Document and Entity Information
Document and Entity Information | 3 Months Ended |
Dec. 28, 2019$ / sharesshares | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Dec. 28, 2019 |
Document Transition Report | false |
Entity File Number | 001-14704 |
Entity Registrant Name | TYSON FOODS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 71-0225165 |
Entity Addresses [Line Items] | 2200 West Don Tyson Parkway, |
Entity Address, City or Town | Springdale, |
Entity Address, State or Province | AR |
Entity Address, Postal Zip Code | 72762-6999 |
City Area Code | (479) |
Local Phone Number | 290-4000 |
Entity Listing, Description | Class A Common Stock |
Entity Listing, Par Value Per Share | $ / shares | $ 0.10 |
Trading Symbol | TSN |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Current Interactive Data Filing Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000100493 |
Current Fiscal Year End Date | --10-03 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Class A [Member] | |
Entity Common Stock, Shares Outstanding | 295,027,770 |
Class B [Member] | |
Entity Common Stock, Shares Outstanding | 70,010,355 |
Consolidated Condensed Statemen
Consolidated Condensed Statements Of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Sales | $ 10,815 | $ 10,193 |
Cost of Sales | 9,375 | 8,838 |
Gross Profit | 1,440 | 1,355 |
Operating Expenses: | ||
Selling, General and Administrative | 614 | 548 |
Operating Income | 826 | 807 |
Other (Income) Expense: | ||
Interest income | (3) | (2) |
Interest expense | 120 | 99 |
Other, net | (16) | (3) |
Total Other (Income) Expense | 101 | 94 |
Income before Income Taxes | 725 | 713 |
Income Tax Expense | 164 | 161 |
Net Income | 561 | 552 |
Less: Net Income Attributable to Noncontrolling Interests | 4 | 1 |
Net Income Attributable to Tyson | $ 557 | $ 551 |
Weighted Average Shares Outstanding: | ||
Diluted, Shares | 367 | 366 |
Net Income Per Share Attributable to Tyson: | ||
Diluted (USD per share) | $ 1.52 | $ 1.50 |
Class A [Member] | ||
Weighted Average Shares Outstanding: | ||
Basic, Shares | 293 | 294 |
Net Income Per Share Attributable to Tyson: | ||
Basic (USD per share) | $ 1.56 | $ 1.54 |
Class B [Member] | ||
Weighted Average Shares Outstanding: | ||
Basic, Shares | 70 | 70 |
Net Income Per Share Attributable to Tyson: | ||
Basic (USD per share) | $ 1.40 | $ 1.39 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 561 | $ 552 |
Other Comprehensive Income (Loss), Net of Taxes: | ||
Derivatives accounted for as cash flow hedges | 3 | (9) |
Investments | 0 | 1 |
Currency translation | 35 | 8 |
Postretirement benefits | 0 | (3) |
Total Other Comprehensive Income (Loss), Net of Taxes | 38 | (3) |
Comprehensive Income | 599 | 549 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 4 | 1 |
Comprehensive Income Attributable to Tyson | $ 595 | $ 548 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Assets | ||
Cash and cash equivalents | $ 497 | $ 484 |
Accounts receivable, net | 2,063 | 2,173 |
Inventories | 4,304 | 4,108 |
Other current assets | 329 | 404 |
Total Current Assets | 7,193 | 7,169 |
Net Property, Plant and Equipment | 7,384 | 7,282 |
Goodwill | 10,862 | 10,844 |
Intangible Assets, net | 6,975 | 7,037 |
Other Assets | 1,397 | 765 |
Total Assets | 33,811 | 33,097 |
Liabilities and Shareholders' Equity | ||
Current debt | 1,947 | 2,102 |
Accounts payable | 1,916 | 1,926 |
Other current liabilities | 1,673 | 1,485 |
Total Current Liabilities | 5,536 | 5,513 |
Long-Term Debt | 9,772 | 9,830 |
Deferred Income Taxes | 2,369 | 2,356 |
Other Liabilities | 1,568 | 1,172 |
Commitments and Contingencies (Note 18) | ||
Shareholders' Equity: | ||
Capital in excess of par value | 4,354 | 4,378 |
Retained earnings | 14,178 | 13,787 |
Accumulated other comprehensive gain (loss) | (79) | (117) |
Treasury stock, at cost – 83 million shares at December 28, 2019 and 82 million shares at September 28, 2019 | (4,079) | (4,011) |
Total Tyson Shareholders’ Equity | 14,419 | 14,082 |
Noncontrolling Interests | 147 | 144 |
Total Shareholders’ Equity | 14,566 | 14,226 |
Total Liabilities and Shareholders’ Equity | 33,811 | 33,097 |
Class A [Member] | ||
Shareholders' Equity: | ||
Common stock ($0.10 par value): | 38 | 38 |
Total Tyson Shareholders’ Equity | 38 | |
Class B [Member] | ||
Shareholders' Equity: | ||
Common stock ($0.10 par value): | 7 | $ 7 |
Total Tyson Shareholders’ Equity | $ 7 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parentheticals) - $ / shares shares in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Treasury Stock, shares | 83 | 82 |
Class A [Member] | ||
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 900 | 900 |
Common stock, shares issued | 378 | 378 |
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 Statem_3
Consolidated Condensed Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Capital in Excess of Par Value: | Retained Earnings: | Accumulated Other Comprehensive Income (Loss), Net of Tax: | Treasury Stock: | Total Shareholders’ Equity Attributable to Tyson | Equity Attributable to Noncontrolling Interests: | Class A [Member] | Class B [Member] |
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Sep. 29, 2018 | $ 4,387 | $ 12,329 | $ (15) | $ (3,943) | |||||
Balance at beginning of quarter, Treasury Stock shares at Sep. 29, 2018 | 82 | ||||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 29, 2018 | $ 8 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | (55) | $ (75) | |||||||
Net income attributable to Tyson | $ 551 | 551 | |||||||
Dividends | (161) | $ (133) | $ (28) | ||||||
Other comprehensive income (loss) | (3) | (3) | |||||||
Purchase of Class A common stock, shares | 1 | 1.4 | |||||||
Purchase of Class A common stock | $ (83) | ||||||||
Stock-based compensation, shares | (1) | ||||||||
Net income attributable to noncontrolling interests | 1 | (1) | |||||||
Business combination and other | 123 | ||||||||
Balance at end of quarter, Common Stock Shares at Dec. 29, 2018 | 378 | 70 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Dec. 29, 2018 | 4,332 | 12,719 | (18) | $ (3,951) | $ 13,127 | $ 38 | $ 7 | ||
Balance at end of quarter, Treasury Stock shares at Dec. 29, 2018 | 82 | ||||||||
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Dec. 29, 2018 | 132 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance at end of quarter, Total Shareholders' Equity | 13,259 | ||||||||
Balance at end of quarter, Total Shareholders' Equity | 14,226 | ||||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Tyson at Sep. 28, 2019 | $ 14,082 | 4,378 | 13,787 | (117) | $ (4,011) | ||||
Balance at beginning of quarter, Treasury Stock shares at Sep. 28, 2019 | 82 | 82 | |||||||
Balance at beginning of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Sep. 28, 2019 | $ 144 | 144 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation | (24) | $ (64) | |||||||
Net income attributable to Tyson | 557 | 557 | |||||||
Dividends | (166) | $ (137) | $ (29) | ||||||
Other comprehensive income (loss) | 38 | 38 | |||||||
Purchase of Class A common stock, shares | 2 | 1.5 | |||||||
Purchase of Class A common stock | $ (132) | ||||||||
Stock-based compensation, shares | (1) | ||||||||
Net income attributable to noncontrolling interests | 4 | (4) | |||||||
Business combination and other | (1) | ||||||||
Balance at end of quarter, Common Stock Shares at Dec. 28, 2019 | 378 | 70 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Tyson at Dec. 28, 2019 | $ 14,419 | $ 4,354 | $ 14,178 | $ (79) | $ (4,079) | $ 14,419 | $ 38 | $ 7 | |
Balance at end of quarter, Treasury Stock shares at Dec. 28, 2019 | 83 | 83 | |||||||
Balance at end of quarter, Shareholders' Equity Attributable to Noncontrolling Interest at Dec. 28, 2019 | $ 147 | $ 147 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance at end of quarter, Total Shareholders' Equity | $ 14,566 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Cash Flows From Operating Activities: | ||
Net Income | $ 561 | $ 552 |
Depreciation and amortization | 288 | 250 |
Deferred income taxes | 3 | 18 |
Other, net | 27 | 64 |
Net changes in operating assets and liabilities | (15) | 16 |
Cash Provided by Operating Activities | 894 | 868 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (312) | (318) |
Purchases of marketable securities | (35) | (15) |
Proceeds from sale of marketable securities | 19 | 15 |
Acquisitions, net of cash acquired | 0 | (2,141) |
Proceeds from sale of business | 29 | 0 |
Other, net | (82) | 10 |
Cash Used for Investing Activities | (381) | (2,449) |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of debt | 38 | 1,807 |
Repayments of Debt and Lease Obligation | 31 | 12 |
Borrowings on revolving credit facility | 180 | 0 |
Repayments of Long-term Lines of Credit | 250 | 0 |
Proceeds from issuance of commercial paper | 4,675 | 5,538 |
Repayments of commercial paper | (4,855) | (5,406) |
Purchases of Tyson Class A common stock | (132) | (83) |
Dividends | (150) | (134) |
Stock options exercised | 20 | 3 |
Other, net | (2) | (2) |
Cash (Used for) Provided by Financing Activities | (507) | 1,711 |
Effect of Exchange Rate Changes on Cash | 7 | 0 |
Increase in Cash and Cash Equivalents | 13 | 130 |
Cash and Cash Equivalents at Beginning of Year | 484 | 270 |
Cash and Cash Equivalents at End of Period | $ 497 | $ 400 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 . 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 December 28, 2019 , and the results of operations for the three months ended December 28, 2019 , and December 29, 2018 . 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. Leases We determine if an agreement is or contains a lease at its inception by evaluating if an identified asset exists that we control for a period of time. When a lease exists, we classify it as a finance or operating lease and record a right-of-use ("ROU") asset and a corresponding lease liability at lease commencement. We have elected to not record leases with a term of 12 months or less in our Consolidated Condensed Balance Sheets, and accordingly, lease expense for these short-term leases is recognized on a straight-line basis over the lease term. Finance lease assets are presented within Net Property, Plant and Equipment and finance lease liabilities are presented within Current and Long-Term Debt in our Consolidated Condensed Balance Sheets. Finance lease disclosures are omitted as they are deemed immaterial. Operating ROU assets are presented within Other Assets, and operating lease liabilities are recorded within Other current liabilities and Other Liabilities in our Consolidated Condensed Balance Sheets. Lease assets are subject to review for impairment in a manner consistent with Property, Plant and Equipment. ROU assets are presented in our Consolidated Condensed Balance Sheets based on the present value of the corresponding liabilities and are adjusted for any prepayments, lease incentives received or initial direct costs incurred. The measurement of our ROU assets and liabilities includes all fixed payments and any variable payments based on an index or rate. Variable lease payments which do not depend on an index, or where rates are unknown, are excluded from lease payments in the measurement of the ROU asset and lease liability, and accordingly, are recognized as lease expense in the period the obligation for those payments is incurred. The present value of lease payments is based on our incremental borrowing rate according to the lease term and information available at the lease commencement date, as our lease arrangements generally do not provide an implicit interest rate. The incremental borrowing rate is derived using a hypothetically-collateralized borrowing cost, based on our revolving credit facility, plus a country risk factor, where applicable. We consider our credit rating and the current economic environment in determining the collateralized rate. Our lease arrangements can include fixed or variable non-lease components, such as common area maintenance, taxes and labor. We account for each lease and any non-lease components associated with that lease as a single lease component for all asset classes, except production and livestock grower asset classes embedded in service and supply agreements, and other asset classes that include significant maintenance or service components. We account for lease and non-lease components of an agreement separately based on relative stand-alone prices either observable or estimated if observable prices are not readily available. For asset classes where an election was made not to separate lease and non-lease components, all costs associated with a lease contract are disclosed as lease costs. The accounting for some of the Company's leases may require significant judgment when determining whether a contract is or contains a lease, the lease term, and the likelihood of exercising renewal or termination options. Our leases can include options to extend or terminate use of the underlying assets. These options are included in the lease term used to determine ROU assets and corresponding liabilities when we are reasonably certain we will exercise the option. Additionally, certain leases can have residual value guarantees, which are included within our operating lease liabilities when considered probable. Our lease agreements do not include significant restrictions or covenants. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. Operating lease expense is recognized on a straight-line basis over the lease term, whereas the amortization of finance lease assets is recognized on a straight-line basis over the shorter of the estimated useful life of the underlying asset or the lease term. Operating lease expense and finance lease amortization are presented in Cost of Sales or Selling, General and Administrative in our Consolidated Condensed Statements of Income depending on the nature of the leased item. Interest expense on finance lease obligations is recorded over the lease term and is presented in Interest expense, based on the effective interest method. All operating lease cash payments and interest on finance leases are presented within Net cash provided by operating activities and all finance lease principal payments are presented within Net cash used in financing activities in our Consolidated Condensed Statements of Cash Flows. Recently Issued Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued guidance that simplifies the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and clarifies other general principles by adding certain requirements to Topic 740. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2020, our fiscal 2022. Early adoption is permitted for periods for which financial statements have not yet been issued , beginning our fiscal 2020. An entity that elects to early ad opt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The application of the guidance requires various transition methods depending on the specific amendment. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In June 2016, the FASB issued guidance that provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. Early adoption is permitted for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. The application of the guidance requires various transition methods depending on the specific amendment. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements. Changes in Accounting Principles In August 2017, the FASB issued guidance that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components excluded from the assessment. Some of the modifications included the ineffectiveness of derivative gain/loss in highly effective cash flow hedges to be recorded in Other Comprehensive Income, alignment of the recognition and presentation of the effects related to the hedging instrument and hedged item in the financial statements, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging on financial statement lines for components excluded from the assessment. The amendment also simplified the application of hedge accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. We adopted this guidance in the first quarter of fiscal 2020 using the modified retrospective transition approach, and it did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued guidance that created new accounting and reporting guidelines for leasing arrangements. The guidance requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The guidance also requires qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. We adopted this guidance in the first quarter of fiscal 2020 using the optional transition method that allows for a cumulative-effect adjustment in the period of adoption with no restatement of prior periods. We have elected the package of practical expedients available under the transition guidance which allows us to not reassess prior conclusions related to lease classifications, existing contracts containing leases, and initial direct costs, as well as the practical expedient that allows the continued historical treatment of land easements. We did not elect the practical expedient for the use of hindsight in evaluating the expected lease term of existing leases. The adoption resulted in the recording of operating lease assets and operating lease liabilities of $549 million and $546 million , respectively, as of September 29, 2019, with no changes to our finance leases. The difference between the additional lease assets and lease liabilities, represents existing deferred rent and prepaid lease balances that were reclassified on the balance sheet. The adoption did not have a material impact on our Consolidated Condensed Statements of Income or our Consolidated Condensed Statements of Cash Flows. For further description of our lease policy refer to the Leases section above, and for quantitative lease information refer to Part I, Item 1, Notes to Consolidated Condensed Financial Statements, Note 5: Leases. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | ACQUISITIONS On June 3, 2019, we acquired the Thai and European operations of BRF S.A. ("Thai and European operations") for $326 million , net of cash acquired, subject to certain adjustments, as a part of our growth strategy to expand offerings of value-added protein in global markets. Its results, subsequent to the acquisition closing, are included in International/Other for segment presentation. Certain estimated values for the acquisition, including goodwill, intangible assets, property, plant and equipment, noncontrolling interest, and deferred income taxes are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. The preliminary purchase price allocation includes $297 million of net working capital, including $56 million of cash acquired, $93 million of Property, Plant and Equipment, $10 million of Goodwill, $23 million of Intangible Assets, $24 million of Other Liabilities, $10 million of Deferred Income Taxes and $7 million of Noncontrolling Interest. Intangible Assets included customer relationships which will be amortized over a life of 7 years. We do not expect the goodwill to be deductible for income tax purposes. During the first quarter of fiscal 2020, we recorded measurement period adjustments which increased Goodwill by $9 million , including a reduction to net working capital of $10 million and a decrease in Deferred Income Taxes of $1 million . On November 30, 2018, we acquired all of the outstanding common stock of MFG (USA) Holdings, Inc. and McKey Luxembourg Holdings S.à.r.l. (“Keystone Foods”) from Marfrig Global Foods ("Marfrig") for $2.3 billion in cash, subject to certain adjustments. The acquisition was accounted for using the acquisition method of accounting, and the results of Keystone Foods' domestic and international results, subsequent to the acquisition closing, are included in our Chicken segment and International/Other, respectively. The following table summarizes the purchase price allocation for Keystone Foods and fair values of the assets acquired and liabilities assumed at the acquisition date. in millions Cash and cash equivalents $ 186 Accounts receivable 106 Inventories 257 Other current assets 34 Property, Plant and Equipment 676 Goodwill 1,120 Intangible Assets 659 Other Assets 28 Current debt (73 ) Accounts payable (208 ) Other current liabilities (99 ) Long-Term Debt (113 ) Deferred Income Taxes (177 ) Other Liabilities (8 ) Noncontrolling Interests (122 ) Net assets acquired $ 2,266 The fair value of identifiable intangible assets primarily consisted of customer relationships with a weighted average life of 25 years. As a result of the acquisition, we recognized a total of $1,120 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. We allocated goodwill to our segments using the acquisition method approach. This resulted in $779 million and $341 million of goodwill allocated to our Chicken segment and International/Other, respectively. We do not expect the goodwill to be deductible for income tax purposes. We used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow, relief-from-royalty, market pricing multiple and multi-period excess earnings valuation approaches, 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, EBITDA multiples, and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. In January 2020, we acquired a 40% minority interest in a vertically-integrated Brazilian poultry producer for $122 million . We will account for this investment under the equity method. |
Inventories
Inventories | 3 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Processed products, livestock and supplies and other are valued at the lower of cost or net realizable value. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, livestock grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories. At December 28, 2019 , the cost of inventories was determined by either the first-in, first-out ("FIFO") method or the weighted-average method, which is consistent with the methods used at September 28, 2019 . The following table reflects the major components of inventory (in millions): December 28, 2019 September 28, 2019 Processed products $ 2,464 $ 2,362 Livestock 1,206 1,150 Supplies and other 634 596 Total inventory $ 4,304 $ 4,108 |
Property, Plant And Equipment
Property, Plant And Equipment | 3 Months Ended |
Dec. 28, 2019 | |
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): December 28, 2019 September 28, 2019 Land $ 199 $ 198 Buildings and leasehold improvements 4,768 4,747 Machinery and equipment 8,692 8,607 Land improvements and other 392 385 Buildings and equipment under construction 857 713 14,908 14,650 Less accumulated depreciation 7,524 7,368 Net property, plant and equipment $ 7,384 $ 7,282 |
Restructuring and Related Charg
Restructuring and Related Charges | 3 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Charges | RESTRUCTURING AND RELATED CHARGES In the first quarter of fiscal 2020, the Company approved a restructuring program (the "2020 Program"), which is expected to contribute to the Company’s overall strategy of financial fitness through the elimination of overhead and consolidation of certain enterprise functions. This resulted in a $44 million pretax charge consisting of severance and employee related costs. As part of the 2020 Program, we estimate the elimination of approximately 500 positions across several areas and job levels, with most of the eliminated positions originating from the corporate offices in Springdale, Arkansas and Chicago, Illinois. We do not anticipate future costs of the 2020 Program to be significant. In the fourth quarter of fiscal 2017, our Board of Directors approved a multi-year restructuring program (the “2017 Program”), which is expected to contribute to the Company’s overall strategy of financial fitness through increased operational effectiveness and overhead reduction. The 2017 Program is expected to result in cumulative pretax charges of approximately $280 million which consist primarily of severance and employee related costs, impairments and accelerated depreciation of technology assets, incremental costs to implement new technology, and contract termination costs. Through December 28, 2019 , $258 million of the estimated $280 million total pretax charges has been recognized. The remaining estimated charges relate to incremental costs to implement new technology. We recognized restructuring and related charges of $52 million for the three months ended December 28, 2019 , consisting of $44 million of severance and employee related costs from the 2020 Program and $8 million of technology related costs from the 2017 Program. We recorded $9 million in Cost of Sales from the 2020 Program, and we recorded $43 million in Selling, General and Administrative in our Consolidated Condensed Statements of Income, of which $35 million is related to the 2020 program and $8 million is related to the 2017 Program. For the three months ended December 29, 2018 , we recognized $8 million of restructuring and related charges from the 2017 Program which were recorded in Selling, General and Administrative in our Consolidated Condensed Statements of Income and represent incremental costs to implement new technology and accelerated depreciation of technology assets. The following table reflects the pretax impact of restructuring and related charges incurred in the first quarter of fiscal 2020, the charges to date and the total estimated charges, by reportable segment (in millions): Three Months Ended Restructuring and related charges to date December 28, 2019 December 28, 2019 Total estimated Restructuring and related charges Beef $ 5 $ 18 $ 18 Pork 2 7 7 Chicken 21 128 139 Prepared Foods 22 146 157 Other 2 3 3 Total restructuring and related charges, pretax $ 52 $ 302 $ 324 The total estimated restructuring charges include $22 million of estimated charges from the 2017 Program yet to be incurred and represent incremental costs to implement new technology in our Prepared Foods and Chicken segments. The timing and actual amounts of the estimated charges may change. Our restructuring liability was $42 million at December 28, 2019 and we had no restructuring liability at September 28, 2019 . The change in the restructuring liability was due to additional charges of $52 million , net of $10 million in payments, during the three months ended December 28, 2019 . |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Dec. 28, 2019 | |
Other Liabilities, Current [Abstract] | |
Other Current Liabilities | OTHER CURRENT LIABILITIES Other current liabilities are as follows (in millions): December 28, 2019 September 28, 2019 Accrued salaries, wages and benefits $ 551 $ 620 Other 1,122 865 Total other current liabilities $ 1,673 $ 1,485 |
Debt
Debt | 3 Months Ended |
Dec. 28, 2019 | |
Debt Instruments [Abstract] | |
Debt | DEBT The major components of debt are as follows (in millions): December 28, 2019 September 28, 2019 Revolving credit facility $ — $ 70 Commercial paper 819 1,000 Senior notes: Notes due June 2020 (2.46% at 12/28/2019) 350 350 Notes due August 2020 (2.34% at 12/28/2019) 400 400 4.10% Notes due September 2020 279 280 2.25% Notes due August 2021 500 500 4.50% Senior notes due June 2022 1,000 1,000 3.90% Senior notes due September 2023 400 400 3.95% Notes due August 2024 1,250 1,250 4.00% Notes due March 2026 ("2026 Notes") 800 800 3.55% Notes due June 2027 1,350 1,350 7.00% Notes due January 2028 18 18 4.35% Notes due March 2029 ("2029 Notes") 1,000 1,000 6.13% Notes due November 2032 160 161 4.88% Notes due August 2034 500 500 5.15% Notes due August 2044 500 500 4.55% Notes due June 2047 750 750 5.10% Notes due September 2048 ("2048 Notes") 1,500 1,500 Discount on senior notes (47 ) (48 ) Other 253 216 Unamortized debt issuance costs (63 ) (65 ) Total debt 11,719 11,932 Less current debt 1,947 2,102 Total long-term debt $ 9,772 $ 9,830 Revolving Credit Facility and Letters of Credit We have a $1.75 billion revolving credit facility that supports short-term funding needs and serves as a backstop to our commercial paper program which will mature and the commitments thereunder will terminate in March 2023. Amounts available for borrowing under this facility totaled $1.75 billion at December 28, 2019 , before deducting amounts to backstop our commercial paper program. At December 28, 2019 , we had no outstanding borrowings and no outstanding letters of credit issued under this facility. At December 28, 2019 , we had $99 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 leasing and workers’ compensation insurance programs and other legal obligations. In the future, if any of our subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall be required to guarantee the indebtedness, obligations and liabilities under this facility. Commercial Paper Program We have a commercial paper program under which we may issue unsecured short-term promissory notes ("commercial paper") up to an aggregate maximum principal amount of $1 billion as of December 28, 2019 . As of December 28, 2019 , we had $819 million of commercial paper outstanding at a weighted average interest rate of 2.01% with maturities of less than 50 days . Debt Covenants Our revolving credit facility contains 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 December 28, 2019 . |
Equity
Equity | 3 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Share Repurchases As of December 28, 2019 , 19.5 million shares remained available for repurchase under our share repurchase 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 share repurchases of our Class A stock is as follows (in millions): Three Months Ended December 28, 2019 December 29, 2018 Shares Dollars Shares Dollars Shares repurchased: Under share repurchase program 1.1 $ 100 0.9 $ 50 To fund certain obligations under equity compensation plans 0.4 32 0.5 33 Total share repurchases 1.5 $ 132 1.4 $ 83 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rate was 22.7% and 22.6% for the first quarter of fiscal 2020 and 2019, respectively. The effective tax rates for the first quarter of fiscal 2020 and 2019 were higher than the federal statutory tax rate primarily due to state taxes, partially offset by various tax benefits. Unrecognized tax benefits were $169 million at December 28, 2019 and September 28, 2019 . We do not expect material changes to our unrecognized tax benefits during the next twelve months. |
Other Income And Charges
Other Income And Charges | 3 Months Ended |
Dec. 29, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income And Charges | OTHER INCOME AND CHARGES During the first quarter of fiscal 2019 , we recognized $17 million |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 28, 2019 | |
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 December 28, 2019 December 29, 2018 Numerator: Net income $ 561 $ 552 Less: Net income attributable to noncontrolling interests 4 1 Net income attributable to Tyson 557 551 Less dividends declared: Class A 137 133 Class B 29 28 Undistributed earnings $ 391 $ 390 Class A undistributed earnings $ 322 $ 321 Class B undistributed earnings 69 69 Total undistributed earnings $ 391 $ 390 Denominator: Denominator for basic earnings per share: Class A weighted average shares 293 294 Class B weighted average shares, and shares under the if-converted method for diluted earnings per share 70 70 Effect of dilutive securities: Stock options, restricted stock and performance units 4 2 Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions 367 366 Net income per share attributable to Tyson: Class A basic $ 1.56 $ 1.54 Class B basic $ 1.40 $ 1.39 Diluted $ 1.52 $ 1.50 Dividends Declared Per Share: Class A $ 0.465 $ 0.450 Class B $ 0.419 $ 0.405 Approximately 2 million and 4 million of our stock-based compensation shares were antidilutive for the three months ended December 28, 2019 and December 29, 2018 , respectively. 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 | 3 Months Ended |
Dec. 28, 2019 | |
