TYSON FOODS INC, 10-K filed on 11/19/2012
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Sep. 29, 2012
Oct. 27, 2012
Class A [Member]
Mar. 31, 2012
Class A [Member]
Oct. 27, 2012
Class B [Member]
Mar. 31, 2012
Class B [Member]
Entity Registrant Name
TYSON FOODS INC 
 
 
 
 
Entity Central Index Key
0000100493 
 
 
 
 
Current Fiscal Year End Date
--09-29 
 
 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
 
 
Document Type
10-K 
 
 
 
 
Document Period End Date
Sep. 29, 2012 
 
 
 
 
Document Fiscal Year Focus
2012 
 
 
 
 
Document Fiscal Period Focus
FY 
 
 
 
 
Amendment Flag
false 
 
 
 
 
Entity Common Stock, Shares Outstanding
 
288,751,385 
 
70,015,755 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
 
 
Entity Voluntary Filers
No 
 
 
 
 
Entity Current Reporting Status
Yes 
 
 
 
 
Entity Public Float
 
 
$ 5,551,806,987 
 
$ 340,008 
Consolidated Statements Of Income (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Sales
$ 33,278 
$ 32,266 
$ 28,430 
Cost of Sales
31,118 
30,067 
25,916 
Gross Profit
2,160 
2,199 
2,514 
Operating Expenses:
 
 
 
Selling, general and administrative
912 
914 
929 
Goodwill impairment
0 
0 
29 
Operating Income
1,248 
1,285 
1,556 
Other (Income) Expense:
 
 
 
Interest income
(12)
(11)
(14)
Interest expense
356 
242 
347 
Other, net
(23)
(20)
20 
Total Other (Income) Expense
321 
211 
353 
Income before Income Taxes
927 
1,074 
1,203 
Income Tax Expense
351 
341 
438 
Net Income
576 
733 
765 
Less: Net Loss Attributable to Noncontrolling Interest
(7)
(17)
(15)
Net Income Attributable to Tyson
$ 583 
$ 750 
$ 780 
Weighted Average Shares Outstanding:
 
 
 
Diluted, Shares
370 
380 
379 
Net Income Per Share Attributable to Tyson:
 
 
 
Diluted (USD per share)
$ 1.58 
$ 1.97 
$ 2.06 
Class A [Member]
 
 
 
Weighted Average Shares Outstanding:
 
 
 
Basic, Shares
293 
303 
303 
Net Income Per Share Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 1.64 
$ 2.04 
$ 2.13 
Class B [Member]
 
 
 
Weighted Average Shares Outstanding:
 
 
 
Basic, Shares
70 
70 
70 
Net Income Per Share Attributable to Tyson:
 
 
 
Basic (USD per share)
$ 1.48 
$ 1.84 
$ 1.91 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Assets
 
 
Cash and cash equivalents
$ 1,071 
$ 716 
Accounts receivable, net
1,378 
1,321 
Inventories
2,809 
2,587 
Other current assets
145 
156 
Total Current Assets
5,403 
4,780 
Net Property, Plant and Equipment
4,022 
3,823 
Goodwill
1,891 
1,892 
Intangible Assets
129 
149 
Other Assets
451 
427 
Total Assets
11,896 
11,071 
Liabilities and Shareholders' Equity
 
 
Current debt
515 
70 
Accounts payable
1,372 
1,264 
Other current liabilities
943 
1,040 
Total Current Liabilities
2,830 
2,374 
Long-Term Debt
1,917 
2,112 
Deferred Income Taxes
558 
424 
Other Liabilities
549 
476 
Commitments and Contingencies (Note 19)
   
   
Shareholders' Equity:
 
 
Capital in excess of par value
2,278 
2,261 
Retained earnings
4,327 
3,801 
Accumulated other comprehensive loss
(63)
(79)
Treasury stock, at cost - 33 million shares in 2012, and 22 million shares in 2011
(569)
(365)
Total Tyson Shareholders' Equity
6,012 
5,657 
Noncontrolling Interest
30 
28 
Total Shareholders' Equity
6,042 
5,685 
Total Liabilities and Shareholders' Equity
11,896 
11,071 
Class A [Member]
 
 
Shareholders' Equity:
 
 
Common stock
32 
32 
Total Shareholders' Equity
32 
32 
Convertible Class B [Member]
 
 
Shareholders' Equity:
 
 
Common stock
7 
7 
Total Shareholders' Equity
$ 7 
$ 7 
Consolidated Balance Sheets (Parentheticals) (USD $)
In Millions, except Per Share data, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Treasury Stock, shares
33 
22 
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 Statements Of Shareholders' Equity (USD $)
In Millions, unless otherwise specified
Total
Class A [Member]
Class B [Member]
Capital In Excess Of Par Value [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Member]
Treasury Stock [Member]
Equity Attributable To Tyson [Member]
Equity Attributable To Noncontrolling Interests [Member]
Comprehensive Income [Member]
Balance, value at Oct. 03, 2009
 
$ 32 
$ 7 
$ 2,236 
$ 2,399 
$ (34)
$ (242)
 
$ 33 
 
Balance, shares at Oct. 03, 2009
 
322 
70 
 
 
 
16 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
Stock-based compensation, value
 
 
 
7 
 
 
61 
 
 
 
Net income attributable to Tyson
780 
 
 
 
780 
 
 
 
 
 
Dividends
 
(49)
(10)
 
(59)
 
 
 
 
 
Redeemable noncontrolling interest accretion
 
 
 
 
(7)
 
 
 
 
 
Hedge accounting
 
 
 
 
 
12 
 
 
 
 
Investment accounting
 
 
 
 
 
0 
 
 
 
 
Currency translation adjustments
 
 
 
 
 
27 
 
 
 
 
Net change in postretirement liabilities
 
 
 
 
 
(5)
 
 
 
 
Purchase of Tyson Class A common stock, shares
 
 
 
 
 
 
3 
 
 
 
Purchase of Tyson Class A common stock, value
 
 
 
 
 
 
(48)
 
 
 
Stock-based compensation, shares
 
 
 
 
 
 
(4)
 
 
 
Net loss attributable to noncontrolling interests
(15)
 
 
 
 
 
 
 
(6)1
 
Contributions by (distributions to) noncontrolling interest
 
 
 
 
 
 
 
 
10 
 
Net foreign currency translation adjustment and other
 
 
 
 
 
 
 
 
(2)
 
Net income
765 
 
 
 
 
 
 
 
 
765 
Other comprehensive income (loss), net of tax
34 
 
 
 
 
 
 
 
 
34 
Total Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
799 
Comprehensive Loss attributable to noncontrolling interest
 
 
 
 
 
 
 
 
 
(6)
Total Comprehensive Income (Loss) attributable to Tyson
 
 
 
 
 
 
 
 
 
805 
Balance, value at Oct. 02, 2010
5,201 
32 
7 
2,243 
3,113 
0 
(229)
5,166 
35 
 
Balance, shares at Oct. 02, 2010
 
322 
70 
 
 
 
15 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
Stock-based compensation, value
 
 
 
18 
 
 
71 
 
 
 
Net income attributable to Tyson
750 
 
 
 
750 
 
 
 
 
 
Dividends
 
(49)
(10)
 
(59)
 
 
 
 
 
Redeemable noncontrolling interest accretion
 
 
 
 
(3)
 
 
 
 
 
Hedge accounting
 
 
 
 
 
(17)
 
 
 
 
Investment accounting
 
 
 
 
 
(8)
 
 
 
 
Currency translation adjustments
 
 
 
 
 
(41)
 
 
 
 
Net change in postretirement liabilities
 
 
 
 
 
(13)
 
 
 
 
Purchase of Tyson Class A common stock, shares
 
 
 
 
 
 
12 
 
 
 
Purchase of Tyson Class A common stock, value
 
 
 
 
 
 
(207)
 
 
 
Stock-based compensation, shares
 
 
 
 
 
 
(5)
 
 
 
Net loss attributable to noncontrolling interests
(17)
 
 
 
 
 
 
 
(13)1
 
Contributions by (distributions to) noncontrolling interest
 
 
 
 
 
 
 
 
8 
 
Net foreign currency translation adjustment and other
 
 
 
 
 
 
 
 
(2)
 
Net income
733 
 
 
 
 
 
 
 
 
733 
Other comprehensive income (loss), net of tax
(79)
 
 
 
 
 
 
 
 
(79)
Total Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
654 
Comprehensive Loss attributable to noncontrolling interest
 
 
 
 
 
 
 
 
 
(13)
Total Comprehensive Income (Loss) attributable to Tyson
 
 
 
 
 
 
 
 
 
667 
Balance, value at Oct. 01, 2011
5,685 
32 
7 
2,261 
3,801 
(79)
(365)
5,657 
28 
 
Balance, shares at Oct. 01, 2011
 
322 
70 
 
 
 
22 
 
 
 
Increase (Decrease) in Shareholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
 
Stock-based compensation, value
 
 
 
17 
 
 
60 
 
 
 
Net income attributable to Tyson
583 
 
 
 
583 
 
 
 
 
 
Dividends
 
(47)
(10)
 
(57)
 
 
 
 
 
Redeemable noncontrolling interest accretion
 
 
 
 
0 
 
 
 
 
 
Hedge accounting
 
 
 
 
 
17 
 
 
 
 
Investment accounting
 
 
 
 
 
0 
 
 
 
 
Currency translation adjustments
 
 
 
 
 
3 
 
 
 
 
Net change in postretirement liabilities
 
 
 
 
 
(4)
 
 
 
 
Purchase of Tyson Class A common stock, shares
 
 
 
 
 
 
14 
 
 
 
Purchase of Tyson Class A common stock, value
 
 
 
 
 
 
(264)
 
 
 
Stock-based compensation, shares
 
 
 
 
 
 
(3)
 
 
 
Net loss attributable to noncontrolling interests
(7)
 
 
 
 
 
 
 
(7)1
 
Contributions by (distributions to) noncontrolling interest
 
 
 
 
 
 
 
 
9 
 
Net foreign currency translation adjustment and other
 
 
 
 
 
 
 
 
0 
 
Net income
576 
 
 
 
 
 
 
 
 
576 
Other comprehensive income (loss), net of tax
16 
 
 
 
 
 
 
 
 
16 
Total Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
592 
Comprehensive Loss attributable to noncontrolling interest
 
 
 
 
 
 
 
 
 
(7)
Total Comprehensive Income (Loss) attributable to Tyson
 
 
 
 
 
 
 
 
 
599 
Balance, value at Sep. 29, 2012
$ 6,042 
$ 32 
$ 7 
$ 2,278 
$ 4,327 
$ (63)
$ (569)
$ 6,012 
$ 30 
 
Balance, shares at Sep. 29, 2012
 
322 
70 
 
 
 
33 
 
 
 
Consolidated Statements Of Shareholder's Equity (Parentheticals) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Oct. 1, 2011
Oct. 2, 2010
Statement of Stockholders' Equity [Abstract]
 
 
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest
$ (4)
$ (9)
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Cash Flows From Operating Activities:
 
 
 
Net income
$ 576 
$ 733 
$ 765 
Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
Depreciation
443 
433 
416 
Amortization
56 
73 
81 
Deferred income taxes
140 
86 
18 
Loss on early extinguishment of debt
167 
0 
0 
Impairment of goodwill
0 
0 
29 
Impairment of assets
34 
18 
36 
Other, net
18 
49 
76 
Increase in accounts receivable
(69)
(114)
(79)
Increase in inventories
(259)
(299)
(239)
Increase in accounts payable
106 
152 
101 
Increase (decrease) in income taxes payable/receivable
8 
(73)
(53)
Increase (decrease) in interest payable
5 
19 
(4)
Net change in other current assets and liabilities
(38)
(31)
285 
Cash Provided by Operating Activities
1,187 
1,046 
1,432 
Cash Flows From Investing Activities:
 
 
 
Additions to property, plant and equipment
(690)
(643)
(550)
Purchases of marketable securities
(58)
(146)
(53)
Proceeds from sale of marketable securities
47 
66 
49 
Proceeds from notes receivable
0 
51 
0 
Change in restricted cash to be used for investing activities
0 
0 
43 
Other, net
41 
28 
11 
Cash Used for Investing Activities
(660)
(644)
(500)
Cash Flows From Financing Activities:
 
 
 
Payments on debt
(993)
(500)
(1,034)
Net proceeds from borrowings
1,116 
115 
0 
Purchase of redeemable noncontrolling interest
0 
(66)
0 
Change in restricted cash to be used for financing activities
0 
0 
140 
Purchases of Tyson Class A common stock
(264)
(207)
(48)
Dividends
(57)
(59)
(59)
Other, net
27 
59 
42 
Cash Used for Financing Activities
(171)
(658)
(959)
Effect of Exchange Rate Change on Cash
(1)
(6)
1 
Increase (Decrease) in Cash and Cash Equivalents
355 
(262)
(26)
Cash and Cash Equivalents at Beginning of Year
716 
978 
1,004 
Cash and Cash Equivalents at End of Period
$ 1,071 
$ 716 
$ 978 
Business And Summary Of Significant Accounting Policies
Business And Summary Of Significant Accounting Policies
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business: Tyson Foods, Inc. (collectively, “Company,” “we,” “us” or “our”), founded in 1935 with world headquarters in Springdale, Arkansas, is one of the world’s largest meat protein companies and the second-largest food production company in the Fortune 500. We produce a wide variety of brand name protein-based and prepared food products marketed in the United States and approximately 130 countries around the world.
Consolidation: The consolidated 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.
Fiscal Year: We utilize a 52- or 53-week accounting period ending on the Saturday closest to September 30. The Company’s accounting cycle resulted in a 52-week year for fiscal 2012, 2011 and 2010.
Cash and Cash Equivalents: Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as part of our cash management activity. The carrying values of these assets approximate their fair values. We primarily utilize a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts where funds are moved to, and several zero-balance disbursement accounts for funding payroll, accounts payable, livestock procurement, grower payments, etc. As a result of our cash management system, checks issued, but not presented to the banks for payment, may result in negative book cash balances. These negative book cash balances are included in accounts payable and other current liabilities. At September 29, 2012, and October 1, 2011, checks outstanding in excess of related book cash balances totaled approximately $265 million and $281 million, respectively.
Accounts Receivable: We record accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, level of past due accounts and relationships with and economic status of our customers. At September 29, 2012, and October 1, 2011, our allowance for uncollectible accounts was $33 million and $31 million, respectively. We generally do not have collateral for our receivables, but we do periodically evaluate the credit worthiness of our customers.
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.
 
 
 
in millions

 
2012

 
2011

Processed products:
 
 
 
Weighted-average method – chicken and prepared foods
$
754

 
$
715

First-in, first-out method – beef and pork
611

 
581

Livestock – first-in, first-out method
952

 
928

Supplies and other – weighted-average method
492

 
363

Total inventory
$
2,809

 
$
2,587


Property, Plant and Equipment: Property, plant and equipment are stated at cost and depreciated on a straight-line method, using estimated lives for buildings and leasehold improvements of 10 to 33 years, machinery and equipment of three to 12 years and land improvements and other of three to 20 years. Major repairs and maintenance costs that significantly extend the useful life of the related assets are capitalized. Normal repairs and maintenance costs are charged to operations.
We review the carrying value of long-lived assets at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest and taxes. We measure impairment as the excess of carrying cost over the fair value of an asset. The fair value of an asset is measured using discounted cash flows including market participant assumptions of future operating results and discount rates.
Goodwill and Other Intangible Assets: Goodwill and indefinite life intangible assets are initially recorded at fair value and not amortized, but are reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, the fair value of the reporting unit may be more likely than not less than carrying amount or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test.
The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the quantitative impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied fair value of goodwill exceeds the carrying amount, then goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was determined as the exit price a market participant would pay for the same business). We have elected to make the first day of the fourth quarter the annual impairment assessment date for goodwill and other indefinite life intangible assets.
We estimate the fair value of our reporting units using a discounted cash flow analysis, which uses significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. This analysis requires us to make various judgmental estimates and assumptions about sales, operating margins, growth rates and discount factors and is believed to reflect market participant views which would exist in an exit transaction. Generally, we utilize normalized operating margin assumptions based on future expectations and operating margins historically realized in the reporting units' industries. For the fiscal 2012 impairment test of material reporting units requiring a quantitative test, both our Domestic Chicken and Beef reporting units, which had goodwill at September 29, 2012, totaling $900 million and $563 million, respectively, utilized operating margins in future years in excess of the operating margins realized in the most recent year. We assumed operating margins in future years generally would return to our normalized range, as we believe this is consistent with market participant views in exit transactions. Some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management, including interest rates, cost of capital, tax rates and credit ratings. While we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If our actual results are not consistent with our estimates and assumptions used to calculate fair value, we may be required to perform the second step of the quantitative test in future years, which could result in material impairments of our goodwill.
During fiscal 2012, 2011 and 2010, all of our material reporting units that underwent the quantitative test passed the first step of the goodwill impairment analysis and therefore, the second step was not necessary. In fiscal 2010, we recorded a $29 million full impairment of an immaterial Chicken segment reporting unit's goodwill.
For our other indefinite life intangible assets, a qualitative assessment can also be performed to determine whether the existence of events and circumstances indicates it is more likely than not an intangible asset is impaired. Similar to goodwill, we can also elect to forgo the qualitative test for indefinite life intangible assets and perform the quantitative test. Upon performing the quantitative test, if the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The fair value of trademarks is determined using a royalty rate method based on expected revenues by trademark.
Investments: We have investments in joint ventures and other entities. We use the cost method of accounting when our voting interests are less than 20 percent. We use the equity method of accounting when our voting interests are in excess of 20 percent and we do not have a controlling interest or a variable interest in which we are the primary beneficiary. Investments in joint ventures and other entities are reported in the Consolidated Balance Sheets in Other Assets.
We also have investments in marketable debt securities. We have determined all of our marketable debt securities are available-for-sale investments. These investments are reported at fair value based on quoted market prices as of the balance sheet date, with unrealized gains and losses, net of tax, recorded in other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is recorded in interest income. The cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of debt securities and declines in value judged to be other than temporary are recorded on a net basis in other income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.
Variable Interest Entity: We have an investment in a joint venture, Dynamic Fuels LLC (Dynamic Fuels), in which we have a 50% ownership interest. Dynamic Fuels qualifies as a variable interest entity for which we consolidate as we are the primary beneficiary. 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. At October 1, 2011, Dynamic Fuels had $170 million of total assets, of which $144 million was net property, plant and equipment, and $116 million of total liabilities, of which $100 million was long-term debt.
Accrued Self Insurance: We use a combination of insurance and self-insurance mechanisms in an effort to mitigate the potential liabilities for health and welfare, workers’ compensation, auto liability and general liability risks. Liabilities associated with our risks retained are estimated, in part, by considering claims experience, demographic factors, severity factors and other actuarial assumptions.
Capital Stock: We have two classes of capital stock, Class A Common Stock, $0.10 par value (Class A stock) and Class B Common Stock, $0.10 par value (Class B stock). Holders of Class B stock may convert such stock into Class A stock on a share-for-share basis. Holders of Class B stock are entitled to 10 votes per share, while holders of Class A stock are entitled to one vote per share on matters submitted to shareholders for approval. As of September 29, 2012, Tyson Limited Partnership (the TLP) owned 99.977% of the outstanding shares of Class B stock and the TLP and members of the Tyson family owned, in the aggregate, 2.53% of the outstanding shares of Class A stock, giving them, collectively, control of approximately 71.52% of the total voting power of the outstanding voting 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 the cash dividend paid to holders of Class B stock cannot exceed 90% of the cash dividend simultaneously paid to holders of Class A stock. We pay quarterly cash dividends to Class A and Class B shareholders. We paid Class A dividends per share of $0.16 and Class B dividends per share of $0.144 in each of fiscal years 2012, 2011 and 2010.
The Class B stock is considered a participating security requiring the use of the two-class method for the computation of basic earnings per share. The two-class computation method for each period reflects the cash dividends paid for each class of stock, plus the amount of allocated undistributed earnings (losses) computed using the participation percentage, which reflects the dividend rights of each class of stock. Basic earnings per share were computed using the two-class method for all periods presented. The shares of Class B stock are considered to be participating convertible securities since the shares of Class B stock are convertible on a share-for-share basis into shares of Class A stock. Diluted earnings per share were computed assuming the conversion of the Class B shares into Class A shares as of the beginning of each period.
On May 11, 2011, we announced our Board of Directors reactivated a share repurchase program, which had no activity since fiscal 2005, to repurchase up to the remaining available 22.5 million shares of Class A common stock under the program. In May 2012, our Board of Directors approved an increase of 35 million shares authorized for repurchase under our share repurchase program. As of September 29, 2012, 35.2 million shares remained available for repurchase. 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.
A summary of cumulative share repurchases of our Class A Stock is as follows (in millions):
 
 
September 29, 2012
 
October 1, 2011
 
October 2, 2010
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
12.5

 
$
230

 
9.7

 
$
170

 
—

 
$
—

To fund certain obligations under equity compensation plans
 
1.8

 
34

 
2.0

 
37

 
3.2

 
48

Total share repurchases
 
14.3

 
$
264

 
11.7

 
$
207

 
3.2

 
$
48


Financial Instruments: We purchase certain commodities, such as grains and livestock in the course of normal operations. As part of our commodity risk management activities, we use derivative financial instruments, primarily futures and options, to reduce our exposure to various market risks related to these purchases, as well as to changes in foreign currency exchange rates. Contract terms of a financial instrument qualifying as a hedge instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. Contracts designated and highly effective at meeting risk reduction and correlation criteria are recorded using hedge accounting. If a derivative instrument is accounted for as a hedge, changes in the fair value of the instrument will be offset either against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is immediately recognized in earnings as a component of cost of sales. Instruments we hold as part of our risk management activities that do not meet the criteria for hedge accounting are marked to fair value with unrealized gains or losses reported currently in earnings. Changes in market value of derivatives used in our risk management activities relating to forward sales contracts are recorded in sales, while changes surrounding inventories on hand or anticipated purchases of inventories or supplies are recorded in cost of sales. We generally do not hedge anticipated transactions beyond 18 months.
Revenue Recognition: We recognize revenue when title and risk of loss are transferred to customers, which is generally on delivery based on terms of sale. Revenue is recognized as the net amount estimated to be received after deducting estimated amounts for discounts, trade allowances and product terms.
Litigation Reserves: There are a variety of legal proceedings pending or threatened against us. Accruals are recorded when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated based on current law, progress of each case, opinions and views of legal counsel and other advisers, our experience in similar matters and intended response to the litigation. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment efforts progress or additional information becomes available. We expense amounts for administering or litigating claims as incurred. Accruals for legal proceedings are included in Other current liabilities in the Consolidated Balance Sheets.
Freight Expense: Freight expense associated with products shipped to customers is recognized in cost of sales.
Advertising and Promotion Expenses: Advertising and promotion expenses are charged to operations in the period incurred. Customer incentive and trade promotion activities are recorded as a reduction to sales based on amounts estimated as being due to customers, based primarily on historical utilization and redemption rates, while other advertising and promotional activities are recorded as selling, general and administrative expenses. Advertising and promotion expenses for fiscal 2012, 2011 and 2010 were $496 million, $552 million and $505 million, respectively.
Research and Development: Research and development costs are expensed as incurred. Research and development costs totaled $43 million, $42 million and $38 million in fiscal 2012, 2011 and 2010, respectively.
Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements:
In June 2011, the Financial Accounting Standards Board (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 will adopt this guidance in the first quarter of fiscal 2013. Upon adoption, we will be required to present comprehensive income as part of our consolidated statements of income, or in a separate financial statement. Currently, we present such information in our notes to the consolidated financial statements. Other than changing the presentation of comprehensive income, we do not expect the adoption will have a significant impact on our consolidated financial statements.
In December 2011, the FASB issued guidance enhancing disclosures related to offsetting of certain assets and liabilities. This guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We do not expect the adoption will have a significant impact on our consolidated financial statements.
Changes In Accounting Principles
Changes In Accounting Principles
CHANGES IN ACCOUNTING PRINCIPLES
In May 2011, the FASB clarified the guidance around fair value measurements and disclosures. This guidance is effective for interim and annual periods beginning after December 15, 2011. We adopted this guidance in the second quarter of fiscal 2012. The adoption did not have a significant impact on our consolidated financial statements.
In September 2011, the FASB issued guidance amending the way companies test for goodwill impairment, allowing the option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative impairment test. This guidance is effective for interim and annual periods beginning after December 15, 2011, with early adoption permitted. We adopted the guidance in connection with our annual goodwill impairment test in the fourth quarter of fiscal 2012. The adoption did not have a significant impact on our consolidated financial statements.
In July 2012, the FASB issued guidance amending the way companies test for indefinite-lived intangible asset impairment, allowing the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. This guidance is effective for interim and annual periods beginning after September 15, 2012, with early adoption permitted. We adopted the guidance in connection with our annual indefinite-lived intangible assets impairment test in the fourth quarter of fiscal 2012. The adoption did not have a significant impact on our consolidated financial statements.
Acquisitions
Acquisitions
ACQUISITIONS
In August 2009, we completed the establishment of related joint ventures in China referred to as Shandong Tyson Xinchang Foods (currently referred to as Shandong Tyson). The aggregate purchase price for our 60% equity interest was $21 million, which excludes $93 million of cash transferred to the joint venture for future capital needs. The purchase price included $29 million allocated to Intangible Assets and $19 million allocated to Goodwill, as well as the assumption of $76 million of Current and Long-Term Debt. In May 2011, the minority partner exercised put options requiring us to purchase its entire 40% equity interest. In August 2011, the transaction closed for $66 million.
In October 2008, we acquired three vertically integrated poultry companies in southern Brazil: Macedo Agroindustrial, Avicola Itaiopolis and Frangobras. The aggregate purchase price was $67 million. In addition, we had $15 million of contingent purchase price based on production volumes. The purchase price included $23 million allocated to Goodwill and $19 million allocated to Intangible Assets. Through fiscal 2012, we have paid $10 million of the contingent purchase price.
Property, Plant And Equipment
Property, Plant And Equipment
PROPERTY, PLANT AND EQUIPMENT
Major categories of property, plant and equipment and accumulated depreciation at September 29, 2012, and October 1, 2011:
 
in millions
 
 
2012

 
2011

Land
$
101

 
$
95

Building and leasehold improvements
2,868

 
2,698

Machinery and equipment
5,208

 
4,897

Land improvements and other
408

 
386

Buildings and equipment under construction
298

 
446

 
8,883

 
8,522

Less accumulated depreciation
4,861

 
4,699

Net property, plant and equipment
$
4,022

 
$
3,823


Approximately $433 million will be required to complete buildings and equipment under construction at September 29, 2012.
Goodwill And Other Intangible Assets
Goodwill And Other Intangible Assets
GOODWILL AND OTHER INTANGIBLE ASSETS
The following table reflects goodwill activity for fiscal 2012 and 2011:
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Consolidated

Balance at October 2, 2010
 
 
 
 
 
 
 
 
 
Goodwill
$
979

 
$
1,123

 
$
317

 
$
63

 
$
2,482

Accumulated impairment losses
(29
)
 
(560
)
 
—

 
—

 
(589
)
 
950

 
563

 
317

 
63

 
1,893

Fiscal 2011 Activity:
 
 
 
 
 
 
 
 
 
Impairment losses
—

 
—

 
—

 
—

 
—

Currency translation and other
(1
)
 
—

 
—

 
—

 
(1
)
Balance at October 1, 2011
 
 
 
 
 
 
 
 
 
Goodwill
$
978

 
$
1,123

 
$
317

 
$
63

 
$
2,481

Accumulated impairment losses
(29
)
 
(560
)
 
—

 
—

 
(589
)
 
$
949

 
$
563

 
$
317

 
$
63

 
$
1,892

 
 
 
 
 
 
 
 
 
 
Fiscal 2012 Activity:
 
 
 
 
 
 
 
 
 
Impairment losses
—

 
—

 
—

 
—

 
—

Currency translation and other
(1
)
 
—

 
—

 
—

 
(1
)
Balance at September 29, 2012
 
 
 
 
 
 
 
 
 
Goodwill
977

 
1,123

 
317

 
63

 
2,480

Accumulated impairment losses
(29
)
 
(560
)
 
—

 
—

 
(589
)
 
$
948

 
$
563

 
$
317

 
$
63

 
$
1,891


Other intangible assets by type at September 29, 2012, and October 1, 2011:
in millions
 
 
2012

 
2011

Gross Carrying Value:
 
