 $ 660 $ (45 ) $ 1,178 Cash Flows from Investing Activities: Additions to property, plant and equipment (1 ) (147 ) (484 ) — (632 ) (Purchases of)/Proceeds from marketable securities, net — — 15 — 15 Acquisitions, net of cash acquired (8,193 ) — — — (8,193 ) Proceeds from sale of businesses — — — — — Other, net 5 2 3 — 10 Cash Provided by (Used for) Investing Activities (8,189 ) (145 ) (466 ) — (8,800 ) Cash Flows from Financing Activities: Net change in debt 5,154 — (12 ) — 5,142 Proceeds from issuance of common stock, net of issuance costs 873 — — — 873 Proceeds from issuance of equity component of tangible equity units 1,255 — — — 1,255 Purchases of Tyson Class A common stock (295 ) — — — (295 ) Dividends (104 ) — (45 ) 45 (104 ) Stock options exercised 67 — — — 67 Other, net (22 ) — (1 ) — (23 ) Net change in intercompany balances 1,129 (266 ) (863 ) — — Cash Provided by (Used for) Financing Activities 8,057 (266 ) (921 ) 45 6,915 Effect of Exchange Rate Change on Cash — — — — — Increase (Decrease) in Cash and Cash Equivalents — 20 (727 ) — (707 ) Cash and Cash Equivalents at Beginning of Year — 21 1,124 — 1,145 Cash and Cash Equivalents at End of Period $ — $ 41 $ 397 $ — $ 438 Condensed Consolidating Statement of Cash Flows for the year ended September 28, 2013 in millions TFI Parent TFM Parent Non- Guarantors Eliminations Total Cash Provided by (Used for) Operating Activities $ 294 $ 337 $ 696 $ (13 ) $ 1,314 Cash Flows from Investing Activities: Additions to property, plant and equipment (4 ) (113 ) (441 ) — (558 ) (Purchases of)/Proceeds from marketable securities, net — (13 ) (5 ) — (18 ) Acquisitions, net of cash acquired — — (106 ) — (106 ) Proceeds from sale of businesses — — — — — Other, net — 3 36 — 39 Cash Provided by (Used for) Investing Activities (4 ) (123 ) (516 ) — (643 ) Cash Flows from Financing Activities: Net change in debt 5 — (28 ) — (23 ) Proceeds from issuance of common stock, net of issuance costs — — — — — Proceeds from issuance of equity component of tangible equity units — — — — — Purchases of Tyson Class A common stock (614 ) — — — (614 ) Dividends (104 ) — (13 ) 13 (104 ) Stock options exercised 123 — — — 123 Other, net 18 — — — 18 Net change in intercompany balances 281 (202 ) (79 ) — — Cash Provided by (Used for) Financing Activities (291 ) (202 ) (120 ) 13 (600 ) Effect of Exchange Rate Change on Cash — — 3 — 3 Increase (Decrease) in Cash and Cash Equivalents (1 ) 12 63 — 74 Cash and Cash Equivalents at Beginning of Year 1 9 1,061 — 1,071 Cash and Cash Equivalents at End of Period $ — $ 21 $ 1,124 $ — $ 1,145 |