Document and Entity Information

6 Months Ended

Mar. 31, 2012

Entity Registrant Name

TYSON FOODS INC

Entity Central Index Key

0000100493

Current Fiscal Year End Date

--09-29

Entity Filer Category

Large Accelerated Filer

Document Type

10-Q

Document Period End Date

Mar. 31, 2012

Document Fiscal Year Focus

2012

Document Fiscal Period Focus

Q2

Amendment Flag

false

Class A [Member]

Entity Common Stock, Shares Outstanding

295,517,591

Class B [Member]

Entity Common Stock, Shares Outstanding

70,017,755

Consolidated Condensed Statements Of Income (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Sales

$ 8,268

$ 8,000

$ 16,597

$ 15,615

Cost of Sales

7,733

7,467

15,569

14,338

Gross Profit

535

533

1,028

1,277

Selling, General and Administrative

233

230

448

476

Operating Income

302

303

580

801

Other (Income) Expense:

Interest income

(5)

(3)

(7)

(6)

Interest expense

52

63

101

129

Other, net

(2)

2

(14)

(8)

Total Other (Income) Expense

45

62

80

115 ¹

Income before Income Taxes

257

241

500

686

Income Tax Expense

91

85

178

236

Net Income

166

156

322

450

Less: Net Loss Attributable to Noncontrolling Interest

0

(3)

0

(7)

Net Income Attributable to Tyson

$ 166

$ 159

$ 322

$ 457

Weighted Average Shares Outstanding:

Diluted

373

383

374

381

Net Income Per Share Attributable to Tyson:

Diluted (USD per share)

$ 0.44

$ 0.42

$ 0.86

$ 1.20

Class A [Member]

Weighted Average Shares Outstanding:

Basic

294

305

295

305

Net Income Per Share Attributable to Tyson:

Basic (USD per share)

$ 0.47

$ 0.43

$ 0.90

$ 1.24

Cash Dividends Per Share:

Cash Dividends (USD per share)

$ 0.040

$ 0.080

Class B [Member]

Weighted Average Shares Outstanding:

Basic

70

Net Income Per Share Attributable to Tyson:

Basic (USD per share)

$ 0.42

$ 0.39

$ 0.81

$ 1.12

Cash Dividends Per Share:

Cash Dividends (USD per share)

$ 0.036

$ 0.072

[1] Includes $11 million gain related to a sale of interests in an equity method investment.

Consolidated Condensed Balance Sheets (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Assets

Cash and cash equivalents

$ 723

$ 716

Accounts receivable, net

1,253

1,321

Inventories

2,622

2,587

Other current assets

152

156

Total Current Assets

4,750

4,780

Net Property, Plant and Equipment

3,943

3,823

Goodwill

1,892

Intangible Assets

143

149

Other Assets

442

427

Total Assets

11,170

11,071

Liabilities and Shareholders' Equity

Current debt

84

70

Accounts payable

1,191

1,264

Other current liabilities

895

1,040

Total Current Liabilities

2,170

2,374

Long-Term Debt

2,136

2,112

Deferred Income Taxes

433

424

Other Liabilities

496

476

Shareholders' Equity:

Capital in excess of par value

2,266

2,261

Retained earnings

4,094

3,801

Accumulated other comprehensive loss

(40)

(79)

Treasury stock, at cost - 26 million shares at March 31, 2012, and 22 million shares at October 1, 2011

(453)

(365)

Total Tyson Shareholders' Equity

5,906

5,657

Noncontrolling Interest

29

28

Total Shareholders' Equity

5,935

5,685

Total Liabilities and Shareholders' Equity

11,170

11,071

Class A [Member]

Shareholders' Equity:

Common stock

32

Convertible Class B [Member]

Shareholders' Equity:

Common stock

$ 7

Condensed Consolidated Balance Sheets (Parentheticals) (USD $)

In Millions, except Per Share data, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Treasury Stock, at Cost

26

22

Class A [Member]

Common stock, par value

$ 0.10

Common stock, shares authorized

900

Common stock, shares issued

322

Convertible Class B [Member]

Common stock, par value

$ 0.10

Common stock, shares authorized

900

Common stock, shares issued

70

Consolidated Condensed Statements Of Cash Flows (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Cash Flows From Operating Activities:

Net income

$ 322

$ 450

Depreciation and amortization

245

256

Deferred income taxes

53

60

Other, net

41

40

Net changes in working capital

(207)

(603)

Cash Provided by Operating Activities

454

203

Cash Flows From Investing Activities:

Additions to property, plant and equipment

(344)

(319)

Purchases of marketable securities

(25)

(107)

Proceeds from sale of marketable securities

13

27

Proceeds from notes receivable

0

51

Other, net

17

25

Cash Used for Investing Activities

(339)

(323)

Cash Flows From Financing Activities:

Payments on debt

(41)

(65)

Net proceeds from borrowings

56

0

Purchases of Tyson Class A common stock

(128)

(21)

Dividends

(29)

(30)

Other, net

29

45

Cash Used for Financing Activities

(113)

(71)

Effect of Exchange Rate Change on Cash

5

7

Increase (Decrease) in Cash and Cash Equivalents

7

(184)

Cash and Cash Equivalents at Beginning of Year

716

978

Cash and Cash Equivalents at End of Period

$ 723

$ 794

Accounting Policies

ACCOUNTING POLICIES

BASIS OF PRESENTATION

The consolidated condensed financial statements 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. 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 October 1, 2011. Preparation of consolidated condensed financial statements requires us to make estimates and assumptions. These estimates and assumptions 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 March 31, 2012, and the results of operations and cash flows for the three and six months ended March 31, 2012, and April 2, 2011. 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 are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

We have an investment in a joint venture, Dynamic Fuels LLC (Dynamic Fuels), in which we have a 50 percent ownership interest. Dynamic Fuels qualifies as a variable interest entity for which we consolidate as we are the primary beneficiary. At March 31, 2012, Dynamic Fuels had $178 million of total assets, of which $141 million was net property, plant and equipment, and $128 million of total liabilities, of which $100 million was long-term debt. At October 1, 2011, Dynamic Fuels had $170 million of total assets, of which $144 million was net property, plant and equipment, and $116 million of total liabilities, of which $100 million was long-term debt.

SHARE REPURCHASES

On May 11, 2011, we announced our Board of Directors reactivated a share repurchase program, which had no activity since fiscal 2005, to repurchase up to the remaining available 22.5 million shares of Class A common stock under the program. The share repurchase program has no fixed or scheduled termination date. During the three and six months ended March 31, 2012, we repurchased 3.6 million and 5.4 million shares for approximately $70 million and $105 million, respectively, under this program. As of March 31, 2012, 7.4 million shares remained available for repurchase. On May 3, 2012, our Board of Directors approved an increase of 35 million shares authorized for repurchase under this program. The timing and extent to which we repurchase shares will depend upon, among other things, market conditions, liquidity targets, limitations under our debt obligations and regulatory requirements. In addition to the share repurchase program, we purchase shares of Class A common stock on the open market to fund certain obligations under our equity compensation plans. These repurchases totaled $23 million and $21 million for the six months ended March 31, 2012, and April 2, 2011, respectively.

CASH FLOW STATEMENT PRESENTATION

In March 2011, we collected $51 million of notes receivable associated with our 2008 sale of assets of three of our Alberta, Canada subsidiaries (collectively, Lakeside). This cash receipt has been reflected in the Consolidated Condensed Statement of Cash Flows for the six months ended April 2, 2011, as an investing activity, revising the previous presentation of the receipt from operating activities in the fiscal 2011 second quarter consolidated condensed financial statements. As a result, operating and investing cash flows previously reported at $254 million and ($374) million, respectively, were revised to $203 million and ($323) million, respectively, for the six months ended April 2, 2011.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

In May 2011, the FASB clarified the guidance around fair value measurements and disclosures. This guidance is effective for interim and annual periods beginning after December 15, 2011. We adopted this guidance in the second quarter of fiscal year 2012. The adoption did not have a significant impact on our consolidated condensed financial statements.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In June 2011, the FASB issued guidance regarding the presentation of comprehensive income. This guidance is effective for annual periods, and interim periods within those years, beginning after December 15, 2011. We anticipate we will adopt this guidance in the first quarter of fiscal year 2013. Upon adoption, we will be required to present comprehensive income as part of our consolidated condensed statements of income, or in a separate financial statement. Currently, we present such information in our notes to the consolidated condensed financial statements. Other than changing the presentation of comprehensive income, we do not expect the adoption will have a significant impact on our consolidated condensed financial statements.

In September 2011, the FASB issued guidance amending the way companies test for goodwill impairment, allowing the option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative impairment test. This guidance is effective for interim and annual periods beginning after December 15, 2011, with early adoption permitted. We will adopt the guidance in connection with our annual goodwill impairment test in the fourth quarter of fiscal 2012. We do not expect the adoption will have a significant impact on our consolidated condensed financial statements.

In December 2011, the FASB issued guidance enhancing disclosures related to offsetting of certain assets and liabilities. This guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We do not expect the adoption will have a significant impact on our consolidated condensed financial statements.

Inventories

INVENTORIES

Processed products, livestock and supplies and other are valued at the lower of cost or market. Cost includes purchased raw materials, live purchase costs, growout costs (primarily feed, contract grower pay and catch and haul costs), labor and manufacturing and production overhead, which are related to the purchase and production of inventories. Total inventory consists of the following (in millions):



	March 31, 2012		October 1, 2011
Processed products:
Weighted-average method – chicken and prepared foods	$	678	$	715
First-in, first-out method – beef and pork	659		581
Livestock – first-in, first-out method	888		928
Supplies and other – weighted-average method	397		363
Total inventories	$	2,622	$	2,587

Property, Plant And Equipment

PROPERTY, PLANT AND EQUIPMENT

The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions)



	March 31, 2012		October 1, 2011
Land	$	98	$	95
Buildings and leasehold improvements	2,766		2,698
Machinery and equipment	4,925		4,897
Land improvements and other	390		386
Buildings and equipment under construction	503		446
	8,682		8,522
Less accumulated depreciation	4,739		4,699
Net property, plant and equipment	$	3,943	$	3,823

Other Current Liabilities

OTHER CURRENT LIABILITIES

Other current liabilities are as follows (in millions):



	March 31, 2012		October 1, 2011
Accrued salaries, wages and benefits	$	309	$	407
Self-insurance reserves	284		298
Other	302		335
Total other current liabilities	$	895	$	1,040

Debt

DEBT

The major components of debt are as follows (in millions):



	March 31, 2012			October 1, 2011
Revolving credit facility	$	—		$	—
Senior notes:
3.25% Convertible senior notes due October 2013 (2013 Notes)	458			458
10.50% Senior notes due March 2014 (2014 Notes)	810			810
6.85% Senior notes due April 2016 (2016 Notes)	638			638
7.00% Notes due May 2018	120			120
7.00% Notes due January 2028	18			18
Discount on senior notes	(60		)	(76		)
GO Zone tax-exempt bonds due October 2033 (0.19% at 3/31/2012)	100			100
Other	136			114
Total debt	2,220			2,182
Less current debt	84			70
Total long-term debt	$	2,136		$	2,112

Revolving Credit Facility

We have a $1.0 billion revolving credit facility that supports short-term funding needs and letters of credit. This facility is fully and unconditionally guaranteed by substantially all of our domestic subsidiaries. The facility will mature and the commitments thereunder will terminate in February 2016, provided that (a) at any time during the six-month period ending November 29, 2013, we have corporate credit ratings not lower than BBB- and Baa3 from Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. (S&P), and Moody’s Investors Service, Inc. (Moody’s), respectively, in each case with stable outlook or better, (b) on or prior to November 29, 2013, we have refinanced, purchased, or defeased the 2014 Notes, or (c) we have irrevocably deposited cash in an amount not less than the aggregate principal amount of the outstanding 2014 Notes on or prior to November 29, 2013, in a blocked cash collateral account. In the event none of the foregoing events have occurred, the loans made under this facility will mature and the commitments thereunder will terminate on November 29, 2013. As of March 31, 2012, none of the foregoing events have occurred.

After reducing the amount available by outstanding letters of credit issued under this facility, the amount available for borrowing under this facility at March 31, 2012, was $955 million. At March 31, 2012, we had outstanding letters of credit issued under this facility totaling $45 million, none of which were drawn upon. We had an additional $150 million of bilateral letters of credit issued separately from the revolving credit facility, none of which were drawn upon. Our letters of credit are issued primarily in support of workers’ compensation insurance programs, derivative activities and Dynamic Fuels’ Gulf Opportunity Zone tax-exempt bonds.

2013 Notes

In September 2008, we issued $458 million principal amount 3.25% convertible senior unsecured notes due October 15, 2013, with interest payable semi-annually in arrears on April 15 and October 15. The conversion rate initially is 59.1935 shares of Class A stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of $16.89 per share of Class A stock. The 2013 Notes may be converted before the close of business on July 12, 2013, only under the following circumstances:

•

during any fiscal quarter after December 27, 2008, if the last reported sale price of our Class A stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is at least 130% of the applicable conversion price on each applicable trading day (which would currently require our shares to trade at or above $21.96); or


•	during the five business days after any 10 consecutive trading days (measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A stock and the applicable conversion rate on each such day; or


•	upon the occurrence of specified corporate events as defined in the supplemental indenture.

On and after July 15, 2013, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, we will deliver cash up to the aggregate principal amount of the 2013 Notes to be converted and shares of our Class A stock in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the 2013 Notes being converted. As of March 31, 2012, none of the conditions permitting conversion of the 2013 Notes had been satisfied.

The 2013 Notes were originally accounted for as a combined instrument because the conversion feature did not meet the requirements to be accounted for separately as a derivative financial instrument. However, we adopted new accounting guidance in the first quarter of fiscal 2010 and applied it retrospectively to all periods presented. This new accounting guidance required us to separately account for the liability and equity conversion features. Upon retrospective adoption, our effective interest rate on the 2013 Notes was determined to be 8.26%, which resulted in the recognition of a $92 million discount to these notes with the offsetting after tax amount of $56 million recorded to capital in excess of par value. This discount is being accreted over the five-year term of the convertible notes at the effective interest rate.

In connection with the issuance of the 2013 Notes, we entered into separate convertible note hedge transactions with respect to our Class A stock to minimize the potential economic dilution upon conversion of the 2013 Notes. We also entered into separate warrant transactions. We recorded the purchase of the note hedge transactions as a reduction to capital in excess of par value, net of $36 million pertaining to the related deferred tax asset, and we recorded the proceeds of the warrant transactions as an increase to capital in excess of par value. Subsequent changes in fair value of these instruments are not recognized in the financial statements as long as the instruments continue to meet the criteria for equity classification.

We purchased call options in private transactions for $94 million that permit us to acquire up to approximately 27 million shares of our Class A stock at an initial strike price of $16.89 per share, subject to adjustment. The call options allow us to acquire a number of shares of our Class A stock initially equal to the number of shares of Class A stock issuable to the holders of the 2013 Notes upon conversion. These call options will terminate upon the maturity of the 2013 Notes.

We sold warrants in private transactions for total proceeds of $44 million. The warrants permit the purchasers to acquire up to approximately 27 million shares of our Class A stock at an initial exercise price of $22.31 per share, subject to adjustment. The warrants are exercisable on various dates from January 2014 through March 2014.

The maximum amount of shares that may be issued to satisfy the conversion of the 2013 Notes is limited to 35.9 million shares. However, the convertible note hedge and warrant transactions, in effect, increase the initial conversion price of the 2013 Notes from $16.89 per share to $22.31 per share, thus reducing the potential future economic dilution associated with conversion of the 2013 Notes. If our share price is below $22.31 upon conversion of the 2013 Notes, there is no economic net share impact. Upon conversion, a 10% increase in our share price above the $22.31 conversion price would result in the issuance of 2.5 million incremental shares. The 2013 Notes and the warrants could have a dilutive effect on our earnings per share to the extent the price of our Class A stock during a given measurement period exceeds the respective exercise prices of those instruments. The call options are excluded from the calculation of diluted earnings per share as their impact is anti-dilutive.

2016 Notes

The 2016 Notes carried an interest rate at issuance of 6.60%, with an interest step up feature dependent on their credit rating. On February 24, 2011, S&P upgraded the credit rating of these notes from “BB+” to “BBB-.” On March 29, 2011, Moody’s upgraded the credit rating of these notes from “Ba2” to “Ba1”. These upgrades decreased the interest rate on the 2016 Notes from 7.35% to 6.85%, effective beginning with the six-month interest payment due April 1, 2011.

GO Zone Tax-Exempt Bonds

In October 2008, Dynamic Fuels received $100 million in proceeds from the sale of Gulf Opportunity Zone tax-exempt bonds made available by the federal government to the regions affected by Hurricanes Katrina and Rita in 2005. These floating rate bonds are due October 1, 2033. In November 2008, we entered into an interest rate swap related to these bonds to mitigate our interest rate risk on a portion of the bonds for five years. We also issued a letter of credit as a guarantee for the entire bond issuance.

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; pay dividends or make other payments in respect of our capital stock; amend material documents; change the nature of our business; make certain payments of debt; engage in certain transactions with affiliates; and enter into sale/leaseback or hedging transactions, in each case, subject to certain qualifications and exceptions. In addition, we are required to maintain minimum interest expense coverage and maximum leverage ratios.

Our 2014 Notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: incur additional debt and issue preferred stock; make certain investments and restricted payments; create liens; create restrictions on distributions from subsidiaries; engage in specified sales of assets and subsidiary stock; enter into transactions with affiliates; enter new lines of business; engage in consolidation, mergers and acquisitions; and engage in certain sale/leaseback transactions.

We were in compliance with all debt covenants at March 31, 2012.

Income Taxes

INCOME TAXES

The effective tax rate was 35.3% and 34.9% for the second quarter of fiscal years 2012 and 2011, respectively. The effective tax rate was 35.5% and 34.3% for the six months of fiscal years 2012 and 2011, respectively. The effective tax rate for the second quarter and six months of fiscal 2012 was impacted by such items as the domestic production deduction, state income taxes, losses in foreign jurisdictions and related valuation allowances and the reduction of valuation allowances related to state net operating loss and credit carryforwards.