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 to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. 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 December 28, 2019 . We had the following aggregated outstanding notional amounts related to our derivative financial instruments: in millions, except soy meal tons Metric December 28, 2019 September 28, 2019 Commodity: Corn Bushels 115 111 Soy Meal Tons 1,281,300 1,078,800 Live Cattle Pounds 5 14 Lean Hogs Pounds 199 309 Foreign Currency United States dollar $ 364 $ 148 Interest Rate Swaps Average monthly debt $ 400 $ 400 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. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged (e.g., cash flow hedge or fair value hedge). We designate certain forward contracts as follows: • Cash Flow Hedges – include certain commodity forward and option contracts of forecasted purchases (e.g., grains), interest rate swaps and locks, and certain foreign exchange forward contracts. • Fair Value Hedges – include certain commodity forward contracts of firm commitments (e.g., livestock). Cash Flow Hedges Derivative instruments are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes as well as interest rates related to our variable rate debt. 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 other comprehensive income ("OCI") and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. As of December 28, 2019 , we have net pretax losses of $6 million for our commodity contracts and net pretax losses of $3 million for our interest rate swap hedges, expected to be reclassified into earnings within the next 12 months. Additionally, we have $18 million of realized losses related to treasury rate locks in connection with our 364-day term loan extinguished during the second quarter of fiscal 2019, which will be reclassified to earnings over the lives of the 2026, 2029 and 2048 Notes. During the three months ended December 28, 2019 , and December 29, 2018 , we did not reclassify significant pretax gains or losses into earnings as a result of the discontinuance of cash flow hedges. The following table sets forth the pretax impact of cash flow hedge derivative instruments recognized in Other Comprehensive Income (in millions): Gain (Loss) Recognized in OCI On Derivatives Three Months Ended December 28, 2019 December 29, 2018 Cash flow hedge – derivatives designated as hedging instruments: Commodity contracts $ — $ (2 ) Interest rate hedges — (18 ) Total $ — $ (20 ) Fair Value Hedges We designate certain derivative contracts as fair value hedges of firm commitments to purchase livestock for harvest. 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. 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 (e.g., livestock purchase firm commitments) in the same line item, Cost of Sales, as the offsetting gain or loss on the related livestock forward position. Ineffectiveness related to fair value hedges was insignificant for the three months ended December 28, 2019 , and December 29, 2018 . The carrying amount of fair value hedge assets (liabilities) as of December 28, 2019 and September 28, 2019 were as follows (in millions): Consolidated Condensed Balance Sheets Classification December 28, 2019 September 28, 2019 Inventory $ (1 ) $ (19 ) Undesignated Positions In addition to our designated positions, we also hold derivative 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. Reclassification to Earnings The following table sets forth the total amounts of each income and expense line item presented in the Consolidated Condensed Statements of Income in which the effects of hedges are recorded (in millions): Consolidated Condensed Three Months Ended December 28, 2019 December 29, 2018 Cost of Sales $ 9,375 $ 8,838 Interest Expense 120 99 Other Income/(Expense) (16 ) (3 ) The following table sets forth the pretax impact of the cash flow, fair value and undesignated derivative instruments in the Consolidated Condensed Statements of Income (in millions): Consolidated Condensed Three Months Ended December 28, 2019 December 29, 2018 Sales Gain (Loss) on derivatives not designated as hedging instruments: Commodity contracts $ — $ 1 Cost of Sales Gain (Loss) on cash flow hedges reclassified from OCI to Earnings: Commodity contracts $ (2 ) $ (7 ) Gain (Loss) on fair value hedges: Commodity contracts 16 (1 ) Hedged item (16 ) 1 Gain (Loss) on derivatives not designated as hedging instruments: Commodity contracts 29 3 Total $ 27 $ (4 ) Interest Expense Gain (Loss) on cash flow hedges reclassified from OCI to Earnings: Interest rate contracts $ (1 ) $ — Other Income/(Expense) Gain (Loss) on derivatives not designated as hedging instruments: Foreign exchange contracts $ 4 $ — The fair value of all outstanding derivative instruments in the Consolidated Condensed Balance Sheets are included in Note 14: Fair Value Measurements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 28, 2019 | |
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): December 28, 2019 Level 1 Level 2 Level 3 Netting (a) Total Other Current Assets: Derivative financial instruments: Designated as hedges $ — $ 11 $ — $ (2 ) $ 9 Undesignated — 67 — (15 ) 52 Available-for-sale securities: Current — — 1 — 1 Other Assets: Available-for-sale securities: Non-current — 54 48 — 102 Deferred compensation assets 10 339 — — 349 Total assets $ 10 $ 471 $ 49 $ (17 ) $ 513 Other Current Liabilities: Derivative financial instruments: Designated as hedges $ — $ 14 $ — $ (11 ) $ 3 Undesignated — 45 — (43 ) 2 Total liabilities $ — $ 59 $ — $ (54 ) $ 5 September 28, 2019 Level 1 Level 2 Level 3 Netting (a) Total Other Current Assets: Derivative financial instruments: Designated as hedges $ — $ 26 $ — $ (3 ) $ 23 Undesignated — 58 — (5 ) 53 Available-for-sale securities: Current — — 1 — 1 Other Assets: Available-for-sale securities: Non-current — 51 51 — 102 Deferred compensation assets 7 311 — — 318 Total assets $ 7 $ 446 $ 52 $ (8 ) $ 497 Other Current Liabilities: Derivative financial instruments: Designated as hedges $ — $ 17 $ — $ (13 ) $ 4 Undesignated — 93 — (90 ) 3 Total liabilities $ — $ 110 $ — $ (103 ) $ 7 (a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at December 28, 2019 , and September 28, 2019 , we had $37 million and $95 million , respectively, of net cash collateral with various counterparties where master netting arrangements exist. The following table provides a reconciliation between the beginning and ending balance of marketable debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): Three Months Ended December 28, 2019 December 29, 2018 Balance at beginning of year $ 52 $ 51 Total realized and unrealized gains (losses): Included in earnings — — Included in other comprehensive income (loss) — — Purchases 3 7 Issuances — — Settlements (6 ) (6 ) Balance at end of period $ 49 $ 52 Total gains (losses) for the three-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 derivative financial instruments primarily include exchange-traded and over-the-counter contracts which are further described in Note 13: Derivative Financial Instruments. We record our derivative financial instruments at fair value using quoted market prices, adjusted where necessary for credit and non-performance risk and internal models that use readily observable market inputs as their basis, including current and forward market prices and rates. 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. 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 32 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): December 28, 2019 September 28, 2019 Amortized Fair Unrealized Amortized Fair Unrealized Available-for-sale securities: Debt securities: U.S. treasury and agency $ 54 $ 54 $ — $ 51 $ 51 $ — Corporate and asset-backed 48 49 1 51 52 1 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 will more likely than not 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 and no other than temporary losses in OCI for the three months ended December 28, 2019 , and December 29, 2018 . 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 months ended December 28, 2019 , and December 29, 2018 . 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): December 28, 2019 September 28, 2019 Fair Value Carrying Value Fair Value Carrying Value Total debt $ 12,869 $ 11,719 $ 12,978 $ 11,932 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 3 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The components of the net periodic cost for the pension and postretirement benefit plans for the three months ended December 28, 2019 , and December 29, 2018 , are as follows (in millions): Pension Plans Three Months Ended December 28, 2019 December 29, 2018 Service cost $ — $ 1 Interest cost 10 16 Expected return on plan assets (9 ) (14 ) Amortization of: Net actuarial loss 1 — Prior service cost — — Settlement loss — 19 Net periodic cost $ 2 $ 22 Postretirement Benefit Plans Three Months Ended December 28, 2019 December 29, 2018 Interest cost $ — $ — Amortization of prior service cost (credit) — (4 ) Net periodic cost (credit) $ — $ (4 ) Net periodic benefit cost, excluding the service cost component, was recorded in the Consolidated Condensed Statements of Income in Other, net. We contributed $1 million and $3 million to our pension plans for the three months ended December 28, 2019 and December 29, 2018 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 28, 2019 | |
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 December 28, 2019 December 29, 2018 Before Tax Tax After Tax Before Tax Tax After Tax Derivatives accounted for as cash flow hedges: (Gain) loss reclassified to interest expense $ 1 $ — $ 1 $ — $ — $ — (Gain) loss reclassified to cost of sales 2 — 2 7 (2 ) 5 Unrealized gain (loss) — — — (20 ) 6 (14 ) Investments: Unrealized gain (loss) — — — 1 — 1 Currency translation: Translation adjustment 35 — 35 9 (1 ) 8 Translation loss reclassified to cost of sales — — — — — — Postretirement benefits: Unrealized gain (loss) — — — (28 ) 8 (20 ) Pension settlement reclassified to other (income) expense — — — 23 (6 ) 17 Total other comprehensive income (loss) $ 38 $ — $ 38 $ (8 ) $ 5 $ (3 ) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING We operate in four reportable segments: Beef, Pork, Chicken, and Prepared Foods. We measure segment profit as operating income (loss). International/Other primarily includes our foreign operations in Australia, China, South Korea, Malaysia, Mexico, the Netherlands, Thailand and the United Kingdom, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC. Beef: Beef includes our operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to consumer products and 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 consumer products and 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. Chicken: Chicken includes our domestic operations related to raising and processing live chickens into, and purchasing raw materials for, fresh, frozen and value-added chicken products, as well as sales from allied products. Our value-added chicken products primarily include breaded chicken strips, nuggets, patties, tenders, wings and other ready-to-fix or fully cooked chicken parts. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, 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. 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. This segment includes brands such as Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, State Fair®, as well as artisanal brands Aidells®, and Gallo Salame®. Products primarily include ready-to-eat sandwiches, sandwich components such as flame-grilled hamburgers and Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to consumer products and food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets. We allocate expenses related to corporate activities to the segments, except for third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC, which are included in International/Other. Intersegment transactions, which were at market prices, are included in the segment sales in the table below. Information on segments and a reconciliation to income before income taxes are as follows (in millions): Three Months Ended December 28, 2019 December 29, 2018 Sales: Beef $ 3,838 $ 3,926 Pork 1,379 1,179 Chicken 3,292 3,115 Prepared Foods 2,140 2,149 International/Other 498 143 Intersegment (332 ) (319 ) Total sales $ 10,815 $ 10,193 Three Months Ended December 28, 2019 December 29, 2018 Operating income (loss): Beef $ 410 $ 305 Pork 191 95 Chicken 57 160 (a) Prepared Foods 158 265 International/Other 10 (b) (18 ) (b) Total operating income 826 807 Total other expense 101 94 Income before income taxes $ 725 $ 713 (a) Chicken operating income included $8 million in Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018 . (b) International/Other operating results included $18 million in Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018 , and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $4 million for each of the three months ended December 28, 2019 , and December 29, 2018 . The following tables further disaggregate our sales to customers by major distribution channels (in millions): Three Months Ended December 28, 2019 Consumer Products (a) Foodservice (b) International (c) Industrial and Other (d) Intersegment Total Beef $ 1,857 $ 1,045 $ 514 $ 326 $ 96 $ 3,838 Pork 400 117 280 360 222 1,379 Chicken 1,389 1,307 161 421 14 3,292 Prepared Foods 1,211 846 37 46 — 2,140 International/Other — — 498 — — 498 Intersegment — — — — (332 ) (332 ) Total $ 4,857 $ 3,315 $ 1,490 $ 1,153 $ — $ 10,815 Three Months Ended December 29, 2018 Consumer Products (a) Foodservice (b) International (c) Industrial and Other (d) Intersegment Total Beef $ 1,851 $ 1,017 $ 628 $ 340 $ 90 $ 3,926 Pork 337 91 225 311 215 1,179 Chicken 1,372 1,130 157 442 14 3,115 Prepared Foods 1,275 789 24 61 — 2,149 Other — — 143 — — 143 Intersegment — — — — (319 ) (319 ) Total $ 4,835 $ 3,027 $ 1,177 $ 1,154 $ — $ 10,193 (a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. (c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Commitments We guarantee obligations of certain outside third parties, consisting primarily of grower loans, which are substantially collateralized by the underlying assets. The remaining terms of the underlying obligations cover periods up to 10 years, and the maximum potential amount of future payments as of December 28, 2019 , was no t significant. Additionally, the maximum potential amount of lease related residual value guarantees is $70 million , all of which 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 December 28, 2019 , and September 28, 2019 , no significant 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 commitment associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets. The potential maximum commitment as of December 28, 2019 was approximately $315 million . The total receivables under these programs were $9 million and $5 million at December 28, 2019 and September 28, 2019 , 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 December 28, 2019 , and September 28, 2019 . When constructing new facilities or making major enhancements to existing facilities, we will occasionally enter into incentive agreements with local government agencies in order to reduce certain state and local tax expenditures. Under these agreements, we transfer the related assets to various local government entities and receive Industrial Revenue Bonds. We immediately lease the facilities from the local government entities and have an option to re-purchase the facilities for a nominal amount upon tendering the Industrial Revenue Bonds to the local government entities at various predetermined dates. The Industrial Revenue Bonds and the associated obligations for the leases of the facilities offset, and the underlying assets remain in property, plant and equipment. At December 28, 2019 , the total amount under these types of arrangements totaled $752 million . 