 
 
Trademarks
$
56

 
$
56

Patents, intellectual property and other
142

 
143

Land use rights
21

 
25

Less Accumulated Amortization
90

 
75

Total Intangible Assets
$
129

 
$
149


Beginning with the date benefits are realized, other intangible assets are amortized using the straight-line method over their estimated period of benefit of three to 30 years. Amortization expense of $16 million, $18 million and $19 million was recognized during fiscal 2012, 2011 and 2010, respectively. We estimate amortization expense on intangible assets for the next five fiscal years subsequent to September 29, 2012, will be: 2013 - $16 million; 2014 - $15 million; 2015 - $15 million; 2016 - $14 million; 2017 - $12 million.
Other Current Liabilities
Other Current Liabilities
OTHER CURRENT LIABILITIES
Other current liabilities at September 29, 2012, and October 1, 2011, include:
 
in millions
 
 
2012

 
2011

Accrued salaries, wages and benefits
$
382

 
$
407

Self-insurance reserves
274

 
298

Other
287

 
335

Total other current liabilities
$
943

 
$
1,040

Debt
Debt
DEBT
The major components of debt are as follows (in millions):
 
2012

 
2011

Revolving credit facility
$
—

 
$
—

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

 
458

10.50% Senior notes due March 2014 (2014 Notes)
—

 
810

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

 
—

7.00% Notes due January 2028
18

 
18

Discount on senior notes
(28
)
 
(76
)
GO Zone tax-exempt bonds due October 2033 (0.20% at 9/29/2012)
100

 
100

Other
126

 
114

Total debt
2,432

 
2,182

Less current debt
515

 
70

Total long-term debt
$
1,917

 
$
2,112


Annual maturities of debt for the five fiscal years subsequent to September 29, 2012, are: 2013 - $537 million; 2014 - $22 million; 2015 - $13 million; 2016 - $646 million; 2017 - $4 million.
Revolving Credit Facility
In August 2012, we entered into a new $1.0 billion revolving credit facility that supports short-term funding needs and letters of credit, which replaced our revolving credit facility scheduled to expire in February 2016. 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 September 29, 2012, was $962 million. At September 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. The conversion rate initially is 59.1935 shares of Class A stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of $16.89 per share of Class A stock. The 2013 Notes may be converted before the close of business on July 12, 2013, only under the following circumstances:
•
during any fiscal quarter after December 27, 2008, if the last reported sale price of our Class A stock for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the preceding fiscal quarter is at least 130% of the applicable conversion price on each applicable trading day (which would currently require our shares to trade at or above $21.96); or
•
during the five business days after any 10 consecutive trading days (measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A stock and the applicable conversion rate on each such day; or
•
upon the occurrence of specified corporate events as defined in the supplemental indenture.
On and after July 15, 2013, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, we will deliver cash up to the aggregate principal amount of the 2013 Notes to be converted and shares of our Class A stock in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the 2013 Notes being converted. As of September 29, 2012, none of the conditions permitting conversion of the 2013 Notes had been satisfied. However, due to the early conversion option regardless of conversion conditions beginning in July 2013, we have recorded the 2013 Notes balance, net of remaining discount, as Current debt in our Consolidated Balance Sheets at September 29, 2012.
The 2013 Notes were originally accounted for as a combined instrument because the conversion feature did not meet the requirements to be accounted for separately as a derivative financial instrument. However, we adopted new accounting guidance in the first quarter of fiscal 2010 and applied it retrospectively to all periods presented. This new accounting guidance required us to separately account for the liability and equity conversion features. Upon retrospective adoption, our effective interest rate on the 2013 Notes was determined to be 8.26%, which resulted in the recognition of a $92 million discount to these notes with the offsetting after tax amount of $56 million recorded to capital in excess of par value. This discount is being accreted over the five-year term of the convertible notes at the effective interest rate.
In connection with the issuance of the 2013 Notes, we entered into separate convertible note hedge transactions with respect to our Class A stock to minimize the potential economic dilution upon conversion of the 2013 Notes. We also entered into separate warrant transactions. We recorded the purchase of the note hedge transactions as a reduction to capital in excess of par value, net of $36 million pertaining to the related deferred tax asset, and we recorded the proceeds of the warrant transactions as an increase to capital in excess of par value. Subsequent changes in fair value of these instruments are not recognized in the financial statements as long as the instruments continue to meet the criteria for equity classification.
We purchased call options in private transactions for $94 million that permit us to acquire up to approximately 27 million shares of our Class A stock at an initial strike price of $16.89 per share, subject to adjustment. The call options allow us to acquire a number of shares of our Class A stock initially equal to the number of shares of Class A stock issuable to the holders of the 2013 Notes upon conversion. These call options will terminate upon the maturity of the 2013 Notes.
We sold warrants in private transactions for total proceeds of $44 million. The warrants permit the purchasers to acquire up to approximately 27 million shares of our Class A stock at an initial exercise price of $22.31 per share, subject to adjustment. The warrants are exercisable on various dates from January 2014 through March 2014.
The maximum amount of shares that may be issued to satisfy the conversion of the 2013 Notes is limited to 35.9 million shares. However, the convertible note hedge and warrant transactions, in effect, increase the initial conversion price of the 2013 Notes from $16.89 per share to $22.31 per share, thus reducing the potential future economic dilution associated with conversion of the 2013 Notes. If our share price is below $22.31 upon conversion of the 2013 Notes, there is no economic net share impact. Upon conversion, a 10% increase in our share price above the $22.31 conversion price would result in the issuance of 2.5 million incremental shares. The 2013 Notes and the warrants could have a dilutive effect on our earnings per share to the extent the price of our Class A stock during a given measurement period exceeds the respective exercise prices of those instruments. The call options are excluded from the calculation of diluted earnings per share as their impact is anti-dilutive.
2014 Notes
In March 2009, we issued $810 million of senior unsecured notes, which were scheduled to mature in March 2014. The 2014 Notes carried a 10.50% interest rate, with interest payments due semi-annually on March 1 and September 1. These were issued at an original issue discount of $59 million, based on an issue price of 92.756% of face value. The 2014 Notes were fully and unconditionally guaranteed by substantially all of our domestic subsidiaries.
In June 2012, we commenced a cash tender offer to purchase any and all of the outstanding 2014 Notes. Upon completion of the tender offer, we repurchased $790 million principal amount of the 2014 Notes. We incurred a loss of $167 million related to the early extinguishment of the 2014 Notes, which was recorded in Interest expense in the Consolidated Statements of Income for fiscal 2012.
Subsequent to the settlement of the tender offer, we called for redemption the remaining aggregate principal amount of the 2014 Notes not validly tendered. In July 2012, we redeemed all of the remaining 2014 Notes.
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 August 19, 2010, S&P upgraded the credit rating of these notes from "BB" to "BB+." On September 2, 2010, Moody’s upgraded our credit rating from "Ba3" to "Ba2." These upgrades decreased the interest rate on the 2016 Notes from 7.85% to 7.35%, effective beginning with the six-month interest payment due October 1, 2010.
On February 24, 2011, S&P upgraded the credit rating of these notes from "BB+" to "BBB-." On March 29, 2011, Moody’s upgraded our credit rating from "Ba2" to "Ba1." These upgrades decreased the interest rate on the 2016 Notes from 7.35% to 6.85%, effective beginning with the six-month interest payment due April 1, 2011.
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.
2022 Notes
In June 2012, we issued $1.0 billion of senior unsecured notes, which will mature in June 2022. The 2022 Notes carry a 4.50% interest rate, with interest payments due semi-annually on June 15 and December 15. After the original issue discount of $5 million, based on an issue price of 99.458%, we received net proceeds of $995 million. In addition, we incurred offering expenses of $9 million. We used the net proceeds towards the repurchase and redemption of the 2014 Notes, including the payments of accrued interest and related premiums, and general corporate purposes.
GO Zone Tax-Exempt Bonds
In October 2008, Dynamic Fuels received $100 million in proceeds from the sale of Gulf Opportunity Zone tax-exempt bonds made available by the federal government to the regions affected by Hurricanes Katrina and Rita in 2005. These floating rate bonds are due October 1, 2033. In November 2008, we entered into an interest rate swap related to these bonds to mitigate our interest rate risk on a portion of the bonds for five years. We also issued a letter of credit as a guarantee for the entire bond issuance.
Debt Covenants
Our revolving credit facility contains affirmative and negative covenants that, among other things, may limit or restrict our ability to: create liens and encumbrances; incur debt; merge, dissolve, liquidate or consolidate; 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 September 29, 2012.
Income Taxes
Income Taxes
INCOME TAXES
Detail of the provision for income taxes from continuing operations consists of the following:
 
 
 
 
 
in millions  

 
2012

 
2011

 
2010

Federal
$
310

 
$
320

 
$
374

State
22

 
21

 
44

Foreign
19

 
—

 
20

 
$
351

 
$
341

 
$
438

 
 
 
 
 
 
Current
$
211

 
$
255

 
$
420

Deferred
140

 
86

 
18

 
$
351

 
$
341

 
$
438


The reasons for the difference between the statutory federal income tax rate and our effective income tax rate from continuing operations are as follows:
 
2012

 
2011

 
2010

Federal income tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes
1.6

 
1.6

 
2.4

Unrecognized tax benefits, net
0.6

 
(1.7
)
 
(1.4
)
General business credits
(0.8
)
 
(0.9
)
 
(0.7
)
Domestic production deduction
(1.9
)
 
(2.3
)
 
(2.0
)
Foreign rate differences and valuation allowances
3.3

 
0.2

 
2.3

Other
0.1

 
(0.1
)
 
0.8

 
37.9
 %
 
31.8
 %
 
36.4
 %

During fiscal 2012, foreign tax rates different than the statutory federal rate increased the effective tax rate 2.2%. Tax expense was also impacted by foreign valuation allowances, which increased tax expense by $11 million, as well as the domestic production deduction, which decreased tax expense by $17 million.
During fiscal 2011, tax expense was impacted by the domestic production deduction, adjustments to reserves for uncertain tax positions due to domestic and foreign tax audit activities, and estimated general business credits, which decreased tax expense by $25 million, $19 million and $9 million, respectively.
During fiscal 2010, tax expense was impacted by the domestic production deduction and reductions in unrecognized tax benefits, which decreased tax expense by $24 million and $16 million, respectively.
Approximately $36 million of loss, $32 million of income and $27 million of loss from continuing operations before income taxes for fiscal 2012, 2011 and 2010, respectively, were from operations based in countries other than the United States.
We recognize deferred income taxes for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
The tax effects of major items recorded as deferred tax assets and liabilities are as follows:
 
 
 
 
 
 
 
in millions

 
2012
 
2011
 
Deferred Tax
 
Deferred Tax
 
Assets

 
Liabilities

 
Assets

 
Liabilities

Property, plant and equipment
$
—

 
$
542

 
$
—

 
$
401

Suspended taxes from conversion to accrual method
—

 
76

 
—

 
81

Intangible assets
—

 
35

 
—

 
35

Inventory
9

 
105

 
9

 
113

Accrued expenses
193

 
—

 
196

 
—

Net operating loss and other carryforwards
101

 
—

 
97

 
—

Insurance reserves
21

 
—

 
23

 
—

Other
69

 
90

 
80

 
68

 
$
393

 
$
848

 
$
405

 
$
698

Valuation allowance
$
(78
)
 
 
 
$
(92
)
 
 
Net deferred tax liability
 
 
$
533

 
 
 
$
385


We record deferred tax amounts in Other current assets and in Deferred Income Taxes on the Consolidated Balance Sheets.
The deferred tax liability for property, plant and equipment increased significantly in fiscal 2012 due primarily to increased capital expenditures along with bonus depreciation for federal income tax purposes. The deferred tax liability for suspended taxes from conversion to accrual method represents the 1987 change from the cash to accrual method of accounting and will be recognized by 2027.
At September 29, 2012, our gross state tax net operating loss carryforwards approximated $580 million and expire in fiscal years 2013 through 2032. Gross foreign net operating loss carryforwards approximated $215 million, of which $112 million expire in fiscal years 2013 through 2022, and the remainder has no expiration. We also have tax credit carryforwards of approximately $22 million that expire in fiscal years 2013 through 2026.
We have accumulated undistributed earnings of foreign subsidiaries aggregating approximately $230 million and $339 million at September 29, 2012, and October 1, 2011, respectively. These earnings are expected to be indefinitely reinvested outside of the United States. If those earnings were distributed in the form of dividends or otherwise, we would be subject to federal income taxes (subject to an adjustment for foreign tax credits), state income taxes and withholding taxes payable to the various foreign countries. It is not currently practicable to estimate the tax liability that might be payable on the repatriation of these foreign earnings.
The following table summarizes the activity related to our gross unrecognized tax benefits at September 29, 2012, October 1, 2011, and October 2, 2010:
 
 
 
 
 
in millions

 
2012

 
2011

 
2010

Balance as of the beginning of the year
$
174

 
$
184

 
$
233

Increases related to current year tax positions
3

 
4

 
4

Increases related to prior year tax positions
5

 
21

 
11

Reductions related to prior year tax positions
(10
)
 
(24
)
 
(35
)
Reductions related to settlements
(1
)
 
(9
)
 
(25
)
Reductions related to expirations of statute of limitations
(3
)
 
(2
)
 
(4
)
Balance as of the end of the year
$
168

 
$
174

 
$
184


The amount of unrecognized tax benefits, if recognized, that would impact our effective tax rate was $154 million and $155 million at September 29, 2012, and October 1, 2011, respectively. We classify interest and penalties on unrecognized tax benefits as income tax expense. At September 29, 2012, and October 1, 2011, before tax benefits, we had $64 million and $58 million, respectively, of accrued interest and penalties on unrecognized tax benefits.
As of September 29, 2012, we are subject to income tax examinations for U.S. federal income taxes for fiscal years 2003 through 2011. We are also subject to income tax examinations by major state and foreign jurisdictions for fiscal years 2001 through 2011. During fiscal 2013, tax audit resolutions could potentially change our unrecognized tax benefits by approximately $20 million because tax positions are sustained on audit.
Other Income And Charges
Other Income And Charges
OTHER INCOME AND CHARGES
During fiscal 2012, we recorded $16 million of equity earnings in joint ventures and $4 million in net foreign currency exchange gains, which were recorded in the Consolidated Statements of Income in Other, net.
During fiscal 2011, we recorded an $11 million gain related to a sale of interests in an equity method investment. This gain was recorded in the Consolidated Statements of Income in Other, net.
During fiscal 2010, we recognized $38 million of insurance proceeds received related to losses incurred from Hurricane Katrina in 2005. These proceeds are reflected in the Chicken segment’s Operating Income and included in the Consolidated Statements of Income in Cost of Sales. Also in fiscal 2010, we recorded a $12 million impairment charge related to an equity method investment. This charge is included in the Consolidated Statements of Income in Other, net.
Earnings Per Share
Earnings Per Share
EARNINGS PER SHARE
The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:
 
in millions, except per share data
 
 
2012

 
2011

 
2010

Numerator:
 
 
 
 
 
Net income
$
576

 
$
733

 
$
765

Less: Net loss attributable to noncontrolling interest
(7
)
 
(17
)
 
(15
)
Net income attributable to Tyson
583

 
750

 
780

Less Dividends:
 
 
 
 
 
Class A ($0.16/share)
47

 
49

 
49

Class B ($0.144/share)
10

 
10

 
10

Undistributed earnings
$
526

 
$
691

 
$
721

 
 
 
 
 
 
Class A undistributed earnings
$
433

 
$
572

 
$
597

Class B undistributed earnings
93

 
119

 
124

Total undistributed earnings
$
526

 
$
691

 
$
721

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Class A weighted average shares
293

 
303

 
303

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

 
70

 
70

Effect of dilutive securities:
 
 
 
 
 
Stock options and restricted stock
4

 
6

 
6

Convertible 2013 Notes
3

 
1

 
—

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
370

 
380

 
379

 
 
 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
 
 
Class A Basic
$
1.64

 
$
2.04

 
$
2.13

Class B Basic
$
1.48

 
$
1.84

 
$
1.91

Diluted
$
1.58

 
$
1.97

 
$
2.06


Approximately 4 million, 4 million and 5 million in fiscal 2012, 2011 and 2010, respectively, of our stock-based compensation shares were antidilutive and 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 September 29, 2012.
We recognize all derivative instruments as either assets or liabilities at fair value in the Consolidated 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 of forecasted purchases (i.e., livestock).
•
Net Investment Hedges – include certain foreign currency forward contracts of permanently invested capital in certain foreign subsidiaries.
Cash flow hedges
Derivative instruments, such as futures and options, are designated as hedges against changes in the amount of future cash flows related to procurement of certain commodities utilized in our production processes. We do not purchase forward and option commodity contracts in excess of our physical consumption requirements and generally do not hedge forecasted transactions beyond 18 months. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchase of those commodities. For the derivative instruments we designate and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses representing hedge ineffectiveness are recognized in earnings in the current period. Ineffectiveness related to our cash flow hedges was not significant during fiscal 2012, 2011 and 2010.
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
 
September 29, 2012

 
October 1, 2011

Commodity:
 
 
 
 
 
 
Corn
 
Bushels
 
12

 
6

Soy Meal
 
Tons
 
164,700

 
82,300

Foreign Currency
 
United States dollar
 
$
80

 
$
75


As of September 29, 2012, the net amounts expected to be reclassified into earnings within the next 12 months are pretax gains of $18 million related to grain and pretax losses of $2 million related to foreign currency. During fiscal 2012, 2011 and 2010, 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 Statements of Income (in millions):
 
Gain/(Loss)
Recognized in OCI
on Derivatives
 
 
Consolidated
Statements of Income
Classification
 
Gain/(Loss)
Reclassified from
OCI to Earnings
 
 
2012

 
2011

 
2010

 
 
 
2012

 
2011

 
2010

Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
24

 
$
(5
)
 
$
6

 
Cost of Sales
 
$
(16
)
 
$
25

 
$
(6
)
Foreign exchange contracts
(8
)
 
9

 
1

 
Other Income/Expense
 
4

 
—

 
1

Total
$
16

 
$
4

 
$
7

 
 
 
$
(12
)
 
$
25

 
$
(5
)

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
 
September 29, 2012

 
October 1, 2011

Commodity:
 
 
 
 
 
 
Live Cattle
 
Pounds
 
232

 
318

Lean Hogs
 
Pounds
 
239

 
601


For these derivative instruments we designate and qualify as a fair value hedge, the gain or loss on the derivative, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in earnings in the same period. We include the gain or loss on the hedged items (i.e., livestock purchase firm commitments) in the same line item, Cost of Sales, as the offsetting gain or loss on the related livestock forward position.
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
2012

 
2011

 
2010

Gain/(Loss) on forwards
 
Cost of Sales
 
$
47

 
$
(78
)
 
$
(58
)
Gain/(Loss) on purchase contract
 
Cost of Sales
 
(47
)
 
78

 
58


Ineffectiveness related to our fair value hedges was not significant during fiscal 2012, 2011 and 2010.
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 Statements of Income during the period of change. Ineffectiveness related to our foreign net investment hedges was not significant during fiscal 2012, 2011 and 2010. At September 29, 2012, and October 1, 2011, we had $27 million and $35 million, respectively, 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 Statements of Income (in millions):
 
Gain/(Loss)
Recognized in OCI
on Derivatives
 
 
Consolidated
Statements of Income
Classification
 
Gain/(Loss)
Reclassified from
OCI to Earnings
 
 
2012

 
2011

 
2010

 
 
 
2012

 
2011

 
2010

Net Investment Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
(2
)
 
$
(2
)
 
$
(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 impacts.
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
 
September 29, 2012

 
October 1, 2011

Commodity:
 
 
 
 
 
 
Corn
 
Bushels
 
19

 
17

Soy Meal
 
Tons
 
1,200

 
174,600

Soy Oil
 
Pounds
 
17

 
13

Live Cattle
 
Pounds
 
68

 
72

Lean Hogs
 
Pounds
 
108

 
19

Foreign Currency
 
United States dollars
 
$
165

 
$
110

Interest Rate
 
Average monthly notional debt
 
$
27

 
$
39


The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Statements of Income (in millions):
 
 
 
Consolidated
Statements of Income
Classification
 
Gain/(Loss)
Recognized
in Earnings
 
 
 
 
 
2012

 
2011

 
2010

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
Sales
 
$
(10
)
 
$
20

 
$
27

Commodity contracts
 
Cost of Sales
 
51

 
(2
)
 
(20
)
Foreign exchange contracts
 
Other Income/Expense
 
—

 
(3
)
 
(5
)
Interest rate contracts
 
Interest Expense
 
—

 
—

 
1

Total
 
 
 
$
41

 
$
15

 
$
3


The following table sets forth the fair value of all derivative instruments outstanding in the Consolidated Balance Sheets (in millions):
 
Fair Value
 
2012

 
2011

Derivative Assets:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
32

 
$
3

Foreign exchange contracts
—

 
12

Total derivative assets – designated
32

 
15

 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
21

 
21

Foreign exchange contracts
1

 
5

Total derivative assets – not designated
22

 
26

 
 
 
 
Total derivative assets
$
54

 
$
41

Derivative Liabilities:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
6

 
$
41

Foreign exchange contracts
1

 
—

Total derivative liabilities – designated
7

 
41

 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
96

 
121

Foreign exchange contracts
2

 
1

Interest rate contracts
—

 
2

Total derivative liabilities – not designated
98

 
124

 
 
 
 
Total derivative liabilities
$
105

 
$
165


Our derivative assets and liabilities are presented in our Consolidated 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 12: Fair Value Measurements for a reconciliation to amounts reported in the Consolidated 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):
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

 
 
 
 
 
 
 
 
 
 
October 1, 2011
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
24

 
$
—

 
$
(21
)
 
$
3

Foreign Exchange Forward Contracts
—

 
17

 
—

 
(2
)
 
15

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Debt securities
—

 
34

 
83

 
—

 
117

Equity securities
7

 
—

 
—

 
—

 
7

Deferred Compensation Assets
28

 
122

 
—

 
—

 
150

Total Assets
$
35

 
$
197

 
$
83

 
$
(23
)
 
$
292

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
162

 
$
—

 
$
(135
)
 
$
27

Foreign Exchange Forward Contracts
—

 
1

 
—

 
(1
)
 
—

Interest Rate Swap
—

 
2

 
—

 
—

 
2

Total Liabilities
$
—

 
$
165

 
$
—

 
$
(136
)
 
$
29

(a)
Our derivative assets and liabilities are presented in our Consolidated 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 September 29, 2012, and October 1, 2011, we had posted with various counterparties $59 million and $113 million, respectively, of cash collateral and held no cash collateral.
The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions):
 
September 29, 2012
 
October 1, 2011
Balance at beginning of year
$
83

 
$
73

Total realized and unrealized gains (losses):
 
 
 
Included in earnings
1

 
—

Included in other comprehensive income (loss)
—

 
(1
)
Purchases
28

 
31

Issuances
—

 
—

Settlements
(26
)
 
(20
)
Balance at end of year
$
86

 
$
83

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

 
$
—


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 11: 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 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 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)
September 29, 2012
 
October 1, 2011
 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
 
 
Debt Securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and Agency
$
26

 
$
27

 
$
1

 
$
33

 
$
34

 
$
1

Corporate and Asset-Backed (a)
64

 
66

 
2

 
54

 
56

 
2

Redeemable Preferred Stock
20

 
20

 
—

 
27

 
27

 
—

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock and Warrants
9

 
7

 
(2
)
 
9

 
7

 
(2
)
 
(a)
At September 29, 2012, and October 1, 2011, the amortized cost basis for Corporate and Asset-Backed debt securities had been reduced by accumulated other than temporary impairments of $2 million and $3 million, respectively.
Unrealized holding gains (losses), net of tax, are excluded from earnings and reported in OCI until the security is settled or sold. On a quarterly basis, we evaluate whether losses related to our available-for-sale securities are temporary in nature. Losses on equity securities are recognized in earnings if the decline in value is judged to be other than temporary. If losses related to our debt securities are determined to be other than temporary, the loss would be recognized in earnings if we intend, or more likely than not will be required, to sell the security prior to recovery. For debt securities in which we have the intent and ability to hold until maturity, losses determined to be other than temporary would remain in OCI, other than expected credit losses which are recognized in earnings. We consider many factors in determining whether a loss is temporary, including the length of time and extent to which the fair value has been below cost, the financial condition and near-term prospects of the issuer and our ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery. During fiscal 2012, 2011 and 2010, we recognized no other than temporary impairments in earnings. No other than temporary losses were deferred in OCI as of September 29, 2012, and October 1, 2011.
Deferred Compensation Assets: We maintain non-qualified deferred compensation plans for certain executives and other highly compensated employees. Investments are maintained within a trust and include money market funds, mutual funds and life insurance policies. The cash surrender value of the life insurance policies is invested primarily in mutual funds. The investments are recorded at fair value based on quoted market prices and are included in Other Assets in the Consolidated 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. During fiscal 2010, we recorded a $29 million charge to fully impair an immaterial Chicken segment reporting unit’s goodwill. We utilized a discounted cash flow analysis that incorporated unobservable Level 3 inputs. We did not have any other significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.
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):
 
September 29, 2012
 
October 1, 2011
 
Fair
Value

 
Carrying
Value

 
Fair
Value

 
Carrying
Value

Total Debt
$
2,596

 
$
2,432

 
$
2,334

 
$
2,182


Concentrations of Credit Risk
Our financial instruments exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Our cash equivalents are in high quality securities placed with major banks and financial institutions. Concentrations of credit risk with respect to receivables are limited due to the large number of customers and their dispersion across geographic areas. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral. At September 29, 2012, and October 1, 2011, 17.1% and 16.5%, respectively, of our net accounts receivable balance was due from Wal-Mart Stores, Inc. No other single customer or customer group represented greater than 10% of net accounts receivable.
Stock-Based Compensation
Stock-Based Compensation
STOCK-BASED COMPENSATION
We issue shares under our stock-based compensation plans by issuing Class A stock from treasury. The total number of shares available for future grant under the Tyson Foods, Inc. 2000 Stock Incentive Plan (Incentive Plan) was 10,795,188 at September 29, 2012.
Stock Options
Shareholders approved the Incentive Plan in January 2001. The Incentive Plan is administered by the Compensation Committee of the Board of Directors (Compensation Committee). The Incentive Plan includes provisions for granting incentive stock options for shares of Class A stock at a price not less than the fair value at the date of grant. Nonqualified stock options may be granted at a price equal to, less than or more than the fair value of Class A stock on the date the option is granted. Stock options under the Incentive Plan generally become exercisable ratably over three years from the date of grant and must be exercised within 10 years from the date of grant. Our policy is to recognize compensation expense on a straight-line basis over the requisite service period for the entire award.
 
Shares Under
Option

 
Weighted
Average Exercise
Price Per Share

 
Weighted Average
Remaining
Contractual Life
(in Years)
 
Aggregate
Intrinsic Value
(in millions)

Outstanding, October 1, 2011
18,255,221

 
$
13.46

 
 
 
 
Exercised
(2,776,130
)
 
12.66

 
 
 
 
Canceled
(365,971
)
 
15.25

 
 
 
 
Granted
3,954,240

 
19.63

 
 
 
 
Outstanding, September 29, 2012
19,067,360

 
14.82

 
6.0
 
$
38

 
 
 
 
 
 
 
 
Exercisable, September 29, 2012
10,540,898

 
$
14.00

 
4.4
 
$
22


We generally grant stock options once a year; however, we granted stock options twice during fiscal 2010. The weighted average grant-date fair value of options granted in fiscal 2012, 2011 and 2010 was $6.99, $6.19 and $4.76, respectively. The fair value of each option grant is established on the date of grant using a binomial lattice method. We use historical volatility for a period of time comparable to the expected life of the option to determine volatility assumptions. Expected life is calculated based on the contractual term of each grant and takes into account the historical exercise and termination behavior of participants. Risk-free interest rates are based on the five-year Treasury bond rate. Assumptions as of the grant date used in the fair value calculation of each year’s grants are outlined in the following table.
 