Unrecognized tax benefits were $171 million and $174 million at March 31, 2012, and October 1, 2011, respectively. The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $154 million and $155 million at March 31, 2012, and October 1, 2011, respectively.

We classify interest and penalties on unrecognized tax benefits as income tax expense. At March 31, 2012, and October 1, 2011, before tax benefits, we had $58 million of accrued interest and penalties on unrecognized tax benefits.

We are subject to income tax examinations for U.S. federal income taxes for fiscal years 2003 through 2010, and for foreign, state and local income taxes for fiscal years 2001 through 2010. During the next twelve months, it is reasonably possible that tax audit resolutions could reduce unrecognized tax benefits by an immaterial amount, either because tax positions are sustained on audit or because we agree to their disallowance.

Other Income And Charges

OTHER INCOME AND CHARGES

During the six months of fiscal 2012, we recorded $8 million of equity earnings in joint ventures and $6 million in net foreign currency exchange gains, which were recorded in the Consolidated Condensed Statements of Income in Other, net.

During the six months of fiscal 2011, we recorded an $11 million gain related to a sale of interests in an equity method investment. This gain was recorded in the Consolidated Condensed Statements of Income in Other, net.

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					Six Months Ended
	March 31, 2012		April 2, 2011			March 31, 2012		April 2, 2011
Numerator:
Net income	$	166	$	156		$	322	$	450
Less: Net loss attributable to noncontrolling interest	—		(3		)	—		(7		)
Net income attributable to Tyson	166		159			322		457
Less Dividends:
Class A ($0.040/share/quarter)	12		13			24		25
Class B ($0.036/share/quarter)	2		2			5		5
Undistributed earnings	$	152	$	144		$	293	$	427

Class A undistributed earnings	$	125	$	120		$	242	$	354
Class B undistributed earnings	27		24			51		73
Total undistributed earnings	$	152	$	144		$	293	$	427
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	294		305			295		305
Class B weighted average shares, and shares under the if-converted method for diluted earnings per share	70		70			70		70
Effect of dilutive securities:
Stock options and restricted stock	5		6			5		5
Convertible 2013 Notes	4		2			4		1
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	373		383			374		381
Net Income Per Share Attributable to Tyson:
Class A Basic	$	0.47	$	0.43		$	0.90	$	1.24
Class B Basic	$	0.42	$	0.39		$	0.81	$	1.12
Diluted	$	0.44	$	0.42		$	0.86	$	1.20

Approximately 4 million of our stock-based compensation shares were antidilutive for both the three and six months ended March 31, 2012, and approximately 4 million of our stock-based compensation shares were antidilutive for both the three and six months ended April 2, 2011. These shares were not included in the dilutive 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 Instruments

DERIVATIVE FINANCIAL INSTRUMENTS

Our business operations give rise to certain market risk exposures mostly due to changes in commodity prices, foreign currency exchange rates and interest rates. We manage a portion of these risks through the use of derivative financial instruments, primarily futures and options, to reduce our exposure to commodity price risk, foreign currency risk and interest rate risk. Forward contracts on various commodities, including grains, livestock and energy, are primarily entered into to manage the price risk associated with forecasted purchases of these inputs used in our production processes. Foreign exchange forward contracts are entered into to manage the fluctuations in foreign currency exchange rates, primarily as a result of certain receivable and payable balances. We also periodically utilize interest rate swaps to manage interest rate risk associated with our variable-rate borrowings.

Our risk management programs are periodically reviewed by our Board of Directors’ Audit Committee. These programs are monitored by senior management and may be revised as market conditions dictate. Our current risk management programs utilize industry-standard models that take into account the implicit cost of hedging. Risks associated with our market risks and those created by derivative instruments and the fair values are strictly monitored, using Value-at-Risk and stress tests. Credit risks associated with our derivative contracts are not significant as we minimize counterparty concentrations, utilize margin accounts or letters of credit, and deal with credit-worthy counterparties. Additionally, our derivative contracts are mostly short-term in duration and we generally do not make use of credit-risk-related contingent features. No significant concentrations of credit risk existed at March 31, 2012.

We recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated Condensed Balance Sheets, with the exception of normal purchases and normal sales expected to result in physical delivery. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged (i.e., fair value hedge, cash flow hedge, or hedge of a net investment in a foreign operation). We qualify, or designate, a derivative financial instrument as a hedge when contract terms closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. If a derivative instrument is accounted for as a hedge, depending on the nature of the hedge, changes in the fair value of the instrument either will be offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings, or be recognized in other comprehensive income (loss) (OCI) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is recognized in earnings immediately. We designate certain forward and option contracts as follows:


•	Cash Flow Hedges – include certain commodity forward and option contracts of forecasted purchases (i.e., grains) and certain foreign exchange forward contracts.


•	Fair Value Hedges – include certain commodity forward contracts of forecasted purchases (i.e., livestock).


•	Net Investment Hedges – include certain foreign currency forward contracts of permanently invested capital in certain foreign subsidiaries.

Cash flow hedges

Derivative instruments, such as futures and options, are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes. We do not purchase forward and option commodity contracts in excess of our physical consumption requirements and generally do not hedge forecasted transactions beyond 18 months. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchase of those commodities. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant for the three and six months ended March 31, 2012, and April 2, 2011.

We had the following aggregated notionals of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons):



	Metric	March 31, 2012		October 1, 2011
Commodity:
Corn	Bushels	12		6
Soy meal	Tons	81,300		82,300
Foreign Currency	United States dollar	$	78	$	75

As of March 31, 2012, the net amounts expected to be reclassified into earnings within the next 12 months related to grain and foreign currency are not significant. During the three and six months ended March 31, 2012, and April 2, 2011, we did not reclassify significant pretax gains/losses into earnings as a result of the discontinuance of cash flow hedges due to the probability the original forecasted transaction would not occur by the end of the originally specified time period or within the additional period of time allowed by generally accepted accounting principles.

The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions):



	Gain/(Loss) Recognized in OCI On Derivatives					Consolidated Condensed Statements of Income Classification	Gain/(Loss) Reclassified from OCI to Earnings
	Three Months Ended						Three Months Ended
	March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Cash Flow Hedge – Derivatives designated as hedging instruments:
Commodity contracts	$	4		$	3	Cost of Sales	$	(10	)	$	6
Foreign exchange contracts	(2		)	—		Other Income/Expense	—			—
Total	$	2		$	3		$	(10	)	$	6



	Gain/(Loss) Recognized in OCI On Derivatives					Consolidated Condensed Statements of Income Classification	Gain/(Loss) Reclassified from OCI to Earnings
	Six Months Ended						Six Months Ended
	March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Cash Flow Hedge – Derivatives designated as hedging instruments:
Commodity contracts	$	6		$	28	Cost of Sales	$	(16	)	$	26
Foreign exchange contracts	(7		)	—		Other Income/Expense	5			—
Total	$	(1	)	$	28		$	(11	)	$	26

Fair value hedges

We designate certain futures contracts as fair value hedges of firm commitments to purchase livestock for slaughter. Our objective of these hedges is to minimize the risk of changes in fair value created by fluctuations in commodity prices associated with fixed price livestock firm commitments. We had the following aggregated notionals of outstanding forward contracts entered into to hedge forecasted commodity purchases which are accounted for as a fair value hedge (in millions):



	Metric	March 31, 2012	October 1, 2011
Commodity:
Live Cattle	Pounds	322	318
Lean Hogs	Pounds	444	601

For these derivative instruments we designate and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in earnings in the same period. We include the gain or loss on the hedged items (i.e., livestock purchase firm commitments) in the same line item, Cost of Sales, as the offsetting gain or loss on the related livestock forward position.



										in millions
	Consolidated Condensed Statements of Income Classification	Three Months Ended						Six Months Ended
	Consolidated Condensed Statements of Income Classification	March 31, 2012			April 2, 2011			March 31, 2012		April 2, 2011
Gain/(Loss) on forwards	Cost of Sales	$	8		$	(43	)	$	—	$	(44	)
Gain/(Loss) on purchase contract	Cost of Sales	(8		)	43			—		44

Ineffectiveness related to our fair value hedges was not significant for the three and six months ended March 31, 2012, and April 2, 2011.

Foreign net investment hedges

We utilize forward foreign exchange contracts to protect the value of our net investments in certain foreign subsidiaries. For derivative instruments that are designated and qualify as a hedge of a net investment in a foreign currency, the gain or loss is reported in OCI as part of the cumulative translation adjustment to the extent it is effective, with the related amounts due to or from counterparties included in other liabilities or other assets. We utilize the forward-rate method of assessing hedge effectiveness. Any ineffective portions of net investment hedges are recognized in the Consolidated Condensed Statements of Income during the period of change. Ineffectiveness related to our foreign net investment hedges was not significant for the three and six months ended March 31, 2012, and April 2, 2011. At March 31, 2012, and October 1, 2011, we had $27 million and $35 million aggregate outstanding notionals related to our forward foreign currency contracts accounted for as foreign net investment hedges.

The following table sets forth the pretax impact of these derivative instruments on the Consolidated Condensed Statements of Income (in millions):



	Gain/(Loss) Recognized in OCI On Derivatives						Consolidated Condensed Statements of Income Classification	Gain/(Loss) Reclassified from OCI to Earnings
	Three Months Ended							Three Months Ended
	March 31, 2012			April 2, 2011				March 31, 2012		April 2, 2011
Net Investment Hedge – Derivatives designated as hedging instruments:
Foreign exchange contracts	$	(1	)	$	(2	)	Other Income/Expense	$	—	$	—



	Gain/(Loss) Recognized in OCI On Derivatives						Consolidated Condensed Statements of Income Classification	Gain/(Loss) Reclassified from OCI to Earnings
	Six Months Ended							Six Months Ended
	March 31, 2012			April 2, 2011				March 31, 2012		April 2, 2011
Net Investment Hedge – Derivatives designated as hedging instruments:
Foreign exchange contracts	$	(2	)	$	(3	)	Other Income/Expense	$	—	$	—

Undesignated positions

In addition to our designated positions, we also hold forward and option contracts for which we do not apply hedge accounting. These include certain derivative instruments related to commodities price risk, including grains, livestock and energy, foreign currency risk and interest rate risk. We mark these positions to fair value through earnings at each reporting date. We generally do not enter into undesignated positions beyond 18 months.

The objective of our undesignated grains, energy and livestock commodity positions is to reduce the variability of cash flows associated with the forecasted purchase of certain grains, energy and livestock inputs to our production processes. We also enter into certain forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs at fixed prices. The fixed price sales contracts lock in the proceeds from a sale in the future and the fixed cattle and hog purchases lock in the cost. However, the cost of the livestock and the related boxed beef and boxed pork market prices at the time of the sale or purchase could vary from this fixed price. As we enter into fixed forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs, we also enter into the appropriate number of livestock option and future positions to mitigate a portion of this risk. Changes in market value of the open livestock futures positions are marked to market and reported in earnings at each reporting date, even though the economic impact of our fixed prices being above or below the market price is only realized at the time of sale or purchase. These positions generally do not qualify for hedge treatment due to location basis differences between the commodity exchanges and the actual locations when we purchase the commodities.

We have a foreign currency cash flow hedging program to hedge portions of forecasted transactions denominated in foreign currencies, primarily with forward and option contracts, to protect against the reduction in value of forecasted foreign currency cash flows. Our undesignated foreign currency positions generally would qualify for cash flow hedge accounting. However, to reduce earnings volatility, we normally will not elect hedge accounting treatment when the position provides an offset to the underlying related transaction that currently impacts earnings.

The objective of our undesignated interest rate swap is to manage interest rate risk exposure on a floating-rate bond. Our interest rate swap agreement effectively modifies our exposure to interest rate risk by converting a portion of the floating-rate bond to a fixed rate basis for the first five years, thus reducing the impact of the interest-rate changes on future interest expense. This interest rate swap does not qualify for hedge treatment due to differences in the underlying bond and swap contract interest-rate indices.

We had the following aggregate outstanding notionals related to our undesignated positions (in millions, except soy meal tons) :



	Metric	March 31, 2012		October 1, 2011
Commodity:
Corn	Bushels	4		17
Soy Meal	Tons	33,700		174,600
Soy Oil	Pounds	6		13
Live Cattle	Pounds	120		72
Lean Hogs	Pounds	129		19
Foreign Currency	United States dollars	$	68	$	110
Interest Rate	Average monthly notional debt	$	34	$	39

The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Condensed Statements of Income (in millions):



	Consolidated Condensed Statements of Income Classification	Gain/(Loss) Recognized in Earnings						Gain/(Loss) Recognized in Earnings
		Three Months Ended						Six Months Ended
		March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Derivatives not designated as hedging instruments:
Commodity contracts	Sales	$	(6	)	$	17		$	(9	)	$	31
Commodity contracts	Cost of Sales	29			(10		)	58			11
Foreign exchange contracts	Other Income/Expense	(3		)	(6		)	—			(7		)
Total		$	20		$	1		$	49		$	35

The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions):



	Fair Value
	March 31, 2012		October 1, 2011
Derivative Assets:
Derivatives designated as hedging instruments:
Commodity contracts	$	51	$	3
Foreign exchange contracts	—		12
Total derivative assets – designated	51		15
Derivatives not designated as hedging instruments:
Commodity contracts	20		21
Foreign exchange contracts	1		5
Total derivative assets – not designated	21		26

Total derivative assets	$	72	$	41
Derivative Liabilities:
Derivatives designated as hedging instruments:
Commodity contracts	$	1	$	41
Foreign exchange contracts	1		—
Total derivative liabilities – designated	2		41
Derivatives not designated as hedging instruments:
Commodity contracts	59		121
Foreign exchange contracts	—		1
Interest rate contracts	1		2
Total derivative liabilities – not designated	60		124

Total derivative liabilities	$	62	$	165

Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. See Note 10: Fair Value Measurements for a reconciliation to amounts reported in the Consolidated Condensed Balance Sheets in Other current assets and Other current liabilities.

Fair Value Measurements

FAIR VALUE MEASUREMENTS

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):



March 31, 2012	Level 1		Level 2		Level 3		Netting (a)			Total
Assets:
Commodity Derivatives	$	—	$	71	$	—	$	(50	)	$	21
Foreign Exchange Forward Contracts	—		1		—		(1		)	—
Available for Sale Securities:
Debt securities	—		32		79		—			111
Equity securities	8		—		—		—			8
Deferred Compensation Assets	28		150		—		—			178
Total Assets	$	36	$	254	$	79	$	(51	)	$	318
Liabilities:
Commodity Derivatives	$	—	$	60	$	—	$	(60	)	$	—
Foreign Exchange Forward Contracts	—		1		—		(1		)	—
Interest Rate Swap	—		1		—		—			1
Total Liabilities	$	—	$	62	$	—	$	(61	)	$	1



October 1, 2011	Level 1		Level 2		Level 3		Netting (a)			Total
Assets:
Commodity Derivatives	$	—	$	24	$	—	$	(21	)	$	3
Foreign Exchange Forward Contracts	—		17		—		(2		)	15
Available for Sale Securities:
Debt securities	—		34		83		—			117
Equity securities	7		—		—		—			7
Deferred Compensation Assets	28		122		—		—			150
Total Assets	$	35	$	197	$	83	$	(23	)	$	292
Liabilities:
Commodity Derivatives	$	—	$	162	$	—	$	(135	)	$	27
Foreign Exchange Forward Contracts	—		1		—		(1		)	—
Interest Rate Swap	—		2		—		—			2
Total Liabilities	$	—	$	165	$	—	$	(136	)	$	29

(a)

Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At March 31, 2012, and October 1, 2011, we had posted with various counterparties $10 million and $113 million, respectively, of cash collateral and held no cash collateral.

The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions):



	Six Months Ended
	March 31, 2012			April 2, 2011
Balance at beginning of year	$	83		$	73
Total realized and unrealized gains (losses):
Included in earnings	1			—
Included in other comprehensive income (loss)	—			—
Purchases	12			9
Issuances	—			—
Settlements	(17		)	(9		)
Balance at end of period	$	79		$	73
Total gains (losses) for the six-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 derivatives, including commodities, foreign exchange contracts and an interest rate swap, primarily include exchange-traded and over-the-counter contracts which are further described in Note 9: Derivative Financial Instruments. We record our commodity derivatives at fair value using quoted market prices adjusted for credit and non-performance risk and internal models that use as their basis readily observable market inputs including current and forward commodity market prices. Our foreign exchange forward contracts are recorded at fair value based on quoted prices and spot and forward currency prices adjusted for credit and non-performance risk. Our interest rate swap is recorded at fair value based on quoted LIBOR swap rates adjusted for credit and non-performance risk. We classify these instruments in Level 2 when quoted market prices can be corroborated utilizing observable current and forward commodity market prices on active exchanges, observable market transactions of spot currency rates and forward currency prices or observable benchmark market rates at commonly quoted intervals.

Available for Sale Securities: Our investments in marketable debt securities are classified as available-for-sale and are included in Other Assets in the Consolidated Condensed Balance Sheets. These investments, which are generally long-term in nature with maturities ranging up to 35 years, are reported at fair value based on pricing models and quoted market prices adjusted for credit and non-performance risk. We classify our investments in U.S. government and agency 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 and asset-backed 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. We also classify privately held redeemable preferred stock securities as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and credit worthiness of the underlying private issuer. Significant changes to assumptions or unobservable inputs in the valuation of our Level 3 instruments would not have a significant impact to our consolidated financial statements.

Additionally, we have eight million shares of Syntroleum Corporation common stock and 4.25 million warrants, which expire in early fiscal 2014, to purchase an equivalent amount of Syntroleum Corporation common stock at an average price of $2.87. We record the shares and warrants in Other Assets in the Consolidated Condensed Balance Sheets at fair value based on quoted market prices. We classify the shares as Level 1 as the fair value is based on unadjusted quoted prices available in active markets. We classify the warrants as Level 2 as fair value can be corroborated based on observable market data.



