TYSON FOODS INC, 10-Q filed on 2/1/2013
Quarterly Report
Document and Entity Information
3 Months Ended
Dec. 29, 2012
Entity Registrant Name
TYSON FOODS INC 
Entity Central Index Key
0000100493 
Current Fiscal Year End Date
--09-28 
Entity Filer Category
Large Accelerated Filer 
Document Type
10-Q 
Document Period End Date
Dec. 29, 2012 
Document Fiscal Year Focus
2013 
Document Fiscal Period Focus
Q1 
Amendment Flag
false 
Class A [Member]
 
Entity Common Stock, Shares Outstanding
284,518,786 
Class B [Member]
 
Entity Common Stock, Shares Outstanding
70,015,755 
Consolidated Condensed Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Sales
$ 8,402 
$ 8,329 
Cost of Sales
7,865 
7,836 
Gross Profit
537 
493 
Selling, General and Administrative
237 
215 
Operating Income
300 
278 
Other (Income) Expense:
 
 
Interest income
(1)
(2)
Interest expense
37 
49 
Other, net
0 
(12)
Total Other (Income) Expense
36 
35 
Income before Income Taxes
264 
243 
Income Tax Expense
96 
87 
Net Income
168 
156 
Less: Net Loss Attributable to Noncontrolling Interest
(5)
0 
Net Income Attributable to Tyson
$ 173 
$ 156 
Weighted Average Shares Outstanding:
 
 
Diluted, Shares
362 
376 
Net Income Per Share Attributable to Tyson:
 
 
Diluted (USD per share)
$ 0.48 
$ 0.42 
Class A [Member]
 
 
Weighted Average Shares Outstanding:
 
 
Basic, Shares
285 
297 
Net Income Per Share Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.50 
$ 0.43 
Cash Dividends Per Share:
 
 
Cash Dividends (USD per share)
$ 0.160 
$ 0.040 
Class B [Member]
 
 
Weighted Average Shares Outstanding:
 
 
Basic, Shares
70 
70 
Net Income Per Share Attributable to Tyson:
 
 
Basic (USD per share)
$ 0.45 
$ 0.39 
Cash Dividends Per Share:
 
 
Cash Dividends (USD per share)
$ 0.144 
$ 0.036 
Consolidated Condensed Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Statement of Income and Comprehensive Income [Abstract]
 
 
Net Income
$ 168 
$ 156 
Other Comprehensive Income (Loss), Net of Taxes:
 
 
Derivatives accounted for as cash flow hedges
(9)
(1)
Investments
(2)
1 
Currency translation
(1)
3 
Postretirement benefits
1 
1 
Total Other Comprehensive Income (Loss), Net of Taxes
(11)
4 
Comprehensive Income
157 
160 
Less: Comprehensive Loss Attributable to Noncontrolling Interest
(5)
0 
Comprehensive Income Attributable to Tyson
$ 162 
$ 160 
Consolidated Condensed Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Assets
 
 
Cash and cash equivalents
$ 951 
$ 1,071 
Accounts receivable, net
1,365 
1,378 
Inventories
2,932 
2,809 
Other current assets
139 
145 
Total Current Assets
5,387 
5,403 
Net Property, Plant and Equipment
4,043 
4,022 
Goodwill
1,891 
1,891 
Intangible Assets
126 
129 
Other Assets
427 
451 
Total Assets
11,874 
11,896 
Liabilities and Shareholders' Equity
 
 
Current debt
519 
515 
Accounts payable
1,435 
1,372 
Other current liabilities
892 
943 
Total Current Liabilities
2,846 
2,830 
Long-Term Debt
1,907 
1,917 
Deferred Income Taxes
536 
558 
Other Liabilities
527 
549 
Commitments and Contingencies (Note 13)
   
   
Shareholders' Equity:
 
 
Capital in excess of par value
2,281 
2,278 
Retained earnings
4,444 
4,327 
Accumulated other comprehensive loss
(74)
(63)
Treasury stock, at cost - 37 million shares at December 29, 2012, and 33 million shares at September 29, 2012
(656)
(569)
Total Tyson Shareholders' Equity
6,034 
6,012 
Noncontrolling Interest
24 
30 
Total Shareholders' Equity
6,058 
6,042 
Total Liabilities and Shareholders' Equity
11,874 
11,896 
Class A [Member]
 
 
Shareholders' Equity:
 
 
Common stock
32 
32 
Convertible Class B [Member]
 
 
Shareholders' Equity:
 
 
Common stock
$ 7 
$ 7 
Condensed Consolidated Balance Sheets (Parentheticals) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Treasury Stock, shares
37 
33 
Class A [Member]
 
 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
900 
900 
Common stock, shares issued
322 
322 
Convertible Class B [Member]
 
 
Common stock, par value
$ 0.10 
$ 0.10 
Common stock, shares authorized
900 
900 
Common stock, shares issued
70 
70 
Consolidated Condensed Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Cash Flows From Operating Activities:
 
 
Net income
$ 168 
$ 156 
Depreciation and amortization
130 
122 
Deferred income taxes
(9)
24 
Other, net
23 
27 
Net changes in working capital
(122)
9 
Cash Provided by Operating Activities
190 
338 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(157)
(182)
Purchases of marketable securities
(7)
(8)
Proceeds from sale of marketable securities
8 
11 
Other, net
4 
3 
Cash Used for Investing Activities
(152)
(176)
Cash Flows From Financing Activities:
 
 
Payments on debt
(35)
(25)
Net proceeds from borrowings
24 
45 
Purchases of Tyson Class A common stock
(115)
(50)
Dividends
(53)
(15)
Other, net
21 
22 
Cash Used for Financing Activities
(158)
(23)
Effect of Exchange Rate Change on Cash
0 
2 
Increase (Decrease) in Cash and Cash Equivalents
(120)
141 
Cash and Cash Equivalents at Beginning of Year
1,071 
716 
Cash and Cash Equivalents at End of Period
$ 951 
$ 857 
Accounting Policies
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 September 29, 2012. 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 December 29, 2012, and the results of operations for the three months ended December 29, 2012, and December 31, 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 variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
VARIABLE INTEREST ENTITIES
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 December 29, 2012, Dynamic Fuels had $157 million of total assets, of which $146 million was net property, plant and equipment, and $117 million of total liabilities, of which $100 million was long-term debt. At September 29, 2012, Dynamic Fuels had $177 million of total assets, of which $146 million was net property, plant and equipment, and $124 million of total liabilities, of which $100 million was long-term debt.
SHARE REPURCHASES
A summary of cumulative share repurchases of our Class A common stock is as follows (in millions):
 
 
Three Months Ended
 
 
December 29, 2012
 
December 31, 2011
 
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
Under share repurchase program
 
5.1

 
$
100

 
1.8

 
$
35

To fund certain obligations under equity compensation plans
 
0.8

 
15

 
0.8

 
15

Total share repurchases
 
5.9

 
$
115

 
2.6

 
$
50


As of December 29, 2012, 30.1 million shares remained available for repurchase under our share repurchase program. The share repurchase program has no fixed or scheduled termination date and the timing and extent to which we repurchase shares will depend upon, among other things, our working capital needs, market conditions, liquidity targets, our debt obligations and regulatory requirements. In addition to the share repurchase program, we purchase shares on the open market to fund certain obligations under our equity compensation plans.
RECENTLY ADOPTED 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 adopted this guidance in the first quarter of fiscal year 2013. The adoption required a separate statement of comprehensive income and additional disclosures on our consolidated condensed financial statements.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
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
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):
 
December 29, 2012
 
September 29, 2012
Processed products:
 
 
 
Weighted-average method – chicken and prepared foods
$
824

 
$
754

First-in, first-out method – beef and pork
595

 
611

Livestock – first-in, first-out method
1,038

 
952

Supplies and other – weighted-average method
475

 
492

Total inventories
$
2,932

 
$
2,809

Property, Plant And Equipment
Property, Plant And Equipment
PROPERTY, PLANT AND EQUIPMENT
The major categories of property, plant and equipment and accumulated depreciation are as follows (in millions): 
 
December 29, 2012
 
September 29, 2012
Land
$
101

 
$
101

Buildings and leasehold improvements
2,901

 
2,868

Machinery and equipment
5,276

 
5,208

Land improvements and other
411

 
408

Buildings and equipment under construction
304

 
298

 
8,993

 
8,883

Less accumulated depreciation
4,950

 
4,861

Net property, plant and equipment
$
4,043

 
$
4,022

Other Current Liabilities
Other Current Liabilities
OTHER CURRENT LIABILITIES
Other current liabilities are as follows (in millions):
 
December 29, 2012
 
September 29, 2012
Accrued salaries, wages and benefits
$
272

 
$
382

Self-insurance reserves
274

 
274

Other
346

 
287

Total other current liabilities
$
892

 
$
943

Debt
Debt
DEBT
The major components of debt are as follows (in millions):
 
December 29, 2012
 
September 29, 2012
Revolving credit facility
$
—

 
$
—

Senior notes:
 
 
 
3.25% Convertible senior notes due October 2013 (2013 Notes)
458

 
458

6.60% Senior notes due April 2016 (2016 Notes)
638

 
638

7.00% Notes due May 2018
120

 
120

4.50% Senior notes due June 2022 (2022 Notes)
1,000

 
1,000

7.00% Notes due January 2028
18

 
18

Discount on senior notes
(23
)
 