2012

 
2011

 
2010

Expected life (in years)
6.7

 
6.7

 
6.5

Risk-free interest rate
0.9
%
 
1.5
%
 
1.2
%
Expected volatility
36.6
%
 
38.8
%
 
40.4
%
Expected dividend yield
1.0
%
 
1.0
%
 
1.3
%

We recognized stock-based compensation expense related to stock options, net of income taxes, of $15 million, $12 million and $11 million for fiscal 2012, 2011 and 2010, respectively. The related tax benefit for fiscal 2012, 2011 and 2010 was $10 million, $7 million and $7 million, respectively. We had 3.4 million, 3.8 million and 2.2 million options vest in fiscal 2012, 2011 and 2010, respectively, with a grant date fair value of $17 million, $16 million and $13 million, respectively.
In fiscal 2012, 2011 and 2010, we received cash of $34 million, $51 million and $31 million, respectively, for the exercise of stock options. Shares are issued from treasury for stock option exercises. The related tax benefit realized from stock options exercised during fiscal 2012, 2011 and 2010, was $7 million, $10 million and $5 million, respectively. The total intrinsic value of options exercised in fiscal 2012, 2011 and 2010, was $21 million, $26 million and $12 million, respectively. Cash flows resulting from tax deductions in excess of the compensation cost of those options (excess tax deductions) are classified as financing cash flows. We realized $3 million, $5 million and $3 million in excess tax deductions during fiscal 2012, 2011 and 2010, respectively. As of September 29, 2012, we had $27 million of total unrecognized compensation cost related to stock option plans that will be recognized over a weighted average period of 1.1 years.
Restricted Stock
We issue restricted stock at the market value as of the date of grant, with restrictions expiring over periods through 2015. Unearned compensation is recognized over the vesting period for the particular grant using a straight-line method.
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

 
Weighted Average
Remaining
Contractual Life
(in Years)
 
Aggregate
Intrinsic Value
(in millions)

Nonvested, October 1, 2011
2,970,302

 
$
14.70

 
 
 
 
Granted
639,421

 
17.73

 
 
 
 
Dividends
20,587

 
18.79

 
 
 
 
Vested
(1,152,468
)
 
15.20

 
 
 
 
Forfeited
(106,272
)
 
16.30

 
 
 
 
Nonvested, September 29, 2012
2,371,570

 
$
15.29

 
1.0
 
$
38


As of September 29, 2012, we had $13 million of total unrecognized compensation cost related to restricted stock awards that will be recognized over a weighted average period of 1.0 year.
We recognized stock-based compensation expense related to restricted stock, net of income taxes, of $7 million, $7 million and $8 million for fiscal 2012, 2011 and 2010, respectively. The related tax benefit for fiscal 2012, 2011 and 2010 was $4 million, $5 million and $5 million, respectively. We had 1.2 million, 0.9 million and 1.8 million restricted stock awards vest in fiscal 2012, 2011 and 2010, respectively, with a grant date fair value of $17 million, $14 million and $30 million, respectively.
Performance-Based Shares
In July 2003, our Compensation Committee began authorizing us to award performance-based shares of our Class A stock to certain senior executives. These awards are typically granted on the first business day of our fiscal year. The vesting of the performance-based shares is generally over three years and each award is subject to the attainment of goals determined by the Compensation Committee prior to the date of the award. We review progress toward the attainment of goals each quarter during the vesting period. However, the attainment of goals can be determined only at the end of the vesting period. If the shares vest, the ultimate cost will be equal to the Class A stock price on the date the shares vest multiplied by the number of shares awarded for all performance grants with other than market criteria. For grants with market performance criteria, the ultimate expense will be the fair value of the probable shares to vest regardless if the shares actually vest. Total expense recorded related to performance-based shares was not material for fiscal 2012, 2011 and 2010.
Pensions And Other Postretirement Benefits
Pensions And Other Postretirement Benefits
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
At September 29, 2012, we had four noncontributory defined benefit pension plans consisting of three funded qualified plans and one unfunded non-qualified plan. All three of our qualified plans are frozen and provide benefits based on a formula using years of service and a specified benefit rate. Effective January 1, 2004, we implemented a non-qualified defined benefit plan for certain contracted officers that uses a formula based on years of service and final average salary. We also have other postretirement benefit plans for which substantially all of our employees may receive benefits if they satisfy applicable eligibility criteria. The postretirement healthcare plans are contributory with participants’ contributions adjusted when deemed necessary.
We have defined contribution retirement programs for various groups of employees. We recognized expenses of $47 million, $45 million and $48 million in fiscal 2012, 2011 and 2010, respectively.
We use a fiscal year end measurement date for our defined benefit plans and other postretirement plans. We recognize the effect of actuarial gains and losses into earnings immediately for other postretirement plans rather than amortizing the effect over future periods.
Other postretirement benefits include postretirement medical costs and life insurance.
Benefit Obligations And Funded Status
The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at September 29, 2012, and October 1, 2011:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
99

 
$
97

 
$
62

 
$
42

 
$
44

 
$
45

Service cost
—

 
—

 
5

 
3

 
1

 
—

Interest cost
4

 
5

 
3

 
2

 
2

 
2

Plan participants’ contributions
—

 
—

 
—

 
—

 
1

 
1

Actuarial loss
5

 
3

 
13

 
17

 
25

 
4

Benefits paid
(7
)
 
(6
)
 
(2
)
 
(2
)
 
(9
)
 
(8
)
Benefit obligation at end of year
101

 
99

 
81

 
62

 
64

 
44

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
74

 
74

 
—

 
—

 
—

 
—

Actual return on plan assets
13

 
1

 
—

 
—

 
—

 
—

Employer contributions
6

 
5

 
2

 
2

 
8

 
7

Plan participants’ contributions
—

 
—

 
—

 
—

 
1

 
1

Benefits paid
(7
)
 
(6
)
 
(2
)
 
(2
)
 
(9
)
 
(8
)
Fair value of plan assets at end of year
86

 
74

 
—

 
—

 
—

 
—

Funded status
$
(15
)
 
$
(25
)
 
$
(81
)
 
$
(62
)
 
$
(64
)
 
$
(44
)

Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Accrued benefit liability
$
(15
)
 
$
(25
)
 
$
(81
)
 
$
(62
)
 
$
(64
)
 
$
(44
)
Accumulated other comprehensive (income)/loss:
 
 
 
 
 
 
 
 
 
 
 
Unrecognized actuarial loss
39

 
45

 
29

 
17

 
—

 
—

Unrecognized prior service (cost)/credit
—

 
—

 
1

 
2

 
(4
)
 
(5
)
Net amount recognized
$
24

 
$
20

 
$
(51
)
 
$
(43
)
 
$
(68
)
 
$
(49
)

At September 29, 2012, and October 1, 2011, all pension plans had an accumulated benefit obligation in excess of plan assets. The accumulated benefit obligation for all qualified pension plans was $101 million and $99 million at September 29, 2012, and October 1, 2011, respectively. Plans with accumulated benefit obligations in excess of plan assets are as follows:
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Qualified
 
Non-Qualified
 
2012

 
2011

 
2012

 
2011

Projected benefit obligation
$
101

 
$
99

 
$
81

 
$
62

Accumulated benefit obligation
101

 
99

 
69

 
55

Fair value of plan assets
86

 
74

 
—

 
—


Net Periodic Benefit Cost
Components of net periodic benefit cost for pension and postretirement benefit plans recognized in the Consolidated Statements of Income are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Service cost
$
—

 
$
—

 
$
—

 
$
5

 
$
3

 
$
3

 
$
1

 
$
—

 
$
1

Interest cost
4

 
5

 
5

 
3

 
2

 
2

 
2

 
2

 
2

Expected return on plan assets
(6
)
 
(6
)
 
(6
)
 
—

 
—

 
—

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
1

 
1

 
1

 
(1
)
 
(1
)
 
(1
)
Recognized actuarial loss, net
3

 
3

 
1

 
1

 
—

 
—

 
24

 
1

 
—

Net periodic benefit cost
$
1

 
$
2

 
$
—

 
$
10

 
$
6

 
$
6

 
$
26

 
$
2

 
$
2


As of September 29, 2012, the amounts expected to be reclassified into earnings within the next 12 months related to net periodic benefit cost for the qualified and non-qualified pensions are $3 million and $3 million, respectively.
Assumptions
Weighted average assumptions are as follows:
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Discount rate to determine net periodic benefit cost
4.53
%
 
5.06
%
 
6.00
%
 
4.75
%
 
5.50
%
 
6.00
%
 
4.09
%
 
4.50
%
 
5.71
%
Discount rate to determine benefit obligations
4.02
%
 
4.53
%
 
5.06
%
 
4.23
%
 
4.75
%
 
5.50
%
 
3.66
%
 
4.09
%
 
4.50
%
Rate of compensation increase
N/A

 
N/A

 
N/A

 
3.50
%
 
3.50
%
 
3.50
%
 
N/A

 
N/A

 
N/A

Expected return on plan assets
6.37
%
 
7.79
%
 
7.80
%
 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
N/A


To determine the expected return on plan assets assumption, we first examined historical rates of return for the various asset classes. We then determined a long-term projected rate-of-return based on expected returns over the next five to 10 years.
Our discount rate assumptions used to account for pension and other postretirement benefit plans reflect the rates at which the benefit obligations could be effectively settled. These were determined using a cash flow matching technique whereby the rates of a yield curve, developed from high-quality debt securities, were applied to the benefit obligations to determine the appropriate discount rate.
We have three other postretirement benefit plans which are all healthcare related. Two of these plans, which benefit obligations totaled $26 million at September 29, 2012, were not impacted by healthcare cost trend rates as they consist of fixed annual payments. The remaining plan, which benefit obligation was $38 million at September 29, 2012, covers retirees who do not yet qualify for Medicare and utilized an assumed healthcare cost trend rate of 8%. A one-percentage point change in assumed healthcare cost trend rate would have an approximate $4 million impact on the postretirement benefit obligation.
Plan Assets
The fair value of plan assets for domestic pension benefit plans was $69 million and $59 million as of September 29, 2012, and October 1, 2011, respectively. The following table sets forth the actual and target asset allocation for pension plan assets:
 
2012

 
2011

 
Target Asset
Allocation

Cash
1.6
%
 
1.9
%
 
2.0
%
Fixed Income Securities
46.0

 
24.2

 
38.0

US Stock Funds
23.5

 
41.4

 
22.5

International Stock Funds
23.5

 
17.7

 
22.5

Real Estate
5.0

 
4.7

 
5.0

Alternatives
0.4

 
10.1

 
10.0

Total
100.0
%
 
100.0
%
 
100.0
%

A foreign subsidiary pension plan had $17 million and $15 million in plan assets at September 29, 2012, and October 1, 2011, respectively. All of this plan’s assets are held in an insurance contract consistent with its target asset allocation.
The plan trustees have established a set of investment objectives related to the assets of the pension plans and regularly monitor the performance of the funds and portfolio managers. Objectives for the pension assets are (i) to provide growth of capital and income, (ii) to achieve a target weighted average annual rate of return competitive with other funds with similar investment objectives and (iii) to diversify to reduce risk. The investment objectives and target asset allocation were adopted in January 2004 and amended in August 2012. Alternative investments may include, but are not limited to, hedge funds, private equity funds and fixed income funds.
The following table shows the categories of pension plan assets and the level under which fair values were determined in the fair value hierarchy, which is described in Note 12: Fair Value Measurements.
 
in millions
 
 
September 29, 2012
 
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
1

 
$
—

 
$
—

 
$
1

Fixed Income Securities Bond Fund (a)
32

 
—

 
—

 
32

Equity Securities:
 
 
 
 
 
 
 
U.S. stock funds (a)
16

 
—

 
—

 
16

International stock funds (a)
16

 
—

 
—

 
16

Global real estate funds (a)
4

 
—

 
—

 
4

Total equity securities
36

 
—

 
—

 
36

Other Investments - Alternatives (b)
—

 
—

 
—

 
—

Total fair value
69

 
—

 
—

 
69

Insurance Contract (b)
—

 
—

 
17

 
17

Total plan assets
$
69

 
$
—

 
$
17

 
$
86

 
(a)
Valued using quoted market prices in active markets.
(b)
Valued using plan’s own assumptions about the assumptions market participants would use in pricing the assets based on the best information available, such as investment manager pricing.
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) is as follows (in millions):
 
Alternative funds

 
Insurance contract

 
Total

Balance at October 1, 2011
$
6

 
$
15

 
$
21

Actual return on plan assets:
 
 
 
 
 
Assets still held at reporting date
—

 
2

 
2

Assets sold during the period
—

 
—

 
—

Purchases, sales and settlements, net
(6
)
 
—

 
(6
)
Transfers in and/or out of Level 3
—

 
—

 
—

Balance at September 29, 2012
$
—

 
$
17

 
$
17


We believe there are no significant concentrations of risk within our plan assets as of September 29, 2012.
Contributions
Our policy is to fund at least the minimum contribution required to meet applicable federal employee benefit and local tax laws. In our sole discretion, we may from time to time fund additional amounts. Expected contributions to pension plans for fiscal 2013 are approximately $8 million. For fiscal 2012, 2011 and 2010, we funded $8 million, $7 million and $4 million, respectively, to defined benefit plans.
Estimated Future Benefit Payments
The following benefit payments are expected to be paid:
 
 
 
 
 
in millions

 
Pension Benefits
 
Other Postretirement

 
Qualified

 
Non-Qualified

 
Benefits

2013
$
7

 
$
2

 
$
5

2014
7

 
3

 
5

2015
7

 
3

 
5

2016
6

 
3

 
5

2017
6

 
4

 
5

2018-2022
29

 
24

 
24


The above benefit payments for other postretirement benefit plans are not expected to be offset by Medicare Part D subsidies in 2013 or thereafter.
Comprehensive Income (Loss)
Comprehensive Income (Loss)
COMPREHENSIVE INCOME (LOSS)
The components of accumulated other comprehensive loss are as follows:
 
 
 
in millions

 
2012

 
2011

Accumulated other comprehensive income (loss), net of taxes:
 
 
 
Unrealized net hedging gains (losses)
$
10

 
$
(7
)
Unrealized net gain on investments
1

 
1

Currency translation adjustment
(32
)
 
(35
)
Postretirement benefits reserve adjustments
(42
)
 
(38
)
Total accumulated other comprehensive loss
$
(63
)
 
$
(79
)

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

 
Before Tax

 
Income Tax

 
After Tax

Fiscal 2012:
 
 
 
 
 
Net hedging loss reclassified to earnings
$
12

 
$
(5
)
 
$
7

Net hedging unrealized gain
16

 
(6
)
 
10

Currency translation adjustment
2

 
1

 
3

Net change in postretirement liabilities
(6
)
 
2

 
(4
)
Other comprehensive income (loss) – 2012
$
24

 
$
(8
)
 
$
16

Fiscal 2011:
 
 
 
 
 
Net hedging gain reclassified to earnings
$
(25
)
 
$
10

 
$
(15
)
Net hedging unrealized gain (loss)
4

 
(6
)
 
(2
)
Unrealized loss on investments
(12
)
 
4

 
(8
)
Currency translation adjustment
(42
)
 
1

 
(41
)
Net change in postretirement liabilities
(21
)
 
8

 
(13
)
Other comprehensive income (loss) – 2011
$
(96
)
 
$
17

 
$
(79
)
Fiscal 2010:
 
 
 
 
 
Net hedging loss reclassified to earnings
$
7

 
$
(1
)
 
$
6

Net hedging unrealized gain
7

 
(1
)
 
6

Currency translation adjustment
27

 
—

 
27

Net change in postretirement liabilities
(6
)
 
1

 
(5
)
Other comprehensive income (loss) – 2010
$
35

 
$
(1
)
 
$
34

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.
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.
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.
 
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other

 
Intersegment
Sales

 
Consolidated

Fiscal year ended September 29, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,591

 
$
13,755

 
$
5,510

 
$
3,237

 
$
167

 
$
(982
)
 
$
33,278

Operating Income (Loss)
446

 
218

 
417

 
181

 
(14
)
 
 
 
1,248

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
321

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
927

Depreciation
268

 
86

 
30

 
54

 
5

 
 
 
443

Total Assets
5,902

 
2,634

 
895

 
960

 
1,505

 
 
 
11,896

Additions to property, plant and equipment
451

 
100

 
32

 
99

 
8

 
 
 
690

Fiscal year ended October 1, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,017

 
$
13,549

 
$
5,460

 
$
3,215

 
$
127

 
$
(1,102
)
 
$
32,266

Operating Income (Loss)
164

 
468

 
560

 
117

 
(24
)
 
 
 
1,285

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
211

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,074

Depreciation
259

 
84

 
28

 
58

 
4

 
 
 
433

Total Assets
5,412

 
2,610

 
960

 
943

 
1,146

 
 
 
11,071

Additions to property, plant and equipment
464

 
88

 
27

 
58

 
6

 
 
 
643

Fiscal year ended October 2, 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
10,062

 
$
11,707

 
$
4,552

 
$
2,999

 
$
—

 
$
(890
)
 
$
28,430

Operating Income (Loss)
519

 
542

 
381

 
124

 
(10
)
 
 
 
1,556

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
353

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,203

Depreciation
251

 
82

 
27

 
56

 
—

 
 
 
416

Total Assets
5,031

 
2,468

 
845

 
940

 
1,468

 
 
 
10,752

Additions to property, plant and equipment
320

 
61

 
27

 
42

 
100

 
 
 
550


We allocate expenses related to corporate activities to the segments, while the related assets and additions to property, plant and equipment remain in Other.
The Pork segment had sales of $771 million, $816 million and $718 million for fiscal 2012, 2011 and 2010, respectively, from transactions with other operating segments. The Beef segment had sales of $211 million, $286 million and $172 million for fiscal 2012, 2011 and 2010, respectively, from transactions with other operating segments.
Our largest customer, Wal-Mart Stores, Inc., accounted for 13.8%, 13.3% and 13.4% of consolidated sales in fiscal 2012, 2011 and 2010, respectively. Sales to Wal-Mart Stores, Inc. were included in the Chicken, Beef, Pork and Prepared Foods segments. Any extended discontinuance of sales to this customer could, if not replaced, have a material impact on our operations.
The majority of our operations are domiciled in the United States. Approximately 95%, 96% and 96% of sales to external customers for fiscal 2012, 2011 and 2010, respectively, were sourced from the United States. Approximately $5.9 billion and $5.8 billion, respectively, of long-lived assets were located in the United States at September 29, 2012, and October 1, 2011. Approximately $564 million and $539 million of long-lived assets were located in foreign countries, primarily Brazil, China, Mexico and India, at September 29, 2012, and October 1, 2011, respectively.
We sell certain products in foreign markets, primarily Brazil, Canada, Central America, China, the European Union, Japan, Mexico, the Middle East, Russia, South Korea, Taiwan, Ukraine and Vietnam. Our export sales from the United States totaled $4.0 billion, $4.1 billion and $3.2 billion for fiscal 2012, 2011 and 2010, respectively. Substantially all of our export sales are facilitated through unaffiliated brokers, marketing associations and foreign sales staffs. Sales of products produced in a country other than the United States were less than 10% of consolidated sales for each of fiscal 2012, 2011 and 2010.
Supplemental Cash Flow Information
Supplemental Cash Flow Information
SUPPLEMENTAL CASH FLOW INFORMATION
The following table summarizes cash payments for interest and income taxes:
 
 
 
 
 
in millions

 
2012

 
2011

 
2010

Interest, net of amounts capitalized
$
274

 
$
174

 
$
302

Income taxes, net of refunds
187

 
311

 
470

Commitments And Contingencies
Commitments And Contingencies
COMMITMENTS AND CONTINGENCIES
Commitments
We lease equipment, properties and certain farms for which total rentals approximated $193 million, $183 million and $188 million, respectively, in fiscal 2012, 2011 and 2010. Most leases have initial terms up to seven years, some with varying renewal periods. The most significant obligations assumed under the terms of the leases are the upkeep of the facilities and payments of insurance and property taxes.
Minimum lease commitments under non-cancelable leases at September 29, 2012, were:
 
in millions

2013
$
101

2014
72

2015
47

2016
32

2017
21

2018 and beyond
55

Total
$
328


We guarantee obligations of certain outside third parties, which consists of a lease and grower loans, all of which are substantially collateralized by the underlying assets. Terms of the underlying debt cover periods up to ten years, and the maximum potential amount of future payments as of September 29, 2012, was $75 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 $58 million, of which $52 million would be recoverable through various recourse provisions and an additional undeterminable recoverable amount based on the fair value of the underlying leased assets. The likelihood of material payments under these guarantees is not considered probable. At September 29, 2012, and October 1, 2011, no material liabilities for guarantees were recorded.
We have cash flow assistance programs in which certain livestock suppliers participate. Under these programs, we pay an amount for livestock equivalent to a standard cost to grow such livestock during periods of low market sales prices. The amounts of such payments that are in excess of the market sales price are recorded as receivables and accrue interest. Participating suppliers are obligated to repay these receivables balances when market sales prices exceed this standard cost, or upon termination of the agreement. Our maximum obligation associated with these programs is limited to the fair value of each participating livestock supplier’s net tangible assets. The potential maximum obligation as of September 29, 2012, was approximately $275 million. The total receivables under these programs were $25 million and $28 million at September 29, 2012, and October 1, 2011, respectively, and are included, net of allowance for uncollectible amounts, in Accounts Receivable and Other Assets in our Consolidated 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 $10 million at both September 29, 2012, and October 1, 2011.
Additionally, we enter into future purchase commitments for various items, such as grains, livestock contracts and fixed grower fees. At September 29, 2012, these commitments totaled:
 
in millions

2013
$
819

2014
73

2015
36

2016
35

2017
26

2018 and beyond
86

Total
$
1,075


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 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 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 Financial Statements. We believe we have substantial defenses to the claims made and intend to vigorously defend these matters.
We have pending against us a lawsuit styled DeAsencio v. Tyson Foods, Inc. (E. Dist. Pennsylvania, August 22, 2000) in which the plaintiffs allege that we failed to compensate certain poultry plant employees for the time it takes to engage in pre- and post-shift activities such as changing into and out of protective and sanitary clothing and walking to and from the changing area, work areas and break areas in violation of the Federal Labor Standards Act (FLSA). They seek back wages, liquidated damages, pre- and post-judgment interest, and attorneys’ fees. Plaintiffs appealed a jury verdict and final judgment entered in our favor on June 22, 2006. On September 7, 2007, the U.S. Court of Appeals for the Third Circuit reversed the jury verdict and remanded the case to the District Court for further proceedings. We sought rehearing en banc, which was denied by the Court of Appeals on October 5, 2007. The United States Supreme Court denied our petition for a writ of certiorari on June 9, 2008. The new trial date has not been set.
We have pending twelve separate wage and hour actions involving Tyson Fresh Meats Inc.’s plants located in Lexington, Nebraska (Lopez, et al. v. Tyson Foods, Inc., D. Nebraska, June 30, 2006), Garden City and Emporia, Kansas (Garcia, et al. v. Tyson Foods, Inc., Tyson Fresh Meats, Inc., D. Kansas, May 15, 2006), Storm Lake, Iowa (Bouaphakeo (f/k/a Sharp), et al. v. Tyson Foods, Inc., N.D. Iowa, February 6, 2007), Columbus Junction, Iowa (Guyton (f/k/a Robinson), et al. v. Tyson Foods, Inc., d.b.a Tyson Fresh Meats, Inc., S.D. Iowa, September 12, 2007), Joslin, Illinois (Murray, et al. v. Tyson Foods, Inc., C.D. Illinois, January 2, 2008; and DeVoss v. Tyson Foods, Inc. d.b.a. Tyson Fresh Meats, C.D. Illinois, March 2, 2011), Dakota City, Nebraska (Gomez, et al. v. Tyson Foods, Inc., D. Nebraska, January 16, 2008), Madison, Nebraska (Acosta, et al. v Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., D. Nebraska, February 29, 2008), Perry and Waterloo, Iowa (Edwards, et al. v. Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., S.D. Iowa, March 20, 2008); Council Bluffs, Iowa (Maxwell (f/k/a Salazar), et al. v. Tyson Foods, Inc. d.b.a Tyson Fresh Meats, Inc., S.D. Iowa, April 29, 2008); Logansport, Indiana (Carter, et al. v. Tyson Foods, Inc. and Tyson Fresh Meats, Inc., N.D. Indiana, April 29, 2008); and Goodlettsville, Tennessee (Abadeer v. Tyson Foods, Inc., and Tyson Fresh Meats, Inc., M.D. Tennessee, February 6, 2009). The actions allege we failed to pay employees for all hours worked, including overtime compensation for the time it takes to change into protective work uniforms, safety equipment and other sanitary and protective clothing worn by employees, and for walking to and from the changing area, work areas and break areas in violation of the FLSA and analogous state laws. The plaintiffs seek back wages, liquidated damages, pre- and post-judgment interest, attorneys’ fees and costs. Each case is proceeding in its jurisdiction.
•
After a trial in the Garcia case, which involved the Garden City, Kansas facility, a jury verdict in favor of the plaintiffs was entered on March 17, 2011. Exclusive of pre- and post-judgment interest, attorneys’ fees and costs, the jury found violations of federal and state laws for pre- and post-shift work activities and awarded damages in the amount of $503,011. Plaintiffs’ counsel has filed an application for attorneys’ fees and expenses in the amount of $3,475,422, which we have contested. The court stayed the filing of a notice of appeal pending its decision on plaintiffs' application for attorneys' fees and expenses.
•
A jury trial was held in the Lopez case, which involved the Lexington, NE beef plant, and resulted in a jury verdict in favor of Tyson. Judgment was entered and the complaint was dismissed with prejudice on May 26, 2011. Plaintiffs filed an appeal with the Eighth Circuit Court of Appeals on June 16, 2011, and the appellate court affirmed the jury's verdict in favor of Tyson on September 4, 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.
•
The Acosta and Gomez cases are scheduled for trials on January 14, 2013, and March 18, 2013, respectively.
We have pending one wage and hour action involving our Tyson Prepared Foods plant located in Jefferson, Wisconsin (Weissman, et al. v. Tyson Prepared Foods, Inc., Jefferson County (Wisconsin) Circuit Court, October 20, 2010). The plaintiffs allege that employees should be paid for the time it takes to engage in pre- and post-shift activities such as changing into and out of protective and sanitary clothing and the associated time it takes to walk to and from their workstations post-donning and pre-doffing of protective and sanitary clothing. Six named plaintiffs seek to act as state law class representatives on behalf of all current and former employees who were allegedly not paid for time worked and seek back wages, liquidated damages, pre- and post-judgment interest, and attorneys’ fees and costs. On May 16, 2011, 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.
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
QUARTERLY FINANCIAL DATA (UNAUDITED)
 
 
 
in millions, except per share data
 
 
First
Quarter

 
Second
Quarter

 
Third
Quarter

 
Fourth
Quarter

2012
 
 
 
 
 
 
 
Sales
$
8,329

 
$
8,268

 
$
8,308

 
$
8,373

Gross profit
493

 
535

 
562

 
570

Operating income
278

 
302

 
336

 
332

Net income
156

 
166

 
73

 
181

Net income attributable to Tyson
156

 
166

 
76

 
185

Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A Basic
$
0.43

 
$
0.47

 
$
0.21

 
$
0.53

Class B Basic
$
0.39

 
$
0.42

 
$
0.19

 
$
0.48

Diluted
$
0.42

 
$
0.44

 
$
0.21

 
$
0.51

2011
 
 
 
 
 
 
 
Sales
$
7,615

 
$
8,000

 
$
8,247

 
$
8,404

Gross profit
744

 
533

 
531

 
391

Operating income
498

 
303

 
312

 
172

Net income
294

 
156

 
188

 
95

Net income attributable to Tyson
298

 
159

 
196

 
97

Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A Basic
$
0.81

 
$
0.43

 
$
0.53

 
$
0.27

Class B Basic
$
0.73

 
$
0.39

 
$
0.48

 
$
0.24

Diluted
$
0.78

 
$
0.42

 
$
0.51

 
$
0.26


Third quarter fiscal 2012 net income included a $167 million pretax charge related to the early extinguishment of debt. Fourth quarter fiscal 2012 net income included a $15 million non-cash charge related to the impairment of non-core assets in China.
First quarter fiscal 2011 net income included $11 million gain related to a sale of interests in an equity method investment. Third quarter fiscal 2011 net income included $21 million reduction to income tax expense related to a reversal of reserves for foreign uncertain tax positions.
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-Guarantor Subsidiaries (Non-Guarantors) on a combined basis; the elimination entries necessary to consolidate TFI Parent, TFM Parent and the Non-Guarantors; and Tyson Foods, Inc. on a consolidated basis, and is provided as an alternative to providing separate financial statements for the guarantor. This presentation has been revised from the financial presentation disclosed in prior periods to reflect changes in the subsidiary guarantees associated with the permanent release of certain subsidiary guarantors upon the retirement of the 2014 Notes.
Condensed Consolidating Statement of Income for the year ended September 29, 2012
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
352