(in millions)	March 31, 2012							October 1, 2011
	Amortized Cost Basis		Fair Value		Unrealized Gain/(Loss)			Amortized Cost Basis		Fair Value		Unrealized Gain/(Loss)
Available for Sale Securities:
Debt Securities:
U.S. Treasury and Agency	$	31	$	32	$	1		$	33	$	34	$	1
Corporate and Asset-Backed (a)	58		60		2			54		56		2
Redeemable Preferred Stock	19		19		—			27		27		—
Equity Securities:
Common Stock	9		8		(1		)	9		7		(2		)


(a)	At March 31, 2012, and October 1, 2011, the amortized cost basis for Corporate and Asset-Backed debt securities had been reduced by accumulated other than temporary impairments of $2 million and $3 million, respectively.

Unrealized holding gains (losses), net of tax, are excluded from earnings and reported in OCI until the security is settled or sold. On a quarterly basis, we evaluate whether losses related to our available-for-sale securities are temporary in nature. Losses on equity securities are recognized in earnings if the decline in value is judged to be other than temporary. If losses related to our debt securities are determined to be other than temporary, the loss would be recognized in earnings if we intend, or more likely than not will be required, to sell the security prior to recovery. For debt securities in which we have the intent and ability to hold until maturity, losses determined to be other than temporary would remain in OCI, other than expected credit losses which are recognized in earnings. We consider many factors in determining whether a loss is temporary, including the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. We recognized no other than temporary impairments in earnings for the three and six months ending March 31, 2012, and April 2, 2011. No other than temporary losses were deferred in OCI as of March 31, 2012, and October 1, 2011.

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 assets are included in earnings.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the three and six months ended March 31, 2012, and April 2, 2011.

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):



	March 31, 2012				October 1, 2011
	Fair Value		Carrying Value		Fair Value		Carrying Value
Total Debt	$	2,451	$	2,220	$	2,334	$	2,182

Comprehensive Income

COMPREHENSIVE INCOME

The components of comprehensive income are as follows (in millions):



	Three Months Ended					Six Months Ended
	March 31, 2012		April 2, 2011			March 31, 2012			April 2, 2011
Net income	$	166	$	156		$	322		$	450
Other comprehensive income (loss), net of tax:
Net hedging unrealized (gain) loss reclassified to earnings	6		(4		)	7			(17		)
Net hedging unrealized gain (loss)	1		2			(1		)	14
Unrealized gain on investments	—		2			1			—
Currency translation adjustment	27		24			30			19
Postretirement benefits reserve adjustments	1		1			2			1
Total comprehensive income	201		181			361			467
Comprehensive loss attributable to noncontrolling interest	—		(3		)	—			(7		)
Total comprehensive income attributable to Tyson	$	201	$	184		$	361		$	474

The related tax effects allocated to the components of comprehensive income are as follows (in millions):



	Three Months Ended					Six Months Ended
	March 31, 2012		April 2, 2011			March 31, 2012		April 2, 2011
Income tax expense (benefit):
Net hedging unrealized (gain) loss reclassified to earnings	$	4	$	(2	)	$	4	$	(9	)
Net hedging unrealized gain	1		1			—		14
Unrealized gain on investments	—		—			1		—
Total income tax expense	$	5	$	(1	)	$	5	$	5

Segment Reporting

SEGMENT REPORTING

We operate in four segments: Chicken, Beef, Pork and Prepared Foods. We measure segment profit as operating income (loss).

Chicken: Chicken operations include breeding and raising chickens, as well as processing live chickens into fresh, frozen and value-added chicken products and logistics operations to move products through the supply chain. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets. It also includes sales from allied products and our chicken breeding stock subsidiary.

Beef: Beef operations include processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. 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. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets. Allied products are marketed to manufacturers of pharmaceuticals and technical products.

Pork: Pork operations include processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. This segment also includes our live swine group, related allied product processing activities and logistics operations to move products through the supply chain. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets. We sell allied products to pharmaceutical and technical products manufacturers, as well as a limited number of live swine to pork processors.

Prepared Foods: Prepared Foods operations include manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. Products include pepperoni, bacon, beef and pork pizza toppings, pizza crusts, flour and corn tortilla products, appetizers, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international markets.

The results from Dynamic Fuels are included in Other.

Information on segments and a reconciliation to income before income taxes are as follows (in millions):



	Three Months Ended						Six Months Ended
	March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Sales:
Chicken	$	2,911		$	2,739		$	5,673		$	5,358
Beef	3,369			3,333			6,836			6,518
Pork	1,372			1,384			2,847			2,622
Prepared Foods	807			778			1,668			1,584
Other	46			25			100			33
Intersegment Sales	(237		)	(259		)	(527		)	(500		)
Total Sales	$	8,268		$	8,000		$	16,597		$	15,615
Operating Income (Loss):
Chicken	$	145		$	37		$	177		$	218
Beef	(1		)	94			30			210
Pork	115			146			280			323
Prepared Foods	44			31			95			59
Other	(1		)	(5		)	(2		)	(9		)
Total Operating Income	302			303			580			801

Total Other (Income) Expense	45			62			80			115			(a)

Income before Income Taxes	$	257		$	241		$	500		$	686


(a)	Includes $11 million gain related to a sale of interests in an equity method investment.

The Beef segment had sales of $49 million and $51 million in the second quarter of fiscal years 2012 and 2011, respectively, and sales of $113 million and $101 million in the six months of fiscal years 2012 and 2011, respectively, from transactions with other operating segments of the Company and Dynamic Fuels. The Pork segment had sales of $188 million and $208 million in the second quarter of fiscal years 2012 and 2011, respectively, and sales of $414 million and $399 million in the six months of fiscal 2012 and 2011, respectively, from transactions with other operating segments of the Company. The aforementioned sales from intersegment transactions, which were at market prices, were included in the segment sales in the above table.

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

Commitments

We guarantee obligations of certain outside third parties, which consists primarily of a lease and grower loans, all of which are substantially collateralized by the underlying assets. Terms of the underlying debt cover periods up to ten years, and the maximum potential amount of future payments as of March 31, 2012, was $82 million. We also maintain operating leases for various types of equipment, some of which contain residual value guarantees for the market value of the underlying leased assets at the end of the term of the lease. The remaining terms of the lease maturities cover periods over the next seven years. The maximum potential amount of the residual value guarantees is $60 million, of which $54 million would 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 March 31, 2012, and October 1, 2011, no material liabilities for guarantees were recorded.

We have cash flow assistance programs in which certain livestock suppliers participate. Under these programs, we pay an amount for livestock equivalent to a standard cost to grow such livestock during periods of low market sales prices. The amounts of such payments that are in excess of the market sales price are recorded as receivables and accrue interest. Participating suppliers are obligated to repay these receivables balances when market sales prices exceed this standard cost, or upon termination of the agreement. Our maximum obligation associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets. The potential maximum obligation as of March 31, 2012, was approximately $220 million. The total receivables under these programs were $23 million and $28 million at March 31, 2012, and October 1, 2011, respectively, and are included, net of allowance for uncollectible amounts, in Accounts Receivable and Other Assets at March 31, 2012, and October 1, 2011, respectively, 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 recorded an allowance for these programs’ estimated uncollectible receivables of $9 million and $10 million at March 31, 2012, and October 1, 2011, respectively.

Contingencies

We are involved in various claims and legal proceedings. We routinely assess the likelihood of adverse judgments or outcomes to those matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. We record accruals for such matters to the extent that we conclude a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. Such accruals are reflected in the Company’s consolidated condensed financial statements. In our opinion, we have made appropriate and adequate accruals for these matters and believe the probability of a material loss beyond the amounts accrued to be remote; however, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the consolidated condensed financial condition or results of operations. Listed below are certain claims made against the Company and/or our subsidiaries for which the potential exposure is considered material to the Company’s consolidated condensed financial statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters.

We have pending against us a lawsuit styled DeAsencio v. Tyson Foods, Inc. (E. Dist. Pennsylvania, August 22, 2000) in which the plaintiffs allege that we failed to compensate certain poultry plant employees for the time it takes to engage in pre- and post-shift activities such as changing into and out of protective and sanitary clothing and walking to and from the changing area, work areas and break areas in violation of the Federal Labor Standards Act (FLSA). They seek back wages, liquidated damages, pre- and post-judgment interest, and attorneys’ fees. Plaintiffs appealed a jury verdict and final judgment entered in our favor on June 22, 2006. On September 7, 2007, the U.S. Court of Appeals for the Third Circuit reversed the jury verdict and remanded the case to the District Court for further proceedings. We sought rehearing en banc, which was denied by the Court of Appeals on October 5, 2007. The United States Supreme Court denied our petition for a writ of certiorari on June 9, 2008. The new trial date has not been set.

We have pending twelve separate wage and hour actions involving Tyson Fresh Meats Inc.’s plants located in Lexington, Nebraska (Lopez, et al. v. Tyson Foods, Inc., D. Nebraska, June 30, 2006), Garden City and Emporia, Kansas (Garcia, et al. v. Tyson Foods, Inc., Tyson Fresh Meats, Inc., D. Kansas, May 15, 2006), Storm Lake, Iowa (Bouaphakeo (f/k/a Sharp), et al. v. Tyson Foods, Inc., N.D. Iowa, February 6, 2007), Columbus Junction, Iowa (Guyton (f/k/a Robinson), et al. v. Tyson Foods, Inc., d.b.a Tyson Fresh Meats, Inc., S.D. Iowa, September 12, 2007), Joslin, Illinois (Murray, et al. v. Tyson Foods, Inc., C.D. Illinois, January 2, 2008; and DeVoss v. Tyson Foods, Inc. d.b.a. Tyson Fresh Meats, C.D. Illinois, March 2, 2011), Dakota City, Nebraska (Gomez, et al. v. Tyson Foods, Inc., D. Nebraska, January 16, 2008), Madison, Nebraska (Acosta, et al. v Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., D. Nebraska, February 29, 2008), Perry and Waterloo, Iowa (Edwards, et al. v. Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., S.D. Iowa, March 20, 2008); Council Bluffs, Iowa (Maxwell (f/k/a Salazar), et al. v. Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., S.D. Iowa, April 29, 2008); Logansport, Indiana (Carter, et al. v. Tyson Foods, Inc. and Tyson Fresh Meats, Inc., N.D. Indiana, April 29, 2008); and Goodlettsville, Tennessee (Abadeer v. Tyson Foods, Inc., and Tyson Fresh Meats, Inc., M.D. Tennessee, February 6, 2009). The actions allege we failed to pay employees for all hours worked, including overtime compensation for the time it takes to change into protective work uniforms, safety equipment and other sanitary and protective clothing worn by employees, and for walking to and from the changing area, work areas and break areas in violation of the FLSA and analogous state laws. The plaintiffs seek back wages, liquidated damages, pre- and post-judgment interest, attorneys’ fees and costs. Each case is proceeding in its jurisdiction.

•

After a trial in the Garcia case, which involved the Garden City, Kansas facility, a jury verdict in favor of the plaintiffs was entered on March 17, 2011. Exclusive of pre- and post-judgment interest, attorneys’ fees and costs, the jury found violations of federal and state laws for pre- and post-shift work activities and awarded damages in the amount of $503,011, respectively. Plaintiffs’ counsel has filed an application for attorneys’ fees and expenses in the amount of $3,475,422. We contested the application and are currently evaluating our appeal options.


•	A jury trial was held in the Lopez case, which involved the Lexington, NE beef plant, and resulted in a jury verdict in favor of Tyson. Judgment was entered and the complaint was dismissed with prejudice, on May 26, 2011. Plaintiffs filed an appeal with the Eighth Circuit Court of Appeals on June 16, 2011, and oral argument is set for May 16, 2012.

•

A jury trial was held in the Bouaphakeo case, which involved the Storm Lake, Iowa pork plant and resulted in a jury verdict in favor of the plaintiffs on September 26, 2011. Exclusive of pre- and post-judgment interest, attorneys’ fees and costs, the jury found violations of federal and state laws for pre- and post-shift work activities and awarded damages in the amount of $2,892,379. On October 24, 2011, we renewed our motion for judgment as a matter of law due to a failure of class-wide proof and, in the alternative, for a new trial on damages.


•	A jury trial was held in the Guyton case, which involved the Columbus Junction, Iowa pork plant, and resulted in a jury verdict in favor of Tyson on April 25, 2012.


•	The Maxwell, Acosta, and Gomez cases are scheduled for trials on October 22, 2012, January 14, 2013, and March 18, 2013, respectively.

We have pending one wage and hour action involving our Tyson Prepared Foods plant located in Jefferson, Wisconsin (Weissman, et al. v. Tyson Prepared Foods, Inc., Jefferson County (Wisconsin) Circuit Court, October 20, 2010). The plaintiffs allege that employees should be paid for the time it takes to engage in pre- and post-shift activities such as changing into and out of protective and sanitary clothing and the associated time it takes to walk to and from their workstations post-donning and pre-doffing of protective and sanitary clothing. Six named plaintiffs seek to act as state law class representatives on behalf of all current and former employees who were allegedly not paid for time worked and seek back wages, liquidated damages, pre- and post-judgment interest, and attorneys’ fees and costs. On May 16, 2011, Plaintiffs filed a motion to certify a state law class of all hourly employees who have worked at the Jefferson plant from October 20, 2008, to the present. We have filed motions for summary judgment seeking dismissal of the claims, or, in the alternative, to limit the claims made for non-compensable clothes changing activities. The parties have agreed to attend pre-trial mediation in an effort to resolve the claims. The pre-trial mediation is scheduled for May 30, 2012. The trial date has not been set.

On June 19, 2005, the Attorney General and the Secretary of the Environment of the State of Oklahoma filed a complaint in the U.S. District Court for the Northern District of Oklahoma against us, three of our subsidiaries and six other poultry integrators. The complaint, which was subsequently amended, asserts a number of state and federal causes of action including, but not limited to, counts under Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), Resource Conservation and Recovery Act (RCRA), and state-law public nuisance theories. The amended complaint asserts that defendants and certain contract growers who are not named in the amended complaint polluted the surface waters, groundwater and associated drinking water supplies of the Illinois River Watershed (IRW) through the land application of poultry litter. Oklahoma asserts that this alleged pollution has also caused extensive injury to the environment (including soils and sediments) of the IRW and that the defendants have been unjustly enriched. Oklahoma’s claims cover the entire IRW, which encompasses more than one million acres of land and the natural resources (including lakes and waterways) contained therein. Oklahoma seeks wide-ranging relief, including injunctive relief, compensatory damages in excess of $800 million, an unspecified amount in punitive damages and attorneys’ fees. We and the other defendants have denied liability, asserted various defenses, and filed a third-party complaint that asserts claims against other persons and entities whose activities may have contributed to the pollution alleged in the amended complaint. The district court has stayed proceedings on the third party complaint pending resolution of Oklahoma’s claims against the defendants. On October 31, 2008, the defendants filed a motion to dismiss for failure to join the Cherokee Nation as a required party or, in the alternative, for judgment as a matter of law based on the plaintiffs’ lack of standing. This motion was granted in part and denied in part on July 22, 2009. In its ruling, the district court dismissed Oklahoma’s claims for cost recovery and for natural resources damages under CERCLA and for unjust enrichment under Oklahoma common law. This ruling also narrowed the scope of Oklahoma’s remaining claims by dismissing all damage claims under its causes of action for Oklahoma common law nuisance, federal common law nuisance, and Oklahoma common law trespass, leaving only its claims for injunctive relief for trial. On August 18, 2009, the Court granted partial summary judgment in favor of the defendants on Oklahoma’s claims for violations of the Oklahoma Registered Poultry Feeding Operations Act. Oklahoma later voluntarily dismissed the remainder of this claim. On September 2, 2009, the Cherokee Nation filed a motion to intervene in the lawsuit. Its motion to intervene was denied on September 15, 2009, and the Cherokee Nation filed a notice of appeal of that ruling in the Tenth Circuit Court of Appeals on September 17, 2009. A non-jury trial of the case began on September 24, 2009. At the close of Oklahoma’s case-in-chief, the Court granted the defendants’ motions to dismiss claims based on RCRA, nuisance per se, and health risks related to bacteria. The defense rested its case on January 13, 2010, and closing arguments were held on February 11, 2010. On September 21, 2010, the Court of Appeals affirmed the district court’s denial of the Cherokee Nation’s motion to intervene. On October 6, 2010, the Cherokee Nation and the State of Oklahoma filed a petition for rehearing or en banc review seeking reconsideration of this ruling. The Court of Appeals denied this petition. The district court has not yet rendered its decision from the trial, which ended in February 2010.

On May 8, 2008, a lawsuit was filed against the Company and two of our employees in the District Court of McCurtain County, Oklahoma styled Armstrong, et al. v. Tyson Foods, Inc., et al. (the Armstrong Case). The lawsuit was brought by a group of 52 poultry growers who allege that certain of our live production practices in Oklahoma constitute fraudulent inducement, fraud, unjust enrichment, negligence, gross negligence, unconscionability, violations of the Oklahoma Business Sales Act, Deceptive Trade Practice violations, violations of the Consumer Protection Act, and conversion, as well as other theories of recovery. The plaintiffs sought damages in an unspecified amount. On October 30, 2009, 20 additional growers represented by the same attorney filed a lawsuit against us in the same court asserting the same or similar claims, which is styled Clardy, et al. v. Tyson Foods, Inc., et al. (the Clardy Case). In both of these cases we have denied all allegations of wrongdoing. In June 2009, the plaintiffs in the Armstrong case requested an expedited trial date for a smaller group of plaintiffs they claimed were facing imminent financial peril. The Court ultimately severed a group of 10 plaintiffs from the Armstrong Case, and a trial began on March 15, 2010. On April 1, 2010, the jury returned a verdict against us and one of our employees, and on April 2, 2010, the Court entered a judgment in the amount of $8,655,735, which included punitive damages. Subsequent to the trial, the presiding judge disqualified from the cases and the Oklahoma Supreme Court appointed a new judge to the cases. Following this appointment, the trial court granted our motions for change of venue and to stay all future trials of plaintiffs in the Armstrong Case and the Clardy Case pending the outcome of our appeal of the initial Armstrong Case verdict. The trial court took under advisement the sizes of groupings of plaintiffs in future trials in response to our motion to sever the plaintiffs' claims into individual cases. We appealed the initial Armstrong Case verdict to the Oklahoma Supreme Court based on numerous irregularities and rulings during the trial, and the Oklahoma Supreme Court reversed the verdict and remanded the case back to the trial court. At this time, new trial dates in the Armstrong Case have not been scheduled, nor have trial dates for the Clardy Case.