(28
)
GO Zone tax-exempt bonds due October 2033 (0.14% at 12/29/2012)
100

 
100

Other
115

 
126

Total debt
2,426

 
2,432

Less current debt
519

 
515

Total long-term debt
$
1,907

 
$
1,917


Revolving Credit Facility
We have a $1.0 billion revolving credit facility that supports short-term funding needs and letters of credit. The facility will mature and the commitments thereunder will terminate in August 2017. After reducing the amount available by outstanding letters of credit issued under this facility, the amount available for borrowing at December 29, 2012, was $962 million. At December 29, 2012, we had outstanding letters of credit issued under this facility totaling $38 million, none of which were drawn upon. We had an additional $151 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.
This facility is unsecured. However, if at any time (the Collateral Trigger Date) we shall fail to have (a) a corporate rating from Moody's Investors Service, Inc. (Moody's) of "Ba1" or better, (b) a corporate rating from Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business (S&P), of "BB+" or better, or (c) a corporate rating from Fitch Ratings, a wholly owned subsidiary of Fimalac, S.A. (Fitch), of "BB+" or better, we, any subsidiary that has guaranteed any material indebtedness of the Company, and substantially all of our other domestic subsidiaries shall be required to secure the obligations under the credit agreement and related documents with a first-priority perfected security interest in our and such subsidiary's cash, deposit and securities accounts, accounts receivable and related assets, inventory and proceeds of any of the foregoing (the Collateral Requirement).
If on any date prior to any Collateral Trigger Date we shall have (a) a corporate rating from Moody's of "Baa2" or better, (b) a corporate rating from S&P of "BBB" or better and (c) a corporate rating from Fitch of "BBB" or better, in each case with stable or better outlook, then the Collateral Requirement will no longer be effective.
This facility is fully guaranteed by Tyson Fresh Meats, Inc (TFM Parent), our wholly owned subsidiary, until such date TFM Parent is released from all of its guarantees of other material indebtedness. If in the future any of our other subsidiaries shall guarantee any of our material indebtedness, such subsidiary shall also be required to guarantee the indebtedness, obligations and liabilities under this facility.
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. At December 29, 2012, the conversion rate was 59.5360 shares of Class A stock per $1,000 principal amount of notes, which is equivalent to a conversion price of $16.80 per share of Class A stock. The conversion rate and conversion price of the 2013 Notes are subject to adjustments which include, among other events, making cash dividends or distributions to the holders of our Class A common stock during any quarterly fiscal period in excess of $0.04 per share. 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 $21.84); 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 December 29, 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 the current strike price of $16.80 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 the current exercise price of $22.18 per share, subject to adjustment. The warrants are exercisable on various dates from January 2014 through April 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 conversion price of the 2013 Notes from $16.80 per share to $22.18 per share, thus reducing the potential future economic dilution associated with conversion of the 2013 Notes. If our share price is below $22.18 upon exercise of the warrants, there is no economic net share impact. A 10% increase in our share price above the $22.18 warrant exercise 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 June 7, 2012, Moody's upgraded the credit rating of these notes from "Ba1" to "Baa3." This upgrade decreased the interest rate on the 2016 Notes from 6.85% to 6.60%, effective beginning with the six-month interest payment due October 1, 2012.
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. If any amounts are disbursed related to this guarantee, we would seek recovery of 50% (up to $50 million) from Syntroleum Corporation in accordance with our 2008 warrant agreement with Syntroleum Corporation.
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; dispose of or transfer assets; change the nature of our business; 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 debt-to-capitalization ratios.
Our 2022 Notes also contain affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens; engage in certain sale/leaseback transactions; and engage in certain consolidations, mergers and sales of assets.
We were in compliance with all debt covenants at December 29, 2012.
Income Taxes
Income Taxes
INCOME TAXES
The effective tax rate was 36.3% and 35.8% for the first quarter of fiscal years 2013 and 2012, respectively. The effective tax rate for the first quarter of fiscal 2013 was impacted by such items as the domestic production deduction, state income taxes and losses in foreign jurisdictions and related valuation allowances.
Unrecognized tax benefits were $139 million and $168 million at December 29, 2012, and September 29, 2012, respectively. This change is primarily a result of audit settlements related to temporary differences. Substantially all of the unrecognized tax benefits, if recognized, would impact our effective tax rate.
We classify interest and penalties on unrecognized tax benefits as income tax expense. At December 29, 2012, and September 29, 2012, before tax benefits, we had $62 million and $64 million, respectively, 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 2011, and for foreign, state and local income taxes for fiscal years 2001 through 2011. During the next twelve months, it is reasonably possible the amount of unrecognized tax benefits could change, but such changes are anticipated to be immaterial in amount.
Other Income And Charges
Other Income And Charges
OTHER INCOME AND CHARGES
During the first quarter of fiscal 2013, we recorded $3 million of equity earnings in joint ventures and $3 million in net foreign currency exchange losses, which were recorded in the Consolidated Condensed Statements of Income in Other, net.
During the first quarter of fiscal 2012, we recorded $6 million of equity earnings in joint ventures and $5 million in net foreign currency exchange gains, which were recorded in the Consolidated Condensed Statements of Income in Other, net.
Earnings Per Share
Earnings Per Share
EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data): 
 
 
Three Months Ended
 
 
December 29, 2012
 
December 31, 2011
Numerator:
 
 
 
 
Net income
 
$
168

 
$
156

Less: Net loss attributable to noncontrolling interest
 
(5
)
 
—

Net income attributable to Tyson
 
173

 
156

Less Dividends Declared:
 
 
 
 
Class A
 
46

 
12

Class B
 
10

 
3

Undistributed earnings
 
$
117

 
$
141

 
 
 
 
 
Class A undistributed earnings
 
$
96

 
$
117

Class B undistributed earnings
 
21

 
24

Total undistributed earnings
 
$
117

 
$
141

Denominator:
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
Class A weighted average shares
 
285

 
297

Class B weighted average shares, and shares under the if-converted method for diluted earnings per share
 
70

 
70

Effect of dilutive securities:
 
 
 
 
Stock options and restricted stock
 
5

 
5

Convertible 2013 Notes
 
2

 
4

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
 
362

 
376

Net Income Per Share Attributable to Tyson:
 
 
 
 
Class A Basic
 
$
0.50

 
$
0.43

Class B Basic
 
$
0.45

 
$
0.39

Diluted
 
$
0.48

 
$
0.42


Approximately 8 million and 4 million of our stock-based compensation shares were antidilutive for the three months ended December 29, 2012, and December 31, 2011, respectively. 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
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 December 29, 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 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 related to firm commitments (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 months ended December 29, 2012, and December 31, 2011.
We had the following aggregated notional values of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons): 
 
Metric
 
December 29, 2012
 
September 29, 2012
Commodity:
 
 
 
 
 
Corn
Bushels
 
10

 
12

Soy meal
Tons
 
228,800

 
164,700

Foreign Currency
United States dollar
 
$
59

 
$
80


As of December 29, 2012, the net amounts expected to be reclassified into earnings within the next 12 months are not significant. During the three months ended December 29, 2012, and December 31, 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
 
December 29,
2012
 
December 31,
2011
 
 
 
December 29,
2012
 
December 31,
2011
Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(13
)
 
$
2

 
Cost of Sales
 
$
4

 
$
(6
)
Foreign exchange contracts
—

 
(5
)
 
Other Income/Expense
 
(2
)
 
5

Total
$
(13
)
 
$
(3
)
 
 
 
$
2

 
$
(1
)

Fair value hedges
We designate certain futures contracts as fair value hedges of firm commitments to purchase livestock for slaughter. Our objective of these hedges is to minimize the risk of changes in fair value created by fluctuations in commodity prices associated with fixed price livestock firm commitments. We had the following aggregated notional values of outstanding forward contracts entered into to hedge forecasted commodity purchases which are accounted for as a fair value hedge (in millions): 
 
Metric
 
December 29, 2012
 
September 29, 2012
Commodity:
 
 
 
 
 
Live Cattle
Pounds
 
228

 
232

Lean Hogs
Pounds
 
284

 
239


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
 
 
December 29,
2012
 
December 31,
2011
Gain/(Loss) on forwards
Cost of Sales
 
$
4

 
$
(8
)
Gain/(Loss) on purchase contract
Cost of Sales
 
(4
)
 
8


Ineffectiveness related to our fair value hedges was not significant for the three months ended December 29, 2012, and December 31, 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 months ended December 29, 2012, and December 31, 2011. At both December 29, 2012, and September 29, 2012, we had $27 million aggregate outstanding notional values 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
 
December 29,
2012
 
December 31,
2011
 
 
 
December 29,
2012
 
December 31,
2011
Net Investment Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
(1
)
 
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, 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, livestock and energy commodity positions is to reduce the variability of cash flows associated with the forecasted purchase of certain grains, energy and livestock inputs to our production processes. We also enter into certain forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs at fixed prices. The fixed price sales contracts lock in the proceeds from a future sale and the fixed cattle and hog purchases lock in the cost. However, the cost of the livestock and the related boxed beef and boxed pork market prices at the time of the sale or purchase could vary from this fixed price. As we enter into fixed forward sales of boxed beef and boxed pork and forward purchases of cattle and hogs, we also enter into the appropriate number of livestock options and futures positions to mitigate a portion of this risk. Changes in market value of the open livestock options and futures positions are marked to market and reported in earnings at each reporting date, even though the economic impact of our fixed prices being above or below the market price is only realized at the time of sale or purchase. These positions generally do not qualify for hedge treatment due to location basis differences between the commodity exchanges and the actual locations when we purchase the commodities.
We have a foreign currency cash flow hedging program to hedge portions of forecasted transactions denominated in foreign currencies, primarily with forward and option contracts, to protect against the reduction in value of forecasted foreign currency cash flows. Our undesignated foreign currency positions generally would qualify for cash flow hedge accounting. However, to reduce earnings volatility, we normally will not elect hedge accounting treatment when the position provides an offset to the underlying related transaction that impacts current earnings.
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 notional values related to our undesignated positions (in millions, except soy meal tons): 
 
Metric
 
December 29, 2012
 
September 29, 2012
Commodity:
 
 
 
 
 
Corn
Bushels
 
36

 
19

Soy Meal
Tons
 
65,200

 
1,200

Soy Oil
Pounds
 
—

 
17

Live Cattle
Pounds
 
223

 
68

Lean Hogs
Pounds
 
11

 
108

Foreign Currency
United States dollars
 
$
151

 
$
165

Interest Rate
Average monthly notional debt
 
$
25

 
$
27


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
 
 
 
 
Three Months Ended
 
 
 
December 29, 2012
 
December 31, 2011
Derivatives not designated as hedging instruments:
 
 
 
 
 
Commodity contracts
Sales
 
$
11

 
$
(3
)
Commodity contracts
Cost of Sales
 
(7
)
 
29

Foreign exchange contracts
Other Income/Expense
 
1

 
3

Total
 
 
$
5

 
$
29


The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Condensed Balance Sheets (in millions):
 
Fair Value
 
December 29, 2012
 
September 29, 2012
Derivative Assets:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
5

 
$
32

Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
29

 
21

Foreign exchange contracts
1

 
1

Total derivative assets – not designated
30

 
22

 
 
 
 
Total derivative assets
$
35

 
$
54

Derivative Liabilities:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
12

 
$
6

Foreign exchange contracts
—

 
1

Total derivative liabilities – designated
12

 
7

Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
75

 
96

Foreign exchange contracts
2

 
2

Interest rate contracts
1

 
—

Total derivative liabilities – not designated
78

 
98

 
 
 
 
Total derivative liabilities
$
90

 
$
105


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 MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels as follows:
Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date.
Level 2 — Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:
•
Quoted prices for similar assets or liabilities in active markets;
•
Quoted prices for identical or similar assets in non-active markets;
•
Inputs other than quoted prices that are observable for the asset or liability; and
•
Inputs derived principally from or corroborated by other observable market data.
Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
December 29, 2012
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
34

 
$
—

 
$
(21
)
 
$
13

Foreign Exchange Forward Contracts
—

 
1

 
—

 
—

 
1

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Debt securities
—

 
26

 
85

 
—

 
111

Equity securities
3

 
—

 
—

 
—

 
3

Deferred Compensation Assets
22

 
158

 
—

 
—

 
180

Total Assets
$
25

 
$
219

 
$
85

 
$
(21
)
 
$
308

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
87

 
$
—

 
$
(87
)
 
$
—

Foreign Exchange Forward Contracts
—

 
2

 
—

 
(1
)
 
1

Interest Rate Swap
—

 
1

 
—

 
—

 
1

Total Liabilities
$
—

 
$
90

 
$
—

 
$
(88
)
 
$
2

September 29, 2012
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
53

 
$
—

 
$
(40
)
 
$
13

Foreign Exchange Forward Contracts
—

 
1

 
—

 
(1
)
 
—

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Debt securities
—

 
27

 
86

 
—

 
113

Equity securities
6

 
1

 
—

 
—

 
7

Deferred Compensation Assets
31

 
149

 
—

 
—

 
180

Total Assets
$
37

 
$
231

 
$
86

 
$
(41
)
 
$
313

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
102

 
$
—

 
$
(100
)
 
$
2

Foreign Exchange Forward Contracts
—

 
3

 
—

 
—

 
3

Interest Rate Swap
—

 
—

 
—

 
—

 
—

Total Liabilities
$
—

 
$
105

 
$
—

 
$
(100
)
 
$
5


(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 December 29, 2012, and September 29, 2012, we had posted with various counterparties $67 million and $59 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): 
 
Three Months Ended
 
December 29, 2012
 
December 31, 2011
Balance at beginning of year
$
86

 
$
83

Total realized and unrealized gains (losses):
 
 
 
Included in earnings
—

 
1

Included in other comprehensive income (loss)
—

 
(2
)
Purchases
3

 
6

Issuances
—

 
—

Settlements
(4
)
 
(4
)
Balance at end of period
$
85

 
$
84

Total gains (losses) for the three-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period
$
—

 
$
—


The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Derivative Assets and Liabilities: Our derivatives, including commodities, foreign exchange forward 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, asset-backed and other debt securities as Level 3 as there is limited activity or less observable inputs into valuation models, including current interest rates and estimated prepayment, default and recovery rates on the underlying portfolio or structured investment vehicle. 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 June 2015, 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)
December 29, 2012
 