 
$
18,832

 
$
15,375

 
$
(1,281
)
 
$
33,278

Cost of Sales
(4
)
 
18,088

 
14,314

 
(1,280
)
 
31,118

Gross Profit
356

 
744

 
1,061

 
(1
)
 
2,160

Operating Expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative
59

 
205

 
649

 
(1
)
 
912

Goodwill impairment
—

 
—

 
—

 
—

 
—

Operating Income
297

 
539

 
412

 
—

 
1,248

 
 
 
 
 
 
 
 
 
 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
49

 
143

 
152

 
—

 
344

Other, net
1

 
—

 
(24
)
 
—

 
(23
)
Equity in net earnings of subsidiaries
(427
)
 
(43
)
 
—

 
470

 
—

Total Other (Income) Expense
(377
)
 
100

 
128

 
470

 
321

 
 
 
 
 
 
 
 
 
 
Income before Income Taxes
674

 
439

 
284

 
(470
)
 
927

Income Tax Expense (Benefit)
91

 
130

 
130

 
—

 
351

Net Income
583

 
309

 
154

 
(470
)
 
576

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
(7
)
 
—

 
(7
)
Net Income Attributable to Tyson
$
583

 
$
309

 
$
161

 
$
(470
)
 
$
583

Condensed Consolidating Statement of Income for the year ended October 1, 2011
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
157

 
$
18,636

 
$
14,700

 
$
(1,227
)
 
$
32,266

Cost of Sales
29

 
17,461

 
13,804

 
(1,227
)
 
30,067

Gross Profit
128

 
1,175

 
896

 
—

 
2,199

Operating Expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative
52

 
215

 
647

 
—

 
914

Goodwill impairment
—

 
—

 
—

 
—

 
—

Operating Income
76

 
960

 
249

 
—

 
1,285

 
 
 
 
 
 
 
 
 
 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
(26
)
 
148

 
109

 
—

 
231

Other, net
(9
)
 
—

 
(11
)
 
—

 
(20
)
Equity in net earnings of subsidiaries
(673
)
 
(115
)
 
—

 
788

 
—

Total Other (Income) Expense
(708
)
 
33

 
98

 
788

 
211

 
 
 
 
 
 
 
 
 
 
Income before Income Taxes
784

 
927

 
151

 
(788
)
 
1,074

Income Tax Expense (Benefit)
34

 
272

 
35

 
—

 
341

Net Income
750

 
655

 
116

 
(788
)
 
733

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
(17
)
 
—

 
(17
)
Net Income Attributable to Tyson
$
750

 
$
655

 
$
133

 
$
(788
)
 
$
750

Condensed Consolidating Statement of Income for the year ended October 2, 2010
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
454

 
$
15,950

 
$
13,415

 
$
(1,389
)
 
$
28,430

Cost of Sales
16

 
14,867

 
12,422

 
(1,389
)
 
25,916

Gross Profit
438

 
1,083

 
993

 
—

 
2,514

Operating Expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative
93

 
199

 
637

 
—

 
929

Goodwill impairment
—

 
—

 
29

 
—

 
29

Operating Income
345

 
884

 
327

 
—

 
1,556

 
 
 
 
 
 
 
 
 
 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
328

 
2

 
3

 
—

 
333

Other, net
25

 
1

 
(6
)
 
—

 
20

Equity in net earnings of subsidiaries
(782
)
 
(51
)
 
—

 
833

 
—

Total Other (Income) Expense
(429
)
 
(48
)
 
(3
)
 
833

 
353

 
 
 
 
 
 
 
 
 
 
Income before Income Taxes
774

 
932

 
330

 
(833
)
 
1,203

Income Tax Expense (Benefit)
(6
)
 
304

 
140

 
—

 
438

Net Income
780

 
628

 
190

 
(833
)
 
765

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
(15
)
 
—

 
(15
)
Net Income Attributable to Tyson
$
780

 
$
628

 
$
205

 
$
(833
)
 
$
780


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 Balance Sheet as of October 1, 2011
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1

 
$
1

 
$
714

 
$
—

 
$
716

Accounts receivable, net
1

 
506

 
813

 
1

 
1,321

Inventories
2

 
926

 
1,659

 
—

 
2,587

Other current assets
62

 
95

 
83

 
(84
)
 
156

Total Current Assets
66

 
1,528

 
3,269

 
(83
)
 
4,780

Net Property, Plant and Equipment
37

 
875

 
2,911

 
—

 
3,823

Goodwill
—

 
881

 
1,011

 
—

 
1,892

Intangible Assets
—

 
31

 
118

 
—

 
149

Other Assets
2,179

 
180

 
260

 
(2,192
)
 
427

Investment in Subsidiaries
11,396

 
1,923

 
—

 
(13,319
)
 
—

Total Assets
$
13,678

 
$
5,418

 
$
7,569

 
$
(15,594
)
 
$
11,071

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
2

 
$
—

 
$
68

 
$
—

 
$
70

Accounts payable
8

 
525

 
731

 
—

 
1,264

Other current liabilities
5,808

 
144

 
843

 
(5,755
)
 
1,040

Total Current Liabilities
5,818

 
669

 
1,642

 
(5,755
)
 
2,374

Long-Term Debt
1,972

 
1,198

 
1,005

 
(2,063
)
 
2,112

Deferred Income Taxes
—

 
120

 
319

 
(15
)
 
424

Other Liabilities
231

 
142

 
217

 
(114
)
 
476

 
 
 
 
 
 
 
 
 


Total Tyson Shareholders’ Equity
5,657

 
3,289

 
4,358

 
(7,647
)
 
5,657

Noncontrolling Interest
—

 
—

 
28

 
—

 
28

Total Shareholders’ Equity
5,657

 
3,289

 
4,386

 
(7,647
)
 
5,685

Total Liabilities and Shareholders’ Equity
$
13,678

 
$
5,418

 
$
7,569

 
$
(15,594
)
 
$
11,071


Condensed Consolidating Statement of Cash Flows for the year ended September 29, 2012
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
312

 
$
438

 
$
447

 
$
(10
)
 
$
1,187

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(1
)
 
(104
)
 
(585
)
 
—

 
(690
)
(Purchases of)/Proceeds from marketable securities, net
—

 
(7
)
 
(4
)
 
—

 
(11
)
Proceeds from notes receivable
—

 
—

 
—

 
—

 
—

Change in restricted cash to be used for investing activities
—

 
—

 
—

 
—

 
—

Other, net
1

 
5

 
35

 
—

 
41

Cash Provided by (Used for) Investing Activities
—

 
(106
)
 
(554
)
 
—

 
(660
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
107

 
—

 
16

 
—

 
123

Purchase of redeemable noncontrolling interest
—

 
—

 
—

 
—

 
—

Change in restricted cash to be used for financing activities
—

 
—

 
—

 
—

 
—

Purchases of Tyson Class A common stock
(264
)
 
—

 
—

 
—

 
(264
)
Dividends
(57
)
 
—

 
(10
)
 
10

 
(57
)
Other, net
26

 
—

 
1

 
—

 
27

Net change in intercompany balances
(124
)
 
(324
)
 
448

 
—

 
—

Cash Provided by (Used for) Financing Activities
(312
)
 
(324
)
 
455

 
10

 
(171
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(1
)
 
—

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

 
8

 
347

 
—

 
355

Cash and Cash Equivalents at Beginning of Year
1

 
1

 
714

 
—

 
716

Cash and Cash Equivalents at End of Period
$
1

 
$
9

 
$
1,061

 
$
—

 
$
1,071

Condensed Consolidating Statement of Cash Flows for the year ended October 1, 2011
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
31

 
$
564

 
$
471

 
$
(20
)
 
$
1,046

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(1
)
 
(107
)
 
(535
)
 
—

 
(643
)
(Purchases of)/Proceeds from marketable securities, net
—

 
(57
)
 
(23
)
 
—

 
(80
)
Proceeds from notes receivable
—

 
—

 
51

 
—

 
51

Change in restricted cash to be used for investing activities
—

 
—

 
—

 
—

 
—

Other, net
23

 
—

 
5

 
—

 
28

Cash Provided by (Used for) Investing Activities
22

 
(164
)
 
(502
)
 
—

 
(644
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(391
)
 
(6
)
 
12

 
—

 
(385
)
Purchase of redeemable noncontrolling interest
—

 
—

 
(66
)
 
—

 
(66
)
Change in restricted cash to be used for financing activities
—

 
—

 
—

 
—

 
—

Purchases of Tyson Class A common stock
(207
)
 
—

 
—

 
—

 
(207
)
Dividends
(59
)
 
—

 
(20
)
 
20

 
(59
)
Other, net
49

 
—

 
10

 
—

 
59

Net change in intercompany balances
554

 
(395
)
 
(159
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(54
)
 
(401
)
 
(223
)
 
20

 
(658
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(6
)
 
—

 
(6
)
Increase (Decrease) in Cash and Cash Equivalents
(1
)
 
(1
)
 
(260
)
 
—

 
(262
)
Cash and Cash Equivalents at Beginning of Year
2

 
2

 
974

 
—

 
978

Cash and Cash Equivalents at End of Period
$
1

 
$
1

 
$
714

 
$
—

 
$
716

Condensed Consolidating Statement of Cash Flows for the year ended October 2, 2010
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
386

 
$
499

 
$
547

 
$
—

 
$
1,432

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(3
)
 
(85
)
 
(462
)
 
—

 
(550
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
(4
)
 
—

 
(4
)
Proceeds from notes receivable
—

 
—

 
—

 
—

 
—

Change in restricted cash to be used for investing activities
—

 
—

 
43

 
—

 
43

Other, net
(1
)
 
(1
)
 
13

 
—

 
11

Cash Provided by (Used for) Investing Activities
(4
)
 
(86
)
 
(410
)
 
—

 
(500
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(874
)
 
(149
)
 
(11
)
 
—

 
(1,034
)
Purchase of redeemable noncontrolling interest
—

 
—

 
—

 
—

 
—

Change in restricted cash to be used for financing activities
—

 
—

 
140

 
—

 
140

Purchases of Tyson Class A common stock
(48
)
 
—

 
—

 
—

 
(48
)
Dividends
(59
)
 
—

 
—

 
—

 
(59
)
Other, net
32

 
—

 
10

 
—

 
42

Net change in intercompany balances
569

 
(262
)
 
(307
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(380
)
 
(411
)
 
(168
)
 
—

 
(959
)
Effect of Exchange Rate Change on Cash
—

 
—

 
1

 
—

 
1

Increase (Decrease) in Cash and Cash Equivalents
2

 
2

 
(30
)
 
—

 
(26
)
Cash and Cash Equivalents at Beginning of Year
—

 
—

 
1,004

 
—

 
1,004

Cash and Cash Equivalents at End of Period
$
2

 
$
2

 
$
974

 
$
—

 
$
978

Valuation And Qualifying Accounts
Valuation And Qualifying Accounts
FINANCIAL STATEMENT SCHEDULE
TYSON FOODS, INC.
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
Three Years Ended September 29, 2012

 
 
 
 
 
 
 
 
 
 
in millions

 
 
 
 
Additions
 
 
 
 
 
 
Balance at
Beginning
of Period

 
Charged to
Costs and
Expenses

 
Charged to
Other Accounts

 
(Deductions)

 
Balance at End
of Period

Allowance for Doubtful Accounts:
 
 
 
 
 
 
 
 
 
 
2012
 
$
31

 
$
7

 
$
—

 
$
(5
)
 
$
33

2011
 
32

 
3

 
—

 
(4
)
 
31

2010
 
33

 
—

 
—

 
(1
)
 
32

Inventory Lower of Cost or Market Allowance:
 
 
 
 
 
 
 
 
 
 
2012
 
$
6

 
$
52

 
$
—

 
$
(34
)
 
$
24

2011
 
2

 
12

 
—

 
(8
)
 
6

2010
 
22

 
7

 
—

 
(27
)
 
2

Valuation Allowance on Deferred Tax Assets:
 
 
 
 
 
 
 
 
 
 
2012
 
$
92

 
$
16

 
$
—

 
$
(30
)
 
$
78

2011
 
96

 
16

 
—

 
(20
)
 
92

2010
 
75

 
27

 
—

 
(6
)
 
96

Business And Summary Of Significant Accounting Policies (Policy)
Description Of Business 
Description of Business: Tyson Foods, Inc. (collectively, “Company,” “we,” “us” or “our”), founded in 1935 with world headquarters in Springdale, Arkansas, is one of the world’s largest meat protein companies and the second-largest food production company in the Fortune 500. We produce a wide variety of brand name protein-based and prepared food products marketed in the United States and approximately 130 countries around the world.
Consolidation 
Consolidation: The consolidated 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.
Fiscal Year 
Fiscal Year: We utilize a 52- or 53-week accounting period ending on the Saturday closest to September 30. The Company’s accounting cycle resulted in a 52-week year for fiscal 2012, 2011 and 2010.
Cash And Cash Equivalents 
Cash and Cash Equivalents: Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as part of our cash management activity. The carrying values of these assets approximate their fair values. We primarily utilize a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts where funds are moved to, and several zero-balance disbursement accounts for funding payroll, accounts payable, livestock procurement, grower payments, etc. As a result of our cash management system, checks issued, but not presented to the banks for payment, may result in negative book cash balances. These negative book cash balances are included in accounts payable and other current liabilities.
Accounts Receivable 
Accounts Receivable: We record accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, level of past due accounts and relationships with and economic status of our customers.
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.
Property, Plant And Equipment 
Property, Plant and Equipment: Property, plant and equipment are stated at cost and depreciated on a straight-line method, using estimated lives for buildings and leasehold improvements of 10 to 33 years, machinery and equipment of three to 12 years and land improvements and other of three to 20 years. Major repairs and maintenance costs that significantly extend the useful life of the related assets are capitalized. Normal repairs and maintenance costs are charged to operations.
We review the carrying value of long-lived assets at each balance sheet date if indication of impairment exists. Recoverability is assessed using undiscounted cash flows based on historical results and current projections of earnings before interest and taxes. We measure impairment as the excess of carrying cost over the fair value of an asset. The fair value of an asset is measured using discounted cash flows including market participant assumptions of future operating results and discount rates.
Goodwill And Other Intangible Assets 
Goodwill and Other Intangible Assets: Goodwill and indefinite life intangible assets are initially recorded at fair value and not amortized, but are reviewed for impairment at least annually or more frequently if impairment indicators arise. Our goodwill is allocated by reporting unit and is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary. If it is determined, based on qualitative factors, the fair value of the reporting unit may be more likely than not less than carrying amount or if significant changes to macro-economic factors related to the reporting unit have occurred that could materially impact fair value, a quantitative goodwill impairment test would be required. Additionally, we can elect to forgo the qualitative assessment and perform the quantitative test.
The first step of the quantitative test is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the quantitative impairment test is not necessary. However, if the carrying amount of a reporting unit exceeds its fair value, the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize, if any. The second step compares the implied fair value of goodwill with the carrying amount of goodwill. If the implied fair value of goodwill exceeds the carrying amount, then goodwill is not considered impaired. However, if the carrying amount of goodwill exceeds the implied fair value, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination (i.e., the fair value of the reporting unit is allocated to all the assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was determined as the exit price a market participant would pay for the same business). We have elected to make the first day of the fourth quarter the annual impairment assessment date for goodwill and other indefinite life intangible assets.
We estimate the fair value of our reporting units using a discounted cash flow analysis, which uses significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. This analysis requires us to make various judgmental estimates and assumptions about sales, operating margins, growth rates and discount factors and is believed to reflect market participant views which would exist in an exit transaction. Generally, we utilize normalized operating margin assumptions based on future expectations and operating margins historically realized in the reporting units' industries. For the fiscal 2012 impairment test of material reporting units requiring a quantitative test, both our Domestic Chicken and Beef reporting units, which had goodwill at September 29, 2012, totaling $900 million and $563 million, respectively, utilized operating margins in future years in excess of the operating margins realized in the most recent year. We assumed operating margins in future years generally would return to our normalized range, as we believe this is consistent with market participant views in exit transactions. Some of the inherent estimates and assumptions used in determining fair value of the reporting units are outside the control of management, including interest rates, cost of capital, tax rates and credit ratings. While we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units, it is possible a material change could occur. If our actual results are not consistent with our estimates and assumptions used to calculate fair value, we may be required to perform the second step of the quantitative test in future years, which could result in material impairments of our goodwill.
During fiscal 2012, 2011 and 2010, all of our material reporting units that underwent the quantitative test passed the first step of the goodwill impairment analysis and therefore, the second step was not necessary. In fiscal 2010, we recorded a $29 million full impairment of an immaterial Chicken segment reporting unit's goodwill.
For our other indefinite life intangible assets, a qualitative assessment can also be performed to determine whether the existence of events and circumstances indicates it is more likely than not an intangible asset is impaired. Similar to goodwill, we can also elect to forgo the qualitative test for indefinite life intangible assets and perform the quantitative test. Upon performing the quantitative test, if the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The fair value of trademarks is determined using a royalty rate method based on expected revenues by trademark.
Investments 
Investments: We have investments in joint ventures and other entities. We use the cost method of accounting when our voting interests are less than 20 percent. We use the equity method of accounting when our voting interests are in excess of 20 percent and we do not have a controlling interest or a variable interest in which we are the primary beneficiary. Investments in joint ventures and other entities are reported in the Consolidated Balance Sheets in Other Assets.
We also have investments in marketable debt securities. We have determined all of our marketable debt securities are available-for-sale investments. These investments are reported at fair value based on quoted market prices as of the balance sheet date, with unrealized gains and losses, net of tax, recorded in other comprehensive income. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is recorded in interest income. The cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of debt securities and declines in value judged to be other than temporary are recorded on a net basis in other income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.
Accrued Self Insurance 
Accrued Self Insurance: We use a combination of insurance and self-insurance mechanisms in an effort to mitigate the potential liabilities for health and welfare, workers’ compensation, auto liability and general liability risks. Liabilities associated with our risks retained are estimated, in part, by considering claims experience, demographic factors, severity factors and other actuarial assumptions.
Financial Instruments 
Financial Instruments: We purchase certain commodities, such as grains and livestock in the course of normal operations. As part of our commodity risk management activities, we use derivative financial instruments, primarily futures and options, to reduce our exposure to various market risks related to these purchases, as well as to changes in foreign currency exchange rates. Contract terms of a financial instrument qualifying as a hedge instrument closely mirror those of the hedged item, providing a high degree of risk reduction and correlation. Contracts designated and highly effective at meeting risk reduction and correlation criteria are recorded using hedge accounting. If a derivative instrument is accounted for as a hedge, changes in the fair value of the instrument will be offset either against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive income (loss) until the hedged item is recognized in earnings. The ineffective portion of an instrument’s change in fair value is immediately recognized in earnings as a component of cost of sales. Instruments we hold as part of our risk management activities that do not meet the criteria for hedge accounting are marked to fair value with unrealized gains or losses reported currently in earnings. Changes in market value of derivatives used in our risk management activities relating to forward sales contracts are recorded in sales, while changes surrounding inventories on hand or anticipated purchases of inventories or supplies are recorded in cost of sales. We generally do not hedge anticipated transactions beyond 18 months.
Revenue Recognition 
Revenue Recognition: We recognize revenue when title and risk of loss are transferred to customers, which is generally on delivery based on terms of sale. Revenue is recognized as the net amount estimated to be received after deducting estimated amounts for discounts, trade allowances and product terms.
Litigation Reserves 
Litigation Reserves: There are a variety of legal proceedings pending or threatened against us. Accruals are recorded when it is probable a liability has been incurred and the amount of the liability can be reasonably estimated based on current law, progress of each case, opinions and views of legal counsel and other advisers, our experience in similar matters and intended response to the litigation. These amounts, which are not discounted and are exclusive of claims against third parties, are adjusted periodically as assessment efforts progress or additional information becomes available. We expense amounts for administering or litigating claims as incurred. Accruals for legal proceedings are included in Other current liabilities in the Consolidated Balance Sheets.
Freight Expense 
Freight Expense: Freight expense associated with products shipped to customers is recognized in cost of sales.
Advertising And Promotion Expenses 
Advertising and Promotion Expenses: Advertising and promotion expenses are charged to operations in the period incurred. Customer incentive and trade promotion activities are recorded as a reduction to sales based on amounts estimated as being due to customers, based primarily on historical utilization and redemption rates, while other advertising and promotional activities are recorded as selling, general and administrative expenses.
Research And Development 
Research and Development: Research and development costs are expensed as incurred.
Use Of Estimates 
Use of Estimates: The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, which require us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements 
Recently Issued Accounting Pronouncements:
In June 2011, the Financial Accounting Standards Board (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 will adopt this guidance in the first quarter of fiscal 2013. Upon adoption, we will be required to present comprehensive income as part of our consolidated statements of income, or in a separate financial statement. Currently, we present such information in our notes to the consolidated financial statements. Other than changing the presentation of comprehensive income, we do not expect the adoption will have a significant impact on our consolidated financial statements.
In December 2011, the FASB issued guidance enhancing disclosures related to offsetting of certain assets and liabilities. This guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. We do not expect the adoption will have a significant impact on our consolidated financial statements.
Business And Summary Of Significant Accounting Policies (Tables)
Schedule of Inventory, Current 
 
 
 
in millions

 
2012

 
2011

Processed products:
 
 
 
Weighted-average method – chicken and prepared foods
$
754

 
$
715

First-in, first-out method – beef and pork
611

 
581

Livestock – first-in, first-out method
952

 
928

Supplies and other – weighted-average method
492

 
363

Total inventory
$
2,809

 
$
2,587

Schedule of Class A Stock Repurchases 
A summary of cumulative share repurchases of our Class A Stock is as follows (in millions):
 
 
September 29, 2012
 
October 1, 2011
 
October 2, 2010
 
 
Shares
 
Dollars
 
Shares
 
Dollars
 
Shares
 
Dollars
Shares repurchased:
 
 
 
 
 
 
 
 
 
 
 
 
Under share repurchase program
 
12.5

 
$
230

 
9.7

 
$
170

 
—

 
$
—

To fund certain obligations under equity compensation plans
 
1.8

 
34

 
2.0

 
37

 
3.2

 
48

Total share repurchases
 
14.3

 
$
264

 
11.7

 
$
207

 
3.2

 
$
48

Property, Plant And Equipment (Tables)
Schedule Of Property, Plant And Equipment And Accumulated Depreciation
Major categories of property, plant and equipment and accumulated depreciation at September 29, 2012, and October 1, 2011:
 
in millions
 
 
2012

 
2011

Land
$
101

 
$
95

Building and leasehold improvements
2,868

 
2,698

Machinery and equipment
5,208

 
4,897

Land improvements and other
408

 
386

Buildings and equipment under construction
298

 
446

 
8,883

 
8,522

Less accumulated depreciation
4,861

 
4,699

Net property, plant and equipment
$
4,022

 
$
3,823

Goodwill And Other Intangible Assets (Tables)
Schedule Of Goodwill Activity 
The following table reflects goodwill activity for fiscal 2012 and 2011:
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Consolidated

Balance at October 2, 2010
 
 
 
 
 
 
 
 
 
Goodwill
$
979

 
$
1,123

 
$
317

 
$
63

 
$
2,482

Accumulated impairment losses
(29
)
 
(560
)
 
—

 
—

 
(589
)
 
950

 
563

 
317

 
63

 
1,893

Fiscal 2011 Activity:
 
 
 
 
 
 
 
 
 
Impairment losses
—

 
—

 
—

 
—

 
—

Currency translation and other
(1
)
 
—

 
—

 
—

 
(1
)
Balance at October 1, 2011
 
 
 
 
 
 
 
 
 
Goodwill
$
978

 
$
1,123

 
$
317

 
$
63

 
$
2,481

Accumulated impairment losses
(29
)
 
(560
)
 
—

 
—

 
(589
)
 
$
949

 
$
563

 
$
317

 
$
63

 
$
1,892

 
 
 
 
 
 
 
 
 
 
Fiscal 2012 Activity:
 
 
 
 
 
 
 
 
 
Impairment losses
—

 
—

 
—

 
—

 
—

Currency translation and other
(1
)
 
—

 
—

 
—

 
(1
)
Balance at September 29, 2012
 
 
 
 
 
 
 
 
 
Goodwill
977

 
1,123

 
317

 
63

 
2,480

Accumulated impairment losses
(29
)
 
(560
)
 
—

 
—

 
(589
)
 
$
948

 
$
563

 
$
317

 
$
63

 
$
1,891

Schedule Of Other Intangible Assets By Type 
Other intangible assets by type at September 29, 2012, and October 1, 2011:
in millions
 
 
2012

 
2011

Gross Carrying Value:
 
 
 
Trademarks
$
56

 
$
56

Patents, intellectual property and other
142

 
143

Land use rights
21

 
25

Less Accumulated Amortization
90

 
75

Total Intangible Assets
$
129

 
$
149

Other Current Liabilities (Tables)
Schedule Of Other Current Liabilities
Other current liabilities at September 29, 2012, and October 1, 2011, include:
 
in millions
 
 
2012

 
2011

Accrued salaries, wages and benefits
$
382

 
$
407

Self-insurance reserves
274

 
298

Other
287

 
335

Total other current liabilities
$
943

 
$
1,040

Debt (Tables)
Schedule Of Major Components Of Debt
The major components of debt are as follows (in millions):
 
2012

 
2011

Revolving credit facility
$
—

 
$
—

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

 
458

10.50% Senior notes due March 2014 (2014 Notes)
—

 
810

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

 
—

7.00% Notes due January 2028
18

 
18

Discount on senior notes
(28
)
 
(76
)
GO Zone tax-exempt bonds due October 2033 (0.20% at 9/29/2012)
100

 
100

Other
126

 
114

Total debt
2,432

 
2,182

Less current debt
515

 
70

Total long-term debt
$
1,917

 
$
2,112

Income Taxes (Tables)
Schedule Of Provision For Income Taxes From Continuing Operations 
Detail of the provision for income taxes from continuing operations consists of the following:
 
 
 
 
 
in millions  

 
2012

 
2011

 
2010

Federal
$
310

 
$
320

 
$
374

State
22

 
21

 
44

Foreign
19

 
—

 
20

 
$
351

 
$
341

 
$
438

 
 
 
 
 
 
Current
$
211

 
$
255

 
$
420

Deferred
140

 
86

 
18

 
$
351

 
$
341

 
$
438

Schedule Of Reasons For Differences Between Statutory Federal Tax Rate And Effective Income Tax Rate 
The reasons for the difference between the statutory federal income tax rate and our effective income tax rate from continuing operations are as follows:
 
2012

 
2011

 
2010

Federal income tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes
1.6

 
1.6

 
2.4

Unrecognized tax benefits, net
0.6

 
(1.7
)
 
(1.4
)
General business credits
(0.8
)
 
(0.9
)
 
(0.7
)
Domestic production deduction
(1.9
)
 
(2.3
)
 
(2.0
)
Foreign rate differences and valuation allowances
3.3

 
0.2

 
2.3

Other
0.1

 
(0.1
)
 
0.8

 
37.9
 %
 
31.8
 %
 
36.4
 %
Schedule Of Tax Effects Of Major Items Recorded As Deferred Tax Assets And Liabilities 
The tax effects of major items recorded as deferred tax assets and liabilities are as follows:
 
 
 
 
 
 
 
in millions

 
2012
 
2011
 
Deferred Tax
 
Deferred Tax
 
Assets

 
Liabilities

 
Assets

 
Liabilities

Property, plant and equipment
$
—

 
$
542

 
$
—

 
$
401

Suspended taxes from conversion to accrual method
—

 
76

 
—

 
81

Intangible assets
—

 
35

 
—

 
35

Inventory
9

 
105

 
9

 
113

Accrued expenses
193

 
—

 
196

 
—

Net operating loss and other carryforwards
101

 
—

 
97

 
—

Insurance reserves
21

 
—

 
23

 
—

Other
69

 
90

 
80

 
68

 
$
393

 
$
848

 
$
405

 
$
698

Valuation allowance
$
(78
)
 
 
 
$
(92
)
 
 
Net deferred tax liability
 
 
$
533

 
 
 
$
385

Schedule Of Activity Related To Gross Unrecognized Tax Benefits 
The following table summarizes the activity related to our gross unrecognized tax benefits at September 29, 2012, October 1, 2011, and October 2, 2010:
 