In late 2010, the United States Environmental Protection Agency (EPA) Region 7 began a Clean Air Act investigation of the company related to operation and maintenance of ammonia refrigeration equipment at multiple facilities. The EPA subsequently referred the matter, which involves allegations of potential non-compliance with the Clean Air Act’s Risk Management Plan requirements at 15 Tyson facilities in Kansas, Missouri, Iowa and Nebraska, to the United States Department of Justice (DOJ). The EPA and DOJ have indicated they will seek monetary penalties and injunctive relief requiring equipment and infrastructure changes at several facilities. Currently we are engaged in settlement discussions with the EPA and DOJ.

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

Tyson Fresh Meats, Inc. (TFM Parent), our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. TFM Parent and substantially all of our wholly-owned domestic subsidiaries fully guarantee the 2014 Notes. In the event the 2014 Notes are rated equal to or higher than BBB- and Baa3 by S&P and Moody’s, respectively, the guarantees will be suspended. Following a suspension of the guarantees, if the 2014 Notes are rated lower than BBB- or Baa3 by S&P or Moody’s, respectively, the guarantees will be reinstated. As of March 31, 2012, the 2014 Notes were rated BBB- and Ba1 by S&P and Moody’s, respectively; therefore, the condition for suspension of the guarantees had not been met. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc. (TFI Parent); TFM Parent; the other 2014 Notes’ guarantor subsidiaries (Guarantors) on a combined basis; the elimination entries necessary to reflect TFM Parent and the Guarantors, which collectively represent the 2014 Notes’ total guarantor subsidiaries (2014 Guarantors), on a combined basis; the 2014 Notes’ non-guarantor subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, the 2014 Guarantors and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor(s).



Condensed Consolidating Statement of Income for the three months ended March 31, 2012																			in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations			Subtotal			Non- Guar- antors			Elimin- ations			Total
Sales	$	76		$	4,620		$	3,457		$	(222	)	$	7,855		$	410		$	(73	)	$	8,268
Cost of Sales	(16		)	4,469			3,199			(228		)	7,440			374			(65		)	7,733
Gross Profit	92			151			258			6			415			36			(8		)	535
Selling, General and Administrative	9			57			147			6			210			22			(8		)	233
Operating Income	83			94			111			—			205			14			—			302
Other (Income) Expense:
Interest expense, net	2			24			22			—			46			(1		)	—			47
Other, net	(1		)	—			(2		)	—			(2		)	1			—			(2		)
Equity in net earnings of subsidiaries	(107		)	(29		)	5			26			2			(4		)	109			—
Total Other (Income) Expense	(106		)	(5		)	25			26			46			(4		)	109			45
Income (Loss) before Income Taxes	189			99			86			(26		)	159			18			(109		)	257
Income Tax Expense	23			24			31			—			55			13			—			91
Net Income (Loss)	166			75			55			(26		)	104			5			(109		)	166
Less: Net Loss Attributable to Noncontrolling Interest	—			—			—			—			—			—			—			—
Net Income (Loss) Attributable to Tyson	$	166		$	75		$	55		$	(26	)	$	104		$	5		$	(109	)	$	166



Condensed Consolidating Statement of Income for the three months ended April 2, 2011																			in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations			Subtotal			Non- Guar- antors			Elimin- ations			Total
Sales	$	10		$	4,609		$	3,302		$	(264	)	$	7,647		$	347		$	(4	)	$	8,000
Cost of Sales	(8		)	4,327			3,089			(264		)	7,152			327			(4		)	7,467
Gross Profit	18			282			213			—			495			20			—			533
Selling, General and Administrative	9			51			150			—			201			20			—			230
Operating Income	9			231			63			—			294			—			—			303
Other (Income) Expense:
Interest expense, net	27			23			13			—			36			(3		)	—			60
Other, net	4			—			(1		)	—			(1		)	(1		)	—			2
Equity in net earnings of subsidiaries	(168		)	(29		)	(3		)	24			(8		)	(4		)	180			—
Total Other (Income) Expense	(137		)	(6		)	9			24			27			(8		)	180			62
Income (Loss) before Income Taxes	146			237			54			(24		)	267			8			(180		)	241
Income Tax (Benefit) Expense	(13		)	72			13			—			85			13			—			85
Net Income (Loss)	159			165			41			(24		)	182			(5		)	(180		)	156
Less: Net Loss Attributable to Noncontrolling Interest	—			—			—			—			—			(3		)	—			(3		)
Net Income (Loss) Attributable to Tyson	$	159		$	165		$	41		$	(24	)	$	182		$	(2	)	$	(180	)	$	159



Condensed Consolidating Statement of Income for the six months ended March 31, 2012																			in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations			Subtotal			Non- Guar- antors			Elimin- ations			Total
Sales	$	128		$	9,461		$	6,764		$	(505	)	$	15,720		$	864		$	(115	)	$	16,597
Cost of Sales	(8		)	9,111			6,301			(511		)	14,901			783			(107		)	15,569
Gross Profit	136			350			463			6			819			81			(8		)	1,028
Selling, General and Administrative	21			107			278			6			391			44			(8		)	448
Operating Income	115			243			185			—			428			37			—			580
Other (Income) Expense:
Interest expense, net	(11		)	56			53			—			109			(4		)	—			94
Other, net	—			—			(8		)	—			(8		)	(6		)	—			(14		)
Equity in net earnings of subsidiaries	(234		)	(55		)	—			46			(9		)	(10		)	253			—
Total Other (Income) Expense	(245		)	1			45			46			92			(20		)	253			80
Income (Loss) before Income Taxes	360			242			140			(46		)	336			57			(253		)	500
Income Tax Expense	38			64			47			—			111			29			—			178
Net Income (Loss)	322			178			93			(46		)	225			28			(253		)	322
Less: Net Loss Attributable to Noncontrolling Interest	—			—			—			—			—			—			—			—
Net Income (Loss) Attributable to Tyson	$	322		$	178		$	93		$	(46	)	$	225		$	28		$	(253	)	$	322



Condensed Consolidating Statement of Income for the six months ended April 2, 2011																			in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations			Subtotal			Non- Guar- antors			Elimin- ations			Total
Sales	$	115		$	8,942		$	6,457		$	(505	)	$	14,894		$	705		$	(99	)	$	15,615
Cost of Sales	(51		)	8,327			6,015			(505		)	13,837			651			(99		)	14,338
Gross Profit	166			615			442			—			1,057			54			—			1,277
Selling, General and Administrative	26			107			298			—			405			45			—			476
Operating Income	140			508			144			—			652			9			—			801
Other (Income) Expense:
Interest expense, net	(27		)	83			71			—			154			(4		)	—			123
Other, net	(8		)	—			(2		)	—			(2		)	2			—			(8		)
Equity in net earnings of subsidiaries	(333		)	(51		)	(16		)	44			(23		)	(6		)	362			—
Total Other (Income) Expense	(368		)	32			53			44			129			(8		)	362			115
Income (Loss) before Income Taxes	508			476			91			(44		)	523			17			(362		)	686
Income Tax Expense	51			146			23			—			169			16			—			236
Net Income (Loss)	457			330			68			(44		)	354			1			(362		)	450
Less: Net Loss Attributable to Noncontrolling Interest	—			—			—			—			—			(7		)	—			(7		)
Net Income (Loss) Attributable to Tyson	$	457		$	330		$	68		$	(44	)	$	354		$	8		$	(362	)	$	457



Condensed Consolidating Balance Sheet as of March 31, 2012														in millions
			2014 Guarantors
	TFI Parent		TFM Parent		Guar- antors		Elimin- ations			Subtotal		Non- Guar- antors		Elimin- ations			Total
Assets
Current Assets:
Cash and cash equivalents	$	2	$	3	$	453	$	—		$	456	$	265	$	—		$	723
Accounts receivable, net	2		476		615		—			1,091		219		(59		)	1,253
Inventories	1		960		1,419		—			2,379		242		—			2,622
Other current assets	79		78		97		(66		)	109		54		(90		)	152
Total Current Assets	84		1,517		2,584		(66		)	4,035		780		(149		)	4,750
Net Property, Plant and Equipment	35		874		2,449		—			3,323		585		—			3,943
Goodwill	—		880		967		—			1,847		45		—			1,892
Intangible Assets	—		29		47		—			76		67		—			143
Other Assets	1,891		167		142		—			309		297		(2,055		)	442
Investment in Subsidiaries	11,665		2,047		859		(1,851		)	1,055		330		(13,050		)	—
Total Assets	$	13,675	$	5,514	$	7,048	$	(1,917	)	$	10,645	$	2,104	$	(15,254	)	$	11,170

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	4	$	—	$	—	$	—		$	—	$	110	$	(30	)	$	84
Accounts payable	12		504		589		—			1,093		86		—			1,191
Other current liabilities	5,580		129		360		(66		)	423		392		(5,500		)	895
Total Current Liabilities	5,596		633		949		(66		)	1,516		588		(5,530		)	2,170
Long-Term Debt	1,992		1,043		780		—			1,823		277		(1,956		)	2,136
Deferred Income Taxes	—		107		336		—			443		8		(18		)	433
Other Liabilities	181		140		227		—			367		29		(81		)	496

Total Tyson Shareholders’ Equity	5,906		3,591		4,756		(1,851		)	6,496		1,173		(7,669		)	5,906
Noncontrolling Interest	—		—		—		—			—		29		—			29
Total Shareholders’ Equity	5,906		3,591		4,756		(1,851		)	6,496		1,202		(7,669		)	5,935
Total Liabilities and Shareholders’ Equity	$	13,675	$	5,514	$	7,048	$	(1,917	)	$	10,645	$	2,104	$	(15,254	)	$	11,170



Condensed Consolidating Balance Sheet as of October 1, 2011														in millions
			2014 Guarantors
	TFI Parent		TFM Parent		Guar- antors		Elimin- ations			Subtotal		Non- Guar- antors		Elimin- ations			Total
Assets
Current Assets:
Cash and cash equivalents	$	1	$	1	$	414	$	—		$	415	$	300	$	—		$	716
Accounts receivable, net	1		506		656		—			1,162		157		1			1,321
Inventories	2		926		1,440		—			2,366		219		—			2,587
Other current assets	62		95		102		(133		)	64		54		(24		)	156
Total Current Assets	66		1,528		2,612		(133		)	4,007		730		(23		)	4,780
Net Property, Plant and Equipment	37		875		2,369		—			3,244		542		—			3,823
Goodwill	—		881		966		—			1,847		45		—			1,892
Intangible Assets	—		31		49		—			80		69		—			149
Other Assets	2,179		180		147		(15		)	312		296		(2,360		)	427
Investment in Subsidiaries	11,396		1,923		769		(1,760		)	932		319		(12,647		)	—
Total Assets	$	13,678	$	5,418	$	6,912	$	(1,908	)	$	10,422	$	2,001	$	(15,030	)	$	11,071

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	2	$	—	$	—	$	—		$	—	$	68	$	—		$	70
Accounts payable	8		525		648		—			1,173		83		—			1,264
Other current liabilities	5,808		144		442		(133		)	453		474		(5,695		)	1,040
Total Current Liabilities	5,818		669		1,090		(133		)	1,626		625		(5,695		)	2,374
Long-Term Debt	1,972		1,198		916		—			2,114		269		(2,243		)	2,112
Deferred Income Taxes	—		120		310		(15		)	415		9		—			424
Other Liabilities	231		142		191		—			333		29		(117		)	476

Total Tyson Shareholders’ Equity	5,657		3,289		4,405		(1,760		)	5,934		1,041		(6,975		)	5,657
Noncontrolling Interest	—		—		—		—			—		28		—			28
Total Shareholders’ Equity	5,657		3,289		4,405		(1,760		)	5,934		1,069		(6,975		)	5,685
Total Liabilities and Shareholders’ Equity	$	13,678	$	5,418	$	6,912	$	(1,908	)	$	10,422	$	2,001	$	(15,030	)	$	11,071



Condensed Consolidating Statement of Cash Flows for the six months ended March 31, 2012																		in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations		Subtotal			Non- Guar- antors			Elimin- ations		Total
Cash Provided by (Used for) Operating Activities	$	101		$	162		$	233		$	—	$	395		$	(42	)	$	—	$	454
Cash Flows from Investing Activities:
Additions to property, plant and equipment	—			(53		)	(235		)	—		(288		)	(56		)	—		(344		)
(Purchases of)/Proceeds from marketable securities, net	—			(8		)	(3		)	—		(11		)	(1		)	—		(12		)
Proceeds from notes receivable	—			—			—			—		—			—			—		—
Other, net	2			2			6			—		8			7			—		17
Cash Provided by (Used for) Investing Activities	2			(59		)	(232		)	—		(291		)	(50		)	—		(339		)
Cash Flows from Financing Activities:
Net change in debt	—			—			—			—		—			15			—		15
Purchases of Tyson Class A common stock	(128		)	—			—			—		—			—			—		(128		)
Dividends	(29		)	—			—			—		—			—			—		(29		)
Other, net	29			—			—			—		—			—			—		29
Net change in intercompany balances	26			(101		)	38			—		(63		)	37			—		—
Cash Provided by (Used for) Financing Activities	(102		)	(101		)	38			—		(63		)	52			—		(113		)
Effect of Exchange Rate Change on Cash	—			—			—			—		—			5			—		5
Increase (Decrease) in Cash and Cash Equivalents	1			2			39			—		41			(35		)	—		7
Cash and Cash Equivalents at Beginning of Year	1			1			414			—		415			300			—		716
Cash and Cash Equivalents at End of Period	$	2		$	3		$	453		$	—	$	456		$	265		$	—	$	723



Condensed Consolidating Statement of Cash Flows for the six months ended April 2, 2011																		in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations		Subtotal			Non- Guar- antors			Elimin- ations			Total
Cash Provided by (Used for) Operating Activities	$	110		$	95		$	59		$	—	$	154		$	(41	)	$	(20	)	$	203
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(1		)	(61		)	(209		)	—		(270		)	(48		)	—			(319		)
(Purchases of)/Proceeds from marketable securities, net	—			(58		)	(21		)	—		(79		)	(1		)	—			(80		)
Proceeds from notes receivable	—			—			—			—		—			51			—			51
Other, net	23			—			3			—		3			(1		)	—			25
Cash Provided by (Used for) Investing Activities	22			(119		)	(227		)	—		(346		)	1			—			(323		)
Cash Flows from Financing Activities:
Net change in debt	(69		)	(6		)	—			—		(6		)	10			—			(65		)
Purchases of Tyson Class A common stock	(21		)	—			—			—		—			—			—			(21		)
Dividends	(30		)	—			—			—		—			(20		)	20			(30		)
Other, net	37			—			—			—		—			8			—			45
Net change in intercompany balances	(50		)	29			(50		)	—		(21		)	71			—			—
Cash Provided by (Used for) Financing Activities	(133		)	23			(50		)	—		(27		)	69			20			(71		)
Effect of Exchange Rate Change on Cash	—			—			—			—		—			7			—			7
Increase (Decrease) in Cash and Cash Equivalents	(1		)	(1		)	(218		)	—		(219		)	36			—			(184		)
Cash and Cash Equivalents at Beginning of Year	2			2			731			—		733			243			—			978
Cash and Cash Equivalents at End of Period	$	1		$	1		$	513		$	—	$	514		$	279		$	—		$	794

Accounting Policies (Policy)

Basis Of Presentation

BASIS OF PRESENTATION

The consolidated condensed financial statements 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. 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 October 1, 2011. Preparation of consolidated condensed financial statements requires us to make estimates and assumptions. These estimates and assumptions 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 March 31, 2012, and the results of operations and cash flows for the three and six months ended March 31, 2012, and April 2, 2011. 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 are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

We have an investment in a joint venture, Dynamic Fuels LLC (Dynamic Fuels), in which we have a 50 percent ownership interest. Dynamic Fuels qualifies as a variable interest entity for which we consolidate as we are the primary beneficiary.