September 29, 2012
 
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
$
25

 
$
26

 
$
1

 
$
26

 
$
27

 
$
1

Corporate and Asset-Backed (a)
63

 
65

 
2

 
64

 
66

 
2

Redeemable Preferred Stock
20

 
20

 
—

 
20

 
20

 
—

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock and Warrants
9

 
3

 
(6
)
 
9

 
7

 
(2
)
 
(a)
At both December 29, 2012, and September 29, 2012, the amortized cost basis for Corporate and Asset-Backed debt securities had been reduced by accumulated other than temporary impairments of $2 million.
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 months ending December 29, 2012, and December 31, 2011. No other than temporary losses were deferred in OCI as of December 29, 2012, and September 29, 2012.
Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated Condensed Balance Sheets. We classify the investments which have observable market prices in active markets in Level 1 as these are generally publicly-traded mutual funds. The remaining deferred compensation assets are classified in Level 2, as fair value can be corroborated based on observable market data. Realized and unrealized gains (losses) on deferred compensation are included in earnings.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are recorded at fair value on a recurring basis, we record assets and liabilities at fair value on a nonrecurring basis. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. We did not have any significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition during the three months ended December 29, 2012, and December 31, 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):
 
December 29, 2012
 
September 29, 2012
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total Debt
$
2,606

 
$
2,426

 
$
2,596

 
$
2,432

Other Comprehensive Income
Other Comprehensive Income
OTHER COMPREHENSIVE INCOME
The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions):
 
 
Three Months Ended
 
 
December 29, 2012
 
December 31, 2011
 
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
(Gain) loss reclassified to Cost of Sales
 
$
(4
)
$
2

$
(2
)
 
$
6

$
(2
)
$
4

(Gain) loss reclassified to Other Income/Expense
 
2

(1
)
1

 
(5
)
2

(3
)
Unrealized gain (loss)
 
(13
)
5

(8
)
 
(3
)
1

(2
)
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
(4
)
2

(2
)
 
2

(1
)
1

 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
Translation adjustment
 
(1
)
—

(1
)
 
3

—

3

 
 
 
 
 
 
 
 
 
Postretirement benefits
 
1

—

1

 
1

—

1

Total Other Comprehensive Income (Loss)
 
$
(19
)
$
8

$
(11
)
 
$
4

$
—

$
4

Segment Reporting
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
 
 
 
December 29, 2012
 
December 31, 2011
 
Sales:
 
 
 
 
 
Chicken
 
$
2,956

 
$
2,762

 
Beef
 
3,485

 
3,467

 
Pork
 
1,363

 
1,475

 
Prepared Foods
 
841

 
861

 
Other
 
20

 
54

 
Intersegment Sales
 
(263
)
 
(290
)
 
Total Sales
 
$
8,402

 
$
8,329

 
Operating Income (Loss):
 
 
 
 
 
Chicken
 
$
107

 
$
32

 
Beef
 
46

 
31

 
Pork
 
125

 
165

 
Prepared Foods
 
33

 
51

 
Other
 
(11
)
 
(1
)
 
Total Operating Income
 
300

 
278

 
 
 
 
 
 
 
Total Other (Income) Expense
 
36

 
35

 
 
 
 
 
 
 
Income before Income Taxes
 
$
264

 
$
243

 

The Beef segment had sales of $43 million and $64 million in the first quarter of fiscal years 2013 and 2012, respectively, from transactions with other operating segments of the Company and Dynamic Fuels. The Pork segment had sales of $220 million and $226 million in the first quarter of fiscal years 2013 and 2012, 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 AND CONTINGENCIES
Commitments
We guarantee obligations of certain outside third parties, which consist primarily of a lease and grower loans, 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 December 29, 2012, was $71 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 $56 million, of which $50 million could be recoverable through various recourse provisions and an additional undeterminable recoverable amount based on the fair value of the underlying leased assets. The likelihood of material payments under these guarantees is not considered probable. At December 29, 2012, and September 29, 2012, 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 December 29, 2012, was approximately $290 million. The total receivables under these programs were $39 million and $25 million at December 29, 2012, and September 29, 2012, respectively, and are included, net of allowance for uncollectible amounts, in Accounts Receivable at December 29, 2012, and September 29, 2012, 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 $13 million and $10 million at December 29, 2012, and September 29, 2012, 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 eleven separate wage and hour actions involving Tyson Fresh Meats Inc.’s plants located in 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. Plaintiffs’ counsel filed an application for attorneys’ fees and expenses which we contested. On December 7, 2012, the court granted plaintiffs' application and awarded a total of $3,609,723. We filed an appeal with the Tenth Circuit Court of Appeals on December 27, 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 for violations of federal and state laws for pre- and post-shift work activities. The trial court also awarded the plaintiffs liquidated damages, resulting in total damages awarded in the amount of $5,784,758. We have appealed the jury's verdict and trial court's award. The plaintiffs' counsel has also filed an application for attorneys' fees and expenses in the amount of $2,692,145.
•
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 plaintiffs filed a post-trial motion, which remains pending in the trial court.
•
The Maxwell case has been resolved by the parties, and the parties filed a joint motion for approval of the terms of settlement with the trial court on October 31, 2012, which the trial court has preliminarily approved.
•
A bench trial in the Acosta case began January 22, 2013.
•
The Gomez case is scheduled for trial on March 18, 2013. The trial court in the Edwards case, which involves the Perry and Waterloo, Iowa facilities, split the case into two trials. The trial involving the Perry facility is scheduled to begin October 7, 2013, and the trial involving the Waterloo facility is scheduled to begin December 9, 2013.
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, the 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 court granted summary judgment in favor of Tyson on August 31, 2012, and the plaintiffs filed a notice of appeal on October 5, 2012.
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 25 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
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
TFM Parent, our wholly-owned subsidiary, has fully and unconditionally guaranteed the 2016 Notes. Additionally, TFM Parent has fully and unconditionally guaranteed the 2022 Notes until such date TFM Parent has been released of its guarantee of both (i) Tyson's $1.0 billion revolving credit facility and (ii) the 2016 Notes, at which time TFM Parent's guarantee of the 2022 Notes is permanently released. The following financial information presents condensed consolidating financial statements, which include Tyson Foods, Inc. (TFI Parent); TFM Parent; the Non-Guarantors Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor. This presentation has been revised from the financial presentation disclosed in periods prior to September 29, 2012, to reflect changes in the subsidiary guarantees associated with the permanent release of certain subsidiary guarantors upon the retirement of the 10.50% Senior Notes due 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 29, 2012
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
75

 
$
4,750

 
$
3,904

 
$
(327
)
 
$
8,402

Cost of Sales
16

 
4,538

 
3,638

 
(327
)
 
7,865

Gross Profit
59

 
212

 
266

 
—

 
537

Selling, General and Administrative
20

 
52

 
165

 
—

 
237

Operating Income
39

 
160

 
101

 
—

 
300

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
8

 
16

 
12

 
—

 
36

Other, net
—

 
—

 
—

 
—

 
—

Equity in net earnings of subsidiaries
(149
)
 
(24
)
 
—

 
173

 
—

Total Other (Income) Expense
(141
)
 
(8
)
 
12

 
173

 
36

Income (Loss) before Income Taxes
180

 
168

 
89

 
(173
)
 
264

Income Tax Expense
7

 
51

 
38

 
—

 
96

Net Income (Loss)
173

 
117

 
51

 
(173
)
 
168

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
(5
)
 
—

 
(5
)
Net Income (Loss) Attributable to Tyson
173

 
117

 
56

 
(173
)
 
173

 
 
 
 
 
 
 
 
 
 
Comprehensive Income
157

 
121

 
50

 
(171
)
 
157

Less: Comprehensive Loss Attributable to Noncontrolling Interest
—

 
—

 
(5
)
 
—

 
(5
)
Comprehensive Income Attributable to Tyson
$
157

 
$
121

 
$
55

 
$
(171
)
 
$
162



Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 31, 2011
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
52

 
$
4,841

 
$
3,761

 
$
(325
)
 
$
8,329

Cost of Sales
8

 
4,642

 
3,511

 
(325
)
 
7,836

Gross Profit
44

 
199

 
250

 
—

 
493

Selling, General and Administrative
12

 
50

 
153

 
—

 
215

Operating Income
32

 
149

 
97

 
—

 
278

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
(13
)
 
32

 
28

 
—

 
47

Other, net
1

 
—

 
(13
)
 
—

 
(12
)
Equity in net earnings of subsidiaries
(127
)
 
(26
)
 
—

 
153

 
—

Total Other (Income) Expense
(139
)
 
6

 
15

 
153

 
35

Income (Loss) before Income Taxes
171

 
143

 
82

 
(153
)
 
243

Income Tax (Benefit) Expense
15

 
40

 
32

 
—

 
87

Net Income (Loss)
156

 
103

 
50

 
(153
)
 
156

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
—

 
—

 
—

Net Income (Loss) Attributable to Tyson
156

 
103

 
50

 
(153
)
 
156

 
 
 
 
 
 
 
 
 
 
Comprehensive Income
160

 
100

 
51

 
(151
)
 
160

Less: Comprehensive Loss Attributable to Noncontrolling Interest
—

 
—

 
—

 
—

 
—

Comprehensive Income Attributable to Tyson
$
160

 
$
100

 
$
51

 
$
(151
)
 
$
160


Condensed Consolidating Balance Sheet as of December 29, 2012
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
20

 
$
931

 
$
—

 
$
951

Accounts receivable, net
1

 
514

 
850

 
—

 
1,365

Inventories
1

 
1,005

 
1,926

 
—

 
2,932

Other current assets
115

 
63

 
128

 
(167
)
 
139

Total Current Assets
117

 
1,602

 
3,835

 
(167
)
 
5,387

Net Property, Plant and Equipment
32

 
871

 
3,140

 
—

 
4,043

Goodwill
—

 
881

 
1,010

 
—

 
1,891

Intangible Assets
—

 
25

 
101

 
—

 
126

Other Assets
1,233

 
147

 
231

 
(1,184
)
 
427

Investment in Subsidiaries
11,525

 
2,075

 
—

 
(13,600
)
 
—

Total Assets
$
12,907

 
$
5,601

 
$
8,317

 
$
(14,951
)
 
$
11,874

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
446

 
$
—

 
$
145

 
$
(72
)
 
$
519

Accounts payable
28

 
697

 
710

 
—

 
1,435

Other current liabilities
4,460

 
166

 
755

 
(4,489
)
 
892

Total Current Liabilities
4,934

 
863

 
1,610

 
(4,561
)
 
2,846

Long-Term Debt
1,769

 
809

 
458

 
(1,129
)
 
1,907

Deferred Income Taxes
—

 
130

 
420

 
(14
)
 
536

Other Liabilities
170

 
133

 
265

 
(41
)
 
527

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,034

 
3,666

 
5,540

 
(9,206
)
 
6,034

Noncontrolling Interest
—

 
—

 
24

 
—

 
24

Total Shareholders’ Equity
6,034

 
3,666

 
5,564

 
(9,206
)
 
6,058

Total Liabilities and Shareholders’ Equity
$
12,907

 
$
5,601

 
$
8,317

 
$
(14,951
)
 
$
11,874

Condensed Consolidating Balance Sheet as of September 29, 2012
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1

 
$
9

 
$
1,061

 
$
—

 
$
1,071

Accounts receivable, net
1

 
499

 
878

 
—

 
1,378

Inventories
—

 
950

 
1,859

 
—

 
2,809

Other current assets
139

 
100

 
90

 
(184
)
 
145

Total Current Assets
141

 
1,558

 
3,888

 
(184
)
 
5,403

Net Property, Plant and Equipment
31

 
873

 
3,118

 
—

 
4,022

Goodwill
—

 
881

 
1,010

 
—

 
1,891

Intangible Assets
—

 
26

 
103

 
—

 
129

Other Assets
1,257

 
151

 
251

 
(1,208
)
 