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 in the Company's Consolidated Financial Statements for matters to the extent that we conclude a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Additionally, for matters in which losses are reasonably possible, no reasonable estimate of the possible loss or range of loss in excess of amounts accrued, if any, can be made because, among other reasons: (i) the proceedings are in preliminary stages; (ii) specific damages have not been sought; (iii) damage claims are unsupported and/or unreasonable; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; or (vi) novel legal issues or unsettled legal theories are being asserted. In our opinion, we have made appropriate and adequate accruals for these matters. While these accruals reflect the Company’s best estimate of the probable loss for those matters as of the dates of those accruals, the recorded amounts may differ materially from the actual amount of the losses for those matters. 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 Financial Statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters. On September 2, 2016, Maplevale Farms, Inc., acting on its own behalf and a putative class of direct purchasers of poultry products, filed a class action complaint against us and certain of our poultry subsidiaries, as well as several other poultry processing companies, in the Northern District of Illinois. Subsequent to the filing of this initial complaint, additional lawsuits making similar claims on behalf of putative classes of direct and indirect purchasers were filed in the United States District Court for the Northern District of Illinois. The court consolidated the complaints, for pre-trial purposes, into actions on behalf of three different putative classes: direct purchasers, indirect purchasers/consumers and commercial/institutional indirect purchasers. The consolidated actions are styled In re Broiler Chicken Antitrust Litigation . Since the original filing, certain putative class members have opted out of the matter and are proceeding with individual direct actions making similar claims, and others may do so in the future. All opt out complaints have been filed in, or transferred to, the Northern District of Illinois and are proceeding on a coordinated pre-trial basis with the consolidated actions. The operative complaints, which have been amended throughout the litigation, allege, among other things, that beginning in January 2008 the defendants conspired and combined to fix, raise, maintain, and stabilize the price of broiler chickens in violation of United States antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs also allege that defendants “manipulated and artificially inflated a widely used Broiler price index, the Georgia Dock.” The plaintiffs further allege that the defendants concealed this conduct from the plaintiffs and the members of the putative classes. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees on behalf of the putative classes. Decisions on class certification and summary judgment motions likely to be filed by defendants are currently expected in late calendar year 2020 and 2021. If necessary, trial will occur after rulings on class certification and any summary judgment motions in calendar year 2022. On April 26, 2019, the plaintiffs notified us that the U.S. Department of Justice (“DOJ”) Antitrust Division issued a grand jury subpoena to them requesting discovery produced by all parties in the civil case. On June 21, 2019, the DOJ filed a motion to intervene and sought a limited stay of discovery in the civil action, which the court granted in part. Subsequently, we received a grand jury subpoena from the DOJ seeking additional documents and information related to the chicken industry. We are fully cooperating with the DOJ’s request. On October 16, 2019, the court extended the limited stay of discovery in the civil action through June 27, 2020, and on December 18, 2019, the court shortened the stay until March 31, 2020. The Commonwealth of Puerto Rico, on behalf of its citizens, has also initiated a civil lawsuit against us, certain of our subsidiaries, and several other poultry processing companies alleging activities in violation of the Puerto Rican antitrust laws. This lawsuit has been transferred to the Northern District of Illinois for coordinated pre-trial proceedings. On March 1, 2017, we received a civil investigative demand (“CID”) from the Office of the Attorney General, Department of Legal Affairs, of the State of Florida. The CID requests information primarily related to possible anticompetitive conduct in connection with the Georgia Dock, a chicken products pricing index formerly published by the Georgia Department of Agriculture. We have been cooperating with the Attorney General’s office. In July 2019, the Attorney General issued a subpoena to the In re Broiler Chicken Antitrust Litigation plaintiffs requesting all information provided to the DOJ. On August 18, 2019, we were advised that the In re Broiler Chicken Antitrust Litigation plaintiffs had received a CID from the Louisiana Department of Justice Office of the Attorney General Public Protection Division. The Louisiana CID requests all deposition transcripts related to the In re Broiler Chicken Antitrust Litigation . On June 18, 2018, a group of plaintiffs acting on their own behalf and on behalf of a putative class of all persons and entities who indirectly purchased pork, filed a class action complaint against us and certain of our pork subsidiaries, as well as several other pork processing companies, in the United States District Court for the District of Minnesota. Subsequent to the filing of the initial complaint, additional lawsuits making similar claims on behalf of putative classes of direct and indirect purchasers were also filed in the same court. The court consolidated the complaints, for pre-trial purposes, into actions on behalf of three different putative classes: direct purchasers, indirect purchasers/consumers and commercial/institutional indirect purchasers. The consolidated actions are styled In re Pork Antitrust Litigation . Since the original filing, a putative class member is proceeding with an individual direct action making similar claims, and others may do so in the future. The individual complaint has been filed in the District of Minnesota and is proceeding on a coordinated pre-trial basis with the consolidated actions. The complaints allege, among other things, that beginning in January 2009 the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork and pork products in violation of United States antitrust laws. The complaints on behalf of the putative classes of indirect purchasers also include causes of action under various state unfair competition laws, consumer protection laws, and unjust enrichment common laws. The plaintiffs seek treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees on behalf of the putative classes. On August 8, 2019, this matter was dismissed without prejudice. The plaintiffs filed amended complaints on November 6, 2019, in which the plaintiffs again have alleged that the defendants conspired and combined to fix, raise, maintain, and stabilize the price of pork and pork products in violation of state and federal antitrust, consumer protection, and unjust enrichment common laws, and the plaintiffs again are seeking treble damages, injunctive relief, pre- and post-judgment interest, costs, and attorneys’ fees on behalf of the putative classes. The Commonwealth of Puerto Rico, on behalf of its citizens, has also initiated a civil lawsuit against us, certain of our subsidiaries, and several other pork processing companies alleging activities in violation of the Puerto Rican antitrust laws. This lawsuit was transferred to the District of Minnesota and an amended complaint was filed on December 6, 2019. On January 15, 2020, we moved to dismiss the amended complaints. On April 23, 2019, a group of plaintiffs, acting on behalf of themselves and on behalf of a putative class of all persons and entities who directly sold to the named defendants any fed cattle for slaughter and all persons who transacted in live cattle futures and/or options traded on the Chicago Mercantile Exchange or another U.S. exchange, filed a class action complaint against us and our beef and pork subsidiary, Tyson Fresh Meats, Inc., as well as other beef packer defendants, in the United States District Court for the Northern District of Illinois. The plaintiffs allege that the defendants engaged in a conspiracy from January 2015 to the present to reduce fed cattle prices in violation of federal antitrust laws, the Grain Inspection, Packers and Stockyards Act of 1921, and the Commodities Exchange Act by periodically reducing their slaughter volumes so as to reduce demand for fed cattle, curtailing their purchases and slaughters of cash-purchased cattle during those same periods, coordinating their procurement practices for fed cattle settled on a cash basis, importing foreign cattle at a loss so as to reduce domestic demand, and closing and idling plants. In addition, the plaintiffs also allege the defendants colluded to manipulate live cattle futures and options traded on the Chicago Mercantile Exchange. The plaintiffs seek, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief. This complaint was subsequently voluntarily dismissed and re-filed in the United States District Court for the District of Minnesota. Other similar lawsuits were filed by ranchers in other district courts. All actions seeking relief by ranchers and futures traders have now been transferred to the United States District Court for the District of Minnesota action and are consolidated for pre-trial proceedings as In Re Cattle Antitrust Litigation . Following the filing of defendants’ motion to dismiss this matter, the plaintiffs filed a second amended complaint on October 4, 2019. We have moved to dismiss the second amended complaint. On April 26, 2019, a group of plaintiffs, acting on behalf of themselves and on behalf of a putative class of indirect purchasers of beef for personal use filed a class action complaint against us, other beef packers, and Agri Stats, Inc., an information services provider, in the United States District Court for the District of Minnesota. The plaintiffs allege that the packer defendants conspired to reduce slaughter capacity by closing or idling plants, limiting their purchases of cash cattle, coordinating their procurement of cash cattle, and reducing their slaughter numbers so as to reduce beef output, all in order to artificially raise prices of beef. The plaintiffs seek, among other things, damages under state antitrust and consumer protection statutes and the common law of approximately 30 states, as well as injunctive relief. Plaintiffs filed a first amended complaint in which the claims against Agri Stats were dismissed and subsequently filed a second amended complaint on November 22, 2019. We have moved to dismiss the second amended complaint. The indirect consumer purchaser litigation is styled as Peterson v. JBS USA Food Company Holdings, et al. On October 16, 2019, a direct purchaser of beef, on behalf of itself and other direct purchasers of beef, filed a class action complaint against us and other beef packer defendants in the United States District Court for the District of Minnesota. The plaintiff alleges that the defendants conspired to reduce slaughter capacity by closing and idling plants, limiting their purchases of cash cattle, coordinating their procurement of cash cattle, and reducing their slaughter numbers, so as to reduce beef output, all in order to artificially raise prices of beef. The plaintiffs seek, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief. This action was voluntarily dismissed on November 5, 2019. On August 30, 2019, Judy Jien, Kieo Jibidi and Elaisa Clement, acting on their own behalf and a putative class of non-supervisory production and maintenance employees at chicken processing plants in the continental United States, filed a class action complaint against us and certain of our subsidiaries, as well as several other poultry processing companies, in the United States District Court for the District of Maryland. An additional complaint making similar allegations was also filed by Emily Earnest. The plaintiffs allege that the defendants directly and through a wage survey and benchmarking service exchanged information regarding labor rates in an effort to depress and fix the rates of wages for non-supervisory production and maintenance workers in violation of federal antitrust laws. The plaintiffs seek, among other things, treble monetary damages, punitive damages, restitution, and pre- and post-judgment interest, as well as declaratory and injunctive relief. The court consolidated the Jien and Earnest cases for coordinated pretrial proceedings. Following the consolidation, two additional lawsuits have been filed by individuals making similar allegations. The plaintiffs filed an amended consolidated complaint containing additional allegations concerning turkey processing plants and named additional defendants. 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 was 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 in 1995 by Aris Philippines, Inc., a former subsidiary of The Hillshire Brands Company. In late 2004, a labor arbiter ruled against the respondents and awarded the complainants PHP 3,453,664,710 (approximately U.S. $ 68 million ) in damages and fees. The respondents appealed the labor arbiter'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 certain other respondents in exchange for payments allocated by the court among the complainants in an amount not to exceed PHP 342,287,800 (approximately U.S. $ 6.7 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’ settlement motion and all motions for reconsideration thereof. The Supreme Court of the Philippines also set aside as premature the NLRC’s December 2006 ruling. As a result, the cases were remanded back before the NLRC to rule on the merits of the case. On December 15, 2016, we learned that the NLRC rendered its decision on November 29, 2016, regarding the respondents’ appeals regarding the labor arbiter’s 2004 ruling in favor of the complainants. The NLRC increased the award for 4,922 of the total 5,984 complainants to PHP 14,858,495,937 (approximately U.S. $ 292 million ). However, the NLRC approved a prior settlement reached with the group comprising approximately 18% of the class of 5,984 complainants, pursuant to which The Hillshire Brands Company agreed to pay each settling complainant PHP 68,000 (approximately U.S. $ 1,300 ). The settlement payment was made on December 21, 2016, to the NLRC, which is responsible for distributing the funds to each settling complainant. On December 27, 2016, the respondents filed motions for reconsideration with the NLRC asking that the award be set aside. The NLRC denied respondents' motions for reconsideration in a resolution received on May 5, 2017 and entered a judgment on the award on July 24, 2017. Each of Aris Philippines, Inc., Sara Lee Corporation and Sara Lee Philippines, Inc. appealed this award and sought an injunction to preclude enforcement of the award to the Philippines Court of Appeals. On November 23, 2017, the Court of Appeals granted a writ of preliminary injunction that precluded execution of the NLRC award during the pendency of the appeal. The Court of Appeals subsequently vacated the NLRC’s award on April 12, 2018. Complainants have filed motions for reconsideration with the Court of Appeals. On November 14, 2018, the Court of Appeals denied claimants’ motions for reconsideration and granted defendants’ motion to release and discharge the preliminary injunction bond. Claimants have since filed petitions for writ of certiorari with the Supreme Court of the Philippines. The Supreme Court has accepted the case for review. We continue to maintain an accrual for this matter. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES We lease certain equipment, buildings and land related to transportation, distribution, storage, production, livestock grower assets and office activities. These lease arrangements can be structured as a standard lease agreement or embedded in a service or supply agreement and are primarily classified as operating leases. For further description of our lease accounting policy, refer to Part I, Item 1, Notes to the Consolidated Condensed Financial Statements, Note 1: Accounting Policies. Operating lease ROU assets and liabilities presented in our Consolidated Condensed Balance Sheets were as follows (in millions): December 28, 2019 Other Assets $ 527 Other current liabilities 161 Other Liabilities $ 367 The components of lease costs were as follows (in millions): Three Months Ended December 28, 2019 Operating lease cost (a) $ 49 Variable lease cost (b) 111 Short-term lease cost 6 Total $ 166 (a) Sublease income is immaterial and not deducted from operating lease cost. (b) Variable lease costs are determined based on volume of output received, flocks placed or other performance metrics. Other operating lease information includes the following: Three Months Ended December 28, 2019 Operating cash outflows from operating leases (in millions) $ 51 ROU assets obtained in exchange for new operating lease liabilities (in millions) $ 26 Weighted-average remaining lease term 5 years Weighted-average discount rate 3 % At December 28, 2019, future maturities of operating leases were as follows (in millions): Operating Lease Commitments 2020 (remaining year) $ 135 2021 141 2022 96 2023 64 2024 51 2025 and beyond 73 Total undiscounted operating lease payments $ 560 Less: Imputed interest 32 Present value of total operating lease liabilities $ 528 At December 28, 2019 , our leases that had not yet commenced were insignificant. Prior Year Lease Disclosures The following pertains to previously disclosed information set forth in the Company's 2019 Form 10-K, Part II, Item 8, Notes to the Consolidated Financial Statements, Note 20: Commitments and Contingencies. We lease equipment, properties and certain farms for which total rentals approximated $220 million and $200 million , in fiscal 2019 and 2018, respectively. Most leases have initial terms of up to seven years, some with varying renewal periods. Minimum lease commitments under non-cancelable leases at September 28, 2019 were (in millions): Operating Lease Commitments 2020 $ 159 2021 113 2022 74 2023 49 2024 40 2025 and beyond 54 Total $ 489 We enter into agreements with livestock growers that can have fixed and variable payment structures, but are generally cancelable and based on flocks placed with growers. Livestock grower fixed or estimable non-cancelable commitments at September 28, 2019 were (in millions): Livestock Grower Commitments 2020 $ 253 2021 131 2022 86 2023 58 2024 49 2025 and beyond 122 Total $ 699 |
Accounting Policies (Policy)
Accounting Policies (Policy) | 3 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 . 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 December 28, 2019 , and the results of operations for the three months ended December 28, 2019 , and December 29, 2018 . 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. |
Lessee, Leases [Policy Text Block] | Leases We determine if an agreement is or contains a lease at its inception by evaluating if an identified asset exists that we control for a period of time. When a lease exists, we classify it as a finance or operating lease and record a right-of-use ("ROU") asset and a corresponding lease liability at lease commencement. We have elected to not record leases with a term of 12 months or less in our Consolidated Condensed Balance Sheets, and accordingly, lease expense for these short-term leases is recognized on a straight-line basis over the lease term. Finance lease assets are presented within Net Property, Plant and Equipment and finance lease liabilities are presented within Current and Long-Term Debt in our Consolidated Condensed Balance Sheets. Finance lease disclosures are omitted as they are deemed immaterial. Operating ROU assets are presented within Other Assets, and operating lease liabilities are recorded within Other current liabilities and Other Liabilities in our Consolidated Condensed Balance Sheets. Lease assets are subject to review for impairment in a manner consistent with Property, Plant and Equipment. ROU assets are presented in our Consolidated Condensed Balance Sheets based on the present value of the corresponding liabilities and are adjusted for any prepayments, lease incentives received or initial direct costs incurred. The measurement of our ROU assets and liabilities includes all fixed payments and any variable payments based on an index or rate. Variable lease payments which do not depend on an index, or where rates are unknown, are excluded from lease payments in the measurement of the ROU asset and lease liability, and accordingly, are recognized as lease expense in the period the obligation for those payments is incurred. The present value of lease payments is based on our incremental borrowing rate according to the lease term and information available at the lease commencement date, as our lease arrangements generally do not provide an implicit interest rate. The incremental borrowing rate is derived using a hypothetically-collateralized borrowing cost, based on our revolving credit facility, plus a country risk factor, where applicable. We consider our credit rating and the current economic environment in determining the collateralized rate. Our lease arrangements can include fixed or variable non-lease components, such as common area maintenance, taxes and labor. We account for each lease and any non-lease components associated with that lease as a single lease component for all asset classes, except production and livestock grower asset classes embedded in service and supply agreements, and other asset classes that include significant maintenance or service components. We account for lease and non-lease components of an agreement separately based on relative stand-alone prices either observable or estimated if observable prices are not readily available. For asset classes where an election was made not to separate lease and non-lease components, all costs associated with a lease contract are disclosed as lease costs. The accounting for some of the Company's leases may require significant judgment when determining whether a contract is or contains a lease, the lease term, and the likelihood of exercising renewal or termination options. Our leases can include options to extend or terminate use of the underlying assets. These options are included in the lease term used to determine ROU assets and corresponding liabilities when we are reasonably certain we will exercise the option. Additionally, certain leases can have residual value guarantees, which are included within our operating lease liabilities when considered probable. Our lease agreements do not include significant restrictions or covenants. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. Operating lease expense is recognized on a straight-line basis over the lease term, whereas the amortization of finance lease assets is recognized on a straight-line basis over the shorter of the estimated useful life of the underlying asset or the lease term. Operating lease expense and finance lease amortization are presented in Cost of Sales or Selling, General and Administrative in our Consolidated Condensed Statements of Income depending on the nature of the leased item. Interest expense on finance lease obligations is recorded over the lease term and is presented in Interest expense, based on the effective interest method. All operating lease cash payments and interest on finance leases are presented within Net cash provided by operating activities and all finance lease principal payments are presented within Net cash used in financing activities in our Consolidated Condensed Statements of Cash Flows. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued guidance that simplifies the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and clarifies other general principles by adding certain requirements to Topic 740. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2020, our fiscal 2022. Early adoption is permitted for periods for which financial statements have not yet been issued , beginning our fiscal 2020. An entity that elects to early ad opt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. The application of the guidance requires various transition methods depending on the specific amendment. We are currently evaluating the impact this guidance will have on our consolidated financial statements. In June 2016, the FASB issued guidance that provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2019, our fiscal 2021. Early adoption is permitted for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. The application of the guidance requires various transition methods depending on the specific amendment. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements. |
Changes in Accounting Principles | Changes in Accounting Principles In August 2017, the FASB issued guidance that eases certain documentation and assessment requirements of hedge effectiveness and modifies the accounting for components excluded from the assessment. Some of the modifications included the ineffectiveness of derivative gain/loss in highly effective cash flow hedges to be recorded in Other Comprehensive Income, alignment of the recognition and presentation of the effects related to the hedging instrument and hedged item in the financial statements, and additional disclosures required on the cumulative basis adjustment in fair value hedges and the effect of hedging on financial statement lines for components excluded from the assessment. The amendment also simplified the application of hedge accounting in certain situations to permit new hedging strategies to be eligible for hedge accounting. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. We adopted this guidance in the first quarter of fiscal 2020 using the modified retrospective transition approach, and it did not have a material impact on our consolidated financial statements. In February 2016, the FASB issued guidance that created new accounting and reporting guidelines for leasing arrangements. The guidance requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The guidance also requires qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2018, our fiscal 2020. We adopted this guidance in the first quarter of fiscal 2020 using the optional transition method that allows for a cumulative-effect adjustment in the period of adoption with no restatement of prior periods. We have elected the package of practical expedients available under the transition guidance which allows us to not reassess prior conclusions related to lease classifications, existing contracts containing leases, and initial direct costs, as well as the practical expedient that allows the continued historical treatment of land easements. We did not elect the practical expedient for the use of hindsight in evaluating the expected lease term of existing leases. The adoption resulted in the recording of operating lease assets and operating lease liabilities of $549 million and $546 million , respectively, as of September 29, 2019, with no changes to our finance leases. The difference between the additional lease assets and lease liabilities, represents existing deferred rent and prepaid lease balances that were reclassified on the balance sheet. The adoption did not have a material impact on our Consolidated Condensed Statements of Income or our Consolidated Condensed Statements of Cash Flows. For further description of our lease policy refer to the Leases section above, and for quantitative lease information refer to Part I, Item 1, Notes to Consolidated Condensed Financial Statements, Note 5: Leases. |
Inventories (Policy)
Inventories (Policy) | 3 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy | INVENTORIESProcessed products, livestock and supplies and other are valued at the lower of cost or net realizable value. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, livestock 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) | 3 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table summarizes the purchase price allocation for Keystone Foods and fair values of the assets acquired and liabilities assumed at the acquisition date. in millions Cash and cash equivalents $ 186 Accounts receivable 106 Inventories 257 Other current assets 34 Property, Plant and Equipment 676 Goodwill 1,120 Intangible Assets 659 Other Assets 28 Current debt (73 ) Accounts payable (208 ) Other current liabilities (99 ) Long-Term Debt (113 ) Deferred Income Taxes (177 ) Other Liabilities (8 ) Noncontrolling Interests (122 ) Net assets acquired $ 2,266 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The following table reflects the major components of inventory (in millions): December 28, 2019 September 28, 2019 Processed products $ 2,464 $ 2,362 Livestock 1,206 1,150 Supplies and other 634 596 Total inventory $ 4,304 $ 4,108 |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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): December 28, 2019 September 28, 2019 Land $ 199 $ 198 Buildings and leasehold improvements 4,768 4,747 Machinery and equipment 8,692 8,607 Land improvements and other 392 385 Buildings and equipment under construction 857 713 14,908 14,650 Less accumulated depreciation 7,524 7,368 Net property, plant and equipment $ 7,384 $ 7,282 |
Restructuring and Related Cha_2
Restructuring and Related Charges Restructuring and Related Charges (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The following table reflects the pretax impact of restructuring and related charges incurred in the first quarter of fiscal 2020, the charges to date and the total estimated charges, by reportable segment (in millions): Three Months Ended Restructuring and related charges to date December 28, 2019 December 28, 2019 Total estimated Restructuring and related charges Beef $ 5 $ 18 $ 18 Pork 2 7 7 Chicken 21 128 139 Prepared Foods 22 146 157 Other 2 3 3 Total restructuring and related charges, pretax $ 52 $ 302 $ 324 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Other Liabilities, Current [Abstract] | |
Schedule Of Other Current Liabilities | Other current liabilities are as follows (in millions): December 28, 2019 September 28, 2019 Accrued salaries, wages and benefits $ 551 $ 620 Other 1,122 865 Total other current liabilities $ 1,673 $ 1,485 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Debt Instruments [Abstract] | |