Inventories (Tables)

Schedule of Inventory

Total inventory consists of the following (in millions):



	March 31, 2012		October 1, 2011
Processed products:
Weighted-average method – chicken and prepared foods	$	678	$	715
First-in, first-out method – beef and pork	659		581
Livestock – first-in, first-out method	888		928
Supplies and other – weighted-average method	397		363
Total inventories	$	2,622	$	2,587

Property, Plant And Equipment (Tables)

Property, Plant And Equipment And Accumulated Depreciation

The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions)



	March 31, 2012		October 1, 2011
Land	$	98	$	95
Buildings and leasehold improvements	2,766		2,698
Machinery and equipment	4,925		4,897
Land improvements and other	390		386
Buildings and equipment under construction	503		446
	8,682		8,522
Less accumulated depreciation	4,739		4,699
Net property, plant and equipment	$	3,943	$	3,823

Other Current Liabilities (Tables)

Schedule Of Other Current Liabilities

Other current liabilities are as follows (in millions):



	March 31, 2012		October 1, 2011
Accrued salaries, wages and benefits	$	309	$	407
Self-insurance reserves	284		298
Other	302		335
Total other current liabilities	$	895	$	1,040

Debt (Tables)

Major Components Of Debt

The major components of debt are as follows (in millions):



	March 31, 2012			October 1, 2011
Revolving credit facility	$	—		$	—
Senior notes:
3.25% Convertible senior notes due October 2013 (2013 Notes)	458			458
10.50% Senior notes due March 2014 (2014 Notes)	810			810
6.85% Senior notes due April 2016 (2016 Notes)	638			638
7.00% Notes due May 2018	120			120
7.00% Notes due January 2028	18			18
Discount on senior notes	(60		)	(76		)
GO Zone tax-exempt bonds due October 2033 (0.19% at 3/31/2012)	100			100
Other	136			114
Total debt	2,220			2,182
Less current debt	84			70
Total long-term debt	$	2,136		$	2,112

Earnings Per Share (Tables)

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					Six Months Ended
	March 31, 2012		April 2, 2011			March 31, 2012		April 2, 2011
Numerator:
Net income	$	166	$	156		$	322	$	450
Less: Net loss attributable to noncontrolling interest	—		(3		)	—		(7		)
Net income attributable to Tyson	166		159			322		457
Less Dividends:
Class A ($0.040/share/quarter)	12		13			24		25
Class B ($0.036/share/quarter)	2		2			5		5
Undistributed earnings	$	152	$	144		$	293	$	427

Class A undistributed earnings	$	125	$	120		$	242	$	354
Class B undistributed earnings	27		24			51		73
Total undistributed earnings	$	152	$	144		$	293	$	427
Denominator:
Denominator for basic earnings per share:
Class A weighted average shares	294		305			295		305
Class B weighted average shares, and shares under the if-converted method for diluted earnings per share	70		70			70		70
Effect of dilutive securities:
Stock options and restricted stock	5		6			5		5
Convertible 2013 Notes	4		2			4		1
Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions	373		383			374		381
Net Income Per Share Attributable to Tyson:
Class A Basic	$	0.47	$	0.43		$	0.90	$	1.24
Class B Basic	$	0.42	$	0.39		$	0.81	$	1.12
Diluted	$	0.44	$	0.42		$	0.86	$	1.20

Derivative Financial Instruments (Tables)

Schedule Of Derivative Instruments In Statement Of Financial Position, Fair Value

The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions):



	Fair Value
	March 31, 2012		October 1, 2011
Derivative Assets:
Derivatives designated as hedging instruments:
Commodity contracts	$	51	$	3
Foreign exchange contracts	—		12
Total derivative assets – designated	51		15
Derivatives not designated as hedging instruments:
Commodity contracts	20		21
Foreign exchange contracts	1		5
Total derivative assets – not designated	21		26

Total derivative assets	$	72	$	41
Derivative Liabilities:
Derivatives designated as hedging instruments:
Commodity contracts	$	1	$	41
Foreign exchange contracts	1		—
Total derivative liabilities – designated	2		41
Derivatives not designated as hedging instruments:
Commodity contracts	59		121
Foreign exchange contracts	—		1
Interest rate contracts	1		2
Total derivative liabilities – not designated	60		124

Total derivative liabilities	$	62	$	165

Schedule Of Notional Amount Of Derivatives

We had the following aggregated notionals of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons):



	Metric	March 31, 2012		October 1, 2011
Commodity:
Corn	Bushels	12		6
Soy meal	Tons	81,300		82,300
Foreign Currency	United States dollar	$	78	$	75

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance

The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Condensed Statements of Income (in millions):



	Gain/(Loss) Recognized in OCI On Derivatives					Consolidated Condensed Statements of Income Classification	Gain/(Loss) Reclassified from OCI to Earnings
	Three Months Ended						Three Months Ended
	March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Cash Flow Hedge – Derivatives designated as hedging instruments:
Commodity contracts	$	4		$	3	Cost of Sales	$	(10	)	$	6
Foreign exchange contracts	(2		)	—		Other Income/Expense	—			—
Total	$	2		$	3		$	(10	)	$	6



	Gain/(Loss) Recognized in OCI On Derivatives					Consolidated Condensed Statements of Income Classification	Gain/(Loss) Reclassified from OCI to Earnings
	Six Months Ended						Six Months Ended
	March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Cash Flow Hedge – Derivatives designated as hedging instruments:
Commodity contracts	$	6		$	28	Cost of Sales	$	(16	)	$	26
Foreign exchange contracts	(7		)	—		Other Income/Expense	5			—
Total	$	(1	)	$	28		$	(11	)	$	26

Schedule Of Notional Amount Of Derivatives

We designate certain futures contracts as fair value hedges of firm commitments to purchase livestock for slaughter. Our objective of these hedges is to minimize the risk of changes in fair value created by fluctuations in commodity prices associated with fixed price livestock firm commitments. We had the following aggregated notionals of outstanding forward contracts entered into to hedge forecasted commodity purchases which are accounted for as a fair value hedge (in millions):



	Metric	March 31, 2012	October 1, 2011
Commodity:
Live Cattle	Pounds	322	318
Lean Hogs	Pounds	444	601

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance



										in millions
	Consolidated Condensed Statements of Income Classification	Three Months Ended						Six Months Ended
	Consolidated Condensed Statements of Income Classification	March 31, 2012			April 2, 2011			March 31, 2012		April 2, 2011
Gain/(Loss) on forwards	Cost of Sales	$	8		$	(43	)	$	—	$	(44	)
Gain/(Loss) on purchase contract	Cost of Sales	(8		)	43			—		44

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance

The following table sets forth the pretax impact of these derivative instruments on the Consolidated Condensed Statements of Income (in millions):



	Gain/(Loss) Recognized in OCI On Derivatives						Consolidated Condensed Statements of Income Classification	Gain/(Loss) Reclassified from OCI to Earnings
	Three Months Ended							Three Months Ended
	March 31, 2012			April 2, 2011				March 31, 2012		April 2, 2011
Net Investment Hedge – Derivatives designated as hedging instruments:
Foreign exchange contracts	$	(1	)	$	(2	)	Other Income/Expense	$	—	$	—



	Gain/(Loss) Recognized in OCI On Derivatives						Consolidated Condensed Statements of Income Classification	Gain/(Loss) Reclassified from OCI to Earnings
	Six Months Ended							Six Months Ended
	March 31, 2012			April 2, 2011				March 31, 2012		April 2, 2011
Net Investment Hedge – Derivatives designated as hedging instruments:
Foreign exchange contracts	$	(2	)	$	(3	)	Other Income/Expense	$	—	$	—

Schedule Of Notional Amount Of Derivatives

We had the following aggregate outstanding notionals related to our undesignated positions (in millions, except soy meal tons) :



	Metric	March 31, 2012		October 1, 2011
Commodity:
Corn	Bushels	4		17
Soy Meal	Tons	33,700		174,600
Soy Oil	Pounds	6		13
Live Cattle	Pounds	120		72
Lean Hogs	Pounds	129		19
Foreign Currency	United States dollars	$	68	$	110
Interest Rate	Average monthly notional debt	$	34	$	39

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance

The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Condensed Statements of Income (in millions):



	Consolidated Condensed Statements of Income Classification	Gain/(Loss) Recognized in Earnings						Gain/(Loss) Recognized in Earnings
		Three Months Ended						Six Months Ended
		March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Derivatives not designated as hedging instruments:
Commodity contracts	Sales	$	(6	)	$	17		$	(9	)	$	31
Commodity contracts	Cost of Sales	29			(10		)	58			11
Foreign exchange contracts	Other Income/Expense	(3		)	(6		)	—			(7		)
Total		$	20		$	1		$	49		$	35

Fair Value Measurements (Tables)

Schedule Of 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):



March 31, 2012	Level 1		Level 2		Level 3		Netting (a)			Total
Assets:
Commodity Derivatives	$	—	$	71	$	—	$	(50	)	$	21
Foreign Exchange Forward Contracts	—		1		—		(1		)	—
Available for Sale Securities:
Debt securities	—		32		79		—			111
Equity securities	8		—		—		—			8
Deferred Compensation Assets	28		150		—		—			178
Total Assets	$	36	$	254	$	79	$	(51	)	$	318
Liabilities:
Commodity Derivatives	$	—	$	60	$	—	$	(60	)	$	—
Foreign Exchange Forward Contracts	—		1		—		(1		)	—
Interest Rate Swap	—		1		—		—			1
Total Liabilities	$	—	$	62	$	—	$	(61	)	$	1



October 1, 2011	Level 1		Level 2		Level 3		Netting (a)			Total
Assets:
Commodity Derivatives	$	—	$	24	$	—	$	(21	)	$	3
Foreign Exchange Forward Contracts	—		17		—		(2		)	15
Available for Sale Securities:
Debt securities	—		34		83		—			117
Equity securities	7		—		—		—			7
Deferred Compensation Assets	28		122		—		—			150
Total Assets	$	35	$	197	$	83	$	(23	)	$	292
Liabilities:
Commodity Derivatives	$	—	$	162	$	—	$	(135	)	$	27
Foreign Exchange Forward Contracts	—		1		—		(1		)	—
Interest Rate Swap	—		2		—		—			2
Total Liabilities	$	—	$	165	$	—	$	(136	)	$	29

(a)

Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At March 31, 2012, and October 1, 2011, we had posted with various counterparties $10 million and $113 million, respectively, of cash collateral and held no cash collateral.

Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions):



	Six Months Ended
	March 31, 2012			April 2, 2011
Balance at beginning of year	$	83		$	73
Total realized and unrealized gains (losses):
Included in earnings	1			—
Included in other comprehensive income (loss)	—			—
Purchases	12			9
Issuances	—			—
Settlements	(17		)	(9		)
Balance at end of period	$	79		$	73
Total gains (losses) for the six-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

We record the shares and warrants in Other Assets in the Consolidated Condensed Balance Sheets at fair value based on quoted market prices. We classify the shares as Level 1 as the fair value is based on unadjusted quoted prices available in active markets. We classify the warrants as Level 2 as fair value can be corroborated based on observable market data.



(in millions)	March 31, 2012							October 1, 2011
	Amortized Cost Basis		Fair Value		Unrealized Gain/(Loss)			Amortized Cost Basis		Fair Value		Unrealized Gain/(Loss)
Available for Sale Securities:
Debt Securities:
U.S. Treasury and Agency	$	31	$	32	$	1		$	33	$	34	$	1
Corporate and Asset-Backed (a)	58		60		2			54		56		2
Redeemable Preferred Stock	19		19		—			27		27		—
Equity Securities:
Common Stock	9		8		(1		)	9		7		(2		)


(a)	At March 31, 2012, and October 1, 2011, the amortized cost basis for Corporate and Asset-Backed debt securities had been reduced by accumulated other than temporary impairments of $2 million and $3 million, respectively.

Schedule Of Fair Value And Carrying Value Of Debt

Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):



	March 31, 2012				October 1, 2011
	Fair Value		Carrying Value		Fair Value		Carrying Value
Total Debt	$	2,451	$	2,220	$	2,334	$	2,182

Comprehensive Income (Tables)

Components Of Other Comprehensive Income (Loss)

The components of comprehensive income are as follows (in millions):



	Three Months Ended					Six Months Ended
	March 31, 2012		April 2, 2011			March 31, 2012			April 2, 2011
Net income	$	166	$	156		$	322		$	450
Other comprehensive income (loss), net of tax:
Net hedging unrealized (gain) loss reclassified to earnings	6		(4		)	7			(17		)
Net hedging unrealized gain (loss)	1		2			(1		)	14
Unrealized gain on investments	—		2			1			—
Currency translation adjustment	27		24			30			19
Postretirement benefits reserve adjustments	1		1			2			1
Total comprehensive income	201		181			361			467
Comprehensive loss attributable to noncontrolling interest	—		(3		)	—			(7		)
Total comprehensive income attributable to Tyson	$	201	$	184		$	361		$	474

The related tax effects allocated to the components of comprehensive income are as follows (in millions):



	Three Months Ended					Six Months Ended
	March 31, 2012		April 2, 2011			March 31, 2012		April 2, 2011
Income tax expense (benefit):
Net hedging unrealized (gain) loss reclassified to earnings	$	4	$	(2	)	$	4	$	(9	)
Net hedging unrealized gain	1		1			—		14
Unrealized gain on investments	—		—			1		—
Total income tax expense	$	5	$	(1	)	$	5	$	5

Segment Reporting (Tables)

Segment Reporting Information, By Segment

Information on segments and a reconciliation to income before income taxes are as follows (in millions):



	Three Months Ended						Six Months Ended
	March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Sales:
Chicken	$	2,911		$	2,739		$	5,673		$	5,358
Beef	3,369			3,333			6,836			6,518
Pork	1,372			1,384			2,847			2,622
Prepared Foods	807			778			1,668			1,584
Other	46			25			100			33
Intersegment Sales	(237		)	(259		)	(527		)	(500		)
Total Sales	$	8,268		$	8,000		$	16,597		$	15,615
Operating Income (Loss):
Chicken	$	145		$	37		$	177		$	218
Beef	(1		)	94			30			210
Pork	115			146			280			323
Prepared Foods	44			31			95			59
Other	(1		)	(5		)	(2		)	(9		)
Total Operating Income	302			303			580			801

Total Other (Income) Expense	45			62			80			115			(a)

Income before Income Taxes	$	257		$	241		$	500		$	686


(a)	Includes $11 million gain related to a sale of interests in an equity method investment.

Condensed Consolidating Financial Statements (Tables)

Condensed Consolidating Statement Of Income



Condensed Consolidating Statement of Income for the three months ended March 31, 2012																			in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations			Subtotal			Non- Guar- antors			Elimin- ations			Total
Sales	$	76		$	4,620		$	3,457		$	(222	)	$	7,855		$	410		$	(73	)	$	8,268
Cost of Sales	(16		)	4,469			3,199			(228		)	7,440			374			(65		)	7,733
Gross Profit	92			151			258			6			415			36			(8		)	535
Selling, General and Administrative	9			57			147			6			210			22			(8		)	233
Operating Income	83			94			111			—			205			14			—			302
Other (Income) Expense:
Interest expense, net	2			24			22			—			46			(1		)	—			47
Other, net	(1		)	—			(2		)	—			(2		)	1			—			(2		)
Equity in net earnings of subsidiaries	(107		)	(29		)	5			26			2			(4		)	109			—
Total Other (Income) Expense	(106		)	(5		)	25			26			46			(4		)	109			45
Income (Loss) before Income Taxes	189			99			86			(26		)	159			18			(109		)	257
Income Tax Expense	23			24			31			—			55			13			—			91
Net Income (Loss)	166			75			55			(26		)	104			5			(109		)	166
Less: Net Loss Attributable to Noncontrolling Interest	—			—			—			—			—			—			—			—
Net Income (Loss) Attributable to Tyson	$	166		$	75		$	55		$	(26	)	$	104		$	5		$	(109	)	$	166



Condensed Consolidating Statement of Income for the three months ended April 2, 2011																			in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations			Subtotal			Non- Guar- antors			Elimin- ations			Total
Sales	$	10		$	4,609		$	3,302		$	(264	)	$	7,647		$	347		$	(4	)	$	8,000
Cost of Sales	(8		)	4,327			3,089			(264		)	7,152			327			(4		)	7,467
Gross Profit	18			282			213			—			495			20			—			533
Selling, General and Administrative	9			51			150			—			201			20			—			230
Operating Income	9			231			63			—			294			—			—			303
Other (Income) Expense:
Interest expense, net	27			23			13			—			36			(3		)	—			60
Other, net	4			—			(1		)	—			(1		)	(1		)	—			2
Equity in net earnings of subsidiaries	(168		)	(29		)	(3		)	24			(8		)	(4		)	180			—
Total Other (Income) Expense	(137		)	(6		)	9			24			27			(8		)	180			62
Income (Loss) before Income Taxes	146			237			54			(24		)	267			8			(180		)	241
Income Tax (Benefit) Expense	(13		)	72			13			—			85			13			—			85
Net Income (Loss)	159			165			41			(24		)	182			(5		)	(180		)	156
Less: Net Loss Attributable to Noncontrolling Interest	—			—			—			—			—			(3		)	—			(3		)
Net Income (Loss) Attributable to Tyson	$	159		$	165		$	41		$	(24	)	$	182		$	(2	)	$	(180	)	$	159



Condensed Consolidating Statement of Income for the six months ended March 31, 2012																			in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations			Subtotal			Non- Guar- antors			Elimin- ations			Total
Sales	$	128		$	9,461		$	6,764		$	(505	)	$	15,720		$	864		$	(115	)	$	16,597
Cost of Sales	(8		)	9,111			6,301			(511		)	14,901			783			(107		)	15,569
Gross Profit	136			350			463			6			819			81			(8		)	1,028
Selling, General and Administrative	21			107			278			6			391			44			(8		)	448
Operating Income	115			243			185			—			428			37			—			580
Other (Income) Expense:
Interest expense, net	(11		)	56			53			—			109			(4		)	—			94
Other, net	—			—			(8		)	—			(8		)	(6		)	—			(14		)
Equity in net earnings of subsidiaries	(234		)	(55		)	—			46			(9		)	(10		)	253			—
Total Other (Income) Expense	(245		)	1			45			46			92			(20		)	253			80
Income (Loss) before Income Taxes	360			242			140			(46		)	336			57			(253		)	500
Income Tax Expense	38			64			47			—			111			29			—			178
Net Income (Loss)	322			178			93			(46		)	225			28			(253		)	322
Less: Net Loss Attributable to Noncontrolling Interest	—			—			—			—			—			—			—			—
Net Income (Loss) Attributable to Tyson	$	322		$	178		$	93		$	(46	)	$	225		$	28		$	(253	)	$	322



Condensed Consolidating Statement of Income for the six months ended April 2, 2011																			in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations			Subtotal			Non- Guar- antors			Elimin- ations			Total
Sales	$	115		$	8,942		$	6,457		$	(505	)	$	14,894		$	705		$	(99	)	$	15,615
Cost of Sales	(51		)	8,327			6,015			(505		)	13,837			651			(99		)	14,338
Gross Profit	166			615			442			—			1,057			54			—			1,277
Selling, General and Administrative	26			107			298			—			405			45			—			476
Operating Income	140			508			144			—			652			9			—			801
Other (Income) Expense:
Interest expense, net	(27		)	83			71			—			154			(4		)	—			123
Other, net	(8		)	—			(2		)	—			(2		)	2			—			(8		)
Equity in net earnings of subsidiaries	(333		)	(51		)	(16		)	44			(23		)	(6		)	362			—
Total Other (Income) Expense	(368		)	32			53			44			129			(8		)	362			115
Income (Loss) before Income Taxes	508			476			91			(44		)	523			17			(362		)	686
Income Tax Expense	51			146			23			—			169			16			—			236
Net Income (Loss)	457			330			68			(44		)	354			1			(362		)	450
Less: Net Loss Attributable to Noncontrolling Interest	—			—			—			—			—			(7		)	—			(7		)
Net Income (Loss) Attributable to Tyson	$	457		$	330		$	68		$	(44	)	$	354		$	8		$	(362	)	$	457