451

Investment in Subsidiaries
11,849

 
2,005

 
—

 
(13,854
)
 
—

Total Assets
$
13,278

 
$
5,494

 
$
8,370

 
$
(15,246
)
 
$
11,896

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
439

 
$
—

 
$
167

 
$
(91
)
 
$
515

Accounts payable
10

 
558

 
804

 
—

 
1,372

Other current liabilities
4,887

 
144

 
766

 
(4,854
)
 
943

Total Current Liabilities
5,336

 
702

 
1,737

 
(4,945
)
 
2,830

Long-Term Debt
1,774

 
809

 
486

 
(1,152
)
 
1,917

Deferred Income Taxes
—

 
135

 
432

 
(9
)
 
558

Other Liabilities
156

 
146

 
294

 
(47
)
 
549

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,012

 
3,702

 
5,391

 
(9,093
)
 
6,012

Noncontrolling Interest
—

 
—

 
30

 
—

 
30

Total Shareholders’ Equity
6,012

 
3,702

 
5,421

 
(9,093
)
 
6,042

Total Liabilities and Shareholders’ Equity
$
13,278

 
$
5,494

 
$
8,370

 
$
(15,246
)
 
$
11,896


Condensed Consolidating Statement of Cash Flows for the three months ended December 29, 2012
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
21

 
$
234

 
$
(65
)
 
$
—

 
$
190

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(2
)
 
(24
)
 
(131
)
 
—

 
(157
)
Proceeds from marketable securities, net
—

 
—

 
1

 
—

 
1

Other, net
—

 
—

 
4

 
—

 
4

Cash Provided by (Used for) Investing Activities
(2
)
 
(24
)
 
(126
)
 
—

 
(152
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
—

 
—

 
(11
)
 
—

 
(11
)
Purchases of Tyson Class A common stock
(115
)
 
—

 
—

 
—

 
(115
)
Dividends
(53
)
 
—

 
—

 
—

 
(53
)
Other, net
22

 
—

 
(1
)
 
—

 
21

Net change in intercompany balances
126

 
(199
)
 
73

 
—

 
—

Cash Provided by (Used for) Financing Activities
(20
)
 
(199
)
 
61

 
—

 
(158
)
Effect of Exchange Rate Change on Cash
—

 
—

 
—

 
—

 
—

Increase (Decrease) in Cash and Cash Equivalents
(1
)
 
11

 
(130
)
 
—

 
(120
)
Cash and Cash Equivalents at Beginning of Year
1

 
9

 
1,061

 
—

 
1,071

Cash and Cash Equivalents at End of Period
$
—

 
$
20

 
$
931

 
$
—

 
$
951



 
Condensed Consolidating Statement of Cash Flows for the three months ended December 31, 2011
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
59

 
$
332

 
$
(53
)
 
$
—

 
$
338

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
—

 
(25
)
 
(157
)
 
—

 
(182
)
Proceeds from marketable securities, net
—

 
2

 
1

 
—

 
3

Other, net
2

 
2

 
(1
)
 
—

 
3

Cash Provided by (Used for) Investing Activities
2

 
(21
)
 
(157
)
 
—

 
(176
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(1
)
 
—

 
21

 
—

 
20

Purchases of Tyson Class A common stock
(50
)
 
—

 
—

 
—

 
(50
)
Dividends
(15
)
 
—

 
—

 
—

 
(15
)
Other, net
22

 
—

 
—

 
—

 
22

Net change in intercompany balances
(18
)
 
(310
)
 
328

 
—

 
—

Cash Provided by (Used for) Financing Activities
(62
)
 
(310
)
 
349

 
—

 
(23
)
Effect of Exchange Rate Change on Cash
—

 
—

 
2

 
—

 
2

Increase (Decrease) in Cash and Cash Equivalents
(1
)
 
1

 
141

 
—

 
141

Cash and Cash Equivalents at Beginning of Year
1

 
1

 
714

 
—

 
716

Cash and Cash Equivalents at End of Period
$
—

 
$
2

 
$
855

 
$
—

 
$
857

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 September 29, 2012. 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 December 29, 2012, and the results of operations for the three months ended December 29, 2012, and December 31, 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 variable interest entities for which we are the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation.
Accounting Policies Common Stock Repurchases (Tables)
Schedule of Common Stock Repurchases
A summary of cumulative share repurchases of our Class A common stock is as follows (in millions):
 
 
Three Months Ended
 
 
December 29, 2012
 
December 31, 2011
 
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
Under share repurchase program
 
5.1

 
$
100

 
1.8

 
$
35

To fund certain obligations under equity compensation plans
 
0.8

 
15

 
0.8

 
15

Total share repurchases
 
5.9

 
$
115

 
2.6

 
$
50

Inventories (Tables)
Schedule of Inventory
Total inventory consists of the following (in millions):
 
December 29, 2012
 
September 29, 2012
Processed products:
 
 
 
Weighted-average method – chicken and prepared foods
$
824

 
$
754

First-in, first-out method – beef and pork
595

 
611

Livestock – first-in, first-out method
1,038

 
952

Supplies and other – weighted-average method
475

 
492

Total inventories
$
2,932

 
$
2,809

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): 
 
December 29, 2012
 
September 29, 2012
Land
$
101

 
$
101

Buildings and leasehold improvements
2,901

 
2,868

Machinery and equipment
5,276

 
5,208

Land improvements and other
411

 
408

Buildings and equipment under construction
304

 
298

 
8,993

 
8,883

Less accumulated depreciation
4,950

 
4,861

Net property, plant and equipment
$
4,043

 
$
4,022

Other Current Liabilities (Tables)
Schedule Of Other Current Liabilities
Other current liabilities are as follows (in millions):
 
December 29, 2012
 
September 29, 2012
Accrued salaries, wages and benefits
$
272

 
$
382

Self-insurance reserves
274

 
274

Other
346

 
287

Total other current liabilities
$
892

 
$
943

Debt (Tables)
Major Components Of Debt
The major components of debt are as follows (in millions):
 
December 29, 2012
 
September 29, 2012
Revolving credit facility
$
—

 
$
—

Senior notes:
 
 
 
3.25% Convertible senior notes due October 2013 (2013 Notes)
458

 
458

6.60% Senior notes due April 2016 (2016 Notes)
638

 
638

7.00% Notes due May 2018
120

 
120

4.50% Senior notes due June 2022 (2022 Notes)
1,000

 
1,000

7.00% Notes due January 2028
18

 
18

Discount on senior notes
(23
)
 
(28
)
GO Zone tax-exempt bonds due October 2033 (0.14% at 12/29/2012)
100

 
100

Other
115

 
126

Total debt
2,426

 
2,432

Less current debt
519

 
515

Total long-term debt
$
1,907

 
$
1,917

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
 
 
December 29, 2012
 
December 31, 2011
Numerator:
 
 
 
 
Net income
 
$
168

 
$
156

Less: Net loss attributable to noncontrolling interest
 
(5
)
 
—

Net income attributable to Tyson
 
173

 
156

Less Dividends Declared:
 
 
 
 
Class A
 
46

 
12

Class B
 
10

 
3

Undistributed earnings
 
$
117

 
$
141

 
 
 
 
 
Class A undistributed earnings
 
$
96

 
$
117

Class B undistributed earnings
 
21

 
24

Total undistributed earnings
 
$
117

 
$
141

Denominator:
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
Class A weighted average shares
 
285

 
297

Class B weighted average shares, and shares under the if-converted method for diluted earnings per share
 
70

 
70

Effect of dilutive securities:
 
 
 
 
Stock options and restricted stock
 
5

 
5

Convertible 2013 Notes
 
2

 
4

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
 
362

 
376

Net Income Per Share Attributable to Tyson:
 
 
 
 
Class A Basic
 
$
0.50

 
$
0.43

Class B Basic
 
$
0.45

 
$
0.39

Diluted
 
$
0.48

 
$
0.42

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
 
December 29, 2012
 
September 29, 2012
Derivative Assets:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
5

 
$
32

Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
29

 
21

Foreign exchange contracts
1

 
1

Total derivative assets – not designated
30

 
22

 
 
 
 
Total derivative assets
$
35

 
$
54

Derivative Liabilities:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
12

 
$
6

Foreign exchange contracts
—

 
1

Total derivative liabilities – designated
12

 
7

Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
75

 
96

Foreign exchange contracts
2

 
2

Interest rate contracts
1

 
—

Total derivative liabilities – not designated
78

 
98

 
 
 
 
Total derivative liabilities
$
90

 
$
105

Schedule Of Notional Amount Of Derivatives 
We had the following aggregated notional values of outstanding forward and option contracts accounted for as cash flow hedges (in millions, except soy meal tons): 
 
Metric
 
December 29, 2012
 
September 29, 2012
Commodity:
 
 
 
 
 
Corn
Bushels
 
10

 
12

Soy meal
Tons
 
228,800

 
164,700

Foreign Currency
United States dollar
 
$
59

 
$
80

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
 
December 29,
2012
 
December 31,
2011
 
 
 
December 29,
2012
 
December 31,
2011
Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
$
(13
)
 
$
2

 
Cost of Sales
 
$
4

 
$
(6
)
Foreign exchange contracts
—

 
(5
)
 
Other Income/Expense
 
(2
)
 
5

Total
$
(13
)
 
$
(3
)
 
 
 
$
2

 
$
(1
)
Schedule Of Notional Amount Of Derivatives 
We had the following aggregated notional values of outstanding forward contracts entered into to hedge forecasted commodity purchases which are accounted for as a fair value hedge (in millions): 
 
Metric
 
December 29, 2012
 
September 29, 2012
Commodity:
 
 
 
 
 
Live Cattle
Pounds
 
228

 
232

Lean Hogs
Pounds
 
284

 
239

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

 
Consolidated Condensed
Statements of Income
Classification
 
Three Months Ended
 
 
December 29,
2012
 
December 31,
2011
Gain/(Loss) on forwards
Cost of Sales
 
$
4

 
$
(8
)
Gain/(Loss) on purchase contract
Cost of Sales
 
(4
)
 
8

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
 
December 29,
2012
 
December 31,
2011
 
 
 
December 29,
2012
 
December 31,
2011
Net Investment Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
—

 
$
(1
)
 
Other Income/Expense
 
$
—

 
$
—

Schedule Of Notional Amount Of Derivatives 
We had the following aggregate outstanding notional values related to our undesignated positions (in millions, except soy meal tons): 
 
Metric
 
December 29, 2012
 
September 29, 2012
Commodity:
 
 
 
 
 
Corn
Bushels
 
36

 
19

Soy Meal
Tons
 
65,200

 
1,200

Soy Oil
Pounds
 
—

 
17

Live Cattle
Pounds
 
223

 
68

Lean Hogs
Pounds
 
11

 
108

Foreign Currency
United States dollars
 
$
151

 
$
165

Interest Rate
Average monthly notional debt
 
$
25

 
$
27

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
 
 
 
 
Three Months Ended
 
 
 
December 29, 2012
 
December 31, 2011
Derivatives not designated as hedging instruments:
 
 
 
 
 
Commodity contracts
Sales
 
$
11

 
$
(3
)
Commodity contracts
Cost of Sales
 
(7
)
 
29

Foreign exchange contracts
Other Income/Expense
 
1

 
3

Total
 
 
$
5

 
$
29

Fair Value Measurements (Tables)
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis 
The following tables set forth by level within the fair value hierarchy our financial assets and liabilities accounted for at fair value on a recurring basis according to the valuation techniques we used to determine their fair values (in millions): 
December 29, 2012
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
34

 
$
—

 
$
(21
)
 
$
13

Foreign Exchange Forward Contracts
—

 
1

 
—

 
—

 
1

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Debt securities
—

 
26

 
85

 
—

 
111

Equity securities
3

 
—

 
—

 
—

 
3

Deferred Compensation Assets
22

 
158

 
—

 
—

 
180

Total Assets
$
25

 
$
219

 
$
85

 
$
(21
)
 