Schedule of Major Components Of Debt | The major components of debt are as follows (in millions): December 28, 2019 September 28, 2019 Revolving credit facility $ — $ 70 Commercial paper 819 1,000 Senior notes: Notes due June 2020 (2.46% at 12/28/2019) 350 350 Notes due August 2020 (2.34% at 12/28/2019) 400 400 4.10% Notes due September 2020 279 280 2.25% Notes due August 2021 500 500 4.50% Senior notes due June 2022 1,000 1,000 3.90% Senior notes due September 2023 400 400 3.95% Notes due August 2024 1,250 1,250 4.00% Notes due March 2026 ("2026 Notes") 800 800 3.55% Notes due June 2027 1,350 1,350 7.00% Notes due January 2028 18 18 4.35% Notes due March 2029 ("2029 Notes") 1,000 1,000 6.13% Notes due November 2032 160 161 4.88% Notes due August 2034 500 500 5.15% Notes due August 2044 500 500 4.55% Notes due June 2047 750 750 5.10% Notes due September 2048 ("2048 Notes") 1,500 1,500 Discount on senior notes (47 ) (48 ) Other 253 216 Unamortized debt issuance costs (63 ) (65 ) Total debt 11,719 11,932 Less current debt 1,947 2,102 Total long-term debt $ 9,772 $ 9,830 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchase | A summary of share repurchases of our Class A stock is as follows (in millions): Three Months Ended December 28, 2019 December 29, 2018 Shares Dollars Shares Dollars Shares repurchased: Under share repurchase program 1.1 $ 100 0.9 $ 50 To fund certain obligations under equity compensation plans 0.4 32 0.5 33 Total share repurchases 1.5 $ 132 1.4 $ 83 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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 December 28, 2019 December 29, 2018 Numerator: Net income $ 561 $ 552 Less: Net income attributable to noncontrolling interests 4 1 Net income attributable to Tyson 557 551 Less dividends declared: Class A 137 133 Class B 29 28 Undistributed earnings $ 391 $ 390 Class A undistributed earnings $ 322 $ 321 Class B undistributed earnings 69 69 Total undistributed earnings $ 391 $ 390 Denominator: Denominator for basic earnings per share: Class A weighted average shares 293 294 Class B weighted average shares, and shares under the if-converted method for diluted earnings per share 70 70 Effect of dilutive securities: Stock options, restricted stock and performance units 4 2 Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions 367 366 Net income per share attributable to Tyson: Class A basic $ 1.56 $ 1.54 Class B basic $ 1.40 $ 1.39 Diluted $ 1.52 $ 1.50 Dividends Declared Per Share: Class A $ 0.465 $ 0.450 Class B $ 0.419 $ 0.405 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Derivative Instruments [Table Text Block] | We had the following aggregated outstanding notional amounts related to our derivative financial instruments: in millions, except soy meal tons Metric December 28, 2019 September 28, 2019 Commodity: Corn Bushels 115 111 Soy Meal Tons 1,281,300 1,078,800 Live Cattle Pounds 5 14 Lean Hogs Pounds 199 309 Foreign Currency United States dollar $ 364 $ 148 Interest Rate Swaps Average monthly debt $ 400 $ 400 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Consolidated Condensed Three Months Ended December 28, 2019 December 29, 2018 Sales Gain (Loss) on derivatives not designated as hedging instruments: Commodity contracts $ — $ 1 Cost of Sales Gain (Loss) on cash flow hedges reclassified from OCI to Earnings: Commodity contracts $ (2 ) $ (7 ) Gain (Loss) on fair value hedges: Commodity contracts 16 (1 ) Hedged item (16 ) 1 Gain (Loss) on derivatives not designated as hedging instruments: Commodity contracts 29 3 Total $ 27 $ (4 ) Interest Expense Gain (Loss) on cash flow hedges reclassified from OCI to Earnings: Interest rate contracts $ (1 ) $ — Other Income/(Expense) Gain (Loss) on derivatives not designated as hedging instruments: Foreign exchange contracts $ 4 $ — |
Schedule of Income Statement Items Impacted by Derivatives [Table Text Block] | The following table sets forth the total amounts of each income and expense line item presented in the Consolidated Condensed Statements of Income in which the effects of hedges are recorded (in millions): Consolidated Condensed Three Months Ended December 28, 2019 December 29, 2018 Cost of Sales $ 9,375 $ 8,838 Interest Expense 120 99 Other Income/(Expense) (16 ) (3 ) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table sets forth the pretax impact of cash flow hedge derivative instruments recognized in Other Comprehensive Income (in millions): Gain (Loss) Recognized in OCI On Derivatives Three Months Ended December 28, 2019 December 29, 2018 Cash flow hedge – derivatives designated as hedging instruments: Commodity contracts $ — $ (2 ) Interest rate hedges — (18 ) Total $ — $ (20 ) |
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The carrying amount of fair value hedge assets (liabilities) as of December 28, 2019 and September 28, 2019 were as follows (in millions): Consolidated Condensed Balance Sheets Classification December 28, 2019 September 28, 2019 Inventory $ (1 ) $ (19 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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): December 28, 2019 Level 1 Level 2 Level 3 Netting (a) Total Other Current Assets: Derivative financial instruments: Designated as hedges $ — $ 11 $ — $ (2 ) $ 9 Undesignated — 67 — (15 ) 52 Available-for-sale securities: Current — — 1 — 1 Other Assets: Available-for-sale securities: Non-current — 54 48 — 102 Deferred compensation assets 10 339 — — 349 Total assets $ 10 $ 471 $ 49 $ (17 ) $ 513 Other Current Liabilities: Derivative financial instruments: Designated as hedges $ — $ 14 $ — $ (11 ) $ 3 Undesignated — 45 — (43 ) 2 Total liabilities $ — $ 59 $ — $ (54 ) $ 5 September 28, 2019 Level 1 Level 2 Level 3 Netting (a) Total Other Current Assets: Derivative financial instruments: Designated as hedges $ — $ 26 $ — $ (3 ) $ 23 Undesignated — 58 — (5 ) 53 Available-for-sale securities: Current — — 1 — 1 Other Assets: Available-for-sale securities: Non-current — 51 51 — 102 Deferred compensation assets 7 311 — — 318 Total assets $ 7 $ 446 $ 52 $ (8 ) $ 497 Other Current Liabilities: Derivative financial instruments: Designated as hedges $ — $ 17 $ — $ (13 ) $ 4 Undesignated — 93 — (90 ) 3 Total liabilities $ — $ 110 $ — $ (103 ) $ 7 (a) Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at December 28, 2019 , and September 28, 2019 , we had $37 million and $95 million |
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 marketable debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions): Three Months Ended December 28, 2019 December 29, 2018 Balance at beginning of year $ 52 $ 51 Total realized and unrealized gains (losses): Included in earnings — — Included in other comprehensive income (loss) — — Purchases 3 7 Issuances — — Settlements (6 ) (6 ) Balance at end of period $ 49 $ 52 Total gains (losses) for the three-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): December 28, 2019 September 28, 2019 Amortized Fair Unrealized Amortized Fair Unrealized Available-for-sale securities: Debt securities: U.S. treasury and agency $ 54 $ 54 $ — $ 51 $ 51 $ — Corporate and asset-backed 48 49 1 51 52 1 |
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): December 28, 2019 September 28, 2019 Fair Value Carrying Value Fair Value Carrying Value Total debt $ 12,869 $ 11,719 $ 12,978 $ 11,932 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of the net periodic cost for the pension and postretirement benefit plans for the three months ended December 28, 2019 , and December 29, 2018 , are as follows (in millions): Pension Plans Three Months Ended December 28, 2019 December 29, 2018 Service cost $ — $ 1 Interest cost 10 16 Expected return on plan assets (9 ) (14 ) Amortization of: Net actuarial loss 1 — Prior service cost — — Settlement loss — 19 Net periodic cost $ 2 $ 22 Postretirement Benefit Plans Three Months Ended December 28, 2019 December 29, 2018 Interest cost $ — $ — Amortization of prior service cost (credit) — (4 ) Net periodic cost (credit) $ — $ (4 ) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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 December 28, 2019 December 29, 2018 Before Tax Tax After Tax Before Tax Tax After Tax Derivatives accounted for as cash flow hedges: (Gain) loss reclassified to interest expense $ 1 $ — $ 1 $ — $ — $ — (Gain) loss reclassified to cost of sales 2 — 2 7 (2 ) 5 Unrealized gain (loss) — — — (20 ) 6 (14 ) Investments: Unrealized gain (loss) — — — 1 — 1 Currency translation: Translation adjustment 35 — 35 9 (1 ) 8 Translation loss reclassified to cost of sales — — — — — — Postretirement benefits: Unrealized gain (loss) — — — (28 ) 8 (20 ) Pension settlement reclassified to other (income) expense — — — 23 (6 ) 17 Total other comprehensive income (loss) $ 38 $ — $ 38 $ (8 ) $ 5 $ (3 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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 December 28, 2019 December 29, 2018 Sales: Beef $ 3,838 $ 3,926 Pork 1,379 1,179 Chicken 3,292 3,115 Prepared Foods 2,140 2,149 International/Other 498 143 Intersegment (332 ) (319 ) Total sales $ 10,815 $ 10,193 Three Months Ended December 28, 2019 December 29, 2018 Operating income (loss): Beef $ 410 $ 305 Pork 191 95 Chicken 57 160 (a) Prepared Foods 158 265 International/Other 10 (b) (18 ) (b) Total operating income 826 807 Total other expense 101 94 Income before income taxes $ 725 $ 713 (a) Chicken operating income included $8 million in Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018 . (b) International/Other operating results included $18 million in Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018 , and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $4 million for each of the three months ended December 28, 2019 , and December 29, 2018 . |
Disaggregation of Revenue, By Segment and Distribution Channel | The following tables further disaggregate our sales to customers by major distribution channels (in millions): Three Months Ended December 28, 2019 Consumer Products (a) Foodservice (b) International (c) Industrial and Other (d) Intersegment Total Beef $ 1,857 $ 1,045 $ 514 $ 326 $ 96 $ 3,838 Pork 400 117 280 360 222 1,379 Chicken 1,389 1,307 161 421 14 3,292 Prepared Foods 1,211 846 37 46 — 2,140 International/Other — — 498 — — 498 Intersegment — — — — (332 ) (332 ) Total $ 4,857 $ 3,315 $ 1,490 $ 1,153 $ — $ 10,815 Three Months Ended December 29, 2018 Consumer Products (a) Foodservice (b) International (c) Industrial and Other (d) Intersegment Total Beef $ 1,851 $ 1,017 $ 628 $ 340 $ 90 $ 3,926 Pork 337 91 225 311 215 1,179 Chicken 1,372 1,130 157 442 14 3,115 Prepared Foods 1,275 789 24 61 — 2,149 Other — — 143 — — 143 Intersegment — — — — (319 ) (319 ) Total $ 4,835 $ 3,027 $ 1,177 $ 1,154 $ — $ 10,193 (a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores and internet-based retailers. (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. (c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products. |
Leases (Tables)
Leases (Tables) | 3 Months Ended | |
Dec. 28, 2019 | Sep. 28, 2019 | |
Leases [Abstract] | ||
Lessee Operating Leases Balance Sheet Information [Table Text Block] | Operating lease ROU assets and liabilities presented in our Consolidated Condensed Balance Sheets were as follows (in millions): December 28, 2019 Other Assets $ 527 Other current liabilities 161 Other Liabilities $ 367 | |
Lease, Cost [Table Text Block] | The components of lease costs were as follows (in millions): Three Months Ended December 28, 2019 Operating lease cost (a) $ 49 Variable lease cost (b) 111 Short-term lease cost 6 Total $ 166 | |
Lessee Operating Lease Other Information [Table Text Block] | Other operating lease information includes the following: Three Months Ended December 28, 2019 Operating cash outflows from operating leases (in millions) $ 51 ROU assets obtained in exchange for new operating lease liabilities (in millions) $ 26 Weighted-average remaining lease term 5 years Weighted-average discount rate 3 % | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | At December 28, 2019, future maturities of operating leases were as follows (in millions): Operating Lease Commitments 2020 (remaining year) $ 135 2021 141 2022 96 2023 64 2024 51 2025 and beyond 73 Total undiscounted operating lease payments $ 560 Less: Imputed interest 32 Present value of total operating lease liabilities $ 528 | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum lease commitments under non-cancelable leases at September 28, 2019 were (in millions): Operating Lease Commitments 2020 $ 159 2021 113 2022 74 2023 49 2024 40 2025 and beyond 54 Total $ 489 | |
Other Commitments [Table Text Block] | Livestock grower fixed or estimable non-cancelable commitments at September 28, 2019 were (in millions): Livestock Grower Commitments 2020 $ 253 2021 131 2022 86 2023 58 2024 49 2025 and beyond 122 Total $ 699 |
Accounting Policies Changes in
Accounting Policies Changes in Accounting Principles (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 29, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 527 | $ 549 |
Operating Lease, Liability | $ 528 | $ 546 |
Acquisitions and Dispositions P
Acquisitions and Dispositions Preliminary Fair Value of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Millions | Jun. 03, 2019 | Nov. 30, 2018 | Dec. 28, 2019 | Sep. 28, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 10,862 | $ 10,844 | ||
BRF S.A. Thailand and Europe [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 326 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital | 297 | |||
Goodwill, Purchase Accounting Adjustments | 9 | |||
Cash and cash equivalents | 56 | |||
Property, Plant and Equipment | 93 | |||
Goodwill | 10 | |||
Intangible Assets | 23 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 24 | |||
Deferred Income Taxes | (10) | |||
Noncontrolling Interests | $ (7) | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Net Working Capital | 10 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Income Taxes | $ (1) | |||
Keystone Foods [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 2,300 | |||
Cash and cash equivalents | 186 | |||
Accounts receivable | 106 | |||
Inventories | 257 | |||
Other current assets | 34 | |||
Property, Plant and Equipment | 676 | |||
Goodwill | 1,120 | |||
Intangible Assets | 659 | |||
Other Assets | 28 | |||
Current debt | (73) | |||
Accounts payable | (208) | |||
Other current liabilities | (99) | |||
Long-Term Debt | (113) | |||
Deferred Income Taxes | (177) | |||
Other Liabilities | (8) | |||
Noncontrolling Interests | (122) | |||
Other Liabilities | $ 2,266 | |||
Customer Relationships [Member] | BRF S.A. Thailand and Europe [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |||
Customer Relationships [Member] | Keystone Foods [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 25 years | |||
Corporate and Other [Member] | Keystone Foods [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 341 | |||
Chicken [Member] | Keystone Foods [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 779 |
Acquisitions and Dispositions A
Acquisitions and Dispositions Acquisition (Narrative) (Details) - USD ($) $ in Millions | Jan. 13, 2020 | Jun. 03, 2019 | Nov. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Sep. 28, 2019 |
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 2,141 | ||||
Goodwill | 10,862 | $ 10,844 | ||||
Sales | 10,815 | 10,193 | ||||
BRF S.A. Thailand and Europe [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | $ 7 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital | 297 | |||||
Cash and cash equivalents | 56 | |||||
Property, Plant and Equipment | 93 | |||||
Intangible Assets | 23 | |||||
Goodwill | 10 | |||||
Goodwill, Purchase Accounting Adjustments | 9 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Net Working Capital | (10) | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Deferred Income Taxes | 1 | |||||
Other Liabilities | 24 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 10 | |||||
Business Combination, Consideration Transferred | $ 326 | |||||
Keystone Foods [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | $ 122 | |||||
Cash and cash equivalents | 186 | |||||
Property, Plant and Equipment | 676 | |||||
Intangible Assets | 659 | |||||
Goodwill | 1,120 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 177 | |||||
Business Combination, Consideration Transferred | $ 2,300 | |||||
Customer Relationships [Member] | BRF S.A. Thailand and Europe [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | |||||
Customer Relationships [Member] | Keystone Foods [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 25 years | |||||
Prepared Foods [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Sales | 2,140 | 2,149 | ||||
Chicken [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Sales | 3,292 | 3,115 | ||||
Chicken [Member] | Keystone Foods [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 779 | |||||
Corporate and Other [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Sales | $ 498 | $ 143 | ||||
Corporate and Other [Member] | Keystone Foods [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 341 | |||||
Vibra [Member] | Subsequent Event [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | |||||
Payments to Acquire Equity Method Investments | $ 122 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventory) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Processed products | $ 2,464 | $ 2,362 |
Livestock | 1,206 | 1,150 |
Supplies and other | 634 | 596 |
Total inventory | $ 4,304 | $ 4,108 |
Property, Plant And Equipment_2
Property, Plant And Equipment (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 14,908 | $ 14,650 |
Less accumulated depreciation | 7,524 | 7,368 |
Net property, plant and equipment | 7,384 | 7,282 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 199 | 198 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,768 | 4,747 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 8,692 | 8,607 |