Condensed Consolidating Balance Sheet



Condensed Consolidating Balance Sheet as of March 31, 2012														in millions
			2014 Guarantors
	TFI Parent		TFM Parent		Guar- antors		Elimin- ations			Subtotal		Non- Guar- antors		Elimin- ations			Total
Assets
Current Assets:
Cash and cash equivalents	$	2	$	3	$	453	$	—		$	456	$	265	$	—		$	723
Accounts receivable, net	2		476		615		—			1,091		219		(59		)	1,253
Inventories	1		960		1,419		—			2,379		242		—			2,622
Other current assets	79		78		97		(66		)	109		54		(90		)	152
Total Current Assets	84		1,517		2,584		(66		)	4,035		780		(149		)	4,750
Net Property, Plant and Equipment	35		874		2,449		—			3,323		585		—			3,943
Goodwill	—		880		967		—			1,847		45		—			1,892
Intangible Assets	—		29		47		—			76		67		—			143
Other Assets	1,891		167		142		—			309		297		(2,055		)	442
Investment in Subsidiaries	11,665		2,047		859		(1,851		)	1,055		330		(13,050		)	—
Total Assets	$	13,675	$	5,514	$	7,048	$	(1,917	)	$	10,645	$	2,104	$	(15,254	)	$	11,170

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	4	$	—	$	—	$	—		$	—	$	110	$	(30	)	$	84
Accounts payable	12		504		589		—			1,093		86		—			1,191
Other current liabilities	5,580		129		360		(66		)	423		392		(5,500		)	895
Total Current Liabilities	5,596		633		949		(66		)	1,516		588		(5,530		)	2,170
Long-Term Debt	1,992		1,043		780		—			1,823		277		(1,956		)	2,136
Deferred Income Taxes	—		107		336		—			443		8		(18		)	433
Other Liabilities	181		140		227		—			367		29		(81		)	496

Total Tyson Shareholders’ Equity	5,906		3,591		4,756		(1,851		)	6,496		1,173		(7,669		)	5,906
Noncontrolling Interest	—		—		—		—			—		29		—			29
Total Shareholders’ Equity	5,906		3,591		4,756		(1,851		)	6,496		1,202		(7,669		)	5,935
Total Liabilities and Shareholders’ Equity	$	13,675	$	5,514	$	7,048	$	(1,917	)	$	10,645	$	2,104	$	(15,254	)	$	11,170



Condensed Consolidating Balance Sheet as of October 1, 2011														in millions
			2014 Guarantors
	TFI Parent		TFM Parent		Guar- antors		Elimin- ations			Subtotal		Non- Guar- antors		Elimin- ations			Total
Assets
Current Assets:
Cash and cash equivalents	$	1	$	1	$	414	$	—		$	415	$	300	$	—		$	716
Accounts receivable, net	1		506		656		—			1,162		157		1			1,321
Inventories	2		926		1,440		—			2,366		219		—			2,587
Other current assets	62		95		102		(133		)	64		54		(24		)	156
Total Current Assets	66		1,528		2,612		(133		)	4,007		730		(23		)	4,780
Net Property, Plant and Equipment	37		875		2,369		—			3,244		542		—			3,823
Goodwill	—		881		966		—			1,847		45		—			1,892
Intangible Assets	—		31		49		—			80		69		—			149
Other Assets	2,179		180		147		(15		)	312		296		(2,360		)	427
Investment in Subsidiaries	11,396		1,923		769		(1,760		)	932		319		(12,647		)	—
Total Assets	$	13,678	$	5,418	$	6,912	$	(1,908	)	$	10,422	$	2,001	$	(15,030	)	$	11,071

Liabilities and Shareholders’ Equity
Current Liabilities:
Current debt	$	2	$	—	$	—	$	—		$	—	$	68	$	—		$	70
Accounts payable	8		525		648		—			1,173		83		—			1,264
Other current liabilities	5,808		144		442		(133		)	453		474		(5,695		)	1,040
Total Current Liabilities	5,818		669		1,090		(133		)	1,626		625		(5,695		)	2,374
Long-Term Debt	1,972		1,198		916		—			2,114		269		(2,243		)	2,112
Deferred Income Taxes	—		120		310		(15		)	415		9		—			424
Other Liabilities	231		142		191		—			333		29		(117		)	476

Total Tyson Shareholders’ Equity	5,657		3,289		4,405		(1,760		)	5,934		1,041		(6,975		)	5,657
Noncontrolling Interest	—		—		—		—			—		28		—			28
Total Shareholders’ Equity	5,657		3,289		4,405		(1,760		)	5,934		1,069		(6,975		)	5,685
Total Liabilities and Shareholders’ Equity	$	13,678	$	5,418	$	6,912	$	(1,908	)	$	10,422	$	2,001	$	(15,030	)	$	11,071

Condensed Consolidating Statement Of Cash Flows [Table Text Block]



Condensed Consolidating Statement of Cash Flows for the six months ended March 31, 2012																		in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations		Subtotal			Non- Guar- antors			Elimin- ations		Total
Cash Provided by (Used for) Operating Activities	$	101		$	162		$	233		$	—	$	395		$	(42	)	$	—	$	454
Cash Flows from Investing Activities:
Additions to property, plant and equipment	—			(53		)	(235		)	—		(288		)	(56		)	—		(344		)
(Purchases of)/Proceeds from marketable securities, net	—			(8		)	(3		)	—		(11		)	(1		)	—		(12		)
Proceeds from notes receivable	—			—			—			—		—			—			—		—
Other, net	2			2			6			—		8			7			—		17
Cash Provided by (Used for) Investing Activities	2			(59		)	(232		)	—		(291		)	(50		)	—		(339		)
Cash Flows from Financing Activities:
Net change in debt	—			—			—			—		—			15			—		15
Purchases of Tyson Class A common stock	(128		)	—			—			—		—			—			—		(128		)
Dividends	(29		)	—			—			—		—			—			—		(29		)
Other, net	29			—			—			—		—			—			—		29
Net change in intercompany balances	26			(101		)	38			—		(63		)	37			—		—
Cash Provided by (Used for) Financing Activities	(102		)	(101		)	38			—		(63		)	52			—		(113		)
Effect of Exchange Rate Change on Cash	—			—			—			—		—			5			—		5
Increase (Decrease) in Cash and Cash Equivalents	1			2			39			—		41			(35		)	—		7
Cash and Cash Equivalents at Beginning of Year	1			1			414			—		415			300			—		716
Cash and Cash Equivalents at End of Period	$	2		$	3		$	453		$	—	$	456		$	265		$	—	$	723



Condensed Consolidating Statement of Cash Flows for the six months ended April 2, 2011																		in millions
				2014 Guarantors
	TFI Parent			TFM Parent			Guar- antors			Elimin- ations		Subtotal			Non- Guar- antors			Elimin- ations			Total
Cash Provided by (Used for) Operating Activities	$	110		$	95		$	59		$	—	$	154		$	(41	)	$	(20	)	$	203
Cash Flows from Investing Activities:
Additions to property, plant and equipment	(1		)	(61		)	(209		)	—		(270		)	(48		)	—			(319		)
(Purchases of)/Proceeds from marketable securities, net	—			(58		)	(21		)	—		(79		)	(1		)	—			(80		)
Proceeds from notes receivable	—			—			—			—		—			51			—			51
Other, net	23			—			3			—		3			(1		)	—			25
Cash Provided by (Used for) Investing Activities	22			(119		)	(227		)	—		(346		)	1			—			(323		)
Cash Flows from Financing Activities:
Net change in debt	(69		)	(6		)	—			—		(6		)	10			—			(65		)
Purchases of Tyson Class A common stock	(21		)	—			—			—		—			—			—			(21		)
Dividends	(30		)	—			—			—		—			(20		)	20			(30		)
Other, net	37			—			—			—		—			8			—			45
Net change in intercompany balances	(50		)	29			(50		)	—		(21		)	71			—			—
Cash Provided by (Used for) Financing Activities	(133		)	23			(50		)	—		(27		)	69			20			(71		)
Effect of Exchange Rate Change on Cash	—			—			—			—		—			7			—			7
Increase (Decrease) in Cash and Cash Equivalents	(1		)	(1		)	(218		)	—		(219		)	36			—			(184		)
Cash and Cash Equivalents at Beginning of Year	2			2			731			—		733			243			—			978
Cash and Cash Equivalents at End of Period	$	1		$	1		$	513		$	—	$	514		$	279		$	—		$	794

Accounting Policies (Details) (USD $)

In Millions, unless otherwise specified

1 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

0 Months Ended

Mar. 31, 2011

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Share Repurchase Program [Member]

Class A [Member]

Mar. 31, 2012

Share Repurchase Program [Member]

Class A [Member]

May 11, 2011

Share Repurchase Program [Member]

Class A [Member]

Mar. 31, 2012

Open Market Repurchases [Member]

Class A [Member]

Apr. 2, 2011

Open Market Repurchases [Member]

Class A [Member]

Mar. 31, 2012

Variable Interest Entity, Primary Beneficiary [Member]

Oct. 1, 2011

Variable Interest Entity, Primary Beneficiary [Member]

Apr. 2, 2011

Scenario, Previously Reported [Member]

May 3, 2012

Authorization of Shares for Repurchase [Member]

Share Repurchase Program [Member]

Class A [Member]

Accounting Policies [Line Items]

Ownership interest percentage, investment in Dynamic Fuels, LLC joint venture

50.00%

Variable interest entity total assets

$ 178

$ 170

Variable interest entity property, plant and equipment

141

144

Variable interest entity total liabilities

128

116

Variable Interest Entity, Consolidated, Carrying Amount, Long-term Debt

100

Remaining shares available to repurchase

7.4

22.5

Increase in authorized shares to repurchase

35

Common shares repurchased during the period

3.6

5.4

Purchases of treasury shares

128

21

70

105

23

21

Proceeds from Collection of Notes Receivable

51

0

51

Net Cash Provided by (Used in) Operating Activities

454

203

254

Net Cash Provided by (Used in) Investing Activities

$ (339)

$ (323)

$ (374)

Inventories (Schedule Of Inventories Of Processed Products, Livestock, And Supplies Valued At Lower Of Cost Or Market) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Inventory, Processed Products [Abstract]

Weighted-average method – chicken and prepared foods

$ 678

$ 715

First-in, first-out method – beef and pork

659

581

Livestock – first-in, first-out method

888

928

Supplies and other – weighted-average method

397

363

Total inventories

$ 2,622

$ 2,587

Property, Plant And Equipment (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Property, Plant and Equipment [Line Items]

Property, plant and equipment, gross

$ 8,682

$ 8,522

Less accumulated depreciation

4,739

4,699

Net property, plant and equipment

3,943

3,823

Land [Member]

Property, Plant and Equipment [Line Items]

Property, plant and equipment, gross

98

95

Buildings And Leasehold Improvements [Member]

Property, Plant and Equipment [Line Items]

Property, plant and equipment, gross

2,766

2,698

Machinery And Equipment [Member]

Property, Plant and Equipment [Line Items]

Property, plant and equipment, gross

4,925

4,897

Land Improvements And Other [Member]

Property, Plant and Equipment [Line Items]

Property, plant and equipment, gross

390

386

Buildings And Equipment Under Construction [Member]

Property, Plant and Equipment [Line Items]

Property, plant and equipment, gross

$ 503

$ 446

Other Current Liabilities (Schedule Of Other Current Liabilities) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Other Liabilities, Current [Abstract]

Accrued salaries, wages and benefits

$ 309

$ 407

Self-insurance reserves

284

298

Other

302

335

Total other current liabilities

$ 895

$ 1,040

Debt (Major Components Of Debt) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Sep. 30, 2008

Debt Instrument [Line Items]

Revolving credit facility

$ 0

Discount on senior notes

(60)

(76)

Other

136

114

Total debt

2,220

2,182

Less current debt

84

70

Total long-term debt

2,136

2,112

3.25% Convertible Senior Unsecured Notes Due October 15, 2013 (2013 Notes) [Member]

Debt Instrument [Line Items]

Senior Notes

458

Stated interest rate

3.25%

10.50% Senior Notes Due March 2014 (2014 Notes) [Member]

Debt Instrument [Line Items]

Senior Notes

810

Stated interest rate

10.50%

6.85% Senior Notes Due April 2016 (2016 Notes) [Member]

Debt Instrument [Line Items]

Senior Notes

638

Stated interest rate

6.85%

7.00% Notes Due May 2018 [Member]

Debt Instrument [Line Items]

Senior Notes

120

Stated interest rate

7.00%

7.00% Notes Due January 2028 [Member]

Debt Instrument [Line Items]

Senior Notes

18

Stated interest rate

7.00%

GO Zone Tax-Exempt Bonds Due October 2033 (0.19% at 3/31/2012) [Member]

Debt Instrument [Line Items]

GO Zone tax-exempt bonds due October 2033

$ 100

Interest rate at period end

0.19%

Debt (Narrative) (Details) (USD $)

1 Months Ended

6 Months Ended

Mar. 31, 2012

Sep. 27, 2008

2016 Notes [Member]

Mar. 31, 2012

3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]

Sep. 30, 2008

3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]

Mar. 31, 2012

GO Zone Tax-Exempt Bonds Due October 2033 [Member]

Nov. 30, 2008

Go Zone Tax Exempt Bonds [Member]

Oct. 31, 2008

Go Zone Tax Exempt Bonds [Member]

Apr. 2, 2011

Prior To Credit Rating Adjustment [Member]

2016 Notes [Member]

Apr. 2, 2011

After Credit Rating Adjustment [Member]

2016 Notes [Member]

Mar. 31, 2012

Standby Letters of Credit [Member]

Mar. 31, 2012

Bilateral Letters Of Credit [Member]

Sep. 30, 2008

Accounting Standards Update 2010-11 [Member]

3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]

Sep. 30, 2008

Common Class A [Member]

3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]

Mar. 31, 2012

Common Class A [Member]

3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]

Debt Instrument [Line Items]

Amount available under this facility

$ 1,000,000,000

Amount available for borrowing

955,000,000

Letters of credit issued amount

45,000,000

150,000,000

Debt instrument, face amount

458,000,000

Interest rate

6.60%

3.25%

Interest rate at period end

0.19%

7.35%

6.85%

Conversion rate

59.1935

Principal amounts for conversion

1,000

Conversion price, per share

$ 16.89

Debt Instrument, Convertible, Subordinated Exchangeable Threshold Period, During Trading Period Evaluation

20 days

Debt Instrument, Convertible, Subordinated Exchangeable Trading Period Evaluation in Preceding Quarter

30 days

Minimum percentage of exchange price

130.00%

Minimum trade price

$ 21.96

Debt Instrument, Convertible, Trading Period

5 days

Debt Instrument, Convertible, Subordinated Exchangeable Measurement Period

10 days

Percentage trading price per principal amount, upper limit

98.00%

Debt instrument, interest rate, effective percentage

8.26%

Discount on note

92,000,000

After tax amount recorded to capital in excess of par value

56,000,000

Discount Accretion Term

5 years

Deferred tax assets

36,000,000

Call options purchased in private transactions

94,000,000

Number of class A stock that can be acquired through call options

27,000,000

Option Indexed to Issuer's Equity, Strike Price

16.89

Proceeds from sale of warrants

44,000,000

Shares able to be purchased through warrants

27,000,000

Exercise price of warrants, per share

22.31

Maximum amount of shares that may be issued to satisfy conversion

35,900,000

Increase in stock price that would result in the issuance of additional stock

10.00%

Conversion price factoring convertible note hedge and warrant transactions, per share

$ 22.31

Additional stock issuance if increase in share price

2,500,000

Proceeds from the sale of Gulf Opportunity Zone tax-exempt bonds

$ 100,000,000

Interest rate swap period in force

5 years

Income Taxes (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Oct. 1, 2011

Income Tax Disclosure [Abstract]

Effective tax rate

35.30%

34.90%

35.50%

34.30%

Unrecognized tax benefits

$ 171

$ 174

Unrecognized tax benefits that would impact effective tax rate

154

155

Unrecognized tax benefits, income tax penalties and interest accrued

$ 58

Other Income And Charges (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Other Income and Expenses [Abstract]

Equity Earnings In Joint Ventures

$ 8

Foreign currency exchange gains, net

6

Gain on disposal of an equity method investment

$ 11

Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Dec. 31, 2011

Apr. 2, 2011

Jan. 1, 2011

Mar. 31, 2012

Apr. 2, 2011

Earnings Per Share, Basic and Diluted [Line Items]

Net income

$ 166

$ 156

$ 322

$ 450

Less: Net loss attributable to noncontrolling interest

0

(3)

0

(7)

Net Income Attributable to Tyson

166

159

322

457

Undistributed earnings

152

144

293

427

Stock options and restricted stock

5

6

5

Convertible 2013 Notes

4

2

4

1

Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions

373

383

374

381

Net Income Per Share Attributable to Tyson - Diluted

$ 0.44

$ 0.42

$ 0.86

$ 1.20

Class A [Member]

Earnings Per Share, Basic and Diluted [Line Items]

Less Dividends:

12

13

24

25

Undistributed earnings

125

120

242

354

Weighted average number of shares outstanding - Basic

294

305

295

305

Net Income Per Share Attributable to Tyson - Basic

$ 0.47

$ 0.43

$ 0.90

$ 1.24

Dividends, per share

$ 0.040

$ 0.080

Class B [Member]

Earnings Per Share, Basic and Diluted [Line Items]

Less Dividends:

2

5

Undistributed earnings

$ 27

$ 24

$ 51

$ 73

Weighted average number of shares outstanding - Basic

70

Net Income Per Share Attributable to Tyson - Basic

$ 0.42

$ 0.39

$ 0.81

$ 1.12

Dividends, per share

$ 0.036

$ 0.072

Earnings Per Share (Narrative) (Details)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Classes

Apr. 2, 2011

Earnings Per Share, Basic and Diluted [Line Items]