$
308

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
87

 
$
—

 
$
(87
)
 
$
—

Foreign Exchange Forward Contracts
—

 
2

 
—

 
(1
)
 
1

Interest Rate Swap
—

 
1

 
—

 
—

 
1

Total Liabilities
$
—

 
$
90

 
$
—

 
$
(88
)
 
$
2

September 29, 2012
Level 1
 
Level 2
 
Level 3
 
Netting (a)
 
Total
Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
53

 
$
—

 
$
(40
)
 
$
13

Foreign Exchange Forward Contracts
—

 
1

 
—

 
(1
)
 
—

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Debt securities
—

 
27

 
86

 
—

 
113

Equity securities
6

 
1

 
—

 
—

 
7

Deferred Compensation Assets
31

 
149

 
—

 
—

 
180

Total Assets
$
37

 
$
231

 
$
86

 
$
(41
)
 
$
313

Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
102

 
$
—

 
$
(100
)
 
$
2

Foreign Exchange Forward Contracts
—

 
3

 
—

 
—

 
3

Interest Rate Swap
—

 
—

 
—

 
—

 
—

Total Liabilities
$
—

 
$
105

 
$
—

 
$
(100
)
 
$
5


(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 December 29, 2012, and September 29, 2012, we had posted with various counterparties $67 million and $59 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): 
 
Three Months Ended
 
December 29, 2012
 
December 31, 2011
Balance at beginning of year
$
86

 
$
83

Total realized and unrealized gains (losses):
 
 
 
Included in earnings
—

 
1

Included in other comprehensive income (loss)
—

 
(2
)
Purchases
3

 
6

Issuances
—

 
—

Settlements
(4
)
 
(4
)
Balance at end of period
$
85

 
$
84

Total gains (losses) for the three-month period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of period
$
—

 
$
—

Schedule Of Available For Sale Securities 
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)
December 29, 2012
 
September 29, 2012
 
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
$
25

 
$
26

 
$
1

 
$
26

 
$
27

 
$
1

Corporate and Asset-Backed (a)
63

 
65

 
2

 
64

 
66

 
2

Redeemable Preferred Stock
20

 
20

 
—

 
20

 
20

 
—

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock and Warrants
9

 
3

 
(6
)
 
9

 
7

 
(2
)
 
(a)
At both December 29, 2012, and September 29, 2012, the amortized cost basis for Corporate and Asset-Backed debt securities had been reduced by accumulated other than temporary impairments of $2 million.
Schedule Of Fair Value And Carrying Value Of Debt 
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):
 
December 29, 2012
 
September 29, 2012
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Total Debt
$
2,606

 
$
2,426

 
$
2,596

 
$
2,432



Other Comprehensive Income (Tables)
Components Of Other Comprehensive Income (Loss)
The before and after tax changes in the components of other comprehensive income (loss) are as follows (in millions):
 
 
Three Months Ended
 
 
December 29, 2012
 
December 31, 2011
 
 
Before Tax
Tax
After Tax
 
Before Tax
Tax
After Tax
 
 
 
 
 
 
 
 
 
Derivatives accounted for as cash flow hedges:
 
 
 
 
 
 
 
 
(Gain) loss reclassified to Cost of Sales
 
$
(4
)
$
2

$
(2
)
 
$
6

$
(2
)
$
4

(Gain) loss reclassified to Other Income/Expense
 
2

(1
)
1

 
(5
)
2

(3
)
Unrealized gain (loss)
 
(13
)
5

(8
)
 
(3
)
1

(2
)
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
Unrealized gain (loss)
 
(4
)
2

(2
)
 
2

(1
)
1

 
 
 
 
 
 
 
 
 
Currency translation:
 
 
 
 
 
 
 
 
Translation adjustment
 
(1
)
—

(1
)
 
3

—

3

 
 
 
 
 
 
 
 
 
Postretirement benefits
 
1

—

1

 
1

—

1

Total Other Comprehensive Income (Loss)
 
$
(19
)
$
8

$
(11
)
 
$
4

$
—

$
4

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
 
 
 
December 29, 2012
 
December 31, 2011
 
Sales:
 
 
 
 
 
Chicken
 
$
2,956

 
$
2,762

 
Beef
 
3,485

 
3,467

 
Pork
 
1,363

 
1,475

 
Prepared Foods
 
841

 
861

 
Other
 
20

 
54

 
Intersegment Sales
 
(263
)
 
(290
)
 
Total Sales
 
$
8,402

 
$
8,329

 
Operating Income (Loss):
 
 
 
 
 
Chicken
 
$
107

 
$
32

 
Beef
 
46

 
31

 
Pork
 
125

 
165

 
Prepared Foods
 
33

 
51

 
Other
 
(11
)
 
(1
)
 
Total Operating Income
 
300

 
278

 
 
 
 
 
 
 
Total Other (Income) Expense
 
36

 
35

 
 
 
 
 
 
 
Income before Income Taxes
 
$
264

 
$
243

 

Condensed Consolidating Financial Statements (Tables)
Condensed Consolidating Statement Of Income and Comprehensive Income 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 29, 2012
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
75

 
$
4,750

 
$
3,904

 
$
(327
)
 
$
8,402

Cost of Sales
16

 
4,538

 
3,638

 
(327
)
 
7,865

Gross Profit
59

 
212

 
266

 
—

 
537

Selling, General and Administrative
20

 
52

 
165

 
—

 
237

Operating Income
39

 
160

 
101

 
—

 
300

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
8

 
16

 
12

 
—

 
36

Other, net
—

 
—

 
—

 
—

 
—

Equity in net earnings of subsidiaries
(149
)
 
(24
)
 
—

 
173

 
—

Total Other (Income) Expense
(141
)
 
(8
)
 
12

 
173

 
36

Income (Loss) before Income Taxes
180

 
168

 
89

 
(173
)
 
264

Income Tax Expense
7

 
51

 
38

 
—

 
96

Net Income (Loss)
173

 
117

 
51

 
(173
)
 
168

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
(5
)
 
—

 
(5
)
Net Income (Loss) Attributable to Tyson
173

 
117

 
56

 
(173
)
 
173

 
 
 
 
 
 
 
 
 
 
Comprehensive Income
157

 
121

 
50

 
(171
)
 
157

Less: Comprehensive Loss Attributable to Noncontrolling Interest
—

 
—

 
(5
)
 
—

 
(5
)
Comprehensive Income Attributable to Tyson
$
157

 
$
121

 
$
55

 
$
(171
)
 
$
162



Condensed Consolidating Statement of Income and Comprehensive Income for the three months ended December 31, 2011
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Sales
$
52

 
$
4,841

 
$
3,761

 
$
(325
)
 
$
8,329

Cost of Sales
8

 
4,642

 
3,511

 
(325
)
 
7,836

Gross Profit
44

 
199

 
250

 
—

 
493

Selling, General and Administrative
12

 
50

 
153

 
—

 
215

Operating Income
32

 
149

 
97

 
—

 
278

Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
(13
)
 
32

 
28

 
—

 
47

Other, net
1

 
—

 
(13
)
 
—

 
(12
)
Equity in net earnings of subsidiaries
(127
)
 
(26
)
 
—

 
153

 
—

Total Other (Income) Expense
(139
)
 
6

 
15

 
153

 
35

Income (Loss) before Income Taxes
171

 
143

 
82

 
(153
)
 
243

Income Tax (Benefit) Expense
15

 
40

 
32

 
—

 
87

Net Income (Loss)
156

 
103

 
50

 
(153
)
 
156

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
—

 
—

 
—

Net Income (Loss) Attributable to Tyson
156

 
103

 
50

 
(153
)
 
156

 
 
 
 
 
 
 
 
 
 
Comprehensive Income
160

 
100

 
51

 
(151
)
 
160

Less: Comprehensive Loss Attributable to Noncontrolling Interest
—

 
—

 
—

 
—

 
—

Comprehensive Income Attributable to Tyson
$
160

 
$
100

 
$
51

 
$
(151
)
 
$
160

Condensed Consolidating Balance Sheet 
Condensed Consolidating Balance Sheet as of December 29, 2012
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
20

 
$
931

 
$
—

 
$
951

Accounts receivable, net
1

 
514

 
850

 
—

 
1,365

Inventories
1

 
1,005

 
1,926

 
—

 
2,932

Other current assets
115

 
63

 
128

 
(167
)
 
139

Total Current Assets
117

 
1,602

 
3,835

 
(167
)
 
5,387

Net Property, Plant and Equipment
32

 
871

 
3,140

 
—

 
4,043

Goodwill
—

 
881

 
1,010

 
—

 
1,891

Intangible Assets
—

 
25

 
101

 
—

 
126

Other Assets
1,233

 
147

 
231

 
(1,184
)
 
427

Investment in Subsidiaries
11,525

 
2,075

 
—

 
(13,600
)
 
—

Total Assets
$
12,907

 
$
5,601

 
$
8,317

 
$
(14,951
)
 
$
11,874

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
446

 
$
—

 
$
145

 
$
(72
)
 
$
519

Accounts payable
28

 
697

 
710

 
—

 
1,435

Other current liabilities
4,460

 
166

 
755

 
(4,489
)
 
892

Total Current Liabilities
4,934

 
863

 
1,610

 
(4,561
)
 
2,846

Long-Term Debt
1,769

 
809

 
458

 
(1,129
)
 
1,907

Deferred Income Taxes
—

 
130

 
420

 
(14
)
 
536

Other Liabilities
170

 
133

 
265

 
(41
)
 
527

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,034

 
3,666

 
5,540

 
(9,206
)
 
6,034

Noncontrolling Interest
—

 
—

 
24

 
—

 
24

Total Shareholders’ Equity
6,034

 
3,666

 
5,564

 
(9,206
)
 
6,058

Total Liabilities and Shareholders’ Equity
$
12,907

 
$
5,601

 
$
8,317

 
$
(14,951
)
 
$
11,874

Condensed Consolidating Balance Sheet as of September 29, 2012
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1

 
$
9

 
$
1,061

 
$
—

 
$
1,071

Accounts receivable, net
1

 
499

 
878

 
—

 
1,378

Inventories
—

 
950

 
1,859

 
—

 
2,809

Other current assets
139

 
100

 
90

 
(184
)
 
145

Total Current Assets
141

 
1,558

 
3,888

 
(184
)
 
5,403

Net Property, Plant and Equipment
31

 
873

 
3,118

 
—

 
4,022

Goodwill
—

 
881

 
1,010

 
—

 
1,891

Intangible Assets
—

 
26

 
103

 
—

 
129

Other Assets
1,257

 
151

 
251

 
(1,208
)
 
451

Investment in Subsidiaries
11,849

 
2,005

 
—

 
(13,854
)
 
—

Total Assets
$
13,278

 
$
5,494

 
$
8,370

 
$
(15,246
)
 
$
11,896

 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
439

 
$
—

 
$
167

 
$
(91
)
 
$
515

Accounts payable
10

 
558

 
804

 
—

 
1,372

Other current liabilities
4,887

 
144

 
766

 
(4,854
)
 
943

Total Current Liabilities
5,336

 
702

 
1,737

 
(4,945
)
 
2,830

Long-Term Debt
1,774

 
809

 
486

 
(1,152
)
 
1,917

Deferred Income Taxes
—

 
135

 
432

 
(9
)
 
558

Other Liabilities
156

 
146

 
294

 
(47
)
 
549

 
 
 
 
 
 
 
 
 
 
Total Tyson Shareholders’ Equity
6,012

 
3,702

 
5,391

 
(9,093
)
 
6,012

Noncontrolling Interest
—

 
—

 
30

 
—

 
30

Total Shareholders’ Equity
6,012

 
3,702

 
5,421

 
(9,093
)
 