 
 
 
 
in millions

 
2012

 
2011

 
2010

Balance as of the beginning of the year
$
174

 
$
184

 
$
233

Increases related to current year tax positions
3

 
4

 
4

Increases related to prior year tax positions
5

 
21

 
11

Reductions related to prior year tax positions
(10
)
 
(24
)
 
(35
)
Reductions related to settlements
(1
)
 
(9
)
 
(25
)
Reductions related to expirations of statute of limitations
(3
)
 
(2
)
 
(4
)
Balance as of the end of the year
$
168

 
$
174

 
$
184

Earnings Per Share (Tables)
Schedule Of Earnings Per Share, Basic And Diluted
The earnings and weighted average common shares used in the computation of basic and diluted earnings per share are as follows:
 
in millions, except per share data
 
 
2012

 
2011

 
2010

Numerator:
 
 
 
 
 
Net income
$
576

 
$
733

 
$
765

Less: Net loss attributable to noncontrolling interest
(7
)
 
(17
)
 
(15
)
Net income attributable to Tyson
583

 
750

 
780

Less Dividends:
 
 
 
 
 
Class A ($0.16/share)
47

 
49

 
49

Class B ($0.144/share)
10

 
10

 
10

Undistributed earnings
$
526

 
$
691

 
$
721

 
 
 
 
 
 
Class A undistributed earnings
$
433

 
$
572

 
$
597

Class B undistributed earnings
93

 
119

 
124

Total undistributed earnings
$
526

 
$
691

 
$
721

 
 
 
 
 
 
Denominator:
 
 
 
 
 
Denominator for basic earnings per share:
 
 
 
 
 
Class A weighted average shares
293

 
303

 
303

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

 
70

 
70

Effect of dilutive securities:
 
 
 
 
 
Stock options and restricted stock
4

 
6

 
6

Convertible 2013 Notes
3

 
1

 
—

Denominator for diluted earnings per share – adjusted weighted average shares and assumed conversions
370

 
380

 
379

 
 
 
 
 
 
Net Income Per Share Attributable to Tyson:
 
 
 
 
 
Class A Basic
$
1.64

 
$
2.04

 
$
2.13

Class B Basic
$
1.48

 
$
1.84

 
$
1.91

Diluted
$
1.58

 
$
1.97

 
$
2.06

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 Balance Sheets (in millions):
 
Fair Value
 
2012

 
2011

Derivative Assets:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
32

 
$
3

Foreign exchange contracts
—

 
12

Total derivative assets – designated
32

 
15

 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
21

 
21

Foreign exchange contracts
1

 
5

Total derivative assets – not designated
22

 
26

 
 
 
 
Total derivative assets
$
54

 
$
41

Derivative Liabilities:
 
 
 
Derivatives designated as hedging instruments:
 
 
 
Commodity contracts
$
6

 
$
41

Foreign exchange contracts
1

 
—

Total derivative liabilities – designated
7

 
41

 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
Commodity contracts
96

 
121

Foreign exchange contracts
2

 
1

Interest rate contracts
—

 
2

Total derivative liabilities – not designated
98

 
124

 
 
 
 
Total derivative liabilities
$
105

 
$
165

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
 
September 29, 2012

 
October 1, 2011

Commodity:
 
 
 
 
 
 
Corn
 
Bushels
 
12

 
6

Soy Meal
 
Tons
 
164,700

 
82,300

Foreign Currency
 
United States dollar
 
$
80

 
$
75

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
The following table sets forth the pretax impact of cash flow hedge derivative instruments on the Consolidated Statements of Income (in millions):
 
Gain/(Loss)
Recognized in OCI
on Derivatives
 
 
Consolidated
Statements of Income
Classification
 
Gain/(Loss)
Reclassified from
OCI to Earnings
 
 
2012

 
2011

 
2010

 
 
 
2012

 
2011

 
2010

Cash Flow Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
$
24

 
$
(5
)
 
$
6

 
Cost of Sales
 
$
(16
)
 
$
25

 
$
(6
)
Foreign exchange contracts
(8
)
 
9

 
1

 
Other Income/Expense
 
4

 
—

 
1

Total
$
16

 
$
4

 
$
7

 
 
 
$
(12
)
 
$
25

 
$
(5
)
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
 
September 29, 2012

 
October 1, 2011

Commodity:
 
 
 
 
 
 
Live Cattle
 
Pounds
 
232

 
318

Lean Hogs
 
Pounds
 
239

 
601

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
 
 
in millions
 
 
 
Consolidated
Statements of Income
Classification
 
2012

 
2011

 
2010

Gain/(Loss) on forwards
 
Cost of Sales
 
$
47

 
$
(78
)
 
$
(58
)
Gain/(Loss) on purchase contract
 
Cost of Sales
 
(47
)
 
78

 
58

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 Statements of Income (in millions):
 
Gain/(Loss)
Recognized in OCI
on Derivatives
 
 
Consolidated
Statements of Income
Classification
 
Gain/(Loss)
Reclassified from
OCI to Earnings
 
 
2012

 
2011

 
2010

 
 
 
2012

 
2011

 
2010

Net Investment Hedge – Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
(2
)
 
$
(2
)
 
$
(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
 
September 29, 2012

 
October 1, 2011

Commodity:
 
 
 
 
 
 
Corn
 
Bushels
 
19

 
17

Soy Meal
 
Tons
 
1,200

 
174,600

Soy Oil
 
Pounds
 
17

 
13

Live Cattle
 
Pounds
 
68

 
72

Lean Hogs
 
Pounds
 
108

 
19

Foreign Currency
 
United States dollars
 
$
165

 
$
110

Interest Rate
 
Average monthly notional debt
 
$
27

 
$
39

Schedule Of Derivative Instruments, Gain (Loss) In Statement Of Financial Performance 
The following table sets forth the pretax impact of the undesignated derivative instruments on the Consolidated Statements of Income (in millions):
 
 
 
Consolidated
Statements of Income
Classification
 
Gain/(Loss)
Recognized
in Earnings
 
 
 
 
 
2012

 
2011

 
2010

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
Commodity contracts
 
Sales
 
$
(10
)
 
$
20

 
$
27

Commodity contracts
 
Cost of Sales
 
51

 
(2
)
 
(20
)
Foreign exchange contracts
 
Other Income/Expense
 
—

 
(3
)
 
(5
)
Interest rate contracts
 
Interest Expense
 
—

 
—

 
1

Total
 
 
 
$
41

 
$
15

 
$
3

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):
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

 
 
 
 
 
 
 
 
 
 
October 1, 2011
Level 1

 
Level 2

 
Level 3

 
Netting (a)

 
Total

Assets:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
24

 
$
—

 
$
(21
)
 
$
3

Foreign Exchange Forward Contracts
—

 
17

 
—

 
(2
)
 
15

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
Debt securities
—

 
34

 
83

 
—

 
117

Equity securities
7

 
—

 
—

 
—

 
7

Deferred Compensation Assets
28

 
122

 
—

 
—

 
150

Total Assets
$
35

 
$
197

 
$
83

 
$
(23
)
 
$
292

 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
Commodity Derivatives
$
—

 
$
162

 
$
—

 
$
(135
)
 
$
27

Foreign Exchange Forward Contracts
—

 
1

 
—

 
(1
)
 
—

Interest Rate Swap
—

 
2

 
—

 
—

 
2

Total Liabilities
$
—

 
$
165

 
$
—

 
$
(136
)
 
$
29

(a)
Our derivative assets and liabilities are presented in our Consolidated 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 September 29, 2012, and October 1, 2011, we had posted with various counterparties $59 million and $113 million, respectively, of cash collateral and held no cash collateral.
Schedule Of Debt Securities Measured At Fair Value On A Recurring Basis, Unobservable Input Reconciliation 
The following table provides a reconciliation between the beginning and ending balance of debt securities measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3) (in millions):
 
September 29, 2012
 
October 1, 2011
Balance at beginning of year
$
83

 
$
73

Total realized and unrealized gains (losses):
 
 
 
Included in earnings
1

 
—

Included in other comprehensive income (loss)
—

 
(1
)
Purchases
28

 
31

Issuances
—

 
—

Settlements
(26
)
 
(20
)
Balance at end of year
$
86

 
$
83

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

 
$
—

Schedule Of Available For Sale Securities 
We record the shares and warrants in Other Assets in the Consolidated 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)
September 29, 2012
 
October 1, 2011
 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

 
Amortized
Cost Basis

 
Fair
Value

 
Unrealized
Gain/(Loss)

Available for Sale Securities:
 
 
 
 
 
 
 
 
 
 
 
Debt Securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and Agency
$
26

 
$
27

 
$
1

 
$
33

 
$
34

 
$
1

Corporate and Asset-Backed (a)
64

 
66

 
2

 
54

 
56

 
2

Redeemable Preferred Stock
20

 
20

 
—

 
27

 
27

 
—

Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
Common Stock and Warrants
9

 
7

 
(2
)
 
9

 
7

 
(2
)
 
(a)
At September 29, 2012, and October 1, 2011, the amortized cost basis for Corporate and Asset-Backed debt securities had been reduced by accumulated other than temporary impairments of $2 million and $3 million, respectively.
Schedule Of Fair Value And Carrying Value Of Debt 
Fair value of our debt is principally estimated using Level 2 inputs based on quoted prices for those or similar instruments. Fair value and carrying value for our debt are as follows (in millions):
 
September 29, 2012
 
October 1, 2011
 
Fair
Value

 
Carrying
Value

 
Fair
Value

 
Carrying
Value

Total Debt
$
2,596

 
$
2,432

 
$
2,334

 
$
2,182

Stock-Based Compensation (Tables)
Schedule Of Summary Of Stock Options 
 
Shares Under
Option

 
Weighted
Average Exercise
Price Per Share

 
Weighted Average
Remaining
Contractual Life
(in Years)
 
Aggregate
Intrinsic Value
(in millions)

Outstanding, October 1, 2011
18,255,221

 
$
13.46

 
 
 
 
Exercised
(2,776,130
)
 
12.66

 
 
 
 
Canceled
(365,971
)
 
15.25

 
 
 
 
Granted
3,954,240

 
19.63

 
 
 
 
Outstanding, September 29, 2012
19,067,360

 
14.82

 
6.0
 
$
38

 
 
 
 
 
 
 
 
Exercisable, September 29, 2012
10,540,898

 
$
14.00

 
4.4
 
$
22

Schedule Of Assumptions Of Fair Value Calculation Of Each Year's Grants 
Assumptions as of the grant date used in the fair value calculation of each year’s grants are outlined in the following table.
 
2012

 
2011

 
2010

Expected life (in years)
6.7

 
6.7

 
6.5

Risk-free interest rate
0.9
%
 
1.5
%
 
1.2
%
Expected volatility
36.6
%
 
38.8
%
 
40.4
%
Expected dividend yield
1.0
%
 
1.0
%
 
1.3
%
Schedule Of Summary Of Restricted Stock 
 
Number of Shares

 
Weighted
Average Grant-
Date Fair Value
Per Share

 
Weighted Average
Remaining
Contractual Life
(in Years)
 
Aggregate
Intrinsic Value
(in millions)

Nonvested, October 1, 2011
2,970,302

 
$
14.70

 
 
 
 
Granted
639,421

 
17.73

 
 
 
 
Dividends
20,587

 
18.79

 
 
 
 
Vested
(1,152,468
)
 
15.20

 
 
 
 
Forfeited
(106,272
)
 
16.30

 
 
 
 
Nonvested, September 29, 2012
2,371,570

 
$
15.29

 
1.0
 
$
38

Pensions And Other Postretirement Benefits (Tables)
Schedule Of Reconciliation Of Changes In Plans' Benefit Obligations, Assets And Funded Status 
The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at September 29, 2012, and October 1, 2011:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
99

 
$
97

 
$
62

 
$
42

 
$
44

 
$
45

Service cost
—

 
—

 
5

 
3

 
1

 
—

Interest cost
4

 
5

 
3

 
2

 
2

 
2

Plan participants’ contributions
—

 
—

 
—

 
—

 
1

 
1

Actuarial loss
5

 
3

 
13

 
17

 
25

 
4

Benefits paid
(7
)
 
(6
)
 
(2
)
 
(2
)
 
(9
)
 
(8
)
Benefit obligation at end of year
101

 
99

 
81

 
62

 
64

 
44

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
74

 
74

 
—

 
—

 
—

 
—

Actual return on plan assets
13

 
1

 
—

 
—

 
—

 
—

Employer contributions
6

 
5

 
2

 
2

 
8

 
7

Plan participants’ contributions
—

 
—

 
—

 
—

 
1

 
1

Benefits paid
(7
)
 
(6
)
 
(2
)
 
(2
)
 
(9
)
 
(8
)
Fair value of plan assets at end of year
86

 
74

 
—

 
—

 
—

 
—

Funded status
$
(15
)
 
$
(25
)
 
$
(81
)
 
$
(62
)
 
$
(64
)
 
$
(44
)
Schedule Of Amounts Recognized In The Consolidated Balance Sheets 
Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2012

 
2011

 
2012

 
2011

 
2012

 
2011

Accrued benefit liability
$
(15
)
 
$
(25
)
 
$
(81
)
 
$
(62
)
 
$
(64
)
 
$
(44
)
Accumulated other comprehensive (income)/loss:
 
 
 
 
 
 
 
 
 
 
 
Unrecognized actuarial loss
39

 
45

 
29

 
17

 
—

 
—

Unrecognized prior service (cost)/credit
—

 
—

 
1

 
2

 
(4
)
 
(5
)
Net amount recognized
$
24

 
$
20

 
$
(51
)
 
$
(43
)
 
$
(68
)
 
$
(49
)
Schedule Of Plans With Accumulated Benefit Obligations In Excess Of Plan Assets 
Plans with accumulated benefit obligations in excess of plan assets are as follows:
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Qualified
 
Non-Qualified
 
2012

 
2011

 
2012

 
2011

Projected benefit obligation
$
101

 
$
99

 
$
81

 
$
62

Accumulated benefit obligation
101

 
99

 
69

 
55

Fair value of plan assets
86

 
74

 
—

 
—

Schedule Of Components Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans Recognized In The Consolidated Statements Of Income 
Components of net periodic benefit cost for pension and postretirement benefit plans recognized in the Consolidated Statements of Income are as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
in millions
 
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Service cost
$
—

 
$
—

 
$
—

 
$
5

 
$
3

 
$
3

 
$
1

 
$
—

 
$
1

Interest cost
4

 
5

 
5

 
3

 
2

 
2

 
2

 
2

 
2

Expected return on plan assets
(6
)
 
(6
)
 
(6
)
 
—

 
—

 
—

 
—

 
—

 
—

Amortization of prior service cost
—

 
—

 
—

 
1

 
1

 
1

 
(1
)
 
(1
)
 
(1
)
Recognized actuarial loss, net
3

 
3

 
1

 
1

 
—

 
—

 
24

 
1

 
—

Net periodic benefit cost
$
1

 
$
2

 
$
—

 
$
10

 
$
6

 
$
6

 
$
26

 
$
2

 
$
2

Schedule Of Weighted Average Assumptions 
Weighted average assumptions are as follows:
 
Pension Benefits
 
Other Postretirement
 
Qualified
 
Non-Qualified
 
Benefits
 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

 
2012

 
2011

 
2010

Discount rate to determine net periodic benefit cost
4.53
%
 
5.06
%
 
6.00
%
 
4.75
%
 
5.50
%
 
6.00
%
 
4.09
%
 
4.50
%
 
5.71
%
Discount rate to determine benefit obligations
4.02
%
 
4.53
%
 
5.06
%
 
4.23
%
 
4.75
%
 
5.50
%
 
3.66
%
 
4.09
%
 
4.50
%
Rate of compensation increase
N/A

 
N/A

 
N/A

 
3.50
%
 
3.50
%
 
3.50
%
 
N/A

 
N/A

 
N/A

Expected return on plan assets
6.37
%
 
7.79
%
 
7.80
%
 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

Schedule Of Actual And Target Asset Allocation For Pension Plan Assets 
The following table sets forth the actual and target asset allocation for pension plan assets:
 
2012

 
2011

 
Target Asset
Allocation

Cash
1.6
%
 
1.9
%
 
2.0
%
Fixed Income Securities
46.0

 
24.2

 
38.0

US Stock Funds
23.5

 
41.4

 
22.5

International Stock Funds
23.5

 
17.7

 
22.5

Real Estate
5.0

 
4.7

 
5.0

Alternatives
0.4

 
10.1

 
10.0

Total
100.0
%
 
100.0
%
 
100.0
%
Schedule Of Categories Of Pension Plan Assets And Level Under Which Fair Values Were Determined In Fair Value Hierarchy 
The following table shows the categories of pension plan assets and the level under which fair values were determined in the fair value hierarchy, which is described in Note 12: Fair Value Measurements.
 
in millions
 
 
September 29, 2012
 
Level 1

 
Level 2

 
Level 3

 
Total

Cash and cash equivalents
$
1

 
$
—

 
$
—

 
$
1

Fixed Income Securities Bond Fund (a)
32

 
—

 
—

 
32

Equity Securities:
 
 
 
 
 
 
 
U.S. stock funds (a)
16

 
—

 
—

 
16

International stock funds (a)
16

 
—

 
—

 
16

Global real estate funds (a)
4

 
—

 
—

 
4

Total equity securities
36

 
—

 
—

 
36

Other Investments - Alternatives (b)
—

 
—

 
—

 
—

Total fair value
69

 
—

 
—

 
69

Insurance Contract (b)
—

 
—

 
17

 
17

Total plan assets
$
69

 
$
—

 
$
17

 
$
86

 
(a)
Valued using quoted market prices in active markets.
(b)
Valued using plan’s own assumptions about the assumptions market participants would use in pricing the assets based on the best information available, such as investment manager pricing.
Schedule Of Reconciliation Of Change In Fair Value Measurement Of Defined Benefit Plans' Consolidated Assets Using Significant Unobservable Inputs 
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) is as follows (in millions):
 
Alternative funds

 
Insurance contract

 
Total

Balance at October 1, 2011
$
6

 
$
15

 
$
21

Actual return on plan assets:
 
 
 
 
 
Assets still held at reporting date
—

 
2

 
2

Assets sold during the period
—

 
—

 
—

Purchases, sales and settlements, net
(6
)
 
—

 
(6
)
Transfers in and/or out of Level 3
—

 
—

 
—

Balance at September 29, 2012
$
—

 
$
17

 
$
17

Schedule Of Estimated Future Benefit Payments Expected To Be Paid 
The following benefit payments are expected to be paid:
 
 
 
 
 
in millions

 
Pension Benefits
 
Other Postretirement

 
Qualified

 
Non-Qualified

 
Benefits

2013
$
7

 
$
2

 
$
5

2014
7

 
3

 
5

2015
7

 
3

 
5

2016
6

 
3

 
5

2017
6

 
4

 
5

2018-2022
29

 
24

 
24

Comprehensive Income (Loss) (Tables)
Schedule Of Components Of Accumulated Other Comprehensive Income (Loss) 
The components of accumulated other comprehensive loss are as follows:
 
 
 
in millions

 
2012

 
2011

Accumulated other comprehensive income (loss), net of taxes:
 
 
 
Unrealized net hedging gains (losses)
$
10

 
$
(7
)
Unrealized net gain on investments
1

 
1

Currency translation adjustment
(32
)
 
(35
)
Postretirement benefits reserve adjustments
(42
)
 
(38
)
Total accumulated other comprehensive loss
$
(63
)
 
$
(79
)
Schedule Of Components Of Other Comprehensive Income (Loss) 
The components of other comprehensive income (loss) are as follows:
 
 
 
 
 
in millions

 
Before Tax

 
Income Tax

 
After Tax

Fiscal 2012:
 
 
 
 
 
Net hedging loss reclassified to earnings
$
12

 
$
(5
)
 
$
7

Net hedging unrealized gain
16

 
(6
)
 
10

Currency translation adjustment
2

 
1

 
3

Net change in postretirement liabilities
(6
)
 
2

 
(4
)
Other comprehensive income (loss) – 2012
$
24

 
$
(8
)
 
$
16

Fiscal 2011:
 
 
 
 
 
Net hedging gain reclassified to earnings
$
(25
)
 
$
10

 
$
(15
)
Net hedging unrealized gain (loss)
4

 
(6
)
 
(2
)
Unrealized loss on investments
(12
)
 
4

 
(8
)
Currency translation adjustment
(42
)
 
1

 
(41
)
Net change in postretirement liabilities
(21
)
 
8

 
(13
)
Other comprehensive income (loss) – 2011
$
(96
)
 
$
17

 
$
(79
)
Fiscal 2010:
 
 
 
 
 
Net hedging loss reclassified to earnings
$
7

 
$
(1
)
 
$
6

Net hedging unrealized gain
7

 
(1
)
 
6

Currency translation adjustment
27

 
—

 
27

Net change in postretirement liabilities
(6
)
 
1

 
(5
)
Other comprehensive income (loss) – 2010
$
35

 
$
(1
)
 
$
34

Segment Reporting (Tables)
Schedule Of Segment Reporting Information, By Segment
 
in millions
 
 
Chicken

 
Beef

 
Pork

 
Prepared
Foods

 
Other

 
Intersegment
Sales

 
Consolidated

Fiscal year ended September 29, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,591

 
$
13,755

 
$
5,510

 
$
3,237

 
$
167

 
$
(982
)
 
$
33,278

Operating Income (Loss)
446

 
218

 
417

 
181

 
(14
)
 
 
 
1,248

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
321

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
927

Depreciation
268

 
86

 
30

 
54

 
5

 
 
 
443

Total Assets
5,902

 
2,634

 
895

 
960

 
1,505

 
 
 
11,896

Additions to property, plant and equipment
451

 
100

 
32

 
99

 
8

 
 
 
690

Fiscal year ended October 1, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
11,017

 
$
13,549

 
$
5,460

 
$
3,215

 
$
127

 
$
(1,102
)
 
$
32,266

Operating Income (Loss)
164

 
468

 
560

 
117

 
(24
)
 
 
 
1,285

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
211

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,074

Depreciation
259

 
84

 
28

 
58

 
4

 
 
 
433

Total Assets
5,412

 
2,610

 
960

 
943

 
1,146

 
 
 
11,071

Additions to property, plant and equipment
464

 
88

 
27

 
58

 
6

 
 
 
643

Fiscal year ended October 2, 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
$
10,062

 
$
11,707

 
$
4,552

 
$
2,999

 
$
—

 
$
(890
)
 
$
28,430

Operating Income (Loss)
519

 
542

 
381

 
124

 
(10
)
 
 
 
1,556

Total Other (Income) Expense
 
 
 
 
 
 
 
 
 
 
 
 
353

Income before Income Taxes
 
 
 
 
 
 
 
 
 
 
 
 
1,203

Depreciation
251

 
82

 
27

 
56

 
—

 
 
 
416

Total Assets
5,031

 
2,468

 
845

 
940

 
1,468

 
 
 
10,752

Additions to property, plant and equipment
320

 
61

 
27

 
42

 
100

 
 
 
550

Supplemental Cash Flow Information (Tables)
Schedule Of Cash Payments For Interest And Income Taxes
The following table summarizes cash payments for interest and income taxes:
 
 
 
 
 
in millions

 
2012

 
2011

 
2010

Interest, net of amounts capitalized
$
274

 
$
174

 
$
302

Income taxes, net of refunds
187

 
311

 
470

Commitments And Contingencies (Tables)
Schedule Of Minimum Lease Commitments Under Non-Cancelable Leases 
Minimum lease commitments under non-cancelable leases at September 29, 2012, were:
 
in millions

2013
$
101

2014
72

2015
47

2016
32

2017
21

2018 and beyond
55

Total
$
328

Schedule Of Future Purchase Commitments 
At September 29, 2012, these commitments totaled:
 
in millions

2013
$
819

2014
73

2015
36

2016
35

2017
26

2018 and beyond
86

Total
$
1,075

Quarterly Financial Data (Unaudited) (Tables)
Schedule Of Quarterly Financial Information
 
 
 
in millions, except per share data
 
 
First
Quarter

 
Second
Quarter

 
Third
Quarter

 
Fourth
Quarter

2012
 
 
 
 
 
 
 
Sales
$
8,329

 
$
8,268

 
$
8,308

 
$
8,373

Gross profit
493

 
535

 
562

 
570

Operating income
278

 
302

 
336

 
332

Net income
156

 
166

 
73

 
181

Net income attributable to Tyson
156

 
166

 
76

 
185

Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A Basic
$
0.43

 
$
0.47

 
$
0.21

 
$
0.53

Class B Basic
$
0.39

 
$
0.42

 
$
0.19

 
$
0.48

Diluted
$
0.42

 
$
0.44

 
$
0.21

 
$
0.51

2011
 
 
 
 
 
 
 
Sales
$
7,615

 
$
8,000

 
$
8,247

 
$
8,404

Gross profit
744

 
533

 
531

 
391

Operating income
498

 
303

 
312

 
172

Net income
294

 
156

 
188

 
95

Net income attributable to Tyson
298

 
159

 
196

 
97

Net income per share attributable to Tyson:
 
 
 
 
 
 
 
Class A Basic
$
0.81

 
$
0.43

 
$
0.53

 
$
0.27

Class B Basic
$
0.73

 
$
0.39

 
$
0.48

 
$
0.24

Diluted
$
0.78

 
$
0.42

 
$
0.51

 
$
0.26

Condensed Consolidating Financial Statements (Tables)
Schedule Of Condensed Consolidating Statement Of Income 
Condensed Consolidating Statement of Income for the year ended September 29, 2012
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
352

 
$
18,832

 
$
15,375

 
$
(1,281
)
 
$
33,278

Cost of Sales
(4
)
 
18,088

 
14,314

 
(1,280
)
 
31,118

Gross Profit
356

 
744

 
1,061

 
(1
)
 
2,160

Operating Expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative
59

 
205

 
649

 
(1
)
 
912

Goodwill impairment
—

 
—

 
—

 
—

 
—

Operating Income
297

 
539

 
412

 
—

 
1,248

 
 
 
 
 
 
 
 
 
 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
49

 
143

 
152

 
—

 
344

Other, net
1

 
—

 
(24
)
 
—

 
(23
)
Equity in net earnings of subsidiaries
(427
)
 
(43
)
 
—

 
470

 
—

Total Other (Income) Expense
(377
)
 
100

 
128

 
470

 
321

 
 
 
 
 
 
 
 
 
 
Income before Income Taxes
674

 
439

 
284

 
(470
)
 
927

Income Tax Expense (Benefit)
91

 
130

 
130

 
—

 
351

Net Income
583

 
309

 
154

 
(470
)
 
576

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
(7
)
 
—

 
(7
)
Net Income Attributable to Tyson
$
583

 
$
309

 
$
161

 
$
(470
)
 
$
583

Condensed Consolidating Statement of Income for the year ended October 1, 2011
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
157

 
$
18,636

 
$
14,700

 
$
(1,227
)
 
$
32,266

Cost of Sales
29

 
17,461

 
13,804

 
(1,227
)
 
30,067

Gross Profit
128

 
1,175

 
896

 
—

 
2,199

Operating Expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative
52

 
215

 
647

 
—

 
914

Goodwill impairment
—

 
—

 
—

 
—

 
—

Operating Income
76

 
960

 
249

 
—

 
1,285

 
 
 
 
 
 
 
 
 
 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
(26
)
 
148

 
109

 
—

 
231

Other, net
(9
)
 
—

 
(11
)
 
—

 
(20
)
Equity in net earnings of subsidiaries
(673
)
 
(115
)
 
—

 
788

 
—

Total Other (Income) Expense
(708
)
 
33

 
98

 
788

 
211

 
 
 
 
 
 
 
 
 
 
Income before Income Taxes
784

 
927

 
151

 
(788
)
 
1,074

Income Tax Expense (Benefit)
34

 
272

 
35

 
—

 
341

Net Income
750

 
655

 
116

 
(788
)
 
733

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
(17
)
 
—

 
(17
)
Net Income Attributable to Tyson
$
750

 
$
655

 
$
133

 
$
(788
)
 
$
750

Condensed Consolidating Statement of Income for the year ended October 2, 2010
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Sales
$
454

 
$
15,950

 
$
13,415

 
$
(1,389
)
 
$
28,430

Cost of Sales
16

 
14,867

 
12,422

 
(1,389
)
 
25,916

Gross Profit
438

 
1,083

 
993

 
—

 
2,514

Operating Expenses:
 