Antidilutive securities excluded from computation of earnings per share, shares

4

Number Of Classes Of Common Stock

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

1.0

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

Derivative Financial Instruments (Aggregate Outstanding Notionals Related To Cash Flow Hedges) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Derivative [Line Items]

Aggregate notional of derivative designated as hedging, Foreign Currency

$ 78

$ 75

Corn (in bushels)

Derivative [Line Items]

Aggregate notional of derivative designated as hedging, Commodity

12,000,000

6,000,000

Soy Meal (in tons)

Derivative [Line Items]

Aggregate notional of derivative designated as hedging, Commodity

81,300

82,300

Derivative Financial Instruments (Pretax Impact Of Cash Flow Hedge Derivative Instruments On The Consolidated Statements Of Income) (Details) (Cash Flow Hedge [Member], USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Derivative [Line Items]

Gain/(Loss) Recognized in OCI on Derivatives

$ 2

$ 3

$ (1)

$ 28

Gain/(Loss) Reclassified from OCI to Earnings

(10)

6

(11)

26

Cost of Sales [Member]

Derivative [Line Items]

Gain/(Loss) Reclassified from OCI to Earnings

(10)

6

(16)

26

Other Income/Expense [Member]

Derivative [Line Items]

Gain/(Loss) Reclassified from OCI to Earnings

0

5

0

Commodity Contracts [Member]

Derivative [Line Items]

Gain/(Loss) Recognized in OCI on Derivatives

4

3

6

28

Foreign Exchange Contracts [Member]

Derivative [Line Items]

Gain/(Loss) Recognized in OCI on Derivatives

$ (2)

$ 0

$ (7)

$ 0

Derivative Financial Instruments (Aggregate Outstanding Notionals Related To Fair Value Hedges) (Details)

Mar. 31, 2012

lb

Oct. 1, 2011

lb

Live Cattle (in pounds)

Derivative [Line Items]

Aggregate notional of derivative designated as hedging, Commodity

322,000,000

318,000,000

Lean Hogs (in pounds)

Derivative [Line Items]

Aggregate notional of derivative designated as hedging, Commodity

444,000,000

601,000,000

Derivative Financial Instruments (Gains Or Losses On The Hedging Items) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Derivative [Line Items]

Gain/(Loss) on forwards

$ 20

$ 1

$ 49

$ 35

Forward Contracts [Member]

Derivative [Line Items]

Gain/(Loss) on forwards

8

(43)

0

(44)

Purchase Contracts [Member]

Derivative [Line Items]

Gain/(Loss) on forwards

$ (8)

$ 43

$ 0

$ 44

Derivative Financial Instruments (Pretax Impact Of Derivative Instruments On The Consolidated Statements Of Income) (Details) (Net Investment Hedging [Member], USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Other Income/Expense [Member]

Derivative [Line Items]

Gain/(Loss) Reclassified from OCI to Earnings

$ 0

Foreign Exchange Contracts [Member]

Derivative [Line Items]

Gain/(Loss) Recognized in OCI on Derivatives

$ (1)

$ (2)

$ (3)

Derivative Financial Instruments (Aggregate Outstanding Notionals Related To Undesignated Positions) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

bu

Oct. 1, 2011

bu

Corn (in bushels)

Derivative [Line Items]

Aggregate notional of undesignated derivatives, Commodity

4,000,000

17,000,000

Soy Meal (in tons)

Derivative [Line Items]

Aggregate notional of undesignated derivatives, Commodity

33,700

174,600

Soy Oil (in pounds)

Derivative [Line Items]

Aggregate notional of undesignated derivatives, Commodity

6,000,000

13,000,000

Live Cattle (in pounds)

Derivative [Line Items]

Aggregate notional of undesignated derivatives, Commodity

120,000,000

72,000,000

Lean Hogs (in pounds)

Derivative [Line Items]

Aggregate notional of undesignated derivatives, Commodity

129,000,000

19,000,000

Foreign Currency [Member]

Derivative [Line Items]

Notional amount of undesignated derivatives

$ 68

$ 110

Interest Rate Swap [Member]

Derivative [Line Items]

Notional amount of undesignated derivatives

$ 34

$ 39

Derivative Financial Instruments (Pretax Impact Of Undesignated Derivatives) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Derivative [Line Items]

Gain/(Loss) Recognized in Earnings

$ 20

$ 1

$ 49

$ 35

Commodity Contracts [Member] |
Sales [Member]

Derivative [Line Items]

Gain/(Loss) Recognized in Earnings

(6)

17

(9)

31

Commodity Contracts [Member] |
Cost of Sales [Member]

Derivative [Line Items]

Gain/(Loss) Recognized in Earnings

29

(10)

58

11

Foreign Exchange Contracts [Member] |
Other Income/Expense [Member]

Derivative [Line Items]

Gain/(Loss) Recognized in Earnings

$ (3)

$ (6)

$ 0

$ (7)

Derivative Financial Instruments (Fair Value Of All Derivative Instruments) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Derivative [Line Items]

Derivative Assets

$ 72

$ 41

Derivative Liabilities

62

165

Nondesignated [Member]

Derivative [Line Items]

Derivative Assets

21

26

Derivative Liabilities

60

124

Nondesignated [Member] |
Commodity Contracts [Member]

Derivative [Line Items]

Derivative Assets

20

21

Derivative Liabilities

59

121

Nondesignated [Member] |
Foreign Exchange Contracts [Member]

Derivative [Line Items]

Derivative Assets

1

5

Derivative Liabilities

0

1

Nondesignated [Member] |
Interest Rate Contracts [Member]

Derivative [Line Items]

Derivative Liabilities

1

2

Designated as Hedging Instrument [Member]

Derivative [Line Items]

Derivative Assets

51

15

Derivative Liabilities

2

41

Designated as Hedging Instrument [Member] |
Commodity Contracts [Member]

Derivative [Line Items]

Derivative Assets

51

3

Derivative Liabilities

1

41

Designated as Hedging Instrument [Member] |
Foreign Exchange Contracts [Member]

Derivative [Line Items]

Derivative Assets

0

12

Derivative Liabilities

$ 1

$ 0

Derivative Financial Instruments (Narrative) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 31, 2012

M

Oct. 1, 2011

Derivative [Line Items]

Maximum length of time hedged forecasted transactions, months

18

Notional amount of foreign currency derivatives

$ 27

$ 35

Maximum length of time hedged undesignated positions, months

18

Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative assets and liabilities posted cash collateral

$ 10

$ 113

Fair Value, Measurements, Recurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Commodity Derivatives

21

3

Foreign Exchange Forward Contracts

0

15

Deferred Compensation Assets

178

150

Total Assets

318

292

Foreign Exchange Forward Contracts

0

Total Liabilities

1

29

Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Commodity Derivatives

0

Foreign Exchange Forward Contracts

0

Deferred Compensation Assets

28

Total Assets

36

35

Foreign Exchange Forward Contracts

0

Total Liabilities

0

Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Commodity Derivatives

71

24

Foreign Exchange Forward Contracts

1

17

Deferred Compensation Assets

150

122

Total Assets

254

197

Foreign Exchange Forward Contracts

1

Total Liabilities

62

165

Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Commodity Derivatives

0

Foreign Exchange Forward Contracts

0

Deferred Compensation Assets

0

Total Assets

79

83

Foreign Exchange Forward Contracts

0

Total Liabilities

0

Fair Value, Measurements, Recurring [Member] |
Netting [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Commodity Derivatives

(50)¹

(21)¹

Foreign Exchange Forward Contracts

(1)¹

(2)¹

Deferred Compensation Assets

0 ¹

Total Assets

(51)¹

(23)¹

Foreign Exchange Forward Contracts

(1)¹

Total Liabilities

(61)¹

(136)¹

Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

111

117

Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member] |
Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

0

Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member] |
Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

32

34

Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member] |
Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

79

83

Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member] |
Netting [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

0 ¹

Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

8

7

Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member] |
Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

8

7

Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member] |
Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

0

Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member] |
Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

0

Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member] |
Netting [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Available for Sale Securities:

0 ¹

Commodity [Member] |
Fair Value, Measurements, Recurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

0

27

Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

0

Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

60

162

Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

0

Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Netting [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

(60)¹

(135)¹

Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

1

2

Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

0

Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

1

2

Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

0

Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member] |
Netting [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Derivative Financial Instruments, Liabilities

$ 0 ¹

[1] Our derivative assets and liabilities are presented in our Consolidated Condensed Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting arrangement exists between the counterparty to a derivative contract and us. At March 31, 2012, and October 1, 2011, we had posted with various counterparties $10 million and $113 million, respectively, of cash collateral and held no cash collateral.

Fair Value Measurements (Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

Balance at beginning of year

$ 83

$ 73

Total realized and unrealized gains (losses), Included in earnings

1

0

Total realized and unrealized gains (losses), Included in other comprehensive income (loss)

0

Purchases

12

9

Issuances

0

Settlements

(17)

(9)

Balance at end of period

79

73

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

$ 0

Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) (USD $)

Share data in Millions, unless otherwise specified

6 Months Ended

12 Months Ended

Mar. 31, 2012

Oct. 1, 2011

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Other than Temporary Impairment Losses, Investments, Available-for-sale Securities

$ 2,000,000

$ 3,000,000

Available-For-Sale Securities, Debt Maturity Date, Range, Maximum

35 years

Class Of Warrant Or Right Exercise, Number Of Shares Acquired

8

Class of Warrant or Right, Number of Securities Called by Warrants or Rights

4.25

Class of warrant or right average exercise price of warrants or rights (USD per warrant)

2.87

U.S. Treasury and Agency [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Amortized Cost Basis

31,000,000

33,000,000

Fair Value

32,000,000

34,000,000

Unrealized Gain/(Loss)

1,000,000

Corporate And Asset-Backed [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Amortized Cost Basis

58,000,000 ¹

54,000,000 ¹

Fair Value

60,000,000 ¹

56,000,000 ¹

Unrealized Gain/(Loss)

2,000,000 ¹

Redeemable Preferred Stock [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Amortized Cost Basis

19,000,000

27,000,000

Fair Value

19,000,000

27,000,000

Unrealized Gain/(Loss)

0

Common Stock [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Amortized Cost Basis

9,000,000

Fair Value

8,000,000

7,000,000

Unrealized Gain/(Loss)

$ (1,000,000)

$ (2,000,000)

[1] At March 31, 2012, and October 1, 2011, the amortized cost basis for Corporate and Asset-Backed debt securities had been reduced by accumulated other than temporary impairments of $2 million and $3 million, respectively.

Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Fair Value Disclosures [Abstract]

Total Debt, Fair Value

$ 2,451

$ 2,334

Total Debt, Carrying Value

$ 2,220

$ 2,182

Comprehensive Income (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Statement of Income and Comprehensive Income [Abstract]

Net income

$ 166

$ 156

$ 322

$ 450

Net hedging unrealized (gain) loss reclassified to earnings

6

(4)

7

(17)

Net hedging unrealized gain (loss)

1

2

(1)

14

Unrealized gain (loss) on investments

0

2

1

0

Currency translation adjustment

27

24

30

19

Postretirement benefits reserve adjustments

1

2

1

Total comprehensive income

201

181

361

467

Comprehensive loss attributable to noncontrolling interest

0

(3)

0

(7)

Total comprehensive income attributable to Tyson

$ 201

$ 184

$ 361

$ 474

Comprehensive Income (Related Tax Effects Allocated To Components Of Comprehensive Income Loss) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Statement of Income and Comprehensive Income [Abstract]

Net hedging unrealized (gain) loss reclassified to earnings

$ 4

$ (2)

$ 4

$ (9)

Net hedging unrealized gain

1

0

14

Unrealized gain on investments

0

1

0

Total income tax expense

$ 5

$ (1)

$ 5

Segment Reporting (Segment Reporting Information, By Segment) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Segment Reporting Information [Line Items]

Sales

$ 8,268

$ 8,000

$ 16,597

$ 15,615

Operating Income (Loss)

302

303

580

801

Total Other (Income) Expense

45

62

80

115 ¹

Income before Income Taxes

257

241

500

686

Gain on disposal of an equity method investment

11

Chicken [Member]

Segment Reporting Information [Line Items]

Sales

2,911

2,739

5,673

5,358

Operating Income (Loss)

145

37

177

218

Beef [Member]

Segment Reporting Information [Line Items]

Sales

3,369

3,333

6,836

6,518

Operating Income (Loss)

(1)

94

30

210

Pork [Member]

Segment Reporting Information [Line Items]

Sales

1,372

1,384

2,847

2,622

Operating Income (Loss)

115

146

280

323

Prepared Foods [Member]

Segment Reporting Information [Line Items]

Sales

807

778

1,668

1,584

Operating Income (Loss)

44

31

95

59

Other [Member]

Segment Reporting Information [Line Items]

Sales

46

25

100

33

Operating Income (Loss)

(1)

(5)

(2)

(9)

Intersegment Sales [Member]

Segment Reporting Information [Line Items]

Sales

$ (237)

$ (259)

$ (527)

$ (500)

[1] Includes $11 million gain related to a sale of interests in an equity method investment.

Segment Reporting (Narrative) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

3 Months Ended

6 Months Ended

Mar. 31, 2012

Segments

Mar. 31, 2012

Beef [Member]

Apr. 2, 2011

Beef [Member]

Mar. 31, 2012

Pork [Member]

Apr. 2, 2011

Pork [Member]

Mar. 31, 2012

Intersegment Elimination [Member]

Beef [Member]

Apr. 2, 2011

Intersegment Elimination [Member]

Beef [Member]

Mar. 31, 2012

Intersegment Elimination [Member]

Pork [Member]

Apr. 2, 2011

Intersegment Elimination [Member]

Pork [Member]

Segment Reporting Information [Line Items]

Number of segments

4

Intersegment Sales

$ 49

$ 51

$ 188

$ 208

$ 113

$ 101

$ 414

$ 399

Commitments And Contingencies Commitments (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 31, 2012

Oct. 1, 2011

Guarantor Obligations [Line Items]

Guarantor Obligations, Maximum Exposure, Remaining Lease Period (in years)

7 years

Potential maximum obligation

$ 220

Total receivables under cash flow assistance programs

23

28

Uncollectible receivables

9

10

Guarantee of Indebtedness of Others [Member]

Guarantor Obligations [Line Items]

Guarantor Obligations, Maximum Exposure, Period (in years)

10 years

Maximum potential amount

82

Residual Value Guarantees [Member]

Guarantor Obligations [Line Items]

Maximum potential amount

60

Amount recoverable through various recourse provisions

$ 54

Commitments And Contingencies Contingencies (Details) (USD $)

0 Months Ended

1 Months Ended

Oct. 20, 2010

TFM Parent, Guarantors [Member]

Claims

Oct. 20, 2010

Tyson Prepared Foods Plant [Member]

Plantiffs

Claims

Mar. 17, 2011

Garcia Case [Member]

Sep. 26, 2011

Bouaphakeo Case [Member]

Jun. 30, 2005

State Of Oklahoma [Member]

acre

Apr. 30, 2010

Armstrong And Clardy Cases [Member]

Jun. 30, 2009

Armstrong Case [Member]

Plantiffs

May 8, 2008

Armstrong Case [Member]

Poultry_Growers

Oct. 30, 2009

Clardy Case [Member]

Poultry_Growers

Dec. 31, 2010

United States Environmental Protection Agency (EPA) [Member]

Facilities

Jun. 30, 2005

Subsidiaries [Member]

State Of Oklahoma [Member]

Subsidiary

Jun. 30, 2005

Poultry Integrators [Member]

State Of Oklahoma [Member]

Integrators

May 8, 2008

Employees [Member]

Armstrong Case [Member]

Employees

Loss Contingencies [Line Items]

Number of cases filed

12

1

15

Settlement agreement, expense no more than

$ 503,011

$ 2,892,379

Legal fees

3,475,422

Number of plaintiffs

6

10

52

20

Number of defendants to the lawsuit

3

6

2

Area of land encompassed, acres

1,000,000

Loss contingency, damages

800,000,000

Final judgment amount

$ 8,655,735

Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Mar. 31, 2012

Apr. 2, 2011

Condensed Financial Statements, Captions [Line Items]

Sales

$ 8,268

$ 8,000

$ 16,597

$ 15,615

Cost of Sales

7,733

7,467

15,569

14,338

Gross Profit

535

533

1,028

1,277

Selling, General and Administrative

233

230

448

476

Operating Income

302

303

580

801

Other (Income) Expense:

Interest expense, net

47

60

94

123

Other, net

(2)

2

(14)

(8)

Equity in net earnings of subsidiaries

0

Total Other (Income) Expense

45

62

80

115 ¹

Income (Loss) before Income Taxes

257

241

500

686

Income Tax Expense

91

85

178

236

Net Income

166

156

322

450

Less: Net Loss Attributable to Noncontrolling Interest

0

(3)

0

(7)

Net Income Attributable to Tyson

166

159

322

457

TFI Parent [Member]

Condensed Financial Statements, Captions [Line Items]

Sales

76

10

128

115

Cost of Sales

(16)

(8)

(51)

Gross Profit

92

18

136

166

Selling, General and Administrative

9

21

26

Operating Income

83

9

115

140

Other (Income) Expense:

Interest expense, net

2

27

(11)

(27)

Other, net

(1)

4

0

(8)

Equity in net earnings of subsidiaries

(107)

(168)

(234)

(333)

Total Other (Income) Expense

(106)

(137)

(245)

(368)

Income (Loss) before Income Taxes

189

146

360

508

Income Tax Expense

23

(13)

38

51

Net Income

166

159

322

457

Less: Net Loss Attributable to Noncontrolling Interest

0

Net Income Attributable to Tyson

166

159

322

457

Subtotal, Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Sales

7,855

7,647

15,720

14,894

Cost of Sales

7,440

7,152

14,901

13,837

Gross Profit

415

495

819

1,057

Selling, General and Administrative

210

201

391

405

Operating Income

205

294

428

652

Other (Income) Expense:

Interest expense, net

46

36

109

154

Other, net

(2)

(1)

(8)

(2)

Equity in net earnings of subsidiaries

2

(8)

(9)

(23)