6,042

Total Liabilities and Shareholders’ Equity
$
13,278

 
$
5,494

 
$
8,370

 
$
(15,246
)
 
$
11,896


Condensed Consolidating Statement Of Cash Flows 
Condensed Consolidating Statement of Cash Flows for the three months ended December 29, 2012
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
21

 
$
234

 
$
(65
)
 
$
—

 
$
190

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(2
)
 
(24
)
 
(131
)
 
—

 
(157
)
Proceeds from marketable securities, net
—

 
—

 
1

 
—

 
1

Other, net
—

 
—

 
4

 
—

 
4

Cash Provided by (Used for) Investing Activities
(2
)
 
(24
)
 
(126
)
 
—

 
(152
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
—

 
—

 
(11
)
 
—

 
(11
)
Purchases of Tyson Class A common stock
(115
)
 
—

 
—

 
—

 
(115
)
Dividends
(53
)
 
—

 
—

 
—

 
(53
)
Other, net
22

 
—

 
(1
)
 
—

 
21

Net change in intercompany balances
126

 
(199
)
 
73

 
—

 
—

Cash Provided by (Used for) Financing Activities
(20
)
 
(199
)
 
61

 
—

 
(158
)
Effect of Exchange Rate Change on Cash
—

 
—

 
—

 
—

 
—

Increase (Decrease) in Cash and Cash Equivalents
(1
)
 
11

 
(130
)
 
—

 
(120
)
Cash and Cash Equivalents at Beginning of Year
1

 
9

 
1,061

 
—

 
1,071

Cash and Cash Equivalents at End of Period
$
—

 
$
20

 
$
931

 
$
—

 
$
951



 
Condensed Consolidating Statement of Cash Flows for the three months ended December 31, 2011
 
in millions

 
TFI
Parent
 
TFM
Parent
 
Non-
Guarantors
 
Eliminations
 
Total
Cash Provided by (Used for) Operating Activities
$
59

 
$
332

 
$
(53
)
 
$
—

 
$
338

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
—

 
(25
)
 
(157
)
 
—

 
(182
)
Proceeds from marketable securities, net
—

 
2

 
1

 
—

 
3

Other, net
2

 
2

 
(1
)
 
—

 
3

Cash Provided by (Used for) Investing Activities
2

 
(21
)
 
(157
)
 
—

 
(176
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(1
)
 
—

 
21

 
—

 
20

Purchases of Tyson Class A common stock
(50
)
 
—

 
—

 
—

 
(50
)
Dividends
(15
)
 
—

 
—

 
—

 
(15
)
Other, net
22

 
—

 
—

 
—

 
22

Net change in intercompany balances
(18
)
 
(310
)
 
328

 
—

 
—

Cash Provided by (Used for) Financing Activities
(62
)
 
(310
)
 
349

 
—

 
(23
)
Effect of Exchange Rate Change on Cash
—

 
—

 
2

 
—

 
2

Increase (Decrease) in Cash and Cash Equivalents
(1
)
 
1

 
141

 
—

 
141

Cash and Cash Equivalents at Beginning of Year
1

 
1

 
714

 
—

 
716

Cash and Cash Equivalents at End of Period
$
—

 
$
2

 
$
855

 
$
—

 
$
857

Accounting Policies (Details) (Variable Interest Entity, Primary Beneficiary [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Sep. 29, 2012
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Accounting Policies [Line Items]
 
 
Ownership interest percentage, investment in Dynamic Fuels, LLC joint venture
50.00% 
 
Variable interest entity total assets
$ 157 
$ 177 
Variable interest entity net property, plant and equipment
146 
146 
Variable interest entity total liabilities
117 
124 
Variable interest entity long-term debt
$ 100 
$ 100 
Accounting Policies Share Repurchases (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Accounting Policies [Line Items]
 
 
Payment for common shares repurchased
$ 115 
$ 50 
Share Repurchase Program [Member] |
Class A [Member]
 
 
Accounting Policies [Line Items]
 
 
Common shares repurchased
5.1 
1.8 
Payment for common shares repurchased
100 
35 
Remaining shares available to repurchase
30.1 
 
Open Market Repurchases [Member] |
Class A [Member]
 
 
Accounting Policies [Line Items]
 
 
Common shares repurchased
0.8 
0.8 
Payment for common shares repurchased
$ 15 
$ 15 
Inventories (Schedule Of Inventories Of Processed Products, Livestock, And Supplies Valued At Lower Of Cost Or Market) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Inventory Disclosure [Abstract]
 
 
Processed Products - Weighted-average method – chicken and prepared foods
$ 824 
$ 754 
Processed Products - First-in, first-out method – beef and pork
595 
611 
Livestock – first-in, first-out method
1,038 
952 
Supplies and other – weighted-average method
475 
492 
Total inventories
$ 2,932 
$ 2,809 
Property, Plant And Equipment (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 8,993 
$ 8,883 
Less accumulated depreciation
4,950 
4,861 
Net property, plant and equipment
4,043 
4,022 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
101 
101 
Buildings And Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
2,901 
2,868 
Machinery And Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
5,276 
5,208 
Land Improvements And Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
411 
408 
Buildings And Equipment Under Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 304 
$ 298 
Other Current Liabilities (Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Other Liabilities, Current [Abstract]
 
 
Accrued salaries, wages and benefits
$ 272 
$ 382 
Self-insurance reserves
274 
274 
Other
346 
287 
Total other current liabilities
$ 892 
$ 943 
Debt (Major Components Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Sep. 30, 2008
Debt Instrument [Line Items]
 
 
 
Revolving credit facility
$ 0 
$ 0 
 
Discount on senior notes
(23)
(28)
 
Other
115 
126 
 
Total debt
2,426 
2,432 
 
Less current debt
519 
515 
 
Total long-term debt
1,907 
1,917 
 
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 (2013 Notes) [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
458 
458 
 
Stated interest rate
3.25% 
 
3.25% 
6.60% Senior Notes Due April 2016 (2016 Notes) [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
638 
638 
 
Interest rate at period end
6.60% 
 
 
7.00% Notes Due May 2018 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
120 
120 
 
Stated interest rate
7.00% 
 
 
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
1,000 
1,000 
 
Stated interest rate
4.50% 
 
 
7.00% Notes Due January 2028 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Senior Notes
18 
18 
 
Stated interest rate
7.00% 
 
 
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
GO Zone tax-exempt bonds due October 2033
$ 100 
$ 100 
 
Interest rate at period end
0.14% 
 
 
Debt (Narrative) (Details) (USD $)
1 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended
Dec. 29, 2012
Dec. 29, 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]
Sep. 27, 2008
2016 Notes [Member]
Oct. 31, 2008
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Dec. 29, 2012
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Nov. 30, 2008
Go Zone Tax Exempt Bonds [Member]
Jun. 30, 2012
Prior To Credit Rating Adjustment [Member]
2016 Notes [Member]
Jun. 30, 2012
After Credit Rating Adjustment [Member]
2016 Notes [Member]
Dec. 29, 2012
Standby Letters of Credit [Member]
Dec. 29, 2012
Bilateral Letters Of Credit [Member]
Oct. 2, 2010
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]
Dec. 29, 2012
Common Class A [Member]
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available under credit facility
$ 1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available for borrowing under credit facility
962,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit issued amount
 
 
 
 
 
 
 
 
 
38,000,000 
151,000,000 
 
 
 
Debt instrument, face amount
 
 
458,000,000 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
3.25% 
3.25% 
6.60% 
 
 
 
 
 
 
 
 
 
 
Conversion rate
 
 
 
 
 
 
 
 
 
 
 
 
 
59.5360 
Principal amounts for conversion
 
1,000 
 
 
 
 
 
 
 
 
 
 
 
1,000 
Conversion price, per share
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 16.80 
Initial Dividend Threshold
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.04 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 21.84 
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 recognized from adoption of accounting standard
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
16.80 
Proceeds from sale of warrants
 
 
 
 
 
 
 
 
 
 
 
 
44,000,000 
 
Shares able to be purchased through warrants
 
 
 
 
 
 
 
 
 
 
 
 
27,000,000 
 
Exercise price of warrants, per share
 
 
 
 
 
 
 
 
 
 
 
 
 
22.18 
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
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 22.18 
Additional stock issuance if increase in share price
 
 
 
 
 
 
 
 
 
 
 
 
 
2,500,000 
Interest rate at period end
 
 
 
 
 
0.14% 
 
6.85% 
6.60% 
 
 
 
 
 
Proceeds from the sale of Gulf Opportunity Zone tax-exempt bonds
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
Interest rate swap period in force
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
Syntroleum Corporation Responsibility of Guarantee
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
Syntroleum Corporation Maximum Guarantee Responsibility
 
 
 
 
 
$ 50,000,000 
 
 
 
 
 
 
 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Sep. 29, 2012
Income Tax Disclosure [Abstract]
 
 
 
Effective tax rate
36.30% 
35.80% 
 
Unrecognized tax benefits
$ 139 
 
$ 168 
Unrecognized tax benefits, income tax penalties and interest accrued
$ 62 
 
$ 64 
Other Income And Charges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Other Income and Expenses [Abstract]
 
 
Equity Earnings In Joint Ventures
$ 3 
$ 6 
Foreign currency exchange loss, before tax
3 
 
Foreign currency exchange gains, before tax
 
$ 5 
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
Dec. 29, 2012
Dec. 31, 2011
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Net income
$ 168 
$ 156 
Less: Net loss attributable to noncontrolling interest
(5)
0 
Net Income Attributable to Tyson
173 
156 
Undistributed earnings
117 
141 
Stock options and restricted stock
5 
5 
Convertible 2013 Notes
2 
4 
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions
362 
376 
Net Income Per Share Attributable to Tyson - Diluted
$ 0.48 
$ 0.42 
Class A [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Less Dividends:
46 
12 
Undistributed earnings
96 
117 
Weighted average number of shares outstanding - Basic
285 
297 
Net Income Per Share Attributable to Tyson - Basic
$ 0.50 
$ 0.43 
Class B [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Less Dividends:
10 
3 
Undistributed earnings
$ 21 
$ 24 
Weighted average number of shares outstanding - Basic
70 
70 
Net Income Per Share Attributable to Tyson - Basic
$ 0.45 
$ 0.39 
Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Earnings Per Share, Basic and Diluted [Line Items]
 
 
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 
 
Class B [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Undistributed earnings (losses), ratio used to calculate allocation to class of stock
0.9 
 
Stock Compensation Plan [Member]
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share, shares
8 
4 
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
Dec. 29, 2012
Dec. 31, 2011
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ (13)
$ (3)
Gain/(Loss) Reclassified from OCI to Earnings
2 
(1)
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
(13)
2 
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Reclassified from OCI to Earnings
4 
(6)
Foreign Exchange Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
0 
(5)
Foreign Exchange Contracts [Member] |
Other Income/Expense [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Reclassified from OCI to Earnings
$ (2)
$ 5 
Derivative Financial Instruments (Pretax Impact Of Fair Value Hedge Derivative Instruments On The Consolidated Statements of Income) (Details) (Fair Value Hedging [Member], Cost of Sales [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Forward Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) on forwards
$ 4 
$ (8)
Purchase Contracts [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) on forwards
$ (4)
$ 8 
Derivative Financial Instruments (Pretax Impact Of Net Investment Hedge Derivative Instruments On The Consolidated Statements Of Income) (Details) (Net Investment Hedging [Member], Foreign Exchange Contracts [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ 0 
$ (1)
Other Income/Expense [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Reclassified from OCI to Earnings
$ 0 
$ 0 
Derivative Financial Instruments (Pretax Impact Of Undesignated Derivative Instruments On The Consolidated Statements Of Income) (Details) (Nondesignated [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
$ 5 
$ 29 
Commodity Contracts [Member] |
Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
11 
(3)
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
(7)
29 
Foreign Exchange Contracts [Member] |
Other Income/Expense [Member]
 
 
Derivative [Line Items]
 