 
 
 
 
 
 
 
 
Selling, general and administrative
93

 
199

 
637

 
—

 
929

Goodwill impairment
—

 
—

 
29

 
—

 
29

Operating Income
345

 
884

 
327

 
—

 
1,556

 
 
 
 
 
 
 
 
 
 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
Interest expense, net
328

 
2

 
3

 
—

 
333

Other, net
25

 
1

 
(6
)
 
—

 
20

Equity in net earnings of subsidiaries
(782
)
 
(51
)
 
—

 
833

 
—

Total Other (Income) Expense
(429
)
 
(48
)
 
(3
)
 
833

 
353

 
 
 
 
 
 
 
 
 
 
Income before Income Taxes
774

 
932

 
330

 
(833
)
 
1,203

Income Tax Expense (Benefit)
(6
)
 
304

 
140

 
—

 
438

Net Income
780

 
628

 
190

 
(833
)
 
765

Less: Net Loss Attributable to Noncontrolling Interest
—

 
—

 
(15
)
 
—

 
(15
)
Net Income Attributable to Tyson
$
780

 
$
628

 
$
205

 
$
(833
)
 
$
780

Schedule Of Condensed Consolidating Balance Sheet 
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 Balance Sheet as of October 1, 2011
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Assets
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1

 
$
1

 
$
714

 
$
—

 
$
716

Accounts receivable, net
1

 
506

 
813

 
1

 
1,321

Inventories
2

 
926

 
1,659

 
—

 
2,587

Other current assets
62

 
95

 
83

 
(84
)
 
156

Total Current Assets
66

 
1,528

 
3,269

 
(83
)
 
4,780

Net Property, Plant and Equipment
37

 
875

 
2,911

 
—

 
3,823

Goodwill
—

 
881

 
1,011

 
—

 
1,892

Intangible Assets
—

 
31

 
118

 
—

 
149

Other Assets
2,179

 
180

 
260

 
(2,192
)
 
427

Investment in Subsidiaries
11,396

 
1,923

 
—

 
(13,319
)
 
—

Total Assets
$
13,678

 
$
5,418

 
$
7,569

 
$
(15,594
)
 
$
11,071

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
Current debt
$
2

 
$
—

 
$
68

 
$
—

 
$
70

Accounts payable
8

 
525

 
731

 
—

 
1,264

Other current liabilities
5,808

 
144

 
843

 
(5,755
)
 
1,040

Total Current Liabilities
5,818

 
669

 
1,642

 
(5,755
)
 
2,374

Long-Term Debt
1,972

 
1,198

 
1,005

 
(2,063
)
 
2,112

Deferred Income Taxes
—

 
120

 
319

 
(15
)
 
424

Other Liabilities
231

 
142

 
217

 
(114
)
 
476

 
 
 
 
 
 
 
 
 


Total Tyson Shareholders’ Equity
5,657

 
3,289

 
4,358

 
(7,647
)
 
5,657

Noncontrolling Interest
—

 
—

 
28

 
—

 
28

Total Shareholders’ Equity
5,657

 
3,289

 
4,386

 
(7,647
)
 
5,685

Total Liabilities and Shareholders’ Equity
$
13,678

 
$
5,418

 
$
7,569

 
$
(15,594
)
 
$
11,071

Schedule Of Condensed Consolidating Statement Of Cash Flows 
Condensed Consolidating Statement of Cash Flows for the year ended September 29, 2012
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
312

 
$
438

 
$
447

 
$
(10
)
 
$
1,187

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(1
)
 
(104
)
 
(585
)
 
—

 
(690
)
(Purchases of)/Proceeds from marketable securities, net
—

 
(7
)
 
(4
)
 
—

 
(11
)
Proceeds from notes receivable
—

 
—

 
—

 
—

 
—

Change in restricted cash to be used for investing activities
—

 
—

 
—

 
—

 
—

Other, net
1

 
5

 
35

 
—

 
41

Cash Provided by (Used for) Investing Activities
—

 
(106
)
 
(554
)
 
—

 
(660
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
107

 
—

 
16

 
—

 
123

Purchase of redeemable noncontrolling interest
—

 
—

 
—

 
—

 
—

Change in restricted cash to be used for financing activities
—

 
—

 
—

 
—

 
—

Purchases of Tyson Class A common stock
(264
)
 
—

 
—

 
—

 
(264
)
Dividends
(57
)
 
—

 
(10
)
 
10

 
(57
)
Other, net
26

 
—

 
1

 
—

 
27

Net change in intercompany balances
(124
)
 
(324
)
 
448

 
—

 
—

Cash Provided by (Used for) Financing Activities
(312
)
 
(324
)
 
455

 
10

 
(171
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(1
)
 
—

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

 
8

 
347

 
—

 
355

Cash and Cash Equivalents at Beginning of Year
1

 
1

 
714

 
—

 
716

Cash and Cash Equivalents at End of Period
$
1

 
$
9

 
$
1,061

 
$
—

 
$
1,071

Condensed Consolidating Statement of Cash Flows for the year ended October 1, 2011
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
31

 
$
564

 
$
471

 
$
(20
)
 
$
1,046

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(1
)
 
(107
)
 
(535
)
 
—

 
(643
)
(Purchases of)/Proceeds from marketable securities, net
—

 
(57
)
 
(23
)
 
—

 
(80
)
Proceeds from notes receivable
—

 
—

 
51

 
—

 
51

Change in restricted cash to be used for investing activities
—

 
—

 
—

 
—

 
—

Other, net
23

 
—

 
5

 
—

 
28

Cash Provided by (Used for) Investing Activities
22

 
(164
)
 
(502
)
 
—

 
(644
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(391
)
 
(6
)
 
12

 
—

 
(385
)
Purchase of redeemable noncontrolling interest
—

 
—

 
(66
)
 
—

 
(66
)
Change in restricted cash to be used for financing activities
—

 
—

 
—

 
—

 
—

Purchases of Tyson Class A common stock
(207
)
 
—

 
—

 
—

 
(207
)
Dividends
(59
)
 
—

 
(20
)
 
20

 
(59
)
Other, net
49

 
—

 
10

 
—

 
59

Net change in intercompany balances
554

 
(395
)
 
(159
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(54
)
 
(401
)
 
(223
)
 
20

 
(658
)
Effect of Exchange Rate Change on Cash
—

 
—

 
(6
)
 
—

 
(6
)
Increase (Decrease) in Cash and Cash Equivalents
(1
)
 
(1
)
 
(260
)
 
—

 
(262
)
Cash and Cash Equivalents at Beginning of Year
2

 
2

 
974

 
—

 
978

Cash and Cash Equivalents at End of Period
$
1

 
$
1

 
$
714

 
$
—

 
$
716

Condensed Consolidating Statement of Cash Flows for the year ended October 2, 2010
 
in millions
 
 
TFI
Parent

 
TFM
Parent

 
Non-
Guarantors

 
Eliminations

 
Total

Cash Provided by (Used for) Operating Activities
$
386

 
$
499

 
$
547

 
$
—

 
$
1,432

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
Additions to property, plant and equipment
(3
)
 
(85
)
 
(462
)
 
—

 
(550
)
(Purchases of)/Proceeds from marketable securities, net
—

 
—

 
(4
)
 
—

 
(4
)
Proceeds from notes receivable
—

 
—

 
—

 
—

 
—

Change in restricted cash to be used for investing activities
—

 
—

 
43

 
—

 
43

Other, net
(1
)
 
(1
)
 
13

 
—

 
11

Cash Provided by (Used for) Investing Activities
(4
)
 
(86
)
 
(410
)
 
—

 
(500
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
Net change in debt
(874
)
 
(149
)
 
(11
)
 
—

 
(1,034
)
Purchase of redeemable noncontrolling interest
—

 
—

 
—

 
—

 
—

Change in restricted cash to be used for financing activities
—

 
—

 
140

 
—

 
140

Purchases of Tyson Class A common stock
(48
)
 
—

 
—

 
—

 
(48
)
Dividends
(59
)
 
—

 
—

 
—

 
(59
)
Other, net
32

 
—

 
10

 
—

 
42

Net change in intercompany balances
569

 
(262
)
 
(307
)
 
—

 
—

Cash Provided by (Used for) Financing Activities
(380
)
 
(411
)
 
(168
)
 
—

 
(959
)
Effect of Exchange Rate Change on Cash
—

 
—

 
1

 
—

 
1

Increase (Decrease) in Cash and Cash Equivalents
2

 
2

 
(30
)
 
—

 
(26
)
Cash and Cash Equivalents at Beginning of Year
—

 
—

 
1,004

 
—

 
1,004

Cash and Cash Equivalents at End of Period
$
2

 
$
2

 
$
974

 
$
—

 
$
978

Valuation And Qualifying Accounts (Tables)
Schedule Of Valuation And Qualifying Accounts
Three Years Ended September 29, 2012

 
 
 
 
 
 
 
 
 
 
in millions

 
 
 
 
Additions
 
 
 
 
 
 
Balance at
Beginning
of Period

 
Charged to
Costs and
Expenses

 
Charged to
Other Accounts

 
(Deductions)

 
Balance at End
of Period

Allowance for Doubtful Accounts:
 
 
 
 
 
 
 
 
 
 
2012
 
$
31

 
$
7

 
$
—

 
$
(5
)
 
$
33

2011
 
32

 
3

 
—

 
(4
)
 
31

2010
 
33

 
—

 
—

 
(1
)
 
32

Inventory Lower of Cost or Market Allowance:
 
 
 
 
 
 
 
 
 
 
2012
 
$
6

 
$
52

 
$
—

 
$
(34
)
 
$
24

2011
 
2

 
12

 
—

 
(8
)
 
6

2010
 
22

 
7

 
—

 
(27
)
 
2

Valuation Allowance on Deferred Tax Assets:
 
 
 
 
 
 
 
 
 
 
2012
 
$
92

 
$
16

 
$
—

 
$
(30
)
 
$
78

2011
 
96

 
16

 
—

 
(20
)
 
92

2010
 
75

 
27

 
—

 
(6
)
 
96

Business And Summary Of Significant Accounting Policies (Schedule Of Inventories Of Processed Products, Livestock, And Supplies Valued At Lower Of Cost Or Market) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Processed products: [Abstract]
 
 
Weighted-average method - chicken and prepared foods
$ 754 
$ 715 
First-in, first-out method - beef and pork
611 
581 
Livestock - first-in, first-out method
952 
928 
Supplies and other - weighted-average method
492 
363 
Total inventory
$ 2,809 
$ 2,587 
Business and Summary Of Significant Accounting Policies (Share Repurchases) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 12 Months Ended
May 31, 2012
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
May 11, 2011
Accounting Policies [Line Items]
 
 
 
 
 
Purchases of treasury shares
 
$ 264 
$ 207 
$ 48 
 
Class A [Member]
 
 
 
 
 
Accounting Policies [Line Items]
 
 
 
 
 
Common shares repurchased during the period
 
14.3 
11.7 
3.2 
 
Purchases of treasury shares
 
264 
207 
48 
 
Share Repurchase Program [Member] |
Class A [Member]
 
 
 
 
 
Accounting Policies [Line Items]
 
 
 
 
 
Remaining shares available to repurchase
 
35.2 
 
 
22.5 
Increase in authorized shares to repurchase
35 
 
 
 
 
Common shares repurchased during the period
 
12.5 
9.7 
0 
 
Purchases of treasury shares
 
230 
170 
0 
 
Open Market Repurchases [Member] |
Class A [Member]
 
 
 
 
 
Accounting Policies [Line Items]
 
 
 
 
 
Common shares repurchased during the period
 
1.8 
2.0 
3.2 
 
Purchases of treasury shares
 
$ 34 
$ 37 
$ 48 
 
Business And Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)
12 Months Ended
Sep. 29, 2012
Classes
M
Oct. 1, 2011
Oct. 2, 2010
Accounting Policies [Line Items]
 
 
 
Brand name food products marketed to approximate number of countries worldwide
130 
 
 
Checks outstanding in excess of related book cash
$ 265,000,000 
$ 281,000,000 
 
Allowance for uncollectible accounts
33,000,000 
31,000,000 
 
Goodwill
1,891,000,000 
1,892,000,000 
1,893,000,000 
Goodwill impairment
0 
0 
29,000,000 
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% 
 
 
Cash dividends allowable to holders of Class B common stock without simultaneous payment to holders of Class A common stock
0 
 
 
Maximum length of time hedged anticipated transactions
18 
 
 
Advertising and promotion expenses
496,000,000 
552,000,000 
505,000,000 
Research and development costs
43,000,000 
42,000,000 
38,000,000 
Tyson Limited Partnership And Tyson Family [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Tyson family total voting power, percentage of outstanding voting stock
71.52% 
 
 
Class A [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Common stock, par value
$ 0.10 
$ 0.10 
 
Votes per share
1 
 
 
Dividends, per share
$ 0.160 
$ 0.160 
$ 0.160 
Class A [Member] |
Tyson Limited Partnership And Tyson Family [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Tyson family ownership percentage
2.53% 
 
 
Class B [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Common stock, par value
$ 0.10 
$ 0.10 
 
Votes per share
10 
 
 
Dividends, per share
$ 0.144 
$ 0.144 
$ 0.144 
Class B [Member] |
Tyson Limited Partnership [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Tyson family ownership percentage
99.977% 
 
 
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
177,000,000 
170,000,000 
 
Variable interest entity net property, plant and equipment
146,000,000 
144,000,000 
 
Variable interest entity total liabilities
124,000,000 
116,000,000 
 
Variable Interest Entity, Consolidated, Carrying Amount, Long-term Debt
100,000,000 
100,000,000 
 
Chicken [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Goodwill
948,000,000 
949,000,000 
950,000,000 
Goodwill impairment
0 
0 
29,000,000 
Beef [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Goodwill
563,000,000 
563,000,000 
563,000,000 
Goodwill impairment
0 
0 
 
Domestic Operations [Member] |
Chicken [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Goodwill
$ 900,000,000 
 
 
Buildings And Leasehold Improvements [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Estimated lives, minimum (years)
10 
 
 
Estimated lives, maximum (years)
33 
 
 
Machinery And Equipment [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Estimated lives, minimum (years)
3 
 
 
Estimated lives, maximum (years)
12 
 
 
Land Improvements and Other [Member]
 
 
 
Accounting Policies [Line Items]
 
 
 
Estimated lives, minimum (years)
3 
 
 
Estimated lives, maximum (years)
20 
 
 
Acquisitions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
1 Months Ended 48 Months Ended
Aug. 31, 2011
Shandong Tyson Xinchang Foods [Member]
May 31, 2011
Shandong Tyson Xinchang Foods [Member]
Aug. 31, 2009
Shandong Tyson Xinchang Foods [Member]
Sep. 29, 2012
Brazil Integrated Poultry Companies [Member]
Oct. 31, 2008
Brazil Integrated Poultry Companies [Member]
Business Acquisition [Line Items]
 
 
 
 
 
Ownership percentage
 
 
60.00% 
 
 
Purchase price
 
 
$ 21 
 
$ 67 
Cash transferred for future capital needs
 
 
93 
 
 
Purchase price of intangible assets
 
 
29 
 
19 
Purchase price of goodwill
 
 
19 
 
23 
Purchase price assumption of current and long-term debt
 
 
76 
 
 
Minority interest percentage purchased from exercise of put options
 
40.00% 
 
 
 
Transaction closed amount for purchase of minority partner intrerest
66 
 
 
 
 
Contingent purchase price
 
 
 
 
15 
Cash payments of contingent consideration
 
 
 
$ 10 
 
Property, Plant And Equipment (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 8,883 
$ 8,522 
Less accumulated depreciation
4,861 
4,699 
Net property, plant and equipment
4,022 
3,823 
Amount required to complete construction of buildings and equipment under construction
433 
 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
101 
95 
Buildings And Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
2,868 
2,698 
Machinery And Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
5,208 
4,897 
Land Improvements And Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
408 
386 
Buildings And Equipment Under Construction [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 298 
$ 446 
Goodwill And Other Intangible Assets (Goodwill Activity) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Goodwill [Roll Forward]
 
 
 
Goodwill, gross
$ 2,480 
$ 2,481 
$ 2,482 
Accumulated impairment losses
(589)
(589)
(589)
Goodwill, net
1,891 
1,892 
1,893 
Impairment losses
0 
0 
(29)
Currency translation and other
(1)
(1)
 
Chicken [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, gross
977 
978 
979 
Accumulated impairment losses
(29)
(29)
(29)
Goodwill, net
948 
949 
950 
Impairment losses
0 
0 
(29)
Currency translation and other
(1)
(1)
 
Beef [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, gross
1,123 
1,123 
1,123 
Accumulated impairment losses
(560)
(560)
(560)
Goodwill, net
563 
563 
563 
Impairment losses
0 
0 
 
Currency translation and other
0 
0 
 
Pork [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, gross
317 
317 
317 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
317 
317 
317 
Impairment losses
0 
0 
 
Currency translation and other
0 
0 
 
Prepared Foods [Member]
 
 
 
Goodwill [Roll Forward]
 
 
 
Goodwill, gross
63 
63 
63 
Accumulated impairment losses
0 
0 
0 
Goodwill, net
63 
63 
63 
Impairment losses
0 
0 
 
Currency translation and other
$ 0 
$ 0 
 
Goodwill And Other Intangible Assets (Other Intangible Assets By Type) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
Trademarks
$ 56 
$ 56 
Patents, intellectual property and other
142 
143 
Land use rights
21 
25 
Less Accumulated Amortization
90 
75 
Total Intangible Assets
$ 129 
$ 149 
Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Y
Oct. 1, 2011
Oct. 2, 2010
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Estimated period of benefit, minimum (years)
3 
 
 
Estimated period of benefit, maximum (years)
30 
 
 
Amortization expense on intangible assets
$ 16 
$ 18 
$ 19 
Estimated amortization expense on intangible assets, 2013
16 
 
 
Estimated amortization expense on intangible assets, 2014
15 
 
 
Estimated amortization expense on intangible assets, 2015
15 
 
 
Estimated amortization expense on intangible assets, 2016
14 
 
 
Estimated amortization expense on intangible assets, 2017
$ 12 
 
 
Other Current Liabilities (Other Current Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Other Liabilities, Current [Abstract]
 
 
Accrued salaries, wages and benefits
$ 382 
$ 407 
Self-insurance reserves
274 
298 
Other
287 
335 
Total other current liabilities
$ 943 
$ 1,040 
Debt (Major Components Of Debt) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Sep. 29, 2012
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 (2013 Notes) [Member]
Oct. 1, 2011
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 (2013 Notes) [Member]
Sep. 30, 2008
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 (2013 Notes) [Member]
Sep. 29, 2012
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Oct. 1, 2011
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Mar. 31, 2009
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Sep. 29, 2012
6.60% Senior Notes Due April 2016 (2016 Notes) [Member]
Oct. 1, 2011
6.60% Senior Notes Due April 2016 (2016 Notes) [Member]
Sep. 29, 2012
7.00% Notes Due May 2018 [Member]
Oct. 1, 2011
7.00% Notes Due May 2018 [Member]
Sep. 29, 2012
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Jun. 30, 2012
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Oct. 1, 2011
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Sep. 29, 2012
7.00% Notes Due January 2028 [Member]
Oct. 1, 2011
7.00% Notes Due January 2028 [Member]
Sep. 29, 2012
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Oct. 1, 2011
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility
$ 0 
$ 0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior Notes
 
 
458 
458 
 
0 
810 
 
638 
638 
120 
120 
1,000 
 
0 
18 
18 
 
 
Discount on senior notes
(28)
(76)
 
 
 
 
 
(59)
 
 
 
 
 
(5)
 
 
 
 
 
GO Zone tax-exempt bonds due October 2033
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100 
100 
Other
126 
114 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
2,432 
2,182 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less current debt
515 
70 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total long-term debt
$ 1,917 
$ 2,112 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stated interest rate
 
 
3.25% 
 
3.25% 
10.50% 
 
10.50% 
 
 
7.00% 
 
4.50% 
4.50% 
 
7.00% 
 
 
 
Interest rate at period end
 
 
 
 
 
 
 
 
6.60% 
 
 
 
 
 
 
 
 
0.20% 
 
Debt (Narrative) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Sep. 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]
Oct. 2, 2010
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]
Accounting Standards Update 2010-11 [Member]
Sep. 30, 2008
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]
Common Class A [Member]
Sep. 29, 2012
3.25% Convertible Senior Unsecured Notes Due October 15, 2013 [Member]
Common Class A [Member]
Jun. 30, 2012
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Mar. 31, 2009
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Jun. 30, 2012
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Sep. 29, 2012
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Sep. 27, 2008
2016 Notes [Member]
Jun. 30, 2012
2016 Notes [Member]
Prior To Credit Rating Adjustment [Member]
Apr. 2, 2011
2016 Notes [Member]
Prior To Credit Rating Adjustment [Member]
Oct. 2, 2010
2016 Notes [Member]
Prior To Credit Rating Adjustment [Member]
Jun. 30, 2012
2016 Notes [Member]
After Credit Rating Adjustment [Member]
Apr. 2, 2011
2016 Notes [Member]
After Credit Rating Adjustment [Member]
Oct. 2, 2010
2016 Notes [Member]
After Credit Rating Adjustment [Member]
Jun. 30, 2012
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Sep. 29, 2012
4.50% Senior Notes Due June 2022 (2022 Notes) [Member]
Nov. 30, 2008
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Oct. 31, 2008
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Sep. 29, 2012
GO Zone Tax-Exempt Bonds Due October 2033 [Member]
Sep. 29, 2012
Standby Letters of Credit [Member]
Sep. 29, 2012
Bilateral Letters Of Credit [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2013
$ 537,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2014
22,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2015
13,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2016
646,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturities of debt in 2017
4,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 
 
 
 
 
810,000,000 
 
 
 
 
 
 
 
 
 
1,000,000,000 
 
 
 
 
 
 
Interest rate
 
 
 
3.25% 
3.25% 
 
 
 
 
10.50% 
 
10.50% 
6.60% 
 
 
 
 
 
 
4.50% 
4.50% 
 
 
 
 
 
Conversion rate
 
 
 
 
 
 
59.1935 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal amounts for conversion
 
 
 
 
1,000 
 
 
1,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion price, per share
 
 
 
 
 
 
$ 16.89 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Subordinated Exchangeable Threshold Period, During Trading Period Evaluation (Days)
 
 
 
 
 
 
 
20 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Subordinated Exchangeable Trading Period Evaluation in Preceding Quarter (Days)
 
 
 
 
 
 
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum percentage of exhange price
 
 
 
 
 
 
 
130.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Subordinated Exchange Price, Minimum
 
 
 
 
 
 
 
$ 21.96 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Trading Period (Days)
 
 
 
 
 
 
 
5 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Convertible, Subordinated Exchangeable Measurement Period (Days)
 
 
 
 
 
 
 
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 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Option Indexed to Issuer's Equity, Strike Price
 
 
 
 
 
 
16.89 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proceeds from sale of warrants
 
 
 
 
 
 
44,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares able to be purchased through warrants
 
 
 
 
 
 
27 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise price of warrants, per share
 
 
 
 
 
 
22.31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum amount of shares that may be issued to satisfy conversion
 
 
 
 
 
 
 
35.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sensitivity of increase in stock price that would result in the issuance of additional stock
 
 
 
 
 
 
 
10.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion price factoring convertible note hedge and warrant transactions, per share
 
 
 
 
 
 
 
$ 22.31 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional stock issuance if increase in share price of 10%
 
 
 
 
 
 
 
2.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Unamortized Discount
28,000,000 
76,000,000 
 
 
 
 
 
 
 
59,000,000 
 
 
 
 
 
 
 
 
 
5,000,000 
 
 
 
 
 
 
Issue price percent of face value
 
 
 
 
 
 
 
 
 
92.756% 
 
 
 
 
 
 
 
 
 
99.458% 
 
 
 
 
 
 
Extinguishment of Debt, Amount
 
 
 
 
 
 
 
 
790,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on early extinguishment of debt
(167,000,000)
0 
0 
 
 
 
 
 
(167,000,000)
 
(167,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate at period end
 
 
 
 
 
 
 
 
 
 
 
 
 
6.85% 
7.35% 
7.85% 
6.60% 
6.85% 
7.35% 
 
 
 
 
0.20% 
 
 
Proceeds from Issuance of Unsecured Debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
995,000,000 
 
 
 
 
 
 
Payments of Debt Issuance Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,000,000 
 
 
 
 
 
 
Proceeds from the sale of Gulf Opportunity Zone tax-exempt bonds
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100,000,000 
 
 
 
Interest rate swap period (years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
 
Income Taxes (Provision For Income Taxes From Continuing Operations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Income Tax Expense (Benefit) [Abstract]
 
 
 
Federal
$ 310 
$ 320 
$ 374 
State
22 
21 
44 
Foreign
19 
0 
20 
Current
211 
255 
420 
Deferred
140 
86 
18 
Income Tax Expense
$ 351 
$ 341 
$ 438 
Income Taxes (Reasons For Differences Between Statutory Federal Tax Rate And Effective Income Tax Rate) (Details)
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Income Tax Expense (Benefit) [Abstract]
 
 
 
Federal income tax rate
35.00% 
35.00% 
35.00% 
State income taxes
1.60% 
1.60% 
2.40% 
Unrecognized tax benefits, net
0.60% 
(1.70%)
(1.40%)
General business credits
(0.80%)
(0.90%)
(0.70%)
Domestic production deduction
(1.90%)
(2.30%)
(2.00%)
Foreign rate differences and valuation allowances
3.30% 
0.20% 
2.30% 
Other
0.10% 
(0.10%)
0.80% 
Effective income tax rate
37.90% 
31.80% 
36.40% 
Income Taxes (Tax Effects Of Major Items Recorded As Deferred Tax Assets And Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Income Tax Expense (Benefit) [Abstract]
 
 
Deferred Tax Assets, Property, plant and equipment
$ 0 
$ 0 
Deferred Tax Liabilities, Property, plant and equipment
542 
401 
Deferred Tax Assets, Suspended taxes from conversion to accrual method
0 
0 
Deferred Tax Liabilities, Suspended taxes from conversion to accrual method
76 
81 
Deferred Tax Assets, Intangible assets
0 
0 
Deferred Tax Liabilities, Intangible assets
35 
35 
Deferred Tax Assets, Inventory
9 
9 
Deferred Tax Liabilities, Inventory
105 
113 
Deferred Tax Assets, Accrued expenses
193 
196 
Deferred Tax Liabilities, Accrued expenses
0 
0 
Deferred Tax Assets, Net operating loss and other carryforwards
101 
97 
Deferred Tax Liabilities, Net operating loss and other carryforwards
0 
0 
Deferred Tax Assets, Insurance reserves
21 
23 
Deferred Tax Liabilities, Insurance reserves
0 
0 
Deferred Tax Assets, Other
69 
80 
Deferred Tax Liabilities, Other
90 
68 
Deferred Tax Assets, Gross
393 
405 
Deferred Tax Liabilities, Gross
848 
698 
Deferred Tax Assets, Valuation allowance
(78)
(92)
Net deferred tax liabilities
$ 533 
$ 385 
Income Taxes (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Income Tax Disclosures [Line Items]
 
 
 
Foreign tax rate differences from statutory federal rate
2.20% 
 
 
Reduction in foreign valuation allowance
$ 11 
 
 
Domestic production deduction
17 
25 
24 
Reduction in unrecognized tax benefits
 
19 
16 
General buisness credits
 
9 
 
Income (Loss) from Continuing Operations before Income Taxes, Foreign
(36)
32 
(27)
Tax Credit Carryforward, Amount
22 
 
 
Undistributed Foreign Earnings
230 
339 
 
Unrecognized tax benefits that would impact effective tax rate
154 
155 
 
Unrecognized tax benefits, income tax penalties and interest accrued
64 
58 
 
Unrecognized tax benefits, changes that could result from tax audit resolutions
20 
 
 
Minimum [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Tax Credit Carryforward, Expiration Dates
2013 
 
 
Maximum [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Tax Credit Carryforward, Expiration Dates
2026 
 
 
State and Local Jurisdiction [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating Loss Carryforwards
580 
 
 
State and Local Jurisdiction [Member] |
Minimum [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating Loss Carryforwards, Expiration Dates
2013 
 
 
State and Local Jurisdiction [Member] |
Maximum [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating Loss Carryforwards, Expiration Dates
2032 
 
 
Foreign Country [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating Loss Carryforwards
215 
 