Land improvements and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 392 | 385 |
Buildings and equipment under construction | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 857 | $ 713 |
Restructuring and Related Cha_3
Restructuring and Related Charges Restructuring (Details) $ in Millions | 3 Months Ended | ||
Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 28, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 324 | ||
Restructuring and Related Cost, Incurred Cost | 52 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 302 | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | 500 | ||
Restructuring Reserve | $ 42 | ||
Payments for Restructuring | 10 | ||
2017 Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 280 | ||
Restructuring and Related Cost, Cost Incurred to Date | 258 | ||
Financial Fitness Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 0 | ||
Cost of Sales | Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 9 | ||
Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 43 | ||
Selling, General and Administrative Expenses [Member] | Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 35 | ||
Selling, General and Administrative Expenses [Member] | 2017 Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 8 | ||
Employee Severance [Member] | Restructuring Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | 44 | ||
Technology Impairment and Related Costs [Member] | 2017 Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost Remaining | 22 | ||
Restructuring and Related Cost, Incurred Cost | 8 | ||
Technology Impairment and Related Costs [Member] | Selling, General and Administrative Expenses [Member] | 2017 Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Incurred Cost | $ 8 | ||
Beef [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 18 | ||
Restructuring and Related Cost, Incurred Cost | 5 | ||
Restructuring and Related Cost, Cost Incurred to Date | 18 | ||
Pork [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 7 | ||
Restructuring and Related Cost, Incurred Cost | 2 | ||
Restructuring and Related Cost, Cost Incurred to Date | 7 | ||
Chicken [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 139 | ||
Restructuring and Related Cost, Incurred Cost | 21 | ||
Restructuring and Related Cost, Cost Incurred to Date | 128 | ||
Prepared Foods [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 157 | ||
Restructuring and Related Cost, Incurred Cost | 22 | ||
Restructuring and Related Cost, Cost Incurred to Date | 146 | ||
Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 3 | ||
Restructuring and Related Cost, Incurred Cost | 2 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 3 |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Other Liabilities, Current [Abstract] | ||
Accrued salaries, wages and benefits | $ 551 | $ 620 |
Other | 1,122 | 865 |
Total other current liabilities | $ 1,673 | $ 1,485 |
Debt (Major Components Of Debt)
Debt (Major Components Of Debt) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Debt Instrument [Line Items] | ||
Discount on senior notes | $ (47) | $ (48) |
Other | 253 | 216 |
Unamortized debt issuance costs | (63) | (65) |
Total debt | 11,719 | 11,932 |
Less current debt | 1,947 | 2,102 |
Less current debt | 9,772 | 9,830 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | 0 | 70 |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Commercial paper | $ 819 | 1,000 |
Notes due June 2020 (2.46% at 12/28/2019) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.46% | |
Long-term Debt, Gross | $ 350 | 350 |
Notes due August 2020 (2.34% at 12/28/2019) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.34% | |
Long-term Debt, Gross | $ 400 | 400 |
4.10% Notes due September 2020 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | |
Long-term Debt, Gross | $ 279 | 280 |
2.25% Notes due August 2021 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | |
Long-term Debt, Gross | $ 500 | 500 |
4.50% Senior notes due June 2022 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
Long-term Debt, Gross | $ 1,000 | 1,000 |
3.90% Senior notes due September 2023 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | |
Long-term Debt, Gross | $ 400 | 400 |
3.95% Notes due August 2024 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |
Long-term Debt, Gross | $ 1,250 | 1,250 |
4.00% Notes due March 2026 (2026 Notes) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |
Long-term Debt, Gross | $ 800 | 800 |
3.55% Notes due June 2027 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | |
Long-term Debt, Gross | $ 1,350 | 1,350 |
7.00% Notes due January 2028 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
Long-term Debt, Gross | $ 18 | 18 |
4.35% Notes due March 2029 (2029 Notes) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | |
Long-term Debt, Gross | $ 1,000 | 1,000 |
6.13% Notes due November 2032 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.13% | |
Long-term Debt, Gross | $ 160 | 161 |
4.88% Notes due August 2034 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.88% | |
Long-term Debt, Gross | $ 500 | 500 |
5.15% Notes due August 2044 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | |
Long-term Debt, Gross | $ 500 | 500 |
4.55% Notes due June 2047 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.55% | |
Long-term Debt, Gross | $ 750 | 750 |
5.10% Notes due September 2048 (2048 Notes) | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | |
Long-term Debt, Gross | $ 1,500 | $ 1,500 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Sep. 28, 2019 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 47 | $ 48 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 1,750 | |
Amount available for borrowing under credit facility | 1,750 | |
Revolving credit facility | 0 | 70 |
Standby Letters of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | 0 | |
Bilateral Letters Of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letters of Credit Outstanding, Amount | 99 | |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 1,000 | |
Commercial paper | $ 819 | $ 1,000 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.01% | |
Debt Instrument, Term | 50 days |
Equity (Schedule of Share Repur
Equity (Schedule of Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Class of Stock [Line Items] | ||
Payments for Repurchase of Common Stock | $ 132 | $ 83 |
Class A [Member] | ||
Class of Stock [Line Items] | ||
Treasury Stock, Shares, Acquired | 1.5 | 1.4 |
Payments for Repurchase of Common Stock | $ 132 | $ 83 |
Under share repurchase program | Class A [Member] | ||
Class of Stock [Line Items] | ||
Treasury Stock, Shares, Acquired | 1.1 | 0.9 |
Payments for Repurchase of Common Stock | $ 100 | $ 50 |
To fund certain obligations under equity compensation plans | Class A [Member] | ||
Class of Stock [Line Items] | ||
Treasury Stock, Shares, Acquired | 0.4 | 0.5 |
Payments for Repurchase of Common Stock | $ 32 | $ 33 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) shares in Millions | Dec. 28, 2019shares |
Class A [Member] | |
Class of Stock [Line Items] | |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 19.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate for continuing operations | 22.70% | 22.60% | |
Unrecognized tax benefits | $ 169 | $ 169 |
Other Income And Charges (Detai
Other Income And Charges (Details) $ in Millions | 3 Months Ended |
Dec. 29, 2018USD ($) | |
Other income/expense | |
Components of Other Income and Expenses [Line Items] | |
Net Periodic Benefit Cost (Credit), Excluding Service Cost | $ 17 |
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 | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Earnings Per Share, Basic and Diluted [Line Items] | ||
Net Income | $ 561 | $ 552 |
Less: Net Income Attributable to Noncontrolling Interests | 4 | 1 |
Net income attributable to Tyson | 557 | 551 |
Undistributed earnings | $ 391 | $ 390 |
Stock options, restricted stock and performance units | 4 | 2 |
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions | 367 | 366 |
Diluted | $ 1.52 | $ 1.50 |
Class A [Member] | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||
Less dividends declared: | $ 137 | $ 133 |
Undistributed earnings | $ 322 | $ 321 |
Weighted average number of shares outstanding - Basic | 293 | 294 |
Net Income Per Share Attributable to Tyson - Basic | $ 1.56 | $ 1.54 |
Common Stock, Dividends, Per Share, Declared | $ 0.465 | $ 0.450 |
Class B [Member] | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||
Less dividends declared: | $ 29 | $ 28 |
Undistributed earnings | $ 69 | $ 69 |
Weighted average number of shares outstanding - Basic | 70 | 70 |
Net Income Per Share Attributable to Tyson - Basic | $ 1.40 | $ 1.39 |
Common Stock, Dividends, Per Share, Declared | $ 0.419 | $ 0.405 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Millions | 3 Months Ended | |
Dec. 28, 2019Classesshares | Dec. 29, 2018shares | |
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% | |
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 | |
Share-based Payment Arrangement [Member] | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, shares | shares | 2 | 4 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Aggregate Outstanding Notionals) (Details) lb in Millions, bu in Millions, $ in Millions | Dec. 28, 2019USD ($)bulbT | Sep. 28, 2019USD ($)bulbT |
Corn (in bushels) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | bu | 115 | 111 |
Soy Meal (in tons) | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | T | 1,281,300 | 1,078,800,000,000 |
Live Cattle [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | lb | 5 | 14 |
Lean Hogs [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | lb | 199 | 309 |
Foreign Currency [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 364 | $ 148 |
Interest rate hedges | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ | $ 400 | $ 400 |
Derivative Financial Instrume_4
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 | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative [Line Items] | ||
Gain/(Loss) Recognized in OCI on Derivatives | $ 0 | $ (20) |
Commodity contracts | ||
Derivative [Line Items] | ||
Gain/(Loss) Recognized in OCI on Derivatives | 0 | (2) |
Interest rate hedges | ||
Derivative [Line Items] | ||
Gain/(Loss) Recognized in OCI on Derivatives | $ 0 | $ (18) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Pretax Impact Of Fair Value Hedge Derivative Instruments On The Consolidated Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Sep. 28, 2019 | |
Cost of Sales | |||
Derivative [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 27 | $ (4) | |
Fair Value Hedging [Member] | |||
Derivative [Line Items] | |||
Derivative Assets (Liabilities), at Fair Value, Net | $ (1) | $ (19) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Pretax Impact Of Undesignated Derivative Instruments On The Consolidated Statements Of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative [Line Items] | ||
Cost of Sales | $ 9,375 | $ 8,838 |
Other Nonoperating Income (Expense) | (16) | (3) |
Interest expense | 120 | 99 |
Cost of Sales | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 27 | (4) |
Not Designated as Hedging Instrument | Commodity contracts | Sales | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | 1 |
Not Designated as Hedging Instrument | Commodity contracts | Cost of Sales | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 29 | 3 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Other income/expense | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 4 | 0 |
Fair Value Hedging [Member] | Commodity contracts | ||
Derivative [Line Items] | ||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (16) | 1 |
Fair Value Hedging [Member] | Commodity contracts | Cost of Sales | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 16 | (1) |
Cash Flow Hedging [Member] | Commodity contracts | Cost of Sales | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (2) | (7) |
Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Interest Expense [Member] | ||
Derivative [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (1) | $ 0 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Narrative) (Details) $ in Millions | 3 Months Ended |
Dec. 28, 2019USD ($) | |
Commodity contracts | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 6 |
Interest rate hedges | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 3 |
Treasury Rate Locks | |
Derivative [Line Items] | |
Cash Flow Hedge Gain (Loss) to be Reclassified Over Life of Forecasted Fixed-Rate Debt | $ 18 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | $ 37 | $ 95 | |
Derivative, Collateral, Obligation to Return Cash | 0 | ||
Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Asset, Netting | [1] | (17) | (8) |
Total assets | 513 | 497 | |
Derivative Liability, Netting | [1] | (54) | (103) |
Total liabilities | 5 | 7 | |
Fair Value, Recurring [Member] | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 10 | 7 | |
Total liabilities | 0 | 0 | |
Fair Value, Recurring [Member] | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 471 | 446 | |
Total liabilities | 59 | 110 | |
Fair Value, Recurring [Member] | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets | 49 | 52 | |
Total liabilities | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 1 | 1 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 9 | 23 | |
Derivative Asset, Netting | (2) | (3) | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 52 | 53 | |
Derivative Asset, Netting | (15) | (5) | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 1 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 1 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 2 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 11 | 26 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 2 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 67 | 58 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-Sale Securities, Current | 1 | 1 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 3 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 0 | 0 | |
Other Current Assets [Member] | Fair Value, Recurring [Member] | Level 3 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Assets | 0 | 0 | |
Other Assets [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for Sale Securities, Noncurrent | 102 | 102 | |
Deferred compensation assets | 349 | 318 | |
Other Assets [Member] | Fair Value, Recurring [Member] | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for Sale Securities, Noncurrent | 0 | 0 | |
Deferred compensation assets | 10 | 7 | |
Other Assets [Member] | Fair Value, Recurring [Member] | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for Sale Securities, Noncurrent | 54 | 51 | |
Deferred compensation assets | 339 | 311 | |
Other Assets [Member] | Fair Value, Recurring [Member] | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for Sale Securities, Noncurrent | 48 | 51 | |
Deferred compensation assets | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 3 | 4 | |
Derivative Liability, Netting | (11) | (13) | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 2 | 3 | |
Derivative Liability, Netting | (43) | (90) | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 1 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 1 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 2 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 14 | 17 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 2 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 45 | 93 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 3 | Designated as hedges | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Recurring [Member] | Level 3 | Undesignated | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative Financial Instruments, Liabilities | $ 0 | $ 0 | |
[1] | Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. Additionally, at December 28, 2019 , and September 28, 2019 , we had $37 million and $95 million |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | $ 52 | $ 51 |