 
Gain/(Loss) Recognized in Earnings
$ 1 
$ 3 
Derivative Financial Instruments (Fair Value Of All Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Derivative [Line Items]
 
 
Derivative Assets
$ 35 
$ 54 
Derivative Liabilities
90 
105 
Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Derivative Liabilities
12 
7 
Designated as Hedging Instrument [Member] |
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
5 
32 
Derivative Liabilities
12 
6 
Designated as Hedging Instrument [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Liabilities
0 
1 
Nondesignated [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
30 
22 
Derivative Liabilities
78 
98 
Nondesignated [Member] |
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
29 
21 
Derivative Liabilities
75 
96 
Nondesignated [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
1 
1 
Derivative Liabilities
2 
2 
Nondesignated [Member] |
Interest Rate Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Liabilities
$ 1 
$ 0 
Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
M
Dec. 29, 2012
Net Investment Hedging [Member]
Sep. 29, 2012
Net Investment Hedging [Member]
Derivative [Line Items]
 
 
 
Maximum length of time hedged forecasted transactions, months
18 
 
 
Notional amount of foreign currency derivatives
 
$ 27 
$ 27 
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
Dec. 29, 2012
Sep. 29, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative assets and liabilities posted cash collateral
$ 67 
$ 59 
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets Foreign Exchange Forward Contracts
1 
0 
Deferred Compensation Assets
180 
180 
Total Assets
308 
313 
Liabilities Foreign Exchange Forward Contracts
1 
3 
Total Liabilities
2 
5 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets Foreign Exchange Forward Contracts
0 
0 
Deferred Compensation Assets
22 
31 
Total Assets
25 
37 
Liabilities Foreign Exchange Forward Contracts
0 
0 
Total Liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets Foreign Exchange Forward Contracts
1 
1 
Deferred Compensation Assets
158 
149 
Total Assets
219 
231 
Liabilities Foreign Exchange Forward Contracts
2 
3 
Total Liabilities
90 
105 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets Foreign Exchange Forward Contracts
0 
0 
Deferred Compensation Assets
0 
0 
Total Assets
85 
86 
Liabilities Foreign Exchange Forward Contracts
0 
0 
Total Liabilities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Netting [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Assets Foreign Exchange Forward Contracts
0 
(1)
Deferred Compensation Assets
0 
0 
Total Assets
(21)
(41)
Liabilities Foreign Exchange Forward Contracts
(1)
0 
Total Liabilities
(88)
(100)
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 
113 
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 
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:
26 
27 
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:
85 
86 
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 
0 
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:
3 
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:
3 
6 
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 
1 
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 
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 
0 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
13 
13 
Derivative Financial Instruments, Liabilities
0 
2 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
0 
0 
Derivative Financial Instruments, Liabilities
0 
0 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
34 
53 
Derivative Financial Instruments, Liabilities
87 
102 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
0 
0 
Derivative Financial Instruments, Liabilities
0 
0 
Commodity [Member] |
Fair Value, Measurements, Recurring [Member] |
Netting [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
(21)
(40)
Derivative Financial Instruments, Liabilities
(87)
(100)
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 
0 
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 
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 
0 
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 
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 
$ 0 
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
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Balance at beginning of year
$ 86 
$ 83 
Total realized and unrealized gains (losses), Included in earnings
0 
1 
Total realized and unrealized gains (losses), Included in other comprehensive income (loss)
0 
(2)
Purchases
3 
6 
Issuances
0 
0 
Settlements
(4)
(4)
Balance at end of period
85 
84 
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 
$ 0 
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) (USD $)
Share data in Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 29, 2012
Sep. 29, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available-For-Sale Securities, Debt Maturity Date, Range, Maximum
35 years 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
$ 2,000,000 
$ 2,000,000 
U.S. Treasury and Agency [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
25,000,000 
26,000,000 
Fair Value
26,000,000 
27,000,000 
Unrealized Gain/(Loss)
1,000,000 
1,000,000 
Corporate And Asset-Backed [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
63,000,000 
64,000,000 
Fair Value
65,000,000 
66,000,000 
Unrealized Gain/(Loss)
2,000,000 
2,000,000 
Redeemable Preferred Stock [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
20,000,000 
20,000,000 
Fair Value
20,000,000 
20,000,000 
Unrealized Gain/(Loss)
0 
0 
Common Stock and Warrants [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
9,000,000 
9,000,000 
Fair Value
3,000,000 
7,000,000 
Unrealized Gain/(Loss)
(6,000,000)
(2,000,000)
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Number of shares of Syntroleum Corporation acquired
8 
 
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Number of warrants to purchase equivalent amount of shares in Syntroleum Corporation
4.25 
 
Exercise price of warrants to purchase shares of Sytroleum Corporation (USD per warrant)
$ 2.87 
 
Fair Value Measurements (Schedule Of Fair Value And Carrying Value Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Fair Value Disclosures [Abstract]
 
 
Total Debt, Fair Value
$ 2,606 
$ 2,596 
Total Debt, Carrying Value
$ 2,426 
$ 2,432 
Other Comprehensive Income (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Other Comprehensive Income Loss [Line Items]
 
 
Unrealized Gain (Loss) on Derivatives, Before Tax
$ (13)
$ (3)
Unrealized Gain (Loss) on Derivatives, Tax
5 
1 
Unrealized Gain (Loss) on Derivatives, After Tax
(8)
(2)
Unrealized Gain (Loss) on Investments, Before Tax
(4)
2 
Unrealized Gain (Loss) on Investments, Tax
2 
(1)
Unrealized Gain (Loss) on Investments, After Tax
(2)
1 
Currency Translation Adjustment, Before Tax
(1)
3 
Currency Translation Adjustment, Tax
0 
0 
Currency Translation Adjustment, After Tax
(1)
3 
Postretirement Benefits, Before Tax
1 
1 
Postretirement Benefits, Tax
0 
0 
Postretirement Benefits, After Tax
1 
1 
Total Other Comprehensive Income (Loss), Before Tax
(19)
4 
Total Other Comprehensive Income (Loss), Tax
8 
0 
Total Other Comprehensive Income (Loss), Net of Taxes
(11)
4 
Cost of Sales [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Cash Flow Hedge (Gain) Loss Reclassified to Earnings, Before Tax
(4)
6 
Cash Flow Hedge (Gain) Loss Reclassified To Earnings, Tax
2 
(2)
Cash Flow Hedge (Gain) Loss Reclassified to Earnings, After Tax
(2)
4 
Other Income/Expense [Member]
 
 
Other Comprehensive Income Loss [Line Items]
 
 
Cash Flow Hedge (Gain) Loss Reclassified to Earnings, Before Tax
2 
(5)
Cash Flow Hedge (Gain) Loss Reclassified To Earnings, Tax
(1)
2 
Cash Flow Hedge (Gain) Loss Reclassified to Earnings, After Tax
$ 1 
$ (3)
Segment Reporting (Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
Sales
$ 8,402 
$ 8,329 
Operating Income (Loss)
300 
278 
Total Other (Income) Expense
36 
35 
Income before Income Taxes
264 
243 
Chicken [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
2,956 
2,762 
Operating Income (Loss)
107 
32 
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
3,485 
3,467 
Operating Income (Loss)
46 
31 
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
1,363 
1,475 
Operating Income (Loss)
125 
165 
Prepared Foods [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
841 
861 
Operating Income (Loss)
33 
51 
Other [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
20 
54 
Operating Income (Loss)
(11)
(1)
Intersegment Sales [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Sales
$ (263)
$ (290)
Segment Reporting (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
Number of segments
4 
 
Intersegment Elimination [Member] |
Beef [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Intersegment Sales
$ 43 
$ 64 
Intersegment Elimination [Member] |
Pork [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Intersegment Sales
$ 220 
$ 226 
Commitments And Contingencies Commitments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Sep. 29, 2012
Dec. 29, 2012
Guarantee of Indebtedness of Others [Member]
Dec. 29, 2012
Residual Value Guarantees [Member]
Guarantor Obligations [Line Items]
 
 
 
 
Guarantor Obligations, Maximum Exposure, Period (in years)
 
 
10 years 
 
Maximum potential amount
 
 
$ 71 
$ 56 
Guarantor Obligations, Maximum Exposure, Remaining Lease Period (in years)
 
 
 
7 years 
Amount recoverable through various recourse provisions
 
 
 
50 
Potential maximum obligation under cash flow assistance programs
290 
 
 
 
Total receivables under cash flow assistance programs
39 
25 
 
 
Uncollectible receivables estimated under cash flow assistance programs
$ 13 
$ 10 
 
 
Commitments And Contingencies Contingencies (Details) (USD $)
0 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Oct. 20, 2010
Tyson Fresh Meats Inc [Member]
Claims
Dec. 7, 2012
Garcia Case [Member]
Mar. 17, 2011
Garcia Case [Member]
Sep. 26, 2011
Bouaphakeo Case [Member]
Oct. 31, 2012
Bouaphakeo Case [Member]
Oct. 20, 2010
Tyson Prepared Foods Plant [Member]
Plantiffs
Claims
Jun. 30, 2005
Attorney General and the Secretary of the Environment of the State Of Oklahoma [Member]
acre
Jun. 30, 2009
Armstrong Case [Member]
Plantiffs
May 8, 2008
Armstrong Case [Member]
Poultry_Growers
Oct. 30, 2009
Clardy Case [Member]
Poultry_Growers
Apr. 30, 2010
Armstrong And Clardy Cases [Member]
Dec. 31, 2010
United States Environmental Protection Agency [Member]
Facilities
Jun. 30, 2005
Subsidiaries [Member]
Attorney General and the Secretary of the Environment of the State Of Oklahoma [Member]
Subsidiary
Jun. 30, 2005
Poultry Integrators [Member]
Attorney General and the Secretary of the Environment of the State Of Oklahoma [Member]
Integrators
May 8, 2008
Employees [Member]
Armstrong Case [Member]
Employees
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of cases filed
11 
 
 
 
 
1 
 
 
 
 
 
 
 
 
 
Damages awarded
 
 
$ 503,011 
$ 5,784,758 
 
 
 
 
 
 
 
 
 
 
 
Granted application for attorneys fees and expenses
 
3,609,723 
 
 
 
 
 
 
 
 
 
 
 
 
 
Filed application for attorneys' fees and expenses
 
 
 
 
2,692,145 
 
 
 
 
 
 
 
 
 
 
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 sought
 
 
 
 
 
 
800,000,000 
 
 
 
 
 
 
 
 
Final judgment amount
 
 
 
 
 
 
 
 
 
 
$ 8,655,735 
 
 
 
 
Tyson Facilities
 
 
 
 
 
 
 
 
 
 
 
25 
 
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income and Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
$ 8,402 
$ 8,329 
Cost of Sales
7,865 
7,836 
Gross Profit
537 
493 
Selling, General and Administrative
237 
215 
Operating Income
300 
278 
Other (Income) Expense:
 
 
Interest expense, net
36 
47 
Other, net
0 
(12)
Equity in net earnings of subsidiaries
0 
0 
Total Other (Income) Expense
36 
35 
Income (Loss) before Income Taxes
264 
243 
Income Tax Expense
96 
87 
Net Income
168 
156 
Less: Net Loss Attributable to Noncontrolling Interest
(5)
0 
Net Income Attributable to Tyson
173 
156 
Comprehensive Income
157 
160 
Less: Comprehensive Loss Attributable to Noncontrolling Interest
(5)
0 
Comprehensive Income Attributable to Tyson
162 
160 
TFI Parent [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
75 
52 
Cost of Sales
16 
8 
Gross Profit
59 
44 
Selling, General and Administrative
20 
12 
Operating Income
39 
32 
Other (Income) Expense:
 