 
Foreign Country [Member] |
Minimum [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating Loss Carryforwards, Expiration Dates
2013 
 
 
Foreign Country [Member] |
Maximum [Member]
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating Loss Carryforwards, Expiration Dates
2022 
 
 
Foreign Country [Member] |
Expiring Member
 
 
 
Income Tax Disclosures [Line Items]
 
 
 
Operating Loss Carryforwards
$ 112 
 
 
Other Income And Charges (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Jan. 1, 2011
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Components of Other Income and Expenses [Line Items]
 
 
 
 
Equity Earnings In Joint Ventures
 
$ 16 
 
 
Foreign currency exchange gains, net
 
4 
 
 
Gain on disposal of an equity method investment
11 
 
11 
 
Equity Method Investment Impairment
 
 
 
12 
Chicken [Member]
 
 
 
 
Components of Other Income and Expenses [Line Items]
 
 
 
 
Insurance Recoveries
 
 
 
$ 38 
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 12 Months Ended
Sep. 29, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Oct. 1, 2011
Jul. 2, 2011
Apr. 2, 2011
Jan. 1, 2011
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
$ 181 
$ 73 
$ 166 
$ 156 
$ 95 
$ 188 
$ 156 
$ 294 
$ 576 
$ 733 
$ 765 
Less: Net Loss Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
(7)
(17)
(15)
Net Income Attributable to Tyson
185 
76 
166 
156 
97 
196 
159 
298 
583 
750 
780 
Undistributed earnings
 
 
 
 
 
 
 
 
526 
691 
721 
Stock options and restricted stock
 
 
 
 
 
 
 
 
4 
6 
6 
Convertible 2013 Notes
 
 
 
 
 
 
 
 
3 
1 
0 
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions
 
 
 
 
 
 
 
 
370 
380 
379 
Net Income Per Share Attributable to Tyson - Diluted
$ 0.51 
$ 0.21 
$ 0.44 
$ 0.42 
$ 0.26 
$ 0.51 
$ 0.42 
$ 0.78 
$ 1.58 
$ 1.97 
$ 2.06 
Class A [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Less Dividends:
 
 
 
 
 
 
 
 
47 
49 
49 
Undistributed earnings
 
 
 
 
 
 
 
 
433 
572 
597 
Weighted average number of shares outstanding - Basic
 
 
 
 
 
 
 
 
293 
303 
303 
Net Income Per Share Attributable to Tyson - Basic
$ 0.53 
$ 0.21 
$ 0.47 
$ 0.43 
$ 0.27 
$ 0.53 
$ 0.43 
$ 0.81 
$ 1.64 
$ 2.04 
$ 2.13 
Dividends, per share
 
 
 
 
 
 
 
 
$ 0.160 
$ 0.160 
$ 0.160 
Class B [Member]
 
 
 
 
 
 
 
 
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Less Dividends:
 
 
 
 
 
 
 
 
10 
10 
10 
Undistributed earnings
 
 
 
 
 
 
 
 
$ 93 
$ 119 
$ 124 
Weighted average number of shares outstanding - Basic
 
 
 
 
 
 
 
 
70 
70 
70 
Net Income Per Share Attributable to Tyson - Basic
$ 0.48 
$ 0.19 
$ 0.42 
$ 0.39 
$ 0.24 
$ 0.48 
$ 0.39 
$ 0.73 
$ 1.48 
$ 1.84 
$ 1.91 
Dividends, per share
 
 
 
 
 
 
 
 
$ 0.144 
$ 0.144 
$ 0.144 
Earnings Per Share (Narrative) (Details)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
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
1.0 
 
 
Class B [Member]
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
Undistributed earnings (losses), ratio used to calculate allocation to class of stock
0.9 
 
 
Stock-based compensation [Member]
 
 
 
Earnings Per Share, Basic and Diluted [Line Items]
 
 
 
Antidilutive securities excluded from computation of earnings per share, shares
4 
4 
5 
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
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ 16 
$ 4 
$ 7 
Gain/(Loss) Reclassified from OCI to Earnings
(12)
25 
(5)
Commodity Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
24 
(5)
6 
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Reclassified from OCI to Earnings
(16)
25 
(6)
Foreign Exchange Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
(8)
9 
1 
Foreign Exchange Contracts [Member] |
Other Income/Expense [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Reclassified from OCI to Earnings
$ 4 
$ 0 
$ 1 
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
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Forward Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) on forwards
$ 47 
$ (78)
$ (58)
Purchase Contracts [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) on forwards
$ (47)
$ 78 
$ 58 
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
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in OCI on Derivatives
$ (2)
$ (2)
$ (1)
Other Income/Expense [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Reclassified from OCI to Earnings
$ 0 
$ 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
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
$ 41 
$ 15 
$ 3 
Commodity Contracts [Member] |
Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
(10)
20 
27 
Commodity Contracts [Member] |
Cost of Sales [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
51 
(2)
(20)
Foreign Exchange Contracts [Member] |
Other Income/Expense [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
0 
(3)
(5)
Interest Rate Contracts [Member] |
Interest Expense [Member]
 
 
 
Derivative [Line Items]
 
 
 
Gain/(Loss) Recognized in Earnings
$ 0 
$ 0 
$ 1 
Derivative Financial Instruments (Fair Value Of All Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Derivative [Line Items]
 
 
Derivative Assets
$ 54 
$ 41 
Derivative Liabilities
105 
165 
Designated as Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
32 
15 
Derivative Liabilities
7 
41 
Designated as Hedging Instrument [Member] |
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
32 
3 
Derivative Liabilities
6 
41 
Designated as Hedging Instrument [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
0 
12 
Derivative Liabilities
1 
0 
Nondesignated [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
22 
26 
Derivative Liabilities
98 
124 
Nondesignated [Member] |
Commodity Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
21 
21 
Derivative Liabilities
96 
121 
Nondesignated [Member] |
Foreign Exchange Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Assets
1 
5 
Derivative Liabilities
2 
1 
Nondesignated [Member] |
Interest Rate Contracts [Member]
 
 
Derivative [Line Items]
 
 
Derivative Liabilities
$ 0 
$ 2 
Derivative Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
M
Sep. 29, 2012
Grain [Member]
Sep. 29, 2012
Foreign Currency [Member]
Sep. 29, 2012
Net Investment Hedging [Member]
Oct. 1, 2011
Net Investment Hedging [Member]
Derivative [Line Items]
 
 
 
 
 
Maximum length of time hedged forecasted transactions, months
18 
 
 
 
 
Cash flow hedge gain (loss) to be reclassified within twelve months
 
$ 18 
$ (2)
 
 
Notional amount of foreign currency derivatives
 
 
 
$ 27 
$ 35 
Maximum length of time hedged undesignated positions, months
18 
 
 
 
 
Fair Value Measurements (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative assets and liabilities posted cash collateral
$ 59 
$ 113 
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign Exchange Forward Contracts, Assets
0 
15 
Deferred Compensation Assets
180 
150 
Total Assets
313 
292 
Foreign Exchange Forward Contracts, Liabilities
3 
0 
Total Liabilities
5 
29 
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign Exchange Forward Contracts, Assets
0 
0 
Deferred Compensation Assets
31 
28 
Total Assets
37 
35 
Foreign Exchange Forward Contracts, Liabilities
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]
 
 
Foreign Exchange Forward Contracts, Assets
1 
17 
Deferred Compensation Assets
149 
122 
Total Assets
231 
197 
Foreign Exchange Forward Contracts, Liabilities
3 
1 
Total Liabilities
105 
165 
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Foreign Exchange Forward Contracts, Assets
0 
0 
Deferred Compensation Assets
0 
0 
Total Assets
86 
83 
Foreign Exchange Forward Contracts, Liabilities
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]
 
 
Foreign Exchange Forward Contracts, Assets
(1)1
(2)1
Deferred Compensation Assets
0 1
0 1
Total Assets
(41)1
(23)1
Foreign Exchange Forward Contracts, Liabilities
0 1
(1)1
Total Liabilities
(100)1
(136)1
Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available for Sale Securities:
113 
117 
Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available for Sale Securities:
0 
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:
27 
34 
Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available for Sale Securities:
86 
83 
Fair Value, Measurements, Recurring [Member] |
Debt Securities [Member] |
Netting [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available for Sale Securities:
0 1
0 1
Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available for Sale Securities:
7 
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:
6 
7 
Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member] |
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available for Sale Securities:
1 
0 
Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available for Sale Securities:
0 
0 
Fair Value, Measurements, Recurring [Member] |
Equity Securities [Member] |
Netting [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Available for Sale Securities:
0 1
0 1
Commodity [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Commodity Derivatives
13 
3 
Derivative Financial Instruments, Liabilities
2 
27 
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
53 
24 
Derivative Financial Instruments, Liabilities
102 
162 
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
(40)1
(21)1
Derivative Financial Instruments, Liabilities
(100)1
(135)1
Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Financial Instruments, Liabilities
0 
2 
Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Financial Instruments, Liabilities
0 
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
0 
2 
Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Financial Instruments, Liabilities
0 
0 
Interest Rate Swap [Member] |
Fair Value, Measurements, Recurring [Member] |
Netting [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Derivative Financial Instruments, Liabilities
$ 0 1
$ 0 1
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
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
 
Balance at beginning of year
$ 83 
$ 73 
Total realized and unrealized gains (losses), Included in earnings
1 
0 
Total realized and unrealized gains (losses), Included in other comprehensive income (loss)
0 
(1)
Purchases
28 
31 
Issuances
0 
0 
Settlements
(26)
(20)
Balance at end of year
86 
83 
Total gains (losses) for the periods included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at end of year
$ 0 
$ 0 
Fair Value Measurements (Schedule Of Available For Sale Securities) (Details) (USD $)
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
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 
$ 3,000,000 
U.S. Treasury and Agency [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
26,000,000 
33,000,000 
Fair Value
27,000,000 
34,000,000 
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
64,000,000 1
54,000,000 1
Fair Value
66,000,000 1
56,000,000 1
Unrealized Gain/(Loss)
2,000,000 1
2,000,000 1
Redeemable Preferred Stock [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Amortized Cost Basis
20,000,000 
27,000,000 
Fair Value
20,000,000 
27,000,000 
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
7,000,000 
7,000,000 
Unrealized Gain/(Loss)
(2,000,000)
(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
8,000,000 
 
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
4,250,000 
 
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
Sep. 29, 2012
Oct. 1, 2011
Fair Value Disclosures [Abstract]
 
 
Total Debt, Fair Value
$ 2,596 
$ 2,334 
Total Debt, Carrying Value
$ 2,432 
$ 2,182 
Fair Value Measurements Fair Value Measurements (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Fair Value Measurements [Line Items]
 
 
 
Goodwill impairment
$ 0 
$ 0 
$ 29 
Accounts Receivable [Member] |
Customer Concentration Risk [Member] |
Wal-Mart Stores, Inc. [Member]
 
 
 
Fair Value Measurements [Line Items]
 
 
 
Concentration, Percentage
17.10% 
16.50% 
 
Chicken [Member]
 
 
 
Fair Value Measurements [Line Items]
 
 
 
Goodwill impairment
$ 0 
$ 0 
$ 29 
Stock-Based Compensation (Summary Of Stock Options) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Y
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Shares Under Option - Outstanding, October 1, 2011
18,255,221 
Shares Under Option - Exercised
(2,776,130)
Shares Under Option - Canceled
(365,971)
Shares Under Option - Granted
3,954,240 
Shares Under Option - Outstanding, September 29, 2012
19,067,360 
Weighted Average Exercise Price Per Share - Outstanding, October 1, 2011
$ 13.46 
Weighted Average Exercise Price Per Share - Exercised
$ 12.66 
Weighted Average Exercise Price Per Share - Canceled
$ 15.25 
Weighted Average Exercise Price Per Share - Granted
$ 19.63 
Weighted Average Exercise Price Per Share - Outstanding, September 29, 2012
$ 14.82 
Weighted Average Remaining Contractual Life (in Years) - Outstanding, September 29, 2012
6.0 
Aggregate Intrinsic Value - Outstanding, September 29, 2012
$ 38 
Shares Under Option - Exercisable, September 29, 2012
10,540,898 
Weighted Average Exercise Price Per Share - Exercisable at September 29, 2012
$ 14.00 
Weighted Average Remaining Contractual Life (in Years) - Exercisable, September 29, 2012
4.4 
Aggregate Intrinsic Value - Exercisable, September 29, 2012
$ 22 
Stock-Based Compensation (Assumption Of Fair Value Calculation Of Each Year's Grants) (Details)
12 Months Ended
Sep. 29, 2012
Y
Oct. 1, 2011
Y
Oct. 2, 2010
Y
Share-based Compensation [Abstract]
 
 
 
Expected life (in years)
6.7 
6.7 
6.5 
Risk-free interest rate
0.90% 
1.50% 
1.20% 
Expected volatility
36.60% 
38.80% 
40.40% 
Expected dividend yield
1.00% 
1.00% 
1.30% 
Stock-Based Compensation (Summary Of Restricted Stock) (Details) (Restricted Stock [Member], USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Y
Oct. 1, 2011
Oct. 2, 2010
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
 
 
Number of Shares - Nonvested, October 1, 2011
2,970,302 
 
 
Number of Shares - Granted
639,421 
 
 
Number of Shares - Dividends
20,587 
 
 
Number of Shares - Vested
(1,152,468)
(900,000)
(1,800,000)
Number of Shares - Forfeited
(106,272)
 
 
Number of Shares - Nonvested, September 29, 2012
2,371,570 
2,970,302 
 
Weighted Average Grant-Date Fair Value Per Share - Nonvested, October 1, 2011
$ 14.70 
 
 
Weighted Average Grant-Date Fair Value Per Share - Granted
$ 17.73 
 
 
Weighted Average Grant-Date Fair Value Per Share - Dividends
$ 18.79 
 
 
Weighted Average Grant-Date Fair Value Per Share - Vested
$ 15.20 
 
 
Weighted Average Grant-Date Fair Value Per Share - Forfeited
$ 16.30 
 
 
Weighted Average Grant-Date Fair Value Per Share - Nonvested, September 29, 2012
$ 15.29 
$ 14.70 
 
Weighted Average Remaining Contractual Life (in Years), Nonvested, September 29, 2012
1.0 
 
 
Aggregate Intrinsic Value Nonvested, September 29, 2012
$ 38 
 
 
Stock-Based Compensation (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Y
Oct. 1, 2011
Oct. 2, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Shares available for future grant
10,795,188 
 
 
Stock Options [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting maximum period, years
3 
 
 
Grant-date fair value of options granted
$ 6.99 
$ 6.19 
$ 4.76 
Stock-based compensation expense, net of income taxes
$ 15 
$ 12 
$ 11 
Related tax benefit
10 
7 
7 
Stock options, options vested
3,400,000 
3,800,000 
2,200,000 
Fair value of stock options vested
17 
16 
13 
Cash received from exercise of stock options
34 
51 
31 
Tax benefit related to stock options exercised
7 
10 
5 
Total intrinsic value of options exercised
21 
26 
12 
Tax deductions in excess of compensation cost of options (excess tax deductions)
3 
5 
3 
Total unrecognized compensation cost
27 
 
 
Total unrecognized compensation cost, time frame for recognition, weighted average number of years
1.1 
 
 
Restricted Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock-based compensation expense, net of income taxes
7 
7 
8 
Related tax benefit
4 
5 
5 
Total unrecognized compensation cost
13 
 
 
Total unrecognized compensation cost, time frame for recognition, weighted average number of years
1.0 
 
 
Restricted stock awards, shares vested
1,152,468 
900,000 
1,800,000 
Restricted stock awards, grant date fair value
$ 17 
$ 14 
$ 30 
Performance Based Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period, years
3 years 
 
 
Maximum [Member] |
Stock Options [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Vesting period, years
10 years 
 
 
Pensions And Other Postretirement Benefits (Reconciliation Of Changes In Plans' Benefit Obligations, Assets And Funded Status) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Employer contributions
$ 8 
$ 7 
$ 4 
Ending balance
86 
 
 
Defined Pension Benefits [Member] |
Qualified [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
99 
97 
 
Service cost
0 
0 
0 
Interest cost
4 
5 
5 
Plan participants' contributions
0 
0 
 
Actuarial loss
5 
3 
 
Benefits paid
(7)
(6)
 
Benefit obligation at end of year
101 
99 
97 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
74 
74 
 
Actual return on plan assets
13 
1 
 
Employer contributions
6 
5 
 
Plan participants' contributions
0 
0 
 
Benefits paid
(7)
(6)
 
Ending balance
86 
74 
74 
Funded status
(15)
(25)
 
Defined Pension Benefits [Member] |
Non-Qualified [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
62 
42 
 
Service cost
5 
3 
3 
Interest cost
3 
2 
2 
Plan participants' contributions
0 
0 
 
Actuarial loss
13 
17 
 
Benefits paid
(2)
(2)
 
Benefit obligation at end of year
81 
62 
42 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
0 
0 
 
Actual return on plan assets
0 
0 
 
Employer contributions
2 
2 
 
Plan participants' contributions
0 
0 
 
Benefits paid
(2)
(2)
 
Ending balance
0 
0 
0 
Funded status
(81)
(62)
 
Other Postretirement Benefits [Member]
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
Benefit obligation at beginning of year
44 
45 
 
Service cost
1 
0 
1 
Interest cost
2 
2 
2 
Plan participants' contributions
1 
1 
 
Actuarial loss
25 
4 
 
Benefits paid
(9)
(8)
 
Benefit obligation at end of year
64 
44 
45 
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
 
 
 
Beginning balance
0 
0 
 
Actual return on plan assets
0 
0 
 
Employer contributions
8 
7 
 
Plan participants' contributions
1 
1 
 
Benefits paid
(9)
(8)
 
Ending balance
0 
0 
0 
Funded status
$ (64)
$ (44)
 
Pensions And Other Postretirement Benefits (Amounts Recognized In The Consolidated Balance Sheets) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Defined Pension Benefits [Member] |
Qualified [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accrued benefit liability
$ (15)
$ (25)
Unrecognized actuarial loss
39 
45 
Unrecognized prior service (cost)/credit
0 
0 
Net amount recognized
24 
20 
Defined Pension Benefits [Member] |
Non-Qualified [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accrued benefit liability
(81)
(62)
Unrecognized actuarial loss
29 
17 
Unrecognized prior service (cost)/credit
1 
2 
Net amount recognized
(51)
(43)
Other Postretirement Benefits [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Accrued benefit liability
(64)
(44)
Unrecognized actuarial loss
0 
0 
Unrecognized prior service (cost)/credit
(4)
(5)
Net amount recognized
$ (68)
$ (49)
Pensions And Other Postretirement Benefits (Plans With Accumulated Benefit Obligations In Excess Of Plan Assets) (Details) (Defined Pension Benefits [Member], USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Qualified [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Projected benefit obligation
$ 101 
$ 99 
Accumulated benefit obligation
101 
99 
Fair value of plan assets
86 
74 
Non-Qualified [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Projected benefit obligation
81 
62 
Accumulated benefit obligation
69 
55 
Fair value of plan assets
$ 0 
$ 0 
Pensions And Other Postretirement Benefits (Components Of Net Periodic Benefit Cost For Pension And Postretirement Benefit Plans Recognized In The Consolidated Statements Of Income) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Defined Pension Benefits [Member] |
Qualified [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
$ 0 
$ 0 
$ 0 
Interest cost
4 
5 
5 
Expected return on plan assets
(6)
(6)
(6)
Amortization of prior service cost
0 
0 
0 
Recognized actuarial loss, net
3 
3 
1 
Net periodic benefit cost
1 
2 
0 
Defined Pension Benefits [Member] |
Non-Qualified [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
5 
3 
3 
Interest cost
3 
2 
2 
Expected return on plan assets
0 
0 
0 
Amortization of prior service cost
1 
1 
1 
Recognized actuarial loss, net
1 
0 
0 
Net periodic benefit cost
10 
6 
6 
Other Postretirement Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost
1 
0 
1 
Interest cost
2 
2 
2 
Expected return on plan assets
0 
0 
0 
Amortization of prior service cost
(1)
(1)
(1)
Recognized actuarial loss, net
24 
1 
0 
Net periodic benefit cost
$ 26 
$ 2 
$ 2 
Pensions And Other Postretirement Benefits (Weighted Average Assumptions) (Details)
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Defined Pension Benefits [Member] |
Qualified [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
4.53% 
5.06% 
6.00% 
Discount rate to determine benefit obligations
4.02% 
4.53% 
5.06% 
Expected return on plan assets
6.37% 
7.79% 
7.80% 
Defined Pension Benefits [Member] |
Non-Qualified [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
4.75% 
5.50% 
6.00% 
Discount rate to determine benefit obligations
4.23% 
4.75% 
5.50% 
Rate of compensation increase
3.50% 
3.50% 
3.50% 
Other Postretirement Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Discount rate to determine net periodic benefit cost
4.09% 
4.50% 
5.71% 
Discount rate to determine benefit obligations
3.66% 
4.09% 
4.50% 
Pensions And Other Postretirement Benefits (Actual And Target Asset Allocation For Pension Plan Assets) (Details)
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
General Discussion of Pension and Other Postretirement Benefits [Abstract]
 
 
Actual Plan Asset Allocations - Cash
1.60% 
1.90% 
Actual Plan Asset Allocations - Fixed Income Securities
46.00% 
24.20% 
Actual Plan Asset Allocations - US Stock Funds
23.50% 
41.40% 
Actual Plan Asset Allocations - International Stock Funds
23.50% 
17.70% 
Actual Plan Asset Allocations - Real Estate
5.00% 
4.70% 
Actual Plan Asset Allocations - Alternatives
0.40% 
10.10% 
Actual Plan Asset Allocations - Total
100.00% 
100.00% 
Target Plan Asset Allocations - Cash
2.00% 
 
Target Plan Asset Allocations - Fixed Income Securities
38.00% 
 
Target Plan Asset Allocations - US Stock Funds
22.50% 
 
Target Plan Asset Allocations - International Stock Funds
22.50% 
 
Target Plan Asset Allocations - Real Estate
5.00% 
 
Target Plan Asset Allocations - Alternatives
10.00% 
 
Target Plan Asset Allocations - Total
100.00% 
 
Pensions And Other Postretirement Benefits (Categories Of Pension Plan Assets And Level Under Which Fair Values Were Determined In Fair Value Hierarchy) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
$ 86 
 
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
69 
 
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
17 
21 
Cash and Cash Equivalents [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
1 
 
Cash and Cash Equivalents [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
1 
 
Cash and Cash Equivalents [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Cash and Cash Equivalents [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
U.S. Stock Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
16 
 
U.S. Stock Funds [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
16 
 
U.S. Stock Funds [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
U.S. Stock Funds [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
International Stock Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
16 
 
International Stock Funds [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
16 
 
International Stock Funds [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
International Stock Funds [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Global Real Estate Funds [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
4 
 
Global Real Estate Funds [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
4 
 
Global Real Estate Funds [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Global Real Estate Funds [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Equity Securities [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
36 
 
Equity Securities [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
36 
 
Equity Securities [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Equity Securities [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Total Fair Value [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
69 
 
Total Fair Value [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
69 
 
Total Fair Value [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Total Fair Value [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Insurance Contract [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
17 
 
Insurance Contract [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Insurance Contract [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Insurance Contract [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
17 
 
Fixed Income Securities Bond Fund [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
32 
 
Fixed Income Securities Bond Fund [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
32 
 
Fixed Income Securities Bond Fund [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Fixed Income Securities Bond Fund [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Other Investments [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Other Investments [Member] |
Level 1 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Other Investments [Member] |
Level 2 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
0 
 
Other Investments [Member] |
Level 3 [Member]
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Defined benefit pension plan assets
$ 0 
 
Pensions And Other Postretirement Benefits (Reconciliation Of Change In Fair Value Measurement Of Defined Benefit Plans' Consolidated Assets Using Significant Unobservable Inputs) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Defined Benefit Plan Disclosure [Line Items]
 
Ending balance
$ 86 
Level 3 [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Beginning balance
21 
Assets still held at reporting date
2 
Assets sold during the period
0 
Purchases, sales and settlements, net
(6)
Transfers in and/or out of Level 3
0 
Ending balance
17 
Level 3 [Member] |
Alternative Funds [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Beginning balance
6 
Assets still held at reporting date
0 
Assets sold during the period
0 
Purchases, sales and settlements, net
(6)
Transfers in and/or out of Level 3
0 
Ending balance
0 
Level 3 [Member] |
Insurance Contract [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
Beginning balance
15 
Assets still held at reporting date
2 
Assets sold during the period
0 
Purchases, sales and settlements, net
0 
Transfers in and/or out of Level 3
0 
Ending balance
$ 17 
Pensions And Other Postretirement Benefits (Estimated Future Benefit Payments Expected To Be Paid) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Defined Pension Benefits [Member] |
Qualified [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2013
$ 7 
2014
7 
2015
7 
2016
6 
2017
6 
2018-2022
29 
Defined Pension Benefits [Member] |
Non-Qualified [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2013
2 
2014
3 
2015
3 
2016
3 
2017
4 
2018-2022
24 
Other Postretirement Benefits [Member]
 
Defined Benefit Plan Disclosure [Line Items]
 
2013
5 
2014
5 
2015
5 
2016
5 
2017
5 
2018-2022
$ 24 
Pensions And Other Postretirement Benefits (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Postretirement medical obligation consisting of fixed annual payments
$ 26 
 
 
Postretirement medical obligation consisting of payments determined by healthcare cost trend
38 
 
 
Healthcare cost trend assumptions
8.00% 
 
 
One-percentage point change in assumed healthcare cost trend
4 
 
 
Defined benefit pension plan assets
86 
 
 
Expected contributions to pension plans for fiscal 2013
8 
 
 
Defined benefit plans funding
8 
7 
4 
Heathcare related [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Number of defined benefit plans
3 
 
 
Domestic Pension Benefit Plans [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined benefit pension plan assets
69 
59 
 
Foreign Subsidiary Pension Benefit Plans [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined benefit pension plan assets
17 
15 
 
Minimum [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Expected rate of return on assets assumption years
5 
 
 
Maximum [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Expected rate of return on assets assumption years
10 
 
 
Qualified [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Accumulated benefit obligation
101 
99 
 
Qualified [Member] |
Defined Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amounts expected to be reclassified to earnings within next 12 months
3 
 
 
Defined benefit pension plan assets
86 
74 
74 
Defined benefit plans funding
6 
5 
 
Non-Qualified [Member] |
Defined Pension Benefits [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amounts expected to be reclassified to earnings within next 12 months
3 
 
 
Defined benefit pension plan assets
0 
0 
0 
Defined benefit plans funding
2 
2 
 
Noncontributory [Domain]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Number of defined benefit plans
4 
 
 
Contributory [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Defined benefit programs recognized expenses
$ 47 
$ 45 
$ 48 
Funded [Member] |
Noncontributory [Domain] |
Qualified [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Number of defined benefit plans
3 
 
 
Unfunded [Member] |
Noncontributory [Domain] |
Non-Qualified [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Number of defined benefit plans
1 
 
 
Fixed Annual [Member] |
Heathcare related [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Number of defined benefit plans
2 
 
 
Comprehensive Income (Loss) (Components Of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Statement of Income and Comprehensive Income [Abstract]
 
 
Unrealized net hedging gains (losses)
$ 10 
$ (7)
Unrealized net gain on investments
1 
1 
Currency translation adjustment
(32)
(35)
Postretirement benefits reserve adjustments
(42)
(38)
Total accumulated other comprehensive income
$ (63)
$ (79)
Comprehensive Income (Loss) (Components Of Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Statement of Income and Comprehensive Income [Abstract]
 
 
 
Net hedging gain (loss) reclassified to earnings, Before Tax
$ 12 
$ (25)
$ 7 
Net hedging gain (loss) reclassified to earnings, Income Tax
(5)
10 
(1)
Net hedging gain (loss) reclassified to earnings, After Tax
7 
(15)
6 
Net hedging unrealized gain (loss), Before Tax
16 
4 
7 
Net hedging unrealized gain (loss), Income Tax
(6)
(6)
(1)
Net hedging unrealized gain (loss), After Tax
10 
(2)
6 
Unrealized gain (loss) on investments, Before Tax
 
(12)
 
Unrealized gain (loss) on investments, Income Tax
 
4 
 
Unrealized gain (loss) on investments, After Tax
 
(8)
 