Total Other (Income) Expense

46

27

92

129

Income (Loss) before Income Taxes

159

267

336

523

Income Tax Expense

55

85

111

169

Net Income

104

182

225

354

Less: Net Loss Attributable to Noncontrolling Interest

0

Net Income Attributable to Tyson

104

182

225

354

TFM Parent, 2014 and 2016 Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Sales

4,620

4,609

9,461

8,942

Cost of Sales

4,469

4,327

9,111

8,327

Gross Profit

151

282

350

615

Selling, General and Administrative

57

51

107

Operating Income

94

231

243

508

Other (Income) Expense:

Interest expense, net

24

23

56

83

Other, net

0

Equity in net earnings of subsidiaries

(29)

(55)

(51)

Total Other (Income) Expense

(5)

(6)

1

32

Income (Loss) before Income Taxes

99

237

242

476

Income Tax Expense

24

72

64

146

Net Income

75

165

178

330

Less: Net Loss Attributable to Noncontrolling Interest

0

Net Income Attributable to Tyson

75

165

178

330

2014 Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Sales

3,457

3,302

6,764

6,457

Cost of Sales

3,199

3,089

6,301

6,015

Gross Profit

258

213

463

442

Selling, General and Administrative

147

150

278

298

Operating Income

111

63

185

144

Other (Income) Expense:

Interest expense, net

22

13

53

71

Other, net

(2)

(1)

(8)

(2)

Equity in net earnings of subsidiaries

5

(3)

0

(16)

Total Other (Income) Expense

25

9

45

53

Income (Loss) before Income Taxes

86

54

140

91

Income Tax Expense

31

13

47

23

Net Income

55

41

93

68

Less: Net Loss Attributable to Noncontrolling Interest

0

Net Income Attributable to Tyson

55

41

93

68

Eliminations, 2014 Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Sales

(222)

(264)

(505)

Cost of Sales

(228)

(264)

(511)

(505)

Gross Profit

6

0

6

0

Selling, General and Administrative

6

0

6

0

Operating Income

0

Other (Income) Expense:

Interest expense, net

0

Other, net

0

Equity in net earnings of subsidiaries

26

24

46

44

Total Other (Income) Expense

26

24

46

44

Income (Loss) before Income Taxes

(26)

(24)

(46)

(44)

Income Tax Expense

0

Net Income

(26)

(24)

(46)

(44)

Less: Net Loss Attributable to Noncontrolling Interest

0

Net Income Attributable to Tyson

(26)

(24)

(46)

(44)

Non-Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Sales

410

347

864

705

Cost of Sales

374

327

783

651

Gross Profit

36

20

81

54

Selling, General and Administrative

22

20

44

45

Operating Income

14

0

37

9

Other (Income) Expense:

Interest expense, net

(1)

(3)

(4)

Other, net

1

(1)

(6)

2

Equity in net earnings of subsidiaries

(4)

(10)

(6)

Total Other (Income) Expense

(4)

(8)

(20)

(8)

Income (Loss) before Income Taxes

18

8

57

17

Income Tax Expense

13

29

16

Net Income

5

(5)

28

1

Less: Net Loss Attributable to Noncontrolling Interest

0

(3)

0

(7)

Net Income Attributable to Tyson

5

(2)

28

8

Eliminations [Member]

Condensed Financial Statements, Captions [Line Items]

Sales

(73)

(4)

(115)

(99)

Cost of Sales

(65)

(4)

(107)

(99)

Gross Profit

(8)

0

(8)

0

Selling, General and Administrative

(8)

0

(8)

0

Operating Income

0

Other (Income) Expense:

Interest expense, net

0

Other, net

0

Equity in net earnings of subsidiaries

109

180

253

362

Total Other (Income) Expense

109

180

253

362

Income (Loss) before Income Taxes

(109)

(180)

(253)

(362)

Income Tax Expense

0

Net Income

(109)

(180)

(253)

(362)

Less: Net Loss Attributable to Noncontrolling Interest

0

Net Income Attributable to Tyson

$ (109)

$ (180)

$ (253)

$ (362)

[1] Includes $11 million gain related to a sale of interests in an equity method investment.

Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) (USD $)

In Millions, unless otherwise specified

Mar. 31, 2012

Oct. 1, 2011

Apr. 2, 2011

Oct. 2, 2010

Assets

Cash and cash equivalents

$ 723

$ 716

$ 794

$ 978

Accounts receivable, net

1,253

1,321

Inventories

2,622

2,587

Other current assets

152

156

Total Current Assets

4,750

4,780

Net Property, Plant and Equipment

3,943

3,823

Goodwill

1,892

Intangible Assets

143

149

Other Assets

442

427

Investment in Subsidiaries

0

Total Assets

11,170

11,071

Liabilities and Shareholders' Equity

Current debt

84

70

Accounts payable

1,191

1,264

Other current liabilities

895

1,040

Total Current Liabilities

2,170

2,374

Long-Term Debt

2,136

2,112

Deferred Income Taxes

433

424

Other Liabilities

496

476

Total Tyson Shareholders' Equity

5,906

5,657

Noncontrolling Interest

29

28

Total Shareholders' Equity

5,935

5,685

Total Liabilities and Shareholders' Equity

11,170

11,071

TFI Parent [Member]

Assets

Cash and cash equivalents

2

1

2

Accounts receivable, net

2

1

Inventories

1

2

Other current assets

79

62

Total Current Assets

84

66

Net Property, Plant and Equipment

35

37

Goodwill

0

Intangible Assets

0

Other Assets

1,891

2,179

Investment in Subsidiaries

11,665

11,396

Total Assets

13,675

13,678

Liabilities and Shareholders' Equity

Current debt

4

2

Accounts payable

12

8

Other current liabilities

5,580

5,808

Total Current Liabilities

5,596

5,818

Long-Term Debt

1,992

1,972

Deferred Income Taxes

0

Other Liabilities

181

231

Total Tyson Shareholders' Equity

5,906

5,657

Noncontrolling Interest

0

Total Shareholders' Equity

5,906

5,657

Total Liabilities and Shareholders' Equity

13,675

13,678

Subtotal, Guarantors [Member]

Assets

Cash and cash equivalents

456

415

514

733

Accounts receivable, net

1,091

1,162

Inventories

2,379

2,366

Other current assets

109

64

Total Current Assets

4,035

4,007

Net Property, Plant and Equipment

3,323

3,244

Goodwill

1,847

Intangible Assets

76

80

Other Assets

309

312

Investment in Subsidiaries

1,055

932

Total Assets

10,645

10,422

Liabilities and Shareholders' Equity

Current debt

0

Accounts payable

1,093

1,173

Other current liabilities

423

453

Total Current Liabilities

1,516

1,626

Long-Term Debt

1,823

2,114

Deferred Income Taxes

443

415

Other Liabilities

367

333

Total Tyson Shareholders' Equity

6,496

5,934

Noncontrolling Interest

0

Total Shareholders' Equity

6,496

5,934

Total Liabilities and Shareholders' Equity

10,645

10,422

TFM Parent, 2014 and 2016 Guarantors [Member]

Assets

Cash and cash equivalents

3

1

2

Accounts receivable, net

476

506

Inventories

960

926

Other current assets

78

95

Total Current Assets

1,517

1,528

Net Property, Plant and Equipment

874

875

Goodwill

880

881

Intangible Assets

29

31

Other Assets

167

180

Investment in Subsidiaries

2,047

1,923

Total Assets

5,514

5,418

Liabilities and Shareholders' Equity

Current debt

0

Accounts payable

504

525

Other current liabilities

129

144

Total Current Liabilities

633

669

Long-Term Debt

1,043

1,198

Deferred Income Taxes

107

120

Other Liabilities

140

142

Total Tyson Shareholders' Equity

3,591

3,289

Noncontrolling Interest

0

Total Shareholders' Equity

3,591

3,289

Total Liabilities and Shareholders' Equity

5,514

5,418

2014 Guarantors [Member]

Assets

Cash and cash equivalents

453

414

513

731

Accounts receivable, net

615

656

Inventories

1,419

1,440

Other current assets

97

102

Total Current Assets

2,584

2,612

Net Property, Plant and Equipment

2,449

2,369

Goodwill

967

966

Intangible Assets

47

49

Other Assets

142

147

Investment in Subsidiaries

859

769

Total Assets

7,048

6,912

Liabilities and Shareholders' Equity

Current debt

0

Accounts payable

589

648

Other current liabilities

360

442

Total Current Liabilities

949

1,090

Long-Term Debt

780

916

Deferred Income Taxes

336

310

Other Liabilities

227

191

Total Tyson Shareholders' Equity

4,756

4,405

Noncontrolling Interest

0

Total Shareholders' Equity

4,756

4,405

Total Liabilities and Shareholders' Equity

7,048

6,912

Eliminations, 2014 Guarantors [Member]

Assets

Cash and cash equivalents

0

Accounts receivable, net

0

Inventories

0

Other current assets

(66)

(133)

Total Current Assets

(66)

(133)

Net Property, Plant and Equipment

0

Goodwill

0

Intangible Assets

0

Other Assets

0

(15)

Investment in Subsidiaries

(1,851)

(1,760)

Total Assets

(1,917)

(1,908)

Liabilities and Shareholders' Equity

Current debt

0

Accounts payable

0

Other current liabilities

(66)

(133)

Total Current Liabilities

(66)

(133)

Long-Term Debt

0

Deferred Income Taxes

0

(15)

Other Liabilities

0

Total Tyson Shareholders' Equity

(1,851)

(1,760)

Noncontrolling Interest

0

Total Shareholders' Equity

(1,851)

(1,760)

Total Liabilities and Shareholders' Equity

(1,917)

(1,908)

Non-Guarantors [Member]

Assets

Cash and cash equivalents

265

300

279

243

Accounts receivable, net

219

157

Inventories

242

219

Other current assets

54

Total Current Assets

780

730

Net Property, Plant and Equipment

585

542

Goodwill

45

Intangible Assets

67

69

Other Assets

297

296

Investment in Subsidiaries

330

319

Total Assets

2,104

2,001

Liabilities and Shareholders' Equity

Current debt

110

68

Accounts payable

86

83

Other current liabilities

392

474

Total Current Liabilities

588

625

Long-Term Debt

277

269

Deferred Income Taxes

8

9

Other Liabilities

29

Total Tyson Shareholders' Equity

1,173

1,041

Noncontrolling Interest

29

28

Total Shareholders' Equity

1,202

1,069

Total Liabilities and Shareholders' Equity

2,104

2,001

Eliminations [Member]

Assets

Cash and cash equivalents

0

Accounts receivable, net

(59)

1

Inventories

0

Other current assets

(90)

(24)

Total Current Assets

(149)

(23)

Net Property, Plant and Equipment

0

Goodwill

0

Intangible Assets

0

Other Assets

(2,055)

(2,360)

Investment in Subsidiaries

(13,050)

(12,647)

Total Assets

(15,254)

(15,030)

Liabilities and Shareholders' Equity

Current debt

(30)

0

Accounts payable

0

Other current liabilities

(5,500)

(5,695)

Total Current Liabilities

(5,530)

(5,695)

Long-Term Debt

(1,956)

(2,243)

Deferred Income Taxes

(18)

0

Other Liabilities

(81)

(117)

Total Tyson Shareholders' Equity

(7,669)

(6,975)

Noncontrolling Interest

0

Total Shareholders' Equity

(7,669)

(6,975)

Total Liabilities and Shareholders' Equity

$ (15,254)

$ (15,030)

Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Mar. 31, 2012

Apr. 2, 2011

Condensed Financial Statements, Captions [Line Items]

Cash Provided by (Used for) Operating Activities

$ 454

$ 203

Cash Flows From Investing Activities:

Additions to property, plant and equipment

(344)

(319)

(Purchases of)/ Proceeds from marketable securities, net

(12)

(80)

Proceeds from Collection of Notes Receivable

0

51

Other, net

17

25

Cash Used for Investing Activities

(339)

(323)

Cash Flows From Financing Activities:

Net change in debt

15

(65)

Purchases of Tyson Class A common stock

(128)

(21)

Dividends

(29)

(30)

Other, net

29

45

Net change in intercompany balances

0

Cash Used for Financing Activities

(113)

(71)

Effect of Exchange Rate Change on Cash

5

7

Increase (Decrease) in Cash and Cash Equivalents

7

(184)

Cash and Cash Equivalents at Beginning of Year

716

978

Cash and Cash Equivalents at End of Period

723

794

TFI Parent [Member]

Condensed Financial Statements, Captions [Line Items]

Cash Provided by (Used for) Operating Activities

101

110

Cash Flows From Investing Activities:

Additions to property, plant and equipment

0

(1)

(Purchases of)/ Proceeds from marketable securities, net

0

Proceeds from Collection of Notes Receivable

0

Other, net

2

23

Cash Used for Investing Activities

2

22

Cash Flows From Financing Activities:

Net change in debt

0

(69)

Purchases of Tyson Class A common stock

(128)

(21)

Dividends

(29)

(30)

Other, net

29

37

Net change in intercompany balances

26

(50)

Cash Used for Financing Activities

(102)

(133)

Effect of Exchange Rate Change on Cash

0

Increase (Decrease) in Cash and Cash Equivalents

1

(1)

Cash and Cash Equivalents at Beginning of Year

1

2

Cash and Cash Equivalents at End of Period

2

1

Subtotal, Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Cash Provided by (Used for) Operating Activities

395

154

Cash Flows From Investing Activities:

Additions to property, plant and equipment

(288)

(270)

(Purchases of)/ Proceeds from marketable securities, net

(11)

(79)

Proceeds from Collection of Notes Receivable

0

Other, net

8

3

Cash Used for Investing Activities

(291)

(346)

Cash Flows From Financing Activities:

Net change in debt

0

(6)

Purchases of Tyson Class A common stock

0

Dividends

0

Other, net

0

Net change in intercompany balances

(63)

(21)

Cash Used for Financing Activities

(63)

(27)

Effect of Exchange Rate Change on Cash

0

Increase (Decrease) in Cash and Cash Equivalents

41

(219)

Cash and Cash Equivalents at Beginning of Year

415

733

Cash and Cash Equivalents at End of Period

456

514

TFM Parent, 2014 and 2016 Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Cash Provided by (Used for) Operating Activities

162

95

Cash Flows From Investing Activities:

Additions to property, plant and equipment

(53)

(61)

(Purchases of)/ Proceeds from marketable securities, net

(8)

(58)

Proceeds from Collection of Notes Receivable

0

Other, net

2

0

Cash Used for Investing Activities

(59)

(119)

Cash Flows From Financing Activities:

Net change in debt

0

(6)

Purchases of Tyson Class A common stock

0

Dividends

0

Other, net

0

Net change in intercompany balances

(101)

29

Cash Used for Financing Activities

(101)

23

Effect of Exchange Rate Change on Cash

0

Increase (Decrease) in Cash and Cash Equivalents

2

(1)

Cash and Cash Equivalents at Beginning of Year

1

2

Cash and Cash Equivalents at End of Period

3

1

2014 Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Cash Provided by (Used for) Operating Activities

233

59

Cash Flows From Investing Activities:

Additions to property, plant and equipment

(235)

(209)

(Purchases of)/ Proceeds from marketable securities, net

(3)

(21)

Proceeds from Collection of Notes Receivable

0

Other, net

6

3

Cash Used for Investing Activities

(232)

(227)

Cash Flows From Financing Activities:

Net change in debt

0

Purchases of Tyson Class A common stock

0

Dividends

0

Other, net

0

Net change in intercompany balances

38

(50)

Cash Used for Financing Activities

38

(50)

Effect of Exchange Rate Change on Cash

0

Increase (Decrease) in Cash and Cash Equivalents

39

(218)

Cash and Cash Equivalents at Beginning of Year

414

731

Cash and Cash Equivalents at End of Period

453

513

Eliminations, 2014 Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Cash Provided by (Used for) Operating Activities

0

Cash Flows From Investing Activities:

Additions to property, plant and equipment

0

(Purchases of)/ Proceeds from marketable securities, net

0

Proceeds from Collection of Notes Receivable

0

Other, net

0

Cash Used for Investing Activities

0

Cash Flows From Financing Activities:

Net change in debt

0

Purchases of Tyson Class A common stock

0

Dividends

0

Other, net

0

Net change in intercompany balances

0

Cash Used for Financing Activities

0

Effect of Exchange Rate Change on Cash

0

Increase (Decrease) in Cash and Cash Equivalents

0

Cash and Cash Equivalents at Beginning of Year

0

Cash and Cash Equivalents at End of Period

0

Non-Guarantors [Member]

Condensed Financial Statements, Captions [Line Items]

Cash Provided by (Used for) Operating Activities

(42)

(41)

Cash Flows From Investing Activities:

Additions to property, plant and equipment

(56)

(48)

(Purchases of)/ Proceeds from marketable securities, net

(1)

Proceeds from Collection of Notes Receivable

0

51

Other, net

7

(1)

Cash Used for Investing Activities

(50)

1

Cash Flows From Financing Activities:

Net change in debt

15

10

Purchases of Tyson Class A common stock

0

Dividends

0

(20)

Other, net

0

8

Net change in intercompany balances

37

71

Cash Used for Financing Activities

52

69

Effect of Exchange Rate Change on Cash

5

7

Increase (Decrease) in Cash and Cash Equivalents

(35)

36

Cash and Cash Equivalents at Beginning of Year

300

243

Cash and Cash Equivalents at End of Period

265

279

Eliminations [Member]

Condensed Financial Statements, Captions [Line Items]

Cash Provided by (Used for) Operating Activities

0

(20)

Cash Flows From Investing Activities:

Additions to property, plant and equipment

0

(Purchases of)/ Proceeds from marketable securities, net

0

Proceeds from Collection of Notes Receivable

0

Other, net

0

Cash Used for Investing Activities

0

Cash Flows From Financing Activities:

Net change in debt

0

Purchases of Tyson Class A common stock

0

Dividends

0

20

Other, net

0

Net change in intercompany balances

0

Cash Used for Financing Activities

0

20

Effect of Exchange Rate Change on Cash

0

Increase (Decrease) in Cash and Cash Equivalents

0

Cash and Cash Equivalents at Beginning of Year

0

Cash and Cash Equivalents at End of Period

$ 0