 
Interest expense, net
8 
(13)
Other, net
0 
1 
Equity in net earnings of subsidiaries
(149)
(127)
Total Other (Income) Expense
(141)
(139)
Income (Loss) before Income Taxes
180 
171 
Income Tax Expense
7 
15 
Net Income
173 
156 
Less: Net Loss Attributable to Noncontrolling Interest
0 
0 
Net Income Attributable to Tyson
173 
156 
Comprehensive Income
157 
160 
Less: Comprehensive Loss Attributable to Noncontrolling Interest
0 
0 
Comprehensive Income Attributable to Tyson
157 
160 
TFM Parent, Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
4,750 
4,841 
Cost of Sales
4,538 
4,642 
Gross Profit
212 
199 
Selling, General and Administrative
52 
50 
Operating Income
160 
149 
Other (Income) Expense:
 
 
Interest expense, net
16 
32 
Other, net
0 
0 
Equity in net earnings of subsidiaries
(24)
(26)
Total Other (Income) Expense
(8)
6 
Income (Loss) before Income Taxes
168 
143 
Income Tax Expense
51 
40 
Net Income
117 
103 
Less: Net Loss Attributable to Noncontrolling Interest
0 
0 
Net Income Attributable to Tyson
117 
103 
Comprehensive Income
121 
100 
Less: Comprehensive Loss Attributable to Noncontrolling Interest
0 
0 
Comprehensive Income Attributable to Tyson
121 
100 
Non-Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
3,904 
3,761 
Cost of Sales
3,638 
3,511 
Gross Profit
266 
250 
Selling, General and Administrative
165 
153 
Operating Income
101 
97 
Other (Income) Expense:
 
 
Interest expense, net
12 
28 
Other, net
0 
(13)
Equity in net earnings of subsidiaries
0 
0 
Total Other (Income) Expense
12 
15 
Income (Loss) before Income Taxes
89 
82 
Income Tax Expense
38 
32 
Net Income
51 
50 
Less: Net Loss Attributable to Noncontrolling Interest
(5)
0 
Net Income Attributable to Tyson
56 
50 
Comprehensive Income
50 
51 
Less: Comprehensive Loss Attributable to Noncontrolling Interest
(5)
0 
Comprehensive Income Attributable to Tyson
55 
51 
Eliminations [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Sales
(327)
(325)
Cost of Sales
(327)
(325)
Gross Profit
0 
0 
Selling, General and Administrative
0 
0 
Operating Income
0 
0 
Other (Income) Expense:
 
 
Interest expense, net
0 
0 
Other, net
0 
0 
Equity in net earnings of subsidiaries
173 
153 
Total Other (Income) Expense
173 
153 
Income (Loss) before Income Taxes
(173)
(153)
Income Tax Expense
0 
0 
Net Income
(173)
(153)
Less: Net Loss Attributable to Noncontrolling Interest
0 
0 
Net Income Attributable to Tyson
(173)
(153)
Comprehensive Income
(171)
(151)
Less: Comprehensive Loss Attributable to Noncontrolling Interest
0 
0 
Comprehensive Income Attributable to Tyson
$ (171)
$ (151)
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 29, 2012
Sep. 29, 2012
Dec. 31, 2011
Oct. 1, 2011
Assets
 
 
 
 
Cash and cash equivalents
$ 951 
$ 1,071 
$ 857 
$ 716 
Accounts receivable, net
1,365 
1,378 
 
 
Inventories
2,932 
2,809 
 
 
Other current assets
139 
145 
 
 
Total Current Assets
5,387 
5,403 
 
 
Net Property, Plant and Equipment
4,043 
4,022 
 
 
Goodwill
1,891 
1,891 
 
 
Intangible Assets
126 
129 
 
 
Other Assets
427 
451 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
11,874 
11,896 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
519 
515 
 
 
Accounts payable
1,435 
1,372 
 
 
Other current liabilities
892 
943 
 
 
Total Current Liabilities
2,846 
2,830 
 
 
Long-Term Debt
1,907 
1,917 
 
 
Deferred Income Taxes
536 
558 
 
 
Other Liabilities
527 
549 
 
 
Total Tyson Shareholders' Equity
6,034 
6,012 
 
 
Noncontrolling Interest
24 
30 
 
 
Total Shareholders' Equity
6,058 
6,042 
 
 
Total Liabilities and Shareholders' Equity
11,874 
11,896 
 
 
TFI Parent [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
1 
0 
1 
Accounts receivable, net
1 
1 
 
 
Inventories
1 
0 
 
 
Other current assets
115 
139 
 
 
Total Current Assets
117 
141 
 
 
Net Property, Plant and Equipment
32 
31 
 
 
Goodwill
0 
0 
 
 
Intangible Assets
0 
0 
 
 
Other Assets
1,233 
1,257 
 
 
Investment in Subsidiaries
11,525 
11,849 
 
 
Total Assets
12,907 
13,278 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
446 
439 
 
 
Accounts payable
28 
10 
 
 
Other current liabilities
4,460 
4,887 
 
 
Total Current Liabilities
4,934 
5,336 
 
 
Long-Term Debt
1,769 
1,774 
 
 
Deferred Income Taxes
0 
0 
 
 
Other Liabilities
170 
156 
 
 
Total Tyson Shareholders' Equity
6,034 
6,012 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
6,034 
6,012 
 
 
Total Liabilities and Shareholders' Equity
12,907 
13,278 
 
 
TFM Parent, Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
20 
9 
2 
1 
Accounts receivable, net
514 
499 
 
 
Inventories
1,005 
950 
 
 
Other current assets
63 
100 
 
 
Total Current Assets
1,602 
1,558 
 
 
Net Property, Plant and Equipment
871 
873 
 
 
Goodwill
881 
881 
 
 
Intangible Assets
25 
26 
 
 
Other Assets
147 
151 
 
 
Investment in Subsidiaries
2,075 
2,005 
 
 
Total Assets
5,601 
5,494 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
0 
0 
 
 
Accounts payable
697 
558 
 
 
Other current liabilities
166 
144 
 
 
Total Current Liabilities
863 
702 
 
 
Long-Term Debt
809 
809 
 
 
Deferred Income Taxes
130 
135 
 
 
Other Liabilities
133 
146 
 
 
Total Tyson Shareholders' Equity
3,666 
3,702 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
3,666 
3,702 
 
 
Total Liabilities and Shareholders' Equity
5,601 
5,494 
 
 
Non-Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
931 
1,061 
855 
714 
Accounts receivable, net
850 
878 
 
 
Inventories
1,926 
1,859 
 
 
Other current assets
128 
90 
 
 
Total Current Assets
3,835 
3,888 
 
 
Net Property, Plant and Equipment
3,140 
3,118 
 
 
Goodwill
1,010 
1,010 
 
 
Intangible Assets
101 
103 
 
 
Other Assets
231 
251 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
8,317 
8,370 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
145 
167 
 
 
Accounts payable
710 
804 
 
 
Other current liabilities
755 
766 
 
 
Total Current Liabilities
1,610 
1,737 
 
 
Long-Term Debt
458 
486 
 
 
Deferred Income Taxes
420 
432 
 
 
Other Liabilities
265 
294 
 
 
Total Tyson Shareholders' Equity
5,540 
5,391 
 
 
Noncontrolling Interest
24 
30 
 
 
Total Shareholders' Equity
5,564 
5,421 
 
 
Total Liabilities and Shareholders' Equity
8,317 
8,370 
 
 
Eliminations [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
0 
 
 
Inventories
0 
0 
 
 
Other current assets
(167)
(184)
 
 
Total Current Assets
(167)
(184)
 
 
Net Property, Plant and Equipment
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangible Assets
0 
0 
 
 
Other Assets
(1,184)
(1,208)
 
 
Investment in Subsidiaries
(13,600)
(13,854)
 
 
Total Assets
(14,951)
(15,246)
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
(72)
(91)
 
 
Accounts payable
0 
0 
 
 
Other current liabilities
(4,489)
(4,854)
 
 
Total Current Liabilities
(4,561)
(4,945)
 
 
Long-Term Debt
(1,129)
(1,152)
 
 
Deferred Income Taxes
(14)
(9)
 
 
Other Liabilities
(41)
(47)
 
 
Total Tyson Shareholders' Equity
(9,206)
(9,093)
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
(9,206)
(9,093)
 
 
Total Liabilities and Shareholders' Equity
$ (14,951)
$ (15,246)
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Dec. 29, 2012
Dec. 31, 2011
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
$ 190 
$ 338 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(157)
(182)
(Purchases of)/ Proceeds from marketable securities, net
1 
3 
Other, net
4 
3 
Cash Used for Investing Activities
(152)
(176)
Cash Flows From Financing Activities:
 
 
Net change in debt
(11)
20 
Purchases of Tyson Class A common stock
(115)
(50)
Dividends
(53)
(15)
Other, net
21 
22 
Net change in intercompany balances
0 
0 
Cash Used for Financing Activities
(158)
(23)
Effect of Exchange Rate Change on Cash
0 
2 
Increase (Decrease) in Cash and Cash Equivalents
(120)
141 
Cash and Cash Equivalents at Beginning of Year
1,071 
716 
Cash and Cash Equivalents at End of Period
951 
857 
TFI Parent [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
21 
59 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(2)
0 
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Other, net
0 
2 
Cash Used for Investing Activities
(2)
2 
Cash Flows From Financing Activities:
 
 
Net change in debt
0 
(1)
Purchases of Tyson Class A common stock
(115)
(50)
Dividends
(53)
(15)
Other, net
22 
22 
Net change in intercompany balances
126 
(18)
Cash Used for Financing Activities
(20)
(62)
Effect of Exchange Rate Change on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
(1)
(1)
Cash and Cash Equivalents at Beginning of Year
1 
1 
Cash and Cash Equivalents at End of Period
0 
0 
TFM Parent, Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
234 
332 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(24)
(25)
(Purchases of)/ Proceeds from marketable securities, net
0 
2 
Other, net
0 
2 
Cash Used for Investing Activities
(24)
(21)
Cash Flows From Financing Activities:
 
 
Net change in debt
0 
0 
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Other, net
0 
0 
Net change in intercompany balances
(199)
(310)
Cash Used for Financing Activities
(199)
(310)
Effect of Exchange Rate Change on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
11 
1 
Cash and Cash Equivalents at Beginning of Year
9 
1 
Cash and Cash Equivalents at End of Period
20 
2 
Non-Guarantors [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
(65)
(53)
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
(131)
(157)
(Purchases of)/ Proceeds from marketable securities, net
1 
1 
Other, net
4 
(1)
Cash Used for Investing Activities
(126)
(157)
Cash Flows From Financing Activities:
 
 
Net change in debt
(11)
21 
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Other, net
(1)
0 
Net change in intercompany balances
73 
328 
Cash Used for Financing Activities
61 
349 
Effect of Exchange Rate Change on Cash
0 
2 
Increase (Decrease) in Cash and Cash Equivalents
(130)
141 
Cash and Cash Equivalents at Beginning of Year
1,061 
714 
Cash and Cash Equivalents at End of Period
931 
855 
Eliminations [Member]
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
Cash Provided by (Used for) Operating Activities
0 
0 
Cash Flows From Investing Activities:
 
 
Additions to property, plant and equipment
0 
0 
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
Other, net
0 
0 
Cash Used for Investing Activities
0 
0 
Cash Flows From Financing Activities:
 
 
Net change in debt
0 
0 
Purchases of Tyson Class A common stock
0 
0 
Dividends
0 
0 
Other, net
0 
0 
Net change in intercompany balances
0 
0 
Cash Used for Financing Activities
0 
0 
Effect of Exchange Rate Change on Cash
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
0 
Cash and Cash Equivalents at Beginning of Year
0 
0 
Cash and Cash Equivalents at End of Period
$ 0 
$ 0 
Condensed Consolidating Financial Statements Condensed Consolidating Financial Statements (Narrative) (Details) (USD $)
In Billions, unless otherwise specified
Dec. 29, 2012
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
 
Amount available under credit facility
$ 1.0