Currency translation adjustment, Before Tax
2 
(42)
27 
Currency translation adjustment, Income Tax
1 
1 
0 
Currency translation adjustment, After Tax
3 
(41)
27 
Net change in postretirement liabilities, Before Tax
(6)
(21)
(6)
Net change in postretirement liabilities, Income Tax
2 
8 
1 
Net change in postretirement liabilities, After Tax
(4)
(13)
(5)
Other comprehensive income (loss), Before Tax
24 
(96)
35 
Other comprehensive income (loss), Income Tax
(8)
17 
(1)
Other comprehensive income (loss), After Tax
$ 16 
$ (79)
$ 34 
Segment Reporting (Segment Reporting Information, By Segment) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 29, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Oct. 1, 2011
Jul. 2, 2011
Apr. 2, 2011
Jan. 1, 2011
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 8,373 
$ 8,308 
$ 8,268 
$ 8,329 
$ 8,404 
$ 8,247 
$ 8,000 
$ 7,615 
$ 33,278 
$ 32,266 
$ 28,430 
Operating Income (Loss)
332 
336 
302 
278 
172 
312 
303 
498 
1,248 
1,285 
1,556 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
321 
211 
353 
Income before Income Taxes
 
 
 
 
 
 
 
 
927 
1,074 
1,203 
Depreciation
 
 
 
 
 
 
 
 
443 
433 
416 
Total Assets
11,896 
 
 
 
11,071 
 
 
 
11,896 
11,071 
10,752 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
690 
643 
550 
Chicken [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
11,591 
11,017 
10,062 
Operating Income (Loss)
 
 
 
 
 
 
 
 
446 
164 
519 
Depreciation
 
 
 
 
 
 
 
 
268 
259 
251 
Total Assets
5,902 
 
 
 
5,412 
 
 
 
5,902 
5,412 
5,031 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
451 
464 
320 
Beef [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
13,755 
13,549 
11,707 
Operating Income (Loss)
 
 
 
 
 
 
 
 
218 
468 
542 
Depreciation
 
 
 
 
 
 
 
 
86 
84 
82 
Total Assets
2,634 
 
 
 
2,610 
 
 
 
2,634 
2,610 
2,468 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
100 
88 
61 
Pork [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
5,510 
5,460 
4,552 
Operating Income (Loss)
 
 
 
 
 
 
 
 
417 
560 
381 
Depreciation
 
 
 
 
 
 
 
 
30 
28 
27 
Total Assets
895 
 
 
 
960 
 
 
 
895 
960 
845 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
32 
27 
27 
Prepared Foods [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
3,237 
3,215 
2,999 
Operating Income (Loss)
 
 
 
 
 
 
 
 
181 
117 
124 
Depreciation
 
 
 
 
 
 
 
 
54 
58 
56 
Total Assets
960 
 
 
 
943 
 
 
 
960 
943 
940 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
99 
58 
42 
Other [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
167 
127 
0 
Operating Income (Loss)
 
 
 
 
 
 
 
 
(14)
(24)
(10)
Depreciation
 
 
 
 
 
 
 
 
5 
4 
0 
Total Assets
1,505 
 
 
 
1,146 
 
 
 
1,505 
1,146 
1,468 
Additions to property, plant and equipment
 
 
 
 
 
 
 
 
8 
6 
100 
Intersegment Sales [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
$ (982)
$ (1,102)
$ (890)
Segment Reporting (Narrative) (Details) (USD $)
3 Months Ended 12 Months Ended
Sep. 29, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Oct. 1, 2011
Jul. 2, 2011
Apr. 2, 2011
Jan. 1, 2011
Sep. 29, 2012
Segments
Oct. 1, 2011
Oct. 2, 2010
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Number of segments
 
 
 
 
 
 
 
 
4 
 
 
Long-lived assets in United States
$ 5,900,000,000 
 
 
 
$ 5,800,000,000 
 
 
 
$ 5,900,000,000 
$ 5,800,000,000 
 
Long-lived assets in foreign countries
564,000,000 
 
 
 
539,000,000 
 
 
 
564,000,000 
539,000,000 
 
Sales
8,373,000,000 
8,308,000,000 
8,268,000,000 
8,329,000,000 
8,404,000,000 
8,247,000,000 
8,000,000,000 
7,615,000,000 
33,278,000,000 
32,266,000,000 
28,430,000,000 
Pork [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
5,510,000,000 
5,460,000,000 
4,552,000,000 
Beef [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
13,755,000,000 
13,549,000,000 
11,707,000,000 
Intersegment Elimination [Member] |
Pork [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Intersegment Sales
 
 
 
 
 
 
 
 
771,000,000 
816,000,000 
718,000,000 
Intersegment Elimination [Member] |
Beef [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Intersegment Sales
 
 
 
 
 
 
 
 
211,000,000 
286,000,000 
172,000,000 
Customer Concentration Risk [Member] |
Sales Revenue, Goods, Net [Member] |
Wal-Mart Stores, Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Concentration, Percentage
13.80% 
 
 
 
13.30% 
 
 
 
13.80% 
13.30% 
13.40% 
Geographic Concentration Risk [Member] |
Sales Revenue, Goods, Net [Member] |
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Concentration, Percentage
95.00% 
 
 
 
96.00% 
 
 
 
95.00% 
96.00% 
96.00% 
Export sales [Member] |
United States [Member]
 
 
 
 
 
 
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
$ 4,000,000,000 
$ 4,100,000,000 
$ 3,200,000,000 
Supplemental Cash Flow Information (Cash Payments For Interest And Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Supplemental Cash Flow Information [Abstract]
 
 
 
Interest, net of amounts capitalized
$ 274 
$ 174 
$ 302 
Income taxes, net of refunds
$ 187 
$ 311 
$ 470 
Commitments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Commitments and Contingencies Disclosure [Abstract]
 
 
 
Operating Leases, Rent Expense
$ 193 
$ 183 
$ 188 
Lease, Maximum Initial Term
7 years 
 
 
Guarantor Obligations [Line Items]
 
 
 
Potential maximum obligation under cash flow assistance program
275 
 
 
Total receivables under cash flow assistance program
25 
28 
 
Estimated uncollectible receivables under cash flow assistance program
10 
10 
 
Guarantee of Indebtedness of Others [Member]
 
 
 
Guarantor Obligations [Line Items]
 
 
 
Guarantor Obligations, Maximum Exposure, Period
10 years 
 
 
Maximum potential amount
75 
 
 
Residual Value Guarantees [Member]
 
 
 
Guarantor Obligations [Line Items]
 
 
 
Maximum potential amount
58 
 
 
Guarantor Obligations, Maximum Exposure, Remaining Lease Period
7 years 
 
 
Amount recoverable through various recourse provisions
$ 52 
 
 
Commitments (Minimum Lease Commitments Under Non-Cancelable Leases) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Commitments and Contingencies Disclosure [Abstract]
 
2013
$ 101 
2014
72 
2015
47 
2016
32 
2017
21 
2018 and beyond
55 
Total
$ 328 
Commitments (Future Purchase Commitments) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Commitments and Contingencies Disclosure [Abstract]
 
2013
$ 819 
2014
73 
2015
36 
2016
35 
2017
26 
2018 and beyond
86 
Total
$ 1,075 
Contingencies (Details) (USD $)
0 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Oct. 20, 2010
Tyson Fresh Meats Inc [Member]
Claims
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]
Plantiffs
May 8, 2008
Employees [Member]
Armstrong Case [Member]
Employees
Loss Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of cases filed
12 
 
 
 
1 
 
 
 
 
 
 
 
 
 
Damages awarded
 
$ 503,011 
$ 5,784,758 
 
 
 
 
 
 
 
 
 
 
 
Filed application for attorneys' fees and expenses
 
3,475,422 
 
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 
 
 
 
Quarterly Financial Data (Unaudited) (Schedule Of Quarterly Financial Information) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 29, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Oct. 1, 2011
Jul. 2, 2011
Apr. 2, 2011
Jan. 1, 2011
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Sales
$ 8,373 
$ 8,308 
$ 8,268 
$ 8,329 
$ 8,404 
$ 8,247 
$ 8,000 
$ 7,615 
$ 33,278 
$ 32,266 
$ 28,430 
Gross profit
570 
562 
535 
493 
391 
531 
533 
744 
2,160 
2,199 
2,514 
Operating Income
332 
336 
302 
278 
172 
312 
303 
498 
1,248 
1,285 
1,556 
Net income
181 
73 
166 
156 
95 
188 
156 
294 
576 
733 
765 
Net income attributable to Tyson
$ 185 
$ 76 
$ 166 
$ 156 
$ 97 
$ 196 
$ 159 
$ 298 
$ 583 
$ 750 
$ 780 
Diluted (USD per share)
$ 0.51 
$ 0.21 
$ 0.44 
$ 0.42 
$ 0.26 
$ 0.51 
$ 0.42 
$ 0.78 
$ 1.58 
$ 1.97 
$ 2.06 
Class A [Member]
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 0.53 
$ 0.21 
$ 0.47 
$ 0.43 
$ 0.27 
$ 0.53 
$ 0.43 
$ 0.81 
$ 1.64 
$ 2.04 
$ 2.13 
Class B [Member]
 
 
 
 
 
 
 
 
 
 
 
Basic (USD per share)
$ 0.48 
$ 0.19 
$ 0.42 
$ 0.39 
$ 0.24 
$ 0.48 
$ 0.39 
$ 0.73 
$ 1.48 
$ 1.84 
$ 1.91 
Quarterly Financial Data (Unaudited) (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended
Jul. 2, 2011
Jan. 1, 2011
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Sep. 29, 2012
China [Member]
Jun. 30, 2012
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Jun. 30, 2012
10.50% Senior Notes Due March 2014 (2014 Notes) [Member]
Quarterly Financial Data [Line Items]
 
 
 
 
 
 
 
 
Loss on early extinguishment of debt
 
 
$ 167 
$ 0 
$ 0 
 
$ 167 
$ 167 
Impairment Charges on Non-core Assets
 
 
 
 
 
15 
 
 
Gain on disposal of an equity method investment
 
11 
 
11 
 
 
 
 
Reduction to income taxes caused by adjustment to reserves for foreign uncertain tax positions
$ 21 
 
 
 
 
 
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Sep. 29, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Oct. 1, 2011
Jul. 2, 2011
Apr. 2, 2011
Jan. 1, 2011
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
$ 8,373 
$ 8,308 
$ 8,268 
$ 8,329 
$ 8,404 
$ 8,247 
$ 8,000 
$ 7,615 
$ 33,278 
$ 32,266 
$ 28,430 
Cost of Sales
 
 
 
 
 
 
 
 
31,118 
30,067 
25,916 
Gross Profit
570 
562 
535 
493 
391 
531 
533 
744 
2,160 
2,199 
2,514 
Operating Expenses:
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
 
 
 
 
 
 
 
912 
914 
929 
Goodwill impairment
 
 
 
 
 
 
 
 
0 
0 
29 
Operating Income
332 
336 
302 
278 
172 
312 
303 
498 
1,248 
1,285 
1,556 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
344 
231 
333 
Other, net
 
 
 
 
 
 
 
 
(23)
(20)
20 
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
321 
211 
353 
Income before Income Taxes
 
 
 
 
 
 
 
 
927 
1,074 
1,203 
Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
351 
341 
438 
Net Income
181 
73 
166 
156 
95 
188 
156 
294 
576 
733 
765 
Less: Net Loss Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
(7)
(17)
(15)
Net Income Attributable to Tyson
185 
76 
166 
156 
97 
196 
159 
298 
583 
750 
780 
TFI Parent [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
352 
157 
454 
Cost of Sales
 
 
 
 
 
 
 
 
(4)
29 
16 
Gross Profit
 
 
 
 
 
 
 
 
356 
128 
438 
Operating Expenses:
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
 
 
 
 
 
 
 
59 
52 
93 
Goodwill impairment
 
 
 
 
 
 
 
 
0 
0 
0 
Operating Income
 
 
 
 
 
 
 
 
297 
76 
345 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
49 
(26)
328 
Other, net
 
 
 
 
 
 
 
 
1 
(9)
25 
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
(427)
(673)
(782)
Total Other (Income) Expense
 
 
 
 
 
 
 
 
(377)
(708)
(429)
Income before Income Taxes
 
 
 
 
 
 
 
 
674 
784 
774 
Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
91 
34 
(6)
Net Income
 
 
 
 
 
 
 
 
583 
750 
780 
Less: Net Loss Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income Attributable to Tyson
 
 
 
 
 
 
 
 
583 
750 
780 
TFM Parent, Guarantors [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
18,832 
18,636 
15,950 
Cost of Sales
 
 
 
 
 
 
 
 
18,088 
17,461 
14,867 
Gross Profit
 
 
 
 
 
 
 
 
744 
1,175 
1,083 
Operating Expenses:
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
 
 
 
 
 
 
 
205 
215 
199 
Goodwill impairment
 
 
 
 
 
 
 
 
0 
0 
0 
Operating Income
 
 
 
 
 
 
 
 
539 
960 
884 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
143 
148 
2 
Other, net
 
 
 
 
 
 
 
 
0 
0 
1 
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
(43)
(115)
(51)
Total Other (Income) Expense
 
 
 
 
 
 
 
 
100 
33 
(48)
Income before Income Taxes
 
 
 
 
 
 
 
 
439 
927 
932 
Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
130 
272 
304 
Net Income
 
 
 
 
 
 
 
 
309 
655 
628 
Less: Net Loss Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income Attributable to Tyson
 
 
 
 
 
 
 
 
309 
655 
628 
Non-Guarantors [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
15,375 
14,700 
13,415 
Cost of Sales
 
 
 
 
 
 
 
 
14,314 
13,804 
12,422 
Gross Profit
 
 
 
 
 
 
 
 
1,061 
896 
993 
Operating Expenses:
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
 
 
 
 
 
 
 
649 
647 
637 
Goodwill impairment
 
 
 
 
 
 
 
 
0 
0 
29 
Operating Income
 
 
 
 
 
 
 
 
412 
249 
327 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
152 
109 
3 
Other, net
 
 
 
 
 
 
 
 
(24)
(11)
(6)
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
0 
0 
0 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
128 
98 
(3)
Income before Income Taxes
 
 
 
 
 
 
 
 
284 
151 
330 
Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
130 
35 
140 
Net Income
 
 
 
 
 
 
 
 
154 
116 
190 
Less: Net Loss Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
(7)
(17)
(15)
Net Income Attributable to Tyson
 
 
 
 
 
 
 
 
161 
133 
205 
Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
 
 
 
 
 
 
(1,281)
(1,227)
(1,389)
Cost of Sales
 
 
 
 
 
 
 
 
(1,280)
(1,227)
(1,389)
Gross Profit
 
 
 
 
 
 
 
 
(1)
0 
0 
Operating Expenses:
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
 
 
 
 
 
 
 
 
(1)
0 
0 
Goodwill impairment
 
 
 
 
 
 
 
 
0 
0 
0 
Operating Income
 
 
 
 
 
 
 
 
0 
0 
0 
Other (Income) Expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
 
 
 
0 
0 
0 
Other, net
 
 
 
 
 
 
 
 
0 
0 
0 
Equity in net earnings of subsidiaries
 
 
 
 
 
 
 
 
470 
788 
833 
Total Other (Income) Expense
 
 
 
 
 
 
 
 
470 
788 
833 
Income before Income Taxes
 
 
 
 
 
 
 
 
(470)
(788)
(833)
Income Tax Expense (Benefit)
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income
 
 
 
 
 
 
 
 
(470)
(788)
(833)
Less: Net Loss Attributable to Noncontrolling Interest
 
 
 
 
 
 
 
 
0 
0 
0 
Net Income Attributable to Tyson
 
 
 
 
 
 
 
 
$ (470)
$ (788)
$ (833)
Condensed Consolidating Financial Statements (Condensed Consolidating Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Oct. 3, 2009
Assets
 
 
 
 
Cash and cash equivalents
$ 1,071 
$ 716 
$ 978 
$ 1,004 
Accounts receivable, net
1,378 
1,321 
 
 
Inventories
2,809 
2,587 
 
 
Other current assets
145 
156 
 
 
Total Current Assets
5,403 
4,780 
 
 
Net Property, Plant and Equipment
4,022 
3,823 
 
 
Goodwill
1,891 
1,892 
1,893 
 
Intangible Assets
129 
149 
 
 
Other Assets
451 
427 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
11,896 
11,071 
10,752 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
515 
70 
 
 
Accounts payable
1,372 
1,264 
 
 
Other current liabilities
943 
1,040 
 
 
Total Current Liabilities
2,830 
2,374 
 
 
Long-Term Debt
1,917 
2,112 
 
 
Deferred Income Taxes
558 
424 
 
 
Other Liabilities
549 
476 
 
 
Total Tyson Shareholders' Equity
6,012 
5,657 
 
 
Noncontrolling Interest
30 
28 
 
 
Total Shareholders' Equity
6,042 
5,685 
5,201 
 
Total Liabilities and Shareholders' Equity
11,896 
11,071 
 
 
TFI Parent [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
1 
1 
2 
0 
Accounts receivable, net
1 
1 
 
 
Inventories
0 
2 
 
 
Other current assets
139 
62 
 
 
Total Current Assets
141 
66 
 
 
Net Property, Plant and Equipment
31 
37 
 
 
Goodwill
0 
0 
 
 
Intangible Assets
0 
0 
 
 
Other Assets
1,257 
2,179 
 
 
Investment in Subsidiaries
11,849 
11,396 
 
 
Total Assets
13,278 
13,678 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
439 
2 
 
 
Accounts payable
10 
8 
 
 
Other current liabilities
4,887 
5,808 
 
 
Total Current Liabilities
5,336 
5,818 
 
 
Long-Term Debt
1,774 
1,972 
 
 
Deferred Income Taxes
0 
0 
 
 
Other Liabilities
156 
231 
 
 
Total Tyson Shareholders' Equity
6,012 
5,657 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
6,012 
5,657 
 
 
Total Liabilities and Shareholders' Equity
13,278 
13,678 
 
 
TFM Parent, Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
9 
1 
2 
0 
Accounts receivable, net
499 
506 
 
 
Inventories
950 
926 
 
 
Other current assets
100 
95 
 
 
Total Current Assets
1,558 
1,528 
 
 
Net Property, Plant and Equipment
873 
875 
 
 
Goodwill
881 
881 
 
 
Intangible Assets
26 
31 
 
 
Other Assets
151 
180 
 
 
Investment in Subsidiaries
2,005 
1,923 
 
 
Total Assets
5,494 
5,418 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
0 
0 
 
 
Accounts payable
558 
525 
 
 
Other current liabilities
144 
144 
 
 
Total Current Liabilities
702 
669 
 
 
Long-Term Debt
809 
1,198 
 
 
Deferred Income Taxes
135 
120 
 
 
Other Liabilities
146 
142 
 
 
Total Tyson Shareholders' Equity
3,702 
3,289 
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
3,702 
3,289 
 
 
Total Liabilities and Shareholders' Equity
5,494 
5,418 
 
 
Non-Guarantors [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
1,061 
714 
974 
1,004 
Accounts receivable, net
878 
813 
 
 
Inventories
1,859 
1,659 
 
 
Other current assets
90 
83 
 
 
Total Current Assets
3,888 
3,269 
 
 
Net Property, Plant and Equipment
3,118 
2,911 
 
 
Goodwill
1,010 
1,011 
 
 
Intangible Assets
103 
118 
 
 
Other Assets
251 
260 
 
 
Investment in Subsidiaries
0 
0 
 
 
Total Assets
8,370 
7,569 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
167 
68 
 
 
Accounts payable
804 
731 
 
 
Other current liabilities
766 
843 
 
 
Total Current Liabilities
1,737 
1,642 
 
 
Long-Term Debt
486 
1,005 
 
 
Deferred Income Taxes
432 
319 
 
 
Other Liabilities
294 
217 
 
 
Total Tyson Shareholders' Equity
5,391 
4,358 
 
 
Noncontrolling Interest
30 
28 
 
 
Total Shareholders' Equity
5,421 
4,386 
 
 
Total Liabilities and Shareholders' Equity
8,370 
7,569 
 
 
Eliminations [Member]
 
 
 
 
Assets
 
 
 
 
Cash and cash equivalents
0 
0 
0 
0 
Accounts receivable, net
0 
1 
 
 
Inventories
0 
0 
 
 
Other current assets
(184)
(84)
 
 
Total Current Assets
(184)
(83)
 
 
Net Property, Plant and Equipment
0 
0 
 
 
Goodwill
0 
0 
 
 
Intangible Assets
0 
0 
 
 
Other Assets
(1,208)
(2,192)
 
 
Investment in Subsidiaries
(13,854)
(13,319)
 
 
Total Assets
(15,246)
(15,594)
 
 
Liabilities and Shareholders' Equity
 
 
 
 
Current debt
(91)
0 
 
 
Accounts payable
0 
0 
 
 
Other current liabilities
(4,854)
(5,755)
 
 
Total Current Liabilities
(4,945)
(5,755)
 
 
Long-Term Debt
(1,152)
(2,063)
 
 
Deferred Income Taxes
(9)
(15)
 
 
Other Liabilities
(47)
(114)
 
 
Total Tyson Shareholders' Equity
(9,093)
(7,647)
 
 
Noncontrolling Interest
0 
0 
 
 
Total Shareholders' Equity
(9,093)
(7,647)
 
 
Total Liabilities and Shareholders' Equity
$ (15,246)
$ (15,594)
 
 
Condensed Consolidating Financial Statements (Condensed Consolidating Statement Of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
$ 1,187 
$ 1,046 
$ 1,432 
Cash Flows From Investing Activities:
 
 
 
Additions to property, plant and equipment
(690)
(643)
(550)
(Purchases of)/ Proceeds from marketable securities, net
(11)
(80)
(4)
Proceeds from notes receivable
0 
51 
0 
Change in restricted cash to be used for investing activities
0 
0 
43 
Other, net
41 
28 
11 
Cash Used for Investing Activities
(660)
(644)
(500)
Cash Flows From Financing Activities:
 
 
 
Net change in debt
123 
(385)
(1,034)
Purchase of redeemable noncontrolling interest
0 
(66)
0 
Change in restricted cash to be used for financing activities
0 
0 
140 
Purchases of Tyson Class A common stock
(264)
(207)
(48)
Dividends
(57)
(59)
(59)
Other, net
27 
59 
42 
Net change in intercompany balances
0 
0 
0 
Cash Used for Financing Activities
(171)
(658)
(959)
Effect of Exchange Rate Change on Cash
(1)
(6)
1 
Increase (Decrease) in Cash and Cash Equivalents
355 
(262)
(26)
Cash and Cash Equivalents at Beginning of Year
716 
978 
1,004 
Cash and Cash Equivalents at End of Period
1,071 
716 
978 
TFI Parent [Member]
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
312 
31 
386 
Cash Flows From Investing Activities:
 
 
 
Additions to property, plant and equipment
(1)
(1)
(3)
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
0 
Proceeds from notes receivable
0 
0 
0 
Change in restricted cash to be used for investing activities
0 
0 
0 
Other, net
1 
23 
(1)
Cash Used for Investing Activities
0 
22 
(4)
Cash Flows From Financing Activities:
 
 
 
Net change in debt
107 
(391)
(874)
Purchase of redeemable noncontrolling interest
0 
0 
0 
Change in restricted cash to be used for financing activities
0 
0 
0 
Purchases of Tyson Class A common stock
(264)
(207)
(48)
Dividends
(57)
(59)
(59)
Other, net
26 
49 
32 
Net change in intercompany balances
(124)
554 
569 
Cash Used for Financing Activities
(312)
(54)
(380)
Effect of Exchange Rate Change on Cash
0 
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
(1)
2 
Cash and Cash Equivalents at Beginning of Year
1 
2 
0 
Cash and Cash Equivalents at End of Period
1 
1 
2 
TFM Parent, Guarantors [Member]
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
438 
564 
499 
Cash Flows From Investing Activities:
 
 
 
Additions to property, plant and equipment
(104)
(107)
(85)
(Purchases of)/ Proceeds from marketable securities, net
(7)
(57)
0 
Proceeds from notes receivable
0 
0 
0 
Change in restricted cash to be used for investing activities
0 
0 
0 
Other, net
5 
0 
(1)
Cash Used for Investing Activities
(106)
(164)
(86)
Cash Flows From Financing Activities:
 
 
 
Net change in debt
0 
(6)
(149)
Purchase of redeemable noncontrolling interest
0 
0 
0 
Change in restricted cash to be used for financing activities
0 
0 
0 
Purchases of Tyson Class A common stock
0 
0 
0 
Dividends
0 
0 
0 
Other, net
0 
0 
0 
Net change in intercompany balances
(324)
(395)
(262)
Cash Used for Financing Activities
(324)
(401)
(411)
Effect of Exchange Rate Change on Cash
0 
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
8 
(1)
2 
Cash and Cash Equivalents at Beginning of Year
1 
2 
0 
Cash and Cash Equivalents at End of Period
9 
1 
2 
Non-Guarantors [Member]
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
447 
471 
547 
Cash Flows From Investing Activities:
 
 
 
Additions to property, plant and equipment
(585)
(535)
(462)
(Purchases of)/ Proceeds from marketable securities, net
(4)
(23)
(4)
Proceeds from notes receivable
0 
51 
0 
Change in restricted cash to be used for investing activities
0 
0 
43 
Other, net
35 
5 
13 
Cash Used for Investing Activities
(554)
(502)
(410)
Cash Flows From Financing Activities:
 
 
 
Net change in debt
16 
12 
(11)
Purchase of redeemable noncontrolling interest
0 
(66)
0 
Change in restricted cash to be used for financing activities
0 
0 
140 
Purchases of Tyson Class A common stock
0 
0 
0 
Dividends
(10)
(20)
0 
Other, net
1 
10 
10 
Net change in intercompany balances
448 
(159)
(307)
Cash Used for Financing Activities
455 
(223)
(168)
Effect of Exchange Rate Change on Cash
(1)
(6)
1 
Increase (Decrease) in Cash and Cash Equivalents
347 
(260)
(30)
Cash and Cash Equivalents at Beginning of Year
714 
974 
1,004 
Cash and Cash Equivalents at End of Period
1,061 
714 
974 
Eliminations [Member]
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
Cash Provided by (Used for) Operating Activities
(10)
(20)
0 
Cash Flows From Investing Activities:
 
 
 
Additions to property, plant and equipment
0 
0 
0 
(Purchases of)/ Proceeds from marketable securities, net
0 
0 
0 
Proceeds from notes receivable
0 
0 
0 
Change in restricted cash to be used for investing activities
0 
0 
0 
Other, net
0 
0 
0 
Cash Used for Investing Activities
0 
0 
0 
Cash Flows From Financing Activities:
 
 
 
Net change in debt
0 
0 
0 
Purchase of redeemable noncontrolling interest
0 
0 
0 
Change in restricted cash to be used for financing activities
0 
0 
0 
Purchases of Tyson Class A common stock
0 
0 
0 
Dividends
10 
20 
0 
Other, net
0 
0 
0 
Net change in intercompany balances
0 
0 
0 
Cash Used for Financing Activities
10 
20 
0 
Effect of Exchange Rate Change on Cash
0 
0 
0 
Increase (Decrease) in Cash and Cash Equivalents
0 
0 
0 
Cash and Cash Equivalents at Beginning of Year
0 
0 
0 
Cash and Cash Equivalents at End of Period
$ 0 
$ 0 
$ 0 
Condensed Consolidating Financial Statements (Narrative) (Details) (USD $)
In Billions, unless otherwise specified
Sep. 29, 2012
Debt Instrument [Line Items]
 
Amount available under credit facility
$ 1.0 
Valuation And Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Sep. 29, 2012
Oct. 1, 2011
Oct. 2, 2010
Allowance for Doubtful Accounts [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
$ 31 
$ 32 
$ 33 
Charged to Costs and Expenses
7 
3 
0 
Charged to Other Accounts
0 
0 
0 
(Deductions)
(5)
(4)
(1)
Balance at End of Period
33 
31 
32 
Inventory Lower of Cost or Market Allowance [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
6 
2 
22 
Charged to Costs and Expenses
52 
12 
7 
Charged to Other Accounts
0 
0 
0 
(Deductions)
(34)
(8)
(27)
Balance at End of Period
24 
6 
2 
Valuation Allowance on Deferred Tax Assets [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at Beginning of Period
92 
96 
75 
Charged to Costs and Expenses
16 
16 
27 
Charged to Other Accounts
0 
0 
0 
(Deductions)
(30)
(20)
(6)
Balance at End of Period
$ 78 
$ 92 
$ 96