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 January 2, 2016 in millions TFI TFM Non- Eliminations Total Sales $ 221 $ 4,833 $ 4,653 $ (555 ) $ 9,152 Cost of Sales 8 4,536 3,960 (553 ) 7,951 Gross Profit 213 297 693 (2 ) 1,201 Selling, General and Administrative 25 66 336 (2 ) 425 Operating Income 188 231 357 — 776 Other (Income) Expense: Interest expense, net 61 — 4 — 65 Other, net — (1 ) — — (1 ) Equity in net earnings of subsidiaries (383 ) (33 ) — 416 — Total Other (Income) Expense (322 ) (34 ) 4 416 64 Income (Loss) before Income Taxes 510 265 353 (416 ) 712 Income Tax (Benefit) Expense 49 83 119 — 251 Net Income 461 182 234 (416 ) 461 Less: Net Income (Loss) Attributable to Noncontrolling Interest — — — — — Net Income Attributable to Tyson $ 461 $ 182 $ 234 $ (416 ) $ 461 Comprehensive Income (Loss) 453 177 223 (400 ) 453 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest — — — — — Comprehensive Income (Loss) Attributable to Tyson $ 453 $ 177 $ 223 $ (400 ) $ 453 Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 27, 2014 in millions TFI TFM Non- Eliminations Total Sales $ 228 $ 5,809 $ 5,325 $ (545 ) $ 10,817 Cost of Sales 19 5,662 4,722 (542 ) 9,861 Gross Profit 209 147 603 (3 ) 956 Selling, General and Administrative 34 61 355 (3 ) 447 Operating Income 175 86 248 — 509 Other (Income) Expense: Interest expense, net 69 — 6 — 75 Other, net (1 ) — — — (1 ) Equity in net earnings of subsidiaries (237 ) (38 ) — 275 — Total Other (Income) Expense (169 ) (38 ) 6 275 74 Income (Loss) before Income Taxes 344 124 242 (275 ) 435 Income Tax (Benefit) Expense 35 30 60 — 125 Net Income 309 94 182 (275 ) 310 Less: Net Income (Loss) Attributable to Noncontrolling Interest — — 1 — 1 Net Income Attributable to Tyson $ 309 $ 94 $ 181 $ (275 ) $ 309 Comprehensive Income (Loss) 332 104 186 (289 ) 333 Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interest — — 1 — 1 Comprehensive Income (Loss) Attributable to Tyson $ 332 $ 104 $ 185 $ (289 ) $ 332 Condensed Consolidating Balance Sheet as of January 2, 2016 in millions TFI TFM Non- Eliminations Total Assets Current Assets: Cash and cash equivalents $ — $ 15 $ 1,172 $ — $ 1,187 Accounts receivable, net — 514 1,000 — 1,514 Inventories — 953 1,865 — 2,818 Other current assets 16 66 131 (55 ) 158 Total Current Assets 16 1,548 4,168 (55 ) 5,677 Net Property, Plant and Equipment 25 978 4,181 — 5,184 Goodwill — 881 5,788 — 6,669 Intangible Assets, net — 9 5,136 — 5,145 Other Assets 118 132 365 — 615 Investment in Subsidiaries 22,213 2,205 — (24,418 ) — Total Assets $ 22,372 $ 5,753 $ 19,638 $ (24,473 ) $ 23,290 Liabilities and Shareholders’ Equity Current Liabilities: Current debt $ 707 $ 1 $ 17 $ (8 ) $ 717 Accounts payable 20 919 842 — 1,781 Other current liabilities 6,187 200 832 (6,049 ) 1,170 Total Current Liabilities 6,914 1,120 1,691 (6,057 ) 3,668 Long-Term Debt 5,484 1 503 — 5,988 Deferred Income Taxes 14 106 2,394 — 2,514 Other Liabilities 198 123 1,022 — 1,343 Total Tyson Shareholders’ Equity 9,762 4,403 14,013 (18,416 ) 9,762 Noncontrolling Interest — — 15 — 15 Total Shareholders’ Equity 9,762 4,403 14,028 (18,416 ) 9,777 Total Liabilities and Shareholders’ Equity $ 22,372 $ 5,753 $ 19,638 $ (24,473 ) $ 23,290 Condensed Consolidating Balance Sheet as of October 3, 2015 in millions TFI TFM Non- 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 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, net — 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 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 Interest — — 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 Statement of Cash Flows for the three months ended January 2, 2016 in millions TFI TFM Non- Eliminations Total Cash Provided by (Used for) Operating Activities $ 174 $ 622 $ 299 $ — $ 1,095 Cash Flows from Investing Activities: Additions to property, plant and equipment — (33 ) (155 ) — (188 ) (Purchases of)/Proceeds from marketable securities, net — — (2 ) — (2 ) Proceeds from sale of businesses — — — — — Other, net — — (1 ) — (1 ) Cash Provided by (Used for) Investing Activities — (33 ) (158 ) — (191 ) Cash Flows from Financing Activities: Net change in debt (19 ) — (1 ) — (20 ) Purchases of Tyson Class A common stock (387 ) — — — (387 ) Dividends (54 ) — — — (54 ) Stock options exercised 34 — — — 34 Other, net 23 — — — 23 Net change in intercompany balances 229 (586 ) 357 — — Cash Provided by (Used for) Financing Activities (174 ) (586 ) 356 — (404 ) Effect of Exchange Rate Change on Cash — — (1 ) — (1 ) Increase (Decrease) in Cash and Cash Equivalents — 3 496 — 499 Cash and Cash Equivalents at Beginning of Year — 12 676 — 688 Cash and Cash Equivalents at End of Period $ — $ 15 $ 1,172 $ — $ 1,187 Condensed Consolidating Statement of Cash Flows for the three months ended December 27, 2014 in millions TFI TFM Non- Eliminations Total Cash Provided by (Used for) Operating Activities $ 55 $ 325 $ 432 $ — $ 812 Cash Flows from Investing Activities: Additions to property, plant and equipment — (40 ) (191 ) — (231 ) (Purchases of)/Proceeds from marketable securities, net — — (3 ) — (3 ) Proceeds from sale of businesses — — 142 — 142 Other, net — — 3 — 3 Cash Provided by (Used for) Investing Activities — (40 ) (49 ) — (89 ) Cash Flows from Financing Activities: Net change in debt (667 ) — (1 ) — (668 ) Purchases of Tyson Class A common stock (91 ) — — — (91 ) Dividends (37 ) — — — (37 ) Stock options exercised 16 — — — 16 Other, net 5 — — — 5 Net change in intercompany balances 719 (314 ) (405 ) — — Cash Provided by (Used for) Financing Activities (55 ) (314 ) (406 ) — (775 ) Effect of Exchange Rate Change on Cash — — (5 ) — (5 ) Increase (Decrease) in Cash and Cash Equivalents — (29 ) (28 ) — (57 ) Cash and Cash Equivalents at Beginning of Year — 41 397 — 438 Cash and Cash Equivalents at End of Period $ — $ 12 $ 369 $ — $ 381 |