Total realized gains (losses) included in earnings | 0 | 0 |
Total unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 |
Purchases | 3 | 7 |
Issuances | 0 | 0 |
Settlements | (6) | (6) |
Balance at end of period | 49 | 52 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss) | $ 0 | $ 0 |
Fair Value Measurements (Sche_3
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
U.S. treasury and agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost Basis | $ 54 | $ 51 |
Fair Value | 54 | 51 |
Unrealized Gain (Loss) | 0 | 0 |
Corporate and asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost Basis | 48 | 51 |
Fair Value | 49 | 52 |
Unrealized Gain (Loss) | $ 1 | $ 1 |
Fair Value Measurements (Sche_4
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) - USD ($) $ in Millions | Dec. 28, 2019 | Sep. 28, 2019 |
Fair Value Disclosures [Abstract] | ||
Total Debt, Fair Value | $ 12,869 | $ 12,978 |
Total Debt, Carrying Value | $ 11,719 | $ 11,932 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other than Temporary Impairments, Recognized in Earnings | $ 0 | $ 0 |
Other than Temporary Impairment Losses, Deferred in OCI | $ 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 | 32 years |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 0 | $ 1 |
Interest cost | 10 | 16 |
Expected return on plan assets | (9) | (14) |
Amortization of Net actuarial loss | 1 | 0 |
Amortization of prior service credit | 0 | 0 |
Settlement loss | 0 | 19 |
Net periodic cost (credit) | 2 | 22 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | 0 | 0 |
Amortization of prior service credit | 0 | (4) |
Net periodic cost (credit) | $ 0 | $ (4) |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1 | $ 3 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Other Comprehensive Income Loss [Line Items] | ||
Total Other Comprehensive Income (Loss), Before Tax | $ 38 | $ (8) |
Total Other Comprehensive Income (Loss), Tax | 0 | 5 |
Total Other Comprehensive Income (Loss), Net of Taxes | 38 | (3) |
Derivatives accounted for as cash flow hedges: | ||
Other Comprehensive Income Loss [Line Items] | ||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 0 | (20) |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | 6 |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 0 | (14) |
Derivatives accounted for as cash flow hedges: | Interest Expense [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 1 | 0 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | 1 | 0 |
Derivatives accounted for as cash flow hedges: | Cost of Sales | ||
Other Comprehensive Income Loss [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 2 | 7 |
Reclassification from AOCI, Current Period, Tax | 0 | (2) |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | 2 | 5 |
Investments: | ||
Other Comprehensive Income Loss [Line Items] | ||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 0 | 1 |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | 0 |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 0 | 1 |
Currency translation: | ||
Other Comprehensive Income Loss [Line Items] | ||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 35 | 9 |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | (1) |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 35 | 8 |
Currency translation: | Cost of Sales | ||
Other Comprehensive Income Loss [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 0 | 0 |
Reclassification from AOCI, Current Period, Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | 0 | 0 |
Postretirement benefits: | ||
Other Comprehensive Income Loss [Line Items] | ||
Other Comprehensive Income (Loss), Before Reclassifications, Before Tax | 0 | (28) |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | 8 |
Other Comprehensive Income (Loss), Before Reclassifications, Net of Tax | 0 | (20) |
Postretirement benefits: | Other income/expense | ||
Other Comprehensive Income Loss [Line Items] | ||
Reclassification from Accumulated Other Comprehensive Income, Before Tax | 0 | 23 |
Reclassification from AOCI, Current Period, Tax | 0 | (6) |
Reclassification from Accumulated Other Comprehensive Income, Net of Tax | $ 0 | $ 17 |
Segment Reporting (Segment Repo
Segment Reporting (Segment Reporting Information, By Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | |||
Segment Reporting Information [Line Items] | ||||
Sales | $ 10,815 | $ 10,193 | ||
Operating Income (Loss) | 826 | 807 | ||
Total other expense | 101 | 94 | ||
Income before income taxes | 725 | 713 | ||
Beef [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3,838 | 3,926 | ||
Pork [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,379 | 1,179 | ||
Chicken [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3,292 | 3,115 | ||
Prepared Foods [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,140 | 2,149 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 498 | 143 | ||
Operating Segments [Member] | Beef [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3,838 | 3,926 | ||
Operating Income (Loss) | 410 | 305 | ||
Operating Segments [Member] | Pork [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,379 | 1,179 | ||
Operating Income (Loss) | 191 | 95 | ||
Operating Segments [Member] | Chicken [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3,292 | 3,115 | ||
Operating Income (Loss) | 57 | [1] | 160 | |
Operating Segments [Member] | Prepared Foods [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,140 | 2,149 | ||
Operating Income (Loss) | 158 | 265 | ||
Segment Reconciling Items [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 498 | 143 | ||
Operating Income (Loss) | [2] | 10 | (18) | |
Business Combination, Integration Related Costs | 4 | 4 | ||
Intersegment Elimination | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ (332) | (319) | ||
Keystone Foods [Member] | Operating Segments [Member] | Chicken [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Business Acquisition, Expense from Purchase Accounting and Acquisition Related Costs | 8 | |||
Keystone Foods [Member] | Segment Reconciling Items [Member] | Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Business Acquisition, Expense from Purchase Accounting and Acquisition Related Costs | $ 18 | |||
[1] | (a) Chicken operating income included $8 million in Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018 | |||
[2] | (b) International/Other operating results included $18 million in Keystone Foods purchase accounting and acquisition related costs for the three months ended December 29, 2018 , and other third-party merger and integration costs and corporate overhead of Tyson New Ventures, LLC of $4 million for each of the three months ended December 28, 2019 , and December 29, 2018 . |
Segment Reporting Disaggregatio
Segment Reporting Disaggregation of Revenue (By Segment and Distribution Channel) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | ||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 10,815 | $ 10,193 | |
Beef [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 3,838 | 3,926 | |
Pork [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,379 | 1,179 | |
Chicken [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 3,292 | 3,115 | |
Prepared Foods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,140 | 2,149 | |
Corporate and Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 498 | 143 | |
Retail | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [1] | 4,857 | 4,835 |
Retail | Beef [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [1] | 1,857 | 1,851 |
Retail | Pork [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [1] | 400 | 337 |
Retail | Chicken [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [1] | 1,389 | 1,372 |
Retail | Prepared Foods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [1] | 1,211 | 1,275 |
Retail | Corporate and Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [1] | 0 | 0 |
Foodservice | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [2] | 3,315 | 3,027 |
Foodservice | Beef [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [2] | 1,045 | 1,017 |
Foodservice | Pork [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [2] | 117 | 91 |
Foodservice | Chicken [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [2] | 1,307 | 1,130 |
Foodservice | Prepared Foods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [2] | 846 | 789 |
Foodservice | Corporate and Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [2] | 0 | 0 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [3] | 1,490 | 1,177 |
International | Beef [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [3] | 514 | 628 |
International | Pork [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [3] | 280 | 225 |
International | Chicken [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [3] | 161 | 157 |
International | Prepared Foods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [3] | 37 | 24 |
International | Corporate and Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [3] | 498 | 143 |
Industrial and Other | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [4] | 1,153 | 1,154 |
Industrial and Other | Beef [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [4] | 326 | 340 |
Industrial and Other | Pork [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [4] | 360 | 311 |
Industrial and Other | Chicken [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [4] | 421 | 442 |
Industrial and Other | Prepared Foods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [4] | 46 | 61 |
Industrial and Other | Corporate and Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | [4] | 0 | 0 |
Intersegment Elimination | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | |
Intersegment Elimination | Beef [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 96 | 90 | |
Intersegment Elimination | Pork [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 222 | 215 | |
Intersegment Elimination | Chicken [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 14 | 14 | |
Intersegment Elimination | Prepared Foods [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | |
Intersegment Elimination | Corporate and Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 0 | 0 | |
Intersegment Elimination | |||
Disaggregation of Revenue [Line Items] | |||
Sales | (332) | (319) | |
Intersegment Elimination | Intersegment Elimination | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ (332) | $ (319) | |
[1] | (a) Includes sales to consumer products and food retailers, such as grocery retailers, warehouse club stores and internet-based retailers | ||
[2] | (b) Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, convenience stores, healthcare facilities and the military. | ||
[3] | (c) Includes sales to international markets related to internationally produced products or export sales of domestically produced products. | ||
[4] | (d) Includes sales to industrial food processing companies that further process our product to sell to end consumers and any remaining sales not included in the Consumer Products, Foodservice or International categories. |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Millions | 3 Months Ended | |
Dec. 28, 2019USD ($)Segments | Dec. 29, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | Segments | 4 | |
Sales | $ 10,815 | $ 10,193 |
Beef [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 3,838 | 3,926 |
Pork [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 1,379 | 1,179 |
Chicken [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 3,292 | 3,115 |
Prepared Foods [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 2,140 | 2,149 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 498 | 143 |
Segment Reconciling Items [Member] | Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 498 | 143 |
Intersegment Elimination | ||
Segment Reporting Information [Line Items] | ||
Sales | $ (332) | $ (319) |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) - USD ($) | 3 Months Ended | |
Dec. 28, 2019 | Sep. 28, 2019 | |
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Potential maximum obligation under cash flow assistance programs | 315,000,000 | |
Total receivables under cash flow assistance programs | 9,000,000 | 5,000,000 |
Cash Flow Assistance Program, Estimated Allowance For Uncollectible Receivables | 0 | 0 |
Industrial Revenue Bonds [Member] | ||
Guarantor Obligations [Line Items] | ||
Industrial Revenue Bonds | $ 752,000,000 | |
Guarantee Obligations [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Period | 10 years | |
Lease Residual Value Guarantees [Domain] | ||
Guarantor Obligations [Line Items] | ||
Maximum potential amount | $ 70,000,000 | |
Grower Commitments [Member] | ||
Guarantor Obligations [Line Items] | ||
Other Commitment, Due in Next Twelve Months | 253,000,000 | |
Other Commitment, Due in Second Year | 131,000,000 | |
Other Commitment, Due in Third Year | 86,000,000 | |
Other Commitment, Due in Fourth Year | 58,000,000 | |
Other Commitment, Due in Fifth Year | 49,000,000 | |
Other Commitment, Due after Fifth Year | 122,000,000 | |
Other Commitment | $ 699,000,000 |
Contingencies (Narrative) (Deta
Contingencies (Narrative) (Details) - Republic of the Philippines, Department of Labor and Employment and the National Labor Relations Commission [Member] | Dec. 21, 2016USD ($)Plantiffs | Dec. 21, 2016PHP (₱)Plantiffs | Nov. 29, 2016USD ($)Plantiffs | Nov. 29, 2016PHP (₱)Plantiffs | Jun. 23, 2014USD ($) | Jun. 23, 2014PHP (₱) | Dec. 31, 2004USD ($) | Dec. 31, 2004PHP (₱) |
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | $ 292,000,000 | ₱ 14,858,495,937 | $ 68,000,000 | ₱ 3,453,664,710 | ||||
Loss Contingency, Number of Plaintiffs, Award Increase | 4,922 | 4,922 | ||||||
Estimated Percentage of Settling Complainants | 18.00% | 18.00% | ||||||
Loss Contingency, Number of Plaintiffs | 5,984 | 5,984 | 5,984 | 5,984 | ||||
Loss Contingency, Damages Paid Per Complainant | $ 1,300 | ₱ 68,000 | ||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Litigation settlement, amount requested by respondent | $ 6,700,000 | ₱ 342,287,800 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 28, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 29, 2019 | |
Leases [Abstract] | ||||
Operating Lease, Right-of-Use Asset | $ 527 | $ 549 | ||
Operating Lease, Liability, Current | 161 | |||
Operating Lease, Liability, Noncurrent | 367 | |||
Operating Lease, Cost | 49 | |||
Variable Lease, Cost | 111 | |||
Short-term Lease, Cost | 6 | |||
Lease, Cost | 166 | |||
Operating Lease, Payments | 51 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 26 | |||
Operating Lease, Weighted Average Remaining Lease Term | 5 years | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.00% | |||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 135 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 141 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 96 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 64 | |||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 51 | |||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 73 | |||
Operating Lease, Liability | 560 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 32 | |||
Operating Lease, Liability | $ 528 | $ 546 | ||
Operating Leases, Rent Expense | $ 220 | $ 200 | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 159 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 113 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 74 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 49 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 40 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 54 | |||
Operating Leases, Future Minimum Payments Due | 489 | |||
Grower Commitments [Member] | ||||
Leases [Abstract] | ||||
Other Commitment, Due in Next Twelve Months | 253 | |||
Other Commitment, Due in Second Year | 131 | |||
Other Commitment, Due in Third Year | 86 | |||
Other Commitment, Due in Fourth Year | 58 | |||
Other Commitment, Due in Fifth Year | 49 | |||
Other Commitment, Due after Fifth Year | 122 | |||
Other Commitment | $ 699 |